Speaker 1: This is Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes. Tim Steinovic from Bloomberg Radio. Welcome to the
Speaker 1: weekend edition of Bloomberg Business Week. Tim. It was your
Speaker 1: first full week with me as co host of Business Week,
Speaker 1: so great to have you here and listen. It was
Speaker 1: our first full week of the new year, week forty three,
Speaker 1: working from home. Still for so many we've been in
Speaker 1: our New York studio together covering a time that will
Speaker 1: be embedded in US history forever because of a mob
Speaker 1: of Trump supporters laying siege of the US capital on Wednesday. Carol,
Speaker 1: you and I were covering this live with a lot
Speaker 1: of help from our reporters in Washington, and it was
Speaker 1: remarkable to see it play out play by play, and
Speaker 1: politics definitely front and center as COVID nineteen continues to
Speaker 1: rage on here in the US and around the world,
Speaker 1: causing more and more economic shutdowns. And with that as
Speaker 1: our backdrop, we'll hear from Chris lu former Deputy Secretary
Speaker 1: of Labor under the Obama administration and executive director of
Speaker 1: Barack Obama's two thousand eight transition team. He's also a
Speaker 1: member of Joe Biden's transition team, so great conversation looking
Speaker 1: forward to that. Also, we cannot let down our vigilance.
Speaker 1: We can't assume that a vaccine is going to be
Speaker 1: to panacea. The founder of Human Genome Sciences, Dr William
Speaker 1: Hasltin on the virus is worrisome headlines and the chief
Speaker 1: information officer at B and Y Melon's pershing on pandemic
Speaker 1: tech trends that are taking off. All of that to
Speaker 1: come to him though, We begin with this week's cover story,
Speaker 1: the trashing of American Democracy, a new law in American
Speaker 1: politics and it's almost two hundred fifty year old democracy.
Speaker 1: We caught up with Bloomberg business Week national correspondent Josh
Speaker 1: Green and Bloomberg business Week titor Joel Weber on this
Speaker 1: story that is told through pictures and a timeline, just
Speaker 1: to give you a sense of kind of what what
Speaker 1: what we go through a magazine is. You know, Wednesday,
Speaker 1: we we tend to we shipp the covers, shipped a
Speaker 1: lot of the magazine. On Wednesday, we were ready to
Speaker 1: go with a completely different cover, and I actually released
Speaker 1: that file and then immediately caught it back when we
Speaker 1: witnessed what was happening in DC, because it's like, how
Speaker 1: could you not talk about out what was happening in
Speaker 1: the nation's capital. And Um, Josh actually had nothing to
Speaker 1: do with what we ended up doing in the issue
Speaker 1: because everything unfolded so quickly and we are on such
Speaker 1: a tight um timeline, and you know, the trashing of
Speaker 1: American democracy seemed exactly like the right line to use.
Speaker 1: Main cover line was was new Low and and it
Speaker 1: really felt that way and still feels that way way today.
Speaker 1: So I think we made the right call. And who
Speaker 1: knows that the world well ever see that other great idea.
Speaker 1: Hopefully they will. But the reason I wanted to bring
Speaker 1: Josh on the program today is just because I think,
Speaker 1: you know, because of Devil's Bargain and he's sort of
Speaker 1: his knowledge of of Bannon gave us a really early
Speaker 1: sense of how how real the Trump effect was gonna be.
Speaker 1: And so and did the cover story hit a couple
Speaker 1: of months ago on the coming out of the election
Speaker 1: of Trump is um is here to stay? So so Josh, like,
Speaker 1: help me understand. Do you think Trump is um is
Speaker 1: still here to stay? Yeah? I certainly think it is
Speaker 1: kind of an ugly reminder of its enduring power. With
Speaker 1: a not insubstantial group of hard right wing Republican voters. Um.
Speaker 1: You know, as as we see things here in Washington.
Speaker 1: You know, a lot of times elected officials, Republican senators
Speaker 1: and House members go along with this, this sort of
Speaker 1: thing and indulged Trump out of a sense of careerism
Speaker 1: and opportunity and uh, you know, a desire to advance
Speaker 1: within the party and a fear of their own Republican voters.
Speaker 1: And I think yesterday illustrated the danger in indulging this
Speaker 1: sort of thing and indulging Trump. Um. But you know,
Speaker 1: to me, one of the most horrifying things we witnessed
Speaker 1: was that after this violence that left four people dead,
Speaker 1: the capital overrun for the first time since eighteen twelve,
Speaker 1: was that a majority went ahead anyway after the words
Speaker 1: once Congress Reconnan in the middle of the night, uh
Speaker 1: and objected to Joe Biden the victories. I think that
Speaker 1: that shows you that even after this kind of mayhem, violence, death, terrorism, um,
Speaker 1: that Republicans are a certain segment of them are still
Speaker 1: going to march in line behind Donald Trump and whatever
Speaker 1: it is that he wants to do. And I think
Speaker 1: that's a good indication that there isn't going to be
Speaker 1: a clean break on January twentieth, and that that the
Speaker 1: country isn't going to be able to move beyond Trump,
Speaker 1: certainly not the Republican Party. Josh we we how do
Speaker 1: you joining us live on the radio as this was
Speaker 1: taking place on the in the Capitol, Um for your
Speaker 1: immediate reaction, for your immediate analysis. But I'm wondering to
Speaker 1: sort of think back on what happened, Um, what's the
Speaker 1: damage that's been done? No, I don't think we can
Speaker 1: begin to really know the answer to that question. I mean,
Speaker 1: you know, part of the damage I think is is
Speaker 1: psychological and knowing that our country is acceptible of this
Speaker 1: sort of thing. I think part of the damage, um,
Speaker 1: comes to the reputation reputation of the United States in
Speaker 1: the world. I mean, it's certainly tarnished and diminished our
Speaker 1: standing even further. Uh, and the and the eyes of
Speaker 1: allies and foreign countries. I mean one of the one
Speaker 1: of the things was the leaders of autocratic or dictorial
Speaker 1: countries essentially trolling the United States by releasing official statement,
Speaker 1: you know, expressing concern over the violence, death and mayhem
Speaker 1: in the US capital. Uh. It's it's just remarkable and
Speaker 1: almost unthinkable that this could have happened here. And then
Speaker 1: we still have two weeks to go, and and you know,
Speaker 1: who knows. I mean, every day things seem to get
Speaker 1: worse in Washington. You don't think it can get worse,
Speaker 1: and then you turn on the news and see people
Speaker 1: overrunning the capitol, uh, fighting being killed. Um, so you know,
Speaker 1: until Trump is out of office on January twenty, which
Speaker 1: I do think will happen eventually. UM. You know, we
Speaker 1: really don't have the kind of distances perspective that we
Speaker 1: need you to answer that question. How significant is it that, um,
Speaker 1: social media companies have intervened, at least some of them slightly,
Speaker 1: you know, in all serves. And I think that is
Speaker 1: a really big deal. And I think it's commendable what
Speaker 1: Twitter did freezing Donald Trump's account and Facebook essentially kicking
Speaker 1: him off the platform until he leaves office. That story
Speaker 1: told in pictures, So definitely check it out at Bloomberg
Speaker 1: dot com or on the Bloomberg terminal. That was Bloomberg
Speaker 1: Business Week National correspondent Josh Green and Bloomberg Business Week
Speaker 1: editor Joel Weber coming up more on this week's top story.
Speaker 1: It's our cover story. We're going to check in with
Speaker 1: Chris Leu, former Deputy Secretary of Labor under the Obama administration,
Speaker 1: executive director Barack Obama's two thousand eight transition team. He's
Speaker 1: also part of Joe Biden's transition team. You're listening to
Speaker 1: Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg. Quick to Tim Stinovin
Speaker 1: from Bloomberg Radio. So he's a voice that we've reached
Speaker 1: out too often to talk about the inner workings of
Speaker 1: an administration, what really goes on inside the White House. Tim,
Speaker 1: we're talking about Chris Live. Yeah, that's right, Carol. Chris's
Speaker 1: former Deputy Secretary of Labor under the Obama administration. He's
Speaker 1: also a senior fellow at the University of Virginia Miller Center.
Speaker 1: Chris was also executive director of Barack Obama's two thousand
Speaker 1: eight transition team, and he's a member of the Biden
Speaker 1: transition team. This is why we love to talk to him.
Speaker 1: We of course had to get his thoughts on this
Speaker 1: week's tests of democracy. Oh, it's somebody who's spent a
Speaker 1: dozen years on Capitol Hill. In both the Senate in
Speaker 1: the House. I mean, it was shocking, but that's even
Speaker 1: sort of an understatement. In the U. S. Capitol is
Speaker 1: one of the most secure facilities in the country. You know,
Speaker 1: it's it's protecting our highest selected leaders. It's what deliberations
Speaker 1: happen in the House and Senate. I mean, and to
Speaker 1: see those people storming in as easily as they apparently did,
Speaker 1: causing the kind of havoc to seeing the proceedings, Um,
Speaker 1: it's you know, we keep saying this is not who
Speaker 1: we are as Americans, but it clearly is. And I
Speaker 1: think it's going to require a lot of soul searching
Speaker 1: about how we got to this point, How does the
Speaker 1: country move on from this? Where do we go from here?
Speaker 1: You know, I think, um, the President elect, Joe Biden
Speaker 1: sent sent the right message. You know, he's continually talked
Speaker 1: about healing, you know, really going back to the beginning
Speaker 1: of his campaign, that this was a battle for the
Speaker 1: soul of our nation. I think he is going to
Speaker 1: try to obviously take the temperature down on the rhetoric. Uh,
Speaker 1: notwithstanding the fact that he's going to control both the
Speaker 1: House and Senate, He's gonna he has indicated he's going
Speaker 1: to continue to work for bipartisan solutions. Um. But I
Speaker 1: think we need to recognize that there is a very
Speaker 1: strong anti government under it's not just anti government, anti
Speaker 1: all institutions undercurrent in our country right now, and that
Speaker 1: just continues to fester. And that's been a long term
Speaker 1: probably them in this country. You know, we just talked
Speaker 1: Chris about the cover of Bloomberg business Week magazine this week,
Speaker 1: and this wasn't there a plan, but they had to
Speaker 1: do a quick change because there was no doubt about
Speaker 1: it what the cover had to be. And in big
Speaker 1: letters it says new Low and underneath it it says
Speaker 1: the trashing of American democracy and it shows the capital. Uh,
Speaker 1: and the protesters just climbing the walls and all the
Speaker 1: way up. You said something though that really resonated. You said, clearly,
Speaker 1: this is who we are as Americans, these protesters. You know,
Speaker 1: it does feel like half the country is this way.
Speaker 1: You know, a lot of people thought there was fraud
Speaker 1: in the election. Uh. There's division even within each of
Speaker 1: the parties in terms of some of the younger members,
Speaker 1: the older members, you know, the Republicans the same thing.
Speaker 1: And I do wonder how do we kind of bring
Speaker 1: it all together, so we go back to a time
Speaker 1: where people did cross across the aisle or reach across
Speaker 1: the aisle and actually get things done that benefited more Americans,
Speaker 1: most Americans. You know, look, I watched the remarks both
Speaker 1: before and after the violence. I was struck by Senator
Speaker 1: McConnell's comments, where I think he really appropriately talked about
Speaker 1: that there was no election fraud. This was not a
Speaker 1: particularly close election. You know, it is now the time
Speaker 1: to move on. And while I can applaud Senator McConnell
Speaker 1: and and other Republicans who gave statements, one wonders why
Speaker 1: those statements were not made two months ago. We've known
Speaker 1: for two months who this election results are, and I
Speaker 1: think we do need to be careful. I mean, look,
Speaker 1: I'm not I'm not being partisan, but this is not
Speaker 1: a both sides are wrong. I mean, we have a president,
Speaker 1: sitting president who even before election day, has said if
Speaker 1: he does not win, it will be because of fraud,
Speaker 1: and has continued to perpetuate this idea. And so it's
Speaker 1: not surprising that there is a significant percentage of people
Speaker 1: in this country that believe there's fraud notwithstanding the fact
Speaker 1: that the Department of Homeland Security, uh Mr Trump's own
Speaker 1: former attorney general have all said there's no fraud. This
Speaker 1: has now been litigated in over sixty court cases around
Speaker 1: the country. So you know, look, I mean, it's it's
Speaker 1: it's there's an underlying distrust and government that is being
Speaker 1: um exploited by you know, elected officials. You've got a
Speaker 1: bifurcated not even bifurcated, You've got a diverse media atmosphere
Speaker 1: where people can watch whatever news they want. There's there's
Speaker 1: a lot going on here. I think Joe Biden can
Speaker 1: be part of the solution, but he won't be the
Speaker 1: entire solution. Do you think part of the solution is
Speaker 1: invoking the twenty five Amendment for the president's remaining days
Speaker 1: or impeaching the president, as lawmakers have suggested. I guess
Speaker 1: I'd say this. Uh. I do think there needs to
Speaker 1: be a strong message sent that this is not acceptable conduct. Um.
Speaker 1: But we are only left with thirteen days left. That
Speaker 1: that being said, I mean, you know, we have seen,
Speaker 1: just over the course of twenty four hours what one
Speaker 1: person's words can do. And I go back to you
Speaker 1: know what Joe Biden said in his remarks, he said,
Speaker 1: you know, the president's words matter. At their best, they
Speaker 1: can inspire and at the worst they can incite. And
Speaker 1: that what happened. And so I think we should all
Speaker 1: brace ourselves, um, because I don't you know, I think
Speaker 1: as fewer and fewer guard rails exist around this president,
Speaker 1: he remains a very unpredictable and potentially dangerous person right now. So, Chris,
Speaker 1: I do want to ask you about kind of the
Speaker 1: role of all of us in being responsible citizens, responsible
Speaker 1: members of the media. I know we try to be
Speaker 1: very careful here, we are careful at Bloomberg, but I
Speaker 1: do wonder there was so much coverage of everything and
Speaker 1: anything that Donald Trump did and his team did, and
Speaker 1: I think we also kind of struggled with it sometimes
Speaker 1: whether it was really news, uh, and whether or not
Speaker 1: you know, who are responsibility and kind of fueling some
Speaker 1: of the fury. Yeah, you know, And I think this
Speaker 1: is a legitimate concern that people really need to examine.
Speaker 1: And it goes back to the presidential campaign, when you
Speaker 1: had network that would ron Trump's rallies, you know, from
Speaker 1: start to finish, giving him a disproportionate amount of airtime.
Speaker 1: But also at the same time airing a lot of
Speaker 1: you know, the falsehoods that we have all gotten used
Speaker 1: to now, and the theories always well, you know it's news.
Speaker 1: Well just because it's news or might be newsworthy, doesn't
Speaker 1: mean it needs to be put out there. And how
Speaker 1: do you properly refute the false allegations? Um in that,
Speaker 1: and how do you do that in real time? And
Speaker 1: then it continues all the way to you know, whether
Speaker 1: it's you know, his press conference he did early in
Speaker 1: his administration or the COVID daily briefings that he did
Speaker 1: through last the spring and summer where he was just
Speaker 1: dispensing harmful misinformation. And then obviously what we've seen with
Speaker 1: you know, Facebook and Twitter both suspending him. Um, you
Speaker 1: know what what what is what is the role of
Speaker 1: social media as well? So uh, you know, we've never
Speaker 1: had a president who has pushed the limits on disinformation
Speaker 1: as much. And you know, the theory had always been,
Speaker 1: you know, what the president says matters that needs to
Speaker 1: be covered, maybe that shouldn't be the rule going forward.
Speaker 1: That was former Deputy Secretary of Labor and senior fellow
Speaker 1: at the University of Virginia Miller Center Chris Leu, a
Speaker 1: member of President Elected Joe Biden's transition team. Still ahead
Speaker 1: with our focus on politics this week. So easy at
Speaker 1: times to forget that we are yes in the midst
Speaker 1: of a raging health pandemic. We will get this under
Speaker 1: control in a way that lets our lives go on,
Speaker 1: but it won't be easy. We've got to be vigilant.
Speaker 1: We've got to replace complacency with vigilant. Access Health International
Speaker 1: President Dr William Hazeltine on a health epidemic out of control.
Speaker 1: Still to come on Bloomberg Business Week. This is Bloomberg.
Speaker 1: This is Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes Tim Stinovich from Bloomberg Radio. This week, the
Speaker 1: US reported a record number of daily deaths from COVID nineteen,
Speaker 1: while confirmed cases globally climbed by an all time high.
Speaker 1: One trusted and informed voice for US on the coronavirus
Speaker 1: tim It's Access Health International Chairman and President, Dr William Hazeltine. Yeah.
Speaker 1: Dr Hazeltine has founded more than a dozen biotech companies,
Speaker 1: including Human Genome Sciences. He's also a founder of Harvard Medicals,
Speaker 1: Cancer and HIV AIDS research departments, and I gotta say
Speaker 1: some startling words from him. We started off to him
Speaker 1: talking about how he's making sense of the latest round
Speaker 1: of COVID headlines. With respect of the headlines, they're very
Speaker 1: upsetting because we see an epidemic out of control in
Speaker 1: many countries, and when they try to control, at the
Speaker 1: moment they release it, the infections popping back up. Unless
Speaker 1: you were able to control this infection early on, like
Speaker 1: China and a few other countries, did, you're really in
Speaker 1: the soup for a long time, And thank goodness, we
Speaker 1: have vaccines. Have you gotten On the other hand, yeah,
Speaker 1: have I gotten the vaccine? Not yet? No, I'm not
Speaker 1: not eligible yet. But we're all waiting for the vaccines.
Speaker 1: I can tell you. That's the first story. The second story,
Speaker 1: of course, his virus very all of those who who
Speaker 1: worked with HIV this is like our old ghosts coming
Speaker 1: back to haunt us. And it's just a very serious
Speaker 1: situation because the virus obviously is changing in response to
Speaker 1: immune pressure. Whether or not it's getting around the vaccines,
Speaker 1: I think it's only a matter of time. It may
Speaker 1: already have done so. And the optimism that people have
Speaker 1: that it's not gotten around the vaccines already is I
Speaker 1: think misplaced. Let me tell you the reason I think
Speaker 1: that There was a patient in Great Britain who had
Speaker 1: a prolonged infection because the patient was immune suppressed. Twenty
Speaker 1: three samples of virus were taken during the patient's treatment.
Speaker 1: The treatment with convalescent SARAH. That's people who successfully fought
Speaker 1: off the virus. That patient got three successive rounds and
Speaker 1: over time, because they were sampling frequently, you could see
Speaker 1: variations arise and the virus became resistant to convalescents Sierra.
Speaker 1: If it becomes resistance the convalescents SIRA, that means it
Speaker 1: can get around our natural immunity. And we can get
Speaker 1: around our natural immunity. Is very likely it can get
Speaker 1: around our artificial immunity that we create with vaccine. What
Speaker 1: what are you talking about? This would this would be
Speaker 1: the case with MR and A vaccines and other ways
Speaker 1: that vaccines have and are being developed. Any vaccine I'm
Speaker 1: talking about any vaccine well, and the strains that the
Speaker 1: variants are they usually stronger, tougher to deal with, or
Speaker 1: not necessarily then the idea that they're weaker is wrong.
Speaker 1: They are not necessarily weaker. In some cases that they're
Speaker 1: more potent I be more transmissible, uh and grow higher tighters,
Speaker 1: higher concentrations and people who are effecting. So there's very
Speaker 1: worrying observations out there today. It felt pretty ominous here
Speaker 1: and what you had to say about variants and kind
Speaker 1: of where we go from here when it comes to COVID.
Speaker 1: So it made me feel like we never get out
Speaker 1: of it. Help me set the record straight. Is that
Speaker 1: fair or is it just a case that it's going
Speaker 1: to take longer. How do you see it? I see
Speaker 1: this as a constant battle against this virus, likely fight
Speaker 1: against US virus. I don't think it's going to paralyze
Speaker 1: our economies and keep us in the house as it
Speaker 1: does now. I think we'll have effective measures, will have
Speaker 1: much faster diagnostics to know who's infected. We'll have a
Speaker 1: whole series of drugs that we can take that can
Speaker 1: help us get over this and save us if we
Speaker 1: do get infected. And we'll have vaccines that will probably
Speaker 1: have to renew whether it's every year, every two years,
Speaker 1: every three years, we're gonna have to be renewing our
Speaker 1: vaccines to keep up with the virus changing. But we
Speaker 1: will get this under control in a way that lets
Speaker 1: our lives go on. But it won't be easy. We've
Speaker 1: got to be vigilant. We've got to replace complacency with vigilance.
Speaker 1: What is the best historical precedence for this? If if
Speaker 1: we think about modern modern public health, when have we
Speaker 1: gotten through something like this? Well, we've gotten through it
Speaker 1: in the nineteen eighteen flu, the nineteen fifty seven fifty
Speaker 1: eight flu, and we've gotten through it for the HIV pandemic.
Speaker 1: I think most people forget that that virus has killed
Speaker 1: upwards of thirty five million people uh in the world,
Speaker 1: and that is uh much more than this is killed.
Speaker 1: And yet we've got another control. So modern science is
Speaker 1: capable of doing this. People have to cooperate, which they're
Speaker 1: not doing particularly well, especially with the last Christmas. But
Speaker 1: this these are this is infectious diseases we can control,
Speaker 1: but we cannot let down our vigilance. We can't assume
Speaker 1: that a vaccine is going to be the panacea. We've
Speaker 1: got to combine that with good public health measures and
Speaker 1: continued intensive research such as going on right now. That's right,
Speaker 1: we cannot get complacent. That was Access Health International Chairman
Speaker 1: and President Dr William hazel To, founder of Human Genome Scientists.
Speaker 1: His autobiography, by the way, came out this year. It's
Speaker 1: entitled My Lifelong Fight against Disease From Poleon Aids to
Speaker 1: COVID nineteen. You're listening to Bloomberg Business Week coming up.
Speaker 1: Technology has been crucial in our fight against the virus.
Speaker 1: It certainly has, and in keeping us going during the pandemic.
Speaker 1: Upnecks the tech trends that will dominate this year. We'll
Speaker 1: get that from the chief information officer at B and
Speaker 1: Y Mellon's Pershing. This is Bloomberg. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Stinovich
Speaker 1: from Bloomberg Radio. Well, whether it was the shift to
Speaker 1: remote work, the move to cloud computing software, the rise
Speaker 1: of video gaming, or the surgeon e commerce sales one
Speaker 1: of the big winners of Yeah, it was technology. Yeah,
Speaker 1: I'm using my phone more. I'm watching more TV than
Speaker 1: I think than ever before. I don't know whether or
Speaker 1: not that's a good thing. Carol. As we think about
Speaker 1: tech trends in the year ahead, you spoke with BNY
Speaker 1: Melon Pershing's chief information officer, rom Nagapan and like so
Speaker 1: many of our guests, he started off by talking about
Speaker 1: working from home. We're all working remotely and we're doing
Speaker 1: pretty good from how we are working, even though we're
Speaker 1: not really seeing face to face, but we are all operational. UM.
Speaker 1: On the technology point of view, I want to say
Speaker 1: technology as take in the center stage. Um. You know,
Speaker 1: it's it's moving from enabling the business to actually driving
Speaker 1: the business. What do you mean by that? What do
Speaker 1: you mean by that? Meaning before people used to use
Speaker 1: technology to enable the business. Now technology is the driving factor.
Speaker 1: For example, without technology, you even cannot do certain things.
Speaker 1: Since March, I would say, meaning, when we build technology,
Speaker 1: we always talk they built the technology for mobile first.
Speaker 1: You know, now we're all talking about building for remote
Speaker 1: first because people just went through a big lesson that
Speaker 1: they need to operate everything remotely and they need that capability.
Speaker 1: So technology is the one that is helping and actually
Speaker 1: driving to do those things. Well be and y Melon
Speaker 1: pershing you guys big financial company, and I do wonder.
Speaker 1: You know, there's a big debate about the working from
Speaker 1: home trend and we have yet to see how long
Speaker 1: it sticks, how much it sticks. But I've had conversations
Speaker 1: with folks in the financial community who said, you know,
Speaker 1: we got rid of our offices in New York. We've
Speaker 1: got limited offices now outside of New York City, we
Speaker 1: can work from home and be just as productive. How
Speaker 1: do you see it, especially whether it's for B and Y,
Speaker 1: Melon and Pershing, or whether it's above and beyond the
Speaker 1: greater financial community working from home? Does it stick longer
Speaker 1: than we may all realize? At this point? Um, I
Speaker 1: would say at a very high level, every firm is
Speaker 1: now capable of working remote. They're trying to perfect it.
Speaker 1: They're trying to figure out the next way of how
Speaker 1: things people are going to work, because the way that
Speaker 1: we used to work is certainly going to change. I
Speaker 1: think it's the matter of all the technology that has
Speaker 1: needed to make the remote work more productive. Yeah, we
Speaker 1: do have video conferencing, we do have all the remote
Speaker 1: work capability, but I think the tools needs to be
Speaker 1: a lot more better to make it even more work
Speaker 1: extremely efficient and productive. So there's certainly going to be
Speaker 1: a lot of innovation going to happen in the collaboration
Speaker 1: technologies because what we have is working, but not really
Speaker 1: the perfect tools. Well, when you say we need more innovation,
Speaker 1: give me one example, where do we need to be innovative,
Speaker 1: Where can we be better? Where do you expect we
Speaker 1: will be better? And I think when you're having a
Speaker 1: video call, you need to share things, you need to
Speaker 1: collaborate ideas, you need to show and present in a
Speaker 1: much more integrated way. That's one thing. The other thing,
Speaker 1: you know, I would also say, is um, you know
Speaker 1: multiple video system doesn't talk to each other, Like different
Speaker 1: companies have different video systems and they don't need they're great.
Speaker 1: You mean if you have one, I need to use that.
Speaker 1: I cannot just two different things cannot talk to each other.
Speaker 1: Think about you have one phone. I have one phone.
Speaker 1: We call each other, we can talk, but not on
Speaker 1: a video system at this point. So those kind of
Speaker 1: things are going to change. Collaboration, more of operating anywhere
Speaker 1: is going to happen in the collaboration pieces. Look at
Speaker 1: the health care area where the tealent medicine is also
Speaker 1: kind of a collaborative patient care. But they need more
Speaker 1: more tools, more precision, more look and feel, touch and
Speaker 1: field type of thing which is not available right now.
Speaker 1: So you're going to see more of those innovations going
Speaker 1: to happen in this area. You know you're going to
Speaker 1: see those tools in. So rom let me a little
Speaker 1: bit of a word association game with you here. UM,
Speaker 1: when you say AI, where does AI artificial intelligence go
Speaker 1: in the new year? And beyond artificial intelligence that's gonna
Speaker 1: be I'm very excited about AI and its application and
Speaker 1: where it's going to go. I wanted to say it's
Speaker 1: going to go into the edge computing and many applications.
Speaker 1: And I say edge computing, let me explain artificial intelligence
Speaker 1: moving from an institution or in a contained space into
Speaker 1: your home speakers and into your coffee machine, into your
Speaker 1: pumps that you have, water pumps in your basement, things
Speaker 1: like that. So what happens is they're able to move
Speaker 1: that to an edge devices and make the experience a
Speaker 1: lot better. That's something very excited. More no things are
Speaker 1: going to come um in the AI space, So AI
Speaker 1: is still untapped in my view. More applications are going
Speaker 1: to happen in banking and financial services, wealth, as well
Speaker 1: as the data rate things that we use. So to
Speaker 1: tell you, edge computing AI on the edge devices is
Speaker 1: something very exciting and many people are working to get
Speaker 1: that applied. What about machine learning and big data? Where
Speaker 1: where do we go with that? I feel like big data, man,
Speaker 1: We've been talking about it for a few years, and
Speaker 1: I think we need to get smarter in terms of
Speaker 1: filtering through and really making it useful. But how do
Speaker 1: you see it? Yeah, So a machine language is a
Speaker 1: machine learning is a part of an AI branch um.
Speaker 1: You use a lot of data to learn from it
Speaker 1: and to figure out many things like predictions and trends
Speaker 1: and advanced analytics. So people are going to use that data,
Speaker 1: apply machine language, machine learning and kind of come up
Speaker 1: with greater analytics, trying to tell you who's buying the product,
Speaker 1: who could buy it next, what you wanted to talk,
Speaker 1: you know, understanding the client behavior and be on top
Speaker 1: of the client experience, these type of things to make
Speaker 1: the experience better. The companies are going to go work
Speaker 1: with the data and these technologies. Where do you you know?
Speaker 1: It's interesting because we've talked a lot about the medical world.
Speaker 1: I feel like there's been a couple of worlds medicine, healthcare,
Speaker 1: and even education that really got kind of a kick
Speaker 1: in the pants this past year in terms of digitization
Speaker 1: and kind of coming forward. Although there's a long way
Speaker 1: to go, especially when it comes to I kind of
Speaker 1: feel like both of those worlds, but in particular healthcare.
Speaker 1: How do you see technology and as a result of
Speaker 1: the pandemic in this past year really impacting the world
Speaker 1: of healthcare. You're going to see a lot of acceleration
Speaker 1: and innovation in the healthcare area, especially healthcare wearables, tellent medicine,
Speaker 1: patient engagement, digital therapeutics, as well as remote diagnosis. You're
Speaker 1: going to see all of it, as even as as
Speaker 1: robotic assistant surgery from remote because as people who are
Speaker 1: pushed to stay UM in their own places work from remote.
Speaker 1: Everything needs to operate remotely, and you're going to see
Speaker 1: a lot in the medical area as well. So the
Speaker 1: medical is one of the biggest things, not only you
Speaker 1: know coming up with no drugs and vaccine and other things,
Speaker 1: but especially digital thereopytics and digital diagnosis. We're going to
Speaker 1: see it. Many healthcare systems and healthcare devices are going
Speaker 1: to interact to make the next generation of the medicine possible. Well,
Speaker 1: you know, it's it's interesting to UM. You know Amazon, Berkshire,
Speaker 1: JP Morgan their health venture that they just started a
Speaker 1: couple of years ago. Three years ago, I think they
Speaker 1: launched UM everybody was excited that we all thought, Okay,
Speaker 1: these three companies and the individuals behind these three companies,
Speaker 1: Warren Buffett, Jeff Bezos, and of course Jamie Diamond. You know,
Speaker 1: if anybody is going to be able to figure out healthcare,
Speaker 1: they can do it. And yet they've shut down that venture.
Speaker 1: And I do wonder, you know, how do you see
Speaker 1: it in terms of as you say, technology is going
Speaker 1: to continue to kind of evade the healthcare space. But
Speaker 1: I mean, how do we do it? You know, can
Speaker 1: we take what we learn from vaccine development for COVID?
Speaker 1: Is there a way to kind of extrapolate that out
Speaker 1: and figure out how do we get a better, more coordinate,
Speaker 1: did more productive healthcare tracking system or healthcare system overall? See,
Speaker 1: what's what's going to happen if there are different technologies,
Speaker 1: a range of technologies that are coming, and it's about
Speaker 1: applying these technology to the right problems space. Is the
Speaker 1: key You mentioned vaccine technology that is one type that
Speaker 1: they apply to create vaccines, but whereas remote diagnostic, digital
Speaker 1: therapeutics or different technologies are needed, but they will apply
Speaker 1: in their problem space to come up with a solution.
Speaker 1: So this whole thing is there's an array of technology.
Speaker 1: Whether you apply in healthcare, or whether you apply in banking,
Speaker 1: or you can apply in in wealth management, you can
Speaker 1: apply it to solve the specific problem using these technologies.
Speaker 1: And that's what v as technologies are very excited to
Speaker 1: actually solve problems in various vertical areas. Vertical meaning healthcare,
Speaker 1: or it could be education, it could be banking. You
Speaker 1: have um coin, which is on the currency side. You
Speaker 1: all you also have security token tokenized security, so they're
Speaker 1: pretty much looking at it in a different way, and
Speaker 1: there's there's a lot of regulations on it and how
Speaker 1: you really wanted to UM take you to the client,
Speaker 1: and what type you wanted to take. There's a lot
Speaker 1: of discussions and things still going on UM. While I
Speaker 1: know there's a big thing on bitcoin and its price UM,
Speaker 1: but I would say security, tokenization, tokenized securities, cryptocurrency. These
Speaker 1: are various things. You're going to see people look at
Speaker 1: it in a different lengths. And while on that topic,
Speaker 1: TIMS something we've talked about already so much this year.
Speaker 1: The total market value of cryptocurrencies check it out, surpassing
Speaker 1: one trillion dollars for the first time this week, amid
Speaker 1: a frenzied and volatile rally in bitcoin, which also hit
Speaker 1: another record. Yeah, I mean I thought it was a
Speaker 1: big deal when bitcoin hit eighteen thousand dollars or twenty
Speaker 1: thousand dollars. I know, it just keeps going up. That
Speaker 1: was bn Y Melon's Pershing's chief information officer, rom Nagapon.
Speaker 1: You can hear that full conversation in our podcast feed.
Speaker 1: And that wraps up the first hour of the weekend
Speaker 1: edition of Bloomberg Business Week from Bloomberg Radio. I'm Carol
Speaker 1: Masser and I'm Tim Stanovic. More ahead in our next hour,
Speaker 1: including why the pandemic shoved us into the future in
Speaker 1: a big way and speaking of the future, autonomous driving,
Speaker 1: cognitive TVs, what to expect from tech in the new year.
Speaker 1: Sony Electronics North America President on the Consumer Electronics Show.
Speaker 1: I know that's a fame of yours. Yeah, I mean,
Speaker 1: let's just say I'm not so disappointed not to be
Speaker 1: in Las Vegas this January, and maybe, just maybe leisure
Speaker 1: traveling will be possible in fingers crossed for that to happen,
Speaker 1: I could use a little vacation. We'll look at top
Speaker 1: destinations and speaking of places to go, the latest on
Speaker 1: the migration. Sound This is Bloomberg. This is Bloomberg Business
Speaker 1: Week with Carol Masser and Bloomberg Quick Takes. Tim Stenovic
Speaker 1: from Bloomberg Radio. Hi, I'm Carol Masser and I'm Tim
Speaker 1: Stanovick of Bloomberg Quicktake. Plenty ahead in our second hour
Speaker 1: of the weekend edition of Bloomberg Business Week, including a
Speaker 1: sneak peak at the Consumer Electronics Show. We'll do that
Speaker 1: with Sony Electronics North America President plus and knock on Wood. Caroll,
Speaker 1: we may get to travel this year for fun, and
Speaker 1: if so, we've got a list of the places you
Speaker 1: gotta go. And speaking of travel, Tim, I mean fingers
Speaker 1: crossed that will get their financial firms. Well, they're already traveling.
Speaker 1: They are trekking to South Florida. And the president of
Speaker 1: one Southeby's International Realty on the rise and demand for
Speaker 1: real estate. There we begin this hour, though it's a
Speaker 1: must read how the pandemic shoved us into the future.
Speaker 1: Bloomberg New Economy Editorial Director Andy Brown join me with
Speaker 1: more on this and how this respiratory disease has forced
Speaker 1: a profound reckoning. We should note that this interview was
Speaker 1: done before the DC protest this week. Great to be
Speaker 1: back to have you back. Yeah, it really does seem
Speaker 1: notwithstanding what we've just been hearing on the news about
Speaker 1: this more brilliant UK strain of the virus and the
Speaker 1: fact that it's landed in New York State, I think
Speaker 1: we are sort of looking forward now to a new world.
Speaker 1: They were in a much more hopeful place than we
Speaker 1: were just a few months ago. And it just seems
Speaker 1: to me that, you know, looking back historically at how
Speaker 1: disease has transformed the world, um that you know, there's
Speaker 1: no reason to believe that it won't be equally transformative
Speaker 1: this time. Um. You know, the two great transitions that
Speaker 1: I talked about in the column was the transition in
Speaker 1: the first millennium during the Roman Empire when uh, the
Speaker 1: Plague of Polonius as it was called, killed so many slaves.
Speaker 1: It um it ushered in a new era of feudalism,
Speaker 1: I mean normally free stuff replaced slaves. And then centuries
Speaker 1: later you had the Black Death, which killed so many slaves.
Speaker 1: It increased the cost of labor that broke up the
Speaker 1: estates of the feudal land owners and ended or as
Speaker 1: the beginning of the end of the feudal system, you know,
Speaker 1: and you look at where we are now and all
Speaker 1: of the great learnings and great breakthroughs that we've seen
Speaker 1: just in this past year, starting with the vaccine itself,
Speaker 1: right that you know, everybody says, well, this vaccine was
Speaker 1: developed in a rush right in there, and there's a
Speaker 1: reason that some people give for not wanting the vaccine.
Speaker 1: Actually this is this has been a decade or more
Speaker 1: in the making, and it's paralleled advances in genome sequencing
Speaker 1: and other fundamental foundational technologies which are now starting to
Speaker 1: find their breakthrough application. And I don't think it's being
Speaker 1: Pollyanna to think that we might see similar breakthroughs in
Speaker 1: other diseases, and not just in biotech, not just in
Speaker 1: pharmaceutical but in areas like climate technical like environmental technologies.
Speaker 1: And you know, the the kind of the the the
Speaker 1: optimistic conclusion that you know at all of the changes
Speaker 1: that we've seen in the last year is that we
Speaker 1: may actually be on the verge of a new age
Speaker 1: of discovery. Yeah, I think about it. And we just
Speaker 1: talked about down a Hall who covers Tesla, and Elon
Speaker 1: Muskin said, you know, she said, in just her world
Speaker 1: and she's out on the West coast, but she said,
Speaker 1: especially anybody who was in California, we saw climate change,
Speaker 1: she said firsthand, and there's just a new urgency when
Speaker 1: it comes to thinking about the cars you're going to buy,
Speaker 1: the products you're going to buy, and the impact it
Speaker 1: has on the environment. I agree that there's something globally
Speaker 1: that has definitely changed. What about when it comes to
Speaker 1: we've been showing for our YouTube viewers, you know, the
Speaker 1: relationship between Joe Biden and President g I think we're
Speaker 1: all anticipating it, but China has really stepped forward in
Speaker 1: a big way. Yes, and um, I think we've seen
Speaker 1: that pretty dramatically in that agreement last week between China
Speaker 1: and the European Union, at this new Essment agreement. This
Speaker 1: is a big win for Hi Jim Ping. This is
Speaker 1: a big snub for Joe Biden. He wanted to come
Speaker 1: in and he kept and he's talking about this grand
Speaker 1: coalition of democracies to stand up to China. Forget it.
Speaker 1: It's not going to happen. You know, China has emerged
Speaker 1: from this pandemic as the world's most resilient, most adaptable economy.
Speaker 1: Made huge mistakes hijim ping is not trusted around the world.
Speaker 1: China's soft power has has has has really been uh
Speaker 1: exposed um for the past for the past years, bullying,
Speaker 1: wolf warrior diplomacy and so on and so forth. Yet um,
Speaker 1: you know it is it is emerged as the only
Speaker 1: major growing economy for for for for year after year,
Speaker 1: as far as the eye can see, China is going
Speaker 1: to be supplying at least, at the very least a
Speaker 1: third of global growth. No country, no company is is
Speaker 1: going to pass that up, you know. And so you
Speaker 1: have the EU all these democracies that looked past all
Speaker 1: manner of human rights abuses that have that have taken
Speaker 1: occurred in China over the past year, not least the
Speaker 1: incarceration of a million or more weeks and still decided
Speaker 1: that they are going to uh do an investment deal
Speaker 1: and snub Joe Biden. Yeah, I thought, I'm so glad
Speaker 1: you brought that up when it we talked about it
Speaker 1: on air last week, Andy, and I thought that was
Speaker 1: just so significant. Um, I know it had it was
Speaker 1: an agreement, investment agreement that they were working on for
Speaker 1: a long time. But to see the EU in China
Speaker 1: ultimately tie it up just you know, in the nick
Speaker 1: of time as we wrapped up the year. I just
Speaker 1: thought that was incredibly telling. Um just got about thirty
Speaker 1: seconds the inequities. Do we come out better eventually as
Speaker 1: a result. Do you think like we've seen in history
Speaker 1: and past, Well, I think what this pandemic has shown
Speaker 1: is that, as the economist Adam Too says, poverty is
Speaker 1: a choice, we're spending trillions and trillions of dollars replacing
Speaker 1: in bailing out that. Nobody is worried about inflation. Nobody's
Speaker 1: worried about crowding out private investment. The markets certainly aren't
Speaker 1: worried about this. We can afford it. If we can
Speaker 1: afford to keep working payment going now, why can't we
Speaker 1: do it in the future. Just some of the issues
Speaker 1: that he and his team, and safe to say, the
Speaker 1: world at large will be considering this year. That's Bloomberg
Speaker 1: New Economy Editorial director Andy Brown. Yeah, so much on
Speaker 1: everyone's plate. You're listening to Bloomberg Business Week coming up.
Speaker 1: When you boil it down, it's immersive, it's really entertaining.
Speaker 1: It makes it connects sound and visual like your brain
Speaker 1: actually calculates it. Get ready for really, really smart TVs
Speaker 1: that actually, Tim might understand your brain. I don't know
Speaker 1: if I'm ready for that. I'm not. I know I'm not.
Speaker 1: We're gonna catch up with the president of Sony Electronics
Speaker 1: North America. This is Bloomberg. This is Bloomberg Business Week
Speaker 1: with Carol Messer and Bloomberg Quick Takes Tim Stinovy from
Speaker 1: Bloomberg Radio. That's was that time of year when some
Speaker 1: of the biggest tech businesses, thought leaders and policymakers convene
Speaker 1: to launch products, bill brands, and foreign partnerships. That's right, Carol,
Speaker 1: we're talking about the Consumer Electronics Show, or as it's
Speaker 1: known these days c e S. It's convening virtually this year.
Speaker 1: And you spoke with Sony Electronics North America president Mike
Speaker 1: Fasulo all about it. I did, But Tim, I gotta
Speaker 1: say I had to begin with getting his view on
Speaker 1: the turmoil in Washington this week. I think I felt,
Speaker 1: like many of us, you know, it was tragic, it
Speaker 1: was sickening, and you know we we and I condemn
Speaker 1: any lawlessness and violence. You know, I'm really feel sadly
Speaker 1: for those that were physically heard or mentally heard. I mean,
Speaker 1: I couldn't imagine being at the Capitol. But yeah, I mean,
Speaker 1: I condemn it. It's terrible, so and I do want
Speaker 1: it decracy, Yeah, absolutely, And I do wonder. You know,
Speaker 1: it's been a year if I you know, go back
Speaker 1: to excuse me, a year where I feel like there's
Speaker 1: a lot of problems that have been a part of
Speaker 1: our society and that they were just laid bare again
Speaker 1: because of the health pandemic, because of what happened with
Speaker 1: George Floyd and others, whether it's diversity and inclusion and equities,
Speaker 1: the gap and wealth in this country. And I do
Speaker 1: think ultimately, as a leader, don't you know what can
Speaker 1: we do? What's the role of the private sector? Do
Speaker 1: you think at all of this? Well, I think there's
Speaker 1: you know, looking at it from the silver lining side,
Speaker 1: which is really hard to do when this tragedy and
Speaker 1: love involved negatively, but but you know, it has brought
Speaker 1: appropriate attention that we're not doing enough right and and
Speaker 1: from the private sector side, from the from the sunny side,
Speaker 1: you know, CUSR whether it's around the environment, whether it's
Speaker 1: throughout social justice, whether it's um pandemic, COVID related and
Speaker 1: everything in between. That's a commitment to ours and and
Speaker 1: something we think very seriously as one of our responsibilities.
Speaker 1: And this past year we have been very very active
Speaker 1: on that front, obviously inside our company, but also out
Speaker 1: in the marketplace, you know, working with a number of
Speaker 1: institutions that you know, I've been more than happy to
Speaker 1: share with you should you on specifics, but you know,
Speaker 1: trying to affect real change. You know, I think the
Speaker 1: social justice and I love it. I love specifics, and
Speaker 1: I promise you we're gonna talk about cs UM, but
Speaker 1: I want to so in terms of really being a
Speaker 1: game changer, how do you how do we We've all
Speaker 1: talked about, like some of the inequities, uh, whether it's
Speaker 1: diversity and inclusion, you know, how do we really create
Speaker 1: real action and change? In your view? I think I
Speaker 1: think the private sector has a large responsibility for this.
Speaker 1: You know, Frankly, I don't think my generation did a
Speaker 1: great job. You know, I've been in the workforce for
Speaker 1: almost forty years, so I'm the old white guy. But
Speaker 1: the you know, we haven't we haven't done enough to
Speaker 1: affect real change. It goes well beyond my belief words
Speaker 1: and even donations. You know, how do we truly impact change?
Speaker 1: You I think about COVID nineteen and social justice and
Speaker 1: they're they're connected. It's not independent, right, So how do
Speaker 1: we get to those under privilege? How do we get
Speaker 1: to those that we narrowly don't get the chance where
Speaker 1: the privileges that both like I get and really put
Speaker 1: them in a position for success, build on their competence
Speaker 1: given the tools and invest in steam right and safe
Speaker 1: nut stand because arts equals creativity to us and innovation.
Speaker 1: But but there's tremendous we can do. I also think
Speaker 1: that the more we do together, not one single company,
Speaker 1: but groups of copanies and networks, etcetera. Before we do together,
Speaker 1: you know, the more impact will have an alignment. So
Speaker 1: as promised, Um, Mike, I do want to talk about
Speaker 1: Consumer Electronics Show, which kicks off virtually next week. What
Speaker 1: are you guys going to be highlighting and I'm curious
Speaker 1: what you think are some of the big trends that
Speaker 1: we all need to know about. Well, it's gonna be
Speaker 1: a different uh CES this year, that's for sure, being
Speaker 1: being virtual, but we're still very excited and you know
Speaker 1: it's alredy. Being an entertainment company, we always have a
Speaker 1: lot of news to share in my role in electronics. UM.
Speaker 1: Even there, there's so many announcements, so let me try
Speaker 1: to try to boil it down. You know, we're we
Speaker 1: are announcing new audio applications UM that we call phisis
Speaker 1: and reality audio which is very immersive and surround sounding,
Speaker 1: multiple applications, and will announce that next week, so I
Speaker 1: won't get too much into that. Robotics for all ages,
Speaker 1: whether it's you know, our robotic dog Guibo or Coove
Speaker 1: for theme and children. I think what I'm most excited
Speaker 1: about is our announcements around our new cognitive intelligent TVs,
Speaker 1: world's first cognit intelligent TVs. So can I just tell you.
Speaker 1: We were discussing this on our planning call and we're like,
Speaker 1: all right, cognitive TV, what exactly does it mean? It
Speaker 1: kind of freaks me out if it's going to know
Speaker 1: what's kind of going on in my head, So tell
Speaker 1: me exactly what it means. What's the experience for someone
Speaker 1: who's got a cognitive TV. I mean it really when
Speaker 1: when you boil it down, it's immersive, it's really entertaining.
Speaker 1: It makes it connects sound and visual like your brain
Speaker 1: actually calculates it, not just one aspect but puts it
Speaker 1: all together, including where you're focused on the on the TV.
Speaker 1: So it brings all of that together and brings everything
Speaker 1: to life and makes it lifelike. It's it's again, it's
Speaker 1: going to be a challenge with virtual because I always
Speaker 1: say seeing is believing, and in this case and hearing
Speaker 1: is believing. But it is the best quality the picture
Speaker 1: that I think is on the planet. So wait, so
Speaker 1: help me out. So is it just a case of
Speaker 1: an incredible processor? So exactly what we're seeing visually and
Speaker 1: or hearing is just like I've been pulling up some
Speaker 1: screens on on my computer. I mean, is it just
Speaker 1: what we see, what we hear is just kind of
Speaker 1: appt up from what we've got right now. Potentially it
Speaker 1: is definitely an incredible processor. Yeah, I think my engineers
Speaker 1: would be just an incredible thanks boss. But it is.
Speaker 1: It is an incredible processor. But it's different than AI
Speaker 1: artificial intelligence, and that it's simultaneously calculating multiple variables, including
Speaker 1: including sound. So you know it will not only in
Speaker 1: all content, so it will not only make us feel lifelike,
Speaker 1: but if you're watching a content, you'll feel like you're
Speaker 1: at the concert. You know, if you're looking at Internet.
Speaker 1: If you're listening to Bloomberg, your voice is gonna sound spectacular.
Speaker 1: That's all we care about. Remodel. So we call it zones.
Speaker 1: So the you know, the processors calculates zone by zone
Speaker 1: and then tries to think as if your brain thinks
Speaker 1: in your eyes. You know where your eyes will be
Speaker 1: at a point in time. It's not looking at you.
Speaker 1: There's no hammer watching you see. Yes, kicking off virtually
Speaker 1: next week. That's Sony Electronics North America President Mike Fasulo.
Speaker 1: So Tim coming up. Do you remember when traveling was
Speaker 1: a thing, whether it was for work or pleasure? We
Speaker 1: just did it. Yeah, I do. I would really like
Speaker 1: to go skiing right now, But you're not. I'm not
Speaker 1: all right. Well, maybe just maybe we can get on
Speaker 1: a plane again later on this year. We've got a
Speaker 1: thoughtful and pandemic influence list of top destinations. This is Bloomberg.
Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg
Speaker 1: Quick Takes Tims from Bloomberg Radio. Well, we don't know
Speaker 1: when it will be safe to resume international travel, any
Speaker 1: kind of travel for that matter. We do know that
Speaker 1: it will be fundamentally different TIM on the other side
Speaker 1: of COVID. Yeah, I mean, I imagine that I'll be
Speaker 1: wearing a mask on an airplane for a long time
Speaker 1: in the future. Airlines, airports, cruise lines, and hotels are
Speaker 1: still working to figure out new social distancing, cleaning and
Speaker 1: safety guidelines. And Carol, you caught up with Bloomberg Pursuits
Speaker 1: travel editor Nikki Eckstein to help us understand the future
Speaker 1: of travel in the COVID nineteen era and where we
Speaker 1: might want to go. Yeah, totally uh, And we began
Speaker 1: talking about how she actually put together a list of
Speaker 1: places to travel in a year where we know TIM
Speaker 1: lockdowns are still in place. This is such a challenge, Carol. I,
Speaker 1: for one, I'm still not traveling, even though it's so
Speaker 1: intrinsically part of my job. So to start wrapping my
Speaker 1: head around what's exciting for the year to come is
Speaker 1: such an abstraction, and it's difficult to think about what
Speaker 1: it implies in terms of safety and everything else that
Speaker 1: comes with it. So the first thing that we've really
Speaker 1: decided to do was to step back and think about
Speaker 1: what are the places that have really taken a deep
Speaker 1: breath and recovered because of the absence of travel. What
Speaker 1: are the places that actually really really need the presence
Speaker 1: of travelers to keep going? And how do we use
Speaker 1: our next vacation whenever it is to kind of point
Speaker 1: towards the ladder to say, how do we use our
Speaker 1: travel to make good in this world? To let more
Speaker 1: thoughtful and deliberate? Right, Yeah, I mean I think we
Speaker 1: all need a vacation, There's no question about that. And
Speaker 1: we really want to be more um, we want to
Speaker 1: be more thoughtful and more deliberate about the way that
Speaker 1: we we travel and the impact that we leave on
Speaker 1: the destinations that we visit. So this is really doing
Speaker 1: double duty. It's about doing something that's good for us
Speaker 1: and doing something that's good for the places that we're visiting. Listen,
Speaker 1: I feel like the last couple of years and this
Speaker 1: year has really or this past years really imprinted it
Speaker 1: on all of us, this whole idea of multiple stakeholders
Speaker 1: and whatever we do. So we have to think about
Speaker 1: whether you're a company, you think about workers, you think
Speaker 1: about your customers, you have to think about the environment,
Speaker 1: you have to think about things like diversity. There's so
Speaker 1: many things sustainability, and I do feel like it's it's
Speaker 1: into travel as well as you just kind of so
Speaker 1: eloquently laid out, so you cover a range from Alabama
Speaker 1: to the Arctic Bath, which is in northern Sweden in
Speaker 1: case people didn't know, I didn't know Latvia to laus
Speaker 1: and Nepal to Napa Valley. So take me wherever you
Speaker 1: want to go. Well, we do. We have trips on
Speaker 1: every continent this year because Antarctic is on the list.
Speaker 1: We really do have pull to pull um and and
Speaker 1: what's reasonable and feasible for you might be different than
Speaker 1: the next person based off of what makes you feel
Speaker 1: comfortable in the coming here, but yes, we are thinking
Speaker 1: about different themes in which you can engage on your travels.
Speaker 1: Supporting community, is rebuilding economy, is supporting the arts and culture. Um.
Speaker 1: For me, I know that we all need a little
Speaker 1: bit of hospitality and to be taken kiss. I am
Speaker 1: dying to go to the British Virgin Islands and support
Speaker 1: an economy that has been battered after years of terrible
Speaker 1: hurricanes and then COVID on top of it it And
Speaker 1: just at one of these beautiful resorts that have been
Speaker 1: rebuilt in the last few years. All of them were
Speaker 1: rebuilt in the last few years after Irma and Maria,
Speaker 1: and they're all just dying for us to come back
Speaker 1: because they've been offline for like four years. Unbelievable. Where
Speaker 1: that's where I want to go for what you mentioned,
Speaker 1: taken care of somewhere where I'm also helping to take
Speaker 1: care of others. Well you talk about it? Is it
Speaker 1: on Virgin Gorda Rosewood Little Dick's Bay introducing treehouse suites
Speaker 1: with outdoor showers wrap around beach views. I mean it
Speaker 1: sounds like heaven right now. Like the killer with that
Speaker 1: one is that I was supposed to be there at
Speaker 1: that exact resort may right, because this is what this is.
Speaker 1: This is well see and there you go, because this
Speaker 1: is why we like because you actually go to these places. Alabama.
Speaker 1: My our producer Paul Brandon, brought this up on our
Speaker 1: planning call this morning, and it's like, Alabama, tell us
Speaker 1: about Alabama. I think this is a really thoughtful one.
Speaker 1: So what's really interesting about in Alabama is that if
Speaker 1: you put aside everything that's going on in terms of
Speaker 1: the conversation about the social justice movement, Alabama itself is
Speaker 1: actually very interesting destination. It's rich in history. It's also
Speaker 1: a really ripe food destination. The restaurants in Alabama are popping,
Speaker 1: which people don't realize. But now that everybody has social
Speaker 1: justice on the brain, as they should, it's even more
Speaker 1: relevant in terms of continuing our education in terms of
Speaker 1: what race relations mean, both past and present in the US.
Speaker 1: And there's a lot of really interesting stuff to see
Speaker 1: and do there. Um there's the beautiful National Memorial for
Speaker 1: Peace and Justice. Um, there's the Freedom Rides Museum. All
Speaker 1: of these nights that really evocatively mark all of the
Speaker 1: building blocks of what we've experienced in the last year.
Speaker 1: And I think most New Yorkers will tell people from
Speaker 1: out of town to stay away right now. But as
Speaker 1: people start to get vaccinated and things become safe again,
Speaker 1: and this is happening now, you know, we can see
Speaker 1: this on the horizon. It's also a really unique time
Speaker 1: to come to it in the sense that you can
Speaker 1: have entire neighborhoods, entire museums more or less to yourself
Speaker 1: in a way that has never been possible. As soon
Speaker 1: as I get vaccinated, I guess signed me up. Carol Listen,
Speaker 1: I have to say I'm totally with you on that.
Speaker 1: I mean, I think about how many trips I did
Speaker 1: not go on in the past year. A lot of
Speaker 1: them work trips, but even for pleasure, just going to
Speaker 1: see family, you know, a couple of states away. Uh,
Speaker 1: we just didn't do it. It's been a complete lockdown.
Speaker 1: So I think we're all fingers crossed that maybe I
Speaker 1: don't know, middle part of the year, later this year
Speaker 1: we can think about traveling again. Well, I certainly hope.
Speaker 1: So that was Bloomberg Pursuits Travel editor Nikki Eckstein. You
Speaker 1: can read her full pursuit story and get the entire
Speaker 1: travel list on the Bloomberg and at Bloomberg dot com.
Speaker 1: It is an incredible list. All Right, you're listening to
Speaker 1: Bloomberg Business Week speaking of going places financial firms. Man,
Speaker 1: they are continuing to head south. We're on the trend
Speaker 1: with the president of one Sotheby's International Reality that's up next.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week with Carol
Speaker 1: Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. So, Tim,
Speaker 1: one of the things I'm obsessed with is watching real estate.
Speaker 1: I've been, you know, checking out all of the headlines
Speaker 1: that are constantly crossing the bloomberg and the impact that
Speaker 1: the pandemic has had on real estate generally. There's been
Speaker 1: a number of headlines this week, office vacancies in Manhattan
Speaker 1: jumping to a twenty one century record as the COVID
Speaker 1: nineteen pandemic froze new rental deals and sub lease opening
Speaker 1: sword a wave of firms, Carol setting up bases in Florida,
Speaker 1: Virtue Financial heading there, Goldman Sacks weighing plans to house
Speaker 1: a key division in South Florida, Carol. You spoke with
Speaker 1: one Sotheby's International Realty President, Daniel de la Vega from Miami,
Speaker 1: and tim he's been really busy. The pandemic certainly had
Speaker 1: an impact on his business. We're experiencing something that we've
Speaker 1: never experienced before, quite frankly, and we've always had been
Speaker 1: no personal income tax, We've always had a lower corporate
Speaker 1: tax rate, we've always had no state income tax. But
Speaker 1: because of the pandemic, because of these companies realizing that
Speaker 1: they don't have to be all the time in these offices,
Speaker 1: they're all relocating to South Florida, and it's been a
Speaker 1: boom like we've never experienced before. And I don't really
Speaker 1: see it slowing down, and it's incredible to be living
Speaker 1: here and seeing this happen. Well, what's interesting, though, is
Speaker 1: that I think it's fair to say that there are
Speaker 1: a lot of people who work at New York financial
Speaker 1: firms that like living in the New York metro area.
Speaker 1: They like New York City, they like the New York
Speaker 1: City suburbs. So I do wonder about, you know, in
Speaker 1: terms of the people who are moving down, Um, is
Speaker 1: it everyone? We heard from the Goldman Sack CEO earlier
Speaker 1: this year that he expects by the end of the
Speaker 1: year to see his workers back here in offices in
Speaker 1: New York City. So who is it, you know moving
Speaker 1: Is it smaller boutique firms? I mean you did mention
Speaker 1: I think it was did you say black Rock or
Speaker 1: Blackstone that's actually moving down Blackstone Blackstone? So so you're
Speaker 1: seeing right now divisions of some of these larger corporations.
Speaker 1: So Goldman is going to move their asset management apart,
Speaker 1: or at least there's rumors that they're going to move it.
Speaker 1: So I guess they're dipping their toe sort of here
Speaker 1: in the sand. No pun intended to see if they
Speaker 1: like it. To see if they can actually attract a
Speaker 1: good talent pool. But we we are seeing it happen
Speaker 1: more and more and and we really believe that it
Speaker 1: is going to continue. And yes, some of the smaller
Speaker 1: we're seeing this movement now of tech firms, and some
Speaker 1: of the tech firms are smaller firms, although some of
Speaker 1: the buyers of some of these residential property properties are
Speaker 1: large happenings, very very large tech executives like Keith Rabbos,
Speaker 1: who's with PayPal, Square LinkedIn, etcetera. He moved from San Francisco.
Speaker 1: So we're seeing a little bit of both, a little
Speaker 1: bit of both. Yeah, it's it's kind of interesting to see. UM.
Speaker 1: Having said that, there's great cities like Miami, there's great
Speaker 1: cities like Chicago, like l A, like San Francisco, like
Speaker 1: New York. Do you anticipate, as someone who follows um
Speaker 1: the real estate market, that we're going to see a
Speaker 1: demise of some of those big cities or not necessarily.
Speaker 1: Maybe there's a little it of a rework for a
Speaker 1: little bit, but ultimately when we get on the other
Speaker 1: side of this, what do you expect? You know, what
Speaker 1: we've predominantly seen as New York to try State area
Speaker 1: in New York. And again it's a little bit of both.
Speaker 1: When I say what I'm about to say, you've got
Speaker 1: a lot of large hedge funders, investment bankers that are
Speaker 1: moving down and saying this is temporary. This is a
Speaker 1: three or four year move for me, because I need
Speaker 1: to be in Manhattan. Private equity deals are done in Manhattan.
Speaker 1: Their tone out in the Hamptons in the summer, etcetera.
Speaker 1: So that's where I need to be. And unless these
Speaker 1: companies dip their toes in the sand, really like what
Speaker 1: they see and then move the entire organization, I think
Speaker 1: you will see a bit of that migration kind of
Speaker 1: heading back north as things start to um normalize a
Speaker 1: little bit. But look, for us, it's great that they're coming,
Speaker 1: that they're realizing what a great place it is here
Speaker 1: in South Florida and that they can actually work here
Speaker 1: and operate out of here. And I think that the
Speaker 1: way we're operating as businesses will continue to be a
Speaker 1: bit more virtual. I think that Zoom is going to
Speaker 1: be something of the future, and that is the way
Speaker 1: that transacts are going to take place, and everything's moving
Speaker 1: to atmore sack platform and it's just going to embrace
Speaker 1: everything that's happening. Who's buying properties on a global scale
Speaker 1: right now when it comes to South Florida and the
Speaker 1: proper and the and the markets that you play into,
Speaker 1: Oh my god, it's so many people. So it just
Speaker 1: went public today. We just broke it a deal for
Speaker 1: Randy Gerber and Cindy Crawford on North Bay Road on
Speaker 1: Miami Beach, which was pretty interesting for a home. I'm
Speaker 1: assuming residential here for a residential home, yeah yeah, yeah, uh.
Speaker 1: Same with Tom Brady and just Sell. They bought an
Speaker 1: Indian Creek, which is great. And we spoke a little
Speaker 1: bit earlier about Goldman Sachs. I mean, those are celebrities.
Speaker 1: We spoke a little bit earlier about Goldman Sachs and
Speaker 1: Douglas Sacks, the managing director there. He bought a home
Speaker 1: for twelve million dollars on Miami Beach. Um John Oranger,
Speaker 1: who's the founder of Shutterstock, he bought a home for
Speaker 1: forty two million dollars on Miami Beach. Sam Nasarian in
Speaker 1: the hospitality industry just closed on something in Gables the
Speaker 1: States and Coral Gables. So it's all industry celebrities, everybody.
Speaker 1: It just seems like, you know, South Florida is the
Speaker 1: spotlight of everything. And we've spoken about Miami, but it's
Speaker 1: really happening in Dave, Broward, Palm Beach, all of South Florida.
Speaker 1: I mean Miami Dade County year over years up over
Speaker 1: Broward forty two, the island of Palm Beach over fifties.
Speaker 1: So you're blended at over almost throughout South Florida. And
Speaker 1: this is on single family homes and condominiums. Um So
Speaker 1: the increases that we've been experiencing are crazy, and it's
Speaker 1: we've had almost like this reset Carol of pricing. I mean,
Speaker 1: you've got home that are up fifty in some of
Speaker 1: these luxury neighborhoods, and you're looking at these houses that
Speaker 1: are now trading for twenty that pre pandemic, you couldn't
Speaker 1: get ten million for them, and it's just become the
Speaker 1: new norm. And we've had this this now reset of
Speaker 1: pricing that that is what the numbers are. So it's just, yeah,
Speaker 1: there's some deals over a hundred million that are going
Speaker 1: to be done before this quarters over. You talking about
Speaker 1: residential or no, you're talking about commercial now residential residential, Yeah,
Speaker 1: I mean commercials on fire as well. We run a
Speaker 1: commercial firm that's called One Commercial. I mean, the demand
Speaker 1: for office right now is strong. In the Brickle Downtown corridor.
Speaker 1: You've got triple net numbers around forty five sixty four
Speaker 1: dollars a square seats forty five to sixty five dollars
Speaker 1: a square foot. That's the range um and there's over
Speaker 1: I would say a million square feet right now in
Speaker 1: demand for office space in these areas. So it's not
Speaker 1: only people buying these residential homes, but they're also looking
Speaker 1: to move their headquarters. Daniel, at least divisions within these
Speaker 1: Is it a trend that would have happened if we
Speaker 1: didn't have COVID or is there is this the COVID factor.
Speaker 1: I think it's the COVID factor. I really think it's
Speaker 1: the COVID factor. Like I said earlier, I mean, we've
Speaker 1: always had had, you know, a strong migration from the
Speaker 1: Northeast from Canada. We started to see a little bit
Speaker 1: of California in tech, the service Latin America, etcetera. But
Speaker 1: it really is the COVID factor. I mean, in March
Speaker 1: and April, we didn't know what was going to happen.
Speaker 1: And then come May, June, July, which are typically our
Speaker 1: slowest months, they were our strongest months. We were up
Speaker 1: over a hundred in July alone. So it happened, and
Speaker 1: it happened very quickly. Well, and when I you know,
Speaker 1: when I kicked this off and we started talking about
Speaker 1: who's buying, and you said, you know, a lot of
Speaker 1: people are buying. Um, it used to be a lot
Speaker 1: of I feel like foreign or non US investors and buyers.
Speaker 1: What are we seeing from Europe, What are we seeing
Speaker 1: from Latin America, What are we seeing from Asia? It's
Speaker 1: pretty dry. So we traditionally, especially in our new contominium division,
Speaker 1: we saw a lot of what we would call flight
Speaker 1: capital from Latin America, and that has just dried up
Speaker 1: because of everything that's happening in the respective economies down
Speaker 1: in Latin America. So we we have just seen the
Speaker 1: domestic buyer, I mean, and because of you know, the
Speaker 1: low interest rate environment, we've also seen a lot of refinancing.
Speaker 1: So that's of course helped sort of spur the market forward.
Speaker 1: But it's really been that the mess stick buyer from
Speaker 1: the northeast, from California that's been relocating here Boston, Washington, Chicago.
Speaker 1: We just did a deal. We're representing one thousand Museum,
Speaker 1: which is in downtown Miami Azaha, a deeed building. We
Speaker 1: just did it the over fifteen million dollars over fifteen
Speaker 1: hundred square foot or sixteen million, fifteen hundred of square
Speaker 1: foot to a buyer from Chicago. So it's just it's
Speaker 1: it's it's incredible, what's happening. So Okay, I'm gonna just
Speaker 1: kind of put a if you weren't in Florida and
Speaker 1: this wasn't the market you were playing in right now
Speaker 1: when it comes to and selling and and working within, um,
Speaker 1: if it wasn't South Florida or Florida, where would it
Speaker 1: be that you would want to be working in? Me
Speaker 1: in New York City? I think that there's see I
Speaker 1: I go to New York City often with my family
Speaker 1: for business, etcetera. We love it. And my wife and
Speaker 1: I this year we're talking about how sad it was.
Speaker 1: She does a girl's trip actually every Christmas to New
Speaker 1: York and they couldn't go. And then some of my
Speaker 1: buddies and I were talking on New Year's about when
Speaker 1: when when is the right time to go back to
Speaker 1: New York, and I hope it's very soon. But from
Speaker 1: a business perspective, I heard you said earlier and I
Speaker 1: agree with you. Prices, especially on the condominium front and
Speaker 1: the new developments have not gone down the way you've
Speaker 1: expected then two or the way we've expected them to
Speaker 1: help kind of firm and you are seeing some deals
Speaker 1: get done thirty forty million. But I do believe there
Speaker 1: will be opportunity. And I think that it's it's it's
Speaker 1: the it's the intelligent thing to do to be investing
Speaker 1: right now in Manhattan. That's one. Southby's International Realty President
Speaker 1: Daniel de la Vega, Carol, I gotta tell you, um,
Speaker 1: among the apps that I use most on my phone,
Speaker 1: it's got to be Twitter, and then second is Street
Speaker 1: Easy because I keep looking at real estate and I'm
Speaker 1: not seeing the prices around here go down that much.
Speaker 1: And that's what's really interesting. I saw a story this
Speaker 1: week that just talked about sellers are kind of holding off,
Speaker 1: They're not so willing to kind of cut prices to
Speaker 1: move properties. So I think you know what we're going
Speaker 1: to see in terms of real estate fall out, I
Speaker 1: don't know. I think time will tell longer term, we've
Speaker 1: heard about people leaving the big cities. I don't know
Speaker 1: if that's really going to happen. Yeah, I mean short
Speaker 1: term maybe, but in the long term. I'm bullish on
Speaker 1: New York I am too, always always. I've heard about
Speaker 1: the demise of New York City for a long time,
Speaker 1: and man, we just keep coming back stronger and stronger. Well,
Speaker 1: that wraps up the wee get edition of Bloomberg Business
Speaker 1: Week from Bloomberg Radio. Thanks so much for joining us.
Speaker 1: I'm Carol Masser and I'm Tim Stantovik. Be sure to
Speaker 1: tune into the daily show Monday through Friday starting at
Speaker 1: two pm Wall Street Time, and be sure to check
Speaker 1: out to our Bloomberg Business Week podcast wherever you get
Speaker 1: your podcast. Don't forget the show is also on YouTube,
Speaker 1: just search Bloomberg Global News, and be sure to check
Speaker 1: out our Bloomberg Business Week Extra podcast. This week, Dr
Speaker 1: Chris Buyer, Professor in Public Health and Human Rights at
Speaker 1: the Johns Hopkins Bloomberg School of Public Health, giving us
Speaker 1: the latest on the virus and vaccine Bloomberg School of
Speaker 1: Public Health, supported by Michael R. Bloomberg, founder of Bloomberg LP.
Speaker 1: On Bloomberg philanthropy, and you can also see me on
Speaker 1: Bloomberg Quicktake. It's available at Bloomberg dot com, slash qt
Speaker 1: and on streaming platforms like Roku, Apple TV, Samsung TV
Speaker 1: and more. And Bloomberg Business Week is available on newsstands now,
Speaker 1: at Bloomberg dot com and always on the Bloomberg tim
Speaker 1: We did it our first weekend show together, really our
Speaker 1: first official week together on our daily radio show. And
Speaker 1: what a week. It was. Just NonStop headlines, you know,
Speaker 1: in the big headlines of the week, of course, having
Speaker 1: to do with politics, having to do with the virus,
Speaker 1: the markets. Um, these are things that are not going away, Carol.
Speaker 1: These are things we're going to be focusing on for
Speaker 1: a big part of the year. Yes, absolutely top of
Speaker 1: our agenda and also top of the agenda for the
Speaker 1: new incoming by the administration. So plots to come. Have
Speaker 1: a safe weekend, everybody. This is Bloomberg