WEBVTT - Bloomberg Businessweek Weekend - September 24th, 2021 0:00:01.080 --> 0:00:05.440 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business, finance and tech news as it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes. Tim 0:00:16.800 --> 0:00:21.440 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.520 --> 0:00:24.720 edition of Bloomberg Business Week. Well Tim, rough week, certainly 0:00:24.760 --> 0:00:27.080 for markets, they got off to a rocky start on Monday. 0:00:27.160 --> 0:00:30.040 We saw the SMP having its biggest drop since May. 0:00:30.240 --> 0:00:33.000 Much of that initial volatility due to fears over the 0:00:33.000 --> 0:00:36.559 federal reserves plans for tapering asset purchases, as well as 0:00:36.600 --> 0:00:39.159 the Evergranddad crisis in China. We're gonna get to that 0:00:39.200 --> 0:00:41.440 in just a moment. That's a story we talked about 0:00:41.479 --> 0:00:44.800 throughout the week because the news kept coming in on it. 0:00:45.080 --> 0:00:48.199 Ahead of it. Though a close look at America's pandemic 0:00:48.280 --> 0:00:50.720 response and how we can prevent the next one because 0:00:50.720 --> 0:00:54.520 there is another one coming. That's according to FDA's former commissioner, Dr. 0:00:54.560 --> 0:00:56.840 Scott Gottlieb. He's got a new book out. We're going 0:00:56.880 --> 0:00:58.760 to talk to him all about that. Plus we're talking 0:00:58.840 --> 0:01:02.400 Cisco because the company lines it's sustainability commitments and the 0:01:02.440 --> 0:01:04.600 CEO of rocket Lab talks to us about a new 0:01:04.640 --> 0:01:07.640 era of space travel. Plus, it's our Sooner than You 0:01:07.680 --> 0:01:10.480 Think issue, and it explores breakthroughs on the horizon and 0:01:10.520 --> 0:01:14.520 everything from broadband to batteries, with our domestic cover story 0:01:14.640 --> 0:01:17.760 detailing the importance of cobalt to powering our future. It's 0:01:17.800 --> 0:01:19.880 all the cool stuff that's happening. It is a lot 0:01:19.880 --> 0:01:22.480 of cool stuff. Let's get those let's get those batteries 0:01:22.480 --> 0:01:24.440 here sooner than later. Yeah, exactly, but we need some 0:01:24.520 --> 0:01:26.600 key components to make it all happen. All of that 0:01:26.680 --> 0:01:29.600 to come. We begin though with our international cover story 0:01:29.959 --> 0:01:32.759 on what's been the world's largest property developer and how 0:01:32.760 --> 0:01:35.800 it's creating a financial stress test that no one wanted. 0:01:36.040 --> 0:01:38.240 A takeover from our finance team and the editor of 0:01:38.280 --> 0:01:41.200 the section, Pat Ragneer, who joins us now. Pat Ever 0:01:41.240 --> 0:01:43.680 grands massive liabilities. We saw that play out through the 0:01:43.680 --> 0:01:49.760 global markets. How come so evergrand owes massive three billion 0:01:49.840 --> 0:01:52.720 dollars in liabilities, which sort of the sheer scale of 0:01:52.800 --> 0:01:57.280 that has people nervous um and the sheer number of 0:01:57.360 --> 0:02:00.960 people and entities that evergrand Owes money too. So there's 0:02:00.960 --> 0:02:04.720 just this kind of like you know, large pile of 0:02:05.200 --> 0:02:07.640 bills that people are waiting to get paid, and if 0:02:07.680 --> 0:02:10.320 they don't get paid, if they get paid, it paid 0:02:10.360 --> 0:02:12.919 back slowly and in a disorderly way. There's just a 0:02:12.960 --> 0:02:15.480 fear of the kinds of effects you can have really 0:02:15.520 --> 0:02:19.680 through the Chinese economy. And of course we we saw 0:02:19.680 --> 0:02:22.200 it hit global markets earlier this week. But let's take 0:02:22.200 --> 0:02:24.560 a step back, pad and and and I think because 0:02:24.560 --> 0:02:28.359 a lot of people perhaps aren't familiar with whatever Grant 0:02:28.600 --> 0:02:31.560 is despite its size. Um, I feel like it wasn't 0:02:31.560 --> 0:02:34.560 a household word right this week until this week. I 0:02:34.919 --> 0:02:37.080 completely agree with that. So so what is this Because 0:02:37.080 --> 0:02:39.280 this is a company that is not only in property, 0:02:39.320 --> 0:02:42.160 but it's in media, theme park take us into it. 0:02:42.680 --> 0:02:44.959 So it's a property developer, you know. I kind of 0:02:45.040 --> 0:02:47.040 joked that, like, you know, this is what would happen 0:02:47.160 --> 0:02:50.880 if you had, um a you know, a financial company 0:02:50.880 --> 0:02:54.320 in trouble, but you also had a giant uh new 0:02:54.520 --> 0:02:57.600 estate company or a builder of homes in trouble plus 0:02:57.880 --> 0:03:01.760 plus the New York Yankees, plus to Disney. Right, so 0:03:02.240 --> 0:03:05.000 you know it's got all of these different businesses. Uh, 0:03:05.520 --> 0:03:11.560 perspective for you. Yeah, but the really key part of 0:03:11.600 --> 0:03:15.200 the business is that it's a property developer. It builds housing. 0:03:15.520 --> 0:03:18.440 And when you're talking about a home builder in China, 0:03:18.840 --> 0:03:21.920 you're talking about a company that has been riding the 0:03:21.919 --> 0:03:25.320 waves of probably one of the most important transformations in history. 0:03:25.440 --> 0:03:32.960 From uh, the the urban population of China has grown 0:03:32.960 --> 0:03:34.680 by and I had to double check this when I 0:03:34.720 --> 0:03:37.960 saw it, something like four d and a million people. Right, so, 0:03:38.080 --> 0:03:40.920 just in in a very short period of time of population, 0:03:41.000 --> 0:03:44.120 the size of the United States has gone from the 0:03:44.240 --> 0:03:49.200 countryside to living in cities, and they've needed housing, and 0:03:49.240 --> 0:03:52.560 there's been a whole apparatus of policy designed to encourage 0:03:52.560 --> 0:03:55.760 housing to get that housing built. And evergreend rode that 0:03:55.800 --> 0:04:00.600 wave and became heavily indebted in the process. And meanwhile, 0:04:00.760 --> 0:04:04.320 policymakers in China UM has begun to kind of ask 0:04:04.320 --> 0:04:09.000 themselves if real estate led growth is more risky than 0:04:09.040 --> 0:04:12.560 it's worth. And now that are trying to you know, 0:04:12.640 --> 0:04:15.000 they've they've set in place policies that have been meant 0:04:15.040 --> 0:04:17.359 to kind of who off this change. But you know 0:04:17.400 --> 0:04:20.400 that's kind of a hard target hit, right You're saying, oh, 0:04:20.680 --> 0:04:23.680 real estate is risky. We want everybody to take less 0:04:23.720 --> 0:04:25.839 ards who We're going to start to discourage all of 0:04:25.880 --> 0:04:30.160 this activity. But what can happen is what we're looking 0:04:30.200 --> 0:04:33.240 at now, which is this company is kind of cratering, 0:04:33.279 --> 0:04:37.360 and the question is will this be you know, controlled creating. 0:04:38.040 --> 0:04:40.720 So where do policymakers come in in terms of that 0:04:40.839 --> 0:04:44.039 controlled creating? Do we know at this point what policymakers 0:04:44.040 --> 0:04:46.719 are going to allow happen to to ever? Grant is it? 0:04:46.760 --> 0:04:50.839 Is it going to fail? And by policymakers we mean Beijing, Yeah, 0:04:51.080 --> 0:04:54.839 the communist right, I mean so, I you know, I 0:04:54.880 --> 0:04:56.480 think like one of the thing you have to remember 0:04:56.520 --> 0:04:58.840 is that the banking sector is stay controlled in China 0:04:58.920 --> 0:05:02.040 and that just gives them more levers then, uh than 0:05:02.080 --> 0:05:05.080 authorities in other countries have. I mean, they really have 0:05:05.320 --> 0:05:10.400 some power to uh, you know, order how how debts 0:05:10.440 --> 0:05:13.600 get disposed um. And plus I mean you know they 0:05:13.600 --> 0:05:16.760 have they have the power that every country that princes 0:05:16.800 --> 0:05:18.160 its own money, does you know. I mean, so they 0:05:18.160 --> 0:05:21.880 can create liquidity and and they can, but they can 0:05:21.920 --> 0:05:24.640 also interview very directly in the banking system, right whether 0:05:24.720 --> 0:05:27.360 or not like what you call a failure of ever 0:05:27.440 --> 0:05:30.320 grand sort of depends on a question of definition. I mean, 0:05:30.360 --> 0:05:32.680 you know, because if you have the state intervening to 0:05:32.800 --> 0:05:36.560 sort of quietly fold the company up, you know, like, 0:05:36.600 --> 0:05:39.039 on one hand, you may prevent kind of a systemic risk. 0:05:39.160 --> 0:05:40.800 On the other hand, you know, there may not be 0:05:40.839 --> 0:05:43.000 a company that's recognizable ever Grand at the end of 0:05:43.040 --> 0:05:46.680 that process. But you know, sort of more importantly, you know, 0:05:46.720 --> 0:05:49.120 I think it's just always a question of a very 0:05:49.120 --> 0:05:51.240 big thing is happening. They have a lot of power 0:05:51.360 --> 0:05:53.720 to try to control it, but you just don't know 0:05:53.760 --> 0:05:57.000 if they're going to be able to do it. This 0:05:57.040 --> 0:05:59.880 isn't just you know, debt in money markets. It's depth 0:06:00.040 --> 0:06:04.840 are owed to you know. Investor Pat a great UH 0:06:04.920 --> 0:06:08.120 cover story, a great take on Evergrand, which was really 0:06:08.160 --> 0:06:10.679 no doubt about it, UH, one of our big stories 0:06:10.760 --> 0:06:13.320 of the week. That's Business Week Finance editor Pat Ragnar 0:06:13.720 --> 0:06:16.680 and Pat talked about that broader impact of China and 0:06:16.720 --> 0:06:19.080 what it's doing in the impact on the global economy. 0:06:19.320 --> 0:06:22.200 For more on that and China's pushed for common prosperity 0:06:22.200 --> 0:06:24.560 and what it means for private business, be sure to 0:06:24.640 --> 0:06:27.799 check out to our Monday interview with Bloomberg New Economy 0:06:27.880 --> 0:06:30.440 editorial director Andy Brown. You can find that on our 0:06:30.440 --> 0:06:33.680 podcast feed at Bloomberg dot com. Yeah, a fascinating story. 0:06:33.800 --> 0:06:36.760 A story mainly takes place in China, but with serious 0:06:36.760 --> 0:06:39.640 global implications, as we saw a play out this week. 0:06:40.000 --> 0:06:43.760 Well coming up, a longtime Cisco executive, franct Suitis, maps 0:06:43.800 --> 0:06:47.200 out her company's ongoing sustainability goals. They've been working on 0:06:47.240 --> 0:06:49.840 this for years and they continue to ramp it up. 0:06:49.880 --> 0:06:52.880 You're listening to Bloomberg Business Week, and this is Bloomberg. 0:07:01.560 --> 0:07:05.520 This is Bloomberg Business Week with Carol Messer and Bloomberg 0:07:05.600 --> 0:07:11.040 Quick takes Tim Stinovik from Bloomberg Radio Cisco Systems to him. 0:07:11.080 --> 0:07:14.720 They set the company's first greenhouse emissions reduction goal, Wait 0:07:14.720 --> 0:07:16.400 back and do thousand six. They've been doing this for 0:07:16.400 --> 0:07:18.840 a long time. Since then, the tech giant has continued 0:07:18.880 --> 0:07:22.920 to grow its sustainability initiatives and impact year after year 0:07:23.000 --> 0:07:25.600 after year, and earlier this month, the company announced a 0:07:25.600 --> 0:07:29.600 new commitment to achieve net zero emissions by and more. 0:07:29.800 --> 0:07:33.360 Brand ken Suitis is a longtime Cisco executive whose executive 0:07:33.400 --> 0:07:36.480 vice president and Chief People, Policy and Purpose Officer. She 0:07:36.560 --> 0:07:39.960 stopped by this week to discuss this latest round of objectives. 0:07:40.160 --> 0:07:42.560 First of all, before we get into sustainability, I do 0:07:42.640 --> 0:07:46.320 want to ask you about the visibility you see when 0:07:46.320 --> 0:07:49.560 it comes to your business and the company and hiring. 0:07:49.600 --> 0:07:51.400 What does it look like right now? So we see 0:07:51.440 --> 0:07:54.720 a tremendous amount of opportunity. What's so fascinating is throughout 0:07:54.720 --> 0:07:58.040 the pandemic, we saw so many of our customers wanting 0:07:58.080 --> 0:07:59.960 to move a little bit more quickly. From a trans 0:08:00.040 --> 0:08:03.080 formation perspective, we saw that the issues I had been 0:08:03.080 --> 0:08:06.080 thinking about, they were ready to move. So what that 0:08:06.120 --> 0:08:08.720 means for us is we see a lot of investment 0:08:09.360 --> 0:08:13.040 in how they securely connect their thinking about having employees 0:08:13.080 --> 0:08:16.440 both on site but also working from home, and that's 0:08:16.440 --> 0:08:20.680 a different technology play. From a people perspective, this has 0:08:20.720 --> 0:08:23.400 been one of the most remarkable times. Right now. People 0:08:23.400 --> 0:08:26.600 are talking about this period as the Great Resignation, and 0:08:26.640 --> 0:08:28.640 what they mean by that is we see a tremendous 0:08:28.680 --> 0:08:31.600 amount of people movement as well. Yeah, really important question 0:08:31.640 --> 0:08:34.560 when we think about the way that people are changing jobs, 0:08:34.600 --> 0:08:37.079 the way that people are potentially leaving the workforce. I 0:08:37.120 --> 0:08:38.400 want to go back to something that you said about 0:08:38.400 --> 0:08:41.560 the transformation that you saw throughout the pandemic. Do you 0:08:41.559 --> 0:08:43.199 see this as a permanent shift, with a lot of 0:08:43.240 --> 0:08:46.640 your customers that their employees could be working from home forever. 0:08:46.880 --> 0:08:49.200 I think a lot of our customers are figuring that out. 0:08:49.440 --> 0:08:51.079 So I would say that there's a subset of our 0:08:51.120 --> 0:08:55.920 customers that absolutely have found greater productivity, they see better 0:08:55.960 --> 0:08:59.320 employee engagement, and they're going to continue to work hybrid. 0:08:59.679 --> 0:09:02.640 I don't see as many absolutes where people are either 0:09:02.679 --> 0:09:04.800 going to be all in the office or at home. 0:09:04.920 --> 0:09:07.360 I think they're figuring out the balance. And then there's 0:09:07.400 --> 0:09:09.319 a subset of our customers that want to go back, 0:09:09.880 --> 0:09:12.680 and that's something that we really questioned around can we 0:09:12.760 --> 0:09:14.920 go back? And the reason I put that forward is 0:09:14.960 --> 0:09:17.640 that employees around the globe are telling us that they 0:09:17.640 --> 0:09:19.640 want to work in a very different way. I mean, 0:09:19.679 --> 0:09:21.720 the horse has left the barn right when it comes 0:09:21.760 --> 0:09:23.800 to hybrid work. I think it's safe to say that 0:09:23.800 --> 0:09:27.079 there's probably been tons of focus groups pre pandemic. Can 0:09:27.120 --> 0:09:29.400 it work? And it not? Maybe we're not ready. I 0:09:29.440 --> 0:09:32.440 mean the pandemic, we had no choice and it worked. Yeah. 0:09:32.440 --> 0:09:35.200 That's why we refer to this last period as not 0:09:35.280 --> 0:09:40.000 only challenging from a human perspective, but an experiment around 0:09:40.120 --> 0:09:42.480 work where we've learned a lot, and I think for 0:09:42.640 --> 0:09:45.760 some companies this question that they had has now been 0:09:45.800 --> 0:09:48.520 answered and that they can work, they can innovate, they 0:09:48.559 --> 0:09:51.480 can collaborate, and in some cases they can be even 0:09:51.520 --> 0:09:54.040 better with this hybrid because they can get to talent 0:09:54.120 --> 0:09:56.439 that in the past they couldn't before. Well, how has 0:09:56.480 --> 0:09:59.200 the talent acquisition process been, how has talent retention been 0:09:59.240 --> 0:10:01.320 at Cisco? Syste time, you said that some people are 0:10:01.360 --> 0:10:03.400 referring to this as the great resignation. We hear about 0:10:03.400 --> 0:10:06.320 the labor struggle that employers are facing right now. Um, 0:10:06.520 --> 0:10:07.880 tell us what it's been like for you and FED 0:10:07.960 --> 0:10:10.720 Chief J. Powell talking about it's a really tight labor force. 0:10:11.120 --> 0:10:13.120 It is, so we experienced that as well. What was 0:10:13.200 --> 0:10:16.359 so fascinating was when when we first went into the pandemic, 0:10:17.880 --> 0:10:21.679 we paused for a few weeks just from a hiring perspective, 0:10:21.720 --> 0:10:24.199 and we were just kind of getting our legs under 0:10:24.280 --> 0:10:26.840 us and understanding what this was going to be. And 0:10:26.880 --> 0:10:29.520 then we had this realization that we were in this 0:10:29.640 --> 0:10:32.440 for quite some time, and we started the hiring process 0:10:32.440 --> 0:10:36.280 and what we found was leveraging video, leveraging the interview 0:10:36.280 --> 0:10:40.040 processes that we have. We hired like never before. And 0:10:40.080 --> 0:10:41.880 in fact, I would tell you that last year was 0:10:41.880 --> 0:10:44.160 probably one of the biggest hiring years that we've had 0:10:44.200 --> 0:10:48.240 as a company. Amazing, and so many employees have never 0:10:48.280 --> 0:10:51.160 met any of their colleagues face to face. It's a position. 0:10:51.200 --> 0:10:54.040 And then I started in October last year here, yeah, exactly, 0:10:54.200 --> 0:10:56.280 and there's people that he's now meeting. He's like, I've 0:10:56.280 --> 0:10:59.120 been talking to you, you know, via remote, and now 0:10:59.160 --> 0:11:01.800 I'm finally meeting you. It's it's a very different world. Yeah. 0:11:01.840 --> 0:11:04.160 I had a really funny experience last week where two 0:11:04.240 --> 0:11:06.760 colleagues were meeting. I happened to be there, and one 0:11:06.800 --> 0:11:10.040 of the colleagues that we're friends though, even though I'm 0:11:10.080 --> 0:11:12.079 meeting you for the first time. And so what I 0:11:12.080 --> 0:11:15.280 would say is for all companies, we do see that 0:11:15.320 --> 0:11:18.800 there is a reduced labor pool. We're working incredibly hard 0:11:18.840 --> 0:11:21.920 to differentiate ourselves, to talk about what we stand for, 0:11:22.280 --> 0:11:23.960 and to attract the talent that really wants to be 0:11:24.000 --> 0:11:26.040 with us as well. You were reminding us that's just 0:11:26.320 --> 0:11:28.840 get a pretty big presence here in New York specifically, 0:11:29.160 --> 0:11:31.160 we do. It's such an important market for us, so 0:11:31.160 --> 0:11:33.600 so many of our customers are based here. It's a 0:11:33.640 --> 0:11:36.680 great place for talent, a lot of the technology as well. 0:11:37.240 --> 0:11:40.479 We're actually in the process at the moment of remodeling 0:11:40.520 --> 0:11:42.640 our presence here in New York, and a big part 0:11:42.640 --> 0:11:45.120 of that is hybrid work and so we're thinking a 0:11:45.120 --> 0:11:47.319 lot about when you come into the office, how will 0:11:47.400 --> 0:11:49.319 you work? And so I think you'll see our presence 0:11:49.320 --> 0:11:51.120 in New York look very different from what it's been 0:11:51.160 --> 0:11:52.719 in the past. What do you mean by that? How 0:11:52.840 --> 0:11:54.960 how is it going to be different? So the biggest 0:11:54.960 --> 0:11:58.200 differences fewer people will come into the office to work 0:11:58.320 --> 0:12:01.160 on email or to be in video call. So when 0:12:01.160 --> 0:12:03.240 you come in now, you're coming in to be with 0:12:03.280 --> 0:12:06.440 your team. You're coming in to be with customers, and 0:12:06.520 --> 0:12:08.960 so the site has to be so much more team 0:12:09.000 --> 0:12:11.439 centric than ever before. And so you're going to see 0:12:11.480 --> 0:12:14.720 a lot fewer of the cubes and the individual offices 0:12:14.760 --> 0:12:16.440 and a lot of huddle space. How are you thinking 0:12:16.440 --> 0:12:18.199 about your presence in New York in the future in 0:12:18.280 --> 0:12:21.319 terms of headcount? Yeah, I would say it's uh, it's 0:12:21.320 --> 0:12:23.680 a really important growth area for us, and so we 0:12:23.760 --> 0:12:26.719 look at about five key areas across the US, New 0:12:26.800 --> 0:12:29.160 York is one of them, and so we will continue 0:12:29.200 --> 0:12:31.800 to to hire and really attract and recruit the best. 0:12:31.880 --> 0:12:34.040 You talked about it being a tight labor market. What's 0:12:34.080 --> 0:12:36.000 the New York labor market right now for the type 0:12:36.040 --> 0:12:38.199 of workers you're looking for. It just got about fifteen seconds. 0:12:38.600 --> 0:12:41.880 It's incredibly competitive, and uh so this is a place 0:12:41.880 --> 0:12:44.840 where the wonderful thing is you see the skills that 0:12:44.880 --> 0:12:47.520 we're looking for, but you see that the talent has 0:12:47.600 --> 0:12:49.680 a lot of different options. So talk to us about 0:12:49.760 --> 0:12:52.120 the new commitments. Earlier this month, you guys laid it 0:12:52.160 --> 0:12:55.720 out planning to achieve net zero emissions by twenty achieve 0:12:55.760 --> 0:13:01.000 carbon neutrality for Scope one and scope to um and 0:13:01.040 --> 0:13:04.760 that I believe is by so go into it because 0:13:04.760 --> 0:13:05.880 you guys have been doing this for a long time. 0:13:05.960 --> 0:13:07.880 What's the difference. What's the new new stuff that we 0:13:07.920 --> 0:13:09.679 need to know about. Yeah, so I would say we 0:13:09.679 --> 0:13:11.320 we have been doing this for a long time. And 0:13:11.360 --> 0:13:14.960 here's the most important part for companies to achieve these goals, 0:13:15.000 --> 0:13:17.480 which are really big and even bigger if you're a 0:13:17.600 --> 0:13:22.080 hardware and software company. Uh it takes every part of 0:13:22.080 --> 0:13:24.960 the organization to be focused here, and it has to 0:13:25.080 --> 0:13:27.440 feel like a key part of running your business and 0:13:27.520 --> 0:13:30.079 not something that sits on the side, because these goals 0:13:30.120 --> 0:13:32.080 are pretty significant, and so we've been doing this for 0:13:32.120 --> 0:13:34.960 a long time. The four big areas that we're focused 0:13:34.960 --> 0:13:36.800 on right now. The first is hybrid work. As we 0:13:36.840 --> 0:13:40.400 talked about, we believe that will be incredibly positive for us. 0:13:40.800 --> 0:13:42.760 The second thing that we're doing is really focus on 0:13:42.760 --> 0:13:46.640 the reduction of carbon emissions and uh, we're investing in 0:13:46.760 --> 0:13:50.120 technologies that I think will give us all optimism. Uh 0:13:50.160 --> 0:13:52.880 there's a company that we invested in called Rama. They 0:13:52.880 --> 0:13:56.040 actually won a prize with us, and they're doing carbon 0:13:56.200 --> 0:14:00.920 capture for large semi trucks and that is so important. 0:14:01.000 --> 0:14:03.480 The third area that we're focused on is all about 0:14:03.480 --> 0:14:07.200 renewables and so as an example in the US were 0:14:07.600 --> 0:14:11.040 renewable electricity several countries across Europe as well, and we'll 0:14:11.080 --> 0:14:13.880 just keep on pushing. And then I think another element, 0:14:13.920 --> 0:14:16.679 and this is the most exciting, is we're looking at 0:14:16.679 --> 0:14:19.080 the way in which we're developing our products which really 0:14:19.120 --> 0:14:22.800 power the Internet. And one of our new products, Silicon one, 0:14:22.840 --> 0:14:25.600 is a chip set and what it does is it 0:14:25.640 --> 0:14:29.080 reduces the amount of energy that our customers use by 0:14:29.120 --> 0:14:32.280 twenty six times. And in addition to that, it's much 0:14:32.320 --> 0:14:35.440 smaller than previous products, so it doesn't take as much packaging. 0:14:35.480 --> 0:14:38.280 And so when you have this type of breakthrough across 0:14:38.320 --> 0:14:41.000 your portfolio, it's going to be incredibly meaningful. That was 0:14:41.160 --> 0:14:44.440 Cisco's executive VP in Chief, People, Policy and Purpose Officer 0:14:44.560 --> 0:14:47.560 Frand cut suitists still ahead on Bloomberg Business Week, civilian 0:14:47.600 --> 0:14:50.040 space travel is now a reality. You know that, but 0:14:50.120 --> 0:14:52.520 our next guest says there is plenty of work left 0:14:52.560 --> 0:14:55.440 to do when it comes to the final frontier. The 0:14:55.480 --> 0:14:59.480 CEO of rocket Lab USA joins us. This is Bloomberg 0:15:03.360 --> 0:15:07.040 Broadcasting from the financial capital of the world, Bloomberg e 0:15:07.080 --> 0:15:09.760 Love in Frio in New York to Washington, d C. 0:15:09.960 --> 0:15:14.680 Bloomberg to Boston, Bloomberg one oh six one does San Francisco, 0:15:14.720 --> 0:15:18.160 Bloomberg nine sixty to the country Sirius XM Chado one 0:15:18.240 --> 0:15:21.400 nineteen and around the globe the Bloomberg Business app and 0:15:21.440 --> 0:15:26.920 Bloomberg Radio dot Com. This is Bloomberg Business Week. So 0:15:27.000 --> 0:15:28.640 there's been a lot going on when it comes to 0:15:28.680 --> 0:15:30.720 space tourism. I mean, Tim, you've been on the ground 0:15:30.760 --> 0:15:34.400 seeing it firsthand. Is like the year of private space travel. 0:15:34.480 --> 0:15:37.200 I mean, you have Bezos, you have SpaceX with the 0:15:37.240 --> 0:15:40.040 recent civilian mission. Then of course earlier this year you 0:15:40.040 --> 0:15:43.440 you also had Virgin Galactic exactly. It's definitely feeling like 0:15:43.640 --> 0:15:46.960 it's taken several steps forward. One company watching this year's 0:15:47.000 --> 0:15:50.120 spade of recent commercial space missions and the billionaires along 0:15:50.200 --> 0:15:53.360 for the ride is the launch provider and space systems company. 0:15:53.400 --> 0:15:56.360 It's called rocket Lab USA. Well, its founder, president and 0:15:56.400 --> 0:15:59.920 CEO Peter Beck, joined Carroll and Shannali Bassk to outline 0:16:00.040 --> 0:16:02.960 his company's plans for customer growth, as well as the 0:16:03.080 --> 0:16:05.960 risks and rewards of civilian space travel. Check it out. 0:16:06.480 --> 0:16:08.840 It's super exciting to see kind of this new era 0:16:09.040 --> 0:16:14.200 of space exploration, especially by civilians. But I think it's 0:16:14.200 --> 0:16:17.520 also important to remember, you know, it's still requires a 0:16:17.520 --> 0:16:20.960 bit eire to to go to go to orbit. Um, 0:16:21.040 --> 0:16:23.720 so I'm looking forward to the day where that those 0:16:23.760 --> 0:16:27.000 barriers are broken a little bit more and in space 0:16:27.000 --> 0:16:29.600 traveled by by humans is a little bit more frequent 0:16:29.760 --> 0:16:33.120 and achievable. Peter, maybe you're going to explain the significance 0:16:33.360 --> 0:16:37.600 as well of what this particular mission means with SpaceX 0:16:37.600 --> 0:16:41.680 and the people that they are traveling with Yeah. Look, 0:16:41.720 --> 0:16:45.320 I mean it's an incredible achievement by by friends over 0:16:45.360 --> 0:16:48.200 its space X and you know, you know, an all 0:16:48.280 --> 0:16:51.960 civilian crew is you know, is a wonderful next step. 0:16:52.680 --> 0:16:56.360 But you know, we're we're focused kind of on you know, 0:16:56.520 --> 0:17:00.920 the next the next step is actually providing resources and 0:17:01.080 --> 0:17:04.480 services from all that down down to Earth. So well, 0:17:04.880 --> 0:17:08.919 human space travelers is incredibly exciting and inspirational for us. 0:17:08.960 --> 0:17:11.560 All um, you know, we actually rely on space for 0:17:11.560 --> 0:17:14.480 a tremendous amount of their everyday life activities. Yeah. I 0:17:14.480 --> 0:17:16.600 feel like you're the practical side of it in terms 0:17:16.640 --> 0:17:18.920 of space, right, And there's no Business Week has done 0:17:18.960 --> 0:17:22.200 stories about there's a ton of tiny satellites that are 0:17:22.200 --> 0:17:24.879 already up there in air, up there into space. I 0:17:24.880 --> 0:17:27.399 guess I should say, tell us about the work that 0:17:27.440 --> 0:17:29.439 you do, who you're working with, and I am curious 0:17:29.440 --> 0:17:31.960 about how much of your contracts and work you do 0:17:32.080 --> 0:17:36.000 is military versus kind of commercial. Yeah. Absolutely, so. I 0:17:36.040 --> 0:17:38.720 mean we're an end Win space company. So you know, 0:17:38.760 --> 0:17:41.960 we operate a launch vie call called Electron. It's the 0:17:41.960 --> 0:17:44.879 the second most frequently launched rocket in the United States 0:17:45.160 --> 0:17:48.920 behind space X, and we deliver all kinds of customers. 0:17:49.320 --> 0:17:52.960 It's about fifty percent government fifty commercial. So we're flying 0:17:53.000 --> 0:17:58.360 missions obviously NASA for the Row through to We flew 0:17:58.359 --> 0:18:02.639 a small satellite for a series of high schools in Irvine, California, 0:18:03.040 --> 0:18:06.520 So just about every customer and you know you satellite, 0:18:06.520 --> 0:18:09.840 you could you could imagine really what's what's the future 0:18:09.840 --> 0:18:13.720 in terms of spaces role as it pertains to Earth, 0:18:13.960 --> 0:18:16.120 because I think there's still a lot of mysticism and 0:18:16.119 --> 0:18:19.000 and and a lot of questions out there about you know, 0:18:19.240 --> 0:18:23.200 what space ultimately means for Earth going forward. Human space 0:18:23.200 --> 0:18:26.280 flight is one important element, as we've mentioned, but I 0:18:26.280 --> 0:18:29.000 think little people realize how reliant they are in the 0:18:29.080 --> 0:18:32.359 everyday lives today on space infrastructure. I mean, if you 0:18:32.400 --> 0:18:35.080 call up a pizza and the pizza gets delivered to 0:18:35.080 --> 0:18:37.280 your house, well, actually, if it wasn't for GPS, your 0:18:37.320 --> 0:18:39.399 pizza might not get delivered to your house. It might 0:18:39.440 --> 0:18:42.800 be called the most basic things are enabled by a 0:18:42.840 --> 0:18:46.440 lot of space infrastructure, whether it be communications or weather 0:18:46.800 --> 0:18:49.639 and as we mentioned GPS, but it's kind of like 0:18:49.760 --> 0:18:53.200 that hidden infrastructure. You know, it's infrastructure that you can't 0:18:53.200 --> 0:18:55.960 go and physical and touch or even see. So it's 0:18:56.000 --> 0:19:00.159 just kind of magic. It's just always there and just 0:19:00.240 --> 0:19:02.520 using it in your everyday lives. And that's kind of 0:19:02.560 --> 0:19:05.239 the focus for us really is, you know, how can 0:19:05.280 --> 0:19:09.080 we build that infrastructure in orbit and use that to 0:19:09.240 --> 0:19:11.760 really provide services to all of us down here on Earth. 0:19:12.160 --> 0:19:14.800 I think with the space industry, you know, we've got 0:19:14.840 --> 0:19:17.840 some really great applications that everybody is familiar with, like 0:19:17.960 --> 0:19:21.919 communications and GPS, but you know, the access to space 0:19:21.920 --> 0:19:25.840 into orbits has really only been broken down relatively recently 0:19:25.880 --> 0:19:29.840 with SpaceX and rocket lad So we're really just at 0:19:29.840 --> 0:19:31.679 the beginning of what you can do in space and 0:19:31.720 --> 0:19:35.280 how that's going to improve and change everybody's lives down here. Well, 0:19:35.320 --> 0:19:37.720 where do you see the industry going in the next 0:19:37.760 --> 0:19:41.280 ten years then? Yeah. So my AURBUE is kind of 0:19:41.480 --> 0:19:44.720 um UH an intervien space company. So you know, we 0:19:44.760 --> 0:19:47.600 do launch, we also build spacecraft. You know, we have 0:19:48.280 --> 0:19:50.439 contracts with NASA to go to the Moon. We've got 0:19:50.480 --> 0:19:53.159 a couple of Mars missions um and of course a 0:19:53.240 --> 0:19:55.360 number of commercial missions on all butit and I think 0:19:55.440 --> 0:19:58.760 continuous time, the really large space companies are not going 0:19:58.760 --> 0:20:01.600 to be just launch company NES or just satellite companies. 0:20:02.000 --> 0:20:04.600 They're going to be into in companies where you are 0:20:04.600 --> 0:20:07.000 you own the launch showing the spacecraft, and you may 0:20:07.040 --> 0:20:09.360 even own the applications on all ward as well. Um, 0:20:09.359 --> 0:20:11.040 I think that that's what it's going to look like 0:20:11.119 --> 0:20:14.920 in the future. Hey, twenty seconds left? Is it Elon Musk? 0:20:15.040 --> 0:20:18.400 Is it Bezos? Is it Branson? That continue to dominate? 0:20:18.440 --> 0:20:20.560 In your view? Just quickly from your vantage point, just 0:20:20.640 --> 0:20:23.679 got about twenty seconds. Well, I mean, certainly Ellen is 0:20:23.680 --> 0:20:26.360 supposed to be written with, but don't don't count down 0:20:26.400 --> 0:20:29.160 the underdog rocket Lab detsil I say, all right, Well, 0:20:29.200 --> 0:20:31.199 investors certainly aren't because your stock has been on a 0:20:31.200 --> 0:20:34.000 tear up more than fifty so far this year. Great 0:20:34.040 --> 0:20:35.239 to check in with you, and I hope we can 0:20:35.240 --> 0:20:37.560