1 00:00:04,760 --> 00:00:08,080 Speaker 1: Welcome to the Bloomberg pim L Podcast. I'm pim Fox. 2 00:00:08,119 --> 00:00:11,200 Speaker 1: Along with my co host Lisa Abramowitz. Each day we 3 00:00:11,280 --> 00:00:14,480 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:14,520 --> 00:00:16,880 Speaker 1: you and your money, whether at the grocery store or 5 00:00:16,920 --> 00:00:20,680 Speaker 1: the trading floor. Find the Bloomberg p L Podcast on iTunes, 6 00:00:20,840 --> 00:00:30,160 Speaker 1: SoundCloud and at Bloomberg dot com. We are broadcasting live 7 00:00:30,240 --> 00:00:32,720 Speaker 1: from the Bloomberg ear Ahead Summer at the Park Hyatt 8 00:00:32,800 --> 00:00:36,639 Speaker 1: in New York City. Our next guest is No Stranger 9 00:00:36,760 --> 00:00:40,320 Speaker 1: to news events or two policy changes in the world. 10 00:00:40,600 --> 00:00:43,280 Speaker 1: Joining us now is and Marie Slaughter, the president and 11 00:00:43,320 --> 00:00:48,519 Speaker 1: the chief executive of New America Foundation UH, formerly policy 12 00:00:48,520 --> 00:00:51,480 Speaker 1: advisor in the U. S. State Department. And Marie Slaughter, 13 00:00:51,560 --> 00:00:53,320 Speaker 1: thank you very much for being with us. My pleasure. 14 00:00:53,880 --> 00:00:57,960 Speaker 1: You wanted to focus on equality and women's rights and 15 00:00:58,600 --> 00:01:01,560 Speaker 1: the workforce, and I'm wondering if you could just give 16 00:01:01,600 --> 00:01:04,600 Speaker 1: us a sort of encapsulated version of what your presentation 17 00:01:04,720 --> 00:01:07,800 Speaker 1: was about and what you hope to achieve. So with 18 00:01:07,880 --> 00:01:10,399 Speaker 1: the greatest thing about being in here was that the 19 00:01:10,440 --> 00:01:13,679 Speaker 1: audience was certainly majority men. Often when we have this 20 00:01:13,760 --> 00:01:16,640 Speaker 1: conversation as women and I had a very simple message, 21 00:01:16,720 --> 00:01:20,000 Speaker 1: which was, we are never going to get to gender 22 00:01:20,000 --> 00:01:25,840 Speaker 1: equality unless we change our expectations of men as much 23 00:01:25,880 --> 00:01:29,640 Speaker 1: as we've changed our expectations of women, so that all 24 00:01:29,760 --> 00:01:33,680 Speaker 1: policies have to be gender neutral. You can't have maternity leave, uh, 25 00:01:33,680 --> 00:01:36,880 Speaker 1: and no paternity leave or long maternity leave but short 26 00:01:36,880 --> 00:01:39,840 Speaker 1: paternity leave. You have to assume all human beings have children. 27 00:01:40,000 --> 00:01:43,080 Speaker 1: Think about same sex couples, for instance, our adoption. But 28 00:01:43,120 --> 00:01:46,520 Speaker 1: you also have to assume that you know a man 29 00:01:46,600 --> 00:01:48,960 Speaker 1: with children is going to slow down if you assume 30 00:01:49,000 --> 00:01:51,000 Speaker 1: that a woman with children is gonna slow down, or 31 00:01:51,160 --> 00:01:53,560 Speaker 1: assume a woman has a lead parent at home the 32 00:01:53,600 --> 00:01:55,880 Speaker 1: way you assume a man has a lead parent at home. 33 00:01:56,240 --> 00:01:59,600 Speaker 1: And finally, you're going to have to change the automatic 34 00:01:59,640 --> 00:02:02,160 Speaker 1: as some and uh that you know the person who 35 00:02:02,160 --> 00:02:05,680 Speaker 1: works longest works best and actually look at results rather 36 00:02:05,760 --> 00:02:10,520 Speaker 1: than FaceTime. You wrote a story an article, uh, why 37 00:02:10,720 --> 00:02:13,000 Speaker 1: women still can't have it all in the Atlantic in 38 00:02:13,000 --> 00:02:17,800 Speaker 1: two thousand twelve. Um, you have two boys going back. 39 00:02:17,840 --> 00:02:20,240 Speaker 1: If you could do it all over again, what would 40 00:02:20,240 --> 00:02:27,119 Speaker 1: you have done differently? Let's make it easier? Oh? Nothing, really? 41 00:02:27,200 --> 00:02:29,200 Speaker 1: I mean you know, I was a tenured professor and 42 00:02:29,240 --> 00:02:32,000 Speaker 1: my husband was a tenured professor. It doesn't get better 43 00:02:32,080 --> 00:02:37,160 Speaker 1: than that. And I was a dean, and but Andy 44 00:02:37,240 --> 00:02:40,320 Speaker 1: was a tenured professor, so we had that flexibility. So 45 00:02:40,440 --> 00:02:42,840 Speaker 1: the only thing, you know, I could have not taken 46 00:02:42,880 --> 00:02:45,799 Speaker 1: the job with Secretary Clinton, but I would never say 47 00:02:45,800 --> 00:02:48,680 Speaker 1: I should have done that, because even as hard as 48 00:02:48,720 --> 00:02:54,360 Speaker 1: it was, it was totally worth it. And um, you know, 49 00:02:54,400 --> 00:02:56,480 Speaker 1: I tell young women all the time if they're going 50 00:02:56,520 --> 00:02:58,600 Speaker 1: to go work on the National Security Council, I say, 51 00:02:59,040 --> 00:03:00,800 Speaker 1: do it. You know you'll love it. It's great for 52 00:03:00,800 --> 00:03:03,040 Speaker 1: your resume. But just to understand, you're not going to 53 00:03:03,120 --> 00:03:05,200 Speaker 1: see your children, so don't try to do both. And 54 00:03:05,240 --> 00:03:07,400 Speaker 1: if your spouse is not willing to be redparent, you've 55 00:03:07,400 --> 00:03:09,840 Speaker 1: got a big problem because you really aren't gonna be 56 00:03:09,880 --> 00:03:13,519 Speaker 1: able to do both. So I wouldn't change it. Um, 57 00:03:13,560 --> 00:03:16,920 Speaker 1: And you know, I have been home as much as 58 00:03:16,919 --> 00:03:19,240 Speaker 1: I'm ever home. My kids would say my definition of 59 00:03:19,240 --> 00:03:23,919 Speaker 1: being home is different than many people's, but for for 60 00:03:23,960 --> 00:03:25,480 Speaker 1: both of them, all the way through the end of 61 00:03:25,560 --> 00:03:28,120 Speaker 1: high school. And I wouldn't trade that. Now. You served 62 00:03:28,160 --> 00:03:31,560 Speaker 1: as a Director of Policy Planning for the US State 63 00:03:31,600 --> 00:03:36,080 Speaker 1: Department from two thousand nine to two tholeven. You were 64 00:03:36,120 --> 00:03:39,280 Speaker 1: the first woman to actually hold that position. What did 65 00:03:39,320 --> 00:03:43,720 Speaker 1: you learn as a result of your tenure and are 66 00:03:43,760 --> 00:03:49,200 Speaker 1: there things that you wish you knew about? What was accomplishable? 67 00:03:49,360 --> 00:03:52,480 Speaker 1: What was the real world versus the policy world. Can 68 00:03:52,480 --> 00:03:55,800 Speaker 1: you give us some some insight. Yeah, well, so I 69 00:03:55,880 --> 00:03:57,920 Speaker 1: learned a lot. So you have to start with a proposition. 70 00:03:58,000 --> 00:04:01,000 Speaker 1: Having been a tenured professor, I was fifty years old 71 00:04:01,040 --> 00:04:03,600 Speaker 1: before I ever had a boss, because at the academy 72 00:04:03,640 --> 00:04:05,280 Speaker 1: you do not have a boss. So getting used to 73 00:04:05,320 --> 00:04:08,800 Speaker 1: having a boss, even a fabulous boss like like Hillary Clinton, 74 00:04:09,160 --> 00:04:12,800 Speaker 1: took some doing. Um, I would say, I really did 75 00:04:12,920 --> 00:04:16,840 Speaker 1: experience something I had read about but not not seen that. 76 00:04:18,480 --> 00:04:21,159 Speaker 1: You know, women, anybody will be cut out of a 77 00:04:21,200 --> 00:04:24,960 Speaker 1: meeting in Washington, but effectively to be in the meeting 78 00:04:25,000 --> 00:04:27,600 Speaker 1: you have to act like, of course, I'm going to 79 00:04:27,680 --> 00:04:29,440 Speaker 1: be in this meeting, which I think is harder for 80 00:04:29,440 --> 00:04:32,480 Speaker 1: women to do than men. The other thing is that 81 00:04:32,560 --> 00:04:34,839 Speaker 1: the you know, this should have been obvious too, but 82 00:04:34,920 --> 00:04:38,280 Speaker 1: the in this case young men networks. They weren't a 83 00:04:38,320 --> 00:04:40,280 Speaker 1: whole boy networks. They were young men. There were thirty 84 00:04:40,360 --> 00:04:43,080 Speaker 1: two year olds through from the White House, through the 85 00:04:43,160 --> 00:04:46,400 Speaker 1: Treasury to d O D to State that's where the 86 00:04:46,440 --> 00:04:50,800 Speaker 1: information traveled, and information is gold in politics, and so 87 00:04:51,320 --> 00:04:54,360 Speaker 1: they just weren't enough women to have that kind of 88 00:04:54,440 --> 00:04:57,479 Speaker 1: network so that you always were one step ahead of 89 00:04:57,480 --> 00:05:00,680 Speaker 1: your boss. Given your experience an international relations I would 90 00:05:00,720 --> 00:05:02,800 Speaker 1: be remiss not to ask you. Looking around right now, 91 00:05:02,839 --> 00:05:05,039 Speaker 1: people are worried about a lot of crises around the world. 92 00:05:05,240 --> 00:05:09,120 Speaker 1: Which do you think is most imminent and important to 93 00:05:09,160 --> 00:05:12,640 Speaker 1: watch and that the U S could potentially help to abeliate. 94 00:05:14,400 --> 00:05:17,920 Speaker 1: It's hard to know where to where to start. Uh, 95 00:05:18,120 --> 00:05:22,840 Speaker 1: you know, I do so imminent. We are watching the 96 00:05:22,880 --> 00:05:26,480 Speaker 1: implosion of the entire Middle East and we are not 97 00:05:26,560 --> 00:05:29,159 Speaker 1: going to be able to cabin that. I disagree sharply 98 00:05:29,240 --> 00:05:33,280 Speaker 1: with the President on his Syria policy because I think 99 00:05:33,440 --> 00:05:37,440 Speaker 1: not just refugees, but we're just incubating another whole generation 100 00:05:37,480 --> 00:05:40,719 Speaker 1: of terrorists and we are destabilizing a region that is 101 00:05:40,839 --> 00:05:44,279 Speaker 1: very important to us. So I think that that is critical. 102 00:05:44,760 --> 00:05:50,840 Speaker 1: The crisis I worry about most is a accidental collision 103 00:05:51,160 --> 00:05:54,800 Speaker 1: or incident in the South or East China Sea, where 104 00:05:55,360 --> 00:05:59,560 Speaker 1: for domestic political reasons, Japan goes on alert. Japan is 105 00:05:59,720 --> 00:06:03,280 Speaker 1: archery d the ally we back Japan, China goes on alert. 106 00:06:03,400 --> 00:06:07,359 Speaker 1: China has to feed its nationalist youth, and suddenly it 107 00:06:07,360 --> 00:06:09,680 Speaker 1: looks like nineteen fourteen, where nobody really wants to go 108 00:06:09,720 --> 00:06:12,280 Speaker 1: to war, but no one can see a way out. 109 00:06:12,480 --> 00:06:15,599 Speaker 1: So that's one I worry about. And then the last one, 110 00:06:15,640 --> 00:06:18,760 Speaker 1: which we could do much more about, is Venezuela is 111 00:06:18,800 --> 00:06:22,640 Speaker 1: going to collapse. And when Venezuela collapses, it's gonna be 112 00:06:22,640 --> 00:06:25,640 Speaker 1: bad for energy markets, it's going to be terrible for refugees, 113 00:06:25,800 --> 00:06:29,800 Speaker 1: It's could further destabilize Colombia. You know, we we need 114 00:06:29,839 --> 00:06:32,280 Speaker 1: to be paying much more attention and doing what we 115 00:06:32,320 --> 00:06:35,440 Speaker 1: can to help stabilize that country, preferably with the rest 116 00:06:35,480 --> 00:06:38,680 Speaker 1: of the Oias. Thank you so much. This was really 117 00:06:38,720 --> 00:06:43,440 Speaker 1: really tremendous. And Maurice Slaughter, a long time UH policy 118 00:06:43,440 --> 00:06:48,560 Speaker 1: adviser to the president but also professor and UH now 119 00:06:48,600 --> 00:06:51,919 Speaker 1: currently president and CEO of New America, thank you so 120 00:06:52,000 --> 00:06:53,640 Speaker 1: much for being with us. We heard a lot of 121 00:06:53,680 --> 00:06:56,320 Speaker 1: really fantastic things for the year ahead. I'm hopeful, paim 122 00:06:56,320 --> 00:06:57,839 Speaker 1: I've got to tell you a little bit more helpful 123 00:06:57,880 --> 00:06:59,760 Speaker 1: than I was when I started. I'm hopeful for your 124 00:07:10,000 --> 00:07:14,960 Speaker 1: We are here with an esteemed guest, Valerie Jarrett, Senior, 125 00:07:15,040 --> 00:07:20,960 Speaker 1: adviser to President Barack Obama and longtime confidante here at 126 00:07:21,040 --> 00:07:24,440 Speaker 1: the Bloomberg Here Ahead Summit to talk about some of 127 00:07:24,480 --> 00:07:29,400 Speaker 1: the issues and some of the progress made in workplace issues. Valerie, 128 00:07:29,400 --> 00:07:31,040 Speaker 1: thank you so much for being with us. Thank you, 129 00:07:31,120 --> 00:07:33,200 Speaker 1: Lisa and Pim. It's a delight for me to be here, 130 00:07:33,200 --> 00:07:35,480 Speaker 1: and I appreciate you putting a spotlight on these issues 131 00:07:35,480 --> 00:07:38,240 Speaker 1: that are so important to working families. So what have 132 00:07:38,440 --> 00:07:42,080 Speaker 1: some of the biggest surprises been for you as you've 133 00:07:42,120 --> 00:07:46,280 Speaker 1: pushed through some of your workplace agenda. Well, frankly, how 134 00:07:46,320 --> 00:07:49,160 Speaker 1: easy it is to convince businesses about what's in their 135 00:07:49,160 --> 00:07:52,920 Speaker 1: self interest once you show them the data. So, for example, UM, 136 00:07:52,920 --> 00:07:55,920 Speaker 1: eight years ago, it was hard to get businesses to 137 00:07:56,000 --> 00:07:58,520 Speaker 1: really talk about investing in their workforce in the form 138 00:07:58,600 --> 00:08:03,600 Speaker 1: of paid leave, paid sick days, workplace flexibility, affordable childcare, 139 00:08:03,680 --> 00:08:06,120 Speaker 1: equal pay. There wasn't fun and center. In fact, I 140 00:08:06,120 --> 00:08:08,240 Speaker 1: would venture to guess if I'd been invited to Bloomberg, 141 00:08:08,280 --> 00:08:10,000 Speaker 1: that wouldn't have been the topic that you'd wanted me 142 00:08:10,080 --> 00:08:13,320 Speaker 1: to address. And I've been so hardened to see truly 143 00:08:13,360 --> 00:08:15,400 Speaker 1: a transformation over the eight years in terms of the 144 00:08:15,440 --> 00:08:19,280 Speaker 1: awareness and not just with the large companies publicly health companies, 145 00:08:19,320 --> 00:08:22,120 Speaker 1: but small businesses who care about their culture and care 146 00:08:22,120 --> 00:08:25,400 Speaker 1: about retaining their workforce and recognizing it's not just enough 147 00:08:25,440 --> 00:08:27,080 Speaker 1: to get him in the door. You've got to be 148 00:08:27,120 --> 00:08:31,320 Speaker 1: able to compete in the twenty one century UM marketplace, 149 00:08:31,640 --> 00:08:35,720 Speaker 1: and that's dependent upon recognizing the needs of the century worker. 150 00:08:36,480 --> 00:08:40,160 Speaker 1: The President has just signed an executive order having to 151 00:08:40,280 --> 00:08:43,600 Speaker 1: do with companies that do business with the federal government. 152 00:08:43,600 --> 00:08:46,040 Speaker 1: Wonder if you could just expand on that. Sure, well, 153 00:08:46,320 --> 00:08:49,960 Speaker 1: we recognize right now that there's no national paid sick 154 00:08:50,280 --> 00:08:54,240 Speaker 1: day requirement UM, and so there's legislation pending called the 155 00:08:54,240 --> 00:08:56,920 Speaker 1: Healthy Families Act that would require companies to give their 156 00:08:57,280 --> 00:09:00,439 Speaker 1: workforce at least seven days of paid sick time. I 157 00:09:00,440 --> 00:09:02,719 Speaker 1: would mention also that we're the only developed country in 158 00:09:02,760 --> 00:09:05,040 Speaker 1: the world that doesn't have a federal paid lea paid 159 00:09:05,120 --> 00:09:08,680 Speaker 1: sickly policy. So, in light of Congress is failure to act, 160 00:09:08,720 --> 00:09:11,120 Speaker 1: the President sign an executive order saying all right, well, 161 00:09:11,160 --> 00:09:14,800 Speaker 1: at least if we're spending federal taxpayer dollars, we want 162 00:09:14,840 --> 00:09:17,080 Speaker 1: to know that the workers are going to at least 163 00:09:17,120 --> 00:09:19,240 Speaker 1: have seven days of paid sick time. And so if 164 00:09:19,280 --> 00:09:21,480 Speaker 1: you want to do business with the federal government, then 165 00:09:21,520 --> 00:09:24,240 Speaker 1: you're going to have to pay your workers um paid 166 00:09:24,240 --> 00:09:26,959 Speaker 1: sick days for seven days. Everybody gets sick, and I 167 00:09:26,960 --> 00:09:29,079 Speaker 1: don't know about you, but if I go to a restaurant, 168 00:09:29,480 --> 00:09:32,040 Speaker 1: I actually want the worker to be healthy. So this 169 00:09:32,080 --> 00:09:34,160 Speaker 1: isn't just that it's good for the worker and good. 170 00:09:34,320 --> 00:09:36,360 Speaker 1: If I'm a mom and my daughter sick, I don't 171 00:09:36,360 --> 00:09:38,440 Speaker 1: want to get doctor day's work because I want to 172 00:09:38,440 --> 00:09:39,959 Speaker 1: stay home and take care of her. I want to 173 00:09:39,960 --> 00:09:44,040 Speaker 1: be able to do that. And all too often, particularly 174 00:09:44,040 --> 00:09:47,439 Speaker 1: lower wage workers can't afford to choose between going to 175 00:09:47,520 --> 00:09:50,640 Speaker 1: work or missing that day's pay, or little losing your 176 00:09:50,679 --> 00:09:52,720 Speaker 1: job if you don't show up. So that's what the 177 00:09:52,720 --> 00:09:55,839 Speaker 1: executive and we're very familiar as consumers about following the 178 00:09:55,880 --> 00:09:57,720 Speaker 1: whole supply chain. In this case, it goes back to 179 00:09:57,760 --> 00:10:00,760 Speaker 1: a person. It goes back to a person exactly. And 180 00:10:00,920 --> 00:10:03,280 Speaker 1: if you're an employer, you're only going to be as 181 00:10:03,280 --> 00:10:06,240 Speaker 1: good as the people who you employ, and recognizing that 182 00:10:06,280 --> 00:10:08,000 Speaker 1: you've got to take care of them and invest in 183 00:10:08,080 --> 00:10:10,600 Speaker 1: them is not just good for women. This is a 184 00:10:10,640 --> 00:10:13,320 Speaker 1: working family issue, but it's also good for business, and 185 00:10:13,360 --> 00:10:15,840 Speaker 1: it's good for our economy. We're now competing with companies 186 00:10:15,880 --> 00:10:18,120 Speaker 1: all over the world. I just mentioned I was here 187 00:10:18,160 --> 00:10:22,160 Speaker 1: several months ago at Spotify, and they just announced twelve 188 00:10:22,559 --> 00:10:27,080 Speaker 1: months of paid leave. Twelve months. Why because their headquarted 189 00:10:27,120 --> 00:10:29,360 Speaker 1: in Sweden where they offer eighteen months, and they're having 190 00:10:29,400 --> 00:10:31,839 Speaker 1: a hard time with their workforce because the ones that 191 00:10:31,920 --> 00:10:33,520 Speaker 1: work here are going or wait a minute, look what's 192 00:10:33,520 --> 00:10:35,920 Speaker 1: happening over in Sweden. So they're needing to close that gap. 193 00:10:36,320 --> 00:10:38,680 Speaker 1: And that's happening all over the world. And so companies 194 00:10:38,720 --> 00:10:41,480 Speaker 1: that recognize the importance of investing in their work in 195 00:10:41,559 --> 00:10:46,160 Speaker 1: their workforce are seeing the results of that investment. As 196 00:10:46,200 --> 00:10:49,000 Speaker 1: the mother of two small children who works full time 197 00:10:49,000 --> 00:10:52,160 Speaker 1: and as a husband who some time, I totally understand this. 198 00:10:52,200 --> 00:10:54,560 Speaker 1: But I also understand, you know, when you hear about 199 00:10:54,640 --> 00:10:56,520 Speaker 1: equality of pay for women, and you hear about the 200 00:10:56,559 --> 00:10:59,960 Speaker 1: child care issues, how complicated it is and how they're 201 00:11:00,040 --> 00:11:02,200 Speaker 1: so many factors that go into it with respect to 202 00:11:02,800 --> 00:11:05,600 Speaker 1: the wishes and sort of whether people are directed by 203 00:11:05,679 --> 00:11:09,679 Speaker 1: virtue of getting time off to be the primary caregiver 204 00:11:10,080 --> 00:11:12,920 Speaker 1: going forward, what do you think needs to happen. That's 205 00:11:12,920 --> 00:11:15,040 Speaker 1: a really good question where one of the steps of 206 00:11:15,040 --> 00:11:19,400 Speaker 1: the president has also taken is to require companies um 207 00:11:19,400 --> 00:11:21,640 Speaker 1: that are over a hundred have over a hundred employees 208 00:11:21,960 --> 00:11:24,560 Speaker 1: to collect data on pay and send it to the 209 00:11:24,600 --> 00:11:27,200 Speaker 1: Department of Labor. And it's a tool for the companies, 210 00:11:27,280 --> 00:11:29,880 Speaker 1: but it's also a tool for policymakers to try to 211 00:11:29,920 --> 00:11:33,160 Speaker 1: figure out whether or not there is a discrepancy and pay. 212 00:11:33,200 --> 00:11:35,720 Speaker 1: And if you get to the fact that there is, 213 00:11:35,760 --> 00:11:38,160 Speaker 1: then you can go behind the numbers and figure out why. 214 00:11:38,960 --> 00:11:41,480 Speaker 1: We've also asked companies to take what we're calling an 215 00:11:41,480 --> 00:11:44,440 Speaker 1: equal Pay pledge. We have fifty seven companies around the country, 216 00:11:44,440 --> 00:11:48,640 Speaker 1: big companies you know, from Amazon to Google to um GM, 217 00:11:48,679 --> 00:11:50,679 Speaker 1: who have taken this pledge. And what the pledge requires 218 00:11:50,760 --> 00:11:53,400 Speaker 1: is once a year, look at your data, look at 219 00:11:53,440 --> 00:11:56,040 Speaker 1: what are the structural impediments to equal pay and other 220 00:11:56,320 --> 00:11:59,000 Speaker 1: impediments to keeping work women in the workplace, and then 221 00:11:59,000 --> 00:12:01,640 Speaker 1: make a commitment to try to deal with them. And 222 00:12:01,679 --> 00:12:03,200 Speaker 1: what we do with the White House is try to 223 00:12:03,559 --> 00:12:06,160 Speaker 1: show what are those best practices and if we're keeping 224 00:12:06,200 --> 00:12:08,440 Speaker 1: women in the workforce, half of our horse is now 225 00:12:08,480 --> 00:12:11,360 Speaker 1: comprised of women. Women are graduating from college that higher 226 00:12:11,440 --> 00:12:13,680 Speaker 1: rates than men. Thank you, I'm familiar with that. But 227 00:12:14,080 --> 00:12:16,440 Speaker 1: in a field such as computer science, they're only staying 228 00:12:16,480 --> 00:12:18,600 Speaker 1: in three years and the number one reason they give 229 00:12:18,640 --> 00:12:22,040 Speaker 1: for leaving the field culture. And so it's also not 230 00:12:22,080 --> 00:12:25,800 Speaker 1: just a matter of lease of having these important policies 231 00:12:25,800 --> 00:12:28,440 Speaker 1: on your books of your company, but you also have 232 00:12:28,520 --> 00:12:30,720 Speaker 1: to create a culture where people feel comfortable to take them. 233 00:12:30,760 --> 00:12:33,360 Speaker 1: At the White House, we have three months paid leave 234 00:12:33,600 --> 00:12:36,800 Speaker 1: for men and women equal because we think they should. 235 00:12:37,040 --> 00:12:40,280 Speaker 1: But just let's for one second. I mean, your job 236 00:12:40,320 --> 00:12:42,560 Speaker 1: is incredibly important as it is, you do a lot 237 00:12:42,640 --> 00:12:46,480 Speaker 1: of things. If if you were in that position, would 238 00:12:46,480 --> 00:12:49,160 Speaker 1: you be able to extract yourself for three months or 239 00:12:49,400 --> 00:12:51,439 Speaker 1: kind of a fallacy? No, you could, And that's what 240 00:12:51,600 --> 00:12:53,520 Speaker 1: That's why I always give the White House as an example, 241 00:12:53,520 --> 00:12:56,360 Speaker 1: because what's more high powered, high pressure than that? Where 242 00:12:56,400 --> 00:12:58,800 Speaker 1: do we all think we're indispensable? But we have had 243 00:12:58,840 --> 00:13:01,560 Speaker 1: several senior member is in the White House team, including 244 00:13:01,960 --> 00:13:04,480 Speaker 1: my own deputy who left for three months, and we 245 00:13:04,520 --> 00:13:06,440 Speaker 1: have now created the kind of culture where if you 246 00:13:06,559 --> 00:13:09,439 Speaker 1: don't take that three months, then there's pure pressure and 247 00:13:09,440 --> 00:13:11,080 Speaker 1: it's like, well what are you doing back here? And 248 00:13:11,120 --> 00:13:13,360 Speaker 1: so you reinforce it. You know what happens while you're 249 00:13:13,400 --> 00:13:16,520 Speaker 1: going somebody steps up and we all cover for each other, 250 00:13:16,640 --> 00:13:18,960 Speaker 1: and we've created the environment where there isn't any resentment 251 00:13:19,000 --> 00:13:21,080 Speaker 1: for it because it gives younger people a chance to 252 00:13:21,080 --> 00:13:23,560 Speaker 1: move up for a second and get and sometimes that 253 00:13:23,640 --> 00:13:26,040 Speaker 1: leads to promotion because people more senior get to see 254 00:13:26,040 --> 00:13:28,199 Speaker 1: them in action. So if you can do it in 255 00:13:28,240 --> 00:13:29,880 Speaker 1: the White House, and you can do it equally for 256 00:13:29,920 --> 00:13:32,559 Speaker 1: men and women, and you work on that culture, and 257 00:13:32,720 --> 00:13:35,240 Speaker 1: it takes a deliberate effort, you can't just say yes, 258 00:13:35,280 --> 00:13:37,520 Speaker 1: you can do it. You have to model. People can't 259 00:13:37,520 --> 00:13:41,079 Speaker 1: be what they can't see. And so when the Press Secretary, 260 00:13:41,080 --> 00:13:45,000 Speaker 1: who's a man, Josh Ernist, takes paternity leave, that sends 261 00:13:45,000 --> 00:13:47,760 Speaker 1: a message throughout his entire core group that if the 262 00:13:47,800 --> 00:13:50,400 Speaker 1: Press Secretary can be out of pockets, so can everybody else. 263 00:13:50,679 --> 00:13:54,000 Speaker 1: Just give you a quick twenty seconds here. Eight years 264 00:13:54,360 --> 00:13:57,800 Speaker 1: Obama is ending his two terms. You're going to be 265 00:13:57,920 --> 00:14:01,000 Speaker 1: ending eight years at the Washington White House. And so right, 266 00:14:01,600 --> 00:14:05,400 Speaker 1: what are you going to miss the most? Oh my gosh, 267 00:14:05,640 --> 00:14:08,680 Speaker 1: or what are you gonna miss the least? Congress? Okay, 268 00:14:09,880 --> 00:14:12,000 Speaker 1: that was a much easier because I'm gonna miss so much. 269 00:14:12,040 --> 00:14:14,600 Speaker 1: I'm gonna I'm gonna miss the people and I don't 270 00:14:14,679 --> 00:14:16,280 Speaker 1: just mean the people with whom I work, but the 271 00:14:16,280 --> 00:14:18,960 Speaker 1: people across this country who I have the privilege of 272 00:14:19,000 --> 00:14:21,440 Speaker 1: meeting every day from all walks of life, who are 273 00:14:21,520 --> 00:14:24,000 Speaker 1: really just trying to do right by their family. And 274 00:14:24,040 --> 00:14:28,160 Speaker 1: I've met the most ordinary people who do extraordinary things, 275 00:14:28,280 --> 00:14:30,880 Speaker 1: and we try to lift them up by inviting them 276 00:14:30,920 --> 00:14:33,320 Speaker 1: to the White House and see them around. Um. So 277 00:14:33,400 --> 00:14:36,120 Speaker 1: I will miss just the diversity of my day, and 278 00:14:36,200 --> 00:14:39,400 Speaker 1: I'll miss the majesty of coming through those gates every morning, 279 00:14:39,520 --> 00:14:41,800 Speaker 1: right every single day for nearly eight years. I just 280 00:14:41,880 --> 00:14:44,880 Speaker 1: pinched myself at the privilege of working at the White House. 281 00:14:46,240 --> 00:14:48,080 Speaker 1: I don't drink coffee, but I bet it's pretty good 282 00:14:48,320 --> 00:14:50,320 Speaker 1: everything else from the White House mess. Maybe mess is 283 00:14:50,360 --> 00:14:53,440 Speaker 1: really good. Thanks very much for joining us. A Valerie Jarrett, 284 00:14:53,720 --> 00:15:08,440 Speaker 1: senior advisor to President Barack Obama. This is Bloomberg him. 285 00:15:08,440 --> 00:15:10,400 Speaker 1: No better person for us to talk to you in 286 00:15:10,440 --> 00:15:12,800 Speaker 1: the morning when I could be on my third cup 287 00:15:12,840 --> 00:15:16,840 Speaker 1: of coffee than Andrea Ellie, Chairman and Ellie Cafees of 288 00:15:16,880 --> 00:15:21,080 Speaker 1: Ellie Cafees, sp a on about his life. I want 289 00:15:21,080 --> 00:15:24,040 Speaker 1: to talk to you first before we talk about climate change. 290 00:15:25,680 --> 00:15:27,720 Speaker 1: I want to talk first about the fact that you 291 00:15:27,800 --> 00:15:30,400 Speaker 1: are four years old when you had your first cup 292 00:15:30,440 --> 00:15:32,760 Speaker 1: of coffee. Can you please explain to me how that 293 00:15:32,840 --> 00:15:34,680 Speaker 1: how that came about as a mom of a four 294 00:15:34,760 --> 00:15:40,040 Speaker 1: year old. Well, I was sipping coffee by the spoon, 295 00:15:40,480 --> 00:15:43,440 Speaker 1: not drinking coffee four years old, but I was assisting 296 00:15:43,480 --> 00:15:47,160 Speaker 1: my mother preparing the very first espresso. There was no 297 00:15:47,240 --> 00:15:51,560 Speaker 1: expresso technology for home at that time, so she was 298 00:15:51,960 --> 00:15:56,520 Speaker 1: grinding and dozing and waiting and then tamping. It took 299 00:15:56,760 --> 00:15:59,480 Speaker 1: probably half an hour up to forty five minutes to 300 00:15:59,480 --> 00:16:03,040 Speaker 1: get the one, and we were probably spoiling, you know, 301 00:16:03,440 --> 00:16:05,880 Speaker 1: wasting three of them in order to get the good. 302 00:16:06,000 --> 00:16:08,800 Speaker 1: But then the coffee was perfect. So all these has 303 00:16:08,840 --> 00:16:13,960 Speaker 1: been completely revolutionized with the first paper pot that my 304 00:16:14,040 --> 00:16:17,880 Speaker 1: father was able to innovate at the beginning of the eighties, 305 00:16:18,440 --> 00:16:23,000 Speaker 1: and suddenly, uh, with the easy pots and the successful 306 00:16:23,160 --> 00:16:28,720 Speaker 1: technology with capsules, these espresso technology became available worldwide and 307 00:16:28,760 --> 00:16:32,280 Speaker 1: made the espresso to become global and loved by you know, 308 00:16:32,720 --> 00:16:36,480 Speaker 1: consumers all over the world, and made the basically espresso 309 00:16:36,560 --> 00:16:40,880 Speaker 1: to become the most you know, enjoyed way of drinking 310 00:16:40,880 --> 00:16:46,440 Speaker 1: coffee even by tea drinkers and filter coffee drinkers. Let's 311 00:16:46,440 --> 00:16:49,800 Speaker 1: talk about the Elie brand and the reach right now, 312 00:16:49,880 --> 00:16:53,600 Speaker 1: because you're here at the Year Ahead Summit to learn, 313 00:16:53,680 --> 00:16:56,600 Speaker 1: to meet, but also to share some of the new 314 00:16:56,640 --> 00:16:59,680 Speaker 1: programs that you would put together at Elie to draw 315 00:17:00,040 --> 00:17:03,680 Speaker 1: b in and to expand the brand when it is 316 00:17:03,760 --> 00:17:08,919 Speaker 1: the is the most global coffee brand. Were present in 317 00:17:08,960 --> 00:17:12,960 Speaker 1: over forty one hundred forty countries and we do basically 318 00:17:13,000 --> 00:17:15,680 Speaker 1: one third of our stays in our domestic country, Italy. 319 00:17:15,760 --> 00:17:18,320 Speaker 1: So I feel when I hear in New York, I 320 00:17:18,359 --> 00:17:21,840 Speaker 1: feel really I'm at home. And um, it's a family 321 00:17:21,880 --> 00:17:26,560 Speaker 1: business controlled by the family. So we grow set finance, 322 00:17:26,640 --> 00:17:30,640 Speaker 1: which is a challenge because we are the private company 323 00:17:30,960 --> 00:17:36,120 Speaker 1: which grows the more relatively in percentage compared to let's 324 00:17:36,119 --> 00:17:41,359 Speaker 1: say other strictly private one. So that means that only 325 00:17:41,400 --> 00:17:45,800 Speaker 1: companies which grow more than us are public realist okay, 326 00:17:46,119 --> 00:17:51,439 Speaker 1: and we are obsessively focused only on quality. As a 327 00:17:51,480 --> 00:17:54,280 Speaker 1: matter of fact, the company was founded upon the dream 328 00:17:54,320 --> 00:17:57,800 Speaker 1: of my grandfather, the founder, to offer the greatest coffee 329 00:17:57,800 --> 00:18:01,639 Speaker 1: to the world, and this dream became a mission the 330 00:18:01,760 --> 00:18:04,679 Speaker 1: lighting lovers of goodness and beauty all over the world 331 00:18:04,760 --> 00:18:08,200 Speaker 1: with the best coffee nature can provide enhanced by technology 332 00:18:08,240 --> 00:18:10,520 Speaker 1: and the beauty of the arts. This is our mission 333 00:18:11,400 --> 00:18:14,080 Speaker 1: and UH we stick to it to such an extent 334 00:18:14,160 --> 00:18:17,359 Speaker 1: where we are the only coffee company in the world 335 00:18:17,440 --> 00:18:20,040 Speaker 1: offering only one coffee, because if you want to offer 336 00:18:20,080 --> 00:18:22,680 Speaker 1: the best, it can be only one. So the famous 337 00:18:22,720 --> 00:18:26,600 Speaker 1: really Blend this is it's done with the nine ingredients 338 00:18:26,600 --> 00:18:30,560 Speaker 1: of the best Arabbica that we source directly from all 339 00:18:30,560 --> 00:18:32,880 Speaker 1: over the world in in in twenty countries. So next 340 00:18:32,920 --> 00:18:36,640 Speaker 1: week there will be November one here in New York 341 00:18:36,680 --> 00:18:42,840 Speaker 1: the very first international award awarding the best growers of 342 00:18:42,960 --> 00:18:47,320 Speaker 1: the nine countries sourcing our our our blend. And then 343 00:18:47,320 --> 00:18:49,560 Speaker 1: there will be also the best of the Best awarded 344 00:18:49,600 --> 00:18:53,080 Speaker 1: by International jewel So with that, this Illy Blend is 345 00:18:53,119 --> 00:18:57,560 Speaker 1: served globally and omni channel you can enjoy in the 346 00:18:57,600 --> 00:19:04,080 Speaker 1: hospitality restaurants, cafes, hotels at home through different channels. On 347 00:19:04,080 --> 00:19:07,120 Speaker 1: on the air, we are we have been recently appointed 348 00:19:07,160 --> 00:19:10,800 Speaker 1: as the official coffee of the United Airlines and UH 349 00:19:10,880 --> 00:19:13,160 Speaker 1: and so on the go. We also have this partnership 350 00:19:13,160 --> 00:19:15,640 Speaker 1: with Coca Cola for the really ready to drink, so 351 00:19:15,680 --> 00:19:18,080 Speaker 1: you can get it everywhere. Well, Andrea, you know I'm 352 00:19:18,240 --> 00:19:20,439 Speaker 1: as I hear you talk. I'm kind of torn because 353 00:19:20,720 --> 00:19:22,600 Speaker 1: I grew up in a family where my father is 354 00:19:22,600 --> 00:19:24,440 Speaker 1: a professor and he spends a lot of his day 355 00:19:24,440 --> 00:19:27,359 Speaker 1: tamping down the espresso and grind to get and measuring it. 356 00:19:27,400 --> 00:19:29,399 Speaker 1: I mean, this is a very important pursuit in my household. 357 00:19:29,600 --> 00:19:31,280 Speaker 1: On the other hand, you know, we hear so much 358 00:19:31,280 --> 00:19:34,560 Speaker 1: about burning down the rainforests, and you know, and flattening 359 00:19:34,640 --> 00:19:37,880 Speaker 1: areas and and sort of the unsustainability of a lot 360 00:19:37,880 --> 00:19:40,120 Speaker 1: of the coffee industry. Can you speak to that? I mean, 361 00:19:40,160 --> 00:19:42,159 Speaker 1: how do you deal with that? So it used to be, 362 00:19:42,160 --> 00:19:46,080 Speaker 1: it's much better now. Coffee has been uh, let's say, 363 00:19:46,480 --> 00:19:51,359 Speaker 1: well negative negative lee known until three decades ago for 364 00:19:51,480 --> 00:19:55,960 Speaker 1: deforestation and also harsh working condition in the producing countries. 365 00:19:56,320 --> 00:20:00,800 Speaker 1: Situation has dramatically improved, let's say, since the the eighties, 366 00:20:01,520 --> 00:20:05,680 Speaker 1: thanks to let's say, the revolution of good MC coffee. 367 00:20:06,800 --> 00:20:11,080 Speaker 1: The revolution gour mc coffee made coffee to develop three virtues, 368 00:20:11,280 --> 00:20:16,000 Speaker 1: which are pleasure, health, and sustainability. Pleasure. There is much 369 00:20:16,000 --> 00:20:20,920 Speaker 1: better quality around, better preparation, better places of consumption, more 370 00:20:21,000 --> 00:20:25,879 Speaker 1: variety so people can have fun and enjoy health. The 371 00:20:25,920 --> 00:20:29,919 Speaker 1: perception of health has dramatical increase Now not only sixty 372 00:20:30,359 --> 00:20:35,960 Speaker 1: of people and the the reverted ratio before before believe 373 00:20:36,000 --> 00:20:38,840 Speaker 1: that coffee is good for health. There are several studies 374 00:20:38,880 --> 00:20:41,879 Speaker 1: which confirm all confirmed that coffee makes you live longer 375 00:20:41,920 --> 00:20:46,160 Speaker 1: and better and even the WORLL The Health Organization did 376 00:20:46,200 --> 00:20:50,800 Speaker 1: reclassify coffee from possibly consinergenic to non consumer genny so, 377 00:20:50,840 --> 00:20:53,560 Speaker 1: which is a huge achievement. And last, but the least, 378 00:20:53,560 --> 00:20:59,720 Speaker 1: sustainability didn't improve. Environmental one, uh, no deforestation any longer. 379 00:21:00,040 --> 00:21:02,879 Speaker 1: The last two decades there has been a fifty increase 380 00:21:02,960 --> 00:21:06,440 Speaker 1: in production with no more actors, So no more the deforestation. 381 00:21:07,119 --> 00:21:12,800 Speaker 1: We can always confirmed that coffee planting contributes positively to 382 00:21:13,119 --> 00:21:18,359 Speaker 1: a carbon sequestration. You know, also the water consumption has 383 00:21:18,400 --> 00:21:23,200 Speaker 1: been dramatically reduced and the water pollution has been very limited. 384 00:21:23,560 --> 00:21:27,119 Speaker 1: So this is all positive. Of course, on average there 385 00:21:27,160 --> 00:21:31,199 Speaker 1: can be always negative situations and the social one. The 386 00:21:31,240 --> 00:21:34,359 Speaker 1: only thing that we can say is that the human 387 00:21:34,400 --> 00:21:37,320 Speaker 1: development index of most of the producing countries in the 388 00:21:37,400 --> 00:21:40,480 Speaker 1: last twenties did improve. Is it enough? No, it is 389 00:21:40,520 --> 00:21:43,800 Speaker 1: not enough. There's still a lot to do, but the 390 00:21:43,880 --> 00:21:47,280 Speaker 1: situation is improving. Can I just give you about twenty seconds, 391 00:21:47,400 --> 00:21:49,760 Speaker 1: very short, you're on your way to Boston, home to 392 00:21:49,760 --> 00:21:52,080 Speaker 1: Bloomberg twelve. But if you can just tell us what 393 00:21:52,119 --> 00:21:54,760 Speaker 1: are you planning to do in Boston. Well, in Boston, 394 00:21:54,880 --> 00:21:59,200 Speaker 1: I'm going to have a conversation at the university level 395 00:21:59,600 --> 00:22:02,199 Speaker 1: about the coffee culture in Jenna. This is just how 396 00:22:02,240 --> 00:22:04,640 Speaker 1: people wear it is and what it's about. What this 397 00:22:04,720 --> 00:22:08,920 Speaker 1: is a at the university at Boston and the detail 398 00:22:08,960 --> 00:22:12,800 Speaker 1: I will tell you later. I still alright, alright, alright, 399 00:22:13,119 --> 00:22:15,159 Speaker 1: but you're gonna be at Boston University. It was that 400 00:22:15,280 --> 00:22:18,800 Speaker 1: private say all right, you're gonna learn everything you need 401 00:22:18,840 --> 00:22:22,440 Speaker 1: to know about coffee. Thank you very much. We certainly did. Uh. 402 00:22:22,560 --> 00:22:26,879 Speaker 1: Andrea Eally he is the chairman of Elie Cafe is 403 00:22:26,920 --> 00:22:29,320 Speaker 1: the worldwide. Did you feel like you've got a little 404 00:22:29,320 --> 00:22:33,520 Speaker 1: coffee just even being next to someone who has just 405 00:22:33,560 --> 00:22:35,480 Speaker 1: experienced it and lived it for so long. I think 406 00:22:35,480 --> 00:22:37,720 Speaker 1: he's going to get you a cup of espresso right now. 407 00:22:38,119 --> 00:22:41,200 Speaker 1: So yeah, alright, this is Bloomberg Markets. I'm pim Fox. 408 00:22:41,240 --> 00:22:53,679 Speaker 1: My co host Lisa Brahma, It's this is Bloomberg. I 409 00:22:53,680 --> 00:22:56,399 Speaker 1: want to take a look now at Apple and what 410 00:22:56,480 --> 00:22:59,879 Speaker 1: to expect after the bell today when they report earning. 411 00:23:00,160 --> 00:23:05,360 Speaker 1: David Garretty CEO at g v A research here with us. Now, Dave, 412 00:23:05,600 --> 00:23:07,480 Speaker 1: what are you expecting to see from Apple? At least, 413 00:23:07,600 --> 00:23:10,680 Speaker 1: thank you. We're looking today for revenues to be approximately 414 00:23:10,760 --> 00:23:14,760 Speaker 1: forty UM billion dollars, which is gonna be down about 415 00:23:14,880 --> 00:23:18,040 Speaker 1: nine percent year every year. Earnings about a dollar sixty five, 416 00:23:18,040 --> 00:23:20,400 Speaker 1: which is gonna be down about sixteen percent year every year. 417 00:23:20,760 --> 00:23:24,439 Speaker 1: In terms of iPhones shipments uh number about forty six million, 418 00:23:24,600 --> 00:23:27,480 Speaker 1: which actually is down as well. Note that for Apple, 419 00:23:27,560 --> 00:23:29,760 Speaker 1: this is gonna be the third consecutive quarter in which 420 00:23:29,760 --> 00:23:33,520 Speaker 1: you've seen actually revenues and earnings down year over years. 421 00:23:33,560 --> 00:23:35,080 Speaker 1: You have, but nothing can stop them, right, I mean, 422 00:23:35,080 --> 00:23:38,000 Speaker 1: their shares are up almost four percent this year. Certainly 423 00:23:38,119 --> 00:23:40,680 Speaker 1: who cares? If we look back over the last six months, 424 00:23:40,680 --> 00:23:42,800 Speaker 1: I mean, the stocks up almost thirty percent, while the 425 00:23:42,880 --> 00:23:44,760 Speaker 1: S and P five hundred is up you know, roughly 426 00:23:44,800 --> 00:23:49,440 Speaker 1: about ten. So clearly people trading what typically has been 427 00:23:49,480 --> 00:23:51,879 Speaker 1: sort of the product cycles for Apple, obviously by the 428 00:23:51,880 --> 00:23:54,280 Speaker 1: stock ahead of a new phone launched with the iPhone seven, 429 00:23:54,520 --> 00:23:56,439 Speaker 1: you know, certainly they've been benefiting here, and not just 430 00:23:56,480 --> 00:23:58,119 Speaker 1: from what they've been doing with their own product, but 431 00:23:58,160 --> 00:24:01,680 Speaker 1: the fact that Samsung is basically fully recalled the Galaxy 432 00:24:01,720 --> 00:24:04,800 Speaker 1: Note seven. I'm just trying to wrap my mind around 433 00:24:04,840 --> 00:24:07,240 Speaker 1: the fact that this is a company that at least 434 00:24:07,240 --> 00:24:10,720 Speaker 1: has already done or will do forty seven billion dollars 435 00:24:11,240 --> 00:24:14,880 Speaker 1: in profit. Right, that's more. I think that GM did 436 00:24:15,080 --> 00:24:19,200 Speaker 1: sales for the quarter of like forty eight. That might 437 00:24:19,240 --> 00:24:21,600 Speaker 1: be a good year for GM. No. No, this is 438 00:24:21,600 --> 00:24:25,720 Speaker 1: a great cash on their balance, like Bolivia has for 439 00:24:25,760 --> 00:24:29,040 Speaker 1: their entire condom. I mean, this is I just want 440 00:24:29,040 --> 00:24:31,439 Speaker 1: to try to get my mind around the juggernaut that 441 00:24:31,520 --> 00:24:34,200 Speaker 1: this machine is because people keep looking and I mean 442 00:24:34,240 --> 00:24:37,400 Speaker 1: in relation to the stock, not into the ge whiz. 443 00:24:37,400 --> 00:24:39,479 Speaker 1: We're gonna have an iPhone sixteen and it's gonna make 444 00:24:39,480 --> 00:24:42,520 Speaker 1: dinner for me. The stock itself, do you think it's 445 00:24:42,560 --> 00:24:45,120 Speaker 1: under priced? I think the stock right now still has 446 00:24:45,160 --> 00:24:47,280 Speaker 1: some further legs on it and certainly has been assisted 447 00:24:47,280 --> 00:24:49,399 Speaker 1: here by Samsung. I mean, we are going into the 448 00:24:49,480 --> 00:24:54,160 Speaker 1: strongest period seasonally year end holiday shopping in the Western Hemisphere. 449 00:24:54,359 --> 00:24:55,879 Speaker 1: You go to the first quarter of next year, you 450 00:24:55,920 --> 00:24:57,560 Speaker 1: have the lunar New Year in China. But you see, 451 00:24:57,560 --> 00:24:59,720 Speaker 1: you're talking about the consumer. I'm talking about the stock. 452 00:24:59,760 --> 00:25:02,760 Speaker 1: Here's my my my thesis, right is that if you 453 00:25:02,800 --> 00:25:05,639 Speaker 1: want to buy into the revolution that smartphones are going 454 00:25:05,680 --> 00:25:07,960 Speaker 1: to be with us forever. If you want to invest 455 00:25:07,960 --> 00:25:11,000 Speaker 1: in a company who produces a balance sheet and a 456 00:25:11,040 --> 00:25:13,240 Speaker 1: profit and loss statement that you can read in English 457 00:25:13,280 --> 00:25:17,600 Speaker 1: and understand, there really are not that many out there, right, 458 00:25:17,640 --> 00:25:20,359 Speaker 1: I mean Samsung has it, and I'm not saying problems, 459 00:25:20,359 --> 00:25:23,680 Speaker 1: no problems, but what else is there? Right? Apple is 460 00:25:23,680 --> 00:25:27,359 Speaker 1: still very much your suit, your default way to trade 461 00:25:27,560 --> 00:25:31,280 Speaker 1: smartphones on a pure play basis. Clearly though if you 462 00:25:31,280 --> 00:25:32,760 Speaker 1: look at some of the things that are being enabled 463 00:25:32,760 --> 00:25:36,000 Speaker 1: by the technology, mean, Google remains a far more interesting 464 00:25:36,080 --> 00:25:39,560 Speaker 1: company in terms of what it's actually making possible. And 465 00:25:39,640 --> 00:25:41,960 Speaker 1: I'm not going to say that the Google Pixel is 466 00:25:41,960 --> 00:25:44,479 Speaker 1: going to be suddenly like the new phone that they 467 00:25:44,520 --> 00:25:47,520 Speaker 1: came out, correct, and it's not making is that Hawawei 468 00:25:47,640 --> 00:25:50,639 Speaker 1: making it for that? That's actually it's a HTC I right. 469 00:25:50,720 --> 00:25:52,800 Speaker 1: But but in terms of having the Pixel out, I 470 00:25:52,800 --> 00:25:56,480 Speaker 1: mean having the Galaxy Notes seven from Samsung fully off 471 00:25:56,480 --> 00:26:00,399 Speaker 1: the market, clearly, consumers want to have a competing product 472 00:26:00,480 --> 00:26:03,120 Speaker 1: relative to whatever Apple has two. So in some respects 473 00:26:03,119 --> 00:26:06,760 Speaker 1: in this holiday season, it becomes default, perhaps the Google Pixel. 474 00:26:07,160 --> 00:26:10,119 Speaker 1: So there's so much optimism here and and and good feeling. 475 00:26:10,280 --> 00:26:11,560 Speaker 1: I have to bring it down a little bit and 476 00:26:11,600 --> 00:26:14,360 Speaker 1: talk about Twitter. Um. You know, they said that they're 477 00:26:14,359 --> 00:26:17,240 Speaker 1: going to plan job cuts, perhaps as much as three 478 00:26:17,320 --> 00:26:21,480 Speaker 1: hundred people. Uh, they're expecting to report earnings later this week. 479 00:26:21,640 --> 00:26:24,119 Speaker 1: What could they say that wouldn't be regarded as a 480 00:26:24,160 --> 00:26:27,080 Speaker 1: catastrophe from the market's point of view. I mean, the 481 00:26:27,119 --> 00:26:30,240 Speaker 1: issue around Twitter primarily is just the fact of slowing 482 00:26:30,359 --> 00:26:33,080 Speaker 1: user growth, I mean, less engagement. I mean, there's only 483 00:26:33,119 --> 00:26:35,440 Speaker 1: so much that you can do historically within the confines 484 00:26:35,520 --> 00:26:38,159 Speaker 1: of a hundred and forty characters. Granted they've expanded this. 485 00:26:38,240 --> 00:26:40,720 Speaker 1: If you want to start writing novels on Twitter, you 486 00:26:40,800 --> 00:26:43,320 Speaker 1: might think about it, but nope, but nobody uses Twitter 487 00:26:43,400 --> 00:26:46,600 Speaker 1: for having anything longer than basically sort of a very short, 488 00:26:46,720 --> 00:26:50,280 Speaker 1: concise thought. Uh. And obviously, when Donald Trump goes away, 489 00:26:50,320 --> 00:26:52,119 Speaker 1: I mean, obviously the Twitter user rates are going to 490 00:26:52,200 --> 00:26:55,359 Speaker 1: go down. Um. But the thing that's more important to 491 00:26:55,359 --> 00:26:57,200 Speaker 1: look at in terms of Twitter is that they've gone 492 00:26:57,240 --> 00:27:00,080 Speaker 1: out to the market in terms of possibly looking the 493 00:27:00,119 --> 00:27:05,359 Speaker 1: strategic engagement of sale. Obviously pretty much everybody has walked away. Um. 494 00:27:05,359 --> 00:27:07,320 Speaker 1: Clearly the company is sort of saying we need to 495 00:27:07,359 --> 00:27:09,560 Speaker 1: retrench and we need to retrench now. And they really 496 00:27:09,560 --> 00:27:11,480 Speaker 1: haven't figured out where they gonna go with this. So 497 00:27:11,840 --> 00:27:13,919 Speaker 1: I'm not gonna say here ahead of Thanksgiving that we 498 00:27:13,960 --> 00:27:16,679 Speaker 1: take Twitter and stick a fork in it, but nonetheless, 499 00:27:16,760 --> 00:27:19,600 Speaker 1: until such time as as things to come, well, it 500 00:27:19,640 --> 00:27:22,760 Speaker 1: won't last that long. It'll only be in morsel, not 501 00:27:22,840 --> 00:27:26,119 Speaker 1: a full meal in any event. In any event, but 502 00:27:26,160 --> 00:27:28,760 Speaker 1: the issue for Twitter here is that they've They've tried 503 00:27:28,800 --> 00:27:31,960 Speaker 1: to go, they tried to engage, they've failed, and there 504 00:27:31,960 --> 00:27:34,840 Speaker 1: has to be a retrenchment. Uh. The question is how 505 00:27:34,920 --> 00:27:38,200 Speaker 1: far does this extend going out into two thousand seventeen? 506 00:27:38,760 --> 00:27:41,439 Speaker 1: David Carty? Are we're gonna be talking about Twitter in 507 00:27:41,480 --> 00:27:43,520 Speaker 1: the next year ahead? I mean we're at the twenty 508 00:27:43,560 --> 00:27:45,600 Speaker 1: you know, we're at the Year Ahead Bloomberg Summit here 509 00:27:45,640 --> 00:27:47,960 Speaker 1: at the at the bar quiet um. We've got a 510 00:27:48,040 --> 00:27:50,119 Speaker 1: variety of guests looking at and are we really going 511 00:27:50,160 --> 00:27:52,640 Speaker 1: to be talking about a company that does about two 512 00:27:52,680 --> 00:27:56,080 Speaker 1: point two billion in sales, loses half a billion a year, 513 00:27:56,480 --> 00:27:58,560 Speaker 1: and has a market capit twelve billion? Oh? Yes, it 514 00:27:58,640 --> 00:28:00,800 Speaker 1: just happens to be Twitter. I mean, why do we care? 515 00:28:01,000 --> 00:28:03,600 Speaker 1: Would I would only argue that Twitter is something that 516 00:28:03,640 --> 00:28:05,359 Speaker 1: you'll be looking at in the rear view mirror in 517 00:28:05,400 --> 00:28:08,960 Speaker 1: two thousand seventeen is basically being technology road kill. You're 518 00:28:08,960 --> 00:28:11,840 Speaker 1: going to continue to talk about companies like Facebook. Obviously, 519 00:28:11,880 --> 00:28:14,199 Speaker 1: Apple is going to have the tenth anniversary of the 520 00:28:14,240 --> 00:28:18,120 Speaker 1: two thousands of the iPhone coming out. It's expected that 521 00:28:18,200 --> 00:28:20,560 Speaker 1: the next generation of the iPhone, the iPhone eight, is 522 00:28:20,560 --> 00:28:23,719 Speaker 1: going to be something more significant. The company has the opportunity, 523 00:28:23,800 --> 00:28:27,640 Speaker 1: given Samsung's missteps, to possibly move ahead of Samsung, which 524 00:28:27,680 --> 00:28:30,400 Speaker 1: is important from an innovation standpoint. People have been very 525 00:28:30,440 --> 00:28:33,359 Speaker 1: critical of what Apple has not been doing in technology, 526 00:28:33,359 --> 00:28:36,800 Speaker 1: whether it's around artificial intelligence, whether it's around virtual reality, 527 00:28:36,840 --> 00:28:41,800 Speaker 1: augmented reality. There's clearly much wood for Apple to chop, 528 00:28:41,960 --> 00:28:45,480 Speaker 1: so to speak. Well, thank you very much, David Garrity. 529 00:28:46,240 --> 00:28:49,440 Speaker 1: He is the chief executive of g v A Research. 530 00:28:49,520 --> 00:28:52,880 Speaker 1: I'm not I'm not giving up my Twitter again. Don't 531 00:28:52,920 --> 00:29:00,520 Speaker 1: give you. You're very good. Thanks for listening to Bloomberg 532 00:29:00,520 --> 00:29:03,920 Speaker 1: pien L podcast. You can subscribe and listen to interviews 533 00:29:03,960 --> 00:29:09,120 Speaker 1: at iTunes, SoundCloud, or whatever podcast platform you prefer. I'm 534 00:29:09,160 --> 00:29:12,200 Speaker 1: pim Fox. I'm out there on Twitter at pim Fox. 535 00:29:12,480 --> 00:29:15,200 Speaker 1: I'm out there on Twitter at Lisa Abramo. It's one 536 00:29:15,480 --> 00:29:18,200 Speaker 1: before the podcast. You can always catch us worldwide on 537 00:29:18,240 --> 00:29:19,040 Speaker 1: Bloomberg Radio