WEBVTT - Bloomberg Businessweek Weekend-April 3, 2021 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news as it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.440 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.560 --> 0:00:24.800 edition of Bloomberg Business Week. It's week fifty five. Still 0:00:24.840 --> 0:00:27.360 working from home for many in our world. Tim, it 0:00:27.480 --> 0:00:29.159 was a short and trading week, but one with a 0:00:29.240 --> 0:00:32.919 blockbuster story about a block trade blowout. Yeah, an absolutely 0:00:33.000 --> 0:00:34.640 huge story. And Carol, I gotta say, each time I 0:00:34.640 --> 0:00:37.560 hear you take off that number fifty next week it'll 0:00:37.600 --> 0:00:39.840 be fifty six. I wonder just how many more weeks 0:00:39.840 --> 0:00:41.640 we are going to be working from home. I have 0:00:41.800 --> 0:00:43.839 no idea, but one thing I can tell you is 0:00:43.880 --> 0:00:47.080 that there are some worries about a fourth COVID wave 0:00:47.280 --> 0:00:49.800 in the US. This coming as we get conflicting data, 0:00:49.880 --> 0:00:53.120 vaccines rolling out big time at the same time we're 0:00:53.120 --> 0:00:55.720 seeing hospitalizations go up in some areas. We are, indeed, 0:00:55.760 --> 0:00:57.960 just like you say, we're losing count of how many weeks. 0:00:57.960 --> 0:01:00.360 I'm losing account of how many waves. We've got both 0:01:00.360 --> 0:01:02.240 of those stories covered. We're going to talk about the 0:01:02.280 --> 0:01:04.920 virus the impact on how we work. We're also going 0:01:04.959 --> 0:01:07.160 to talk about that block trade blow up, plus a 0:01:07.200 --> 0:01:10.240 tale of two fast food restaurants on an iconic brand 0:01:10.280 --> 0:01:12.840 that's been around for seventy years, Tim the other just 0:01:12.959 --> 0:01:15.280 around for a decade, but just long enough to catch 0:01:15.280 --> 0:01:18.039 the attention of Lebron James. We'll hear from both the 0:01:18.040 --> 0:01:20.280 CEO of Jack in the Box, Darren Harris, as well 0:01:20.319 --> 0:01:23.360 as Blaze Pizza president Mandy Shaw. But we begin with 0:01:23.360 --> 0:01:26.480 a story in the magazine this week, President Biden saying 0:01:26.520 --> 0:01:29.320 that US adults will be eligible to get a COVID 0:01:29.400 --> 0:01:32.480 nineteen shot by April nineteen, and nine of the nation 0:01:32.520 --> 0:01:36.240 will live within five miles of vaccination site. Weiser also 0:01:36.319 --> 0:01:39.840 saying that the COVID nineteen vaccine is effective in a 0:01:39.959 --> 0:01:43.280 study of children ages twelve to fifteen. But Carol, we 0:01:43.360 --> 0:01:46.959 know at the same time cases still rising again, definitely troubling. 0:01:47.120 --> 0:01:48.920 So with that in mind, one story in the magazine 0:01:48.920 --> 0:01:52.160 caught our attention. It's about Mark's COVID pill and how 0:01:52.160 --> 0:01:54.400 it would give doctors an important new treatment and a 0:01:54.400 --> 0:01:58.000 weapon against coronaviruses and future pandemics. The reporter on it 0:01:58.040 --> 0:02:01.480 Bloomberg News US healthcare reporter Ryle Griffin, who joined us 0:02:01.520 --> 0:02:04.480 along with Bloomberg Business Week editor Joe Webber. There's this 0:02:04.600 --> 0:02:07.520 little pill that Mark has been developing. It's one of 0:02:07.840 --> 0:02:13.040 several hundred different varieties of treatments that are basically underway 0:02:13.160 --> 0:02:15.880 right now. But based on on the reporting, we think 0:02:16.000 --> 0:02:19.520 Marks is maybe closest to some data which could be 0:02:19.600 --> 0:02:22.880 forthcoming within amount of days, and that will really give 0:02:22.960 --> 0:02:26.600 us a look at UM. What we all hope is 0:02:26.720 --> 0:02:30.639 another chapter in this fight against COVID which would start 0:02:30.680 --> 0:02:32.680 to look like treatment, something that you could give someone 0:02:33.120 --> 0:02:36.280 when they get sick. UM. That's different than the vaccine. 0:02:36.320 --> 0:02:38.960 Obviously we need the vaccines too, but what happens if 0:02:39.000 --> 0:02:44.000 someone has a vaccine, is vaccinated and get sick or 0:02:44.120 --> 0:02:46.640 for all of those people out there who might not 0:02:46.760 --> 0:02:50.080 have a vaccine, and that's where this Mark development comes in. 0:02:50.200 --> 0:02:52.799 So so Riley talk to us a little bit about 0:02:52.840 --> 0:02:55.519 what an anti viral. With the promise of an anti 0:02:55.600 --> 0:02:59.280 viral like this, hundreds of thousands of people continue to 0:02:59.320 --> 0:03:02.080 contract COVID each and every day, so we need those 0:03:02.120 --> 0:03:05.600 therapies UM to get to patients quickly at the beginning 0:03:05.639 --> 0:03:08.840 of their disease. Cynthia, my colleague and I like to 0:03:08.880 --> 0:03:11.880 bring this as TAMA fluper covid, something that could be 0:03:12.240 --> 0:03:16.640 deployed broadly to your sister, your grandparents, Those high risks, 0:03:16.680 --> 0:03:20.160 those low risks at the earliest course of their disease. 0:03:20.480 --> 0:03:22.760 As you said, there are hundreds of anti virals in 0:03:22.800 --> 0:03:26.480 development two D fifty about so to speak, UM, and 0:03:26.600 --> 0:03:30.440 viruses are really uniquely difficult to attack with drugs. I 0:03:30.520 --> 0:03:33.200 don't think we you know in the press speak enough 0:03:33.240 --> 0:03:38.320 about the complexity of developing therapeutics. These viruses hijack human 0:03:38.480 --> 0:03:41.840 cells and set up machinery to turn out copies of 0:03:41.880 --> 0:03:45.400 themselves within the body, which creates a real challenge. How 0:03:45.400 --> 0:03:48.680 do you destroy the virus without harming those cells? And 0:03:48.800 --> 0:03:51.920 success when it comes can be quite fleeting, because, as 0:03:52.200 --> 0:03:56.040 we've already seen, viruses mutape to survive. So Mark is 0:03:56.200 --> 0:03:58.640 the leader of the pack. We could see data before 0:03:58.680 --> 0:04:01.160 the end of the month. Um, should it prove safe 0:04:01.160 --> 0:04:04.280 and effective? Which is a real question. UM, it's likely 0:04:04.360 --> 0:04:06.720 to be that data is likely to be the backbone 0:04:06.760 --> 0:04:09.520 of an emergency use authorization. Here in the US. So 0:04:09.560 --> 0:04:12.040 if it happens for emergency use authorization here in the US, 0:04:12.080 --> 0:04:16.000 and we're at a point where we've been really gotten 0:04:16.200 --> 0:04:18.960 done a good job with becoming vaccinated, does then that 0:04:19.200 --> 0:04:22.600 Does that then mean that this moves into the global 0:04:22.640 --> 0:04:26.480 fight against COVID. Yeah, that's a fabulous question. For one, 0:04:26.520 --> 0:04:28.560 I think there will still be need here. We've got 0:04:28.680 --> 0:04:32.719 a great population that's vaccine hesitant, We've got UM a 0:04:32.760 --> 0:04:36.120 population under the age of sixteen that doesn't have access. 0:04:36.120 --> 0:04:39.960 But globally, this is definitely necessary and compared to some 0:04:40.000 --> 0:04:42.320 of the other tools out there, like the monoclonal an 0:04:42.400 --> 0:04:45.799 embody like gileads RUM does a viere, it's also poised 0:04:45.880 --> 0:04:48.599 to be much cheaper as an alternative. It's not in 0:04:48.960 --> 0:04:52.240 hours long infusion that is required to be given in 0:04:52.360 --> 0:04:56.720 specialized settings. UM. It's what we call a mall molecule, 0:04:56.800 --> 0:05:00.360 which means the manufacturing is much more simple. And Mark 0:05:00.480 --> 0:05:04.040 says it can churn out about ten million courses, which 0:05:04.080 --> 0:05:06.600 is a hundred million pills. You take it twice a 0:05:06.680 --> 0:05:09.960 day for five days UM within the span of this year. 0:05:10.360 --> 0:05:13.400 But in our interviews, Mark also said, and mind you, 0:05:13.640 --> 0:05:17.719 Mark is so global health oriented. They said that they 0:05:17.800 --> 0:05:22.839 want to create licenses that basically allow other manufacturers to 0:05:22.960 --> 0:05:25.920 make this pill to should it prove safe and effective, 0:05:26.400 --> 0:05:32.240 thereby creating greater access worldwide. Well, let's just stick with 0:05:32.320 --> 0:05:35.680 Mirk here, because Murk is very well known for its 0:05:35.720 --> 0:05:41.240 public health work, uh fell short on its vaccine efforts. 0:05:41.720 --> 0:05:44.840 What's that stake here for for Mark when this data 0:05:44.880 --> 0:05:48.839 comes out, Joel, that was a big disappointment earlier in 0:05:48.880 --> 0:05:53.240 the year when Mark two vaccine candidates both showed lackluster 0:05:53.440 --> 0:05:56.280 data in early clinical trials. I think they need a 0:05:56.320 --> 0:05:59.040 big win, not just because they want to put their 0:05:59.080 --> 0:06:01.800 stamp on the pandemic and sure that they can have 0:06:01.800 --> 0:06:05.440 an impact here too. Of course, they're helping manufacture Jane 0:06:05.480 --> 0:06:09.640 Jay's vaccine. But let's think longer term about Mark's business model. 0:06:09.760 --> 0:06:13.400 This is a company that has become highly reliant on 0:06:13.400 --> 0:06:17.960 one product alone key true to a cancer product UM 0:06:18.040 --> 0:06:20.960 that is making up a great chunk of their revenue, 0:06:20.960 --> 0:06:24.800 and investors keep asking what's next in the pipeline. So 0:06:25.160 --> 0:06:27.960 mulnipere of your could partially be that. And I think 0:06:28.000 --> 0:06:31.560 what Mark has said to us UM they're very eager 0:06:31.600 --> 0:06:35.280 to know is whether this has broad spectrum activity, no 0:06:35.279 --> 0:06:37.479 doubt about it. Data so important in all of this. 0:06:37.839 --> 0:06:40.560 That was Bloomberg News US healthcare reporter Riley Griffin, who 0:06:40.640 --> 0:06:43.640 joined us along with Bloomberg Business Week editor Joe weber 0:06:43.760 --> 0:06:46.160 Well coming up virus cases a top the most red 0:06:46.240 --> 0:06:48.640 que on the Bloomberg. So she was reporting about the 0:06:48.760 --> 0:06:52.760 unwinding of highly leveraged trades that led to the implosion 0:06:52.880 --> 0:06:55.160 of one little known family office. I thought it was 0:06:55.200 --> 0:06:57.560 supposed to be a quiet kind of holiday or leading 0:06:57.600 --> 0:06:59.680 up to a holiday weekend. You know how this works. 0:06:59.720 --> 0:07:02.040 I supposed to be a quiet week. It's all but quiet. 0:07:02.440 --> 0:07:04.960 That is so true. You're listening to Bloomberg Business Week. 0:07:05.200 --> 0:07:14.440 This is Bloomberg. This is Bloomberg Business Week with Carol 0:07:14.520 --> 0:07:18.720 Messer and Bloomberg Quick Takes. Tim Stinovik from Bloomberg Radio. 0:07:20.120 --> 0:07:22.200 Remember how we were all obsessed about the Suez Canal 0:07:22.240 --> 0:07:25.040 backup last week? You remember that. Yeah, I'm actually a 0:07:25.040 --> 0:07:27.560 little sad that the ship got unstuck because it was 0:07:27.640 --> 0:07:29.760 such a great story. I mean, not really, but you 0:07:29.800 --> 0:07:31.560 know what I mean. No, but visually it was a 0:07:31.600 --> 0:07:33.880 great story and it just, you know how kind of 0:07:33.920 --> 0:07:36.560 one ship getting blocked just shut down kind of our 0:07:36.560 --> 0:07:38.880 supply chain, our global supply chain. It was such a 0:07:38.880 --> 0:07:41.800 good illustration of how much we rely on global trade 0:07:41.800 --> 0:07:43.960 and just really small areas of the world to get 0:07:44.000 --> 0:07:45.760 us our things well. This week we kind of had 0:07:45.800 --> 0:07:48.720 a replacement. We were similarly focused on a little known 0:07:48.760 --> 0:07:52.200 family office and it's head, Bill Wang, and our Cagos 0:07:52.280 --> 0:07:54.600 Capital Management and what may turn out tim to be 0:07:54.640 --> 0:07:57.280 one of the biggest margin calls of all time. We've 0:07:57.320 --> 0:07:59.720 got two stories on this. First up, what was going 0:07:59.720 --> 0:08:02.520 on the big banks like credit sweezes. This was unfolding 0:08:02.520 --> 0:08:04.840 about a week and a half ago. Here's Bloomberg Business 0:08:04.880 --> 0:08:08.520 Week editor Joe Webber and Bloomberg News Finance reporter Strinadarajan 0:08:08.600 --> 0:08:10.800 Shri among the Bloomberg team that broke this one and 0:08:10.840 --> 0:08:12.800 has kept us up to date on the ongoing story. 0:08:13.040 --> 0:08:15.480 For those who have been dealing with Bill Hung and 0:08:15.560 --> 0:08:19.360 his family office, they were starting to get worried and 0:08:19.520 --> 0:08:21.880 alarmed by the middle of the week as some of 0:08:22.000 --> 0:08:25.960 his big positions were moving in the other direction, and 0:08:26.400 --> 0:08:28.440 very soon by the middle of the week, the banks 0:08:28.480 --> 0:08:31.000 did realize they had a big problem on their hands. 0:08:31.080 --> 0:08:34.520 The risk departments that a number of Wall three banks 0:08:34.800 --> 0:08:38.120 European banks and even Japanese banks were starting to get worried, 0:08:38.320 --> 0:08:41.560 so they all decided to get together in a hastily 0:08:41.640 --> 0:08:44.199 arranged call that included some of the top lawyers from 0:08:44.240 --> 0:08:47.800 all of these firms, also included Bill Hong to find 0:08:48.000 --> 0:08:52.200 a solution, to figure out how to untie and unwind 0:08:52.240 --> 0:08:56.400 these positions in a tidy manner. From our reporting, we 0:08:56.520 --> 0:08:58.760 understand the Sweets in fact, was the one that was 0:08:58.800 --> 0:09:02.959 pushing for this idea to stand still agreement, asking everyone 0:09:03.080 --> 0:09:06.320 to cool down, back off for a little bit, let's 0:09:06.320 --> 0:09:08.320 see how the price action moved and look at it 0:09:08.360 --> 0:09:11.080 again on Monday, because they did not want to see 0:09:11.080 --> 0:09:17.160 an immediate force liquidation. Well, the clearly regional agreement they 0:09:17.200 --> 0:09:20.240 were all in it for themselves by Friday was clear 0:09:20.280 --> 0:09:23.160 because they're all broken rank. And now as we see 0:09:23.200 --> 0:09:26.240 the consequence of that action, we see the big US bank, 0:09:26.320 --> 0:09:31.120 Logostani Government, sax Well Fargo appear to have emerged from 0:09:31.200 --> 0:09:34.120 this largely unscathed. But that is not true for an 0:09:34.200 --> 0:09:36.880 m uf J, which overnight told us that their losses 0:09:36.920 --> 0:09:39.520 could be about three millions. Namura would says that has 0:09:39.559 --> 0:09:42.240 a two billion dollar claim without actually saying what its 0:09:42.360 --> 0:09:45.480 actual hit could be from this and credits, which has 0:09:45.520 --> 0:09:50.520 still not provided a bigger but estimates on that are 0:09:51.000 --> 0:09:55.040 heading into multibillion dollars, and that sort of starts to 0:09:55.120 --> 0:10:00.800 explain Swiss stands on that faithful called last they tree. 0:10:00.840 --> 0:10:04.120 What could have been a tidier way to unwind this? 0:10:04.440 --> 0:10:06.800 You you know, you said the banks were looking for 0:10:06.840 --> 0:10:09.280 a tidier way to do this. But but how could 0:10:09.280 --> 0:10:13.800 these losses have been prevented when the stock started moving lower? No, 0:10:13.960 --> 0:10:16.160 to me're absolutely right. So we're still trying to piece 0:10:16.200 --> 0:10:19.840 together that part of the puzzle. But one possibility very 0:10:19.840 --> 0:10:22.960 well could be instead of the banks moving to says 0:10:22.960 --> 0:10:28.800 collateral and force some sort of liquidation event, perhaps the 0:10:28.880 --> 0:10:32.160 strategy was wait and see if the stock rebounds. Perhaps 0:10:32.200 --> 0:10:35.000 the strategy was asking some of the banks who had 0:10:35.040 --> 0:10:39.079 the potential to demand much more margin to give some 0:10:39.160 --> 0:10:42.560 sort of margin holiday. It isn't clear what the solution 0:10:42.640 --> 0:10:45.400 could have been, but what is clear is for at 0:10:45.480 --> 0:10:48.240 least some of those participants on the call, the idea 0:10:48.320 --> 0:10:52.120 that banks would move into the market by Friday and 0:10:52.200 --> 0:10:55.280 do a rapid fire sale of a number of these 0:10:55.320 --> 0:10:59.400 positions was going to be the worst case outcome. And 0:10:59.480 --> 0:11:03.280 that's what the dealing with now. So Threet, what are 0:11:03.280 --> 0:11:09.360 the big unanswered questions that that remain? What in them? Now? 0:11:09.600 --> 0:11:12.480 The regulators, investors and everyone on the outside is trying 0:11:12.520 --> 0:11:15.720 to make sure is there more to come? Are we 0:11:15.760 --> 0:11:21.320 going to see more blost junkie doc trade happening? That 0:11:21.400 --> 0:11:23.760 was Bloomberg News Finance reporter Street not a Rajon and 0:11:23.840 --> 0:11:26.400 Bloomberg Business Week editor Joe Weber, No doubt about it. 0:11:26.400 --> 0:11:28.480 We need a lot more transparency on this, and I 0:11:28.480 --> 0:11:30.559 think it's something we're going to continue to see lawmakers 0:11:30.559 --> 0:11:33.120 in fact call on Yeah, exactly. All right, Let's get 0:11:33.160 --> 0:11:36.040 to our second story though on this subject. It's about 0:11:36.040 --> 0:11:38.920 the tiger king in his cub. We're talking about legendary 0:11:38.920 --> 0:11:42.079 hedge fund investor Julian Robertson. He's the king, and then 0:11:42.080 --> 0:11:44.640 the cub is the man behind the block trade blow up. 0:11:44.679 --> 0:11:48.000 Bill wang Are Bloomberg News Finance reporter Max Abelson actually 0:11:48.040 --> 0:11:52.040 caught up with Robertson and asked him about his tiger offspring. 0:11:52.360 --> 0:11:54.680 I called him and I said, you know, would you 0:11:54.679 --> 0:11:56.840 mind if I slipped on, you know, the tape of 0:11:56.880 --> 0:11:59.640 quarter and can we talk about this? I know it's unpleasant, 0:11:59.640 --> 0:12:02.360 I mean, and he said, yeah, take it away. I 0:12:02.400 --> 0:12:05.439 did not expect though, I did not expect a kind 0:12:05.480 --> 0:12:11.600 of full throated um defense of of Bill Lang, you know. 0:12:11.679 --> 0:12:13.720 And and when I say defense, what I really mean 0:12:14.320 --> 0:12:16.880 is that just time and again when I when I 0:12:16.960 --> 0:12:22.559 pressed Julian on you know that these monstrously vast losses, 0:12:23.080 --> 0:12:25.880 you know, just over and over again, he said, you know, look, 0:12:25.880 --> 0:12:28.880 we've we've all seen hard times, and you know, I 0:12:28.920 --> 0:12:31.240 don't know what went wrong, but there was a decent 0:12:31.280 --> 0:12:34.840 guy and I hope he bound us back. And you know, honestly, 0:12:34.880 --> 0:12:38.200 he even said that he would still invest with Bill 0:12:38.320 --> 0:12:41.640 um even now. So you know, it's just a I 0:12:41.679 --> 0:12:44.880 don't know if you call that loyalty um or you 0:12:44.960 --> 0:12:48.800 call it faith, but um, Julian Robertson, Um, this famed 0:12:48.800 --> 0:12:52.880 hedge fund billionaire really sort of um staying staying close 0:12:52.920 --> 0:12:55.680 to his to his protege. Yeah, Max, that really stuck 0:12:55.679 --> 0:12:58.280 out to me about your piece, And one other part 0:12:58.320 --> 0:13:02.120 did as well. He's saying repeatedly that this could probably 0:13:02.160 --> 0:13:08.400 happen to anyone. You know, Look, I I as a journalist, 0:13:08.480 --> 0:13:10.679 you know, you need to be open to whatever people 0:13:10.679 --> 0:13:13.000 are saying to you. And you have to let you know, 0:13:13.040 --> 0:13:16.560 a subject um as you both know as his interviewers, 0:13:16.600 --> 0:13:18.960 you know, you have to let people take the microphone 0:13:19.000 --> 0:13:21.040 once you offer to them. But you know also as 0:13:21.080 --> 0:13:24.800 a good objective journalist, you can't sort of, um, you 0:13:24.840 --> 0:13:27.320 can't just sort of let people talk without pressing them. 0:13:27.320 --> 0:13:29.320 So I was, I was really clear to him, you know, 0:13:29.400 --> 0:13:31.680 I said to him, you know, look, this isn't just 0:13:31.760 --> 0:13:34.280 something that happened to Bill Lang. He he he had 0:13:34.320 --> 0:13:38.280 a role in this. He leverage um to get himself 0:13:38.320 --> 0:13:41.640 into what we now know is is a remarkable, remarkable, 0:13:41.640 --> 0:13:44.800 a bount of trouble. And and his direct answer when 0:13:44.800 --> 0:13:47.199 I asked about that was like, you know, well look, 0:13:47.280 --> 0:13:50.680 you know he's he's actually a marvelous person. And he 0:13:50.760 --> 0:13:53.080 basically made it sound like a Greek tragedy. He said, 0:13:53.200 --> 0:13:57.040 he said, it's it's tragic that this that this thing happened. Um, 0:13:57.440 --> 0:13:59.880 you know, he was he was really he described it 0:14:00.000 --> 0:14:03.719 almost on a personal skill. Whereas you know, as financial reporters, 0:14:03.760 --> 0:14:06.840 I think we we ununderstand it as um, you know, 0:14:06.880 --> 0:14:09.680 as something much faster, as something that's shaking markets and 0:14:09.800 --> 0:14:13.120 something that's shaking banks, and something that that is still 0:14:13.200 --> 0:14:16.560 playing out even as the three of us speak. Matt, Max, 0:14:16.600 --> 0:14:19.160 as I was reading through the Q and A that 0:14:19.200 --> 0:14:21.760 you had back and forth with Julian Robertson, I wondered, 0:14:22.080 --> 0:14:25.000 and you talked to big names on Wall Street all 0:14:25.000 --> 0:14:28.320 the time about very difficult subjects. Was there any question 0:14:28.360 --> 0:14:33.120 that he felt a little uncomfortable asking or pushing on? Yes, 0:14:33.200 --> 0:14:35.600 I felt uncomfortable about the whole thing. I mean, that's 0:14:35.680 --> 0:14:38.040 that's how you know that it's potentially a good a 0:14:38.120 --> 0:14:41.880 good interview when you know, I felt really awkward. You know, 0:14:41.920 --> 0:14:45.040 I have a job as a Bloomberg News reporter to 0:14:45.160 --> 0:14:49.600 press him on you know, the facts um of what's 0:14:49.640 --> 0:14:52.720 happened here, and what we know is that you know, 0:14:52.760 --> 0:14:56.400 for example, when you know had to pay like three 0:14:56.480 --> 0:14:59.920 million dollars, that was Bloomberg News Finance reporter Max Abelson. 0:15:00.320 --> 0:15:02.480 Note this story continuing to unfold as we put our 0:15:02.480 --> 0:15:04.560 show to bed. Check out Bloomberg dot com for the 0:15:04.640 --> 0:15:08.480 latest on that still ahead. Managing the pandemic no easy task, 0:15:08.600 --> 0:15:11.240 especially within the restaurant industry. The CEO of Jack in 0:15:11.320 --> 0:15:16.120 the Box. Next, This is Bloomberg Business Week, broadcasting from 0:15:16.120 --> 0:15:19.880 the financial capital of the world. Bloomberg eleven Frio in 0:15:20.000 --> 0:15:24.480 New York to Washington, d C. Bloomberg to Boston Bloomberg 0:15:24.520 --> 0:15:27.680 one oh six one to San Francisco Bloomberg nine sixty 0:15:27.800 --> 0:15:30.640 to the country Sirius XM Chado one nine teen and 0:15:30.680 --> 0:15:34.080 around the globe the Bloomberg Business app and Bloomberg Radio 0:15:34.200 --> 0:15:38.920 dot com. This is Bloomberg Business Week, Jim. This is 0:15:38.960 --> 0:15:41.360 something near and dear to you. We've got a double 0:15:41.400 --> 0:15:43.720 dose of fast food restaurants, that's right, from an older 0:15:43.840 --> 0:15:46.360 established brand to a younger ups start backed by an 0:15:46.480 --> 0:15:50.320 NBA legend. First, the iconic well known brand started seventy 0:15:50.400 --> 0:15:52.560 years ago, Jack in the Box. We are talking about 0:15:52.600 --> 0:15:54.480 that shares that company. Man, They're up in the high 0:15:54.480 --> 0:15:58.000 teens percentage wise this year after a nine game last year. 0:15:58.200 --> 0:16:00.960 The fast food chain recently reported nings first quarter comp 0:16:01.040 --> 0:16:04.240 store sales coming in better than analyst estimates earnings B two. 0:16:04.680 --> 0:16:06.040 And to hear more about the past year and the 0:16:06.080 --> 0:16:07.680 outlook of the business, we caught up at the head 0:16:07.680 --> 0:16:10.080 of the company. That's right. That's Darren Harris, the CEO 0:16:10.160 --> 0:16:12.680 of the San Diego, California based Jack in the Box. 0:16:12.880 --> 0:16:15.400 And it began, like we often do, asking about this 0:16:15.520 --> 0:16:18.880 past pandemic filled year. Definitely an interesting time to join 0:16:19.080 --> 0:16:21.760 a company in the middle of a pandemic, try to 0:16:21.800 --> 0:16:23.880 try to get to know your staff and your team 0:16:23.960 --> 0:16:26.800 and and leave them when you you haven't even met 0:16:26.800 --> 0:16:29.280 the whole team in person for months into the pandemic. 0:16:29.400 --> 0:16:31.880 But you know, our focus was really how do we, 0:16:32.680 --> 0:16:35.040 you know, focus on making sure that our employees and 0:16:35.040 --> 0:16:39.040 our guests were safe. And by being able our ability 0:16:39.080 --> 0:16:41.120 to do that and focusing on that, you were able 0:16:41.160 --> 0:16:45.360 to really drive our off promiss business and enabled product innovation, 0:16:45.400 --> 0:16:47.880 and as you just mentioned, led to our our best 0:16:47.920 --> 0:16:50.240 year in twenty seven years, for our best quarter in 0:16:50.280 --> 0:16:52.640 twenty seven years. So how did you do it? How 0:16:52.640 --> 0:16:55.360 do you How did you ensure that customers are safe? 0:16:55.360 --> 0:16:57.480 How do you ensure that employees are safe? What are 0:16:57.480 --> 0:17:01.080 the changes that you're making to your restaurants. No, definitely, 0:17:01.120 --> 0:17:05.720 we're making a touchless environment. We're always looking for, you know, 0:17:05.920 --> 0:17:10.240 each day, making sure employees health safety checks are happening. 0:17:11.200 --> 0:17:14.199 Even during my training joining the company, I went to 0:17:14.280 --> 0:17:16.959 go to my first training restaurant to go through training 0:17:16.960 --> 0:17:20.320 as any employee would, and we shut the restaurant down 0:17:20.359 --> 0:17:23.280 because of we had one one employee who was quarantined, 0:17:23.960 --> 0:17:26.640 and so, you know, being that diligent about making sure 0:17:26.680 --> 0:17:30.080 that you know, we're taking care of our team members, 0:17:30.160 --> 0:17:32.640 then we can take care of our guests. Hey talked 0:17:32.680 --> 0:17:34.640 to us, if you could, Darren about the mix, because 0:17:34.640 --> 0:17:37.560 from my understanding is before the pandemic, I think drive 0:17:37.600 --> 0:17:41.360 through was about of your sales. Dining and take out 0:17:41.440 --> 0:17:45.840 delivery was about apiece. So giving an idea of how 0:17:45.880 --> 0:17:50.440 that change. What's the update during the pandemic? Yeah, during 0:17:50.440 --> 0:17:55.199 the pandemic about our businesses off permits, okay and um, 0:17:55.280 --> 0:17:59.880 and so substantial change. You know, we're already heavily off 0:18:00.000 --> 0:18:03.240 I must, but during this time it's which pretty dramatically, 0:18:03.920 --> 0:18:06.080 And I just want to make sure I'm understanding the 0:18:06.160 --> 0:18:08.240 verbiage here. When you say off premise, you mean drive through, 0:18:08.280 --> 0:18:12.760 but also is it walk up to? It's also delivery. Yeah, 0:18:12.800 --> 0:18:16.000 it's walk up delivery and uh and drive through? How 0:18:16.040 --> 0:18:18.040 are you? How are you? How have you figured out delivery? 0:18:18.040 --> 0:18:19.199 What's the right way to do it? A lot of 0:18:19.200 --> 0:18:23.080 restaurants are struggling with this right now. Um. You know, 0:18:23.240 --> 0:18:27.440 for us, it's about making sure that we engage our guests. 0:18:27.600 --> 0:18:29.600 We give them opportunities to order in the way that 0:18:29.640 --> 0:18:33.439 they want to order versus online through our app or 0:18:33.480 --> 0:18:37.080 through the third party major delivery providers. So we give 0:18:37.119 --> 0:18:39.240 them access to do that in many different ways and 0:18:39.480 --> 0:18:41.720 try to make it as frictionless as possible. But you 0:18:41.720 --> 0:18:43.639 would rather have them order through your app if you 0:18:43.680 --> 0:18:47.320 had your druthers, right, uh, you know, obviously through our 0:18:47.359 --> 0:18:50.520 app it continues to enable us to build a database 0:18:50.960 --> 0:18:55.359 that we can constantly communicate to our guests and create 0:18:55.400 --> 0:18:57.960 a one on one relationship. So yes, we would. We 0:18:58.000 --> 0:19:00.280 would always enjoy you know, having people and age in 0:19:00.280 --> 0:19:03.080 our app and really focus on being a brand you know, 0:19:03.400 --> 0:19:06.000 brand loyalist. But it does it does it reduce the 0:19:06.040 --> 0:19:08.000 commission that you have to pay third parties in order 0:19:08.040 --> 0:19:11.679 to deliver the actual food. It's it's good for the 0:19:11.880 --> 0:19:13.480 you know, it's good for the guests, and it's good 0:19:13.520 --> 0:19:16.280 for us as well from a margin standpoint because it 0:19:16.359 --> 0:19:19.320 is a lower cost. You know, during during the pandemic 0:19:19.320 --> 0:19:21.040 and early on in my tenure, we did a lot 0:19:21.040 --> 0:19:23.480 of work around understanding our guests why they come to 0:19:23.560 --> 0:19:26.520 us while they leave, and so we've been very focused 0:19:26.520 --> 0:19:29.439 on making sure, you know, we were providing them the 0:19:29.480 --> 0:19:32.560 offers that they want. So as an example, we've we've 0:19:32.560 --> 0:19:36.920 had the benefit of more premium items during the pandemic 0:19:37.000 --> 0:19:40.640 that resonated with our higher income guests, and so it's 0:19:40.720 --> 0:19:45.000 driven incremental sales through really some snackable and crable bottoms 0:19:45.040 --> 0:19:47.679 like our tiny tacos are soft and moated fries, and 0:19:47.720 --> 0:19:51.119 then the innovation with our new Chicken line UM and 0:19:51.160 --> 0:19:53.119 all of those have raised our system wide sales and 0:19:53.200 --> 0:19:58.160 a u V S. Let's talk Chicken and then we'll 0:19:58.160 --> 0:20:02.600 talk to Chicken, and in a volume volume Sorry, can 0:20:02.640 --> 0:20:06.440 we talk Chicken now, because I'm hungry. You've seen a 0:20:06.480 --> 0:20:09.920 huge resurgence in Chicken, especially when it comes to chicken sandwiches. 0:20:10.000 --> 0:20:13.680 How are you guys partaking in the chicken sandwich worse? Yeah, 0:20:13.680 --> 0:20:15.960 So we're we're leaning all in and UM. For us, 0:20:16.359 --> 0:20:18.959 Chicken has been a strong performer, you know, in the 0:20:18.960 --> 0:20:22.200 middle of the pandemic. UM. We'll continue to innovate. We 0:20:22.200 --> 0:20:25.080 we rolled out our clock Chicken sandwich and will continue 0:20:25.119 --> 0:20:28.159 to look at ways to connect with guests to the Chicken. 0:20:28.400 --> 0:20:31.919 We've found that Chicken is less price sensitive, UM, and 0:20:31.960 --> 0:20:35.200 it also allows us to create different flavor profiles that 0:20:36.000 --> 0:20:38.280 really fit the jack in the box of DNA, which 0:20:38.280 --> 0:20:40.639 is one of innovation. Whoever thought the chicken would be 0:20:40.640 --> 0:20:44.879 innovation chicken right now it certainly is. That was Darren Harris, 0:20:44.920 --> 0:20:46.679 the EO of Jack in the Box. You're listening to 0:20:46.680 --> 0:20:50.119 Bloomberg Business Week. Up next, restaurants still on the menu, 0:20:50.400 --> 0:20:52.360 this time from a newer up starts. It's back by 0:20:52.359 --> 0:20:54.960 none other than Lebron James, who was also known as 0:20:55.119 --> 0:20:57.520 Ron in the company's commercial. I love it. We're gonna 0:20:57.520 --> 0:21:00.320 talk with the president of Blaze Pizza. This is bloom Burg. 0:21:08.800 --> 0:21:12.320 You're listening to Bloomberg Business Week with Carol Messer and 0:21:12.440 --> 0:21:17.600 Bloomberg Quick Takes Tim Stinovik from Bloomberg Radio. So Tim 0:21:17.640 --> 0:21:20.000 and I both enjoy Friday pizza nights in our own home. 0:21:20.160 --> 0:21:22.560 Someone who knows a lot about all things pizza is 0:21:22.600 --> 0:21:26.199 the CEO Blaze Pizza, which has restaurants him around the country, 0:21:26.240 --> 0:21:28.600 also in Canada and the Middle East. It also lays 0:21:28.640 --> 0:21:31.520 claim to one a very well known investor and franchise owner, 0:21:31.600 --> 0:21:34.280 Lebron James, which we brought up along with many other 0:21:34.359 --> 0:21:37.280 things when we spoke to Blaze Pizza president and CEO 0:21:37.400 --> 0:21:40.240 Mandy Shaw. Carol, you began by talking about a year 0:21:40.400 --> 0:21:42.920 like no other, a year it feels like it, and 0:21:42.920 --> 0:21:45.520 then it feels like ten years. If you think back 0:21:45.560 --> 0:21:49.240 to that first week of shutdowns when everything is sort 0:21:49.240 --> 0:21:53.440 of solidified, no one knew if this was the apocalypse, right, 0:21:53.600 --> 0:21:55.320 So the first thing that we had to do was 0:21:55.440 --> 0:21:59.919 make sure our franchisees were finantially secured, were franchise organize 0:22:00.000 --> 0:22:04.000 ation uh So, we gave an industry leading release package 0:22:04.080 --> 0:22:06.879 for nine weeks, we coached them on p PP. We 0:22:06.920 --> 0:22:09.879 had individual coaching sessions with franchisees to make sure they 0:22:09.920 --> 0:22:13.639 could get those dollars that as they became available. We 0:22:13.760 --> 0:22:16.359 provided other forms of relief. We got tons of vendor 0:22:16.440 --> 0:22:20.440 donations for hand sanitizer, masked a lot of the things 0:22:20.440 --> 0:22:22.359 that had to go into the restaurant to make sure 0:22:22.440 --> 0:22:25.920 that safety was paramount for our team members as well 0:22:25.920 --> 0:22:29.840 as our guests coming into the restaurant. And then really 0:22:29.880 --> 0:22:33.040 where we deepened what is really important to me anyway 0:22:33.080 --> 0:22:36.560 from a franchise perspective is transparency and communication. We had 0:22:36.640 --> 0:22:40.200 daily calls with our franchise council. We had weekly franchise 0:22:40.280 --> 0:22:42.439 all hand franchise e calls where we said here's what 0:22:42.480 --> 0:22:44.679 we know here's what we don't know. Here's what we're 0:22:44.680 --> 0:22:47.520 gonna tell you next week. Right. And so, if you 0:22:47.520 --> 0:22:50.520 think about the business are dying in. Sales were still 0:22:50.560 --> 0:22:54.960 eighty percent of our top line pre pandemic, and then 0:22:54.960 --> 0:22:57.920 they all just shut off. So we had to what 0:22:58.359 --> 0:23:02.280 I called get gorilla and figure out how we raise 0:23:02.359 --> 0:23:04.960 awareness that we were still open. You could still come 0:23:05.000 --> 0:23:07.399 into a blaze, walk down the line, make your pizza 0:23:07.400 --> 0:23:10.040 and take it out. You just couldn't sit down in 0:23:10.080 --> 0:23:13.240 the restaurant. And you know, we already had delivery with 0:23:13.320 --> 0:23:17.760 two providers UH and other other um like purpose or 0:23:17.880 --> 0:23:21.439 excuse me, carry out and walk out service, but we 0:23:21.520 --> 0:23:24.520 introduced curbside carry out in three weeks time. I just said, 0:23:24.520 --> 0:23:25.919 we gotta get it up. We gotta figure out how 0:23:25.960 --> 0:23:28.119 to do this and move quickly and make it happen. 0:23:28.440 --> 0:23:31.919 We added Uber Eats as our third delivery provider, and 0:23:31.960 --> 0:23:34.800 those were incremental sales UH. And so we just put 0:23:34.840 --> 0:23:37.240 together a lot of programs to make sure that we 0:23:37.240 --> 0:23:40.080 were taking care of our franchises and getting those sales 0:23:40.160 --> 0:23:42.359 back in the door as fast as we possibly could. 0:23:42.600 --> 0:23:45.119 You know, it's interesting, there's a lot of conversations that 0:23:45.160 --> 0:23:49.080 we have had UM with restaurants that you know how 0:23:49.160 --> 0:23:52.280 to digital strategy, perhaps but all of a sudden because 0:23:52.280 --> 0:23:55.399 they had to ramp it up dramatically. Tell me about 0:23:55.440 --> 0:23:58.800 the digitization of your business and how that strategy has 0:23:58.800 --> 0:24:00.920 maybe changed because of the pen amc or or has 0:24:00.960 --> 0:24:06.400 been ramped up. Uh. Ramped up? You called it? What's 0:24:06.400 --> 0:24:10.399 the word you would? You? No? I mean it's we're 0:24:10.480 --> 0:24:15.560 up a hue. We started UM in the summer of nineteen. 0:24:15.920 --> 0:24:18.959 We launched two specialty crusts, the cauliflower crust, and we 0:24:18.960 --> 0:24:21.760 were the first national chain to launch a keto crust 0:24:21.800 --> 0:24:25.240 six grams net carbs and so right on the heels 0:24:25.280 --> 0:24:28.160 of that, we also launched a large pizza, a shareable 0:24:28.359 --> 0:24:31.400 family office space, you know, more like what a legacy 0:24:31.440 --> 0:24:35.360 pizzas looks like. And it delivers better because it's engineered 0:24:35.359 --> 0:24:38.280 to hold heat. And so we had a three sixty 0:24:38.320 --> 0:24:41.159 degree media campaign to build a digital business and it 0:24:41.200 --> 0:24:43.960 was growing. We had an eight point comp swing from 0:24:44.119 --> 0:24:48.000 call it all of figure prior to just before the 0:24:48.000 --> 0:24:51.040 print a pandemic uh, and then it dropped out. So 0:24:52.680 --> 0:24:55.679 from great pain comes great reward at times. What this 0:24:55.760 --> 0:24:58.240 has done for us is build that digital business we 0:24:58.560 --> 0:25:01.080 range week to week from fift due to sixty in 0:25:01.200 --> 0:25:04.439 terms of digital versus dining, and what that means for 0:25:04.560 --> 0:25:07.679 us is greater total top line coming out of the pandemic. 0:25:07.760 --> 0:25:11.400 Might be a slightly painful way to get there, going 0:25:11.440 --> 0:25:12.879 through all the things that we had to do, but 0:25:13.240 --> 0:25:16.919 the mass of people who came to off premise dining. 0:25:17.480 --> 0:25:20.000 You know, I've read some statistics at one point about 0:25:20.359 --> 0:25:22.560 there's a six increase of people over the age of 0:25:22.600 --> 0:25:26.760 fifty adopting app ordering, right delivery, third party delivery, in 0:25:26.800 --> 0:25:28.359 those sorts of things that we saw it in the 0:25:28.480 --> 0:25:31.080 numbers and what these players have been able to accomplish. 0:25:31.600 --> 0:25:33.960 So we got our piece of that, and now as 0:25:34.000 --> 0:25:37.840 we get dining rooms reopened again, we're retaining eight percent 0:25:37.920 --> 0:25:40.240 of that business or so, which means our volumes are 0:25:40.320 --> 0:25:42.280 much higher than they were previously, which again is it 0:25:42.359 --> 0:25:43.719 is a win for the brand. I mean, they kind 0:25:43.720 --> 0:25:45.960 of ask you, what's it like to have Lebron James 0:25:46.960 --> 0:25:51.359 as an investor, as a franchise e, a franchise e owner, 0:25:51.800 --> 0:25:55.280 someone who's actually been a lot of videos, viral videos 0:25:55.520 --> 0:26:00.720 um for Blaze Pizza. What is that like? Uh? One word? Fun? 0:26:01.960 --> 0:26:05.520 So exciting, you know, lebron Is is a great partner 0:26:05.640 --> 0:26:09.800 in that he actually cares and he makes selective choices 0:26:09.840 --> 0:26:12.959 about who he quote gets in bed with right and 0:26:13.040 --> 0:26:16.959 years ago he decided to come to Blaze because of 0:26:17.000 --> 0:26:20.560 our philospy of clean ingredients, better food, better for you, 0:26:20.560 --> 0:26:23.359 you know, a new way to pizza upgrades, and so 0:26:23.680 --> 0:26:27.120 it's it's a rather informal partnership that just really is fun. 0:26:27.160 --> 0:26:30.440 Anything that we offer up to him, like those viral videos, 0:26:30.600 --> 0:26:32.199 he just says, yeah, let's have a good time with 0:26:32.240 --> 0:26:34.560 this and see what we can do. And it's really 0:26:34.600 --> 0:26:38.480 just part of his portfolio and Blaze wins when he wins, 0:26:38.520 --> 0:26:41.639 and vice versa. So it's a it's a very nice 0:26:41.720 --> 0:26:45.560 additive part to with the Blaze persona is for sure. Well, 0:26:45.600 --> 0:26:47.399 it's interesting to you talk about kind of things that 0:26:47.440 --> 0:26:50.160 are important to him in terms of how you guys 0:26:50.359 --> 0:26:53.800 make your pizzas. It's real ingredients, not frozen, They're made 0:26:53.800 --> 0:26:57.280 in house every day, no chemicals, no additives, no nitrates 0:26:57.280 --> 0:27:00.520 in the meats. I mean, this is a huge trend 0:27:00.640 --> 0:27:03.159 in the food industry and we just see it continue 0:27:03.200 --> 0:27:05.639 to pick up momentum. How is that shaping kind of 0:27:05.640 --> 0:27:09.160 how you guys continue to move forward. How you uh, 0:27:09.200 --> 0:27:11.960 you know, supply out ingredients. Tell us a little bit 0:27:11.960 --> 0:27:16.359 about that. Yeah, our chef, chef Rad Kent, was one 0:27:16.400 --> 0:27:19.199 of the founders of Blaze, and honestly I rely on 0:27:19.280 --> 0:27:22.639 him quite a bit and the concept does because his 0:27:22.920 --> 0:27:25.600 background is really unique. He's got a business degree, he's 0:27:25.640 --> 0:27:28.720 a food scientist. He has worked as a personal chef 0:27:28.880 --> 0:27:31.639 and was a food designer for some large brands across 0:27:31.640 --> 0:27:34.720 the country. So he's a very unique chef in that 0:27:34.840 --> 0:27:38.040 he understands what corporate R and D is about, but 0:27:38.119 --> 0:27:40.199 he really makes amazing food. So he's one of the 0:27:40.200 --> 0:27:43.800 first people who worked directly with providers to do things 0:27:43.840 --> 0:27:46.359 that you would never think of, like take additives and 0:27:46.400 --> 0:27:49.199 preservatives out of banana peppers. All other banana peppers have 0:27:49.640 --> 0:27:52.080 some kind of preservative in them to keep that yellow, bright, 0:27:52.200 --> 0:27:55.280 vibrant color, and we have none of that. So the 0:27:55.359 --> 0:27:57.960 list is long of things where he is just decided 0:27:58.000 --> 0:28:00.480 it's important and he really wants to into the world. 0:28:00.560 --> 0:28:03.720 He wants to have an impact on food supply and 0:28:03.760 --> 0:28:06.679 the food system and showing that you don't have to, 0:28:06.840 --> 0:28:09.920 you know, compromise when you eat things. It's not we 0:28:09.960 --> 0:28:12.040 don't do it in a luxury way. We're not here 0:28:12.080 --> 0:28:15.359 to you know, tell people how they should eat. To us, 0:28:15.400 --> 0:28:18.080 just the cornerstone of how we want to present ourselves 0:28:18.200 --> 0:28:20.919 and what is important to the consumer. So anything we 0:28:20.920 --> 0:28:23.119 put in the restaurants, we put it through that lens 0:28:23.240 --> 0:28:26.280 of does it meet this criteria of really being a 0:28:26.280 --> 0:28:29.119 better product and tasting amazing? Right, We're not out just 0:28:29.240 --> 0:28:32.320 chasing trends just for the sake of chasing them. So 0:28:32.520 --> 0:28:34.360 it actually is thank you for mentioning it a really 0:28:34.359 --> 0:28:36.760 important part of of what we do. Well, it's a lot, 0:28:36.800 --> 0:28:38.960 and I gotta say it's a bigger and bigger conversation 0:28:39.000 --> 0:28:41.680 that we are having um when it comes to anything 0:28:41.720 --> 0:28:44.640 with food. I mean, I think back to conversations we've 0:28:44.640 --> 0:28:47.640 had with John mackew over at Whole Foods, conversations I 0:28:47.680 --> 0:28:49.880 had for years with Steve Els about what they were 0:28:49.920 --> 0:28:52.520 doing at Chipotle, Like this whole idea of how can 0:28:52.560 --> 0:28:54.680 we make kind of the whole food supply chain better 0:28:55.120 --> 0:28:59.480 and provide people with food that is better for them ultimately? UM, 0:28:59.520 --> 0:29:02.480 going forward, tell me about growth plans and has the 0:29:02.480 --> 0:29:06.440 pandemic sped them up, slowed them down? How has it 0:29:06.520 --> 0:29:09.200 changed maybe you know the expansion or any kind of 0:29:09.240 --> 0:29:15.240 cap expending going forward. Great question. Um, Really, the slowness 0:29:15.320 --> 0:29:18.720 that came from the pandemic was related to just COVID delays, 0:29:18.760 --> 0:29:22.160 not necessarily anyone having trepidation about opening a restaurant. So 0:29:22.200 --> 0:29:24.760 we opened twenty restaurants last year. We've got thirty in 0:29:24.800 --> 0:29:27.680 the pipeline this year, which means people might have been 0:29:27.680 --> 0:29:30.880 a little slower to pull the trigger on new opportunities. 0:29:31.200 --> 0:29:34.560 But real estate is opening up, so that means this 0:29:34.680 --> 0:29:38.600 is where the growth moment comes. And particularly after large 0:29:38.640 --> 0:29:44.880 economic disruptions or life changing economic situations, franchise these tend 0:29:44.960 --> 0:29:48.520 to win people who might be displaced from their jobs 0:29:48.560 --> 0:29:50.560 and have always had this dream of running a restaurant 0:29:50.600 --> 0:29:52.680 to have some involvement or have an operating partner who 0:29:52.680 --> 0:29:56.240 has some experience, actually will come seek out grants like us. 0:29:56.360 --> 0:29:58.840 We have over a hundred fifty people in our pipeline 0:29:59.520 --> 0:30:02.960 who are in interested in opening Blazers. We have territories 0:30:03.000 --> 0:30:05.720 available in some really hot markets because we need to 0:30:05.720 --> 0:30:09.560 build some density. There's still an awareness proposition for fast 0:30:09.600 --> 0:30:11.960 casual pizza across the country where a lot of people 0:30:11.960 --> 0:30:14.080 need to figure out what that is and to your point, 0:30:14.080 --> 0:30:17.920 a moment ago figure out what better pizza tastes like? Um, 0:30:18.640 --> 0:30:23.040 so are we have a rough sencil to e and 0:30:23.120 --> 0:30:26.040 that's based on sustainable growth. I think there's a lot 0:30:26.040 --> 0:30:29.400 of concerns with franchisees occasionally about oh, they're just opening 0:30:29.360 --> 0:30:32.360 a restaurants to open them. I'm I am more about 0:30:32.360 --> 0:30:35.040 franchise profitability. Right. The more I can get you to 0:30:35.120 --> 0:30:38.320 open a restaurant that has a great return, you will 0:30:38.360 --> 0:30:40.760 open more restaurants and then my pm L take care 0:30:40.760 --> 0:30:43.200 of itself. So yeah, we have a we have a 0:30:44.040 --> 0:30:47.960 great track record ahead of us of um getting to 0:30:48.040 --> 0:30:51.640 that eight hundred number, but in a really sustainable way. Yeah, 0:30:51.800 --> 0:30:54.600 really interesting. Um is it all going to stay US 0:30:54.680 --> 0:30:59.440 Canada or their thoughts overseas expand the overseas network or 0:30:59.720 --> 0:31:02.280 how do you see it? Oh definitely, yeah, definitely. We're 0:31:02.320 --> 0:31:08.760 actually already in Dubai baing Um. Yeah, no worries stories, um, 0:31:08.840 --> 0:31:12.560 And I think this brand has legs almost universal. Any 0:31:12.600 --> 0:31:15.880 pizzas just one of those piquitous food groups right right, 0:31:15.920 --> 0:31:22.720 but certainly India South Korea is a tremendous market. China, Um, yeah, 0:31:23.240 --> 0:31:25.240 sky's the limit. We have a little bit of work 0:31:25.280 --> 0:31:28.080 we're doing this year on some of the domestic footprint, 0:31:28.200 --> 0:31:32.720 really optimizing franchise the profitability again, because it's the better 0:31:32.800 --> 0:31:35.080 you can get that machine to work, the faster the 0:31:35.120 --> 0:31:38.480 proposition sells itself. So there's a lot of investment that 0:31:38.520 --> 0:31:40.760 we're making this year from a corporate perspective to make 0:31:40.760 --> 0:31:42.760 sure that happens. But we absolutely have our eye on 0:31:42.800 --> 0:31:45.760 other international markets. So they're already in a few international markets, 0:31:45.760 --> 0:31:48.360 but definitely looking to do more. That was Blaze President 0:31:48.440 --> 0:31:51.240 and CEO Mandy Shaw. That's up the first hour of 0:31:51.240 --> 0:31:53.880 the weekend edition of Bloomberg Business Week from Bloomberg Radio. 0:31:53.920 --> 0:31:56.480 I'm Cal Masser and I'm Tim Stannaback. Much more ahead 0:31:56.480 --> 0:31:58.800 in our next hour, including an in depth look at 0:31:58.840 --> 0:32:02.120 the future of work and the great disruption of hybrid work. 0:32:02.280 --> 0:32:05.160 How it's all changed because of the pandemic. It's definitely 0:32:05.200 --> 0:32:07.920 being turned upside down. We'll do that with two senior execs, 0:32:07.920 --> 0:32:11.680 one at Microsoft three, the other at Prudential Financial. Are 0:32:11.720 --> 0:32:14.000 we happy working at home? Do we want a hybrid 0:32:14.040 --> 0:32:17.520 world forever? They help answer some of those questions. Plus 0:32:17.560 --> 0:32:20.200 the president and CEO of Siemens Us on how we 0:32:20.280 --> 0:32:23.680 return to schools and our offices safely. It's all about 0:32:23.720 --> 0:32:26.160 that and beating burnout at work with the CEO of 0:32:26.160 --> 0:32:29.200 the Stress and Resilience Institute, Right, Yeah, this is an 0:32:29.200 --> 0:32:30.960 important one. Well of that to come in the next 0:32:30.960 --> 0:32:38.600 hour Bloomberg Business Week. This is Bloomberg. This is Bloomberg 0:32:38.680 --> 0:32:42.280 Business Week inside from the reporters and editors who bring 0:32:42.280 --> 0:32:46.640 you America's most trusted business magazine, plus global business, finance 0:32:46.680 --> 0:32:50.120 and tech news As it happened Sloomberg Business Week with 0:32:50.240 --> 0:32:56.000 Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Hi, 0:32:56.080 --> 0:32:58.480 I'm Carol Masser and I'm Tim Stanov. Plenty ahead in 0:32:58.520 --> 0:33:00.600 our second hour of the weekend edition in a Bloomberg 0:33:00.600 --> 0:33:03.920 Business Week, including a deep, deep dive into how work 0:33:04.000 --> 0:33:07.600 is shifting working from home, Tim hybrid being connected all 0:33:07.600 --> 0:33:10.440 the time, and also all the elevated stress that comes 0:33:10.480 --> 0:33:12.480 as a result. With that in mind, a series of 0:33:12.480 --> 0:33:15.520 interviews to maybe easier mind, including one with a consultant 0:33:15.520 --> 0:33:18.560 two companies who has the secret of beating burnout at work. Carol, 0:33:18.640 --> 0:33:21.400 just because we're not you know, at work, doesn't mean 0:33:21.440 --> 0:33:23.920 we are not working, Yeah, exactly, but you know, what 0:33:24.000 --> 0:33:26.959 you and I are at work? We are we are working. 0:33:27.360 --> 0:33:30.200 Also Microsoft and Prudential Senior Exact weighing in on how 0:33:30.200 --> 0:33:34.160 work is changing hybrid Yes, yet workers also want more 0:33:34.280 --> 0:33:36.600 face to face time. And then the president and CEO 0:33:36.640 --> 0:33:39.680 of Siemens Us, Barbara Hompton, on getting back to school, 0:33:39.720 --> 0:33:42.320 back to work, and of course safely. It's all about 0:33:42.320 --> 0:33:44.400 doing it safely. First up, Tim and I talk a 0:33:44.440 --> 0:33:46.560 lot about how work is shifting and the stresses on 0:33:46.600 --> 0:33:49.080 employees and leaders. We do that on our daily radio 0:33:49.120 --> 0:33:51.360 show and podcast, but it was also part of a 0:33:51.400 --> 0:33:54.440 conversation in a Bloomberg Live virtual event that was held 0:33:54.440 --> 0:33:56.480 this past week With that in mind, one person on 0:33:56.480 --> 0:33:58.840 the subject to joined us this week is Paula Davis, 0:33:58.840 --> 0:34:02.240 founder and CEO of the Stress and Resilience Institute, also 0:34:02.360 --> 0:34:05.200 author of the book Beating Burnout at Work, Why Teams 0:34:05.200 --> 0:34:07.720 Hold the Secret to Well Being and Resilience. We started 0:34:07.720 --> 0:34:10.200 the conversation though, she talked about her own struggles during 0:34:10.200 --> 0:34:12.880 the pandemic. So I'm just, you know, trying to pivot 0:34:12.920 --> 0:34:14.759 my business on a dime and write a book during 0:34:14.760 --> 0:34:17.080 a pandemic. And um, I have an almost five year 0:34:17.120 --> 0:34:18.640 old and so I feel like I'm sort of in 0:34:18.680 --> 0:34:21.000 the sick of it with everybody so easy, right, Everything's 0:34:21.000 --> 0:34:26.839 been easy totally. Yeah. Can you give us very briefly, UM, 0:34:27.000 --> 0:34:29.239 talk a little bit about how you had to burn 0:34:29.280 --> 0:34:31.560 out earlier in your career and how it led you 0:34:31.600 --> 0:34:33.959 to think differently about what you wanted to be doing. 0:34:35.000 --> 0:34:37.960 So I practiced law for seven years and UM burned 0:34:38.000 --> 0:34:40.280 out during what became the last year of my law practice, 0:34:40.400 --> 0:34:42.799 and so I did not know what it was. I 0:34:42.840 --> 0:34:45.000 felt like it was something that sort of crept up 0:34:45.000 --> 0:34:48.040 on me once I was really in it. I knew 0:34:48.040 --> 0:34:50.719 something was wrong or off, and I didn't really know 0:34:50.800 --> 0:34:53.759 how to address it or get myself out of it. 0:34:53.800 --> 0:34:56.160 And there were some morning signs that I missed kind 0:34:56.160 --> 0:34:58.760 of going through that process that I didn't realize rewarding 0:34:58.800 --> 0:35:01.920 signs until after the fact. So UM, you know, it 0:35:01.960 --> 0:35:05.440 was a year long UM process that that ended in 0:35:05.680 --> 0:35:08.440 a not so great way. I was having panic attacks 0:35:08.520 --> 0:35:10.239 and I was in the emergency room a couple of 0:35:10.239 --> 0:35:13.200 times from the stress that I was experiencing, UM, and 0:35:13.280 --> 0:35:15.719 that really caused me to take a step back and 0:35:15.760 --> 0:35:18.040 rethink what I wanted to be doing with my career. 0:35:18.120 --> 0:35:20.520 And so that UM, I said why not make my 0:35:20.600 --> 0:35:24.359 mess my message and sort of turned and found the 0:35:24.400 --> 0:35:28.799 Applied Positive Psychology program at University of Pennsylvania. So I thought, 0:35:28.800 --> 0:35:30.879 why not why not study all the factors that lead 0:35:30.960 --> 0:35:33.360 up to this so that I can hear organizations and 0:35:33.440 --> 0:35:35.840 leaders and people away from that, people give us some 0:35:35.840 --> 0:35:38.120 of the warning signs that that you know now but 0:35:38.160 --> 0:35:40.080 didn't know at the time. So there were three big 0:35:40.120 --> 0:35:42.400 ones and as I as I realized these these are 0:35:42.400 --> 0:35:44.759 actually the three big dimensions of burnout. So this is 0:35:44.800 --> 0:35:47.600 also how you know if if what you're experiencing is 0:35:47.600 --> 0:35:50.680 starting to move away from stress and into something like burnout. 0:35:50.760 --> 0:35:55.920 So the first one was chronic physical and emotional exhaustion. So, um, 0:35:56.000 --> 0:35:58.560 we all have tired days and weeks and things like that, 0:35:58.600 --> 0:36:01.200 but this is over a pere read of time. Nothing 0:36:01.239 --> 0:36:03.239 that I did felt like I could, you know, kind 0:36:03.239 --> 0:36:05.719 of repeal my thing. Um, So there was that one. 0:36:05.760 --> 0:36:09.279 And the second big morning sign is chronic cynicism. So 0:36:09.400 --> 0:36:12.279 everyone just started to bug me and annoy me and 0:36:12.480 --> 0:36:15.399 especially my especially my clients, which is a bad thing 0:36:15.520 --> 0:36:19.440 to have happened. Outwardly, I was always very professional, but 0:36:19.480 --> 0:36:21.400 inwardly there was a lot of eye rolling going on. 0:36:21.520 --> 0:36:23.480 Is that stress or just being a New Yorker. I'm 0:36:23.520 --> 0:36:26.480 just going to say, from my own perspective, I'm kidding 0:36:28.080 --> 0:36:30.520 what's interesting about you know? And our producer Paul Brandon 0:36:30.520 --> 0:36:32.040 said to me, Eric, Carol, You're not gonna like this, 0:36:32.080 --> 0:36:33.560 But she said, one of the things is you can't 0:36:33.640 --> 0:36:35.839 yoga retreat your way out of stress. I'm a big 0:36:35.920 --> 0:36:38.520 yoga person and I've gone on retreats. I mean, the 0:36:38.560 --> 0:36:41.759 whole kind of messages try not to get to the 0:36:41.760 --> 0:36:44.920 point where you're stressed and burnt out right, That it's 0:36:44.920 --> 0:36:47.200 not about treating that, it's trying to get to prevent 0:36:47.320 --> 0:36:51.200 getting there. Yeah. It is also recognizing that we've been 0:36:51.560 --> 0:36:53.600 really kind of talking about burnout in the wrong way 0:36:53.640 --> 0:36:55.799 for a long period of time. We've been focused on 0:36:55.840 --> 0:36:58.520 talking about it is solely kind of an individual problem 0:36:58.680 --> 0:37:02.040 that requires individual strategies to fix it, when in reality, 0:37:02.400 --> 0:37:05.920 there's certainly things about our personalities and our resilience levels 0:37:05.920 --> 0:37:08.440 and things that influence whether we'll burn out. But the 0:37:08.440 --> 0:37:11.360 bigger picture is is looking at the rest of the 0:37:11.480 --> 0:37:14.439 organizational system. Right, It's also the teams that were part 0:37:14.440 --> 0:37:17.960 of and the leaders that we have, and the organizational 0:37:18.000 --> 0:37:21.000 culture and environment, And that's really the bigger piece of 0:37:21.000 --> 0:37:23.600 the puzzle. So we have to start kind of adding 0:37:23.640 --> 0:37:26.960 to the conversations that we're expanding from not just the 0:37:27.040 --> 0:37:30.200 individual approach, but really looking at the whole entire system 0:37:30.239 --> 0:37:33.120 and what we can do. But is this leaders? You know, 0:37:33.320 --> 0:37:35.480 I understand everybody has to look at it, but listen, 0:37:35.760 --> 0:37:38.920 I can certainly say as a worker be you know, 0:37:39.080 --> 0:37:41.560 here's our problem or here's my problem. But you know, 0:37:41.760 --> 0:37:43.960 isn't it up to the folks at the top to 0:37:44.040 --> 0:37:46.960 kind of set the tone? Yeah, it's it's a huge 0:37:47.280 --> 0:37:48.960 piece of the puzzle. And I talked about in the 0:37:49.080 --> 0:37:52.120 in the book that that organizations that have been successful 0:37:52.280 --> 0:37:55.200 at really kind of rolling out more of this systemic 0:37:55.239 --> 0:37:58.480 approach had leader buy in, but it was huge, right, 0:37:58.520 --> 0:38:00.680 And so so that's a lot of where I like 0:38:00.760 --> 0:38:02.560 to start my work is at the leader level. And 0:38:02.560 --> 0:38:04.480 it's not just leaders that that's have as really leaders 0:38:04.480 --> 0:38:07.480 at all levels, um, you know, who have a responsibility 0:38:07.560 --> 0:38:12.520 to to really understand the deeper causes of burnout and recognize, um, 0:38:12.600 --> 0:38:15.719 what's that play within their own teams and spears of influence. 0:38:16.440 --> 0:38:18.160 So what's the right way for us to be thinking 0:38:18.160 --> 0:38:20.480 about this well, so many of us are working from 0:38:20.520 --> 0:38:24.720 home and don't necessarily have that separation between work and life, 0:38:24.760 --> 0:38:27.120 like rolling out of bed and then your desk is 0:38:27.239 --> 0:38:29.319 right there and you just get on that zoom call 0:38:29.680 --> 0:38:33.080 and you're doing that until you realize that it's six pm. Yes, 0:38:33.200 --> 0:38:35.480 and then and then we continue to work after we 0:38:35.560 --> 0:38:38.000 gets been already and things like that. So, so that's 0:38:38.000 --> 0:38:40.080 been a really difficult talent in the kind of like 0:38:40.160 --> 0:38:42.560 a little formula that I've been giving people is that 0:38:42.560 --> 0:38:44.919 we know burnout is more likely to happen when our 0:38:45.000 --> 0:38:48.719 demands um outpace our resources. So when there's an imbalance 0:38:48.760 --> 0:38:51.160 between our demands and resources. And the hard part, I 0:38:51.160 --> 0:38:53.759 think about the environment we've been in so that we 0:38:53.880 --> 0:38:56.680 have We've already had lots of demands with our work, 0:38:56.719 --> 0:38:58.680 and now we have more because of the pandemic and 0:38:58.719 --> 0:39:01.759 other things. Right, so we and we have fewer resources. 0:39:01.840 --> 0:39:05.000 Paula Davis, founder and CEO of the Stress and Resilience Institute, 0:39:05.000 --> 0:39:07.359 also author of the book Beating Burnout at Work? Why 0:39:07.440 --> 0:39:10.440 teams hold the secret to well being and resilience? You me, 0:39:10.640 --> 0:39:13.160 we hold the secret. Tint we have, we have the power. 0:39:14.120 --> 0:39:17.520 You're listening to Bloomberg Business Week Coming up hybrid work 0:39:17.560 --> 0:39:19.919 model back at the office, are working from home? What 0:39:20.000 --> 0:39:23.400 do we all want? A Microsoft round up on the 0:39:23.440 --> 0:39:27.239 great disruption of hybrid work that's next. This is Bloomberg. 0:39:34.800 --> 0:39:38.799 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:39:38.880 --> 0:39:43.799 Quick Takes Tim Spinovik from Bloomberg Radio. We continue with 0:39:43.840 --> 0:39:46.080 looking at how work has been impacted by the pandemic. 0:39:46.160 --> 0:39:49.200 One company with a great window into all of that, Microsoft, 0:39:49.400 --> 0:39:51.479 which came out with another round of data points about 0:39:51.480 --> 0:39:53.839 how we have been working during the pandemic and where 0:39:53.880 --> 0:39:56.400 we are today. To get more on the recently released 0:39:56.400 --> 0:40:00.160 and updated Microsoft Work Trend Index. Jared Spitaro, Corporate ice 0:40:00.200 --> 0:40:03.160 President of Microsoft three six, joined us with an array 0:40:03.239 --> 0:40:06.120 of statistics and findings. When all this started to happen 0:40:06.200 --> 0:40:07.719 about a year ago, you know, one of the things 0:40:07.760 --> 0:40:09.839 I knew for certain, probably the only thing I knew 0:40:09.880 --> 0:40:12.200 for certain, is that we just needed to get some data, 0:40:12.360 --> 0:40:15.400 like we needed to become students of the moment. So 0:40:15.440 --> 0:40:18.160 over the course of this last twelve month period, we 0:40:18.200 --> 0:40:21.200 have periodically been taking samples as we go out and 0:40:21.239 --> 0:40:23.839 find out across the world how people are doing this 0:40:23.920 --> 0:40:26.279 last report that we published is a survey of over 0:40:26.360 --> 0:40:29.440 thirty thousand people in thirty one countries. It's all sorts 0:40:29.440 --> 0:40:32.200 of different mixes of roles and industries, so you see 0:40:32.200 --> 0:40:35.160 everyone from typical knowledge worker that you might see an 0:40:35.440 --> 0:40:38.000 in office to people who are working on the front lines. 0:40:38.080 --> 0:40:40.880 We're getting a good sense of how people are feeling 0:40:40.880 --> 0:40:44.080 and what they're valuing and what their challenges are. How 0:40:44.120 --> 0:40:48.960 are we doing? I mean, like I gotta tell you, uh, 0:40:49.200 --> 0:40:53.960 just talking to friends, reading about how people are feeling, 0:40:55.080 --> 0:40:56.799 I think a lot of people are at their wits end. 0:40:58.040 --> 0:41:00.840 You know, that is essentially what the data says. But 0:41:00.920 --> 0:41:03.400 let me let me kind of pull out a couple 0:41:03.440 --> 0:41:07.480 of points that really caught my attention. If you ask leaders, 0:41:07.600 --> 0:41:10.160 they actually say they're doing pretty well. Sixty one pc 0:41:10.320 --> 0:41:13.440 of leaders say that they are thriving. But that's twenty 0:41:13.440 --> 0:41:16.680 three percentage points higher than those without decision making authority. 0:41:16.719 --> 0:41:18.719 When we get down to the average worker and ask 0:41:18.800 --> 0:41:21.799 them how are we doing, then those numbers, I think, 0:41:21.960 --> 0:41:24.400 you know, really hit that feeling that we all feel 0:41:24.400 --> 0:41:28.160 around us. UM fifty of workers globally say that they 0:41:28.200 --> 0:41:32.200 feel overworked, say that they feel exhausted. So there is 0:41:32.200 --> 0:41:34.640 a sense of exasperation that it's been a very long 0:41:34.719 --> 0:41:36.680 year and the very challenging here. Well, the thing that 0:41:36.680 --> 0:41:38.560 that says to me, Jared, is that we've got to 0:41:38.560 --> 0:41:40.840 make sure that leaders are in sync with workers, right, 0:41:40.880 --> 0:41:44.800 because leaders ultimately said policy that's right. I mean, the 0:41:45.080 --> 0:41:46.640 way I look at this, if we take a step 0:41:46.640 --> 0:41:48.560 back for a moment, you know, I think this is 0:41:48.600 --> 0:41:51.480 one of those once in a lifetime shocks that comes 0:41:51.480 --> 0:41:54.239 to an economy, that comes to a business, that comes 0:41:54.280 --> 0:41:57.400 to organizations, and in fact, what the data seems to 0:41:57.440 --> 0:41:59.480 point out is that leaders are not in sync, that 0:41:59.560 --> 0:42:01.080 they need a little bit of a wake up call. 0:42:01.120 --> 0:42:03.839 I think so many leaders are just kind of thinking 0:42:03.880 --> 0:42:05.319 we're going to go back to the way it was 0:42:05.360 --> 0:42:08.040 in January, and that's just not the case. And so 0:42:08.120 --> 0:42:10.200 this wake up call, I think is a moment for 0:42:10.200 --> 0:42:12.640 all of us to look around and recognize things have changed. 0:42:12.680 --> 0:42:15.520 The labor markets changed, employee sentiment has changed, how we 0:42:15.600 --> 0:42:17.880 do things has changed. It really is a moment that 0:42:17.920 --> 0:42:20.680 demands vision and leadership. And that's what we're trying to 0:42:20.680 --> 0:42:22.440 point out in the data is that there's there's an 0:42:22.480 --> 0:42:25.000 opportunity for so much good there, but at the same time, 0:42:25.040 --> 0:42:27.239 if we just let it unfold on its own, under 0:42:27.239 --> 0:42:29.560 its own weight, there's an opportunity for some downside to 0:42:29.840 --> 0:42:32.040 look such a disconnect between the way that workers feel 0:42:32.080 --> 0:42:34.359 and the way that managers feel. How did the two meet? 0:42:34.719 --> 0:42:37.080 How do workers? How do you know? How do managers 0:42:37.160 --> 0:42:39.040 rise to the occasion here? Well, let's first talk a 0:42:39.080 --> 0:42:41.400 little a little bit about what we're hearing from both sides. 0:42:41.440 --> 0:42:44.279 So when we talk to workers, we hear that over 0:42:44.320 --> 0:42:47.480 seventy percent of them want flexible remote work to stay 0:42:47.520 --> 0:42:49.719 in some forms. In other words, they're saying, I like 0:42:49.880 --> 0:42:52.440 the flexibility. Just anecdotally, when I talk to people on 0:42:52.480 --> 0:42:54.279 my team out here on the West Coast, they say 0:42:54.280 --> 0:42:56.719 things like, you know what, I'm eating breakfast with my 0:42:56.840 --> 0:42:59.000 kids for the very first time. I've never done that before. 0:42:59.040 --> 0:43:01.000 I'd like that to stick around. So they like that. 0:43:01.320 --> 0:43:04.520 At the same time, those same people, sixty percent of 0:43:04.560 --> 0:43:07.120 them say that they want more in person time with 0:43:07.160 --> 0:43:09.360 their teams. So they're saying, please give me flexibility, but 0:43:09.400 --> 0:43:11.040 at the same time, give me the opportunity to get 0:43:11.040 --> 0:43:14.200 back in person. Now, when we look at managers and leaders, 0:43:14.239 --> 0:43:16.600 on the other hand, they are recognizing that that flexibility 0:43:16.680 --> 0:43:19.160 is valuable. Over eight percent of them plan to keep 0:43:19.239 --> 0:43:22.480 more flexible remote from work from home policies post pandemic. 0:43:22.600 --> 0:43:24.759 So I think the meeting the way I would term 0:43:24.800 --> 0:43:26.920 it is we want the best of all worlds. We 0:43:27.000 --> 0:43:29.120 want people to be able to work together, workers and 0:43:29.200 --> 0:43:32.239 managers to find kind of that best of all worlds 0:43:32.280 --> 0:43:34.680 set up so that everybody is getting things that that 0:43:34.800 --> 0:43:36.920 benefit them. And I believe that, you know, there's a 0:43:36.960 --> 0:43:39.839 bright future headic will grab onto them work together. They jared, 0:43:39.840 --> 0:43:43.279 what about demographic differences, age differences when it comes to 0:43:43.280 --> 0:43:46.120 all of this, You know, we definitely saw that if 0:43:46.160 --> 0:43:48.400 we go back to that idea that we're trying to 0:43:48.480 --> 0:43:51.440 understand who's living and who's not doing so well, If 0:43:51.520 --> 0:43:53.800 I just point to gen Z, that's a very interesting 0:43:53.880 --> 0:43:56.279 data point for a sixty percent of gen Z say 0:43:56.320 --> 0:43:59.719 that they're just surviving or even struggling right now during 0:43:59.719 --> 0:44:02.080 the aren't set up. And so essentially what we're seeing 0:44:02.120 --> 0:44:04.440 is that this generation is more likely to be single 0:44:04.600 --> 0:44:07.480 early in career. They are definitely feeling the effects of 0:44:07.560 --> 0:44:11.200 kind of the impact of isolation, struggle with motivation at work. 0:44:11.239 --> 0:44:13.279 They don't have the same financial means as those there 0:44:13.320 --> 0:44:16.160 are more established, and so gen Z in particular reads 0:44:16.400 --> 0:44:19.400 needs I think, you know, some energy and some attention, 0:44:19.760 --> 0:44:21.960 because after all, you know, from our perspective, they are 0:44:22.000 --> 0:44:23.719 the future of work. When we talk about it, it 0:44:23.760 --> 0:44:25.680 has to do with people, and that's the generation that's 0:44:25.719 --> 0:44:27.720 going to help us. What is the right way for 0:44:27.840 --> 0:44:30.360 us to approach this when it comes to balancing our 0:44:30.400 --> 0:44:32.319 working lives. You did mention that for the first time 0:44:32.320 --> 0:44:34.680 parents are able to be breakfast with their kids. But 0:44:34.719 --> 0:44:36.960 at the same time, it also means that there isn't 0:44:37.000 --> 0:44:42.879 that separation between work and home life. Yes, definitely, that's 0:44:42.880 --> 0:44:45.000 something that people are struggling with. Is this idea of 0:44:45.040 --> 0:44:47.400 how do I put boundaries on what I'm doing? So 0:44:47.440 --> 0:44:49.160 we you know, in many ways, I think that you 0:44:49.160 --> 0:44:52.200 should kind of internalize that we have become the first 0:44:52.320 --> 0:44:55.520 truly always on digital workforce, you know, and that was 0:44:55.560 --> 0:44:58.000 forced upon us the starting last year, and we just 0:44:58.040 --> 0:45:00.200 didn't have the norms or the boundaries or the kind 0:45:00.200 --> 0:45:02.880 of cultural things that we needed to deal with it. 0:45:03.000 --> 0:45:05.839 So our recommendation from the data is that companies take 0:45:05.840 --> 0:45:07.360 a step back and they think about a couple of 0:45:07.480 --> 0:45:10.040 key things. They think about new norms that they want 0:45:10.080 --> 0:45:13.319 to establish kind of new approaches that they think will 0:45:13.360 --> 0:45:15.719 be important and even new policies that will help them out. 0:45:15.719 --> 0:45:18.000 So Microsoft, as an example, we've we've already made the 0:45:18.040 --> 0:45:21.719 announcement that our workers can work from home of the time, 0:45:22.000 --> 0:45:23.640 and what we're trying to do there is signal we 0:45:23.680 --> 0:45:26.520 think in person time is important, that FaceTime will be important. 0:45:26.520 --> 0:45:28.839 At the same time, we want to give employees more 0:45:28.880 --> 0:45:31.759 flexibility than they had before the pandemic to do some 0:45:31.800 --> 0:45:34.360 of those things that really matter to them. Well, that's interesting. 0:45:34.400 --> 0:45:36.600 So where do you think you know, companies need to 0:45:36.640 --> 0:45:38.480 invest because it also sounds like on the other side, 0:45:38.480 --> 0:45:40.160 and I know you guys did some work with LinkedIn. 0:45:40.600 --> 0:45:45.560 You know specifically employees are looking for that flexibility when 0:45:45.920 --> 0:45:49.000 they go searching for a job. Absolutely, I mean, one 0:45:49.000 --> 0:45:51.160 of the data points that definitely caught my attention was 0:45:51.239 --> 0:45:54.400 the remote job postings on Lincoln increased more than five 0:45:54.440 --> 0:45:57.200 times during the pandemic, and we saw that it was women, 0:45:57.360 --> 0:45:59.759 gen z and those without graduate degrees who are more 0:45:59.800 --> 0:46:02.040 like to apply for those jobs. So we see a 0:46:02.080 --> 0:46:04.480 really interesting thing happening here with the label market, where 0:46:04.480 --> 0:46:06.880 again this could be a real upside coming out of 0:46:06.880 --> 0:46:09.800 this new world of work now in terms of investments 0:46:09.840 --> 0:46:11.719 and things that we think that people need to do. 0:46:11.920 --> 0:46:13.920 We think that there needs to be more investment in 0:46:14.040 --> 0:46:16.799 kind of first just the people, the soft side of 0:46:16.840 --> 0:46:19.280 how work gets done. We think the companies, as an example, 0:46:19.360 --> 0:46:22.120 really need to lean into well being and helping their 0:46:22.160 --> 0:46:24.839 employees understand you just aren't going to perform well if 0:46:24.840 --> 0:46:26.719 you're trying to work twenty four seven. But how do 0:46:26.719 --> 0:46:29.520 you make that argument to a company that's just focused 0:46:29.520 --> 0:46:32.160 on the bottom line? Like, how do you convince them 0:46:32.239 --> 0:46:34.279 that this is an investment that they need to make, Like, 0:46:34.320 --> 0:46:36.400 what are the numbers that you can show them that say, hey, 0:46:36.440 --> 0:46:38.920 this is something that is vital to the success of 0:46:38.920 --> 0:46:41.319 your company. You bet. I think what you do is 0:46:41.320 --> 0:46:44.480 you appeal to the bottom line. Our perspective has been 0:46:44.520 --> 0:46:46.399 what the numbers are starting to show us is that 0:46:46.840 --> 0:46:50.040 you can't treat people like machines and try and increase 0:46:50.080 --> 0:46:53.840 their productivity by just simply increasing their uptime. You really can't. 0:46:53.960 --> 0:46:56.640 You cannot treat people like machines. And I think with 0:46:56.719 --> 0:46:59.279 people outside of the office and all of us communicating 0:46:59.320 --> 0:47:02.840 over email and in these messaging systems, it probably is 0:47:02.920 --> 0:47:05.279 easier and easier to do that because we're not actually 0:47:05.320 --> 0:47:09.200 around one another. I am not a machine, just true. 0:47:09.520 --> 0:47:13.520 Jared's Pittaro, Corporate vice president of Microsoft three Carroll, I 0:47:13.520 --> 0:47:17.360 can attest to it. You are a living, breathing person. Alright, 0:47:17.360 --> 0:47:20.600 Everyone still to come on Bloomberg Business Week. Our conversation 0:47:20.640 --> 0:47:23.359 and our work is shifting because of change is caused 0:47:23.400 --> 0:47:26.680 by the pandemic. It's a conversation you and I have personally, 0:47:26.680 --> 0:47:27.960 but we have it with all of our guests, and 0:47:27.960 --> 0:47:30.400 we're gonna talk with the vice chair at Prudential Financial. 0:47:30.760 --> 0:47:38.600 This is Bloomberg Broadcasting from the financial capital of the world, 0:47:38.760 --> 0:47:42.200 Bloomberg eleven Frio in New York to Washington, d C. 0:47:42.400 --> 0:47:47.120 Bloomberg to Boston, Bloomberg one O six one to San Francisco, 0:47:47.200 --> 0:47:50.600 Bloomberg nine sixty to the country Sirius XM Chado one 0:47:50.719 --> 0:47:53.880 nineteen and around the globe the Bloomberg Business app and 0:47:53.920 --> 0:47:59.360 Bloomberg Radio dot Com. This is Bloomberg Business Week, all right, 0:47:59.400 --> 0:48:01.520 another chat you this week and work shifting and what 0:48:01.560 --> 0:48:04.080 work looks like next thanks to a Bloomberg Live virtual 0:48:04.120 --> 0:48:06.600 event on the subject you and I participated in. Right 0:48:06.600 --> 0:48:08.680 at that event and he go to voice for us on. 0:48:08.719 --> 0:48:11.360 This is Rob Thousand, vice chair at Credential Financial and 0:48:11.400 --> 0:48:14.279 a member of Credentials Board of Directors, who shared the 0:48:14.320 --> 0:48:17.279 company's latest survey on how the pandemic has changed the 0:48:17.280 --> 0:48:20.160 way that work gets done. We started off though, talking 0:48:20.200 --> 0:48:22.920 about the release of the upcoming report. We've got another 0:48:22.960 --> 0:48:25.080 survey coming out and haven't released it yet, but it'll 0:48:25.120 --> 0:48:27.360 be out next week, but a preview on that. I 0:48:27.360 --> 0:48:29.480 think two really interesting things that came out of it. 0:48:29.560 --> 0:48:33.320 The first is really clear that hybrid is going to 0:48:33.400 --> 0:48:36.560 dominate the work environment in the future. UM. The numbers 0:48:36.719 --> 0:48:39.040 on this have been rising every survey that we've done, 0:48:39.560 --> 0:48:43.280 so a seven percent of the respondence to our survey 0:48:43.360 --> 0:48:47.520 to prefer a remote environment at least one day a week, 0:48:47.560 --> 0:48:50.600 so a hybrid environment. UM. That's up from like sixty 0:48:50.640 --> 0:48:53.120 eight percent when we began doing these surveys some time ago. 0:48:53.480 --> 0:48:56.200 The second really interesting thing that came through this that 0:48:56.200 --> 0:48:58.040 maybe shouldn't have been a surprise based on some of 0:48:58.080 --> 0:49:01.080 the data we've seen earlier, but one in four workers 0:49:01.080 --> 0:49:04.200 that indicated that they have very definite plans to change 0:49:04.239 --> 0:49:08.280 employers post to pandemic. Uh. And the interesting thing is, yeah, 0:49:08.320 --> 0:49:11.239 that's your most skilled talent that's actually thinking about making 0:49:11.239 --> 0:49:13.840 those moves. So some really interesting stuff coming out of 0:49:13.840 --> 0:49:16.920 this last survey. Why do you think that is? Well, 0:49:16.960 --> 0:49:21.759 you know, um, I think there's a a disassociation that's 0:49:21.760 --> 0:49:25.080 occurred with individuals over the course of the pandemic. You know, 0:49:25.160 --> 0:49:27.080 you you speak with the colleagues that you deal with 0:49:27.080 --> 0:49:28.640 on a day to day basis, but not with the 0:49:28.640 --> 0:49:31.880 rest of the organization, and so there's been some disassociation 0:49:31.960 --> 0:49:34.360 with a broader colleague group and with the culture of 0:49:34.360 --> 0:49:36.360 the company. And I think as a result of that, 0:49:36.400 --> 0:49:39.000 people are feeling a little less attached to their platforms, 0:49:39.120 --> 0:49:41.680 their their employer than they used to. And there's the 0:49:41.800 --> 0:49:45.000 big driver then beyond that is I think they're frustrated 0:49:45.200 --> 0:49:49.239 that they don't see career opportunities in this environment and 0:49:49.280 --> 0:49:51.520 they're out looking for that career opportunity because they're not 0:49:51.600 --> 0:49:53.880 finding it where they're sitting today. Rob One thing I 0:49:53.920 --> 0:49:57.239 like talking to you about is how employees are thinking 0:49:57.280 --> 0:50:00.560 about their own futures when it comes to switch jobs, 0:50:00.640 --> 0:50:03.640 and also how employers are dealing with that. Do they 0:50:03.680 --> 0:50:06.400 have the talent pool right now to choose from for 0:50:06.520 --> 0:50:08.960 the jobs that are going to be required five ten 0:50:09.040 --> 0:50:11.680 years from now. Yeah, this is a really interesting topic 0:50:11.680 --> 0:50:13.520 and the answer is yes and no. And the the 0:50:14.320 --> 0:50:16.440 reality is we're going to hit the skills gap and 0:50:16.480 --> 0:50:19.640 we're already seeing it. Uh that you know what's happened 0:50:19.719 --> 0:50:22.160 during the pandemic, as there's been an enormous sort of 0:50:22.280 --> 0:50:27.440 roll forward of adoption of digital and technology, and UH 0:50:27.600 --> 0:50:30.439 that's left individuals feeling as if they're not sure they're 0:50:30.480 --> 0:50:33.160 quite prepared for dealing with the workforce. Our numbers show that, 0:50:33.560 --> 0:50:35.719 you know, before the pandemic, about the third of the 0:50:35.719 --> 0:50:38.400 people we surveyed said that weren't sure they had the 0:50:38.440 --> 0:50:40.279 skills for the jobs they had today, and the number 0:50:40.280 --> 0:50:44.279 went up to when they rolled forward five to ten years. Well, 0:50:44.400 --> 0:50:47.120 our recent surveys have indicated that that numbers already up 0:50:47.120 --> 0:50:49.880 to people worried that they don't have the skills to 0:50:49.920 --> 0:50:53.759 compete in today's workforce, and employers are looking at that. 0:50:53.800 --> 0:50:56.960 Our needs have changed pretty dramatically post the pandemic for 0:50:57.040 --> 0:50:59.560 the types of skills that we need. The challenge we're 0:50:59.560 --> 0:51:01.600 going to say is there aren't a lot of people 0:51:01.680 --> 0:51:03.720 out there that are gonna be able to fill these jobs. 0:51:03.719 --> 0:51:06.399 And I think, you know, so the responsible both from 0:51:06.400 --> 0:51:09.319 a leadership standpoint and probably from a societal standpoint, is 0:51:09.440 --> 0:51:11.880 we're all going to have to invest in skilling, reskilling 0:51:11.880 --> 0:51:14.719 and upskilling individuals in order to give them what they 0:51:14.760 --> 0:51:16.960 need to do the jobs of the future that are 0:51:16.960 --> 0:51:18.560 going to be required. What are these skills that are 0:51:18.600 --> 0:51:20.200 required for the jobs of the future. I think so 0:51:20.280 --> 0:51:22.480 often we hear about the idea of people needing to learn, 0:51:22.560 --> 0:51:25.320 especially at a young age, right, coding and computer science 0:51:25.320 --> 0:51:28.920 skills and scam But what are you seeing in the 0:51:28.920 --> 0:51:31.600 results of your surveys. Well, you know, it's it's a 0:51:31.640 --> 0:51:34.279 it's a broad base. Um, I would not underestimate the 0:51:34.280 --> 0:51:36.560 soft skills and the need need to deal with customers. 0:51:36.600 --> 0:51:38.400 I mean, as a history major, that's what I like 0:51:38.480 --> 0:51:41.480 to he got a sun who's a history major. We'd 0:51:41.480 --> 0:51:44.080 like to hear that as well. Uh, it is. It 0:51:44.200 --> 0:51:46.800 is absolutely critical. You know what everyone's talking about digital, 0:51:46.840 --> 0:51:49.120 but you know they're talking about digital as enabling a 0:51:49.160 --> 0:51:52.160 better customer experience, and so there's a lot of investment 0:51:52.239 --> 0:51:54.479 being made at the interface with the customer and making 0:51:54.520 --> 0:51:57.560 that you know, enabled through digital, but also then having 0:51:57.560 --> 0:52:00.280 a higher quality experience, which means that you want people 0:52:00.280 --> 0:52:02.200 to put that higher touch on that and to be 0:52:02.320 --> 0:52:04.480 there for the needs that can't be answered sort of 0:52:04.600 --> 0:52:07.920 through the automated systems that we're setting up. UM, there 0:52:07.960 --> 0:52:10.040 is a need for analytics. I mean, the biggest area 0:52:10.040 --> 0:52:11.920 of hiring that we're probably be doing in the upcoming 0:52:11.960 --> 0:52:14.360 year is going to be around data science and data analytics. 0:52:14.640 --> 0:52:16.840 And that's sort of a higher the you know, the 0:52:16.920 --> 0:52:19.920 higher level of analytics that that the computers can't do. 0:52:20.080 --> 0:52:22.719 It's it's setting up the programming in and interpreting the 0:52:22.719 --> 0:52:24.840 results coming out of that. That gives us insights is 0:52:24.880 --> 0:52:27.239 to you know where where customers are going and what 0:52:27.280 --> 0:52:30.640 they need. So hybrid here to stay, absolutely here to stay. UM. 0:52:30.719 --> 0:52:33.200 Here's an interesting additional thing that came out of the survey, 0:52:33.239 --> 0:52:37.399 Carol um over four just over the people said they 0:52:37.520 --> 0:52:39.840 do not want to work for a company that is 0:52:39.960 --> 0:52:43.640 fully on premise. Another forty percent said they do not 0:52:43.719 --> 0:52:46.200 want to work for a company that is fully remote. 0:52:46.560 --> 0:52:48.479 So you have the book ends that no one wants 0:52:48.520 --> 0:52:50.680 to work in a place that either fully remote or 0:52:50.719 --> 0:52:54.000 fully fully at the office. Everyone wants the hybrid experience 0:52:54.000 --> 0:52:56.000 so you can have the best of both worlds. Rob Thousand, 0:52:56.040 --> 0:52:58.799 Vice chair at Prudential Financial any member of Credentials Board 0:52:58.800 --> 0:53:01.880 of Directors. The getting us back to work means also 0:53:01.920 --> 0:53:04.600 getting our kids safely back to school. Our workplaces need 0:53:04.680 --> 0:53:07.480 to be secure to thoughts on that with the Presidency 0:53:07.560 --> 0:53:10.720 of Siemens Us. You're listening to Bloomberg Business Week. That's next. 0:53:10.880 --> 0:53:22.319 This is Bloomberg. You're listening to Bloomberg Business Week with 0:53:22.400 --> 0:53:27.040 Carol Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. 0:53:27.960 --> 0:53:30.400 We've got one more segment from our Virtual Work Shifting 0:53:30.440 --> 0:53:33.040 event this week. It's a conversation with the Presidency of 0:53:33.040 --> 0:53:36.239 Siemens Us Barbara Humpton, who is working with companies in 0:53:36.239 --> 0:53:38.640 schools to get people and kids back to work back 0:53:38.640 --> 0:53:41.200 to school safely. Before that, though, Carol, you begin with 0:53:41.239 --> 0:53:45.160 Barbara's reaction to President Biden's infrastructure plan to see the 0:53:45.160 --> 0:53:48.920 administration proposing such bold moves in things that really matter. 0:53:49.400 --> 0:53:52.879 You know, here we are thinking that we're at the 0:53:53.080 --> 0:53:55.520 end or should I say, the beginning of the end 0:53:55.640 --> 0:53:59.160 of a pandemic, and yet we're also at the beginning 0:53:59.239 --> 0:54:03.120 of something rand new when we think about the power 0:54:03.280 --> 0:54:08.080 of infrastructure, and particularly the power of infrastructure using today's 0:54:08.239 --> 0:54:12.920 connected technologies. We have the chance to drive a step 0:54:13.000 --> 0:54:17.640 change that's gonna basically create the foundation for a strong 0:54:17.719 --> 0:54:21.040 economy for decades to come. So we we at SEMENS 0:54:21.040 --> 0:54:25.520 are bullish on the next steps in America's infrastructure. Is 0:54:25.520 --> 0:54:27.479 it safe to say that companies have already been calling 0:54:27.520 --> 0:54:31.040 you an anticipation of the spending or focus on infrastructure. 0:54:32.520 --> 0:54:35.359 Semens has been focused on infrastructure for a long time, 0:54:35.360 --> 0:54:37.080 and I often get asked, you know it, does a 0:54:37.160 --> 0:54:40.399 change of administration make a big difference? And and this 0:54:40.640 --> 0:54:44.520 is truly a bipartisan topic. So I'm proud to say 0:54:44.560 --> 0:54:47.200 that SEMENS for over a hundred sixty years has been 0:54:47.719 --> 0:54:52.080 building America's infrastructure here in the US right, everything from 0:54:52.120 --> 0:54:58.279 originally getting involved in power, in healthcare, in transportation, now 0:54:58.719 --> 0:55:03.239 the future of buildings, future of manufacturing. These are things 0:55:03.280 --> 0:55:06.640 where we've got broad ecosystems partners all across the country 0:55:06.760 --> 0:55:09.520 ready to perform. And I think this is a chance 0:55:09.560 --> 0:55:12.920 to up our game. You talk about the future, barber, 0:55:13.040 --> 0:55:15.440 so talk to us about visibility that you feel like 0:55:15.520 --> 0:55:18.200 you have. Generally speaking, we're going to drill down into 0:55:18.200 --> 0:55:20.680 schools in particular. But when you look at the economy 0:55:20.719 --> 0:55:23.840 from your vantage point. You work with so many different industries, 0:55:24.120 --> 0:55:27.239 so many different companies, so many different suppliers. What's the 0:55:27.360 --> 0:55:30.239 economic and business environment, what does it look like? What 0:55:30.400 --> 0:55:34.279 visibility do you have right now? Yeah, we recognize that 0:55:34.360 --> 0:55:38.680 there's been such tremendous impact on the economy throughout the pandemic. 0:55:38.760 --> 0:55:41.879 This has been a really tough year, and yet if 0:55:41.920 --> 0:55:46.319 you look across verticals within this market, you see some 0:55:46.400 --> 0:55:50.440 exciting signals. As I say, there are segments of the 0:55:50.480 --> 0:55:52.960 market that have been stepping up, responding to the call, 0:55:53.080 --> 0:55:57.680 actually transforming themselves. We knew before coronavirus hit that we 0:55:57.680 --> 0:56:00.719 were at the brink of a digital transformation and this 0:56:01.239 --> 0:56:04.839 Internet of Things that is going to be so much 0:56:04.920 --> 0:56:08.160 bigger than the last decade of the Internet of People. 0:56:08.719 --> 0:56:12.400 So so we recognize the opportunity ahead. There are strong 0:56:12.680 --> 0:56:16.239 verticals beginning to make a move. And where we focused 0:56:16.400 --> 0:56:19.880 most deeply during the days of the pandemic was first 0:56:20.160 --> 0:56:24.880 hospitals making sure healthcare had access to the technologies they needed. 0:56:25.320 --> 0:56:28.759 Then schools obviously working with our partners to make sure 0:56:28.880 --> 0:56:32.080 we were supporting the education of our children, but also 0:56:32.320 --> 0:56:37.759 in industry stepping up, helping pharmaceuticals, medical devices, helping those 0:56:37.800 --> 0:56:42.560 who are producing ppe the items we need every day 0:56:42.600 --> 0:56:45.200 that are going to be vital to us. All of 0:56:45.280 --> 0:56:48.400 these we've been able to ramp up production, help people 0:56:48.440 --> 0:56:50.480 with the tools we can bring to the table. But 0:56:50.640 --> 0:56:53.480 far more important than the technology and the tools has 0:56:53.560 --> 0:56:58.560 been the people. It's been phenomenal to see relationships come 0:56:58.560 --> 0:57:03.360 to fruition and and get creative. So, in terms of 0:57:03.360 --> 0:57:04.960 the economic outlook, do you feel like you have a 0:57:04.960 --> 0:57:07.759 lot of visibility about the next six months or so? Like, 0:57:07.800 --> 0:57:12.319 can you does the economy feel a lot better? Yeah? 0:57:12.400 --> 0:57:14.920 I actually I'm bullish. We are all bullish on this. 0:57:15.040 --> 0:57:18.720 We know that there's pent up demand. We know that 0:57:18.760 --> 0:57:21.760 as things come back online, there's going to be a 0:57:21.840 --> 0:57:26.120 surge to respond to immediate needs, and we see the 0:57:26.120 --> 0:57:29.920 power of the transformation ahead. All right, So let's talk 0:57:29.960 --> 0:57:33.000 about schools. Because the conversation I have had so many 0:57:33.000 --> 0:57:34.920 times and I bet you have as well over the 0:57:34.920 --> 0:57:37.640 past year, is that it was hard for people to 0:57:37.720 --> 0:57:40.640 get back work. It is hard for parents to get 0:57:40.640 --> 0:57:43.000 back to work if they've got young children or and 0:57:43.040 --> 0:57:45.800 those kids aren't in school. What are you hearing? What 0:57:45.840 --> 0:57:49.560 are your expectations about when it comes to school districts, 0:57:49.600 --> 0:57:52.960 what's being done and what needs to be done. Yeah, Carol, 0:57:53.040 --> 0:57:55.520 it's that right. It's it's what what impact has this 0:57:55.680 --> 0:57:59.000 had on working people? But it's also what impact has 0:57:59.040 --> 0:58:00.840 this had on the work for us of the future. 0:58:00.960 --> 0:58:04.680 You know, a year of lost learning opportunities is something 0:58:04.760 --> 0:58:07.720 we all need to be concerned about. So we've been 0:58:07.720 --> 0:58:11.320 working with school districts all across the country. Uh, you know, 0:58:11.440 --> 0:58:15.080 with the American Rescue Plan the right, we have an 0:58:15.080 --> 0:58:18.720 amazing amount of funding available to us now, some two 0:58:19.240 --> 0:58:22.120 eight billions for both K through twelve and higher ed 0:58:22.640 --> 0:58:28.240 to help schools adapt their operations to what we're now 0:58:28.320 --> 0:58:31.360 dealing with as reality. Now, a lot of people can 0:58:31.400 --> 0:58:35.320 do a lot of things with those resources. We're really 0:58:35.400 --> 0:58:39.080 encouraging leaders to take a look at technologies that are 0:58:39.120 --> 0:58:43.280 available to us today to actually make those school buildings, 0:58:43.320 --> 0:58:48.400 those school facilities healthier. You know, years ago we all 0:58:48.440 --> 0:58:52.000 you know, put in place HVAC systems, etcetera. A lot 0:58:52.040 --> 0:58:54.720 of that infrastructure is over fifty years old. Now we 0:58:54.760 --> 0:58:59.600 have technologies today, including things like safe ozone, free ion 0:58:59.760 --> 0:59:04.360 is a things like UV treatment, ways to actually adapt 0:59:04.680 --> 0:59:09.040 HVAC systems so that we can provide healthier indoor environments. 0:59:09.080 --> 0:59:12.600 I mean, let's face it, the air quality is five 0:59:12.720 --> 0:59:16.440 times more contaminated inside than outside, and yet we're spending 0:59:16.560 --> 0:59:21.080 over nine of our time indoors. It's important that we 0:59:21.160 --> 0:59:24.600 get these indoor facilities to be as healthy as possible. 0:59:25.600 --> 0:59:26.880 I want to ask you, and I want to bring 0:59:26.880 --> 0:59:29.280 in a pole because we talked to our audience here 0:59:29.360 --> 0:59:32.400 at this Bloomberg Live event, UM, and we asked them 0:59:32.400 --> 0:59:36.760 specifically about do you trust your company operations to keep 0:59:36.800 --> 0:59:39.600 you safe? If and when you return to your office, 0:59:40.120 --> 0:59:43.040 and fully half are saying they don't trust their companies 0:59:43.080 --> 0:59:45.520 to keep them safe. And when you talk about safety, 0:59:45.600 --> 0:59:48.520 you just touched upon it. Barbara. It's all kinds of things, 0:59:48.760 --> 0:59:52.200 but it's air quality. Um. When you see that, are 0:59:52.200 --> 0:59:56.880 you surprised by those numbers? Yes? And no? Right, we 0:59:56.960 --> 1:00:00.040 are still in the early days where folks need in 1:00:00.120 --> 1:00:04.040 site into information and data. I mean, what forms the 1:00:04.040 --> 1:00:07.920 basis for trust? It really comes from two factors. One is, 1:00:08.360 --> 1:00:11.800 do I believe that this organization is competent? Do they 1:00:12.000 --> 1:00:15.160 understand and have knowledge of what needs to be done here? 1:00:15.640 --> 1:00:18.360 And then what about integrity? Are these people who will 1:00:18.400 --> 1:00:21.760 be trustworthy with me? And so I think all of 1:00:21.840 --> 1:00:25.040 us businesses, government, etcetera have to earn that trust. We 1:00:25.160 --> 1:00:28.120 at Siemens are relying on the science and we're doing 1:00:28.200 --> 1:00:31.000 all we can to educate people on the tools that 1:00:31.040 --> 1:00:34.840 are available to us today and knowledge is growing every day. 1:00:35.440 --> 1:00:36.800 You know, you took me to a place and I 1:00:36.800 --> 1:00:38.160 want to get back to more of the tools and 1:00:38.200 --> 1:00:40.560 the technology because you guys are front and center with that. 1:00:40.800 --> 1:00:42.840 But is there now a new or should there be 1:00:42.880 --> 1:00:46.960 a new informal contract between leaders, heads of companies and 1:00:47.000 --> 1:00:49.680 their employees when it comes to safety, it's not just 1:00:49.720 --> 1:00:53.320 about falling downstairs, but it's also about this pandemic has 1:00:53.360 --> 1:00:55.880 taught is so much more. It's it's much more deeper. 1:00:55.920 --> 1:00:59.360 So should there kind of be an informal formal contract 1:00:59.520 --> 1:01:03.439 when it is to safety at work? Well, I hope 1:01:03.440 --> 1:01:07.200 other companies are like us. We've made the environmental health 1:01:07.200 --> 1:01:10.480 and safety aspect of our of our business and the 1:01:10.520 --> 1:01:13.320 foundation of our business. And we have a motto. It's 1:01:13.320 --> 1:01:15.840 a simple one. We take care of each other. It's 1:01:15.880 --> 1:01:19.000 something that guides us each day and throughout this past year, 1:01:19.120 --> 1:01:22.640 our e h S professionals have really been heroes, you know, 1:01:22.680 --> 1:01:25.400 being on the front line providing our employees with more 1:01:25.440 --> 1:01:29.560 information informing upper management about the things we need to 1:01:29.640 --> 1:01:32.800 understand about the environment. At SEMENS, we do have the 1:01:32.800 --> 1:01:36.800 need to have people in work environments every single day, 1:01:36.840 --> 1:01:39.560 but for those who have the flexibility to work from 1:01:39.600 --> 1:01:44.400 everywhere are our new deal. Our agreement is hey from 1:01:44.440 --> 1:01:48.200 here on out, two to three days, wherever your most productive. 1:01:48.560 --> 1:01:52.320 So I do think A we have tools and techniques 1:01:52.440 --> 1:01:56.920 to make those fixed work environments like factories, like hospitals, 1:01:56.960 --> 1:02:00.920 like schools healthier, and we have the ability now to 1:02:01.040 --> 1:02:04.440 give people more flexibility to make their own choices through 1:02:04.600 --> 1:02:08.200 digital connections. You know, it's interesting a question just coming 1:02:08.200 --> 1:02:10.720 in from our audience about this barbera. It says, uh, 1:02:10.760 --> 1:02:12.520 you know, it has to do with mental health, which 1:02:12.560 --> 1:02:15.200 is something I've had, you know, go back a year. 1:02:15.320 --> 1:02:16.880 I don't think I would have expected to have these 1:02:16.880 --> 1:02:19.560 conversations with CEOs and leaders like yourself, but it has 1:02:19.960 --> 1:02:22.920 infiltrated every conversation, and that has to do with the 1:02:22.960 --> 1:02:24.800 mental well being as well as the physical well being 1:02:24.840 --> 1:02:28.000 of their employees. This question coming in, what system do 1:02:28.120 --> 1:02:30.560 you have in place for people juggling so many chaotic 1:02:30.600 --> 1:02:34.160 situations in their lives which are causing unimaginable mental stress 1:02:34.200 --> 1:02:38.560 for them. Yeah. The first actually is making us all 1:02:38.600 --> 1:02:41.880 aware that it's a reality, right, actually stepping up and 1:02:41.920 --> 1:02:45.400 saying this is a fact of today's work life, and 1:02:45.440 --> 1:02:47.880 we used to talk about work life balance. I've always 1:02:47.880 --> 1:02:50.800 been a proponent. Over this past year, we've all come 1:02:50.840 --> 1:02:56.560 to the reality of working in an environment. So we 1:02:56.680 --> 1:03:00.320 have absolutely added mental wellness tools to our tool kits 1:03:00.400 --> 1:03:03.800 so that managers and employees can have open dialogue, employees 1:03:03.800 --> 1:03:07.240 can have um conversations with people outside of the company 1:03:07.280 --> 1:03:10.120 if they're not comfortable speaking up inside the company. All 1:03:10.200 --> 1:03:13.040 of those are are there to assist us as we 1:03:13.120 --> 1:03:16.919 deal with this reality. That's President and CEO of siemens Us, 1:03:17.160 --> 1:03:19.600 Barbara Humpton. I've been thinking a lot about this because 1:03:19.600 --> 1:03:22.040 we are a year into this pandemic and the gap 1:03:22.120 --> 1:03:23.760 that we've seen between the millions of people who are 1:03:23.840 --> 1:03:26.200 unemployed and the millions of people who have been working 1:03:26.200 --> 1:03:28.520 from home over the last year, and how those experiences 1:03:28.560 --> 1:03:31.200 have differed so much. Yeah, and especially differences I think 1:03:31.240 --> 1:03:33.720 between how maybe leaders are seeing some of this either 1:03:33.800 --> 1:03:36.800 wanting workers to come back or thinking hybrid worked really well, 1:03:37.160 --> 1:03:40.960 and employees actually with a different perspective and listen check 1:03:41.000 --> 1:03:42.920 out all of these conversations because it really gives you 1:03:42.920 --> 1:03:45.160 some great insight, especially if you're a leader, about maybe 1:03:45.200 --> 1:03:47.320 some of the policies you need to be setting. And 1:03:47.320 --> 1:03:49.480 that wraps up the weekend edition of Bloomberg Business Week 1:03:49.480 --> 1:03:51.560 from Bloomberg Radio. Thanks so much for joining us from 1:03:51.560 --> 1:03:53.840 Carol Masser and Tim Stanovk. Be sure to tune into 1:03:53.840 --> 1:03:56.320 our Bloomberg Business Week Daily show Monday through Friday. It 1:03:56.360 --> 1:03:58.840 starts at two pm Wall Street Time on Bloomberg Radio. 1:03:58.920 --> 1:04:01.080 You can also watch our daily podcast on YouTube. Just 1:04:01.120 --> 1:04:04.360 search Bloomberg Global News. Check out to our Bloomberg Business 1:04:04.400 --> 1:04:06.880 Week podcast. Find that at Bloomberg dot com, Apple or 1:04:06.880 --> 1:04:08.919 wherever you get your podcasts, and you can also see 1:04:08.920 --> 1:04:11.680 me on Bloomberg quick Take. It's available at Bloomberg dot com, 1:04:11.720 --> 1:04:15.360 slash qt, and streaming platforms like Roku, Apple TV, Samsung 1:04:15.400 --> 1:04:19.120 TV and more. Watched Bloomberg Business Week is available on 1:04:19.120 --> 1:04:21.720 newsstands now, at Bloomberg dot com and on the Bloomberg 1:04:21.760 --> 1:04:24.520 Terminal'll have a great weekend everyone, This is Bloomberg