WEBVTT - Growing Middle East Concerns, A Billionaire's Quest for a Cure 0:00:01.360 --> 0:00:05.720 This is Bloomberg Business Wait inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business, finance and tech news. The Bloomberg Business Week 0:00:13.720 --> 0:00:18.640 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.320 --> 0:00:23.760 Carol, Israel's military said it struck Hamas targets and Gaza overnight, 0:00:23.800 --> 0:00:26.560 and Israel also responded to fire from Lebanon by hitting 0:00:26.600 --> 0:00:27.560 Hezbola assets. 0:00:27.720 --> 0:00:30.240 So let's get to Mick mulroy. He is back with US, 0:00:30.280 --> 0:00:33.559 former Deputy Assistant Secretary of Defense, a retired CIA officer, 0:00:33.720 --> 0:00:36.360 understands as we've been leaning on him big time. He's 0:00:36.400 --> 0:00:39.000 also co founder of the Lobo Institute, so obviously looking 0:00:39.000 --> 0:00:41.800 at areas of the world where there is conflict. Mick, 0:00:41.840 --> 0:00:43.120 we want to get you to weigh in. We know 0:00:43.159 --> 0:00:46.720 you're monitoring a lot of stuff right now. Another crazy week, 0:00:46.760 --> 0:00:48.640 if you will. How are you thinking about it on 0:00:48.720 --> 0:00:49.280 this Friday? 0:00:51.159 --> 0:00:52.720 So, first of all, great to be with you, and 0:00:52.720 --> 0:00:56.000 it's great that these two American hostages were released, a 0:00:56.040 --> 0:01:00.880 mother and daughter. They're saying because he manitarian reason, she 0:01:01.000 --> 0:01:04.240 was very sick. But it's always good to get Americans released. 0:01:04.280 --> 0:01:07.640 But there's several more, and there's around two hundred total 0:01:08.080 --> 0:01:10.919 hostages held by a MOSS right now, which of course 0:01:11.120 --> 0:01:14.920 is a war crime to hold civilians as prisoners of war. 0:01:15.600 --> 0:01:17.319 So that is a very good thing, and hats off 0:01:17.319 --> 0:01:21.240 to everybody that had a role in that guitar for example, 0:01:21.520 --> 0:01:23.959 and likely the FBI and the CIA, so. 0:01:23.959 --> 0:01:24.520 Good for them. 0:01:24.520 --> 0:01:26.240 But there's a lot more to do when it comes 0:01:26.240 --> 0:01:28.959 to get hostages out, and it does look like we 0:01:29.000 --> 0:01:32.600 are on the edge of this ground invasion that could 0:01:32.640 --> 0:01:34.960 be coming with the next twenty four or forty eight hours. 0:01:35.240 --> 0:01:36.920 We want to also bring in our Bobby go She's 0:01:36.920 --> 0:01:40.520 a Bloomberg opinion columnist but has covered the Middle East 0:01:40.560 --> 0:01:43.039 for a long long time. And you know, I know, Mick, 0:01:43.080 --> 0:01:44.840 you've got to run. But Bobby, I wonder if you 0:01:44.880 --> 0:01:46.840 have a question for Mick who's also been covering this. 0:01:46.880 --> 0:01:48.320 We'd love to do that Mick before maybe you have 0:01:48.360 --> 0:01:50.080 to run. Bobby, you have a question real quick one. 0:01:50.560 --> 0:01:54.120 Well, yes, absolutely. What I would like to ask Mick 0:01:54.240 --> 0:01:58.160 is basically the events of the last twenty four hours, 0:01:57.840 --> 0:02:01.920 these missiles and rockets that have been directed at American 0:02:01.960 --> 0:02:06.400 targets as well as Israel from not just Hamas, but 0:02:06.600 --> 0:02:12.280 also and Hesbalala, but also from she militias in Iraq, 0:02:12.760 --> 0:02:16.720 and it looks like the Huthi militias in Yemen. What 0:02:16.760 --> 0:02:19.440 they all have in common is that they're all sponsored by, 0:02:19.560 --> 0:02:24.320 paid for, trained by Iran. And how much of sort 0:02:24.360 --> 0:02:29.400 of Iran is looming over the back drop of all 0:02:29.440 --> 0:02:32.560 the decision making that's taking place in Washington over what 0:02:32.600 --> 0:02:34.480 to do next in the region. 0:02:35.639 --> 0:02:38.120 That is a very good question and a very astute one. 0:02:38.520 --> 0:02:41.359 You are correct, Hamask it's about ninety percent of its 0:02:41.360 --> 0:02:45.960 military funding from Iran. Hes Belah very similar support multiple 0:02:45.960 --> 0:02:50.440 militias in Syria, and the Huthis are on Allah in Yemen, 0:02:50.760 --> 0:02:53.040 who has been waging a bloody civil wars. I'm sure 0:02:53.040 --> 0:02:57.280 you're aware of since around twenty fourteen. They all have 0:02:58.080 --> 0:03:01.200 Iran in common. They are especially when it comes to 0:03:01.200 --> 0:03:03.840 their advanced weapons systems, they get almost all of them 0:03:03.840 --> 0:03:07.600 from Iran, and it's likely that Iran could use that 0:03:07.680 --> 0:03:11.560 connection should Israel, and it looks like they will launch 0:03:11.639 --> 0:03:14.760 a ground invasion into Gaza, particularly if a most looks 0:03:14.760 --> 0:03:16.720 like it's going to be destroyed. There'll be a lot 0:03:16.760 --> 0:03:20.040 of pressure on all of those entities you mentioned and 0:03:20.080 --> 0:03:22.799 Iran could orchestrate the whole thing. And I think that's 0:03:22.840 --> 0:03:25.680 why the United States, and that's why they said they 0:03:25.760 --> 0:03:28.920 place so much military capacity right off the coast of Israel, 0:03:28.960 --> 0:03:32.760 with two carriers, strike groups, a marine expeditionary unit, and 0:03:32.200 --> 0:03:34.840 more elements moving to the area. 0:03:34.920 --> 0:03:37.040 Hey, Mick, I know you got to go. We are 0:03:37.120 --> 0:03:41.320 hearing from Anthony Blincoln, Secretary of State right now after 0:03:41.560 --> 0:03:43.480 the release of two American hostages, and that's where I 0:03:43.480 --> 0:03:45.360 want to go with our last question to you. Just 0:03:45.360 --> 0:03:47.440 give us an idea of what happens behind the scenes 0:03:47.440 --> 0:03:49.640 to secure the release of hostages, even though there are 0:03:49.680 --> 0:03:51.120 so many more that need to be released. 0:03:52.760 --> 0:03:55.720 So I think this is such a difficult military problem. 0:03:55.960 --> 0:03:59.480 Even the best units would have a hard time rescuing 0:03:59.800 --> 0:04:04.120 two two hundred hostages, likely in tunnels. Likely it's already 0:04:04.120 --> 0:04:07.520 wired to explode if they get too close, and may 0:04:07.640 --> 0:04:11.520 actually facilitate the recovery. So all these diplomatic efforts are 0:04:11.720 --> 0:04:15.119 truly their best option for getting out, and I hope 0:04:15.200 --> 0:04:17.720 they continue and we see more hostages coming out. 0:04:17.839 --> 0:04:19.640 Hey Mick, thank you so much. You've been great throughout 0:04:19.640 --> 0:04:22.320 this crisis, and we know you've got to run. But that, 0:04:22.400 --> 0:04:25.239 of course is McK mulroy, as we said, former Deputy 0:04:25.240 --> 0:04:29.160 Assistant Secretary of Defense, retired CIA officer, retired US Marine reservist, 0:04:29.680 --> 0:04:32.760 and co founder of the Lobo Institute, which advises, consults 0:04:32.800 --> 0:04:37.880 and teaches on conflicts. So so appreciate Heyway, And I've 0:04:37.920 --> 0:04:39.800 got to say we've also been leaning big time on 0:04:39.839 --> 0:04:43.440 our own Bobby Gosh Bloomberg opinion columnists covering culture, but 0:04:43.440 --> 0:04:47.160 he spent many, many, many years covering foreign affairs, particularly 0:04:47.240 --> 0:04:49.680 from those conflict zones in the Middle East. So Bobby, 0:04:49.720 --> 0:04:51.520 we do want to stay with you. I do think 0:04:51.520 --> 0:04:55.000 about what has to be front and center for the 0:04:55.160 --> 0:04:58.920 United States right now in terms of in a fluid 0:04:58.960 --> 0:05:02.159 situation trying to calm things down. But it does feel 0:05:02.160 --> 0:05:06.400 like with these additional conflicts or outbreaks, if you will, 0:05:06.680 --> 0:05:08.880 that it does feel like it's there's slowly a little 0:05:08.880 --> 0:05:09.480 bit of a creep. 0:05:10.800 --> 0:05:13.520 There's always a risk of that when the United States 0:05:13.560 --> 0:05:17.719 commits itself to a situation, even if the commitment is 0:05:17.760 --> 0:05:20.440 for peace, there's always a risk of getting caught up 0:05:21.200 --> 0:05:25.360 in a warlike situation. So yesterday, the reporting from our 0:05:25.360 --> 0:05:28.920 news colleagues of these missile attacks from Yemen which is 0:05:28.960 --> 0:05:32.520 a really long way from Israel. But these missiles, it 0:05:32.560 --> 0:05:35.560 would appear, were heading in the general direction of Israel. 0:05:36.360 --> 0:05:38.839 They would have to fly over quite a lot of 0:05:38.920 --> 0:05:42.520 Saudi land mass as well, and they were taken down 0:05:42.600 --> 0:05:48.479 by an American warship that sort of now nobody, no 0:05:48.600 --> 0:05:51.719 human being was hurt in the process. But it is 0:05:51.760 --> 0:05:56.000 an American ship taking aim at a missile that is 0:05:56.360 --> 0:05:58.599 heading in the direction of Israel. So the United States 0:05:58.640 --> 0:06:01.480 to that extent is already engaged in the war. 0:06:01.839 --> 0:06:03.880 What is that, Bobby? What does that mean though? When 0:06:03.920 --> 0:06:07.400 the US is engaged in that sense? And I that's 0:06:07.400 --> 0:06:11.040 the same question thrown Nick Wadams earlier, Because it does 0:06:11.080 --> 0:06:14.680 it risk, in your opinion, the US being drawn into 0:06:14.680 --> 0:06:17.080 this conflict more so than it already has been. 0:06:17.640 --> 0:06:21.200 Yes, it does. The crucial thing is that it took 0:06:21.200 --> 0:06:23.200 place a long way from the main theater of the war, 0:06:23.360 --> 0:06:28.960 and that it did not involve American boots on the ground, certainly, 0:06:29.560 --> 0:06:34.080 and it did not sort of involve shooting down a plane, 0:06:34.120 --> 0:06:39.960 for instance, or a nest of fighters. No blood was spilt, 0:06:40.080 --> 0:06:43.920 So that gives the US a certain amount of distance. 0:06:44.279 --> 0:06:46.840 But it is a cautionary tail. It tells you that 0:06:47.040 --> 0:06:50.480 the longer this conflict rages, the more we might find 0:06:50.520 --> 0:06:55.279 ourselves in situations like this. And the fact that the 0:06:55.400 --> 0:06:59.719 US President Biden has sent two aircraft carrier groups into 0:06:59.720 --> 0:07:03.400 the Eastern Mediterranean. They're not there just for show. They're 0:07:03.440 --> 0:07:07.279 there to worn off Israel's other enemies and our enemies 0:07:07.320 --> 0:07:09.920 from trying to get involved. And if they do get involved, 0:07:10.400 --> 0:07:14.240 then those then you know, a moment may come when 0:07:14.240 --> 0:07:18.120 the United States is forced to follow through on its threats. 0:07:18.920 --> 0:07:22.360 We should all hope that that moment never comes. The 0:07:22.400 --> 0:07:25.760 big part of President Biden's visits to Israel was to 0:07:25.920 --> 0:07:30.400 try and make sure that there was a humanitarian corridor 0:07:30.480 --> 0:07:35.800 into Gaza, and I think he was encouraging the Israelis 0:07:36.120 --> 0:07:40.120 to hold back, not to to sort of rush in 0:07:40.400 --> 0:07:43.440 with a sense of vengeance, but to be more measured, 0:07:44.040 --> 0:07:48.840 to make more efforts to to sort of prevent hurting civilians, 0:07:49.120 --> 0:07:51.200 and to have a plan for what happens after the 0:07:51.240 --> 0:07:51.920 fighting is over. 0:07:52.160 --> 0:07:54.040 Do you think it was smart of the president to 0:07:54.200 --> 0:08:01.040 tie aid to Israel and to Ukraine and do concerns 0:08:01.040 --> 0:08:06.000 about Taiwan and also you know the Mexican border, like 0:08:06.040 --> 0:08:08.800 to tie it all together about the protection of American democracy. 0:08:08.800 --> 0:08:10.160 And again I do this to you all the time. 0:08:10.160 --> 0:08:11.560 I've got about thirty seconds here. 0:08:12.360 --> 0:08:14.840 Well, it's the nature of our politics now. Unfortunately, in 0:08:14.880 --> 0:08:16.680 an ideal world, he would be able to do all 0:08:16.720 --> 0:08:19.640 those things separately, and you would have a responsive Congress 0:08:19.640 --> 0:08:22.840 that would appreciate what's going on in the wider world. 0:08:23.080 --> 0:08:25.239 You and I know that that's not what the Congress 0:08:25.320 --> 0:08:29.000 is like right now. And to get people's attention, to 0:08:29.000 --> 0:08:31.560 get the attention of the folks on Capitol Hill, the 0:08:31.600 --> 0:08:34.600 president's having to sort of bundle all these things together. 0:08:34.800 --> 0:08:37.000 There is a common ad narrative, and he hit those 0:08:37.040 --> 0:08:41.480 notes yesterday in his speech, right. But in an ideal world, 0:08:41.520 --> 0:08:42.360 he wouldn't have had. 0:08:42.200 --> 0:08:44.560 To smarter because if you weigh in on all of this. 0:08:44.600 --> 0:08:47.680 Bobby go Schploomberg Opinion calmnist, as we said, has covered 0:08:47.720 --> 0:08:50.160 foreign affairs for a long time. He currently covers culture, 0:08:50.160 --> 0:08:52.720 but just knows so much about what's going on in 0:08:52.720 --> 0:08:53.200 that region. 0:08:53.760 --> 0:08:57.360 You're listening to the Bloomberg Business Week podcast. Catch us 0:08:57.360 --> 0:09:00.760 live weekday afternoons from three to six Eastern Listen on 0:09:00.800 --> 0:09:04.520 Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business 0:09:04.559 --> 0:09:07.360 app or wants us live on YouTube. 0:09:08.800 --> 0:09:11.480 We're that strong US retail sales data this week. 0:09:12.040 --> 0:09:14.920 Yeah, turns out American consumers are still spending. 0:09:14.640 --> 0:09:16.079 Money a lot of different things. 0:09:16.200 --> 0:09:19.319 The American Expresses third quarter revenue and profit also soaring 0:09:19.360 --> 0:09:21.640 to record levels. This is the company continue to attract 0:09:21.640 --> 0:09:24.840 new cardholders who are willing to pay an annual fee 0:09:24.880 --> 0:09:29.520 for its premium products. Still spending slowed a little bit. Yeah, 0:09:29.679 --> 0:09:30.360 a mixed report. 0:09:30.640 --> 0:09:33.120 It is kind of a mixed report. So we're getting 0:09:33.120 --> 0:09:34.840 different facets of kind of what's going on with the 0:09:34.840 --> 0:09:37.560 American consumers and different types of consumers. To be fair, 0:09:37.880 --> 0:09:40.600 Tom McGee is back with US, president of ICSC at 0:09:40.640 --> 0:09:44.160 the organization formerly known as the International Council of Shopping Centers. 0:09:44.679 --> 0:09:47.280 It's the trade association of the shopping center industries. We'd 0:09:47.320 --> 0:09:50.920 like to remind our viewers and listeners. He is back 0:09:50.920 --> 0:09:52.839 with us on Zoom in New York City. Tom, how 0:09:52.880 --> 0:09:53.160 are you. 0:09:54.120 --> 0:09:56.080 It's great to be with the Carol. I'm doing well. 0:09:56.120 --> 0:09:57.040 Hopefully you are too. 0:09:57.240 --> 0:09:59.120 We are trying to keep up with kind of the 0:09:59.440 --> 0:10:01.840 newsflow and just deal with the world which is pretty 0:10:01.880 --> 0:10:05.480 heavy as you as you would imagine, you know, the 0:10:05.520 --> 0:10:08.360 shopping center industry. We did get a strong retail report 0:10:08.400 --> 0:10:11.280 this week. What are you guys hearing front and center 0:10:11.360 --> 0:10:12.480 from some of your members? 0:10:13.880 --> 0:10:17.240 Well, consumer, the consumer continues to be resilient. You know, 0:10:17.280 --> 0:10:20.440 we're heading into the holiday season with an expectation for 0:10:20.480 --> 0:10:24.360 a positive holiday season three point eight percent growth, you know, 0:10:24.440 --> 0:10:27.240 seven point six percent growth in the food and beverage industry. 0:10:28.040 --> 0:10:30.640 So the consumer continues to be resilient. It's certainly concerned 0:10:30.640 --> 0:10:34.960 about inflation, no doubt about that. You're seeing the consumer, 0:10:35.080 --> 0:10:37.800 particularly during the holiday with an expectation to spend more 0:10:37.840 --> 0:10:43.079 on discount and discount department stores specifically, but still strong 0:10:44.000 --> 0:10:48.520 and you know, until something dramatic happens in the employment market, 0:10:48.559 --> 0:10:49.280 I would. 0:10:49.000 --> 0:10:51.400 Expect the consumer to continue to be resilient. 0:10:51.480 --> 0:10:54.800 You know, that's the ultimate consumer facing industry, and consumer 0:10:54.840 --> 0:10:59.000 confidence drives behavior, and if you have job security, you 0:10:59.080 --> 0:11:00.360 tend to be more confident. 0:11:00.400 --> 0:11:02.920 It's been where are you seeing spending patterns? And how 0:11:02.920 --> 0:11:04.800 are you seeing spending patterns or how are your partners 0:11:04.880 --> 0:11:05.880 seeing spending patterns? 0:11:05.920 --> 0:11:06.320 Right now? 0:11:06.640 --> 0:11:10.280 At these shopping centers which have really morphed from sort 0:11:10.280 --> 0:11:13.959 of having anchor tenants and big box stores to really 0:11:14.000 --> 0:11:17.000 experiential places in a lot of these newer areas. 0:11:17.480 --> 0:11:17.760 Yeah. 0:11:17.800 --> 0:11:21.520 So our industry covers everything from you know, large regional 0:11:21.600 --> 0:11:25.679 malls to you know, a classic grocery anchored shopping center 0:11:25.720 --> 0:11:29.440 and open air center and everything in between. You know, 0:11:29.440 --> 0:11:32.400 you're really seeing retail evolved quite a bit to your 0:11:32.440 --> 0:11:34.920 point around you know, regional mall is a lot more 0:11:34.920 --> 0:11:39.360 experiential in nature to really open air centers, which are 0:11:39.400 --> 0:11:41.960 which are kind of on fire right now in the 0:11:42.000 --> 0:11:43.440 post pandemic environment. 0:11:43.720 --> 0:11:47.720 Yes, it's actually the use of the physical retail. 0:11:47.840 --> 0:11:49.920 Yeah, I want to bring up an example of this, Carol. 0:11:50.080 --> 0:11:50.640 I don't you know. 0:11:50.720 --> 0:11:52.560 I don't know if you got to experience this last week, Carol, 0:11:52.600 --> 0:11:54.920 but the two of us were in La and I 0:11:54.960 --> 0:11:56.840 was there for a conference. Carol and I were there 0:11:56.880 --> 0:11:59.800 first conference. We stayed in Century City. Your room overlooked 0:11:59.800 --> 0:12:00.800 the Field mall. 0:12:00.920 --> 0:12:01.679 Yeah, I was right there. 0:12:01.760 --> 0:12:04.000 Yes, I actually went to dinner there right before I 0:12:04.160 --> 0:12:05.760 met you at the airport on the on our way back. 0:12:05.800 --> 0:12:08.040 I was there with a friend. It was an amazing 0:12:08.360 --> 0:12:11.640 indoor slash outdoor experience and it was like it was 0:12:11.679 --> 0:12:14.360 like a mall unlike one I've ever been to. 0:12:14.400 --> 0:12:15.880 And they underone Italy. 0:12:16.280 --> 0:12:19.840 Yeah, yeah, yeah, Sarah was went there as well. Yeah, 0:12:19.840 --> 0:12:23.480 one of our producers, and I got it. I mean 0:12:23.480 --> 0:12:26.360 it was like it was crowded. It didn't feel like 0:12:26.400 --> 0:12:28.280 a typical mall. This type of thing only works in 0:12:28.320 --> 0:12:30.839 California because the weather's perfect there all the time in 0:12:30.880 --> 0:12:34.400 southern California. But you know, they had like furniture, outdoor 0:12:34.440 --> 0:12:36.960 furniture that people were like lounging on and looking on 0:12:37.000 --> 0:12:39.840 their at their phone, right, they were just hanging out there. 0:12:39.840 --> 0:12:41.400 I was like, what is this nineteen ninety. 0:12:41.360 --> 0:12:43.680 Yeah, it is interesting. You know, if you think about it, Tom, 0:12:43.760 --> 0:12:47.000 kind of the rethink on what kind of malls have 0:12:47.720 --> 0:12:49.720 you know, kind of morphed into. 0:12:50.880 --> 0:12:51.120 Sure. 0:12:51.160 --> 0:12:53.679 I think that's a great example. And and you know, 0:12:53.880 --> 0:12:57.640 different properties have different offerings, you know, whether it's you know, 0:12:57.720 --> 0:13:01.280 the American dream I hear in in the Tri State. 0:13:01.200 --> 0:13:04.319 Right place to teach your kids to ski? Seriously, really 0:13:04.400 --> 0:13:04.800 you as. 0:13:05.640 --> 0:13:08.760 To your point around, you know, different weather patterns and 0:13:08.840 --> 0:13:13.199 different you know, drives, different offerings. But you know, malls 0:13:13.200 --> 0:13:16.880 have evolved, and you know the story of the demise 0:13:16.920 --> 0:13:19.240 of the American mall has been written for the last 0:13:19.280 --> 0:13:20.320 thirty forty years. 0:13:20.320 --> 0:13:22.920 Okay, but to be fair, the American dream mall is 0:13:22.960 --> 0:13:24.720 struggling pretty badly right now. 0:13:24.760 --> 0:13:29.400 Again, well, I think I think every property has its 0:13:29.440 --> 0:13:32.360 own history. But my real point is that, you know, 0:13:32.440 --> 0:13:35.960 the mall industry, the demise of the industry has been 0:13:35.960 --> 0:13:39.439 written for decades, and yet we're still at basically the 0:13:39.480 --> 0:13:42.800 same number of malls in the country today that we 0:13:42.920 --> 0:13:46.800 had twenty years ago. And so they're very resilient and 0:13:47.320 --> 0:13:49.679 you know, good real estate will always find its purpose, 0:13:50.200 --> 0:13:53.240 and so, you know, the evolution is a big part 0:13:53.280 --> 0:13:55.920 of retail and a big part of real estate, and 0:13:55.960 --> 0:13:57.520 so the mall sector. 0:13:57.280 --> 0:13:58.440 Is one part of the industry. 0:13:58.440 --> 0:14:02.199 And then you have what I you know, your Target anchored, 0:14:02.280 --> 0:14:05.320 your Walmart anchored open air type of center, or even 0:14:05.440 --> 0:14:10.400 grocery anchor centers. And what's happening is in those physical 0:14:10.400 --> 0:14:15.040 retail locations, those stores are really starting to use that 0:14:15.480 --> 0:14:18.880 physical space not just for traditional shopping, but also is 0:14:18.960 --> 0:14:21.640 really many fulfillment centers. And so it was an opportunity 0:14:21.720 --> 0:14:25.920 to you know, fulfill online orders, to service that last mile, 0:14:26.720 --> 0:14:30.400 and that really became something that you know, accelerated quite 0:14:30.480 --> 0:14:33.880 dramatically during the pandemic year. Obviously, you know, just the 0:14:34.200 --> 0:14:37.720 just by definition of what was happening, people couldn't congregate 0:14:38.200 --> 0:14:41.760 physical space as often, and so retailers were forced to 0:14:41.800 --> 0:14:44.960 adapt and that's become very effective. 0:14:45.000 --> 0:14:47.280 And so the demand for physical. 0:14:46.840 --> 0:14:51.320 Space, particularly in that open air sector is super strong 0:14:51.400 --> 0:14:54.280 right now. If you look at physical retail space in 0:14:54.320 --> 0:14:58.359 the United States and where it was at the financial 0:14:58.360 --> 0:15:00.440 crisis in two thousand and eight and where it is today. 0:15:00.880 --> 0:15:04.280 You know, while population growth is accelerated, what GDP growth, 0:15:04.320 --> 0:15:06.840 it is acceleraate, retail sales have almost doubled during that 0:15:06.880 --> 0:15:09.600 period of time, right, the amount of physical retail space 0:15:09.720 --> 0:15:12.080 is not, you know, increased almost at all. 0:15:12.280 --> 0:15:15.200 And so you really have a mismatches supply and demand. 0:15:14.880 --> 0:15:17.360 Now right Well, there's a lot more demand and not 0:15:17.480 --> 0:15:18.760 enough supply to Philip, do. 0:15:18.680 --> 0:15:21.040 You want to point out that we reported Bloomberg News 0:15:21.480 --> 0:15:25.080 back in September that New Jersey's American dream Megamol losses 0:15:25.160 --> 0:15:28.400 quadrupling in twenty twenty two, widing to two hundred and 0:15:28.400 --> 0:15:31.640 forty five million. I mean, this is a special situation, 0:15:31.720 --> 0:15:35.400 it does feel like, but we continue to report on Hey, Tom, 0:15:35.520 --> 0:15:38.080 just got about thirty seconds left here. You guys have 0:15:38.120 --> 0:15:42.040 a survey out for the upcoming holiday season. Anything that 0:15:42.840 --> 0:15:46.600 kind of indicates a possible recession or consumer slowdown. And again, 0:15:46.640 --> 0:15:48.640 just got about thirty seconds please, No. 0:15:48.800 --> 0:15:51.680 Well, I mean we're forecasting positive retail sales three point 0:15:51.680 --> 0:15:54.200 eight percent growth, seven point six percent growth in FMB. 0:15:55.400 --> 0:15:58.920 You know, eight out of ten Americans expect to spend 0:15:59.120 --> 0:16:00.920 equal or more than they did last year. 0:16:01.000 --> 0:16:04.600 So right now, the consumer continues to be resilient. All right? 0:16:04.640 --> 0:16:05.880 Can I leave it on that note? Listen, have a 0:16:05.880 --> 0:16:08.240 great weekend. Always fun to check in with you. Tommygee, 0:16:08.360 --> 0:16:11.960 President and chief executive officer of ICSC. It's a group 0:16:12.000 --> 0:16:16.400 that's representing the shopping mall industry, So a good check 0:16:16.440 --> 0:16:17.680 on the consumer. 0:16:17.720 --> 0:16:18.440 Maybe with three D. 0:16:19.160 --> 0:16:21.320 Yeah, yeah, I don't know, Like I can't. 0:16:21.080 --> 0:16:23.080 Tell that mall was cool. 0:16:23.400 --> 0:16:24.800 Have you gone back a lot though? 0:16:25.520 --> 0:16:28.440 No, I'm talking about the one and now the Yeah, 0:16:28.440 --> 0:16:30.520 the American dream will go back there. Yeah, yeah, I'll 0:16:30.560 --> 0:16:32.680 do some skiing. Yeah, it's a good way to teach 0:16:32.680 --> 0:16:33.360 your kids to skire. 0:16:33.400 --> 0:16:34.840 You have to try that. It's kind of fun. 0:16:35.400 --> 0:16:38.960 You're listening to the Bloomberg Business Week podcast. Catch us 0:16:39.000 --> 0:16:42.960 live weekday afternoons from three to six Easter on Bloomberg Radio, 0:16:43.200 --> 0:16:46.480 the Bloomberg Business App, and YouTube. You can also listen 0:16:46.600 --> 0:16:49.680 live on Amazon Alexa from our flagship New York station, 0:16:50.160 --> 0:16:54.440 Just say Alexa play Bloomberg eleven thirty. 0:16:55.000 --> 0:16:57.040 Well, if you even have a cursory knowledge of the 0:16:57.040 --> 0:16:59.840 retail world, you probably know Chip Wilson. He's the founder 0:16:59.880 --> 0:17:03.120 of Lululemon Athletica, which he ran until twenty thirteen. That's 0:17:03.120 --> 0:17:06.960 when he stepped away following some particularly insensitive comments about 0:17:06.960 --> 0:17:09.960 how the pants looked on some women's bodies. It's also 0:17:10.040 --> 0:17:13.800 probably why you know a lot about him, because he 0:17:13.960 --> 0:17:16.639 kind of was notorious around that time, Oh Carol. He's 0:17:16.640 --> 0:17:18.720 also got a net worth about seven point three billion dollars, 0:17:18.720 --> 0:17:20.480 that's according to the Bloomberg Billionaires Index. 0:17:20.560 --> 0:17:23.400 But there's one thing you probably didn't know about him, 0:17:23.400 --> 0:17:25.400 and that's what we want to get to because it's 0:17:25.400 --> 0:17:28.840 a mission. It's a situation, if you will, that he's 0:17:28.840 --> 0:17:30.320 spending a lot of money to correct. 0:17:30.400 --> 0:17:31.119 So let's get to it. 0:17:31.200 --> 0:17:33.440 Because this story isn't the current issue of Bloomberg Business 0:17:33.440 --> 0:17:36.800 Week on newstands, online, and of course, on the Bloomberg Aria. 0:17:36.800 --> 0:17:39.920 Alstedter is with us. He typically writes about Canada real estate, 0:17:39.960 --> 0:17:42.840 but he is writing about Chip Wilson and his current battle. 0:17:43.160 --> 0:17:46.000 He is with us from our Toronto bureau, and with 0:17:46.080 --> 0:17:48.119 us is the edit of Bloomberg BusinessWeek, Jill Webber in 0:17:48.160 --> 0:17:51.159 our Bloomberg Interactive Broker studio, and Jill, you know, we 0:17:51.160 --> 0:17:53.640 talk about Lululemon a lot. It's a company well known 0:17:53.680 --> 0:17:58.159 to certainly the Bloomberg BusinessWeek audience. Chip Wilson too, But 0:17:58.200 --> 0:18:01.560 I'm not sure that many knew about his own battle 0:18:01.720 --> 0:18:02.720 that he was facing. 0:18:02.840 --> 0:18:08.920 Yeah, and obviously Chip Wilson, founder of Lulu Lehman has 0:18:09.400 --> 0:18:12.200 you know, built this thing into a juggernaut and created 0:18:12.240 --> 0:18:16.600 a whole category. What most people didn't know is this 0:18:16.680 --> 0:18:19.959 whole other personal side to the story, which when we 0:18:20.000 --> 0:18:22.680 found out about that, we were like, we we really 0:18:22.680 --> 0:18:26.160 want to go big here, and gave Ari the platform 0:18:26.240 --> 0:18:29.680 to be able to do so. What's really amazing about 0:18:29.720 --> 0:18:33.040 it is He's got a fortune and he is willing 0:18:33.119 --> 0:18:37.480 to basically throw that fortune to help solve something that 0:18:37.640 --> 0:18:42.360 may only ultimately benefit him, but or hopefully a slightly 0:18:42.440 --> 0:18:45.639 wider group of people who otherwise if it was left. 0:18:45.400 --> 0:18:48.640 To the normal kind of way of that. 0:18:48.640 --> 0:18:53.520 Science and drugs and cures like this kind of happened 0:18:53.720 --> 0:18:58.120 may actually not ever be addressed. Right, So, so Ari 0:18:58.280 --> 0:19:02.560 talk to us about Chip Wilson and what he's been 0:19:02.560 --> 0:19:03.040 going through. 0:19:04.359 --> 0:19:04.560 Right. 0:19:04.600 --> 0:19:08.240 Well, Chip Wilson, as you say, in his public persona, 0:19:08.320 --> 0:19:10.720 he didn't really let on that he's actually been battling 0:19:10.760 --> 0:19:14.919 this very rare form of muscular dystrophe since he was 0:19:14.960 --> 0:19:18.360 diagnosed with it in his thirties, his early thirties. 0:19:18.520 --> 0:19:21.400 So for the past over thirty years, he's. 0:19:21.240 --> 0:19:27.240 Been watching his muscles slowly waste away. He could more 0:19:27.359 --> 0:19:31.760 or less carry on with normal life despite this disease. 0:19:32.320 --> 0:19:34.240 He had to give up squash when he couldn't raise 0:19:34.240 --> 0:19:35.960 the racket above his head, he had to give up yoga, 0:19:36.080 --> 0:19:38.639 and bounce became too difficult. 0:19:38.000 --> 0:19:40.480 But he sort of tried to ignore it. 0:19:40.760 --> 0:19:45.000 That all changed around late twenty eighteen early twenty nineteen 0:19:45.560 --> 0:19:48.479 when he was taking a trip to China walking out 0:19:48.520 --> 0:19:51.240 of customs and he fell, got up to't know what happened, 0:19:51.400 --> 0:19:52.800 walked forward, fell again. 0:19:53.080 --> 0:19:54.960 He started to lose the use of his legs. 0:19:55.320 --> 0:19:57.680 Now he thinks he's got about five years until he's 0:19:57.720 --> 0:20:01.080 in a wheelchair, and he he has an urgent need 0:20:01.119 --> 0:20:03.440 to do something about this now, and so he set 0:20:03.440 --> 0:20:06.199 aside one hundred million dollars and he says, I'm going 0:20:06.280 --> 0:20:09.360 to use it to cure this form of muscular dystrophy 0:20:09.440 --> 0:20:12.119 that I have in the next five years before I 0:20:12.200 --> 0:20:13.080 need that wheelchair. 0:20:13.119 --> 0:20:16.000 I want to ask you, I am shocked that this 0:20:16.119 --> 0:20:18.600 story kind of hasn't come out. So how is it 0:20:18.640 --> 0:20:21.399 that it was kept so quiet? 0:20:21.920 --> 0:20:24.920 Well, Chip Wilson is a very outspoken person. I think 0:20:24.960 --> 0:20:28.760 anyone who knows anything about him knows that. But he's 0:20:28.840 --> 0:20:31.640