WEBVTT - Bloomberg Businessweek Weekend-February 12, 2021 0:00:00.960 --> 0:00:05.000 This is Bloomberg Business Week with Carol Messer and Bloomberg 0:00:05.080 --> 0:00:09.320 Quick Takes. Tim Stinovan from Bloomberg Radio. Hi'm Carol Messer 0:00:09.480 --> 0:00:11.959 and I'm Tim Stenovk of Bloomberg Quick Take. Welcome to 0:00:12.000 --> 0:00:15.040 the weekend edition of Bloomberg Business Week, Week forty eight. 0:00:15.080 --> 0:00:17.920 Working from homest but who's counting, Carol for so many 0:00:18.000 --> 0:00:21.200 I guess apparently I am. We were at Bloomberg headquarters 0:00:21.200 --> 0:00:22.639 in New York City, and man, it was a week 0:00:22.680 --> 0:00:25.760 tim where there were so many cryptocurrency headlines. This week 0:00:25.800 --> 0:00:28.400 we're going to talk about that and what's going on 0:00:28.520 --> 0:00:31.680 with bitcoin and all of those cryptocurrencies with former f 0:00:31.760 --> 0:00:34.680 d i C chair Sheila Bear. And we're also talking toys. 0:00:34.720 --> 0:00:37.080 Looking forward to hearing about how Mattel is creating more 0:00:37.120 --> 0:00:40.000 culturally relevant toys and also just what a good year 0:00:40.800 --> 0:00:43.000 was for the company. Yeah, big time. Also, so many 0:00:43.040 --> 0:00:44.880 of us can't wait to get on a plane again. 0:00:44.920 --> 0:00:48.159 I cannot wait for work for fun, We've got the 0:00:48.159 --> 0:00:50.640 outlook for travel. I mean, I'm excited to go somewhere. 0:00:50.640 --> 0:00:52.519 I don't really want to sit on a plane again. No, 0:00:52.600 --> 0:00:54.480 I don't miss being in airports. I don't miss being 0:00:54.480 --> 0:00:58.640 on airplanes, but I miss going places airports, walking around. 0:00:58.720 --> 0:01:00.920 We're gonna hear from the CEO of Trovago all of 0:01:00.960 --> 0:01:03.480 that to come. We begin, though, with an interesting interview 0:01:03.480 --> 0:01:06.360 this week and Tim, it's around COVID. It's one company 0:01:06.360 --> 0:01:08.280 that actually made some news this week. We're talking about 0:01:08.360 --> 0:01:12.280 Tonics Pharmaceuticals share surging this week and really this year. 0:01:12.400 --> 0:01:14.960 You might recall the stock was the target of day 0:01:14.959 --> 0:01:18.119 traders last month, touting the company on message boards for 0:01:18.160 --> 0:01:21.440 no apparent reason, as Bloomberg reported, Well, this week the 0:01:21.440 --> 0:01:23.840 stock shooting up on news that it's developing a COVID 0:01:23.959 --> 0:01:27.440 nineteen antibody skin test. Yeah, it really caught investors attention. 0:01:27.480 --> 0:01:31.240 This was a really interesting interview. We both really liked it. Tonics, 0:01:31.280 --> 0:01:33.720 by the way, also working on a COVID vaccine, and 0:01:33.880 --> 0:01:37.720 that's where we started the interview. We're developing a vaccine 0:01:37.800 --> 0:01:42.720 primarily that stimulates T cell immunity. It's based on a 0:01:42.920 --> 0:01:48.400 live viral factor that's called Horsebox, and it's a one 0:01:48.440 --> 0:01:53.520 shot vaccine that we believe from historical parallels, could provide 0:01:53.560 --> 0:01:58.280 decades of protection. We have monkey data supporting the vaccine, 0:01:58.320 --> 0:02:01.000 so we were very happy when we in ounced that 0:02:01.080 --> 0:02:05.880 we're developing a skin test that will measure T sell 0:02:05.920 --> 0:02:10.120 immunity to COVID, and we think that this is important 0:02:10.200 --> 0:02:13.720 because there are two arms of the immune system, antibodies 0:02:13.720 --> 0:02:17.640 and T cells. Antibodies are transient. They can be measured 0:02:17.680 --> 0:02:20.600 for maybe three or six months. The T cells last 0:02:20.639 --> 0:02:23.440 for years or decades, So we think it will be 0:02:23.600 --> 0:02:26.919 very important to figure out how many people have T 0:02:27.080 --> 0:02:31.840 cell immunity instead of just the antibody test. How long 0:02:31.880 --> 0:02:33.720 do you think that will stick or I mean, how 0:02:33.760 --> 0:02:35.520 long do you think we will have to know this? 0:02:35.600 --> 0:02:37.680 I mean I'm thinking about this in the context of 0:02:38.400 --> 0:02:40.240 right us being on the other side of this pandemic 0:02:40.280 --> 0:02:42.880 at some point, But how many more years do you 0:02:43.000 --> 0:02:48.720 envision us actually needing to get tested for immunity. Well, unfortunately, 0:02:48.760 --> 0:02:53.360 I think that COVID is here to stay. I think 0:02:53.400 --> 0:02:57.440 it's the majority opinion of people that have experts that 0:02:58.000 --> 0:03:01.679 COVID will become endemic after Okay, I just want to 0:03:01.720 --> 0:03:04.280 make sure I understand this here to stay. We've only 0:03:04.280 --> 0:03:08.440 eradicated one one thing, and that is smallpox in around 0:03:08.440 --> 0:03:13.880 the world. Smallpox, we were very fortunate was eradicated because 0:03:14.040 --> 0:03:18.400 it was extremely deadly thirty of infected people died. But 0:03:18.800 --> 0:03:22.680 part of the success of smallpox eradication was the vaccine 0:03:22.720 --> 0:03:25.679 that was used. And the other part of the success 0:03:25.720 --> 0:03:31.240 with smallpox vaccination was that there were no animal reservoirs, 0:03:31.360 --> 0:03:34.880 And by animal reservoirs, I mean that no other non 0:03:35.040 --> 0:03:38.640 human animals got infected with it. With covid, we already 0:03:38.680 --> 0:03:43.400 know that's not the case. Manx, hamsters, tigers, a variety 0:03:43.400 --> 0:03:47.840 of different animals get so it's very unfortunately unlikely that 0:03:47.920 --> 0:03:50.720 this might be eradicated. So I think that the solution 0:03:50.800 --> 0:03:55.240 long term will be childhood immunization in the same way 0:03:55.320 --> 0:04:00.839 that we immunize for MMR measos moms and rebella. We 0:04:01.080 --> 0:04:06.040 probably will go to a system of immunizing children, and 0:04:06.160 --> 0:04:10.120 that's why we think of vaccine like ours, a live 0:04:10.200 --> 0:04:14.160 replicating vaccine which can provide years and decades of protection, 0:04:14.680 --> 0:04:19.600 is the best solution for that post pandemic covid problem. UM. 0:04:19.600 --> 0:04:22.240 But it wouldn't be infants, because a lot of viral 0:04:22.440 --> 0:04:28.320 vaccine is for UM. You know, in the case of smallpox, 0:04:28.680 --> 0:04:32.279 it was administered to children about five years old or so, 0:04:33.000 --> 0:04:35.680 but not not for infants. But yes, I think that 0:04:35.680 --> 0:04:38.080 that would be the plan. But clearly, first we have 0:04:38.160 --> 0:04:40.919 to get out of the pandemic. And for this, I 0:04:40.960 --> 0:04:44.520 think we're all extremely grateful to people who have quickly 0:04:44.560 --> 0:04:48.119 developed these vaccines, the MR and A vaccines and maybe 0:04:48.120 --> 0:04:51.800 now these at A valuous vaccines. Uh. They definitely have 0:04:51.960 --> 0:04:55.599 an incredibly important role and I can't wait to get mine. 0:04:56.000 --> 0:04:58.039 So you know, first we have to put out this 0:04:58.200 --> 0:05:02.880 fire and then we can go to more durable solutions. 0:05:02.880 --> 0:05:04.840 So and forgive me, I just want to go back 0:05:04.880 --> 0:05:07.839 to because I know and just reading in before you 0:05:07.880 --> 0:05:09.440 are coming on, and I know you are working on 0:05:09.440 --> 0:05:12.560 the vaccine, But what about this skin test, because it 0:05:12.600 --> 0:05:15.360 does seem like investors are very enthusiastic. Are they wrong 0:05:15.440 --> 0:05:18.159 to be so enthusiastic about that and not focus on 0:05:18.240 --> 0:05:22.760 the vaccine instead? The skin tests is very important. I 0:05:22.920 --> 0:05:25.760 was mentioning the vaccine because it tells a little bit 0:05:25.760 --> 0:05:27.960 of this story about how we got to the skin test. 0:05:28.400 --> 0:05:31.279 But the skin test is very important because we really 0:05:31.320 --> 0:05:35.400 don't know how many people have immunity and we can't 0:05:35.520 --> 0:05:38.800 measure it. So there are many cases, for example, where 0:05:39.200 --> 0:05:42.120 there's a husband or wife and one of the spouse 0:05:42.120 --> 0:05:46.720 who gets infected the other cares for them, but for example, 0:05:46.760 --> 0:05:50.919 the caregiver frequently doesn't get sick, doesn't develop antibodies, etcetera. 0:05:51.400 --> 0:05:55.480 We believe that a number of these cases actually T 0:05:55.680 --> 0:06:00.880 cell immunity develops without antibodies. There it's now known by 0:06:00.960 --> 0:06:05.320 much more complicated laboratory techniques that T cell immunity is 0:06:05.400 --> 0:06:10.240 protective of developing serious disease. So we just think this 0:06:10.560 --> 0:06:13.039 skin test is important, and we think the excitement is 0:06:13.120 --> 0:06:17.279 justified because we would really get a better handle on 0:06:17.320 --> 0:06:20.880 how much T cell immunity is in the population. We're 0:06:20.880 --> 0:06:23.320 going to be in human trials with both of them, 0:06:23.400 --> 0:06:26.040 we believe this year. But I think in terms of, 0:06:26.800 --> 0:06:32.880 you know, getting out beyond trials hopefully, Tim's got to say, 0:06:32.920 --> 0:06:35.000 it feels like a long time away, at least right now, 0:06:35.360 --> 0:06:37.200 and it is. They're also a reminder that we're gonna 0:06:37.240 --> 0:06:39.760 ultimately need multiple vaccines to get ahead of all of this. 0:06:40.040 --> 0:06:42.719 That was Tonics Pharmaceuticals co founder, CEO and chairman Dr 0:06:42.800 --> 0:06:45.360 Seth Ledderman. Coming up. Also in the news this week, 0:06:45.760 --> 0:06:49.719 Coco Bitcoin. We check in with a former banking regulator 0:06:49.760 --> 0:06:52.880 who's not a fan. You're listening to Bloomberg Business Week 0:06:52.960 --> 0:07:03.680 this is Bloomberg. This is Bloomberg Business Week with Carol 0:07:03.760 --> 0:07:08.080 Masser and Bloomberg Quick Takes. Tim Stillavan from Bloomberg Radio. 0:07:09.480 --> 0:07:13.160 Another big story this week bitcoin and cryptocurrencies. Bitcoin jumping 0:07:13.160 --> 0:07:15.120 to a record high after a MasterCard and Make of 0:07:15.160 --> 0:07:17.080 New York mill and moved to make it easier for 0:07:17.120 --> 0:07:21.560 customers to use cryptocurrencies. Felt like the global corporate community, 0:07:21.640 --> 0:07:23.480 Tim was all of a sudden weighing in on bitcoin 0:07:23.560 --> 0:07:26.360 and cryptocurrencies. Yeah, did it really felt like Monday morning 0:07:26.440 --> 0:07:28.520 was a turning point. It's when we learned from a 0:07:28.560 --> 0:07:31.400 Tesla regulatory filing that the company would hold one point 0:07:31.440 --> 0:07:33.960 five billion dollars of the cryptocurrency on its balance sheet. 0:07:34.320 --> 0:07:37.240 Also in crypto news, Elon Musk saying that he quote 0:07:37.480 --> 0:07:40.920 bought some doge coin for lile x. That's his son, 0:07:41.280 --> 0:07:43.360 right it is? And I gotta say to the water 0:07:43.400 --> 0:07:47.200 Bloomberg Galaxy Crypto index touching a record as well. Everyone 0:07:47.280 --> 0:07:50.880 everyone talking about crypto this week, although Tim, I kind 0:07:50.880 --> 0:07:53.600 of say not everybody is a fan. Yeah. Bank of 0:07:53.640 --> 0:07:57.640 Canada said that cryptocurrency boom is speculative mania. And Carol, 0:07:57.640 --> 0:07:59.520 you caught up with Sheila Bear, former head of the 0:07:59.560 --> 0:08:01.640 fdi see, who was there during the two thousand eight 0:08:01.600 --> 0:08:04.920 Finefel crisis along with Bloomberg News Wall Street recorder Shanali 0:08:05.000 --> 0:08:08.520 boss Sheilabert doesn't see bitcoin replacing the dollar at least 0:08:08.560 --> 0:08:12.960 anytime soon. First, let me say I'm expressing my individual views. 0:08:13.040 --> 0:08:15.560 I'm not speaking for any any companies have affiliated with 0:08:15.760 --> 0:08:19.200 and uh, you know, I think, Look, I don't I 0:08:19.200 --> 0:08:21.440 don't give a financial advice. I can tell you my 0:08:21.640 --> 0:08:24.920 personal uh bilosophy on this is that you know, stay 0:08:24.960 --> 0:08:28.120 away from it. It's it's volatile. Uh, it's a nose 0:08:28.200 --> 0:08:32.400 lead levels. Now we don't know how sustainable that is. Uh. 0:08:32.400 --> 0:08:34.600 You know, if if you're a very wealthy person with 0:08:34.640 --> 0:08:37.880 some some money to risk, fine, But now I don't 0:08:37.880 --> 0:08:41.280 have a lot of confidence in it. I mean the 0:08:41.320 --> 0:08:43.480 problem bitcoin is it is so volatile, right, So it's 0:08:43.480 --> 0:08:46.640 original promises a as a method of payment. Really it's 0:08:46.720 --> 0:08:50.280 volatility gets in the way of its usefulness as a 0:08:50.320 --> 0:08:52.040 method of payment. I mean there's some if you're if 0:08:52.080 --> 0:08:54.760 you're buying a very expensive car, maybe you know, I 0:08:54.760 --> 0:08:58.160 guess that's the idea of test lab. But I'm skeptical. 0:08:58.360 --> 0:09:02.120 I've always been more interest to the technology that underpins 0:09:02.440 --> 0:09:07.199 bitcoint as opposed to the bitcoin itself. I think blockchain 0:09:07.240 --> 0:09:11.320 distributed ledger technology has a whole host of use cases 0:09:11.400 --> 0:09:14.520 that can make our financial system much more inclusive, much 0:09:14.559 --> 0:09:18.040 more efficient, um well less costly. Uh. And so that's 0:09:18.200 --> 0:09:19.959 that's where I think people should be focusing in terms 0:09:20.000 --> 0:09:24.240 of finding real value about that for a second, more specifically, 0:09:24.480 --> 0:09:26.600 I was very surprised to hear you say that about bitcoin, 0:09:26.640 --> 0:09:29.320 because I have heard you talk about how digital currency 0:09:29.360 --> 0:09:32.400 could have done more during this pandemic to get money 0:09:32.440 --> 0:09:35.920 to people who needed it. How far the way do 0:09:35.960 --> 0:09:39.559 you think our financial system is from that? Actually that 0:09:39.679 --> 0:09:43.720 sort of thing actually happening, right, So I was speaking. So, 0:09:43.720 --> 0:09:47.319 there are lots of different cryptocurrencies. Bitcoin is the granddaddy 0:09:47.360 --> 0:09:49.679 of them all. Uh. It's a lot of hype around 0:09:49.720 --> 0:09:52.640 a lot of nostalgia, a lot of romance around it. 0:09:52.720 --> 0:09:55.400 But when I spoke of I was talking about stable coins. 0:09:55.440 --> 0:09:59.160 There are a cryptocurrency that is that is tied to 0:09:59.280 --> 0:10:02.320 the dollar. Disclosure. I'm on the board of a company 0:10:02.320 --> 0:10:05.120 that that offers a stable coin that that is like that. 0:10:05.200 --> 0:10:07.960 It's a dollar for dollar collateralized. You give a dollar 0:10:08.040 --> 0:10:10.520 to the company, it goes into an f d I 0:10:10.559 --> 0:10:13.040 c ensured bank account or a short term treasury. You're 0:10:13.080 --> 0:10:17.720 issued a dollar of cryptocurrency representing that that maintains stable 0:10:17.800 --> 0:10:21.880 value because it's fully collateralized and tethered to the fiat 0:10:21.960 --> 0:10:24.880 currency of the US dollar. So if those and there 0:10:24.880 --> 0:10:27.559 are other companies that offer there, there's a possibility that 0:10:27.640 --> 0:10:30.640 fed through a central bank digital COURTNESY could digitize a 0:10:30.679 --> 0:10:33.360 dollar as well. But that's what I was talking about, 0:10:33.360 --> 0:10:36.400 not using bitcoin, but using a crypto version of the 0:10:36.440 --> 0:10:39.480 dollar tethered to the dollar so maintain stable value. That's 0:10:39.480 --> 0:10:42.360 interesting because there's a ton of people out there who 0:10:42.400 --> 0:10:45.440 invest in bitcoin that don't believe in the dollar, that 0:10:45.600 --> 0:10:47.880 don't believe in the current financial system as we have it. 0:10:47.960 --> 0:10:51.920 What would you say to those people? Well, I would 0:10:51.920 --> 0:10:54.280 say I believes in the dollar a lot more than 0:10:54.320 --> 0:10:57.320 I believe in bigcoin and holding value. Uh you know, 0:10:57.480 --> 0:10:59.880 look I I people would know me. Know. I've been 0:10:59.880 --> 0:11:02.880 a critic of the highly aggressive monetary policies we have. 0:11:03.679 --> 0:11:07.160 We have pursuits as a great financial crisis. Uh, it's 0:11:07.160 --> 0:11:10.960 not manifests itself an inflation. We've got an asset inflation. 0:11:10.960 --> 0:11:15.079 It's got some very other unpleasant side effects in terms 0:11:15.080 --> 0:11:19.600 of the build up of leverage, uh, inflated financial asset values. 0:11:19.800 --> 0:11:22.240 So I you know, I'm not in love with the 0:11:22.360 --> 0:11:26.000 with the monastery highlight commodated monetary policies we have pursued. 0:11:26.400 --> 0:11:28.800 But even given that, Yeah, now I would, I would 0:11:28.840 --> 0:11:31.000 have a lot more confidence Santigolo than I would in 0:11:31.120 --> 0:11:35.520 big coin. Again, it's speculative, it is volatile. Uh, understand it, 0:11:35.880 --> 0:11:38.080 don't you know, buy it unless you can, you know, 0:11:38.559 --> 0:11:41.439 withstand significant losses because it goes up. But it goes 0:11:41.480 --> 0:11:44.920 down to what about other countries? Right? We know China's 0:11:45.000 --> 0:11:48.800 racing to do a digital currency. If the US doesn't 0:11:48.800 --> 0:11:51.960 catch up, what's at risk for US here? Well, that's 0:11:52.000 --> 0:11:55.840 a good point. And again, the China's central bank currency 0:11:55.960 --> 0:11:57.640 is tied to the r m B. It's tied to 0:11:57.720 --> 0:12:00.680 their own fiat currency, so they're or not. They're not 0:12:00.760 --> 0:12:04.960 using bitcoin to do this, They're using a cryptographic version 0:12:05.000 --> 0:12:08.679 of their own. There are the R and B. So yeah, 0:12:08.760 --> 0:12:13.000 and I think most observers think that part of the well, 0:12:13.040 --> 0:12:17.160 there's some privacy issues around the China's use of cryptocurrency, 0:12:17.200 --> 0:12:19.160 because you can so the goodness and the badness. You 0:12:19.240 --> 0:12:22.640 can really you've got a you know, a very clean 0:12:23.280 --> 0:12:26.960 trail of transactions. So there's privacy issues around that that 0:12:27.040 --> 0:12:29.040 may be good if for law enforcement purposes, it may 0:12:29.080 --> 0:12:34.319 be bad for privacy, but but also yeah, I think 0:12:34.320 --> 0:12:36.840 a lot of observers think China wants to become the 0:12:36.880 --> 0:12:40.840 reserve currency, eventually the world's reserve currency. And if you have, 0:12:41.200 --> 0:12:45.239 if you have, if you have digitized your own fiat currency, 0:12:45.480 --> 0:12:48.439 going into these developing countries where they're already heavily involved, 0:12:48.440 --> 0:12:50.959 they have unstable currencies, it's very easy to get those 0:12:50.960 --> 0:12:54.240 countries to adopt the digital version of your own fiat currency. 0:12:54.520 --> 0:12:56.640 Something we wanted to ask you about Chila is we 0:12:56.720 --> 0:13:00.000 heard from FED Chief J. Powell. He said, workers, small, 0:13:00.000 --> 0:13:03.240 all businesses, they still need continued support. You have been 0:13:03.320 --> 0:13:06.240 very vocal about wealth inequality and the need for many 0:13:06.320 --> 0:13:09.880 US families to build financial security. Um, what do we 0:13:09.920 --> 0:13:12.720 need to make sure with this latest COVID relief package? 0:13:14.320 --> 0:13:16.840 All right, Well, I think it's it's right to focus 0:13:16.920 --> 0:13:20.199 on household payments, and people of good will can say 0:13:20.280 --> 0:13:23.320 it was a fifty thousand, seventy five thousand, uh, but 0:13:23.520 --> 0:13:26.960 I think they need to be sizeable payments and that 0:13:27.040 --> 0:13:29.600 needs you know they're using fiscal policy. Who can get 0:13:29.600 --> 0:13:33.240 the money directly into into household budgets where it can 0:13:33.280 --> 0:13:35.000 be saved, It could be used to pay down debt, 0:13:35.080 --> 0:13:37.440 or could be used to spent. Any of those are 0:13:37.480 --> 0:13:41.760 good uses of money. UM. You know, the wealth inequality 0:13:42.240 --> 0:13:45.160 since the Great Financial Crisis really has gotten much much worse. 0:13:46.040 --> 0:13:49.840 Low bit of income of families UM have been saving more, 0:13:50.040 --> 0:13:52.839 but there's still their ability to build wealth has paid 0:13:52.840 --> 0:13:55.640 in comparison to the three top issial on the society 0:13:55.640 --> 0:13:59.240 which has benefited so highly from the monetary policy we're 0:13:59.240 --> 0:14:02.959 talking about earlier and inflating financial last note, so they 0:14:02.960 --> 0:14:06.120 need more financial security. So if the money saved, that's 0:14:06.120 --> 0:14:08.600 a good thing too. If it gives them more financial security, 0:14:08.679 --> 0:14:11.680 they spend it. That helps the economy. So I think 0:14:11.720 --> 0:14:14.280 that should first and form must be the top priority. 0:14:14.440 --> 0:14:19.880 Continued supplemental unemployment benefits again, a direct household support is important. UM. 0:14:20.280 --> 0:14:23.560 I think the uh those are how I prioritize it. 0:14:23.720 --> 0:14:26.960 There's controversy around to help state local governments. We have 0:14:27.080 --> 0:14:29.480 definitely seen that to be the case. That was former 0:14:29.560 --> 0:14:31.440 head of the fdi C. She lived there along with 0:14:31.520 --> 0:14:34.880 Bloomberg News Wall Street reporter Shinali Bassik. The full conversation 0:14:34.880 --> 0:14:37.320 can be found on our podcast feed at Bloomberg dot com. 0:14:37.600 --> 0:14:41.000 She'll addressed the responsibility that banks have to minority communities. 0:14:41.240 --> 0:14:43.840 Next hour, we'll hear more about that with the founder 0:14:43.880 --> 0:14:46.120 and CEO of Runway, which is looking to close the 0:14:46.160 --> 0:14:48.760 racial wealth gap for good, and Tim speaking of race 0:14:48.800 --> 0:14:52.800 and culture still ahead in roads towards inclusivity. We're going 0:14:52.840 --> 0:14:55.400 to check in with the Mattel's CEO on creating culturally 0:14:55.440 --> 0:14:58.040 relevant toys. That and an update on the company's strong, 0:14:58.160 --> 0:15:04.160 really strong fourth Warner is Bloomberg. This is Bloomberg Business 0:15:04.200 --> 0:15:07.960 Week with Carol Masser and Bloomberg Quick Takes Tim Steinovy 0:15:08.360 --> 0:15:12.000 from Bloomberg Radio. So, Tim, quarterly earning season in the US, Yeah, 0:15:12.000 --> 0:15:14.200 it's largely over. We still heard though, from some well 0:15:14.240 --> 0:15:17.440 known companies and big brands throughout the week. One in particular, 0:15:17.440 --> 0:15:20.560 Mattel they had a really, really strong fourth quarter. Yeah. 0:15:20.600 --> 0:15:23.280 You know, we hear a lot about trends during the pandemic, 0:15:23.320 --> 0:15:25.280 but nothing more puts a smile on my face than 0:15:25.320 --> 0:15:28.080 the image of grandparents and parents buying their kids toys 0:15:28.160 --> 0:15:30.840 because they're they're stuck inside and they want their kids 0:15:30.840 --> 0:15:32.320 to be able to do stuff. That was kind of 0:15:32.320 --> 0:15:36.520 an interesting storyline at Yeah, exactly and the toymaker specifically 0:15:36.520 --> 0:15:39.640 Mattel surpassing Alice estimates during that fourth quarter, they had 0:15:39.680 --> 0:15:43.520 its best performance in years. Listen, e commerce was up, 0:15:43.600 --> 0:15:46.440 dolls and more really leading the way at the company. Well, Carol, 0:15:46.480 --> 0:15:49.080 you caught up with Mattel chairman and CEO E Non Cries. 0:15:49.240 --> 0:15:50.760 That's right, and we kicked it off with talking about 0:15:50.800 --> 0:15:54.000 the company's performance. This was an exceptional quarter for Mattel 0:15:54.560 --> 0:15:58.240 without best performance and years, really driven by strong consumer 0:15:58.320 --> 0:16:01.640 demands and another mile stool year for the company. For 0:16:02.080 --> 0:16:05.160 the second quarter in a row, we achieved double digit 0:16:05.200 --> 0:16:08.760 sales growth, outpaced the industry, and gained share on a 0:16:08.760 --> 0:16:12.920 global basis. You know, our results really exceeded expectation on 0:16:12.920 --> 0:16:15.880 on pretty much across the board, with the highest fourth 0:16:15.960 --> 0:16:19.680 quarter growth in fifteen years and a significant increase in 0:16:19.720 --> 0:16:22.960 profitability with fullier operating income that was twoing a half 0:16:23.400 --> 0:16:27.960 times higher than last year. But this is not just 0:16:28.080 --> 0:16:31.400 about the quarter or the year. It's about a multi 0:16:31.480 --> 0:16:35.640 year ten around that is tracking very well, which puts 0:16:35.720 --> 0:16:38.720 us in a strong position to continue to increase profitability 0:16:39.200 --> 0:16:43.720 and accelerate growth in one and beyond. You know, talk 0:16:43.760 --> 0:16:45.720 to us about that because you know, reading through some 0:16:45.760 --> 0:16:49.560 of the research and uh, there are you know folks saying, well, listen, 0:16:49.600 --> 0:16:52.680 it's really because of the pandemic. Families our home, they've 0:16:52.680 --> 0:16:57.480 had a fine different ways to spend time with their families, games, 0:16:57.520 --> 0:16:59.560 you name it, and kids, you know, being at home 0:17:00.040 --> 0:17:02.880 that parents are spending a lot more on toys. Talk 0:17:02.920 --> 0:17:04.960 to us a little bit about what you have been 0:17:05.000 --> 0:17:07.320 doing and your team have been doing at Mattel to 0:17:07.400 --> 0:17:09.159 really kind of juice some of the brands that have 0:17:09.200 --> 0:17:11.560 been you know, that have been in your portfolio for 0:17:11.560 --> 0:17:15.200 for a long time. You know, there's no question that COVID, 0:17:15.720 --> 0:17:19.960 the COVID lockdown drove strong demand for toys. Uh, and 0:17:20.440 --> 0:17:24.360 the year ended up seeing extraordinary growth for the industry. 0:17:25.040 --> 0:17:27.720 You know, the toy industry proved its resilience, is that 0:17:27.760 --> 0:17:31.439 it's a strategic category for retailers, and it highlighted the 0:17:31.480 --> 0:17:35.399 importance of play. But the demand driven by COVID, however, 0:17:35.720 --> 0:17:39.320 is difficult to quantify, as the industry was projected to 0:17:39.320 --> 0:17:42.920 grow even before the pandemic, and we've believed that much 0:17:42.960 --> 0:17:46.760 of our overall performance has been driven by the work 0:17:46.800 --> 0:17:50.040 of our organization and by the strength of our brands 0:17:50.080 --> 0:17:53.680 and quality of our products. We didn't just right the wave. 0:17:54.000 --> 0:17:57.000 We outpaced the industry and gain share on a global 0:17:57.040 --> 0:18:00.399 basis in the third quarter, the fourth quarter and the 0:18:00.440 --> 0:18:03.600 full year. In the US, our growth rate in the 0:18:03.640 --> 0:18:07.240 fourth quarter was one point three times higher than the industry. 0:18:07.520 --> 0:18:12.120 In Europe we grew five times more than the industry, 0:18:12.119 --> 0:18:14.840 and in Latin America we continue to gain share in 0:18:14.880 --> 0:18:17.159 the quarter and for the full year. So you know, 0:18:17.240 --> 0:18:20.000 we re lived the categories where we are a global leader. 0:18:21.200 --> 0:18:23.480 Vehicles and infant of the pre school will continue to 0:18:23.480 --> 0:18:27.440 perform well, and we expect to accelerate the growth and 0:18:27.520 --> 0:18:29.960 increase overall share. We'll talk to me about some of 0:18:29.960 --> 0:18:32.280 the brands. Listen, I have grown up with Mattel. I'm 0:18:32.280 --> 0:18:36.359 from a large family, you know. Inheriting my older sisters, 0:18:36.440 --> 0:18:39.119 Barbies was a big thing. And then I've got a 0:18:39.160 --> 0:18:42.600 seventeen year old where I've Bitty Baby Kit, Marie Grace. 0:18:42.720 --> 0:18:46.639 These were all throughout my home. Um, so tell me 0:18:46.680 --> 0:18:48.080 a little bit about some of the brands. Talk to 0:18:48.119 --> 0:18:51.040 me about Barbie, Talk to me about Hot Whales, Talk 0:18:51.119 --> 0:18:54.040 to me about American Girl and then games what what 0:18:54.040 --> 0:18:56.720 what kind of growth have you seen? This was a 0:18:56.840 --> 0:19:01.760 very exciting quarter for all of our ends. Barbie continue 0:19:01.800 --> 0:19:04.679 to go from strength to strength, up eighteen p in 0:19:04.720 --> 0:19:07.880 the quarter and for the year, with retail sales up 0:19:07.920 --> 0:19:12.879 more than thirty Bobbie ended up being the overall number 0:19:12.880 --> 0:19:16.240 one toy property globally for the industry both in the 0:19:16.280 --> 0:19:19.840 fourth quarter and full year. The Barbie Dreamhouse was the 0:19:19.960 --> 0:19:22.120 number one toy in the US in the fourth quarter 0:19:22.200 --> 0:19:24.680 and the full year. Had one of those in my house. 0:19:24.760 --> 0:19:26.320 I had one of those in my house a year, 0:19:27.320 --> 0:19:30.400 so you know exactly what I'm talking about. Yeah, yeah, 0:19:30.440 --> 0:19:33.320 So it's been really you know, an incredible monta year 0:19:33.400 --> 0:19:37.280 journey for Barbie, um carrying the flag for diversity and 0:19:37.280 --> 0:19:41.440 plusivity and purposeful play. But you know what what is um, 0:19:41.520 --> 0:19:44.440 what is interesting is that you know, without taking anything 0:19:44.440 --> 0:19:48.520 away from the incredible success of Barbie, this is you know, 0:19:48.880 --> 0:19:52.240 very much a story about the matel playbook because the 0:19:52.280 --> 0:19:57.000 Barbie success is driven by the same methodology, same capabilities, uh, 0:19:57.119 --> 0:20:01.639 same approach um that we is that we applied across 0:20:01.640 --> 0:20:07.520 our entire product offering meaning about brand. So it's about brand, purpose, design, 0:20:07.600 --> 0:20:12.960 lead innovation, cultural relevance, and execution of accident. You know, Tim, 0:20:12.960 --> 0:20:16.200 we're definitely seeing and hearing a lot more companies listening 0:20:16.400 --> 0:20:18.919 to consumers in the broader society about what's going on 0:20:18.960 --> 0:20:21.800 and staying relevant and trying to be much more culturally 0:20:21.840 --> 0:20:24.359 sensitive when it comes to their products. That was Mattel 0:20:24.560 --> 0:20:27.560 chairman and CEO E Non cries. You're listening to Bloomberg 0:20:27.600 --> 0:20:31.120 Business Week. Up next to explanate the boarding process, We're 0:20:31.119 --> 0:20:32.480 going to ask that you please step out of the 0:20:32.520 --> 0:20:35.720 alb once you have found your assigned feet abcre on 0:20:35.760 --> 0:20:38.280 your right, d E N upper on the leaf. Well, 0:20:38.320 --> 0:20:40.399 so many of us can't wait to hear that sound again. 0:20:40.480 --> 0:20:43.440 And when will we be regularly hopping on planes? We'll 0:20:43.520 --> 0:20:47.320 check in with Tree Bago CEO Axel Heifer. This is Bloomberg. 0:20:58.960 --> 0:21:02.359 This is bloom Bird Business Week with Carol Measure and 0:21:02.440 --> 0:21:08.320 Bloomberg Quick Takes. Tim Stillavan from Bloomberg Radio Traveling. Tim, Uh, 0:21:08.440 --> 0:21:09.840 what's the last time you got on a plane for 0:21:09.840 --> 0:21:12.320 a vacation. I know exactly when because I've been thinking 0:21:12.359 --> 0:21:14.320 about it a lot. I went skiing at the end 0:21:14.359 --> 0:21:17.119 of February early March last year, and that was the 0:21:17.200 --> 0:21:20.320 last time I went on a vacation. It's a long time, 0:21:20.359 --> 0:21:22.520 I know. I think I traveled around the Super Bowl. 0:21:22.600 --> 0:21:25.080 We had a remote for work. Uh and so it's 0:21:25.080 --> 0:21:27.920 been a really, really long time. And that doesn't count, Carol, 0:21:27.960 --> 0:21:29.880 you were working. Even if it was the Super Bowl, 0:21:29.880 --> 0:21:32.000 that's not a vacation. No. It was a lot of fun. 0:21:32.040 --> 0:21:33.560 It was Florida, it was warm, it was a lot 0:21:33.600 --> 0:21:36.320 of fun. And we've got a story this week to um. 0:21:36.359 --> 0:21:37.800 You know, we're all wondering about when it kind of 0:21:37.800 --> 0:21:41.240 gets back to quote unquote normal. The Biden administration, they 0:21:41.359 --> 0:21:45.400 are considering whether to impose domestic travel restrictions, including on Florida. 0:21:45.400 --> 0:21:48.280 I mean, they're worried about the coronavirus mutations threatening to 0:21:48.320 --> 0:21:50.800 reverse all the progress that we've made on the pandemic. 0:21:51.000 --> 0:21:53.560 The travel industry hit hard. We've talked with him many 0:21:53.600 --> 0:21:56.200 times throughout the health crisis, giving us a great frontline 0:21:56.280 --> 0:21:59.640 view of what's happening or not happening in the travel industry. 0:22:00.080 --> 0:22:03.639 Axel Heafer is CEO of the online travel platform tree Vago. 0:22:04.080 --> 0:22:07.600 I mean that the times are still pretty difficult um 0:22:07.680 --> 0:22:10.280 for travel obviously, but then for for all of us 0:22:10.280 --> 0:22:13.840 with all the restrictions around the world. On the other hand, UM, 0:22:13.880 --> 0:22:15.879 I do think that there is is clear hope and 0:22:15.920 --> 0:22:18.600 there is a clear path to UM to return to 0:22:18.640 --> 0:22:20.679 a more normal life. And the second half of the 0:22:20.760 --> 0:22:25.520 year with some countries being very successful in vaccinating very 0:22:25.600 --> 0:22:32.000 quickly UM and more and more vaccination production capacity coming online. 0:22:32.040 --> 0:22:35.359