1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 2 00:00:08,760 --> 00:00:11,440 Speaker 1: Along with my co host Lisa A. Bramowitz. Each day 3 00:00:11,480 --> 00:00:15,000 Speaker 1: we bring you the most important, noteworthy, and useful interviews 4 00:00:15,040 --> 00:00:17,520 Speaker 1: for you and your money, whether you're at the grocery 5 00:00:17,560 --> 00:00:20,560 Speaker 1: store or the trading floor. Find the Bloomberg p m 6 00:00:20,680 --> 00:00:27,520 Speaker 1: L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot Com. 7 00:00:27,520 --> 00:00:30,200 Speaker 1: There are some out there who are waiting for j. 8 00:00:30,320 --> 00:00:34,120 Speaker 1: Powell to take the podium on Wednesday at the Economic 9 00:00:34,159 --> 00:00:37,800 Speaker 1: Forum in New York and say, you know what, guys, 10 00:00:38,159 --> 00:00:39,960 Speaker 1: We're going to take a little pause. We've seen the 11 00:00:40,000 --> 00:00:43,680 Speaker 1: stock sell off and weren't going to make sure that 12 00:00:43,800 --> 00:00:46,440 Speaker 1: we don't go too quickly. Our next guest says, not 13 00:00:46,560 --> 00:00:49,360 Speaker 1: so fast on author, as a senior editor for Bloomberg Markets, 14 00:00:49,360 --> 00:00:51,239 Speaker 1: we are so lucky that he joins us here in 15 00:00:51,320 --> 00:00:55,279 Speaker 1: our interactive brokers studios in New York. John, you think 16 00:00:55,320 --> 00:00:58,320 Speaker 1: that this is an implausible scenario? Is that right? The 17 00:00:59,120 --> 00:01:02,800 Speaker 1: fit would would to call off change its course just 18 00:01:03,000 --> 00:01:06,600 Speaker 1: because of a sell off in the stock markets just 19 00:01:06,840 --> 00:01:09,760 Speaker 1: the extent we've had so far, or frankly, if it 20 00:01:09,840 --> 00:01:15,880 Speaker 1: fell another from here, Yes, I find very implausible. They've 21 00:01:16,280 --> 00:01:19,840 Speaker 1: learned the lesson from the last two cycles. The FED 22 00:01:20,000 --> 00:01:24,440 Speaker 1: got it wrong by being too easy and allowing very 23 00:01:24,480 --> 00:01:29,119 Speaker 1: big bubbles to inflate. That hurt when they burst tech 24 00:01:29,160 --> 00:01:32,720 Speaker 1: stocks the first time and then credit the second. They 25 00:01:32,760 --> 00:01:37,360 Speaker 1: will at least make a different mistake this time. You know, 26 00:01:37,400 --> 00:01:39,840 Speaker 1: at least themistic love it. They're not going to make 27 00:01:39,840 --> 00:01:44,080 Speaker 1: the same mistake at least. What is your reaction to 28 00:01:44,319 --> 00:01:51,080 Speaker 1: investment professionals who blame the Federal Reserve either because they 29 00:01:51,160 --> 00:01:57,480 Speaker 1: don't raise interest rates enough or because they have raised 30 00:01:57,480 --> 00:02:01,960 Speaker 1: them too much already. When they use the Federal Reserve 31 00:02:02,440 --> 00:02:06,360 Speaker 1: as a whipping post for why the market behaves in 32 00:02:06,360 --> 00:02:12,040 Speaker 1: a certain way, I find it a little rich personally. 33 00:02:12,200 --> 00:02:16,440 Speaker 1: I mean, certainly we all of us way of yes, exactly, 34 00:02:17,200 --> 00:02:20,000 Speaker 1: try to be nice. But those of us around this table, 35 00:02:20,040 --> 00:02:23,519 Speaker 1: we all make a living commenting on markets, which means 36 00:02:23,560 --> 00:02:25,359 Speaker 1: that we spend a lot of time commenting on the FED. 37 00:02:25,360 --> 00:02:28,000 Speaker 1: Because the FED is an incredibly important player. All of 38 00:02:28,040 --> 00:02:32,840 Speaker 1: that is evident generally speaking, However, the FED is not 39 00:02:33,320 --> 00:02:37,840 Speaker 1: just an actor, but it's also a passive recipient of conditions. 40 00:02:37,840 --> 00:02:42,280 Speaker 1: It does have to respond, and while it's I think 41 00:02:42,280 --> 00:02:45,639 Speaker 1: it's fair to say the single most powerful actor in markets. 42 00:02:45,680 --> 00:02:50,799 Speaker 1: It's not omnipotent by any leap of the imagination at 43 00:02:50,840 --> 00:02:54,919 Speaker 1: the moment. It If you really think that the FED 44 00:02:55,040 --> 00:03:01,240 Speaker 1: is already overtightening, that is I think ridiculous given the 45 00:03:01,320 --> 00:03:05,239 Speaker 1: historically how low interest rates still are. And one I 46 00:03:05,280 --> 00:03:08,240 Speaker 1: don't want to comment on any particular politicians you might 47 00:03:08,280 --> 00:03:11,520 Speaker 1: be taking any particular positions to say that the FED 48 00:03:11,880 --> 00:03:14,919 Speaker 1: should be hiking less than it is when we can 49 00:03:14,919 --> 00:03:17,960 Speaker 1: all agree that it's still being very accommodative, means that 50 00:03:18,040 --> 00:03:21,600 Speaker 1: you're saying the economy is a lot weaker than certain 51 00:03:21,639 --> 00:03:23,799 Speaker 1: politicians might be claiming. There is there is no way 52 00:03:23,840 --> 00:03:26,720 Speaker 1: out of that. Either the Fed is doing the right 53 00:03:26,760 --> 00:03:28,720 Speaker 1: thing or if it's going too far, that's because the 54 00:03:28,720 --> 00:03:33,399 Speaker 1: economy is in real trouble if it can't stand interest rates. 55 00:03:33,440 --> 00:03:37,200 Speaker 1: So I do have serious problems with people who say 56 00:03:37,240 --> 00:03:39,760 Speaker 1: that that the Fed is already going too far, and 57 00:03:39,880 --> 00:03:44,480 Speaker 1: that the significant problem we have all right, well, just 58 00:03:44,760 --> 00:03:48,160 Speaker 1: looking to one aspect of the tightening, the balance sheet 59 00:03:48,200 --> 00:03:51,200 Speaker 1: reduction that gets less attention than the raid high exprests 60 00:03:51,240 --> 00:03:53,920 Speaker 1: perhaps shouldn't. And there's still a big question, which is 61 00:03:54,000 --> 00:03:56,400 Speaker 1: at what point will the FEDS say all right enough, 62 00:03:56,680 --> 00:03:58,720 Speaker 1: We've done enough rolling off here, and we're going to 63 00:03:58,800 --> 00:04:00,960 Speaker 1: keep our balance sheet at what two trillion, three trillion? 64 00:04:00,920 --> 00:04:02,680 Speaker 1: I mean, we don't really have a number, right we 65 00:04:02,720 --> 00:04:05,160 Speaker 1: We're gonna get guidance on that this week. Yes, but 66 00:04:06,120 --> 00:04:09,400 Speaker 1: I would I suspect this could be where we get 67 00:04:09,520 --> 00:04:13,520 Speaker 1: quite an ugly surprise. If you look through the volumes 68 00:04:13,800 --> 00:04:16,280 Speaker 1: of FED speak that are out there, and FED governors, 69 00:04:16,279 --> 00:04:20,039 Speaker 1: as they should, are fairly transparent at least in thinking 70 00:04:20,080 --> 00:04:24,239 Speaker 1: out loud, there is almost no thinking out loud about 71 00:04:24,279 --> 00:04:32,040 Speaker 1: the balance sheet. Just none. The implicit, implicit uh conclusion 72 00:04:32,120 --> 00:04:36,600 Speaker 1: you can draw from their public pronouncements is that on 73 00:04:37,000 --> 00:04:40,839 Speaker 1: the balance sheet reduction they are on autopilot. It is 74 00:04:41,120 --> 00:04:43,640 Speaker 1: the ideas of the balance sheet is going to very 75 00:04:43,720 --> 00:04:48,680 Speaker 1: steadily reduced month over month. You don't hear. You hear 76 00:04:49,120 --> 00:04:54,480 Speaker 1: plenty of risks, potential risks on the horizon being listed 77 00:04:54,839 --> 00:04:59,560 Speaker 1: by Powell and the other governors, resource as resource reserve 78 00:05:00,040 --> 00:05:03,000 Speaker 1: reserve scarcity is not among them. You hear plenty of 79 00:05:03,040 --> 00:05:07,120 Speaker 1: people complaining about already about a shortage of dollars in 80 00:05:07,160 --> 00:05:10,240 Speaker 1: the market. You do not hear that reflected by fit speak. 81 00:05:10,360 --> 00:05:12,240 Speaker 1: And just real quick here to give a sense of 82 00:05:12,440 --> 00:05:15,479 Speaker 1: the balance sheet. The balance sheet has been reduced from 83 00:05:15,480 --> 00:05:18,080 Speaker 1: four and a half trillion at its peak in January 84 00:05:18,960 --> 00:05:21,880 Speaker 1: down to four point one trillion dollars, so we have 85 00:05:21,960 --> 00:05:23,760 Speaker 1: seen a bit of a roll off, but there's still 86 00:05:23,800 --> 00:05:25,919 Speaker 1: a lot more to go. If they want to write, 87 00:05:25,960 --> 00:05:28,400 Speaker 1: I mean, this has been you know, yes, a decline, 88 00:05:28,640 --> 00:05:32,880 Speaker 1: but it's completely realistic to think that they will keep 89 00:05:32,920 --> 00:05:37,080 Speaker 1: doing this for more than another year, and the balance 90 00:05:37,120 --> 00:05:40,880 Speaker 1: sheet would still be utterly enormous in historic terms. But 91 00:05:41,400 --> 00:05:45,159 Speaker 1: the change at the margin, which is all important, I suspect, 92 00:05:45,360 --> 00:05:47,640 Speaker 1: is much more what people should be worrying about than 93 00:05:47,720 --> 00:05:50,320 Speaker 1: exactly how many more changes we get in the target 94 00:05:50,320 --> 00:05:54,479 Speaker 1: fit funds rate. This may sound bizarre, but is there 95 00:05:54,560 --> 00:05:58,039 Speaker 1: any value in noting the difference between two thousand and 96 00:05:58,040 --> 00:06:02,440 Speaker 1: eight and twenty eighteen when it comes to the accessibility 97 00:06:02,720 --> 00:06:06,640 Speaker 1: of social media apps and the ability to report crises. 98 00:06:07,320 --> 00:06:11,719 Speaker 1: When the two thousand eight crisis was broadcast mainly via 99 00:06:11,800 --> 00:06:15,640 Speaker 1: television and traditional media, do you think that it means 100 00:06:15,720 --> 00:06:20,600 Speaker 1: something different? Now? Very much so. I mean my farewell piece, 101 00:06:20,640 --> 00:06:22,919 Speaker 1: but when I'm still at the Financial Times, my farewell 102 00:06:22,960 --> 00:06:28,120 Speaker 1: piece was about how I remember it. Yeah, I it's 103 00:06:28,160 --> 00:06:31,440 Speaker 1: blazoned into my mind that that that I went to 104 00:06:31,480 --> 00:06:35,080 Speaker 1: I went to my city branch on possibly the worst 105 00:06:35,160 --> 00:06:37,599 Speaker 1: day of the crisis, and found there were dozens of 106 00:06:37,720 --> 00:06:42,359 Speaker 1: very well dressed Wall Streeters evidently shifting money around to 107 00:06:42,360 --> 00:06:46,280 Speaker 1: make sure they still had to UH insured accounts. And 108 00:06:46,480 --> 00:06:50,279 Speaker 1: we wrote a very, very very negative story that day. 109 00:06:50,320 --> 00:06:53,800 Speaker 1: But I didn't actually do what I might conceivably do 110 00:06:53,920 --> 00:06:55,599 Speaker 1: now and which somebody definitely would do, which is just 111 00:06:55,920 --> 00:06:58,719 Speaker 1: take a photo of a bunch of panicking Wall Streeters 112 00:06:58,720 --> 00:07:00,240 Speaker 1: in their suits trying to get their money out of 113 00:07:00,240 --> 00:07:05,480 Speaker 1: a bank. Such a photo now on on that social 114 00:07:05,480 --> 00:07:09,000 Speaker 1: media could have could have been the spark that lit 115 00:07:09,440 --> 00:07:12,480 Speaker 1: an even worse flame. So yes, I think that's a 116 00:07:12,600 --> 00:07:15,640 Speaker 1: very worrying scenario. I don't think it has a particularly 117 00:07:15,640 --> 00:07:19,800 Speaker 1: big effect, bar you know, the president's focal diplomacy over 118 00:07:20,480 --> 00:07:23,080 Speaker 1: over Twitter, which which the FED seems to be ignoring 119 00:07:23,080 --> 00:07:25,240 Speaker 1: so far. But so far, I don't think it makes 120 00:07:25,320 --> 00:07:28,120 Speaker 1: a great difference. But if things get as nerve wracking 121 00:07:28,120 --> 00:07:30,080 Speaker 1: as they did in two thousand and eight, it could 122 00:07:30,120 --> 00:07:33,240 Speaker 1: be critical. Just real quick, here is your sense that 123 00:07:33,320 --> 00:07:36,120 Speaker 1: if the fired were to indicate that they are ready 124 00:07:36,120 --> 00:07:38,280 Speaker 1: to slow down a little bit, or that they're showing 125 00:07:38,280 --> 00:07:41,200 Speaker 1: more concern. Do you think that that will correspond with 126 00:07:41,280 --> 00:07:47,920 Speaker 1: a substantial pop in US stocks? Quite? No, I I 127 00:07:48,080 --> 00:07:51,160 Speaker 1: suspect not. I mean in the in the very short term, 128 00:07:51,440 --> 00:07:54,760 Speaker 1: if you have your operative word is substantial. No. If 129 00:07:54,800 --> 00:07:57,760 Speaker 1: if we get if we get unusually dovish FED speak 130 00:07:58,200 --> 00:08:00,560 Speaker 1: at some point in the next week, then yes you'll 131 00:08:00,560 --> 00:08:03,680 Speaker 1: get a pop on that day. But ultimately I've got 132 00:08:03,760 --> 00:08:05,840 Speaker 1: enough trust in the FIT that the only reason I believe, 133 00:08:05,840 --> 00:08:07,480 Speaker 1: the only reason they'd be doing that is because the 134 00:08:07,560 --> 00:08:12,360 Speaker 1: underlying data, particularly from China, will be worrying, and therefore 135 00:08:12,360 --> 00:08:15,000 Speaker 1: that would cancel out the effects of the the extra 136 00:08:15,040 --> 00:08:17,520 Speaker 1: devisist from the faith. Thank you very much for spending 137 00:08:17,560 --> 00:08:20,240 Speaker 1: time with us. As always, John Authors is a senior 138 00:08:20,360 --> 00:08:25,240 Speaker 1: editor for Bloomberg Markets, talking about the Federal Reserve potential 139 00:08:25,480 --> 00:08:31,800 Speaker 1: rate increases and what they might do to the US economy. 140 00:08:33,920 --> 00:08:37,040 Speaker 1: Facebook the shares of Facebook. They are higher right now 141 00:08:37,080 --> 00:08:39,120 Speaker 1: by about three and a half dollars a hundred and 142 00:08:39,120 --> 00:08:42,320 Speaker 1: thirty five dollars a share for Facebook joining us as 143 00:08:42,400 --> 00:08:46,120 Speaker 1: David Garretty, chief market strategist for laid Law and Company, 144 00:08:46,600 --> 00:08:50,920 Speaker 1: and you can follow David on Twitter at g v 145 00:08:51,080 --> 00:08:56,040 Speaker 1: A Research David Garritty speak to the issues that surround 146 00:08:56,160 --> 00:08:59,960 Speaker 1: corporate governance at Facebook. This is coming at a time 147 00:09:00,000 --> 00:09:04,240 Speaker 1: time when the report is that Britain's Parliament has actually 148 00:09:04,320 --> 00:09:09,880 Speaker 1: seized some confidential Facebook documents from the developer of what 149 00:09:10,040 --> 00:09:15,600 Speaker 1: is described as a now defunct bikini photos searching app. 150 00:09:16,360 --> 00:09:20,960 Speaker 1: And this has to do with data protection policies. What 151 00:09:21,080 --> 00:09:25,320 Speaker 1: does this have to do with Facebook's corporate governance? In 152 00:09:25,400 --> 00:09:27,520 Speaker 1: terms of looking at Facebook's corporate governance, I mean, it's 153 00:09:27,520 --> 00:09:30,280 Speaker 1: pretty much, very clearly set forth in the prospectives when 154 00:09:30,280 --> 00:09:33,600 Speaker 1: the company went public back in two thousand twelve that 155 00:09:33,720 --> 00:09:38,120 Speaker 1: Mark Zuckerberg would have because of many class dual classes 156 00:09:38,160 --> 00:09:40,800 Speaker 1: of stock, that he would have supervoting rights. And then 157 00:09:40,800 --> 00:09:43,920 Speaker 1: the company since then had introduced another class of stock 158 00:09:44,000 --> 00:09:47,920 Speaker 1: that had no votes at all. So effectively, Zuckerberg, for 159 00:09:48,120 --> 00:09:51,360 Speaker 1: owning about a five percent economic interest in the company, 160 00:09:51,720 --> 00:09:55,400 Speaker 1: has you know, majority voting control. He also has the 161 00:09:55,520 --> 00:09:58,680 Speaker 1: right to be the sole person to select who his 162 00:09:58,800 --> 00:10:03,800 Speaker 1: successor as CEO will be. So from that standpoint, Zuckerberg's 163 00:10:03,920 --> 00:10:08,680 Speaker 1: hold on corporate governance at Facebook is effectively a hammer lock. 164 00:10:08,880 --> 00:10:11,439 Speaker 1: It's impregnable. There's no way that you're going to get 165 00:10:11,520 --> 00:10:15,160 Speaker 1: rid of Mark Zuckerberg anytime soon, unless he chooses to 166 00:10:15,160 --> 00:10:18,640 Speaker 1: step down for some reason. Um. Obviously there's a question 167 00:10:18,679 --> 00:10:21,600 Speaker 1: here does this pierce the corporate veil when it comes 168 00:10:21,640 --> 00:10:24,559 Speaker 1: to looking at some of the liabilities that Facebook may face. 169 00:10:24,760 --> 00:10:27,839 Speaker 1: But going specifically to the case that you mentioned that 170 00:10:27,920 --> 00:10:31,480 Speaker 1: was being examined by Parliament and the invasion of privacy rights, 171 00:10:31,559 --> 00:10:35,679 Speaker 1: it ties into the committee in Parliament that is investigating 172 00:10:36,160 --> 00:10:39,640 Speaker 1: what Facebook had done in terms of providing user information 173 00:10:40,000 --> 00:10:45,840 Speaker 1: to Cambridge Analytica for the purposes of interference or campaigning 174 00:10:45,880 --> 00:10:51,479 Speaker 1: around or targeting advertising around not only the Brexit campaign 175 00:10:52,040 --> 00:10:55,280 Speaker 1: but also the two thousand sixteen elections. And so from 176 00:10:55,320 --> 00:10:58,640 Speaker 1: that standpoint, if we look in the context of Europe 177 00:10:58,720 --> 00:11:03,000 Speaker 1: that's been introduced introduced new privacy regulations, this is separate 178 00:11:03,000 --> 00:11:06,240 Speaker 1: and distinct and is very much focused on bad actors 179 00:11:06,280 --> 00:11:08,880 Speaker 1: such as Cambridge Analytica. Okay, but when you talk about 180 00:11:08,920 --> 00:11:12,800 Speaker 1: regulators kind of stepping in our lawmakers investigating Facebook and 181 00:11:12,880 --> 00:11:16,720 Speaker 1: its role in some recent elections, I just have to 182 00:11:16,760 --> 00:11:19,760 Speaker 1: wonder what could come out of that. How much does 183 00:11:19,800 --> 00:11:23,640 Speaker 1: this sort of threaten Facebook's existence in its current form, 184 00:11:23,720 --> 00:11:25,680 Speaker 1: and how much is this already praised in with Facebook 185 00:11:25,679 --> 00:11:29,120 Speaker 1: shares down more than this year. True. No, I mean 186 00:11:29,160 --> 00:11:31,640 Speaker 1: you certainly have seen the stock come off. You know what, 187 00:11:31,800 --> 00:11:35,400 Speaker 1: it was about two dollars a share back and um 188 00:11:35,640 --> 00:11:38,360 Speaker 1: July and then has since sort of come in to 189 00:11:38,480 --> 00:11:41,160 Speaker 1: a level about one forty, so it's lost about a third. 190 00:11:41,400 --> 00:11:43,640 Speaker 1: UM And yeah, Baron's over the weekend and come up 191 00:11:43,640 --> 00:11:45,439 Speaker 1: with a favorable article saying, here's a company on the 192 00:11:45,480 --> 00:11:49,240 Speaker 1: double sales, but it's cheaper than Walmart. Um. The issue 193 00:11:49,280 --> 00:11:52,240 Speaker 1: here is is that you know, Walmart's business model isn't 194 00:11:52,320 --> 00:11:57,400 Speaker 1: under regulatory scrutiny. Um. You have a situation with Facebook 195 00:11:57,480 --> 00:12:01,560 Speaker 1: where you know the company arguably given how important it's 196 00:12:01,600 --> 00:12:07,280 Speaker 1: become for people getting news. You know, if something barks 197 00:12:07,320 --> 00:12:09,160 Speaker 1: like a dog or walks like a duck, you know 198 00:12:09,200 --> 00:12:11,480 Speaker 1: it's a duck or it's a dog. In Facebook's case, 199 00:12:11,480 --> 00:12:14,760 Speaker 1: we could say it's actually a media company. They distribute news, 200 00:12:15,120 --> 00:12:18,080 Speaker 1: and from this standpoint, they're a media company that's trying 201 00:12:18,080 --> 00:12:20,440 Speaker 1: to say that they're not. And in the event that 202 00:12:20,440 --> 00:12:23,360 Speaker 1: the government would decide to say, look, you're a media company, 203 00:12:23,400 --> 00:12:26,960 Speaker 1: despite whatever your protestations otherwise might be, we're gonna start 204 00:12:27,000 --> 00:12:30,719 Speaker 1: regulating you like a media company. This changes the dynamic 205 00:12:30,880 --> 00:12:34,160 Speaker 1: for Facebook in terms of their internal costs and in 206 00:12:34,280 --> 00:12:36,720 Speaker 1: terms of what they may and may not be allowed 207 00:12:36,800 --> 00:12:41,480 Speaker 1: to do. Because this also that would mean libel laws 208 00:12:41,800 --> 00:12:45,800 Speaker 1: would apply to Facebook precisely and possibly you know, there 209 00:12:45,840 --> 00:12:48,720 Speaker 1: may be scrutiny here given the governance structure. You know, 210 00:12:49,080 --> 00:12:52,520 Speaker 1: what is management's responsibility here? You know, does it does 211 00:12:52,559 --> 00:12:56,640 Speaker 1: the corporate veil actually apply? So just expanding out, I mean, 212 00:12:56,640 --> 00:12:59,400 Speaker 1: we did get the news today that Supreme Court justice 213 00:12:59,440 --> 00:13:02,080 Speaker 1: is a pure ways to allow an antitrust lawsuit to 214 00:13:02,120 --> 00:13:05,120 Speaker 1: go through. It accuses Apple of using its market dominance 215 00:13:05,120 --> 00:13:08,960 Speaker 1: to artificially inflate prices at its app store. Apple shares 216 00:13:08,960 --> 00:13:12,000 Speaker 1: have been falling steadily for the past few weeks, And 217 00:13:12,040 --> 00:13:14,240 Speaker 1: I'm just wondering, I mean, do you view this sort 218 00:13:14,280 --> 00:13:17,439 Speaker 1: of existential threat to the business model to be similar 219 00:13:17,840 --> 00:13:20,920 Speaker 1: at other big tech companies just by virtue of their 220 00:13:21,000 --> 00:13:23,720 Speaker 1: size and the fact that regulators are kind of getting 221 00:13:23,720 --> 00:13:26,679 Speaker 1: more concerned about that. I don't know if I necessarily 222 00:13:26,679 --> 00:13:29,040 Speaker 1: want to go out. I mean, looking at Facebook's problem, 223 00:13:29,040 --> 00:13:31,440 Speaker 1: facebooks problem is a problem with social media and and 224 00:13:31,480 --> 00:13:34,079 Speaker 1: the abuse of social media, and how our regulator is 225 00:13:34,120 --> 00:13:37,400 Speaker 1: going to exercise appropriate and proper oversight in terms of 226 00:13:37,440 --> 00:13:41,360 Speaker 1: social media companies. As we look to other technology companies, 227 00:13:41,360 --> 00:13:43,600 Speaker 1: whether it's an Apple, whether it's a Google, whether it's 228 00:13:43,600 --> 00:13:47,040 Speaker 1: a micro Microsoft, whether it's a Netflix or an Amazon, um. 229 00:13:47,120 --> 00:13:48,760 Speaker 1: You know, certainly we have to look at companies that 230 00:13:48,800 --> 00:13:53,040 Speaker 1: have grown to a fairly substantial size, wield, substantial economic 231 00:13:53,120 --> 00:13:56,960 Speaker 1: influence um and as a result, you know, are they 232 00:13:57,160 --> 00:14:01,559 Speaker 1: introducing anti competitive behaviors. There has been the case being 233 00:14:01,559 --> 00:14:05,760 Speaker 1: made quietly but steadily over the past six to twelve 234 00:14:05,800 --> 00:14:09,480 Speaker 1: months that the next administration ought to be coming back 235 00:14:09,520 --> 00:14:12,240 Speaker 1: in and looking at trust busting. We ought to be 236 00:14:12,320 --> 00:14:16,080 Speaker 1: going back and looking at what happened in earlier economic cycles, 237 00:14:16,120 --> 00:14:19,320 Speaker 1: back in nearly twentieth century. You know, Teddy Roosevelt came 238 00:14:19,360 --> 00:14:23,240 Speaker 1: in basically as a trustbuster. Have these companies gotten to 239 00:14:23,240 --> 00:14:25,520 Speaker 1: be too large? And it's interesting here with this news 240 00:14:25,720 --> 00:14:27,840 Speaker 1: with respect to Apple, is that this is something that's 241 00:14:27,840 --> 00:14:32,320 Speaker 1: actually rising to review by the Supreme Court. David Garty. 242 00:14:32,440 --> 00:14:36,120 Speaker 1: The one name we have yet to mention is Cheryl Sandberg. 243 00:14:37,040 --> 00:14:44,080 Speaker 1: Cheryl Sandberg is responsible, I believe, for the direct scrutiny 244 00:14:44,120 --> 00:14:50,880 Speaker 1: of advertising as well as legal and policy issues at Facebook. 245 00:14:51,320 --> 00:14:54,920 Speaker 1: Who gets thrown under the bus if anyone because of 246 00:14:54,960 --> 00:15:00,360 Speaker 1: the perilous situation that the company faces right now, well 247 00:15:00,360 --> 00:15:03,040 Speaker 1: one certainly has to argue that Sandberg is going to 248 00:15:03,080 --> 00:15:05,680 Speaker 1: be sort of squarely in the crosshairs. And but I 249 00:15:05,720 --> 00:15:08,160 Speaker 1: will give Sandberg credit is that when it has come 250 00:15:08,200 --> 00:15:12,600 Speaker 1: time for this company's management to appear before various government bodies, 251 00:15:12,680 --> 00:15:17,480 Speaker 1: regulatory bodies to testify, it has generally been Sandberg who 252 00:15:17,480 --> 00:15:20,440 Speaker 1: has been the stand up person out of management to 253 00:15:20,520 --> 00:15:25,280 Speaker 1: be held accountable. Zuckerberg has tried to stay in the shadows, 254 00:15:25,560 --> 00:15:29,720 Speaker 1: has tried to dutch dodge duck Bob Weave, but it's 255 00:15:29,760 --> 00:15:32,400 Speaker 1: been Sandberg who really has been the stand up person here. 256 00:15:32,600 --> 00:15:35,160 Speaker 1: And unfortunately, given the way things are set up in 257 00:15:35,280 --> 00:15:37,960 Speaker 1: terms of the governance we discussed earlier, it's most likely 258 00:15:37,960 --> 00:15:41,560 Speaker 1: going to be Sandberg who takes the first fall. David Garritty, 259 00:15:41,560 --> 00:15:43,200 Speaker 1: it's always a pleasure to have you. Thank you so 260 00:15:43,280 --> 00:15:46,200 Speaker 1: much for coming in. David Garritty as chief market strategist 261 00:15:46,520 --> 00:15:49,480 Speaker 1: at laid Law and Company in New York, joining us 262 00:15:49,480 --> 00:15:56,240 Speaker 1: here in our eleven at three oh studios. General Motors 263 00:15:56,360 --> 00:15:58,760 Speaker 1: Shares are searching after they announced it will cut more 264 00:15:58,760 --> 00:16:03,040 Speaker 1: than ten thousands salerate staff and factory workers, closing five 265 00:16:03,120 --> 00:16:07,520 Speaker 1: factories and this comes after surprisingly good results. David Walts 266 00:16:07,600 --> 00:16:10,160 Speaker 1: joining US now Detroit Bureau chief for Bloomberg. He is 267 00:16:10,200 --> 00:16:14,240 Speaker 1: at GM headquarters. David, why are they doing this and 268 00:16:14,760 --> 00:16:18,880 Speaker 1: why is it being so well received by shareholders? There 269 00:16:18,880 --> 00:16:21,400 Speaker 1: are a couple of reasons. One, they see the market 270 00:16:21,520 --> 00:16:25,560 Speaker 1: moving toward electric vehicles autonomous vehicles, and they're still hiring 271 00:16:25,560 --> 00:16:28,640 Speaker 1: people in those areas. But as they cut passenger car 272 00:16:28,680 --> 00:16:32,040 Speaker 1: models that aren't selling, and as they try to develop 273 00:16:32,040 --> 00:16:34,680 Speaker 1: the cars of tomorrow, they just don't need as many 274 00:16:34,720 --> 00:16:39,120 Speaker 1: assemblers and traditional mechanical engineers. Um. You know, electric cars 275 00:16:39,160 --> 00:16:42,320 Speaker 1: have fewer parts, they're easier to engineer, they're easier to build. Uh. 276 00:16:42,360 --> 00:16:45,320 Speaker 1: They see a future there. People are buying more SUVs 277 00:16:45,560 --> 00:16:48,440 Speaker 1: and fewer passenger cars, so they're getting rid of some 278 00:16:48,520 --> 00:16:51,280 Speaker 1: of those nameplates like the Chevy Cruise Compact. They're getting 279 00:16:51,480 --> 00:16:54,600 Speaker 1: the Impalace sedan. You don't need passenger car engineers to 280 00:16:54,640 --> 00:16:57,840 Speaker 1: do that. Um. And you know, I think they're not 281 00:16:57,880 --> 00:17:01,080 Speaker 1: really admitting this part, but I think they the the 282 00:17:01,120 --> 00:17:04,720 Speaker 1: global auto market softening. China is in a downturn this year, 283 00:17:05,040 --> 00:17:08,440 Speaker 1: the US is definitely coming off. It's two thousand sixteen peak. 284 00:17:09,359 --> 00:17:11,879 Speaker 1: It's not going a creator, but when things are getting 285 00:17:11,880 --> 00:17:14,000 Speaker 1: soft during you don't need as many people to engineer 286 00:17:14,080 --> 00:17:16,720 Speaker 1: this myriad of nameplates that they've had for a long time. 287 00:17:17,200 --> 00:17:18,800 Speaker 1: You can make a lot of cuts. The other thing 288 00:17:18,840 --> 00:17:20,919 Speaker 1: that's Mary bars under a lot of pressure because the 289 00:17:20,920 --> 00:17:23,400 Speaker 1: stock prices hasn't been doing great. Add it all together 290 00:17:23,480 --> 00:17:26,840 Speaker 1: and she's got to show some money. David Watch, could 291 00:17:26,840 --> 00:17:31,119 Speaker 1: you just continue on the theme of electric and hybrid 292 00:17:31,480 --> 00:17:34,520 Speaker 1: vehicles and the number of workers that it takes to 293 00:17:34,800 --> 00:17:38,680 Speaker 1: build them compared to what it takes to build a 294 00:17:38,720 --> 00:17:42,720 Speaker 1: fossil fuel power automobile or vehicle. Okay, I don't have 295 00:17:42,720 --> 00:17:45,920 Speaker 1: any numbers for you on that, but imagine this. One 296 00:17:45,920 --> 00:17:48,320 Speaker 1: of the reasons electric cars are so expensive, it's just 297 00:17:48,359 --> 00:17:51,480 Speaker 1: because that one big hunk of battery costs so much. 298 00:17:51,960 --> 00:17:55,000 Speaker 1: But that's coming down so so the cost is getting 299 00:17:55,000 --> 00:17:58,520 Speaker 1: more competitive. What that will replace. And I've seen testa's 300 00:17:58,560 --> 00:18:01,399 Speaker 1: torn down, I've seen a ship both torn down. You 301 00:18:01,480 --> 00:18:03,840 Speaker 1: have this giant battery, and you have one electric motor 302 00:18:03,960 --> 00:18:07,720 Speaker 1: that replaces an internal combustion engine, a transmission on, a 303 00:18:07,760 --> 00:18:11,119 Speaker 1: whole exhaust system, a whole fuel intake and management system, 304 00:18:11,160 --> 00:18:14,440 Speaker 1: a bunch of pumps um. You take all of those 305 00:18:14,480 --> 00:18:17,120 Speaker 1: parts and you toss them, and you've got these two 306 00:18:17,160 --> 00:18:19,639 Speaker 1: big pieces that you know that that battery is basically 307 00:18:19,640 --> 00:18:21,480 Speaker 1: the floor of a car. You kind of bolted in 308 00:18:21,920 --> 00:18:24,200 Speaker 1: and connect everything, and it's like, it's not that simple, 309 00:18:24,240 --> 00:18:26,920 Speaker 1: tim You and I couldn't do it. But it's a 310 00:18:26,920 --> 00:18:31,560 Speaker 1: lot less complex than that whole suite of internal combustion 311 00:18:31,600 --> 00:18:34,399 Speaker 1: parts I just rattled up. So, David, though, I have 312 00:18:34,480 --> 00:18:37,840 Speaker 1: to wonder whether that is going to be an excuse 313 00:18:38,320 --> 00:18:40,880 Speaker 1: for the other point that you mentioned, which is that 314 00:18:41,000 --> 00:18:45,760 Speaker 1: GM probably sees the global auto market slowing substantially and 315 00:18:45,800 --> 00:18:47,760 Speaker 1: they want to make sure that they're the correct size 316 00:18:47,840 --> 00:18:52,200 Speaker 1: to meet waning demand, because honestly, we haven't seen electric 317 00:18:52,240 --> 00:18:56,359 Speaker 1: car sales pick up that much, and frankly, cars and trucks, 318 00:18:56,400 --> 00:18:59,040 Speaker 1: gas guzzling trucks have continued to be the most popular, right, 319 00:18:59,080 --> 00:19:02,040 Speaker 1: So I mean that basically a red herring for the 320 00:19:02,040 --> 00:19:06,520 Speaker 1: real issue, which is the slowdown. It's not a red 321 00:19:06,560 --> 00:19:09,320 Speaker 1: hearing in the sense that they are hiring software related 322 00:19:09,400 --> 00:19:13,199 Speaker 1: people to do autonomous cars and the power, electronics and 323 00:19:13,240 --> 00:19:17,240 Speaker 1: battery engineering you need for e vs, but they're absolutely 324 00:19:17,359 --> 00:19:21,480 Speaker 1: using the cover of that in order to really just 325 00:19:21,680 --> 00:19:24,960 Speaker 1: get leaner. Number one, uh and and number two prepare 326 00:19:25,000 --> 00:19:27,040 Speaker 1: for what is I think it's going to be a 327 00:19:27,080 --> 00:19:30,600 Speaker 1: slowdown in the US, and some other forecasters uh that 328 00:19:31,080 --> 00:19:33,440 Speaker 1: are making that point that they could be we could 329 00:19:33,440 --> 00:19:36,760 Speaker 1: go from selling seventeen million vehicles in the US this 330 00:19:36,880 --> 00:19:39,159 Speaker 1: year to you know, maybe fifteen and a half or 331 00:19:39,160 --> 00:19:42,000 Speaker 1: sixteen in the next couple of years. Um. You know 332 00:19:42,040 --> 00:19:44,320 Speaker 1: that there's a forecast out there like that, and it's 333 00:19:44,359 --> 00:19:47,040 Speaker 1: from someone who's not crazy. So yeah, I think they 334 00:19:47,040 --> 00:19:51,000 Speaker 1: see things softening up a bit, and they're they're allocating 335 00:19:51,040 --> 00:19:53,520 Speaker 1: more in China as well. You know what. The part 336 00:19:53,600 --> 00:19:55,680 Speaker 1: that they're not talking about here is a lot of 337 00:19:55,680 --> 00:19:57,399 Speaker 1: the vehicles they're killing in the US are still going 338 00:19:57,440 --> 00:19:59,399 Speaker 1: to be stold in China. They're probably gonna engineer them 339 00:19:59,400 --> 00:20:02,400 Speaker 1: over there in future slip of hiring engineers there as well. 340 00:20:02,960 --> 00:20:06,240 Speaker 1: So it's kind of all of these factors, and you 341 00:20:06,280 --> 00:20:09,560 Speaker 1: know that they put probably the best and most futuristic 342 00:20:09,760 --> 00:20:12,480 Speaker 1: spin on it. But yeah, they want to get leander 343 00:20:12,560 --> 00:20:16,840 Speaker 1: and they see the markets often David Well should just 344 00:20:16,880 --> 00:20:19,200 Speaker 1: give you a couple of seconds here. Do you think 345 00:20:19,240 --> 00:20:24,120 Speaker 1: that the same issues face the large German automobile makers, 346 00:20:24,320 --> 00:20:29,000 Speaker 1: and they have big labor unions to deal with. Yeah, 347 00:20:29,359 --> 00:20:32,359 Speaker 1: it's going to affect everyone. And to be honest with you, 348 00:20:32,520 --> 00:20:36,159 Speaker 1: I think the US market it's probably a healthier market 349 00:20:36,480 --> 00:20:39,560 Speaker 1: than Europe is. Even though they sell luxury cars over there, 350 00:20:40,359 --> 00:20:42,520 Speaker 1: that's always been a tougher market than the US because 351 00:20:42,560 --> 00:20:44,600 Speaker 1: here you got pick up trucks and big subs that 352 00:20:44,800 --> 00:20:46,399 Speaker 1: had a lot of problems and make a lot of 353 00:20:46,400 --> 00:20:48,880 Speaker 1: money to help you deal with your other problems. Uh, 354 00:20:48,920 --> 00:20:51,560 Speaker 1: they've got luxury cars over there, but that's just a 355 00:20:51,560 --> 00:20:54,360 Speaker 1: tougher place to do business than the US. So absolutely, 356 00:20:54,640 --> 00:20:57,320 Speaker 1: thanks very much for being with us. David Welchard, Detroit 357 00:20:57,359 --> 00:21:01,840 Speaker 1: bureau chief for Bloomberg, talking about GM and its announcement 358 00:21:01,880 --> 00:21:04,520 Speaker 1: that it will cut about fifteen percent of its workforce 359 00:21:04,840 --> 00:21:12,800 Speaker 1: and shutter five manufacturing plants in twenty nineteen. Fernando Camera 360 00:21:13,040 --> 00:21:16,480 Speaker 1: is the co founder and the chief executive of sky hour, 361 00:21:16,880 --> 00:21:19,800 Speaker 1: and he's here to tell us how you can actually 362 00:21:20,080 --> 00:21:27,679 Speaker 1: book and give flights and travel to someone else using hint, hint, right, 363 00:21:28,040 --> 00:21:33,240 Speaker 1: using the website that he is co created called sky 364 00:21:33,440 --> 00:21:36,760 Speaker 1: our dot com. Thanks very much for being here. How 365 00:21:36,800 --> 00:21:40,399 Speaker 1: does sky our work? Thank you? For having me guys, 366 00:21:40,480 --> 00:21:43,200 Speaker 1: So it's SKay our. What we do is we sell 367 00:21:43,280 --> 00:21:46,080 Speaker 1: flight hours for sixty dollars an hour and you can 368 00:21:46,160 --> 00:21:48,680 Speaker 1: use those hours book any flights on the biggest fall 369 00:21:48,760 --> 00:21:51,240 Speaker 1: hunding the airlines in the world. So it all started 370 00:21:51,240 --> 00:21:53,320 Speaker 1: when I was trying to give the flights to one 371 00:21:53,359 --> 00:21:55,679 Speaker 1: of my best friends and and I couldn't find a 372 00:21:55,680 --> 00:21:58,080 Speaker 1: way to do that. So first I was trying to 373 00:21:58,080 --> 00:21:59,920 Speaker 1: book a flight, I had to know the person, details, 374 00:22:00,000 --> 00:22:03,560 Speaker 1: destination dates. I was killing the surprise airlines in telome 375 00:22:03,560 --> 00:22:05,800 Speaker 1: me to book a flight for a because of security reasons. 376 00:22:06,160 --> 00:22:08,120 Speaker 1: Then I try their line Miles. But if I give 377 00:22:08,119 --> 00:22:10,119 Speaker 1: you miles of chet Blue, you cannot travel on Delta. 378 00:22:10,400 --> 00:22:13,040 Speaker 1: There's a lot of like outdates and restrictions and so 379 00:22:13,080 --> 00:22:15,880 Speaker 1: it's almost impossible to use them. And it's exactly exactly 380 00:22:15,880 --> 00:22:17,879 Speaker 1: the same thing with airline gifts cards gives car off 381 00:22:17,920 --> 00:22:20,679 Speaker 1: jet Blue doesn't work on Debta. It's almost impossible to 382 00:22:20,840 --> 00:22:23,200 Speaker 1: use to use them. So there wasn't like a easy, 383 00:22:23,240 --> 00:22:25,640 Speaker 1: smart and inspiring great to give someone a flight as 384 00:22:25,640 --> 00:22:28,000 Speaker 1: a gift. And so at sky Hour you can buy 385 00:22:28,000 --> 00:22:30,000 Speaker 1: as many hours as you want for sixty dollars and 386 00:22:30,000 --> 00:22:31,800 Speaker 1: you can use those hours book any flights on the 387 00:22:31,800 --> 00:22:33,720 Speaker 1: biggest one hundred their lines in less than a minute. 388 00:22:34,000 --> 00:22:36,600 Speaker 1: To be it seems like a cheap price sixty an hour, 389 00:22:36,720 --> 00:22:40,560 Speaker 1: especially when you think about peak travel times to say Florida, 390 00:22:40,720 --> 00:22:43,840 Speaker 1: places that are popular destinations in the United States during 391 00:22:43,880 --> 00:22:46,240 Speaker 1: those times, is it? I mean, how did you get 392 00:22:46,240 --> 00:22:49,199 Speaker 1: the airlines on board here? So you know, people don't know, 393 00:22:49,320 --> 00:22:51,919 Speaker 1: but more than all the flights in the world, they 394 00:22:51,960 --> 00:22:54,760 Speaker 1: cost less than six hours an hour. And so there's 395 00:22:54,800 --> 00:22:57,600 Speaker 1: only around five percent, which is the super last minute 396 00:22:57,640 --> 00:23:01,000 Speaker 1: flights on busy routes. And we a very fair model 397 00:23:01,000 --> 00:23:02,960 Speaker 1: because when you book a fight on SKA our, we 398 00:23:03,000 --> 00:23:05,359 Speaker 1: always give you a rewards back, so we always give 399 00:23:05,400 --> 00:23:07,480 Speaker 1: you hours back they can use to book your next flight. 400 00:23:08,000 --> 00:23:10,080 Speaker 1: And so if you do them at and and you 401 00:23:10,119 --> 00:23:12,000 Speaker 1: see that we are never more expensive. We have a 402 00:23:12,119 --> 00:23:16,800 Speaker 1: very fair model. In looking at just the sort of 403 00:23:16,840 --> 00:23:22,399 Speaker 1: sample trip and itinerary from New York to London, it 404 00:23:22,520 --> 00:23:26,240 Speaker 1: came back and it told me that I needed fourteen 405 00:23:26,320 --> 00:23:30,000 Speaker 1: I needed fourteen hours, right because that's around trip experience, 406 00:23:30,560 --> 00:23:34,520 Speaker 1: So I that would be fourteen hours fourteen times sixty exactly. 407 00:23:35,040 --> 00:23:37,880 Speaker 1: So you know, probably fights from New York to Londy's 408 00:23:38,280 --> 00:23:41,040 Speaker 1: six thurs and thirty minutes and the return flights eight 409 00:23:41,040 --> 00:23:44,720 Speaker 1: hours in ten minutes. So the total is uh fourteen 410 00:23:44,760 --> 00:23:49,639 Speaker 1: hours and fourteen minutes. Okay, So how does that actually work? 411 00:23:49,640 --> 00:23:53,400 Speaker 1: In other words, if someone goes to your site, signs up, 412 00:23:53,720 --> 00:23:59,840 Speaker 1: buys those fourteen hours, gives them to someone else, how 413 00:23:59,840 --> 00:24:04,000 Speaker 1: to is the airline manage their inventory? So we do it. 414 00:24:04,080 --> 00:24:06,800 Speaker 1: Everything happens on scaur. So you got scar dot com 415 00:24:06,840 --> 00:24:09,639 Speaker 1: and can buy hours for yourself and then you can 416 00:24:09,720 --> 00:24:11,920 Speaker 1: use those hours book any flight on any of your line, 417 00:24:12,240 --> 00:24:14,920 Speaker 1: or you can use those urts your friends and so 418 00:24:14,960 --> 00:24:16,760 Speaker 1: you know, if you're subverted tomorrow, I give you ten 419 00:24:16,800 --> 00:24:19,720 Speaker 1: hours and can use those ten hours to go anywhere anytime. 420 00:24:20,080 --> 00:24:23,160 Speaker 1: And if the flatuation, if the booking a total booking 421 00:24:23,200 --> 00:24:25,119 Speaker 1: cost is fourteen hours and you only have ten, you 422 00:24:25,160 --> 00:24:28,720 Speaker 1: can buy another four hours on the checkout. And we 423 00:24:28,800 --> 00:24:30,679 Speaker 1: also allow you to crowd from the flights. So if 424 00:24:30,720 --> 00:24:32,600 Speaker 1: you're a student or your for a charity, you need 425 00:24:32,640 --> 00:24:34,239 Speaker 1: to book a flights, you don't have money, you can 426 00:24:34,240 --> 00:24:36,280 Speaker 1: ask your friends and send me for hours and they 427 00:24:36,280 --> 00:24:38,680 Speaker 1: can give you hours in less than thirty seconds, even 428 00:24:38,720 --> 00:24:41,520 Speaker 1: if they are not members of SCAR. So what's the 429 00:24:41,560 --> 00:24:45,000 Speaker 1: incentive for the airlines to work with you? Because I 430 00:24:45,040 --> 00:24:48,520 Speaker 1: assume that you capture some differential to keep your operations 431 00:24:48,560 --> 00:24:50,399 Speaker 1: going right. I mean, they could just get more if 432 00:24:50,400 --> 00:24:55,080 Speaker 1: they went directly. So airlines they love sky Hour because 433 00:24:55,119 --> 00:24:57,679 Speaker 1: they believe that we can essentially be the most important 434 00:24:57,720 --> 00:24:59,720 Speaker 1: distribution channel for them in a couple of years from 435 00:24:59,720 --> 00:25:02,320 Speaker 1: now because of the gifting industry. So I will give 436 00:25:02,359 --> 00:25:04,840 Speaker 1: you an example. Right now in US Americans, they're spending 437 00:25:04,920 --> 00:25:07,399 Speaker 1: hundred forty billion dollars per year on gift cards and 438 00:25:07,520 --> 00:25:09,919 Speaker 1: less than one percent to spend on air travel because 439 00:25:10,080 --> 00:25:11,960 Speaker 1: you know, before SCAR, that wasn't a way to give 440 00:25:11,960 --> 00:25:14,480 Speaker 1: a flight someone and our generations we want to spend 441 00:25:14,520 --> 00:25:16,760 Speaker 1: our money and experiences. That's where what we want to 442 00:25:16,800 --> 00:25:19,320 Speaker 1: do and the most exciting trips are the ones far away, 443 00:25:19,359 --> 00:25:21,920 Speaker 1: the ones that normally starting to be the flight. So 444 00:25:22,040 --> 00:25:24,280 Speaker 1: you know, by allowing people to give scarts to each other, 445 00:25:24,400 --> 00:25:27,800 Speaker 1: we're gonna essentially, you know, bring a big percentage of 446 00:25:27,800 --> 00:25:30,320 Speaker 1: those hundred forty billions that people spend gifts cards to 447 00:25:30,359 --> 00:25:32,359 Speaker 1: the airline industry. So this ye has, as you know, 448 00:25:32,800 --> 00:25:35,840 Speaker 1: a new distribution channel bringing more money to the industry. 449 00:25:36,240 --> 00:25:39,600 Speaker 1: Now that just included any of the extra fees. Yeah, 450 00:25:39,640 --> 00:25:43,080 Speaker 1: everything is included. Everything, everything is included. Take your bags 451 00:25:43,160 --> 00:25:46,919 Speaker 1: and everything is included. So one thing I'm wondering is 452 00:25:46,920 --> 00:25:51,280 Speaker 1: does it remove pricing power from the airlines? Uh? We 453 00:25:51,560 --> 00:25:54,240 Speaker 1: know it's not not exactly because essentially we sell hours 454 00:25:54,280 --> 00:25:56,080 Speaker 1: for six dollars an hour. But you know, most of 455 00:25:56,119 --> 00:25:58,520 Speaker 1: the times that actually phrase cheap. The fairer of the 456 00:25:58,560 --> 00:26:00,480 Speaker 1: flight is scheper than six dollars, So we give you 457 00:26:00,520 --> 00:26:03,120 Speaker 1: the difference back in minutes. So airline, No one loses money. 458 00:26:03,160 --> 00:26:06,200 Speaker 1: Everyone makes money. No, I'm saying that, you know, especially 459 00:26:06,880 --> 00:26:09,439 Speaker 1: just in general, I've seen Delta raise their prices and 460 00:26:10,320 --> 00:26:13,440 Speaker 1: American people have basically been saying airlines have been saying, 461 00:26:13,440 --> 00:26:15,479 Speaker 1: we need to we need to charge more because of 462 00:26:15,520 --> 00:26:18,040 Speaker 1: the contracts with pilots, etcetera. I mean, does this sort 463 00:26:18,040 --> 00:26:20,040 Speaker 1: of remove their ability to do that because it's sort 464 00:26:20,080 --> 00:26:25,360 Speaker 1: of capping things at six. Now, we are not doing that. Actually, 465 00:26:25,440 --> 00:26:28,240 Speaker 1: we are, you know, airlines they they you know, we 466 00:26:28,240 --> 00:26:30,440 Speaker 1: we make airlines super happy. You know, we are bringing 467 00:26:30,440 --> 00:26:32,879 Speaker 1: our money to the industry, and we respect their business 468 00:26:32,880 --> 00:26:35,160 Speaker 1: models and we support them under percent. We need them 469 00:26:35,160 --> 00:26:38,000 Speaker 1: to operate. Do you travel a lot all the time. Yeah, 470 00:26:38,119 --> 00:26:41,439 Speaker 1: that's your favorite destination. Oh that's a very tough question, 471 00:26:41,600 --> 00:26:47,480 Speaker 1: you know, I um favorite destination. I love skiing. Probably 472 00:26:47,680 --> 00:26:50,639 Speaker 1: you know Whistler, I love it. Always go there for skiing. 473 00:26:51,000 --> 00:26:53,639 Speaker 1: We'll have a great time. It's like getting to that season. 474 00:26:54,000 --> 00:26:57,080 Speaker 1: Fernando Camera is co founder and chief executive of sky 475 00:26:57,160 --> 00:27:01,000 Speaker 1: Hour in New York and Lisbon. Thanks for listening to 476 00:27:01,040 --> 00:27:03,919 Speaker 1: the Bloomberg P and L podcast. You can subscribe and 477 00:27:03,960 --> 00:27:07,960 Speaker 1: listen to interviews at Apple Podcasts, SoundCloud, or whatever podcast 478 00:27:07,960 --> 00:27:11,440 Speaker 1: platform you prefer. I'm Pim Fox. I'm on Twitter at 479 00:27:11,640 --> 00:27:15,520 Speaker 1: pim Fox. I'm on Twitter at Lisa abramowits one before 480 00:27:15,560 --> 00:27:18,840 Speaker 1: the podcast. You can always catch us worldwide on Bloomberg Radio.