WEBVTT - Snap Earnings and Post-Pandemic Work Shifts 0:00:02.279 --> 0:00:05.560 From the heart of where innovation, money and power Colli 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:26.840 Emily Jay I'm only tagging New York and this is 0:00:26.880 --> 0:00:30.080 Bloomberg Technology. Coming up the next hour, Snap plunges more 0:00:30.920 --> 0:00:35.040 after posting its slowest quarterly sales growth since going public. 0:00:35.560 --> 0:00:38.479 This could spell trouble ahead for Twitter and meta results. 0:00:38.520 --> 0:00:42.240 We will discuss plus, are people working more but getting 0:00:42.360 --> 0:00:46.040 less done? That's what Ariana Huffington thinks, But new studies 0:00:46.040 --> 0:00:49.680 show productivity is best if employees have flexibility over when 0:00:49.720 --> 0:00:55.160 they work, not necessarily where. And artificial intelligence is creating 0:00:55.160 --> 0:00:58.200 a new type of artists with the explosion of apps 0:00:58.240 --> 0:01:00.880 like Dolly. Later this hour, oh, we've got the founder 0:01:00.920 --> 0:01:05.720 of the world's first talent agency for AI artists. For 0:01:05.800 --> 0:01:07.720 more on Snap in the future of social media, let's 0:01:07.720 --> 0:01:10.800 bring into Economy founder and editor in chief David Kirkpatrick, 0:01:10.840 --> 0:01:15.800 as well as our own Kurt Wagner. So, David, big picture, 0:01:16.080 --> 0:01:18.440 what are your takeaways here? Well? I think the big 0:01:18.480 --> 0:01:22.280 picture is that the economy is getting worse faster than 0:01:22.360 --> 0:01:25.600 most of us had hoped, and in fact Snap is 0:01:25.680 --> 0:01:29.600 the first prominent victim. Unfortunately, we'll probably see more in 0:01:29.640 --> 0:01:32.959 the near future, Kurt, you know, walk us a little through, 0:01:33.240 --> 0:01:35.399 a little more through the numbers. You know, what are 0:01:35.440 --> 0:01:38.200 you seeing in here, and how does this compared to 0:01:38.280 --> 0:01:40.640 what we've seen in the previous quarters. It was the 0:01:40.680 --> 0:01:43.800 slowest uh, you know, year over year revenue growth that 0:01:43.840 --> 0:01:47.200 we've ever seen from Snap, which is never never a 0:01:47.280 --> 0:01:49.520 sentence you want to say when you're talking about earnings. 0:01:49.760 --> 0:01:51.520 But I think the issue is that, you know, the 0:01:51.800 --> 0:01:54.520 it wasn't that far off of the streets expectations, but 0:01:54.560 --> 0:01:56.840 I think those have already been depressed. Right There was 0:01:56.880 --> 0:01:59.400 already this feeling that it had been a really tough 0:01:59.440 --> 0:02:01.960 summer that a lot of the issues the war in Ukraine, 0:02:02.080 --> 0:02:06.600 certainly the Apple iOS changes had, you know, had a 0:02:06.680 --> 0:02:08.320 serious impact on the business. So I think this was 0:02:08.320 --> 0:02:10.840 considered a low bar for Snap to clear, which they 0:02:10.840 --> 0:02:13.520 didn't do. And as David just mentioned, this is a 0:02:13.560 --> 0:02:16.280 really terrible sign for sort of the rest of the 0:02:16.320 --> 0:02:20.280 digital advertising industry, which hasn't yet reported earnings, will in 0:02:20.320 --> 0:02:22.920 the next couple of weeks. You know. It's just a 0:02:23.000 --> 0:02:25.839 sign that anyone who is trying to make money from 0:02:26.040 --> 0:02:28.840 UH digital ads right now and use your attention. They're 0:02:28.880 --> 0:02:31.720 really struggling for a number of reasons, and Snap, of 0:02:31.760 --> 0:02:34.440 course is the first that have to go. It's interesting, David, 0:02:34.480 --> 0:02:37.320 because you could look at what's happening with Meta trying 0:02:37.360 --> 0:02:39.800 to make this big pivot and Twitter in the middle 0:02:39.800 --> 0:02:43.680 of this legal drama as an opportunity for Snap, and 0:02:44.080 --> 0:02:47.600 it's interesting that it hasn't necessarily been well. You know, 0:02:47.800 --> 0:02:50.760 Snap has the benefit of having a brilliant CEO who's 0:02:50.800 --> 0:02:53.640 at least very focused on the actual business he has, 0:02:53.720 --> 0:02:57.040 unlike Meta, and I have a lot of confidence in 0:02:57.080 --> 0:03:00.120 Evan Spiegel's ability to sort of surf this wave. On 0:03:00.160 --> 0:03:02.440 the other hand, it's it's like a tsunami that's hitting 0:03:02.520 --> 0:03:05.880 him in a way that he didn't expect um And 0:03:05.960 --> 0:03:10.320 you know it's weird because user growth was good, uh, 0:03:10.480 --> 0:03:13.239 revenue wasn't good, but you know, they still lost three 0:03:13.280 --> 0:03:16.239 hundred and sixty million dollars. This company has never made money, 0:03:16.680 --> 0:03:18.760 and it's it's not I don't even know why they 0:03:18.800 --> 0:03:21.040 would do a share by back when they they're going 0:03:21.120 --> 0:03:23.760 to have to conserve cash going into this situation. Can 0:03:23.760 --> 0:03:26.960 you remind us of some of the innovative things that 0:03:27.040 --> 0:03:31.400 Evan Spiegel has been trying Kurt over the last year, 0:03:32.120 --> 0:03:34.560 you know, and he also has a sort of anti 0:03:34.600 --> 0:03:39.000 meta view on the metaverse, which is informing his strategy. Well, 0:03:39.160 --> 0:03:41.080 I'm with David in the sense that I think Evan 0:03:41.120 --> 0:03:43.480 is a really smart person. Uh, and I think that 0:03:43.640 --> 0:03:45.560 as a product thinker, he's one of the best, right, 0:03:45.600 --> 0:03:49.000 I mean, he has been routinely copied by Mark Stuckerberg 0:03:49.000 --> 0:03:51.600 over at Facebook and Meta and and you know, he's 0:03:51.640 --> 0:03:53.520 constantly kind of coming up with new things. And he 0:03:53.680 --> 0:03:56.560 is also focused on augmented reality, similar to Mark Zuckerberg, 0:03:56.560 --> 0:03:58.520 but in a very different way. Right, He's trying to 0:03:58.560 --> 0:04:01.840 build that kind of stuff into the camera, into uh, 0:04:01.920 --> 0:04:04.480 something that people already have in their hands, versus sort 0:04:04.480 --> 0:04:07.680 of like a metaverse idea that's still years off. But 0:04:07.760 --> 0:04:09.080 you know, some of the stuff they tried to do, 0:04:09.080 --> 0:04:11.720 they tried to build a subscription product, right, so they're 0:04:11.720 --> 0:04:14.600 not quite as reliant on advertising, kind of give people 0:04:14.960 --> 0:04:18.360 early access to new features. You know, they've talked about uh, Emily, 0:04:18.360 --> 0:04:20.640 you remember they've done spectacles. They're they're kind of building 0:04:20.760 --> 0:04:23.360 other augmented reality glasses that are that are not here 0:04:23.440 --> 0:04:25.760 yet but are coming. So you know, those are the 0:04:25.800 --> 0:04:29.279 types of projects. I wonder if they'll continue to invest 0:04:29.360 --> 0:04:32.120 in They have started to pull back on anything that 0:04:32.160 --> 0:04:35.279 isn't directly related to revenue and user growth, and I 0:04:35.279 --> 0:04:37.360 think a r you know, while it's certainly something he's 0:04:37.360 --> 0:04:39.680 been passionate about for years, it does make me wonder 0:04:39.760 --> 0:04:41.560 if if they can continue to invest in that in 0:04:41.560 --> 0:04:43.600 the way he would like to, given everything that's going 0:04:43.640 --> 0:04:47.720 on at the company right you know. Meantime, Meta had 0:04:47.720 --> 0:04:51.960 another another high profile executive leaving today, the vice president 0:04:52.040 --> 0:04:55.120 of corporate Development. And obviously, David, You've chronicled so many 0:04:55.200 --> 0:04:59.240 years of Meta and clearly we're moving into a new 0:04:59.279 --> 0:05:02.279 phase that I trust suit you know, surrounding the within 0:05:03.120 --> 0:05:07.560 unlimited deal. Um you know, you know you you you 0:05:07.880 --> 0:05:09.960 used to see more kind of M and A in 0:05:09.960 --> 0:05:13.280 the social media space when there was turmoil and and uh, 0:05:13.680 --> 0:05:18.160 you know resizing if you will like this, but maybe 0:05:18.160 --> 0:05:20.120 in this environment we won't. Right if you're the M 0:05:20.160 --> 0:05:22.440 and A guy at Meta Facebook, you know, what are 0:05:22.440 --> 0:05:24.160 you gonna do right now if the government won't let 0:05:24.160 --> 0:05:29.160 you do anything of substance. Plus, I think it's it's 0:05:29.200 --> 0:05:32.640 increasingly the case that employees throughout Meta, including a lot 0:05:32.680 --> 0:05:35.760 of the senior leaders are feeling somewhat disenchanted. I don't 0:05:35.760 --> 0:05:37.880 know if this is an example of that, but an 0:05:37.880 --> 0:05:40.960 awful lot of senior people have left that company and 0:05:41.080 --> 0:05:43.799 it must be very disheartening to work for a company 0:05:44.080 --> 0:05:46.880 with three and a half billion users whose CEO is 0:05:46.920 --> 0:05:50.080 thinking about something else. I gotta believe that is a 0:05:50.080 --> 0:05:54.400 problem for everybody at that company. Meantime, Kirk, can you 0:05:54.440 --> 0:05:58.520 give us an update on the Twitter situation. We did 0:05:58.560 --> 0:06:02.040 hear a little bit I'm Elon Musk yesterday on the 0:06:02.080 --> 0:06:05.719 Tesla earnings call. You know, Twitter, Twitter's earnings, A car 0:06:05.760 --> 0:06:09.839 coming up pretty soon? How's that gonna work? Um? You know, 0:06:09.880 --> 0:06:13.360 give us the latest. Well, we think they're coming up soon. 0:06:13.400 --> 0:06:15.720 They haven't said an earnings date yet. I'm I'm wondering 0:06:15.760 --> 0:06:18.640 if they're just hoping that this whole thing gets closed 0:06:18.839 --> 0:06:20.840 before that they have to go through with that, right, 0:06:20.880 --> 0:06:24.200 because not only are they already projected I believe I 0:06:24.240 --> 0:06:27.040 saw I start projecting a revenue decline for them as well, 0:06:27.080 --> 0:06:28.920 but you saw what just happened with Snap, Right. The 0:06:28.960 --> 0:06:30.479 last thing they want to do is have to to 0:06:30.560 --> 0:06:33.440 go through something like that publicly while they're still waiting 0:06:33.480 --> 0:06:35.559 for this deal to close. But as you mentioned, Elon 0:06:35.600 --> 0:06:38.719 Musk yesterday on Tesla's earnings, in my opinion, he said 0:06:38.800 --> 0:06:40.919 some stuff that that made me think this deal is 0:06:40.960 --> 0:06:43.360 going to happen, right he was Normally when he talks 0:06:43.360 --> 0:06:44.960 to the deal, he does so in this way where 0:06:44.960 --> 0:06:47.680 he's like, well, you know, if if this thing finally happens, 0:06:47.720 --> 0:06:50.360 maybe this not not yesterday. Yesterday he seemed to say 0:06:50.400 --> 0:06:52.600 he was excited about the deal. He even said I'm 0:06:52.640 --> 0:06:56.680 over paying for the deal. But you know, it wasn't that. Um. 0:06:56.720 --> 0:06:59.600 It was suggesting that he's, you know, already done this thing. 0:06:59.680 --> 0:07:01.080 I don't know. I just got the sense when I 0:07:01.120 --> 0:07:03.280 listened to it that I walked away that he feels 0:07:03.279 --> 0:07:05.240 this thing is done. And if he feels it's done, 0:07:05.240 --> 0:07:07.040 of course, well that makes me think it's going to 0:07:07.080 --> 0:07:09.960 get done as well. David, what do you think? I mean, Gosh, 0:07:10.000 --> 0:07:13.160 we're about to enter a very new era. Well, the 0:07:13.280 --> 0:07:16.960 eras are just cascading in on us in so many ways. 0:07:17.760 --> 0:07:20.040 I I don't know what it's going to be to 0:07:20.080 --> 0:07:22.720 have Twitter owned by Elon Musk. I'm not sure it's 0:07:22.720 --> 0:07:26.120 all bad. You know, Elon Musk is the ultimate you 0:07:26.160 --> 0:07:30.920 know cipher because he's so brilliant and so important as 0:07:30.920 --> 0:07:34.400 an innovator and so crazy, and putting those two things 0:07:34.440 --> 0:07:38.400 together is extremely difficult, especially predicting the future. But do 0:07:38.440 --> 0:07:40.480 you think there's going to be a huge brain train 0:07:40.680 --> 0:07:43.080 or maybe maybe there'll be an influx of of people 0:07:43.120 --> 0:07:45.920 going to Twitter who want to work for him, And 0:07:45.920 --> 0:07:48.080 there's certainly going to be a time of transition, and gosh, 0:07:48.120 --> 0:07:50.760 what happens to the platform in the middle of this 0:07:50.800 --> 0:07:53.720 transition experience. A bunch of top people are definitely going 0:07:53.760 --> 0:07:55.920 to leave because he's insulted them in the course of 0:07:55.960 --> 0:07:58.920 this this process. For one thing, I think he does 0:07:59.000 --> 0:08:00.920 have people who want to work with him. I mean, 0:08:01.160 --> 0:08:04.640 he he is a brilliant manager and and maybe that's 0:08:04.800 --> 0:08:07.160 an asset. I I one of the things that he 0:08:07.160 --> 0:08:10.720 always talks about, which I really like, is genuine identity 0:08:10.800 --> 0:08:13.400 for Twitter users. If they were to do that, it 0:08:13.440 --> 0:08:16.200 would fundamentally change the platform. And I would love to 0:08:16.200 --> 0:08:20.200 watch that because I don't like anonymous social media myself. Kurt, 0:08:20.240 --> 0:08:22.720 I see smiling. You know where are you on this? 0:08:22.840 --> 0:08:26.400 Where Twitter employees on this? Well, I'm smiling because I'm 0:08:26.400 --> 0:08:30.000 a green with what David said. I think, um both 0:08:30.120 --> 0:08:32.079 that there will be a brain drain. And at the 0:08:32.120 --> 0:08:33.880 same time that there are plenty of people who would 0:08:33.880 --> 0:08:36.000 love to work with Elon Musko will be lining up 0:08:36.040 --> 0:08:38.600 and and throwing their resumes at Twitter if if he 0:08:38.640 --> 0:08:40.679 gets this company. So I think it will sort of 0:08:40.720 --> 0:08:42.640 be maybe a changing of the guard if you will 0:08:43.080 --> 0:08:45.880 um at the company soon. And as David said, I 0:08:46.000 --> 0:08:48.240 you know, I am thinking that the biggest change is 0:08:48.240 --> 0:08:50.360 going to be around the content policy, right, and all 0:08:50.360 --> 0:08:52.240 this stuff Twitter has been trying to do to make 0:08:52.280 --> 0:08:56.400 itself less terrible, less toxic for years, Right, We've been 0:08:56.440 --> 0:08:58.319 talking about this, They've been putting all these rules and 0:08:58.600 --> 0:09:00.720 policies in place, and it get the sense that he 0:09:00.760 --> 0:09:02.840 just wants to rip those out. He wants to gut that. 0:09:03.200 --> 0:09:05.400 And so, you know, it'll be interesting to see what 0:09:05.480 --> 0:09:08.760 the culture on Twitter feels like a year from now 0:09:09.040 --> 0:09:11.600 if he takes over, because it may feel very much 0:09:11.600 --> 0:09:17.520 like it did in than it does today. Change coming indeed, 0:09:17.640 --> 0:09:21.200 all right, Kurt Wagner, thank you to Economy is David Kirkpatrick. 0:09:21.320 --> 0:09:23.720 Always good to see you and here in person to 0:09:24.040 --> 0:09:34.920 appreciate it. Supply, chain pain is still wreaking havoc in 0:09:34.960 --> 0:09:37.920 our post pandemic world, a wake up call about the 0:09:37.960 --> 0:09:42.640 inherent precariousness of global trade and maybe even globalization itself. 0:09:42.679 --> 0:09:45.200 That is the topic of a new book, Homecoming, The 0:09:45.240 --> 0:09:49.200 Path to Prosperity in a Post global World, author and 0:09:49.280 --> 0:09:51.840 Financial Times calling this, Rona fu Hard joins us. Now 0:09:52.280 --> 0:09:55.800 for more on this. So, Rana, you know we've heard 0:09:55.840 --> 0:09:59.360 about supply chain issues, but you take it a step 0:09:59.640 --> 0:10:03.319 further are here and argue that maybe we're too dependent 0:10:04.000 --> 0:10:09.240 on other countries, too dependent on globalization. Are you saying 0:10:09.559 --> 0:10:13.840 we need to completely rethink supply chains, Well, I'm saying 0:10:13.880 --> 0:10:16.000 we need to rethink more than that. Actually, you know, 0:10:16.120 --> 0:10:19.760 for the last half century, we've had a process of 0:10:19.800 --> 0:10:22.400 what I would call neoliberal globalization, which is, you know 0:10:22.440 --> 0:10:25.040 about the idea that capital goods people can move wherever 0:10:25.080 --> 0:10:27.079 they want and that they're always gonna land wherever it's 0:10:27.160 --> 0:10:30.400 most productive. And that worked really well for capital um 0:10:30.720 --> 0:10:33.640 and the biggest beneficiaries have been multinational companies and the 0:10:33.720 --> 0:10:36.439 Chinese state. It's the chief capital for cheap labor bargain 0:10:36.480 --> 0:10:39.600 between the US and Asia. But now that is just 0:10:39.679 --> 0:10:42.520 fundamentally shifting, and it's been happening for a while. But 0:10:42.880 --> 0:10:45.559 I think the pandemic and war in Ukraine were really 0:10:45.559 --> 0:10:48.040 almost like a scrim that was pulled up and suddenly 0:10:48.080 --> 0:10:50.600 people thought, oh, maybe it's not a good idea to 0:10:50.640 --> 0:10:53.679 get our energy from an autocrat, or gosh, maybe it's 0:10:53.720 --> 0:10:56.800 not such a safe thing. If the high end chips 0:10:56.800 --> 0:10:59.360 in the world are produced in one island, that's um, 0:10:59.400 --> 0:11:01.719 you know, maybe to be blockaded or even taken over 0:11:01.760 --> 0:11:04.000 by China. So I think that these are things that 0:11:04.000 --> 0:11:07.080 are now in the felt experience of most people. But 0:11:07.240 --> 0:11:11.200 even before the decoupling that was about geopolitics, which we 0:11:11.240 --> 0:11:14.719 all know is happening, there was a lot of regionalization 0:11:14.800 --> 0:11:18.000 and even localization happening in supply chains for all kinds 0:11:18.000 --> 0:11:21.800 of reasons, one of which is wages had risen in Asia. 0:11:21.920 --> 0:11:26.000 You know, that whole arbitrage between productivity, wages, energy costs 0:11:26.280 --> 0:11:28.760 was changing. You know a lot of companies were starting 0:11:28.760 --> 0:11:30.480 to say, oh, you know, the low margin stuff, we 0:11:30.520 --> 0:11:32.560 don't really want to tote it a long way through 0:11:32.559 --> 0:11:35.760 the South China seas. Maybe we'll do it regionally. UM. Now, 0:11:36.000 --> 0:11:39.040 I think with E s G concerns with energy prices 0:11:39.160 --> 0:11:42.840 with their Europe, China and the US in different ways, 0:11:42.920 --> 0:11:45.680 But all kind of pushing in the same direction towards 0:11:45.800 --> 0:11:47.679 um If not a price on carbon, at least some 0:11:47.720 --> 0:11:51.679 sort of accountability for carbon, those long supply chains will 0:11:51.679 --> 0:11:54.959 become even harder. And then finally, we've got one more 0:11:55.000 --> 0:11:58.160 really important tailwind, which is high tech manufacturing. I mean, 0:11:58.160 --> 0:12:01.439 we're about to see I believe what we saw when 0:12:01.440 --> 0:12:03.679 the iPhone came out in the consumer space, just that 0:12:03.840 --> 0:12:07.520 boom in the app economy, and all kinds of growth 0:12:08.040 --> 0:12:12.359 that's now coming into the industrial space through decentralized technologies 0:12:12.400 --> 0:12:15.320 like three D printing or vertical farming. I mean, we 0:12:15.360 --> 0:12:18.600 are really about to go through a massive technological change. 0:12:18.679 --> 0:12:22.520 It's just gonna make it a lot more um efficient 0:12:22.600 --> 0:12:25.880 and resilient to hub production and consumption more closely together. 0:12:26.559 --> 0:12:30.320 Is more localization or the pendulum swinging back that way? Though? 0:12:31.080 --> 0:12:33.719 Could that also be seen as a step backwards. Is 0:12:33.760 --> 0:12:36.120 there a healthy middle? Well, for sure, there is a 0:12:36.120 --> 0:12:38.520 healthy meddal I'm so glad you said that, because oftentimes 0:12:38.520 --> 0:12:41.120 when you have the globalization debate, you know, on the 0:12:41.160 --> 0:12:42.520 one hand, you've got people to say we got to 0:12:42.559 --> 0:12:44.240 go back to the nineties, and then on the other hand, 0:12:44.280 --> 0:12:45.800 you say, oh my gosh, we gotta go back to 0:12:45.800 --> 0:12:48.720 the nineties. It's gonna be nineties. No, We're in a 0:12:48.760 --> 0:12:52.160 whole new era. You know. I think economic pendulums always 0:12:52.200 --> 0:12:54.400 swing throughout history. You know that's true. You go back 0:12:54.400 --> 0:12:57.760 to eighteen century mercantilism that worked until it didn't, and 0:12:57.760 --> 0:12:59.760 then you've got loss Affair, and then you've got Kenzie 0:12:59.760 --> 0:13:01.439 in his him, and and then you know, we've had 0:13:01.480 --> 0:13:04.560 now a half century or so of neoliberalism, you know, 0:13:04.920 --> 0:13:07.280 most recently in the form of the Reagan Thatcher Revolution, 0:13:07.320 --> 0:13:10.400 which maybe with the collapse of the list trust is 0:13:10.520 --> 0:13:13.560 government and the disaster that is trusts and nomics, we 0:13:13.679 --> 0:13:16.000 may see this as the apex and and the kind 0:13:16.000 --> 0:13:18.040 of end of that old era before we move into 0:13:18.080 --> 0:13:21.720 something new. How do you see the relationship between the 0:13:21.800 --> 0:13:25.320 US and China evolving, especially with the actions that the 0:13:25.320 --> 0:13:28.800 Bidens administration has taken on chips and what we heard 0:13:29.280 --> 0:13:33.200 from s jamping over the weekend. Yeah, for sure. So 0:13:33.280 --> 0:13:36.959 the US is reacting basically to China. I mean, as 0:13:37.000 --> 0:13:40.080 we all know, China is always very clear about its 0:13:40.080 --> 0:13:42.480 five year plans. It lays them out, they're available for 0:13:42.520 --> 0:13:46.199 people to read. Um she is you know, uh adds 0:13:46.200 --> 0:13:50.000 another layer of complexity. The nationalism, the populism that's gone 0:13:50.000 --> 0:13:52.120 along with him is a little bit off piece for China, 0:13:52.440 --> 0:13:54.439 which tends to produce more sort of middle of the 0:13:54.480 --> 0:13:57.040 road technocratic leaders. But I think that it's been clear 0:13:57.080 --> 0:13:58.959 for some time that China wants to do couple from 0:13:59.000 --> 0:14:02.040 US technology. It wants to have what it calls a 0:14:02.160 --> 0:14:06.040 dual circulation and commune, which essentially means the same thing regionalism, 0:14:06.120 --> 0:14:09.120 hubbing production and consumption. They've got enough rich consumers now 0:14:09.120 --> 0:14:11.000 they want to keep some of their uh, you know, 0:14:11.080 --> 0:14:13.439 their their factory production at home. They don't want to 0:14:13.440 --> 0:14:15.560 be the factor of the world anymore. They also want 0:14:15.559 --> 0:14:18.280 to become less coupled with the dollar, which is a 0:14:18.280 --> 0:14:19.960 whole another part of this. I mean, what we've seen 0:14:20.000 --> 0:14:23.280 so far is shifts in supply chains and trade. What 0:14:23.360 --> 0:14:26.400 we've made now start seeing is shifts in the financial 0:14:26.440 --> 0:14:28.720 markets as China tries to do more digital R and 0:14:28.760 --> 0:14:31.320 B business. Um, you know, you see, the weaponization of 0:14:31.360 --> 0:14:34.320 the dollar was sanctioned, so there's there's decoupling and financial 0:14:34.400 --> 0:14:36.800 markets too. Before we go, I have to get your 0:14:36.880 --> 0:14:41.280 quick thoughts on Liz trust resigning today. Obviously a fierce 0:14:41.800 --> 0:14:45.360 neoliberal advocate, which in the end certainly didn't work out. 0:14:45.600 --> 0:14:51.280 So well. Are we witnessing a major ideological shift here? Uh, 0:14:51.320 --> 0:14:54.040 it's hard to look at what's happened. Um, you know, 0:14:54.080 --> 0:14:56.720 Liz Trust comes in and says, hey, we've got a 0:14:56.760 --> 0:15:00.560 growth problem. Let's cut taxes on the very wealthiest even 0:15:00.640 --> 0:15:04.080 as we spend on energy subsidies. And wow, the markets 0:15:04.080 --> 0:15:07.560 didn't like that. You know, we've had about twenty years, 0:15:07.720 --> 0:15:09.680 i would say, in this country, in the Anglo American 0:15:09.680 --> 0:15:12.000 world in general, where it's been pretty clear that trickle 0:15:12.080 --> 0:15:15.720 down wasn't working until the recent bout of inflation, and 0:15:15.760 --> 0:15:18.400 there are other reasons for that. Wages for most Americans 0:15:18.440 --> 0:15:21.280 have been flat since um, you know, the last twenty years. 0:15:21.480 --> 0:15:23.960 The same has been true in the UK. Cutting taxes 0:15:24.000 --> 0:15:26.800 on the rich is not the solution. The Reagan Thatcher 0:15:26.880 --> 0:15:29.280 era is over. We don't have a sort of you know, 0:15:29.520 --> 0:15:33.520 um postgame strategy yet completely, but we have some ideas 0:15:33.520 --> 0:15:35.560 about where to go, and trickle down is not it. 0:15:36.160 --> 0:15:40.080 So look, where do you see the world going, Like 0:15:40.160 --> 0:15:44.480 five years from now, how much more localized will the 0:15:44.480 --> 0:15:47.720 economy be? Will the economy be in better shape? I mean, 0:15:47.760 --> 0:15:50.400 we're about to go through what could potentially be a 0:15:50.440 --> 0:15:52.800 two to three year downturn. Yes, so let me let 0:15:52.840 --> 0:15:55.840 me raise one issue first, and I'll kind of put 0:15:55.840 --> 0:15:58.680 the caveat to my own thesis, which is inflation. Um, 0:15:59.040 --> 0:16:01.840 we're moving towards world of more redundancy of supply, more 0:16:01.880 --> 0:16:05.840 resiliency of supply, and that's inflationary, right. Cheap is not cheap. 0:16:05.840 --> 0:16:08.240 People are gonna have to pay more for stuff. That's 0:16:08.240 --> 0:16:09.960 an issue. Are they going to want to do that? 0:16:10.040 --> 0:16:11.520 And then are we going to go back kind of 0:16:11.520 --> 0:16:13.960 be pushed back into the old model? I don't think so, 0:16:14.080 --> 0:16:17.720 because I think that geopolitics have fundamentally changed and ultimately, 0:16:17.920 --> 0:16:20.240 after you know what, maybe a bumpy five years or so, 0:16:20.520 --> 0:16:22.040 I think we're going to come back into a better 0:16:22.040 --> 0:16:24.760 place in this country because making things has always been important. 0:16:24.840 --> 0:16:26.840 You know, everybody that has ever spent time in a 0:16:26.880 --> 0:16:28.560 factory floor and I did. I grew up and then 0:16:28.560 --> 0:16:30.800 my dad ran factories kind of knows that that's an 0:16:30.800 --> 0:16:33.480 important part of innovation and iteration. So I think having 0:16:33.520 --> 0:16:35.760 an economy that's based on something aside from you know, 0:16:35.840 --> 0:16:38.840 finance and software, uh, and it's more diverse and inclusive 0:16:38.880 --> 0:16:40.120 in this country is going to be a good thing, 0:16:40.360 --> 0:16:43.400 all right, Ron for our congrats on the book Financial 0:16:43.400 --> 0:16:46.960 Times calumnist and awful of the author of Homecoming. Good 0:16:47.000 --> 0:16:49.360 to have you. Now, speaking of China and supply chain issues, 0:16:49.400 --> 0:16:53.160 the country has been struggling with containing COVID cases in 0:16:53.440 --> 0:16:56.400 recent weeks, and now officials are said to be debating 0:16:56.400 --> 0:16:58.720 whether to reduce the amount of time people entering the 0:16:58.720 --> 0:17:02.640 country must spend and quarantine. They're talking about setting the 0:17:02.680 --> 0:17:04.600 period to two days in a hotel, then five days 0:17:04.600 --> 0:17:07.320 at home, versus the current seven days in a hotel 0:17:07.359 --> 0:17:10.840 three days at home. The country's COVID zero policy leaving 0:17:10.840 --> 0:17:15.200 it increasingly isolated from the rest of the world. Gotta 0:17:15.240 --> 0:17:17.120 have much more coming up after the break. Let stay 0:17:17.119 --> 0:17:31.040 with us. This is Bloomberg. Texas sued Google overclaims that 0:17:31.080 --> 0:17:35.480 it's illegally capturing the biometric data of users without their consent. 0:17:35.920 --> 0:17:38.320 This is the latest in a series of lawsuits by 0:17:38.359 --> 0:17:41.679 the state against tech companies over online privacy. According to 0:17:41.720 --> 0:17:45.359 Texas Attorney General Can Paxton, Google has collected millions of 0:17:45.400 --> 0:17:49.879 biometric identify irs from Texas residents, including voice prints and 0:17:50.040 --> 0:17:53.600 records of face geometry, through products like Google Photos and 0:17:53.640 --> 0:17:58.080 Google assistant. Netflix's top executives continue to battle that out 0:17:58.119 --> 0:18:01.280 over releasing more of its original movies theaters. The Wall 0:18:01.280 --> 0:18:04.280 Street Journal reporting some arguing Netflix is leaving hundreds of 0:18:04.280 --> 0:18:07.440 millions in box office receipts on the table by showing 0:18:07.480 --> 0:18:10.240 select movies in just a few theaters for a few weeks, 0:18:10.240 --> 0:18:13.959 while others feel theater showings create us for the streaming service. 0:18:22.040 --> 0:18:24.600 Welcome back. We've got some breaking news now coming out 0:18:24.600 --> 0:18:28.000 of the Washington Post that Elon Musk plans to cut 0:18:28.160 --> 0:18:32.959 Twitter's workforce by seventy five percent. The Post reporting on 0:18:33.119 --> 0:18:41.400 documents detailing these plans to allegedly cut Twitter's workforce. Um, 0:18:41.440 --> 0:18:44.840 of course, we've been talking about whether or not Musk 0:18:44.880 --> 0:18:48.239 would make big changes, especially when it comes to staffing. Now. 0:18:48.240 --> 0:18:50.320 Of course, the deal is not done yet, still waiting 0:18:50.320 --> 0:18:54.840 for that October deadline for a deal to happen. But 0:18:56.160 --> 0:18:59.520 if Elon Musk does indeed close this deal to buy Twitter, 0:19:00.119 --> 0:19:03.400 does indeed cut seventy of the workforce, you're talking about 0:19:03.400 --> 0:19:07.399 thousands of people. Um. Twitter's workforce is currently at about 0:19:07.480 --> 0:19:14.240 seven thousand, five hundred people, so that is a significant cut. 0:19:14.240 --> 0:19:16.040 We're gonna continue to follow this story and bring you 0:19:16.080 --> 0:19:20.560 more headlines as we have them. Meantime, I want to 0:19:20.680 --> 0:19:24.240 talk a little bit about workplace trends. The pandemic, of course, 0:19:24.280 --> 0:19:26.880 has brought about many changes, one of them being hybrid work, 0:19:27.240 --> 0:19:29.040 but it's not the only metric that matters. And we're 0:19:29.040 --> 0:19:31.159 going to talk about this all with Arianna Hoffington, founder 0:19:31.160 --> 0:19:35.399 and CEO of Thrive Global. Ariana, so great to have 0:19:35.520 --> 0:19:39.160 you back. Um. As always, you know, we've been hearing 0:19:39.200 --> 0:19:41.760 this term quiet quitting over and over again, which speaks 0:19:41.800 --> 0:19:44.760 to this idea of employees deciding not to go above 0:19:44.800 --> 0:19:49.600 and beyond their listed responsibilities. Why do you think that 0:19:49.760 --> 0:19:53.840 is so? I really great to be with you. I'm 0:19:53.920 --> 0:19:57.399 here at the Masters of Scale Conferdence at Reid Hoffman 0:19:57.680 --> 0:20:02.679 and the wide want more organizing and quite quitting, the 0:20:02.800 --> 0:20:07.120 great resignation, the great break up for women have been 0:20:07.280 --> 0:20:11.200 big themes of the conference. And what is interesting about 0:20:11.320 --> 0:20:15.119 quite quitting is that it's really a rejection of the 0:20:15.200 --> 0:20:19.840 hussle culture that we've all been bemoaning. But also it's 0:20:19.880 --> 0:20:25.080 like a false choice between hussle culture and burnout and 0:20:25.720 --> 0:20:29.960 giving up on having an engaged job that you love 0:20:30.040 --> 0:20:32.840 and brings you joy in a sense of purpose and meaning, 0:20:33.480 --> 0:20:36.400 and so a lot of the conversation here has been 0:20:36.440 --> 0:20:42.240 about how to recognize that we don't have to buy 0:20:42.320 --> 0:20:45.480 this false choice, that we can be engaged in our 0:20:45.560 --> 0:20:50.959 jobs and set boundaries. And also, if you look at 0:20:51.000 --> 0:20:56.200 the great breakup that the Mackensey Leaning Report talked about 0:20:56.520 --> 0:21:01.200 with them many more women living in the workplace because 0:21:01.200 --> 0:21:04.920 of burnout compared to men forty three versus thirty one, 0:21:06.080 --> 0:21:09.280 and you see that burnout is at the top of 0:21:09.320 --> 0:21:13.000 the conversation everywhere. Well, and I wondered, two women and 0:21:13.119 --> 0:21:16.600 underrepresented minorities have the luxury of quiet quitting or is 0:21:16.600 --> 0:21:20.840 this something that you know more men have the luxury 0:21:20.920 --> 0:21:23.879 of doing. Well, it's not just quite witting for women. 0:21:23.960 --> 0:21:29.480 They're just leaving the workspace in unprecedented numbers. And that's 0:21:29.520 --> 0:21:34.080 all the bad news. And Emily, the good news is 0:21:34.160 --> 0:21:37.959 that these conversations are no longer just the province of 0:21:38.000 --> 0:21:43.120 the HR departments. And Satia and Natala spoke here yesterday morning, 0:21:43.920 --> 0:21:48.320