Speaker 1: Welcome to the Bloomberg pim L Podcast. I'm pim Fox.
Speaker 1: Along with my co host Lisa Abramowitz. Each day we
Speaker 1: bring you the most important, noteworthy, and useful interviews for
Speaker 1: you and your money, whether at the grocery store or
Speaker 1: the trading floor. Find the Bloomberg p L Podcast on iTunes,
Speaker 1: SoundCloud and at Bloomberg dot com. We are broadcasting live
Speaker 1: from the Bloomberg ear Ahead Summer at the Park Hyatt
Speaker 1: in New York City. Our next guest is No Stranger
Speaker 1: to news events or two policy changes in the world.
Speaker 1: Joining us now is and Marie Slaughter, the president and
Speaker 1: the chief executive of New America Foundation UH, formerly policy
Speaker 1: advisor in the U. S. State Department. And Marie Slaughter,
Speaker 1: thank you very much for being with us. My pleasure.
Speaker 1: You wanted to focus on equality and women's rights and
Speaker 1: the workforce, and I'm wondering if you could just give
Speaker 1: us a sort of encapsulated version of what your presentation
Speaker 1: was about and what you hope to achieve. So with
Speaker 1: the greatest thing about being in here was that the
Speaker 1: audience was certainly majority men. Often when we have this
Speaker 1: conversation as women and I had a very simple message,
Speaker 1: which was, we are never going to get to gender
Speaker 1: equality unless we change our expectations of men as much
Speaker 1: as we've changed our expectations of women, so that all
Speaker 1: policies have to be gender neutral. You can't have maternity leave, uh,
Speaker 1: and no paternity leave or long maternity leave but short
Speaker 1: paternity leave. You have to assume all human beings have children.
Speaker 1: Think about same sex couples, for instance, our adoption. But
Speaker 1: you also have to assume that you know a man
Speaker 1: with children is going to slow down if you assume
Speaker 1: that a woman with children is gonna slow down, or
Speaker 1: assume a woman has a lead parent at home the
Speaker 1: way you assume a man has a lead parent at home.
Speaker 1: And finally, you're going to have to change the automatic
Speaker 1: as some and uh that you know the person who
Speaker 1: works longest works best and actually look at results rather
Speaker 1: than FaceTime. You wrote a story an article, uh, why
Speaker 1: women still can't have it all in the Atlantic in
Speaker 1: two thousand twelve. Um, you have two boys going back.
Speaker 1: If you could do it all over again, what would
Speaker 1: you have done differently? Let's make it easier? Oh? Nothing, really?
Speaker 1: I mean you know, I was a tenured professor and
Speaker 1: my husband was a tenured professor. It doesn't get better
Speaker 1: than that. And I was a dean, and but Andy
Speaker 1: was a tenured professor, so we had that flexibility. So
Speaker 1: the only thing, you know, I could have not taken
Speaker 1: the job with Secretary Clinton, but I would never say
Speaker 1: I should have done that, because even as hard as
Speaker 1: it was, it was totally worth it. And um, you know,
Speaker 1: I tell young women all the time if they're going
Speaker 1: to go work on the National Security Council, I say,
Speaker 1: do it. You know you'll love it. It's great for
Speaker 1: your resume. But just to understand, you're not going to
Speaker 1: see your children, so don't try to do both. And
Speaker 1: if your spouse is not willing to be redparent, you've
Speaker 1: got a big problem because you really aren't gonna be
Speaker 1: able to do both. So I wouldn't change it. Um,
Speaker 1: And you know, I have been home as much as
Speaker 1: I'm ever home. My kids would say my definition of
Speaker 1: being home is different than many people's, but for for
Speaker 1: both of them, all the way through the end of
Speaker 1: high school. And I wouldn't trade that. Now. You served
Speaker 1: as a Director of Policy Planning for the US State
Speaker 1: Department from two thousand nine to two tholeven. You were
Speaker 1: the first woman to actually hold that position. What did
Speaker 1: you learn as a result of your tenure and are
Speaker 1: there things that you wish you knew about? What was accomplishable?
Speaker 1: What was the real world versus the policy world. Can
Speaker 1: you give us some some insight. Yeah, well, so I
Speaker 1: learned a lot. So you have to start with a proposition.
Speaker 1: Having been a tenured professor, I was fifty years old
Speaker 1: before I ever had a boss, because at the academy
Speaker 1: you do not have a boss. So getting used to
Speaker 1: having a boss, even a fabulous boss like like Hillary Clinton,
Speaker 1: took some doing. Um, I would say, I really did
Speaker 1: experience something I had read about but not not seen that.
Speaker 1: You know, women, anybody will be cut out of a
Speaker 1: meeting in Washington, but effectively to be in the meeting
Speaker 1: you have to act like, of course, I'm going to
Speaker 1: be in this meeting, which I think is harder for
Speaker 1: women to do than men. The other thing is that
Speaker 1: the you know, this should have been obvious too, but
Speaker 1: the in this case young men networks. They weren't a
Speaker 1: whole boy networks. They were young men. There were thirty
Speaker 1: two year olds through from the White House, through the
Speaker 1: Treasury to d O D to State that's where the
Speaker 1: information traveled, and information is gold in politics, and so
Speaker 1: they just weren't enough women to have that kind of
Speaker 1: network so that you always were one step ahead of
Speaker 1: your boss. Given your experience an international relations I would
Speaker 1: be remiss not to ask you. Looking around right now,
Speaker 1: people are worried about a lot of crises around the world.
Speaker 1: Which do you think is most imminent and important to
Speaker 1: watch and that the U S could potentially help to abeliate.
Speaker 1: It's hard to know where to where to start. Uh,
Speaker 1: you know, I do so imminent. We are watching the
Speaker 1: implosion of the entire Middle East and we are not
Speaker 1: going to be able to cabin that. I disagree sharply
Speaker 1: with the President on his Syria policy because I think
Speaker 1: not just refugees, but we're just incubating another whole generation
Speaker 1: of terrorists and we are destabilizing a region that is
Speaker 1: very important to us. So I think that that is critical.
Speaker 1: The crisis I worry about most is a accidental collision
Speaker 1: or incident in the South or East China Sea, where
Speaker 1: for domestic political reasons, Japan goes on alert. Japan is
Speaker 1: archery d the ally we back Japan, China goes on alert.
Speaker 1: China has to feed its nationalist youth, and suddenly it
Speaker 1: looks like nineteen fourteen, where nobody really wants to go
Speaker 1: to war, but no one can see a way out.
Speaker 1: So that's one I worry about. And then the last one,
Speaker 1: which we could do much more about, is Venezuela is
Speaker 1: going to collapse. And when Venezuela collapses, it's gonna be
Speaker 1: bad for energy markets, it's going to be terrible for refugees,
Speaker 1: It's could further destabilize Colombia. You know, we we need
Speaker 1: to be paying much more attention and doing what we
Speaker 1: can to help stabilize that country, preferably with the rest
Speaker 1: of the Oias. Thank you so much. This was really
Speaker 1: really tremendous. And Maurice Slaughter, a long time UH policy
Speaker 1: adviser to the president but also professor and UH now
Speaker 1: currently president and CEO of New America, thank you so
Speaker 1: much for being with us. We heard a lot of
Speaker 1: really fantastic things for the year ahead. I'm hopeful, paim
Speaker 1: I've got to tell you a little bit more helpful
Speaker 1: than I was when I started. I'm hopeful for your
Speaker 1: We are here with an esteemed guest, Valerie Jarrett, Senior,
Speaker 1: adviser to President Barack Obama and longtime confidante here at
Speaker 1: the Bloomberg Here Ahead Summit to talk about some of
Speaker 1: the issues and some of the progress made in workplace issues. Valerie,
Speaker 1: thank you so much for being with us. Thank you,
Speaker 1: Lisa and Pim. It's a delight for me to be here,
Speaker 1: and I appreciate you putting a spotlight on these issues
Speaker 1: that are so important to working families. So what have
Speaker 1: some of the biggest surprises been for you as you've
Speaker 1: pushed through some of your workplace agenda. Well, frankly, how
Speaker 1: easy it is to convince businesses about what's in their
Speaker 1: self interest once you show them the data. So, for example, UM,
Speaker 1: eight years ago, it was hard to get businesses to
Speaker 1: really talk about investing in their workforce in the form
Speaker 1: of paid leave, paid sick days, workplace flexibility, affordable childcare,
Speaker 1: equal pay. There wasn't fun and center. In fact, I
Speaker 1: would venture to guess if I'd been invited to Bloomberg,
Speaker 1: that wouldn't have been the topic that you'd wanted me
Speaker 1: to address. And I've been so hardened to see truly
Speaker 1: a transformation over the eight years in terms of the
Speaker 1: awareness and not just with the large companies publicly health companies,
Speaker 1: but small businesses who care about their culture and care
Speaker 1: about retaining their workforce and recognizing it's not just enough
Speaker 1: to get him in the door. You've got to be
Speaker 1: able to compete in the twenty one century UM marketplace,
Speaker 1: and that's dependent upon recognizing the needs of the century worker.
Speaker 1: The President has just signed an executive order having to
Speaker 1: do with companies that do business with the federal government.
Speaker 1: Wonder if you could just expand on that. Sure, well,
Speaker 1: we recognize right now that there's no national paid sick
Speaker 1: day requirement UM, and so there's legislation pending called the
Speaker 1: Healthy Families Act that would require companies to give their
Speaker 1: workforce at least seven days of paid sick time. I
Speaker 1: would mention also that we're the only developed country in
Speaker 1: the world that doesn't have a federal paid lea paid
Speaker 1: sickly policy. So, in light of Congress is failure to act,
Speaker 1: the President sign an executive order saying all right, well,
Speaker 1: at least if we're spending federal taxpayer dollars, we want
Speaker 1: to know that the workers are going to at least
Speaker 1: have seven days of paid sick time. And so if
Speaker 1: you want to do business with the federal government, then
Speaker 1: you're going to have to pay your workers um paid
Speaker 1: sick days for seven days. Everybody gets sick, and I
Speaker 1: don't know about you, but if I go to a restaurant,
Speaker 1: I actually want the worker to be healthy. So this
Speaker 1: isn't just that it's good for the worker and good.
Speaker 1: If I'm a mom and my daughter sick, I don't
Speaker 1: want to get doctor day's work because I want to
Speaker 1: stay home and take care of her. I want to
Speaker 1: be able to do that. And all too often, particularly
Speaker 1: lower wage workers can't afford to choose between going to
Speaker 1: work or missing that day's pay, or little losing your
Speaker 1: job if you don't show up. So that's what the
Speaker 1: executive and we're very familiar as consumers about following the
Speaker 1: whole supply chain. In this case, it goes back to
Speaker 1: a person. It goes back to a person exactly. And
Speaker 1: if you're an employer, you're only going to be as
Speaker 1: good as the people who you employ, and recognizing that
Speaker 1: you've got to take care of them and invest in
Speaker 1: them is not just good for women. This is a
Speaker 1: working family issue, but it's also good for business, and
Speaker 1: it's good for our economy. We're now competing with companies
Speaker 1: all over the world. I just mentioned I was here
Speaker 1: several months ago at Spotify, and they just announced twelve
Speaker 1: months of paid leave. Twelve months. Why because their headquarted
Speaker 1: in Sweden where they offer eighteen months, and they're having
Speaker 1: a hard time with their workforce because the ones that
Speaker 1: work here are going or wait a minute, look what's
Speaker 1: happening over in Sweden. So they're needing to close that gap.
Speaker 1: And that's happening all over the world. And so companies
Speaker 1: that recognize the importance of investing in their work in
Speaker 1: their workforce are seeing the results of that investment. As
Speaker 1: the mother of two small children who works full time
Speaker 1: and as a husband who some time, I totally understand this.
Speaker 1: But I also understand, you know, when you hear about
Speaker 1: equality of pay for women, and you hear about the
Speaker 1: child care issues, how complicated it is and how they're
Speaker 1: so many factors that go into it with respect to
Speaker 1: the wishes and sort of whether people are directed by
Speaker 1: virtue of getting time off to be the primary caregiver
Speaker 1: going forward, what do you think needs to happen. That's
Speaker 1: a really good question where one of the steps of
Speaker 1: the president has also taken is to require companies um
Speaker 1: that are over a hundred have over a hundred employees
Speaker 1: to collect data on pay and send it to the
Speaker 1: Department of Labor. And it's a tool for the companies,
Speaker 1: but it's also a tool for policymakers to try to
Speaker 1: figure out whether or not there is a discrepancy and pay.
Speaker 1: And if you get to the fact that there is,
Speaker 1: then you can go behind the numbers and figure out why.
Speaker 1: We've also asked companies to take what we're calling an
Speaker 1: equal Pay pledge. We have fifty seven companies around the country,
Speaker 1: big companies you know, from Amazon to Google to um GM,
Speaker 1: who have taken this pledge. And what the pledge requires
Speaker 1: is once a year, look at your data, look at
Speaker 1: what are the structural impediments to equal pay and other
Speaker 1: impediments to keeping work women in the workplace, and then
Speaker 1: make a commitment to try to deal with them. And
Speaker 1: what we do with the White House is try to
Speaker 1: show what are those best practices and if we're keeping
Speaker 1: women in the workforce, half of our horse is now
Speaker 1: comprised of women. Women are graduating from college that higher
Speaker 1: rates than men. Thank you, I'm familiar with that. But
Speaker 1: in a field such as computer science, they're only staying
Speaker 1: in three years and the number one reason they give
Speaker 1: for leaving the field culture. And so it's also not
Speaker 1: just a matter of lease of having these important policies
Speaker 1: on your books of your company, but you also have
Speaker 1: to create a culture where people feel comfortable to take them.
Speaker 1: At the White House, we have three months paid leave
Speaker 1: for men and women equal because we think they should.
Speaker 1: But just let's for one second. I mean, your job
Speaker 1: is incredibly important as it is, you do a lot
Speaker 1: of things. If if you were in that position, would
Speaker 1: you be able to extract yourself for three months or
Speaker 1: kind of a fallacy? No, you could, And that's what
Speaker 1: That's why I always give the White House as an example,
Speaker 1: because what's more high powered, high pressure than that? Where
Speaker 1: do we all think we're indispensable? But we have had
Speaker 1: several senior member is in the White House team, including
Speaker 1: my own deputy who left for three months, and we
Speaker 1: have now created the kind of culture where if you
Speaker 1: don't take that three months, then there's pure pressure and
Speaker 1: it's like, well what are you doing back here? And
Speaker 1: so you reinforce it. You know what happens while you're
Speaker 1: going somebody steps up and we all cover for each other,
Speaker 1: and we've created the environment where there isn't any resentment
Speaker 1: for it because it gives younger people a chance to
Speaker 1: move up for a second and get and sometimes that
Speaker 1: leads to promotion because people more senior get to see
Speaker 1: them in action. So if you can do it in
Speaker 1: the White House, and you can do it equally for
Speaker 1: men and women, and you work on that culture, and
Speaker 1: it takes a deliberate effort, you can't just say yes,
Speaker 1: you can do it. You have to model. People can't
Speaker 1: be what they can't see. And so when the Press Secretary,
Speaker 1: who's a man, Josh Ernist, takes paternity leave, that sends
Speaker 1: a message throughout his entire core group that if the
Speaker 1: Press Secretary can be out of pockets, so can everybody else.
Speaker 1: Just give you a quick twenty seconds here. Eight years
Speaker 1: Obama is ending his two terms. You're going to be
Speaker 1: ending eight years at the Washington White House. And so right,
Speaker 1: what are you going to miss the most? Oh my gosh,
Speaker 1: or what are you gonna miss the least? Congress? Okay,
Speaker 1: that was a much easier because I'm gonna miss so much.
Speaker 1: I'm gonna I'm gonna miss the people and I don't
Speaker 1: just mean the people with whom I work, but the
Speaker 1: people across this country who I have the privilege of
Speaker 1: meeting every day from all walks of life, who are
Speaker 1: really just trying to do right by their family. And
Speaker 1: I've met the most ordinary people who do extraordinary things,
Speaker 1: and we try to lift them up by inviting them
Speaker 1: to the White House and see them around. Um. So
Speaker 1: I will miss just the diversity of my day, and
Speaker 1: I'll miss the majesty of coming through those gates every morning,
Speaker 1: right every single day for nearly eight years. I just
Speaker 1: pinched myself at the privilege of working at the White House.
Speaker 1: I don't drink coffee, but I bet it's pretty good
Speaker 1: everything else from the White House mess. Maybe mess is
Speaker 1: really good. Thanks very much for joining us. A Valerie Jarrett,
Speaker 1: senior advisor to President Barack Obama. This is Bloomberg him.
Speaker 1: No better person for us to talk to you in
Speaker 1: the morning when I could be on my third cup
Speaker 1: of coffee than Andrea Ellie, Chairman and Ellie Cafees of
Speaker 1: Ellie Cafees, sp a on about his life. I want
Speaker 1: to talk to you first before we talk about climate change.
Speaker 1: I want to talk first about the fact that you
Speaker 1: are four years old when you had your first cup
Speaker 1: of coffee. Can you please explain to me how that
Speaker 1: how that came about as a mom of a four
Speaker 1: year old. Well, I was sipping coffee by the spoon,
Speaker 1: not drinking coffee four years old, but I was assisting
Speaker 1: my mother preparing the very first espresso. There was no
Speaker 1: expresso technology for home at that time, so she was
Speaker 1: grinding and dozing and waiting and then tamping. It took
Speaker 1: probably half an hour up to forty five minutes to
Speaker 1: get the one, and we were probably spoiling, you know,
Speaker 1: wasting three of them in order to get the good.
Speaker 1: But then the coffee was perfect. So all these has
Speaker 1: been completely revolutionized with the first paper pot that my
Speaker 1: father was able to innovate at the beginning of the eighties,
Speaker 1: and suddenly, uh, with the easy pots and the successful
Speaker 1: technology with capsules, these espresso technology became available worldwide and
Speaker 1: made the espresso to become global and loved by you know,
Speaker 1: consumers all over the world, and made the basically espresso
Speaker 1: to become the most you know, enjoyed way of drinking
Speaker 1: coffee even by tea drinkers and filter coffee drinkers. Let's
Speaker 1: talk about the Elie brand and the reach right now,
Speaker 1: because you're here at the Year Ahead Summit to learn,
Speaker 1: to meet, but also to share some of the new
Speaker 1: programs that you would put together at Elie to draw
Speaker 1: b in and to expand the brand when it is
Speaker 1: the is the most global coffee brand. Were present in
Speaker 1: over forty one hundred forty countries and we do basically
Speaker 1: one third of our stays in our domestic country, Italy.
Speaker 1: So I feel when I hear in New York, I
Speaker 1: feel really I'm at home. And um, it's a family
Speaker 1: business controlled by the family. So we grow set finance,
Speaker 1: which is a challenge because we are the private company
Speaker 1: which grows the more relatively in percentage compared to let's
Speaker 1: say other strictly private one. So that means that only
Speaker 1: companies which grow more than us are public realist okay,
Speaker 1: and we are obsessively focused only on quality. As a
Speaker 1: matter of fact, the company was founded upon the dream
Speaker 1: of my grandfather, the founder, to offer the greatest coffee
Speaker 1: to the world, and this dream became a mission the
Speaker 1: lighting lovers of goodness and beauty all over the world
Speaker 1: with the best coffee nature can provide enhanced by technology
Speaker 1: and the beauty of the arts. This is our mission
Speaker 1: and UH we stick to it to such an extent
Speaker 1: where we are the only coffee company in the world
Speaker 1: offering only one coffee, because if you want to offer
Speaker 1: the best, it can be only one. So the famous
Speaker 1: really Blend this is it's done with the nine ingredients
Speaker 1: of the best Arabbica that we source directly from all
Speaker 1: over the world in in in twenty countries. So next
Speaker 1: week there will be November one here in New York
Speaker 1: the very first international award awarding the best growers of
Speaker 1: the nine countries sourcing our our our blend. And then
Speaker 1: there will be also the best of the Best awarded
Speaker 1: by International jewel So with that, this Illy Blend is
Speaker 1: served globally and omni channel you can enjoy in the
Speaker 1: hospitality restaurants, cafes, hotels at home through different channels. On
Speaker 1: on the air, we are we have been recently appointed
Speaker 1: as the official coffee of the United Airlines and UH
Speaker 1: and so on the go. We also have this partnership
Speaker 1: with Coca Cola for the really ready to drink, so
Speaker 1: you can get it everywhere. Well, Andrea, you know I'm
Speaker 1: as I hear you talk. I'm kind of torn because
Speaker 1: I grew up in a family where my father is
Speaker 1: a professor and he spends a lot of his day
Speaker 1: tamping down the espresso and grind to get and measuring it.
Speaker 1: I mean, this is a very important pursuit in my household.
Speaker 1: On the other hand, you know, we hear so much
Speaker 1: about burning down the rainforests, and you know, and flattening
Speaker 1: areas and and sort of the unsustainability of a lot
Speaker 1: of the coffee industry. Can you speak to that? I mean,
Speaker 1: how do you deal with that? So it used to be,
Speaker 1: it's much better now. Coffee has been uh, let's say,
Speaker 1: well negative negative lee known until three decades ago for
Speaker 1: deforestation and also harsh working condition in the producing countries.
Speaker 1: Situation has dramatically improved, let's say, since the the eighties,
Speaker 1: thanks to let's say, the revolution of good MC coffee.
Speaker 1: The revolution gour mc coffee made coffee to develop three virtues,
Speaker 1: which are pleasure, health, and sustainability. Pleasure. There is much
Speaker 1: better quality around, better preparation, better places of consumption, more
Speaker 1: variety so people can have fun and enjoy health. The
Speaker 1: perception of health has dramatical increase Now not only sixty
Speaker 1: of people and the the reverted ratio before before believe
Speaker 1: that coffee is good for health. There are several studies
Speaker 1: which confirm all confirmed that coffee makes you live longer
Speaker 1: and better and even the WORLL The Health Organization did
Speaker 1: reclassify coffee from possibly consinergenic to non consumer genny so,
Speaker 1: which is a huge achievement. And last, but the least,
Speaker 1: sustainability didn't improve. Environmental one, uh, no deforestation any longer.
Speaker 1: The last two decades there has been a fifty increase
Speaker 1: in production with no more actors, So no more the deforestation.
Speaker 1: We can always confirmed that coffee planting contributes positively to
Speaker 1: a carbon sequestration. You know, also the water consumption has
Speaker 1: been dramatically reduced and the water pollution has been very limited.
Speaker 1: So this is all positive. Of course, on average there
Speaker 1: can be always negative situations and the social one. The
Speaker 1: only thing that we can say is that the human
Speaker 1: development index of most of the producing countries in the
Speaker 1: last twenties did improve. Is it enough? No, it is
Speaker 1: not enough. There's still a lot to do, but the
Speaker 1: situation is improving. Can I just give you about twenty seconds,
Speaker 1: very short, you're on your way to Boston, home to
Speaker 1: Bloomberg twelve. But if you can just tell us what
Speaker 1: are you planning to do in Boston. Well, in Boston,
Speaker 1: I'm going to have a conversation at the university level
Speaker 1: about the coffee culture in Jenna. This is just how
Speaker 1: people wear it is and what it's about. What this
Speaker 1: is a at the university at Boston and the detail
Speaker 1: I will tell you later. I still alright, alright, alright,
Speaker 1: but you're gonna be at Boston University. It was that
Speaker 1: private say all right, you're gonna learn everything you need
Speaker 1: to know about coffee. Thank you very much. We certainly did. Uh.
Speaker 1: Andrea Eally he is the chairman of Elie Cafe is
Speaker 1: the worldwide. Did you feel like you've got a little
Speaker 1: coffee just even being next to someone who has just
Speaker 1: experienced it and lived it for so long. I think
Speaker 1: he's going to get you a cup of espresso right now.
Speaker 1: So yeah, alright, this is Bloomberg Markets. I'm pim Fox.
Speaker 1: My co host Lisa Brahma, It's this is Bloomberg. I
Speaker 1: want to take a look now at Apple and what
Speaker 1: to expect after the bell today when they report earning.
Speaker 1: David Garretty CEO at g v A research here with us. Now, Dave,
Speaker 1: what are you expecting to see from Apple? At least,
Speaker 1: thank you. We're looking today for revenues to be approximately
Speaker 1: forty UM billion dollars, which is gonna be down about
Speaker 1: nine percent year every year. Earnings about a dollar sixty five,
Speaker 1: which is gonna be down about sixteen percent year every year.
Speaker 1: In terms of iPhones shipments uh number about forty six million,
Speaker 1: which actually is down as well. Note that for Apple,
Speaker 1: this is gonna be the third consecutive quarter in which
Speaker 1: you've seen actually revenues and earnings down year over years.
Speaker 1: You have, but nothing can stop them, right, I mean,
Speaker 1: their shares are up almost four percent this year. Certainly
Speaker 1: who cares? If we look back over the last six months,
Speaker 1: I mean, the stocks up almost thirty percent, while the
Speaker 1: S and P five hundred is up you know, roughly
Speaker 1: about ten. So clearly people trading what typically has been
Speaker 1: sort of the product cycles for Apple, obviously by the
Speaker 1: stock ahead of a new phone launched with the iPhone seven,
Speaker 1: you know, certainly they've been benefiting here, and not just
Speaker 1: from what they've been doing with their own product, but
Speaker 1: the fact that Samsung is basically fully recalled the Galaxy
Speaker 1: Note seven. I'm just trying to wrap my mind around
Speaker 1: the fact that this is a company that at least
Speaker 1: has already done or will do forty seven billion dollars
Speaker 1: in profit. Right, that's more. I think that GM did
Speaker 1: sales for the quarter of like forty eight. That might
Speaker 1: be a good year for GM. No. No, this is
Speaker 1: a great cash on their balance, like Bolivia has for
Speaker 1: their entire condom. I mean, this is I just want
Speaker 1: to try to get my mind around the juggernaut that
Speaker 1: this machine is because people keep looking and I mean
Speaker 1: in relation to the stock, not into the ge whiz.
Speaker 1: We're gonna have an iPhone sixteen and it's gonna make
Speaker 1: dinner for me. The stock itself, do you think it's
Speaker 1: under priced? I think the stock right now still has
Speaker 1: some further legs on it and certainly has been assisted
Speaker 1: here by Samsung. I mean, we are going into the
Speaker 1: strongest period seasonally year end holiday shopping in the Western Hemisphere.
Speaker 1: You go to the first quarter of next year, you
Speaker 1: have the lunar New Year in China. But you see,
Speaker 1: you're talking about the consumer. I'm talking about the stock.
Speaker 1: Here's my my my thesis, right is that if you
Speaker 1: want to buy into the revolution that smartphones are going
Speaker 1: to be with us forever. If you want to invest
Speaker 1: in a company who produces a balance sheet and a
Speaker 1: profit and loss statement that you can read in English
Speaker 1: and understand, there really are not that many out there, right,
Speaker 1: I mean Samsung has it, and I'm not saying problems,
Speaker 1: no problems, but what else is there? Right? Apple is
Speaker 1: still very much your suit, your default way to trade
Speaker 1: smartphones on a pure play basis. Clearly though if you
Speaker 1: look at some of the things that are being enabled
Speaker 1: by the technology, mean, Google remains a far more interesting
Speaker 1: company in terms of what it's actually making possible. And
Speaker 1: I'm not going to say that the Google Pixel is
Speaker 1: going to be suddenly like the new phone that they
Speaker 1: came out, correct, and it's not making is that Hawawei
Speaker 1: making it for that? That's actually it's a HTC I right.
Speaker 1: But but in terms of having the Pixel out, I
Speaker 1: mean having the Galaxy Notes seven from Samsung fully off
Speaker 1: the market, clearly, consumers want to have a competing product
Speaker 1: relative to whatever Apple has two. So in some respects
Speaker 1: in this holiday season, it becomes default, perhaps the Google Pixel.
Speaker 1: So there's so much optimism here and and and good feeling.
Speaker 1: I have to bring it down a little bit and
Speaker 1: talk about Twitter. Um. You know, they said that they're
Speaker 1: going to plan job cuts, perhaps as much as three
Speaker 1: hundred people. Uh, they're expecting to report earnings later this week.
Speaker 1: What could they say that wouldn't be regarded as a
Speaker 1: catastrophe from the market's point of view. I mean, the
Speaker 1: issue around Twitter primarily is just the fact of slowing
Speaker 1: user growth, I mean, less engagement. I mean, there's only
Speaker 1: so much that you can do historically within the confines
Speaker 1: of a hundred and forty characters. Granted they've expanded this.
Speaker 1: If you want to start writing novels on Twitter, you
Speaker 1: might think about it, but nope, but nobody uses Twitter
Speaker 1: for having anything longer than basically sort of a very short,
Speaker 1: concise thought. Uh. And obviously, when Donald Trump goes away,
Speaker 1: I mean, obviously the Twitter user rates are going to
Speaker 1: go down. Um. But the thing that's more important to
Speaker 1: look at in terms of Twitter is that they've gone
Speaker 1: out to the market in terms of possibly looking the
Speaker 1: strategic engagement of sale. Obviously pretty much everybody has walked away. Um.
Speaker 1: Clearly the company is sort of saying we need to
Speaker 1: retrench and we need to retrench now. And they really
Speaker 1: haven't figured out where they gonna go with this. So
Speaker 1: I'm not gonna say here ahead of Thanksgiving that we
Speaker 1: take Twitter and stick a fork in it, but nonetheless,
Speaker 1: until such time as as things to come, well, it
Speaker 1: won't last that long. It'll only be in morsel, not
Speaker 1: a full meal in any event. In any event, but
Speaker 1: the issue for Twitter here is that they've They've tried
Speaker 1: to go, they tried to engage, they've failed, and there
Speaker 1: has to be a retrenchment. Uh. The question is how
Speaker 1: far does this extend going out into two thousand seventeen?
Speaker 1: David Carty? Are we're gonna be talking about Twitter in
Speaker 1: the next year ahead? I mean we're at the twenty
Speaker 1: you know, we're at the Year Ahead Bloomberg Summit here
Speaker 1: at the at the bar quiet um. We've got a
Speaker 1: variety of guests looking at and are we really going
Speaker 1: to be talking about a company that does about two
Speaker 1: point two billion in sales, loses half a billion a year,
Speaker 1: and has a market capit twelve billion? Oh? Yes, it
Speaker 1: just happens to be Twitter. I mean, why do we care?
Speaker 1: Would I would only argue that Twitter is something that
Speaker 1: you'll be looking at in the rear view mirror in
Speaker 1: two thousand seventeen is basically being technology road kill. You're
Speaker 1: going to continue to talk about companies like Facebook. Obviously,
Speaker 1: Apple is going to have the tenth anniversary of the
Speaker 1: two thousands of the iPhone coming out. It's expected that
Speaker 1: the next generation of the iPhone, the iPhone eight, is
Speaker 1: going to be something more significant. The company has the opportunity,
Speaker 1: given Samsung's missteps, to possibly move ahead of Samsung, which
Speaker 1: is important from an innovation standpoint. People have been very
Speaker 1: critical of what Apple has not been doing in technology,
Speaker 1: whether it's around artificial intelligence, whether it's around virtual reality,
Speaker 1: augmented reality. There's clearly much wood for Apple to chop,
Speaker 1: so to speak. Well, thank you very much, David Garrity.
Speaker 1: He is the chief executive of g v A Research.
Speaker 1: I'm not I'm not giving up my Twitter again. Don't
Speaker 1: give you. You're very good. Thanks for listening to Bloomberg
Speaker 1: pien L podcast. You can subscribe and listen to interviews
Speaker 1: at iTunes, SoundCloud, or whatever podcast platform you prefer. I'm
Speaker 1: pim Fox. I'm out there on Twitter at pim Fox.
Speaker 1: I'm out there on Twitter at Lisa Abramo. It's one
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