WEBVTT - Robinhood Sinks, Hertz and Uber Team Up 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovik. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all partnising the power of Business 0:00:13.680 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 Bloomberg Business Week on iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.440 --> 0:00:25.200 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:34.240 YouTube search Bloomberg Global News. You are listening to Bloomberg 0:00:34.240 --> 0:00:36.159 Business Week Carol Masser along with Tim Stanovik and our 0:00:36.200 --> 0:00:40.560 interactive broker's studio. Watching shares of the eight r s 0:00:40.560 --> 0:00:42.800 at trade here in the US of Tema Pharmaceutical it's 0:00:42.840 --> 0:00:45.800 down about three percent, and as we speak, shares of 0:00:45.840 --> 0:00:48.360 the Israeli based generic's companies we mentioned under a little 0:00:48.360 --> 0:00:51.120 bit of pressure following the company's latest quarterly update, the 0:00:51.159 --> 0:00:53.840 company missing on both the top and bottom lines for 0:00:53.920 --> 0:00:56.800 the third quarter, and Tim also launching a sustainability linked 0:00:56.840 --> 0:00:59.640 bond today, planning to raise four billion tied to e 0:00:59.760 --> 0:01:02.440 s G efforts to increase access to medicines in low 0:01:02.480 --> 0:01:04.839 and middle income countries. It's something we just talked about. 0:01:05.080 --> 0:01:08.440 It is Core Schultz as president and CEO of Tapa 0:01:08.480 --> 0:01:11.640 Pharmaceutical joining us now from Partsippany, New Jersey. Court. It's 0:01:11.640 --> 0:01:13.360 great to have you on the show. How are you. 0:01:14.240 --> 0:01:16.679 I'm very fine, Tim, And Carol, its great to be 0:01:16.800 --> 0:01:19.480 with you. I'm very fine. Thanks. Well, let's start with 0:01:19.520 --> 0:01:22.320 the quarter. Carol went through some of the numbers. Why 0:01:22.319 --> 0:01:27.160 the misses. Basically, you could say that the expectations that 0:01:27.240 --> 0:01:30.080 we saw in the marketplace and also the the expectations 0:01:30.120 --> 0:01:32.720 we had at the beginning of the year was that 0:01:32.760 --> 0:01:38.000 the COVID nineteen effects would sort of start to slow 0:01:38.080 --> 0:01:41.120 down in the second quarter and then in the third 0:01:41.160 --> 0:01:43.400 and the fourth quarter we will basically be back to normal. 0:01:43.840 --> 0:01:47.640 But what we've seen is that we have seen in 0:01:47.680 --> 0:01:51.200 Europe a lower volume in the total market in both 0:01:51.280 --> 0:01:54.240 the first and the second quarter, and then a return 0:01:54.440 --> 0:01:57.520 taught normality here in the third quarter, but not quite 0:01:57.520 --> 0:02:00.760 getting there. So we see an improvement in Europe, but 0:02:00.800 --> 0:02:02.960 it's not quite back to where we thought it would 0:02:02.960 --> 0:02:06.040 be based on a full normalization and that's basically because 0:02:06.040 --> 0:02:08.640 there's still a bad luck of people not getting to 0:02:08.680 --> 0:02:11.160 the doctor, not getting to the specialist, and therefore not 0:02:11.280 --> 0:02:14.480 going for those prescriptions that we would be expecting they 0:02:14.520 --> 0:02:17.200 would be going for. It is normalizing, it is getting better. 0:02:17.240 --> 0:02:19.639 We are optimistic about the fourth quarter that we will 0:02:19.680 --> 0:02:23.480 see a further sort of increasing volumes in Europe. So 0:02:23.480 --> 0:02:25.440 so that's really the story on Europe. The story on 0:02:25.480 --> 0:02:28.480 the US it is a little different, but basically the same. 0:02:28.600 --> 0:02:33.080 That we did not see the specialist opening up in 0:02:33.080 --> 0:02:35.560 the second quarter the way we were hoping for. So 0:02:35.720 --> 0:02:38.880 we are very dependent on headache specialists for JOVI and 0:02:38.960 --> 0:02:43.240 on psychiatrists for Osteto, and we saw that they were 0:02:43.280 --> 0:02:46.960 opening up their clinics slower. We are now at the 0:02:47.080 --> 0:02:49.480 end of the third quarter here we're getting very close 0:02:49.560 --> 0:02:54.040 to psychiatrist officers being sort of back to where they 0:02:54.280 --> 0:02:57.880 would have been at the end of two thous But 0:02:58.000 --> 0:03:00.600 that natural growth you see of a couple of on 0:03:00.600 --> 0:03:03.520 on patient population and doctor visits, we haven't seen. So 0:03:04.080 --> 0:03:08.160 we've had a setback in the sense that the growing brands, 0:03:08.240 --> 0:03:11.640 we have a joey for prevention of migraine or stead 0:03:11.680 --> 0:03:15.639 of for charter dis Skenesia and Korea in huntress disease. 0:03:15.919 --> 0:03:19.320 They are growing nicely, but the growth slowed down in 0:03:19.360 --> 0:03:21.480 the first and the second quarter. So even though they're 0:03:21.480 --> 0:03:24.320 growing nicely now in the third quarter, the numbers are 0:03:24.320 --> 0:03:26.680 still below what we hope for at the beginning of 0:03:26.680 --> 0:03:29.760 the year. So basically we're optimistic about the growth patterns, 0:03:30.000 --> 0:03:32.959 but the absolute numbers are probably a hundred million below 0:03:33.240 --> 0:03:35.720 what we were hoping for. So core is it by 0:03:36.040 --> 0:03:38.200 the end of this year, the first quarter of next 0:03:38.240 --> 0:03:40.800 year that you anticipate in terms of the numbers at 0:03:40.800 --> 0:03:44.160 their back to pre pandemic levels. When does it happen? 0:03:44.800 --> 0:03:48.000 We anticipate that here in the fourth quarter. The numbers 0:03:48.000 --> 0:03:52.200 in terms of script volumes and the numbers in terms 0:03:52.400 --> 0:03:55.440 so they're normalized numbers, you would say, will be bad 0:03:55.480 --> 0:03:58.480 to pre pandemic levels here in the fourth quarter of 0:04:00.280 --> 0:04:02.480 all right, And we know and that that's for both 0:04:02.480 --> 0:04:05.280 of Europe and North America are one of them. Is 0:04:05.280 --> 0:04:07.120 that for every every region, we know the North American 0:04:07.120 --> 0:04:10.600 market is your biggest market based on revenues, both Europe 0:04:10.680 --> 0:04:13.320 and North America and it and it plays a big 0:04:13.400 --> 0:04:15.640 role for us. So we're really not talking about US 0:04:16.040 --> 0:04:19.279 not having the right you know, market shares. We're gaining 0:04:19.279 --> 0:04:23.720 market shares with Jovi in Europe, we're gaining markets here 0:04:23.760 --> 0:04:26.920 with Osteedo, so we're performing nicely, but the total volume 0:04:26.960 --> 0:04:29.320 in the market is just lower than what we were 0:04:29.360 --> 0:04:31.640 moving for Core Are you a CORE are you? Are 0:04:31.640 --> 0:04:37.279 you confident that people returned to the physical doctor's office, 0:04:37.360 --> 0:04:41.040 the physical psychiatrist office to the same degree that they 0:04:41.080 --> 0:04:43.240 did before the pandemic. Does it ever fully recover with 0:04:43.279 --> 0:04:47.480 the rise of telemedicine. I think the number of consultations 0:04:47.480 --> 0:04:51.680 will fully recover. Some of them will be telemedicine consultations, 0:04:52.040 --> 0:04:55.360 and that is in principle is fine. I mean, the 0:04:55.400 --> 0:04:58.600 main thing is that people have an in depth discussion 0:04:58.640 --> 0:05:03.800 with their psychiatrist, all with their headache specialists, because you 0:05:03.839 --> 0:05:07.440 could say the problem about launching new drugs is that 0:05:07.480 --> 0:05:10.960 you need to communicate with the specialist. So our sales 0:05:10.960 --> 0:05:14.120 reps needs to communicate with the specialist and you need 0:05:14.160 --> 0:05:16.719 the specialist to communicate with the patients in order to 0:05:16.720 --> 0:05:20.360 get the conversions to linu and better products. Hey what oh, 0:05:20.400 --> 0:05:23.120 go ahead, please finish And that can happen of course 0:05:23.279 --> 0:05:26.720 on video, and it can happen physically on average, I 0:05:26.720 --> 0:05:28.760 would say the conversion rate or whatever you want to 0:05:28.800 --> 0:05:31.480 call it, the pull through is higher if you have 0:05:31.600 --> 0:05:35.039 face to face conversations between the doctors and the salesforce, 0:05:35.480 --> 0:05:37.520 and if you have face to face conversations between the 0:05:37.560 --> 0:05:41.520 doctor and the patient. Hey, just got about forty seconds, 0:05:41.520 --> 0:05:43.720 and we'll come back and talk some more. Um in 0:05:43.839 --> 0:05:46.719 terms of growth engines once we get kind of back 0:05:46.760 --> 0:05:50.760 to more normal, is it. Do you see catalyst coming 0:05:50.800 --> 0:05:52.600 for you? Guys? Got about forty seconds and will come 0:05:52.600 --> 0:05:54.720 back and talk some more. In terms of new drugs 0:05:54.760 --> 0:05:57.520 that you can put out to the market, Yeah, it's 0:05:57.520 --> 0:06:00.240 really more of a stato, more of a jovi. And 0:06:00.279 --> 0:06:02.880 then in a long edging we spirit on l Ai 0:06:02.960 --> 0:06:05.960 that we hope to get approved next year. All right, 0:06:06.000 --> 0:06:09.240 And is there a COVID play for you guys? Not 0:06:09.440 --> 0:06:11.200 really not a part of the fact that we are 0:06:11.240 --> 0:06:14.760 distributing COVID vaccines for instance in Israel, and we have 0:06:14.800 --> 0:06:17.839 a lot of Parma suitables that have been used when 0:06:17.839 --> 0:06:21.200 you treat these sort of effects of COVID in intensive 0:06:21.240 --> 0:06:23.080 care units and so on, But we don't have a 0:06:23.120 --> 0:06:26.520 play specifically targeted towards COVID nineteen Hey, core. A few 0:06:26.520 --> 0:06:29.320 things we want to bounce around off of you and 0:06:29.360 --> 0:06:31.800 just get to that. I feel like are out out 0:06:32.279 --> 0:06:35.360 outlying issues, if you will, uh, and curious about your view. 0:06:35.400 --> 0:06:39.679 First of all, earlier this month, you guys had recalled 0:06:39.680 --> 0:06:42.040 more than two and a half million vials of drugs 0:06:42.080 --> 0:06:44.800 that the company that you guys had said may not 0:06:44.920 --> 0:06:49.200 be sterile um and there were used inspectors that discovered 0:06:49.240 --> 0:06:52.360 this at a Tever production plant in California. I think 0:06:52.360 --> 0:06:54.360 there were medicine used to help to cancer. They may 0:06:54.360 --> 0:06:58.600 have contained mold contamination. What's the update on that. Yeah, So, 0:06:58.680 --> 0:07:01.440 first of all, just two correct a few facts. We 0:07:01.560 --> 0:07:06.080 actually ourselves discovered some environmental issues related to mold. It 0:07:06.200 --> 0:07:08.640 was not the case that the products were not sterile, 0:07:09.160 --> 0:07:11.520 and we did recalls in the first quarter and the 0:07:11.560 --> 0:07:14.240 second quarter, and that's something we did based on our 0:07:14.280 --> 0:07:17.840 own internal investigations. And then following that, we had an 0:07:17.880 --> 0:07:22.360 FDA inspection which resulted in a three. And we are 0:07:22.360 --> 0:07:26.240 now addressing all the points raised in the three, working 0:07:26.280 --> 0:07:28.960 together with FDA to secure that we get all the 0:07:29.240 --> 0:07:32.760 remediation done and the factory is still in operation. From 0:07:32.800 --> 0:07:35.280 the point of you, we're still packaging and shipping products, 0:07:35.320 --> 0:07:37.920 but in the sterile area in order to make sure 0:07:37.960 --> 0:07:42.160 that the environment is in completing perfect compliance. We have 0:07:42.200 --> 0:07:46.360 stopped manufacturing for a shorter period where we're doing remediation, 0:07:46.680 --> 0:07:49.320 and we expect to be back manufacturing here at the 0:07:49.400 --> 0:07:51.400 end of the quarter. And this is all done in 0:07:51.520 --> 0:07:55.120 close collaboration with FDA. How far along are you in 0:07:55.200 --> 0:07:56.880 working out all of those issues? How long do you 0:07:56.920 --> 0:07:59.840 think you will be collaborating with the FDA. So some 0:08:00.000 --> 0:08:03.239 of these issues takes, you know, a shorter period to correct. 0:08:03.440 --> 0:08:06.280 Other issues take a longer period. So typically when you 0:08:06.320 --> 0:08:10.680 have a situation like this, before you reach a complete remediation, 0:08:11.000 --> 0:08:13.119 it can be one to two years. But that doesn't 0:08:13.120 --> 0:08:15.960 mean that you can't be manufacturing and supplying your patients 0:08:16.000 --> 0:08:18.760 in the meantime. What's the cost of the company because 0:08:18.760 --> 0:08:21.880 of this the downtime as well as the fixes. So 0:08:22.000 --> 0:08:25.760 it's relatively insignificant. It's not a major manufacturing site, it's 0:08:25.760 --> 0:08:29.600 not a major part of our revenues, so the consequences 0:08:29.640 --> 0:08:33.520 are basically included in our accounting for the third quarter. Hey, 0:08:33.600 --> 0:08:35.480 and also one of the things that we've been watching 0:08:35.480 --> 0:08:36.960 and I want to get you the way in on 0:08:37.000 --> 0:08:39.920 as A Nerve Artists considering selling or spinning off its 0:08:40.120 --> 0:08:44.720 Sanders generic drug business. How do you view that? Is 0:08:44.720 --> 0:08:47.720 that a good thing? Is it something that you're interested 0:08:47.720 --> 0:08:51.520 in purchasing? So I viewed as something and of course 0:08:51.559 --> 0:08:53.120 you have to ask them why they're doing it. I 0:08:53.120 --> 0:08:55.080 wouldn't know that, but if I, if I just took 0:08:55.080 --> 0:08:57.640 it from the outside, it reminds me of what fights 0:08:57.640 --> 0:09:00.040 A did with their up joint unit. They basically we 0:09:00.160 --> 0:09:03.000 had some generic and old products that they spun out 0:09:03.120 --> 0:09:06.960 and put together with my Land into Viatress, And I 0:09:07.000 --> 0:09:09.800 think it looks like Navartists doing the same. And one 0:09:09.840 --> 0:09:12.880 of the you could say arguments you've heard is that, 0:09:12.920 --> 0:09:15.560 of course you get better ray sios, you get better growth. 0:09:15.600 --> 0:09:17.600 RAY shows if you have an old business that you 0:09:17.679 --> 0:09:20.839 spin off and you keep your innovative specialty business, and 0:09:20.960 --> 0:09:22.959 your numbers from that point of view, will look better, 0:09:23.000 --> 0:09:25.600 And that might be the motivation. In terms of us 0:09:26.360 --> 0:09:29.520 thinking about Sanders, we're not really looking into it. We 0:09:29.559 --> 0:09:32.560 don't have any appetite for any major acquisition, simply due 0:09:32.600 --> 0:09:34.760 to the fact that we're focusing on reducing our debt, 0:09:35.160 --> 0:09:37.719 so it's not something we would be interested in. May course, 0:09:37.760 --> 0:09:39.840 I want to get your thoughts on why you're planning 0:09:39.840 --> 0:09:41.800 the four billion dollars in E s G bonds tied 0:09:41.840 --> 0:09:43.920 to medicine access. Why go to E s G route 0:09:43.920 --> 0:09:48.120 with these bonds. Well, basically because we believe in doing 0:09:48.160 --> 0:09:50.640 good for the environment and doing good for patients. That's 0:09:50.679 --> 0:09:54.000 really the foundation of the company. We are the world's 0:09:54.080 --> 0:09:58.160 largest manufacture of medicine. We sell more medicine per day 0:09:58.160 --> 0:10:01.680 than anybody else in the world, and we believe in 0:10:01.840 --> 0:10:05.160 doing good in while doing that. So what we've decided 0:10:05.200 --> 0:10:08.480 to do is to issue these four billion dollars in bonds. 0:10:08.520 --> 0:10:11.320 And just to explain that, we issue four billion dollar 0:10:11.360 --> 0:10:14.240 in bonds five seven, eight years out and we use 0:10:14.320 --> 0:10:17.240 all that money to repay debt, which is you know, 0:10:17.320 --> 0:10:19.839 one to three four years out, so it's really a 0:10:19.960 --> 0:10:21.760 question of moving some of the debt. And the reason 0:10:21.760 --> 0:10:25.040 why we do it is because our debt repayments in 0:10:25.120 --> 0:10:27.280 some of the coming years, for instance in twenty three 0:10:27.800 --> 0:10:31.160 is more than the two billion plus cash flow we 0:10:31.200 --> 0:10:33.160 make every year. So that's just to explain why we 0:10:33.200 --> 0:10:36.200 are making a bond offering. We basically sell bonds in 0:10:36.280 --> 0:10:39.000 order to buy some MOLA bonds, so that we change 0:10:39.040 --> 0:10:40.840 the timing of the debt. The reason why we do 0:10:40.920 --> 0:10:44.480 sustainability link bonds is basically because we can do it 0:10:44.559 --> 0:10:46.959 and because it's good for society to What we do 0:10:47.000 --> 0:10:51.000 on the exers side is really we commit to ensuring 0:10:51.280 --> 0:10:55.600 access to essential medicines in loan middle income countries. Now 0:10:55.720 --> 0:10:59.120 essential medicines, that's a list of medicines that w U 0:10:59.320 --> 0:11:02.240 h O has to find that essential to healthcare. Hey, 0:11:02.240 --> 0:11:04.120 court just got about twenty seconds here. What are the 0:11:04.160 --> 0:11:06.880 metrics though and transparency that you will use to make 0:11:06.920 --> 0:11:09.040 sure that that is E s G and working to 0:11:09.040 --> 0:11:12.280 meet your intended goals? Just quickly. Yeah, So it's already 0:11:12.600 --> 0:11:17.000 certified by external bodies that you know, independent and they 0:11:17.040 --> 0:11:20.560 do this, the Independent Access to Medicine Foundation, the I 0:11:20.600 --> 0:11:23.439 S S s G people, So they look at and say, 0:11:23.559 --> 0:11:26.080 this makes sense. This is bona fide. This is something 0:11:26.200 --> 0:11:28.840 that will be measured and reported and that will help 0:11:29.040 --> 0:11:34.480 societies around the world and the actual kid guys get 0:11:34.480 --> 0:11:38.200 more essential medicines registered in more of these lone middle 0:11:38.240 --> 0:11:42.040 income countries. Okay, we gotta run unfortunately, core Um. Hopefully 0:11:42.040 --> 0:11:43.760 you'll come back and let us know how that's going. 0:11:43.840 --> 0:11:47.080 Course Salties President CEO T have a Pharmaceuticals on the 0:11:47.080 --> 0:11:49.880 phone in New Jersey. It is the Blueberg Big Take Today. 0:11:49.920 --> 0:11:53.400 It's also the upcoming cover story domestic cover story Bloomber 0:11:53.440 --> 0:11:55.960 business Week Magazines, out tomorrow online at business Week dot 0:11:56.000 --> 0:11:58.760 com on the Bloomberg terminal and Tim It's about the 0:11:58.800 --> 0:12:01.600 impact the pandemic has really had on the American worker, 0:12:01.640 --> 0:12:04.319 for better or worse, and for better perhaps in terms 0:12:04.320 --> 0:12:06.360 of some of the lasting leverage we could see when 0:12:06.360 --> 0:12:10.160 it comes to unemployment reform. Josh Idolsen wrote the story's 0:12:10.240 --> 0:12:12.800 labor reporter for Bloomberg News. He joins us from the 0:12:12.800 --> 0:12:17.600 Bloomberg nine sixties studio in San Francisco. Josh, congratulations on 0:12:17.920 --> 0:12:21.480 a great story. Along with the great resignation and strike toober, 0:12:21.600 --> 0:12:25.000 jobless Americans are fighting for unemployment reform that could translate 0:12:25.040 --> 0:12:29.600 into lasting leverage, but it hasn't yet begun to translate. 0:12:29.960 --> 0:12:32.560 Take us into it. Thanks for having me. We are 0:12:32.600 --> 0:12:37.040 at this rare, turbulent moment in the workplace in the US. 0:12:37.120 --> 0:12:42.360 You have workers who labored through the pandemic, who shouldered 0:12:42.400 --> 0:12:45.160 great risk to themselves and to their families, and didn't 0:12:45.160 --> 0:12:48.520 get the compensation or the safety protections that they felt 0:12:48.520 --> 0:12:54.040 they deserved. You have workers who were benched involuntarily and 0:12:54.320 --> 0:12:58.200 saw an unemployment system that they thought should be available 0:12:58.360 --> 0:13:03.160 and should be reliable fing them. You have lots of workers, 0:13:03.200 --> 0:13:06.040 historic numbers choosing to quit their jobs. So this is 0:13:06.040 --> 0:13:09.280 a moment of both exit and voice. Some people are 0:13:09.840 --> 0:13:12.880 leaving their jobs, some people are trying to ban together, 0:13:13.160 --> 0:13:16.240 and in the places where workers have a union in 0:13:16.280 --> 0:13:21.240 the United States, we're seeing large numbers of workers authorized strikes, 0:13:21.800 --> 0:13:26.680 making October Striketober, as some put it. So this is 0:13:26.720 --> 0:13:30.160 all playing out at a moment when we have perhaps 0:13:30.200 --> 0:13:33.720 the last big bill of the Democrats, last stretch for 0:13:33.760 --> 0:13:38.680 a while of being able to legislate unilaterally being wrangled over. 0:13:38.800 --> 0:13:43.000 And it's one that could make permanent changes in ways 0:13:43.280 --> 0:13:47.440 that would change workers leverage, including the unemployment system. That 0:13:47.559 --> 0:13:51.760 there's a relatively unusual effort a foot right now to 0:13:52.200 --> 0:13:56.080 organize jobless workers to transform So uh, norm and norma 0:13:56.160 --> 0:13:59.320 Ray moment. Everybody go back and google that movie. But 0:13:59.360 --> 0:14:02.480 I mean, is this a big move forward then, because 0:14:02.480 --> 0:14:06.760 we've seen unions right declining in power and in uh 0:14:06.800 --> 0:14:11.240 in membership. But is this potentially a critical change when 0:14:11.240 --> 0:14:14.000 it comes to the power of the worker. It's a 0:14:14.040 --> 0:14:17.160 moment of possibility, and in some ways it has the 0:14:17.160 --> 0:14:21.080 flavor of the way one historian put it to me 0:14:21.200 --> 0:14:24.360 is when you have a national mobilization like a world 0:14:24.360 --> 0:14:27.520 war or a pandemic, you have all of these workers 0:14:27.520 --> 0:14:31.040 who get the country through it and bottle up some 0:14:31.160 --> 0:14:35.280 frustrations along the way, and then afterwards expect a debt 0:14:35.320 --> 0:14:38.280 to be paid back. We're in a different political moment 0:14:38.280 --> 0:14:42.840 when where there's attention to essential workers, into inequality, into 0:14:42.920 --> 0:14:47.040 labor that hasn't been there at times, and we're in 0:14:47.040 --> 0:14:51.160 a moment where many workers, like people that I talked 0:14:51.200 --> 0:14:53.560 to in the film and TV industry over the past week, 0:14:54.320 --> 0:14:56.920 have higher expectations than they used to, have a different 0:14:56.960 --> 0:15:00.320 consciousness both from the work they did during the endemic, 0:15:00.400 --> 0:15:02.600 but also from their time out of work during the 0:15:02.600 --> 0:15:07.160 shutdowns about the importance of their own time, and feel 0:15:07.320 --> 0:15:10.040 unwilling to accept some of the things they did in 0:15:10.080 --> 0:15:13.640 the past in terms of how work dominates their schedules 0:15:13.640 --> 0:15:16.240 and encroaches on their personal lives. Josh, for the story, 0:15:16.240 --> 0:15:18.320 you spoke to people in several different parts of the country. 0:15:18.320 --> 0:15:21.720 I'm wondering though the Washington d C. Connection. The lawmakers 0:15:21.880 --> 0:15:24.640 who are really on the side of labor right now, 0:15:24.680 --> 0:15:29.560 Senator Ron Wyden, Alexandroocazio Cortez, representative from New York. What 0:15:29.600 --> 0:15:33.720 are they doing so? Widen, the chairman of the Senate 0:15:33.760 --> 0:15:37.360 Finance Committee, told workers that he will fight like heck 0:15:37.480 --> 0:15:41.960 to get something that is at least a down payment 0:15:42.200 --> 0:15:46.920 on fundamental change to the unemployment system into the Reconciliation bill. 0:15:47.120 --> 0:15:50.680 There are things that could be done that would address 0:15:51.080 --> 0:15:54.920 some of the issues that workers have been raising over 0:15:54.960 --> 0:15:57.640 the years, and that some experts have been raising for 0:15:57.720 --> 0:16:01.040 years without a lot of attention in Washington areas, like 0:16:01.640 --> 0:16:06.080 the exclusion of many workers from the unemployment system and 0:16:06.680 --> 0:16:10.800 the race amongst states to cut off benefits more quickly. Well, 0:16:10.840 --> 0:16:12.640 and I always think it's important when we do a 0:16:12.680 --> 0:16:14.440 story like this and you do it is and you 0:16:14.480 --> 0:16:16.680 go there, Josh, in terms of what the u S 0:16:16.680 --> 0:16:18.840 system is may be compared to what we see in 0:16:18.880 --> 0:16:22.600 other countries, and and it's meager, right, in terms of 0:16:22.640 --> 0:16:25.040 the benefits compared to what other countries do for workers, 0:16:25.480 --> 0:16:28.320 that's right. The maximum months that people can get benefits 0:16:28.360 --> 0:16:32.400 here are lower than you see elsewhere. In peer O E. C. 0:16:32.520 --> 0:16:36.720 D countries. It's a pretty stingy system in the US, 0:16:36.840 --> 0:16:40.800 and unemployment insurance, as stingy and unreliable as it is, 0:16:40.880 --> 0:16:45.040 is still controversial in part because it does give people 0:16:45.120 --> 0:16:47.960 a little more leverage to hold out a little longer 0:16:48.000 --> 0:16:51.280 against a mediocre offer they don't want. Well, that's what 0:16:51.360 --> 0:16:53.560 we see happening in the labor force right now, right 0:16:53.920 --> 0:16:58.280 this imbalance between supply and demand. Companies telling us each 0:16:58.280 --> 0:17:01.040 and every day they're having trouble finding workers, yet workers 0:17:01.080 --> 0:17:02.840 aren't ready to get off the sidelines and go take 0:17:02.880 --> 0:17:08.440 those jobs. Well, keep in mind, many workers don't qualify 0:17:08.520 --> 0:17:12.760 for unemployment benefits, and many circumstances where you leave your 0:17:12.840 --> 0:17:15.960 job don't qualify you to get the benefits, and many 0:17:15.960 --> 0:17:20.359 people who are receiving benefits now are no longer eligible, 0:17:20.480 --> 0:17:22.480 either because of the federal cut off or because of 0:17:22.520 --> 0:17:25.880 state cutoffs that happened before that. But that said, there 0:17:25.960 --> 0:17:30.159 is research that where there are more unemployment benefits, workers 0:17:30.200 --> 0:17:32.800 in some cases are able to hold out and choose 0:17:32.840 --> 0:17:35.359 to hold out for jobs that pay a little better. 0:17:35.920 --> 0:17:38.840 And that, depending who you ask, is one of the 0:17:38.880 --> 0:17:42.280 best or worst things about having this system. So the 0:17:42.280 --> 0:17:46.040 fight about unemployment is in part a fight about leverage 0:17:46.240 --> 0:17:49.959 in the labor market. And we did this cover story 0:17:50.000 --> 0:17:52.840 in part because right now there's a fight over workers 0:17:52.880 --> 0:17:55.840 leverage that's happening on picket lines, and there's a fight 0:17:55.960 --> 0:17:59.680 over workers leverage that's happening in Congress at the same time. Well, 0:17:59.720 --> 0:18:02.280 and probably last question, Josh, but I am wondering about 0:18:02.280 --> 0:18:04.920 the political will, right, I mean, politicians are always thinking 0:18:04.920 --> 0:18:08.920 about their next ballot and also the support to keep 0:18:08.960 --> 0:18:12.879 their election or re election race is going. Um, what 0:18:13.040 --> 0:18:15.119 is the political will to pick up on something like this, 0:18:15.240 --> 0:18:17.359 because are these people who are fighting for some of 0:18:17.359 --> 0:18:19.360 these benefits? Are these the people who really go out 0:18:19.400 --> 0:18:23.400 and vote? That is part of why this organization Unemployed 0:18:23.440 --> 0:18:26.680 Action has come into existence is that the jobless are 0:18:26.720 --> 0:18:31.080 not usually seen as a prominent political constituency that people 0:18:31.119 --> 0:18:34.800 have to cater to, and being unemployed is often not 0:18:35.160 --> 0:18:38.960 how someone wants to self identify, and it's generally not 0:18:39.200 --> 0:18:41.200 something they want to continue to be true of them. 0:18:41.240 --> 0:18:45.600 And so this group has been struggling against the tide 0:18:45.680 --> 0:18:50.480 in many ways to create a forceful political constituency and 0:18:50.520 --> 0:18:53.680 one that people continue to be active with even after 0:18:53.760 --> 0:18:56.480 they've personally found another job. Josh just in the last 0:18:56.480 --> 0:18:58.520 thirty seconds that we have with you, at what point 0:18:58.520 --> 0:19:00.680 will you know? At what point will we know if 0:19:00.680 --> 0:19:03.600 this is a moment like post World War two in 0:19:03.680 --> 0:19:05.880 terms of power for the labor movement, And just got 0:19:05.880 --> 0:19:08.240 about twenty seconds. We're going to have to see what 0:19:08.359 --> 0:19:12.160 happens in Congress as well as on the picket lines 0:19:12.280 --> 0:19:14.359 over the next months. But labor has been in a 0:19:14.359 --> 0:19:18.080 real catch twenty two of needing more members and needing 0:19:18.160 --> 0:19:21.000 legal change, and people are desperate for a way to 0:19:21.040 --> 0:19:23.200 break out of that. All right, it's the domestic cover 0:19:23.400 --> 0:19:26.159 story of Bloomberg Business Week. It's written by Bloomberg News 0:19:26.240 --> 0:19:28.479 labor reporter Josh Idolsin, so be sure to check it out. 0:19:28.520 --> 0:19:30.320 It's also on the Bloomberg terminal and you can find 0:19:30.320 --> 0:19:32.840 it at Bloomberg dot com and business week dot com. 0:19:33.040 --> 0:19:35.520 Good story, Josh, and congratulations on the big take. But 0:19:35.640 --> 0:19:39.560 just as another reminder of the pandemic impact in our world. 0:19:39.840 --> 0:19:49.679 All Right, you're listening to Bloomberg Radio. This is Bloomberg 0:19:49.720 --> 0:19:53.359 Business Week with Carol Masser and Bloomberg Quick Takes Tim 0:19:53.440 --> 0:19:57.080 Stinovik on Bloomberg Radio. Well, we've brought her in to 0:19:57.119 --> 0:19:59.000 talk about Robin and but we've really been talking about 0:19:59.080 --> 0:20:02.800 taxes and tax billionaires behind the scenes around our table 0:20:02.880 --> 0:20:07.640 here in our studio. Tax policy expert too. She knows 0:20:07.720 --> 0:20:10.399 Robin Hood. She knows tax policy. She is our investing 0:20:10.440 --> 0:20:13.639 reporter at Bloomberg News here in her interactive broker studio. 0:20:13.800 --> 0:20:15.480 Let's talk though, a little bit about Robin Hood. It's 0:20:15.480 --> 0:20:18.600 down about ten point six percent in today's trade. Reported 0:20:18.640 --> 0:20:21.520 earnings after the close. I think it's below right easily. 0:20:21.560 --> 0:20:24.359 It's I p O price. So there you have it. 0:20:24.880 --> 0:20:28.560 Revenue fell short of Wall Street estimates, cryptocurrency transactions plunging 0:20:28.600 --> 0:20:31.439 from the preceding period. What do we need to know? Annie, 0:20:31.840 --> 0:20:35.959 So robin Hood's earnings yesterday did disappoint, and you're seeing 0:20:36.119 --> 0:20:39.560 the effect on the share price today. Like you mentioned, 0:20:39.600 --> 0:20:43.000 the stocks down ten percent. The real story was around 0:20:43.080 --> 0:20:47.560 crypto transaction revenue, which was seventy eight percent lower versus 0:20:47.680 --> 0:20:51.040 the previous quarters, like it disappeared overnight. Yeah. And the 0:20:51.080 --> 0:20:53.480 reason we saw that, of course, is we there was 0:20:53.520 --> 0:20:56.800 this gigantic run up in doge coin in Q two 0:20:56.880 --> 0:20:59.600 and that kind of abated. So now the big question 0:20:59.720 --> 0:21:04.040 is that users have is will Robin Hood add more cryptocurrencies. 0:21:04.080 --> 0:21:06.560 They want Sheba, a new coin which is completely different 0:21:06.600 --> 0:21:09.920 from doj coin, and they've struck a more cautious approach, 0:21:10.080 --> 0:21:13.120 completely different, but still a joke, exactly, a different joke 0:21:13.240 --> 0:21:17.080 about Sheba. You news it's a mean coin. Yeah, yeah, exactly, 0:21:17.119 --> 0:21:20.600 like wrapped up in a crypto. I was particularly struck 0:21:20.680 --> 0:21:23.959 by the decline in crypto because bitcoins price had gone up. 0:21:24.000 --> 0:21:26.840 Do any of us own it? No? No, no, no, 0:21:28.600 --> 0:21:33.879 you know, I don't know. No, shea over here. But 0:21:33.920 --> 0:21:35.920 I was particularly struck by this when these earnings crossed 0:21:36.000 --> 0:21:38.560 yesterday because the price of bitcoin had gone up by 0:21:38.880 --> 0:21:42.040 something along the lines of since the company last reported earnings, 0:21:42.240 --> 0:21:43.879 And my thought was, Okay, well, doesn't that get more 0:21:43.880 --> 0:21:45.879 people off the sidelines and more people trading crypto and 0:21:45.920 --> 0:21:48.640 more crypto revenue for the company. But no, So across 0:21:48.680 --> 0:21:53.160