1 00:00:00,280 --> 00:00:02,560 Speaker 1: This is Bloomberg Wall Street Week. 2 00:00:02,680 --> 00:00:07,040 Speaker 2: The global push into infrastructure, breaking the IPO logjam in text. 3 00:00:07,160 --> 00:00:09,120 Speaker 1: The financial stories that sheep. 4 00:00:08,880 --> 00:00:12,040 Speaker 2: Are work cutting inflation without losing jobs. Do we need 5 00:00:12,119 --> 00:00:14,560 Speaker 2: rate cuts and if so, how many? Investing in a 6 00:00:14,560 --> 00:00:16,120 Speaker 2: time of geopolitical turmoil. 7 00:00:16,200 --> 00:00:18,560 Speaker 1: Through the eyes of the most influential voices. 8 00:00:18,720 --> 00:00:22,520 Speaker 2: Ten Rogueff economists at Harvard, former FDIC had Shila bet 9 00:00:22,640 --> 00:00:27,360 Speaker 2: Ge CEO, Larry Kulp, San Francisco FED President Mary Daily Bloomberg. 10 00:00:26,840 --> 00:00:30,200 Speaker 1: Wall Street Week with David Weston from Bloomberg Radio. 11 00:00:30,280 --> 00:00:33,960 Speaker 2: Tesla moves forward after all Goldman finally gets out of 12 00:00:33,960 --> 00:00:37,600 Speaker 2: retail and everyone's trying to figure out where inflation is headed. 13 00:00:37,960 --> 00:00:41,159 Speaker 2: This is Bloomberg Wall Street Week. I'm David Weston. This 14 00:00:41,280 --> 00:00:44,199 Speaker 2: week Wes Edens bright Line breaks ground on the nation's 15 00:00:44,280 --> 00:00:46,559 Speaker 2: first truly high speed train line. 16 00:00:46,840 --> 00:00:48,960 Speaker 3: This is now the beginning of the high speed rail 17 00:00:49,040 --> 00:00:50,000 Speaker 3: industry in the US. 18 00:00:50,520 --> 00:00:53,520 Speaker 2: Sir Clive Gillinson of Carnegie Hall on what it takes 19 00:00:53,560 --> 00:00:55,920 Speaker 2: to make one of the world's great concert halls not 20 00:00:55,960 --> 00:00:57,560 Speaker 2: only survive but thrive. 21 00:00:58,760 --> 00:01:01,680 Speaker 4: You always go for the vision, go for something that 22 00:01:01,760 --> 00:01:02,960 Speaker 4: is irresistible. 23 00:01:03,160 --> 00:01:06,200 Speaker 2: And Tony James of Jefferson River capital on making sure 24 00:01:06,360 --> 00:01:09,759 Speaker 2: New York's Metropolitan Museum of Art doesn't turn into your 25 00:01:09,840 --> 00:01:11,040 Speaker 2: grandmother's attic. 26 00:01:11,640 --> 00:01:13,959 Speaker 5: We're trying to be current. We don't want this to 27 00:01:14,000 --> 00:01:14,960 Speaker 5: be your grandmother's attic. 28 00:01:28,800 --> 00:01:31,720 Speaker 2: We start with the ever present question of inflation and 29 00:01:31,800 --> 00:01:34,800 Speaker 2: where it's headed with Peter Boris, chairman and CEO of 30 00:01:34,880 --> 00:01:37,360 Speaker 2: Computer Trading. So Peter, welcome back. Good to have here. 31 00:01:37,600 --> 00:01:40,280 Speaker 2: Every week we get new data on inflation points one 32 00:01:40,280 --> 00:01:43,240 Speaker 2: way or the other, but in a larger sense, you 33 00:01:43,480 --> 00:01:46,240 Speaker 2: often look at what you call the Seven Seas and commodities, 34 00:01:46,440 --> 00:01:48,480 Speaker 2: one of those telling you right now, first. 35 00:01:48,280 --> 00:01:52,000 Speaker 6: Of all, thanks for having me. The seven Seas are 36 00:01:52,120 --> 00:01:58,360 Speaker 6: relatively consistent, that inflation is going to be persistent for longer. 37 00:01:58,840 --> 00:02:04,920 Speaker 6: You're starting to see some of the seasonal commodities potentially breakout. 38 00:02:05,320 --> 00:02:10,079 Speaker 6: Cattle one see corn, the other sea that have been 39 00:02:10,400 --> 00:02:17,240 Speaker 6: relatively weak, the stronger seas coffee, cocoa, and crude. They've 40 00:02:17,240 --> 00:02:23,520 Speaker 6: been relatively stable after having fairly large moves. 41 00:02:23,720 --> 00:02:25,840 Speaker 2: And what's driving that right now? I mean, what are 42 00:02:25,840 --> 00:02:27,960 Speaker 2: the forces? Why do you look at the seven Seas? 43 00:02:29,000 --> 00:02:32,360 Speaker 6: I look at them as the ac which is the 44 00:02:32,440 --> 00:02:37,359 Speaker 6: consumer in terms of is the consumer going to have 45 00:02:37,440 --> 00:02:43,679 Speaker 6: to substitute their spending for more on staples where demand 46 00:02:44,360 --> 00:02:47,880 Speaker 6: is inelastic, and that then is going to lead to 47 00:02:48,040 --> 00:02:51,880 Speaker 6: less discretionary spending across the board. And so then I 48 00:02:51,960 --> 00:02:59,239 Speaker 6: look at bigger picture stocks like Visa, MasterCard, Costco, Target 49 00:02:59,560 --> 00:03:04,400 Speaker 6: to see if the consumer strength is still there. Those 50 00:03:04,440 --> 00:03:08,880 Speaker 6: stocks have demonstrated a little bit of weakness. So that 51 00:03:09,600 --> 00:03:14,840 Speaker 6: is the conundrum, the ninth c of the pressure on 52 00:03:14,919 --> 00:03:21,400 Speaker 6: commodities and potential weakness of these consumer stocks, which definitely 53 00:03:21,400 --> 00:03:22,600 Speaker 6: puts the FED in a box. 54 00:03:22,800 --> 00:03:24,640 Speaker 2: So if there's a breakout in some of the seas 55 00:03:24,720 --> 00:03:27,400 Speaker 2: and the commodities, that puts pressure on Visa and MasterCard 56 00:03:27,400 --> 00:03:29,880 Speaker 2: bigcause people don't have as much money to spend it Target, 57 00:03:30,040 --> 00:03:32,280 Speaker 2: for example, they have to spend it on food. 58 00:03:33,280 --> 00:03:33,480 Speaker 1: Yes. 59 00:03:34,040 --> 00:03:39,560 Speaker 6: Yes, And so those stocks in particular are a good 60 00:03:39,680 --> 00:03:43,680 Speaker 6: measure of consumer strength. And you see that in weekly 61 00:03:43,840 --> 00:03:46,840 Speaker 6: data that you can get from JP or Bank of 62 00:03:46,920 --> 00:03:49,560 Speaker 6: America compares to a week over week or year over 63 00:03:49,640 --> 00:03:51,880 Speaker 6: year as the strength of consumer spending. 64 00:03:52,400 --> 00:03:54,520 Speaker 2: Now, some stocks that have really felt a lot of 65 00:03:54,520 --> 00:03:57,880 Speaker 2: pressure just recently have been the big tech. What is 66 00:03:57,960 --> 00:03:58,960 Speaker 2: going on with them? Do you think? 67 00:04:00,400 --> 00:04:03,080 Speaker 6: Well, first of all, there's the trading aspect to it, 68 00:04:03,800 --> 00:04:06,480 Speaker 6: so you know, there's the old saying, right, what goes 69 00:04:06,600 --> 00:04:11,520 Speaker 6: up must come down. So you've basically had a really 70 00:04:11,560 --> 00:04:17,280 Speaker 6: big move, You've corrected. Technically, a number of these stocks 71 00:04:17,839 --> 00:04:22,719 Speaker 6: have broken key levels, and if they don't reject those 72 00:04:22,800 --> 00:04:26,800 Speaker 6: levels and start their uptrended again, that could mean that 73 00:04:27,080 --> 00:04:32,640 Speaker 6: the leading aspect of the technology relative to other stocks 74 00:04:33,240 --> 00:04:37,520 Speaker 6: is ending, which can hurt the large cap indices because 75 00:04:37,520 --> 00:04:38,520 Speaker 6: there's such big weights. 76 00:04:39,320 --> 00:04:41,320 Speaker 2: What does this all say the FED? I mean, I 77 00:04:41,440 --> 00:04:44,800 Speaker 2: could speculate that actually a little bit of tightening financial 78 00:04:44,839 --> 00:04:46,640 Speaker 2: conditions would not be a bad thing for the FED 79 00:04:46,760 --> 00:04:48,400 Speaker 2: right now because they've been going the other way. 80 00:04:50,000 --> 00:04:54,080 Speaker 6: I think the FED is sprinting in place, very very 81 00:04:54,320 --> 00:04:59,160 Speaker 6: challenging because you have this tug of war. But it's 82 00:04:59,240 --> 00:05:03,200 Speaker 6: hard to say that you should be easing when you've 83 00:05:03,560 --> 00:05:09,560 Speaker 6: just had record highs in bitcoin, record highs inequities, and 84 00:05:10,400 --> 00:05:16,000 Speaker 6: you've seen gasoline prices go up and potentially now these 85 00:05:16,080 --> 00:05:21,400 Speaker 6: other commodities breaking out. So they're stuck in my mind 86 00:05:22,000 --> 00:05:25,840 Speaker 6: of not doing anything probably the rest of the year. 87 00:05:27,520 --> 00:05:29,679 Speaker 2: Gold doesn't begin with the sea. Last time I recalled, 88 00:05:29,880 --> 00:05:32,119 Speaker 2: when you talk about record highs, we've had some record 89 00:05:32,200 --> 00:05:35,280 Speaker 2: highs in gold. Is that a useful indicator in your 90 00:05:35,400 --> 00:05:38,600 Speaker 2: experience over time where inflation might be heading, because often 91 00:05:38,680 --> 00:05:40,040 Speaker 2: you think that's where you go if you think you 92 00:05:40,080 --> 00:05:40,600 Speaker 2: got inflation. 93 00:05:41,400 --> 00:05:45,880 Speaker 6: So I am not one that particularly favors gold as 94 00:05:45,920 --> 00:05:49,360 Speaker 6: an indicator of what's going on with inflation. By the way, 95 00:05:49,400 --> 00:05:51,600 Speaker 6: the correlation between gold and the S and P has 96 00:05:51,680 --> 00:05:54,480 Speaker 6: been fairly high, so you would think, ooh, that's a 97 00:05:54,560 --> 00:05:59,680 Speaker 6: cross current. People tend to look backwards. So in the seventies, 98 00:05:59,720 --> 00:06:03,040 Speaker 6: when gold was really strong and inflation was high, there 99 00:06:03,160 --> 00:06:06,280 Speaker 6: weren't really a lot of other instruments to use to 100 00:06:06,480 --> 00:06:11,360 Speaker 6: hedge against inflation. But today there are many more instruments. 101 00:06:11,920 --> 00:06:16,480 Speaker 6: You can short bonds in the futures markets, you can 102 00:06:16,600 --> 00:06:21,480 Speaker 6: participate in individual commodity markets, or you can actually participate 103 00:06:21,839 --> 00:06:24,559 Speaker 6: through options or futures in the equity market. 104 00:06:24,680 --> 00:06:25,560 Speaker 2: So I don't think. 105 00:06:26,000 --> 00:06:31,920 Speaker 6: Gold is as much of inflation indicator as perhaps a 106 00:06:32,080 --> 00:06:37,400 Speaker 6: supply and demand question for uncertainty in the global geopolitical 107 00:06:37,720 --> 00:06:40,760 Speaker 6: And then non US central banks may have added to 108 00:06:41,400 --> 00:06:44,839 Speaker 6: gold demand recently. Of course, that too, in the last 109 00:06:45,160 --> 00:06:47,719 Speaker 6: week or so, has had a pretty significant correction. 110 00:06:48,200 --> 00:06:50,160 Speaker 2: Let me come back to your ninth see, I think 111 00:06:50,200 --> 00:06:53,599 Speaker 2: it is conundrum what you said, yes, okay. As an investor, 112 00:06:54,000 --> 00:06:56,320 Speaker 2: how do you invest into a conundrum? What do you do? 113 00:06:57,240 --> 00:07:02,000 Speaker 6: So it depends on your time frame. If you're younger 114 00:07:02,080 --> 00:07:04,240 Speaker 6: and you have a long time frame, then do you 115 00:07:04,360 --> 00:07:09,040 Speaker 6: sit back? And that's the nature of markets on average, right, 116 00:07:09,080 --> 00:07:13,160 Speaker 6: there's a double digital client in the SMP every year. 117 00:07:14,240 --> 00:07:16,920 Speaker 6: Of course, I'm always mindful of the six foot tall 118 00:07:17,000 --> 00:07:20,040 Speaker 6: man that drowns in water an average out of five feet. 119 00:07:20,120 --> 00:07:22,800 Speaker 6: So you have to be careful of averages because there 120 00:07:22,840 --> 00:07:26,280 Speaker 6: are bear markets. But in that case, you stay the course. 121 00:07:26,800 --> 00:07:29,800 Speaker 6: If you're more like me and you're a trader and 122 00:07:29,880 --> 00:07:33,040 Speaker 6: you've had a good run, I think the hardest thing 123 00:07:33,280 --> 00:07:38,600 Speaker 6: in portfolio management and discipline is selling a winner or 124 00:07:38,760 --> 00:07:42,880 Speaker 6: taking it down and rebalancing your portfolio. Is this a 125 00:07:43,000 --> 00:07:46,480 Speaker 6: time to rebalance your portfolio where you have this conundrum 126 00:07:46,920 --> 00:07:50,040 Speaker 6: combined with fed uncertainty, I think that makes a lot 127 00:07:50,080 --> 00:07:50,400 Speaker 6: of sense. 128 00:07:51,120 --> 00:07:53,040 Speaker 2: Peter is so helpful, Always good to have you on 129 00:07:53,200 --> 00:07:56,880 Speaker 2: Wall Street week and it's Peter Borsh of Computer Trading, 130 00:07:57,840 --> 00:08:00,560 Speaker 2: Treasury Secutary Yell and travel to China. The criticize the 131 00:08:00,600 --> 00:08:03,600 Speaker 2: government for subsidizing parts of its industry. But this week 132 00:08:03,640 --> 00:08:06,280 Speaker 2: the IMF leveled us similar criticism at the United States 133 00:08:06,520 --> 00:08:09,000 Speaker 2: and urge Europe not to follow suit, to take us 134 00:08:09,000 --> 00:08:11,720 Speaker 2: through where Europe stands in the apparent race to subsidize 135 00:08:11,840 --> 00:08:15,080 Speaker 2: were welcome now, Stephanie Flanders Bloomberg, Senior Executive editor for 136 00:08:15,200 --> 00:08:17,800 Speaker 2: Economics and Government. So Stephanie, welcome back. Great to have 137 00:08:17,880 --> 00:08:20,040 Speaker 2: you with us. So tell us about this wonderful world 138 00:08:20,080 --> 00:08:23,880 Speaker 2: of industrial policy. Sometimes we criticize it, and it looks 139 00:08:23,880 --> 00:08:25,480 Speaker 2: like right now in the United States is embracing it. 140 00:08:26,040 --> 00:08:28,440 Speaker 2: Where are we globally on industrial policy? 141 00:08:29,240 --> 00:08:30,920 Speaker 7: You know, this is one of those things where it's 142 00:08:30,960 --> 00:08:35,120 Speaker 7: a fast moving a bit of economics, certainly of economic 143 00:08:35,200 --> 00:08:37,640 Speaker 7: policy making. You know, for decades, certainly when I was 144 00:08:37,679 --> 00:08:41,959 Speaker 7: first learning about industrial policy and economic policy, it was 145 00:08:42,440 --> 00:08:45,520 Speaker 7: kind of a dirty word, certainly capital I capital p 146 00:08:45,760 --> 00:08:49,080 Speaker 7: industrial policy because it was the idea, maybe more popular 147 00:08:49,120 --> 00:08:52,720 Speaker 7: in the fifties and sixties, that governments could spot strategic 148 00:08:52,920 --> 00:08:56,000 Speaker 7: industries and invest in them. And the line I was 149 00:08:56,040 --> 00:08:58,240 Speaker 7: always given that they were good at picking losers, they 150 00:08:58,280 --> 00:09:00,520 Speaker 7: weren't good at picking winners, and that you could waste 151 00:09:00,520 --> 00:09:03,880 Speaker 7: a lot of money doing that as a government, and 152 00:09:03,960 --> 00:09:05,800 Speaker 7: if you were going to do it successfully, well, the 153 00:09:05,880 --> 00:09:08,319 Speaker 7: only places that had done that were maybe places like 154 00:09:08,440 --> 00:09:12,120 Speaker 7: Korea or Singapore where you had highly effective states and 155 00:09:12,320 --> 00:09:14,800 Speaker 7: you had you know, these were emerging market economies that 156 00:09:14,920 --> 00:09:16,800 Speaker 7: had a path to follow. They could see what other 157 00:09:16,880 --> 00:09:19,480 Speaker 7: countries had done, so they had less chance of getting 158 00:09:19,520 --> 00:09:22,480 Speaker 7: it wrong. And what's changed. I think, you know, like 159 00:09:22,559 --> 00:09:26,199 Speaker 7: so many things, has been upended by the different geopolitical outlook. 160 00:09:26,320 --> 00:09:29,760 Speaker 7: You know that what you think of as even you know, 161 00:09:29,880 --> 00:09:32,319 Speaker 7: what a winner would be in a context where you 162 00:09:32,440 --> 00:09:35,400 Speaker 7: could have in ten or twenty years time a decoupled 163 00:09:35,480 --> 00:09:37,520 Speaker 7: global economy really changes. 164 00:09:37,600 --> 00:09:37,719 Speaker 4: You know. 165 00:09:37,720 --> 00:09:39,400 Speaker 7: It could be you may have wasted a lot of money, 166 00:09:39,440 --> 00:09:41,839 Speaker 7: and an economist might have said that is a big 167 00:09:42,040 --> 00:09:45,839 Speaker 7: You've inefficiently used those resources, you're not making profits, You've 168 00:09:45,880 --> 00:09:49,439 Speaker 7: produced excess capacity of a good in the global market 169 00:09:49,559 --> 00:09:53,080 Speaker 7: from doing this industrial policy. But if in twenty years 170 00:09:53,160 --> 00:09:56,520 Speaker 7: time you find that you're the only place with say 171 00:09:56,720 --> 00:09:59,360 Speaker 7: a solar panel industry on one side of a big 172 00:09:59,400 --> 00:10:02,720 Speaker 7: economic in the global economy, well maybe all that quote 173 00:10:02,800 --> 00:10:06,840 Speaker 7: unquote wasted money will turn out to have been well spent. 174 00:10:07,040 --> 00:10:09,839 Speaker 7: So I think everyone's having to kind of rethink what 175 00:10:10,240 --> 00:10:14,160 Speaker 7: success and failure looks like in an industrial policy context. 176 00:10:14,200 --> 00:10:16,720 Speaker 7: But We certainly could be in for wasting a lot 177 00:10:16,800 --> 00:10:18,520 Speaker 7: of money with these subsidies. 178 00:10:18,200 --> 00:10:19,760 Speaker 2: Whether it's a good thing or a bad thing. How 179 00:10:19,840 --> 00:10:21,800 Speaker 2: much of this do you think is triggered by China? 180 00:10:22,120 --> 00:10:25,199 Speaker 2: Because China is now the second largest economy, some things 181 00:10:25,200 --> 00:10:28,199 Speaker 2: that maybe beindest way of first. It certainly embraced subsidizing 182 00:10:28,240 --> 00:10:31,240 Speaker 2: industry quite a bit. The Biden administration criticizes China greatea 183 00:10:31,280 --> 00:10:33,440 Speaker 2: for that, but it's an enormous amount of money. How 184 00:10:33,520 --> 00:10:34,959 Speaker 2: much of this is the rest of us being afraid 185 00:10:35,000 --> 00:10:36,160 Speaker 2: that they will overwhelmed us? 186 00:10:37,000 --> 00:10:39,320 Speaker 7: Well? And I think it's also it's not just the fear, right, 187 00:10:39,400 --> 00:10:42,320 Speaker 7: it's actually the reality in some key sectors. I mean, 188 00:10:42,360 --> 00:10:46,920 Speaker 7: the green technology is a classic example. We're now looking 189 00:10:47,040 --> 00:10:51,040 Speaker 7: at how much you know Chinese evs electric vehicles are 190 00:10:51,120 --> 00:10:53,839 Speaker 7: just sort of swamping the global market. A lot of 191 00:10:53,920 --> 00:10:57,600 Speaker 7: subsidies have certainly gone into that. The European Union announced 192 00:10:57,640 --> 00:11:02,000 Speaker 7: an investigation into ev They've already been burnt when it 193 00:11:02,080 --> 00:11:06,120 Speaker 7: comes to solar panels because they European Union had invested 194 00:11:06,120 --> 00:11:08,920 Speaker 7: a lot in developing, wanted to have a big domestic 195 00:11:09,000 --> 00:11:12,160 Speaker 7: solar panel industry, was just wiped out of the water 196 00:11:12,400 --> 00:11:16,120 Speaker 7: by China. There's the sheer scale of Chinese production. Now 197 00:11:16,280 --> 00:11:20,280 Speaker 7: ninety percent of solar panels in Europe are made in China, 198 00:11:20,400 --> 00:11:23,200 Speaker 7: and actually a very high proportion in the US as well. 199 00:11:23,400 --> 00:11:25,520 Speaker 7: So you know, China is driving this, but of course 200 00:11:25,559 --> 00:11:30,440 Speaker 7: if you're Europe, it's also the Biden administration's response to China, 201 00:11:30,800 --> 00:11:34,040 Speaker 7: things like the Inflation Reduction Act. You know, the Europeans 202 00:11:34,080 --> 00:11:36,800 Speaker 7: have felt like they had to have their own thing. 203 00:11:36,880 --> 00:11:40,559 Speaker 7: They announced the Net Zero Industry Act last year, was 204 00:11:40,679 --> 00:11:47,400 Speaker 7: very explicitly about building the European domestic green energy systems 205 00:11:47,480 --> 00:11:49,360 Speaker 7: and products so that they weren't going to end up 206 00:11:49,400 --> 00:11:50,400 Speaker 7: reliant on China. 207 00:11:51,080 --> 00:11:53,480 Speaker 2: And how much pressure is there in Europe? Do they 208 00:11:53,600 --> 00:11:57,240 Speaker 2: need to do some sort of large fiscal infusion to 209 00:11:57,360 --> 00:11:58,559 Speaker 2: really get competitive? 210 00:11:59,040 --> 00:12:02,320 Speaker 7: I mean, I suspect certainly. The International Monetary Fund would 211 00:12:02,360 --> 00:12:06,760 Speaker 7: say it is as much about developing the single market 212 00:12:07,000 --> 00:12:10,160 Speaker 7: and working as a cohesive block as it is about 213 00:12:10,240 --> 00:12:12,280 Speaker 7: spending lots of money. Yes, there's going to need to 214 00:12:12,320 --> 00:12:16,360 Speaker 7: be a lot of investment funds for green technologies, for 215 00:12:16,480 --> 00:12:20,959 Speaker 7: decarbonizing the economy, potentially for taking advantage of digital technologies 216 00:12:21,080 --> 00:12:23,400 Speaker 7: that Europe hasn't hasn't been able to do as well 217 00:12:23,440 --> 00:12:24,600 Speaker 7: as the US. 218 00:12:25,240 --> 00:12:27,240 Speaker 2: Stephanie has always so good to talk to you. Thank 219 00:12:27,280 --> 00:12:32,520 Speaker 2: you so much. That is Bloomberg's Stephanie Flanders. Coming up. 220 00:12:32,679 --> 00:12:35,040 Speaker 2: Is America finally going to get one of those high 221 00:12:35,120 --> 00:12:38,480 Speaker 2: speed trains we've envied in France and Japan. We talked 222 00:12:38,520 --> 00:12:41,360 Speaker 2: with Wes Edens about his bold new bright Line venture 223 00:12:41,440 --> 00:12:42,520 Speaker 2: that broke round this. 224 00:12:42,679 --> 00:12:45,360 Speaker 3: Week, so we think that the adoption rate for it 225 00:12:45,480 --> 00:12:46,400 Speaker 3: is going to be rapid. 226 00:12:48,000 --> 00:12:50,160 Speaker 2: That's next time, Wall Street Week on Bloomberg. 227 00:12:51,480 --> 00:12:55,640 Speaker 1: This is Bloomberg worll Street Week with David Weston from 228 00:12:55,800 --> 00:12:56,720 Speaker 1: Bloomberg Radio. 229 00:13:03,200 --> 00:13:05,280 Speaker 2: This is Wall Street Week. I'm David Weston. The United 230 00:13:05,280 --> 00:13:08,040 Speaker 2: States took a big step toward high speed trains this 231 00:13:08,200 --> 00:13:11,160 Speaker 2: week when Brightline West broke ground on a twelve billion 232 00:13:11,200 --> 00:13:13,520 Speaker 2: dollar project to build a rail link between Las Vegas 233 00:13:13,720 --> 00:13:16,480 Speaker 2: and Los Angeles. And we welcome now the founder and 234 00:13:16,600 --> 00:13:19,520 Speaker 2: chairman of Brightline. He is Wes Edens. Wes, great tip 235 00:13:19,559 --> 00:13:21,040 Speaker 2: to have you with us. Thank you for joining us 236 00:13:21,320 --> 00:13:23,559 Speaker 2: to tell us about this project bright Line West. It's 237 00:13:23,600 --> 00:13:26,520 Speaker 2: the second bright Line project after Florida. Give us a 238 00:13:26,559 --> 00:13:29,000 Speaker 2: sense of how big a business this is in success. 239 00:13:29,600 --> 00:13:31,280 Speaker 3: Well, first of all, thanks for having me on David. 240 00:13:31,320 --> 00:13:34,880 Speaker 3: You know, it's a great time for US. It's a 241 00:13:34,920 --> 00:13:37,520 Speaker 3: great time for the rail business. And so, as you said, 242 00:13:37,559 --> 00:13:41,719 Speaker 3: we broke around earlier today on Brightline West, which is 243 00:13:41,800 --> 00:13:44,760 Speaker 3: the second train project for US, but it's the most. Notably, 244 00:13:44,800 --> 00:13:48,040 Speaker 3: it's the first high speed train, true high speed rail 245 00:13:48,320 --> 00:13:51,600 Speaker 3: that'll be built in America, and that's a big deal 246 00:13:52,120 --> 00:13:54,839 Speaker 3: in a monumental location. And I think, actually even a 247 00:13:54,840 --> 00:13:56,480 Speaker 3: bigger deal is I really do think that this is 248 00:13:56,559 --> 00:13:58,920 Speaker 3: now the beginning of the high speed rail industry of 249 00:13:58,920 --> 00:14:02,640 Speaker 3: the US, which I think is massive. You opportunities and 250 00:14:02,679 --> 00:14:04,560 Speaker 3: growth in front of it. So it's a really exciting time. 251 00:14:05,120 --> 00:14:08,000 Speaker 2: Given your investment tracker, you've checked how much demand there 252 00:14:08,120 --> 00:14:10,880 Speaker 2: is out there potentially, and you've concluded it's big enough 253 00:14:10,920 --> 00:14:12,520 Speaker 2: to support this and make it a good business. How 254 00:14:12,600 --> 00:14:13,400 Speaker 2: much demand is there. 255 00:14:13,840 --> 00:14:16,559 Speaker 3: There's about fifty million trips that happen between Los Angeles 256 00:14:16,640 --> 00:14:19,320 Speaker 3: and Las Vegas every year, about eighty five percent of 257 00:14:19,320 --> 00:14:22,120 Speaker 3: those happened by car. And I don't know if you've 258 00:14:22,120 --> 00:14:24,720 Speaker 3: ever done the drive from Las Vegas to La but 259 00:14:24,840 --> 00:14:28,640 Speaker 3: it's a notably difficult drive. It's probably four hours in 260 00:14:28,720 --> 00:14:32,720 Speaker 3: the best case. It's very very unreliable in terms of 261 00:14:32,800 --> 00:14:34,920 Speaker 3: what the time actually is, and so there's a tremendous 262 00:14:34,920 --> 00:14:37,200 Speaker 3: amount of demand between these two cities. There's only one 263 00:14:37,240 --> 00:14:39,320 Speaker 3: way to get there, which is on I fifteen, and 264 00:14:39,400 --> 00:14:40,840 Speaker 3: so our train is going to go right down the 265 00:14:40,840 --> 00:14:42,800 Speaker 3: middle of I fifteen, and we think it's going to 266 00:14:42,960 --> 00:14:44,760 Speaker 3: have a massive amount of demand for people to make 267 00:14:44,800 --> 00:14:45,160 Speaker 3: that trip. 268 00:14:45,480 --> 00:14:47,800 Speaker 2: This is not your first fora You have bridline up 269 00:14:47,840 --> 00:14:51,480 Speaker 2: and running i've in Florida right between Miami and Orlando. 270 00:14:51,880 --> 00:14:53,640 Speaker 2: What have you learned from that that will change what 271 00:14:53,720 --> 00:14:54,760 Speaker 2: you do with Briadline West. 272 00:14:55,680 --> 00:14:56,440 Speaker 4: Well, i'd say. 273 00:14:56,360 --> 00:14:58,640 Speaker 3: Most notably learned that people like trains, right, so we 274 00:14:58,760 --> 00:15:00,760 Speaker 3: have millions of people that are our train down there. 275 00:15:00,840 --> 00:15:03,160 Speaker 3: The adoption a bit in South Florida and no awfter 276 00:15:03,240 --> 00:15:07,560 Speaker 3: Orlando has been terrific. We opened the route from Miami 277 00:15:07,640 --> 00:15:10,320 Speaker 3: all the way to Orlando recently. It was actually last September. 278 00:15:11,040 --> 00:15:14,200 Speaker 3: The numbers have been fantastic and we're very optimistic about 279 00:15:14,200 --> 00:15:17,280 Speaker 3: the future of that train. The biggest lesson, i'd say 280 00:15:17,360 --> 00:15:21,480 Speaker 3: is that when we built that train, we basically use 281 00:15:21,560 --> 00:15:24,240 Speaker 3: the existing rail corridor for a portion of it. So 282 00:15:24,320 --> 00:15:26,760 Speaker 3: basically from Miami up to Cocoa Beach. It's kind of 283 00:15:26,760 --> 00:15:29,160 Speaker 3: a straight shot from south to north. At that point 284 00:15:29,200 --> 00:15:31,560 Speaker 3: you turn left and then go across Throughte five twenty 285 00:15:31,560 --> 00:15:33,840 Speaker 3: eight to the Orlando Airport. That's how the route has 286 00:15:33,880 --> 00:15:37,760 Speaker 3: made what we did you know that because we had 287 00:15:37,800 --> 00:15:40,080 Speaker 3: access to the train. It was version one point zero. 288 00:15:40,080 --> 00:15:41,560 Speaker 3: As I said, it makes a lot of sense, but 289 00:15:41,600 --> 00:15:43,000 Speaker 3: there's a lot of things about it that we think 290 00:15:43,040 --> 00:15:45,080 Speaker 3: can be improved on. In particular, there's a lot of 291 00:15:45,160 --> 00:15:48,280 Speaker 3: rail crossings there because that runs up really US Highway one. 292 00:15:48,760 --> 00:15:51,720 Speaker 3: So this train from Vegas to La will cite it 293 00:15:51,880 --> 00:15:54,000 Speaker 3: in the middle of I fifteen. It's a big two 294 00:15:54,080 --> 00:15:56,840 Speaker 3: hundred foot wide corridor but right in the middle of it. 295 00:15:56,920 --> 00:15:57,760 Speaker 1: And because of that, you. 296 00:15:57,800 --> 00:16:00,600 Speaker 3: Can put a fence around it, you can electrify, no 297 00:16:00,800 --> 00:16:03,560 Speaker 3: rail crossings, you can go true high speed, so you know, 298 00:16:03,600 --> 00:16:05,600 Speaker 3: north of two hundred miles an hour is kind of 299 00:16:05,680 --> 00:16:08,880 Speaker 3: the objective, and that version two point zero is what 300 00:16:08,960 --> 00:16:11,080 Speaker 3: we think makes sense for this quarter, and I think 301 00:16:11,120 --> 00:16:13,320 Speaker 3: it's a good blueprint for what we should find success 302 00:16:13,360 --> 00:16:15,320 Speaker 3: with in other parts of the country as well. 303 00:16:15,600 --> 00:16:18,120 Speaker 2: What's the time horizon you're looking at for these investments. 304 00:16:18,160 --> 00:16:21,320 Speaker 2: I believe you're cash positive in Brightline out in Florida. 305 00:16:21,400 --> 00:16:24,080 Speaker 2: Now you haven't recouped the investment yet, but your cash positive. 306 00:16:24,240 --> 00:16:27,000 Speaker 2: How long until you actually recruit investment in Brightline or 307 00:16:27,040 --> 00:16:28,160 Speaker 2: for that matter, bright Line West. 308 00:16:28,360 --> 00:16:29,960 Speaker 3: You know, I think from this point forward in bright 309 00:16:30,040 --> 00:16:32,680 Speaker 3: Line East, it's all systems go. You know, we're adding 310 00:16:32,760 --> 00:16:36,360 Speaker 3: more capacity this summer in June with more train cars, 311 00:16:36,400 --> 00:16:38,480 Speaker 3: the same in the end of the year in December, 312 00:16:38,480 --> 00:16:40,240 Speaker 3: and then the same again next year. And so with 313 00:16:40,400 --> 00:16:44,160 Speaker 3: that you'll then get to higher ridership levels, higher revenues, 314 00:16:44,400 --> 00:16:46,160 Speaker 3: and we think that that's a time in which we'll 315 00:16:46,160 --> 00:16:48,560 Speaker 3: start to look at, you know, different alternative in terms 316 00:16:48,600 --> 00:16:51,000 Speaker 3: of financing, bringing in equity, you know, et cetera, et cetera. 317 00:16:51,480 --> 00:16:53,480 Speaker 2: Do you have a sense of when you would bring 318 00:16:53,560 --> 00:16:54,320 Speaker 2: in other investors. 319 00:16:54,480 --> 00:16:56,800 Speaker 3: Yeah, we have brought in, you know, modest investors. I mean, 320 00:16:57,240 --> 00:16:59,680 Speaker 3: I'm a large investor in a personally, so I'm a 321 00:16:59,760 --> 00:17:01,680 Speaker 3: big believer and I kind of eat my own cooking, 322 00:17:01,760 --> 00:17:03,920 Speaker 3: so to speak with it and have for a long time. 323 00:17:04,640 --> 00:17:07,080 Speaker 3: I think that it's an investable project now, and so 324 00:17:08,040 --> 00:17:12,520 Speaker 3: the the groundbreaking today I think signifies kind of the 325 00:17:12,600 --> 00:17:14,760 Speaker 3: next layer of it, and I think that there will 326 00:17:14,800 --> 00:17:17,000 Speaker 3: be some investment opportunities both on the debt and equity 327 00:17:17,080 --> 00:17:20,240 Speaker 3: side in the upcoming kind of you know, months between 328 00:17:20,280 --> 00:17:21,840 Speaker 3: now and the end of the year, and then I 329 00:17:21,880 --> 00:17:23,920 Speaker 3: think as you get under construction, I think that there's 330 00:17:24,280 --> 00:17:26,720 Speaker 3: lots and lots of different opportunities to grow the business 331 00:17:26,760 --> 00:17:29,600 Speaker 3: because this is something clearly can be replicated. Their city 332 00:17:29,640 --> 00:17:31,480 Speaker 3: prayers around the country tell. 333 00:17:31,440 --> 00:17:34,399 Speaker 2: Us about the government role. We had Sexuary Boodagenche come 334 00:17:34,440 --> 00:17:37,920 Speaker 2: out for the groundbreaking bright Lane West. How critical is 335 00:17:38,000 --> 00:17:40,959 Speaker 2: the government? Can these happen without the government really supporting them? 336 00:17:41,240 --> 00:17:43,399 Speaker 3: I think the long term and the answer is absolutely yes. 337 00:17:43,480 --> 00:17:45,679 Speaker 3: But I think that there's lots of examples of government 338 00:17:45,720 --> 00:17:48,240 Speaker 3: playing pivotal role to getting new industries off the ground. 339 00:17:48,240 --> 00:17:49,800 Speaker 3: So if you look at the history of you know, 340 00:17:49,880 --> 00:17:53,960 Speaker 3: Elon Musk with his SpaceX, or the electric vehicles, or 341 00:17:54,280 --> 00:17:56,200 Speaker 3: you know, subsidies for the solar business, there's lots of 342 00:17:56,240 --> 00:17:58,840 Speaker 3: examples of things that started out being subsidized and then 343 00:17:58,880 --> 00:18:01,200 Speaker 3: turned into be you know, big robust businesses. And I 344 00:18:01,240 --> 00:18:04,159 Speaker 3: think the train is going to follow those same footsteps. 345 00:18:04,240 --> 00:18:07,080 Speaker 3: So you know, when you say government, really there's many 346 00:18:07,119 --> 00:18:10,800 Speaker 3: governments involved. So it's really a coalition of local governments 347 00:18:10,880 --> 00:18:13,680 Speaker 3: and state governments and federal governments, all of them playing 348 00:18:13,680 --> 00:18:17,399 Speaker 3: in big role. Obviously, the federal government in the Department Transportation, 349 00:18:17,920 --> 00:18:20,280 Speaker 3: you know, providing a three billion dollar grant, was a 350 00:18:20,480 --> 00:18:23,320 Speaker 3: huge part of this, but frankly, so were you know, 351 00:18:23,440 --> 00:18:29,240 Speaker 3: the delegations from Nevada and from California. Frankly, the governor 352 00:18:29,640 --> 00:18:33,359 Speaker 3: in Nevada, you know, my governm. Lombardo, who has been 353 00:18:33,359 --> 00:18:36,720 Speaker 3: an incredible supporter the DOT, the Department of Transportations, our 354 00:18:36,800 --> 00:18:39,680 Speaker 3: partner in Nevada for this project. So, you know, I 355 00:18:39,840 --> 00:18:41,960 Speaker 3: like to think that it takes everyone to say yes 356 00:18:42,000 --> 00:18:44,080 Speaker 3: and only one person say no to derail these kinds 357 00:18:44,080 --> 00:18:46,800 Speaker 3: of projects. And fortunately we have such a compelling project 358 00:18:46,840 --> 00:18:48,520 Speaker 3: that we've actually had nothing but yes. 359 00:18:48,680 --> 00:18:50,480 Speaker 4: So it's a really a good position to be in. 360 00:18:50,760 --> 00:18:52,920 Speaker 2: Okay, Wes, thank you so very much. That's west Edens. 361 00:18:53,040 --> 00:18:59,159 Speaker 2: He's chairing of Brideline and Brightline West. The arts, including music, museums, photography, 362 00:18:59,200 --> 00:19:02,480 Speaker 2: and more, contributed over one trillion dollars to the US 363 00:19:02,520 --> 00:19:04,680 Speaker 2: economy in twenty twenty two, according to the Bureau of 364 00:19:04,720 --> 00:19:08,159 Speaker 2: Economic Analysis, and New York in particular is known for 365 00:19:08,280 --> 00:19:11,520 Speaker 2: its performances and museums, but the very nature of the 366 00:19:11,800 --> 00:19:15,200 Speaker 2: arts is going through fundamental changes in what is presented 367 00:19:15,400 --> 00:19:18,040 Speaker 2: and in how it is paid for. Change is triggered 368 00:19:18,080 --> 00:19:20,320 Speaker 2: in part by a pandemic that forced most of us 369 00:19:20,400 --> 00:19:23,119 Speaker 2: to stay at home. Sir Clive Gillinson has been the 370 00:19:23,160 --> 00:19:26,400 Speaker 2: executive and artistic director of Carnegie Hall for nearly two decades, 371 00:19:26,720 --> 00:19:29,879 Speaker 2: and he remembers well the dramatic moment when his legendary 372 00:19:29,920 --> 00:19:32,680 Speaker 2: concert hall was once again open for business. 373 00:19:33,600 --> 00:19:35,639 Speaker 4: One of the most moving things is when we opened 374 00:19:35,680 --> 00:19:39,280 Speaker 4: again after COVID. The emotion in the hall was astounding 375 00:19:40,040 --> 00:19:42,359 Speaker 4: because Robert Smith, ou chairman, and I thought we should 376 00:19:42,359 --> 00:19:46,080 Speaker 4: speak to the audience on the opening night and I 377 00:19:46,200 --> 00:19:48,800 Speaker 4: literally said the first two words, which will welcome back. 378 00:19:49,760 --> 00:19:57,960 Speaker 4: The place exploded, welcome back to Cardigi. And that emotion 379 00:19:58,280 --> 00:20:02,040 Speaker 4: has carried through. So firstly, I think the whole thing 380 00:20:02,080 --> 00:20:04,760 Speaker 4: of live music and the impact of live music that 381 00:20:05,000 --> 00:20:08,400 Speaker 4: is in the greatest possible shape, and you know, people 382 00:20:08,560 --> 00:20:10,560 Speaker 4: love it, care about it, and I think they even 383 00:20:10,600 --> 00:20:14,080 Speaker 4: today that emotion is still there about how they now 384 00:20:14,200 --> 00:20:17,240 Speaker 4: value it in a way where you only value something 385 00:20:17,400 --> 00:20:20,400 Speaker 4: when it's taken away from you. Are you Carnegie Hall 386 00:20:21,200 --> 00:20:24,600 Speaker 4: fully back from the pandemic? Yes, the first year we 387 00:20:24,680 --> 00:20:27,359 Speaker 4: had a reduced number of concerts last season. This season 388 00:20:27,760 --> 00:20:30,440 Speaker 4: it's the full number of concerts. We're back to the 389 00:20:30,560 --> 00:20:35,919 Speaker 4: normal number of presentations and audiences are averaging ninety three percent. 390 00:20:36,480 --> 00:20:39,280 Speaker 4: So we're I mean, you know, the fantastic response to 391 00:20:39,400 --> 00:20:42,520 Speaker 4: what we're doing, and there's a real feeling of engagement 392 00:20:42,640 --> 00:20:44,280 Speaker 4: with the music in a very powerful way. 393 00:20:45,520 --> 00:20:48,440 Speaker 2: It wasn't just performing art centers like Carnie Hall that 394 00:20:48,520 --> 00:20:51,440 Speaker 2: were hit hard by the pandemic. Tony James of Jefferson 395 00:20:51,520 --> 00:20:54,639 Speaker 2: River Capital serves as co chair of the Metropolitan Museum 396 00:20:54,720 --> 00:20:57,359 Speaker 2: of Art, a position he came to when the pandemic 397 00:20:57,480 --> 00:20:59,960 Speaker 2: hit and hit the met particularly hard. 398 00:21:00,880 --> 00:21:02,800 Speaker 5: The Met, for example, lost one hundred million dollars in 399 00:21:02,880 --> 00:21:06,640 Speaker 5: revenues over the two years, so that's hard to recover from. 400 00:21:07,480 --> 00:21:09,840 Speaker 5: A lot of the arts scenes in New York depend 401 00:21:09,920 --> 00:21:15,720 Speaker 5: on tourism. Our attendants from locals are all the way back. 402 00:21:16,320 --> 00:21:19,040 Speaker 5: Our tenants from tourists are only in the seventies, and 403 00:21:19,119 --> 00:21:22,639 Speaker 5: particularly Asian tourists. That's where we're really short, and so 404 00:21:23,200 --> 00:21:25,520 Speaker 5: it's a bit of a struggle. We've had to find 405 00:21:25,560 --> 00:21:28,080 Speaker 5: new revenue sources. We've had to be careful about costs. 406 00:21:29,000 --> 00:21:31,760 Speaker 5: But I think you know, as we've discussed in the past, David, 407 00:21:32,119 --> 00:21:34,720 Speaker 5: I think arts are with New York, the gateway city, 408 00:21:34,760 --> 00:21:35,800 Speaker 5: the wonderful city that it is. 409 00:21:36,560 --> 00:21:39,080 Speaker 2: The success of a great art center like Carnegie Hall 410 00:21:39,400 --> 00:21:42,879 Speaker 2: or the Metropolitan Museum requires a balance, a balance between 411 00:21:42,960 --> 00:21:46,280 Speaker 2: high culture that appeals to changing audiences and running a 412 00:21:46,480 --> 00:21:49,800 Speaker 2: very large business with all the challenges of managing costs 413 00:21:49,840 --> 00:21:53,200 Speaker 2: and attracting revenues that any CEO of a big complex 414 00:21:53,280 --> 00:21:56,440 Speaker 2: company would understand. One of the things that strikes me 415 00:21:56,600 --> 00:22:00,800 Speaker 2: is your title, your executive and artistic director. It reminds 416 00:22:00,800 --> 00:22:02,600 Speaker 2: me a little bit about that division between a publisher 417 00:22:02,600 --> 00:22:03,680 Speaker 2: and an editor and newspaper. 418 00:22:03,800 --> 00:22:04,359 Speaker 1: You have both. 419 00:22:04,760 --> 00:22:07,199 Speaker 2: You're responsible for the business as it were Accrdentyhill as 420 00:22:07,240 --> 00:22:09,720 Speaker 2: well as the artistry give us the sense of the balance. 421 00:22:09,760 --> 00:22:11,919 Speaker 2: How do you get the right balance between the business 422 00:22:11,960 --> 00:22:13,160 Speaker 2: side and the art side. 423 00:22:13,440 --> 00:22:17,760 Speaker 4: I mean, it's a really interesting question because most organizations 424 00:22:17,840 --> 00:22:21,159 Speaker 4: separate the two. The reason I would never ever do 425 00:22:21,320 --> 00:22:25,040 Speaker 4: a job which was half of what I do is 426 00:22:25,119 --> 00:22:29,240 Speaker 4: because I feel if you're involved in the artistic you 427 00:22:29,400 --> 00:22:33,119 Speaker 4: want to be as expansive and imaginative and take risks, 428 00:22:33,880 --> 00:22:37,400 Speaker 4: you know, and really travel extraordinary journeys with the music. Now, 429 00:22:37,720 --> 00:22:40,200 Speaker 4: if you're the person responsible for the money, you're probably 430 00:22:40,280 --> 00:22:42,520 Speaker 4: going to be cautious and keep saying I'm not sure 431 00:22:42,560 --> 00:22:44,040 Speaker 4: we can do this, I'm not sure we can do that. 432 00:22:44,400 --> 00:22:47,360 Speaker 4: The good thing about doing the two together is if 433 00:22:47,400 --> 00:22:49,680 Speaker 4: I want to dream, I've then got to be part 434 00:22:49,760 --> 00:22:52,399 Speaker 4: of making sure that can happen as a business. So 435 00:22:52,520 --> 00:22:55,000 Speaker 4: in a way, I think it enables you to take 436 00:22:55,119 --> 00:22:58,000 Speaker 4: far greater risks because you're responsible for both. 437 00:22:58,800 --> 00:23:01,639 Speaker 2: You've been known throughout your career for taking some risks. 438 00:23:01,640 --> 00:23:04,000 Speaker 2: I mean you were, of course a professional cello player 439 00:23:04,200 --> 00:23:05,800 Speaker 2: back in the one Spring or extract. 440 00:23:05,800 --> 00:23:07,000 Speaker 4: Well, that was somebody else's risk. 441 00:23:09,160 --> 00:23:11,680 Speaker 2: But then you stepped up, not necessarily volunteering, but you 442 00:23:11,760 --> 00:23:14,200 Speaker 2: stepped up to really take over a struggling organization, and 443 00:23:14,240 --> 00:23:16,480 Speaker 2: you took risks from the very beginning. You've taken risks 444 00:23:16,520 --> 00:23:18,159 Speaker 2: at card of your hall. How do you get the 445 00:23:18,280 --> 00:23:21,680 Speaker 2: right balance, take your risk and we're not falling off 446 00:23:21,720 --> 00:23:22,480 Speaker 2: the high wire? 447 00:23:23,119 --> 00:23:25,719 Speaker 4: Well, I mean, of course, the key thing about all 448 00:23:25,880 --> 00:23:29,359 Speaker 4: risk is how you manage risk. I mean, you can't 449 00:23:29,400 --> 00:23:33,199 Speaker 4: live without risk. And so you know, there's a famous 450 00:23:33,240 --> 00:23:36,959 Speaker 4: saying which is you know, if you're not living near 451 00:23:37,040 --> 00:23:40,680 Speaker 4: the edge, you're taking up too much space. Money follows vision. 452 00:23:41,119 --> 00:23:44,040 Speaker 4: You always go for the vision. Go for something that 453 00:23:44,160 --> 00:23:47,040 Speaker 4: is irresistible, that has to happen, and then there's a 454 00:23:47,119 --> 00:23:49,440 Speaker 4: chance you can sell it to somebody else if it's 455 00:23:49,520 --> 00:23:52,399 Speaker 4: good and the world can live without it. I mean, 456 00:23:52,440 --> 00:23:56,040 Speaker 4: it's very nice for it to happen. If it's only that, 457 00:23:56,720 --> 00:23:58,800 Speaker 4: it's very hard to sell to somebody else. It's got 458 00:23:58,840 --> 00:23:59,680 Speaker 4: to be irresistible. 459 00:24:00,640 --> 00:24:03,480 Speaker 2: Over at the Metropolitan Museum, Tony James says that the 460 00:24:03,560 --> 00:24:06,639 Speaker 2: mission is to show the world great art, but to 461 00:24:06,760 --> 00:24:08,760 Speaker 2: do that it needs to generate a great deal of 462 00:24:08,800 --> 00:24:11,880 Speaker 2: revenue each year to support the facilities, including the two 463 00:24:12,040 --> 00:24:15,280 Speaker 2: million pieces of art the met owns, only fifteen percent 464 00:24:15,320 --> 00:24:17,720 Speaker 2: of which are on display at any given time, and 465 00:24:17,800 --> 00:24:20,600 Speaker 2: to mount more than twice as many exhibitions each year 466 00:24:20,960 --> 00:24:22,800 Speaker 2: as any other museum in the world. 467 00:24:23,560 --> 00:24:26,560 Speaker 5: About thirty percent of our revenues come from people paying 468 00:24:26,640 --> 00:24:29,520 Speaker 5: to go in, buying food, buying stuff in so let's 469 00:24:29,640 --> 00:24:31,880 Speaker 5: just call that revenues members as well, So that's about 470 00:24:31,920 --> 00:24:34,720 Speaker 5: thirty percent. About thirty percent of our revenues comes from 471 00:24:34,880 --> 00:24:37,879 Speaker 5: spin off from the endowment. We'd spend about four and 472 00:24:37,920 --> 00:24:40,040 Speaker 5: a half percent of the endowment each year, but that's 473 00:24:40,160 --> 00:24:43,320 Speaker 5: very restricted because people give you know, I'm giving this money, 474 00:24:43,359 --> 00:24:44,960 Speaker 5: but the interest on it can only be used to 475 00:24:44,960 --> 00:24:47,800 Speaker 5: buy renaissance art or something. There's fun fund digs in Egypt, 476 00:24:47,880 --> 00:24:51,120 Speaker 5: or there's all kinds of strange things, and then about 477 00:24:51,160 --> 00:24:53,480 Speaker 5: forty percent. The remaining forty percent comes from contributions with 478 00:24:53,600 --> 00:24:56,159 Speaker 5: different sorts. The problem the MET has is more one 479 00:24:56,160 --> 00:24:57,480 Speaker 5: of the great things about the MET depending on on 480 00:24:57,520 --> 00:24:58,080 Speaker 5: you want to look at it. 481 00:24:58,160 --> 00:24:59,080 Speaker 2: We sit on city land. 482 00:24:59,119 --> 00:25:00,639 Speaker 5: It was given a hundred fIF years ago, but we 483 00:25:00,680 --> 00:25:04,560 Speaker 5: sit on city land, and the deal was that city 484 00:25:04,680 --> 00:25:06,920 Speaker 5: residents can pay what you wish as you come in. 485 00:25:07,280 --> 00:25:09,800 Speaker 5: So the average city resident pays less than ten dollars 486 00:25:10,640 --> 00:25:13,920 Speaker 5: to come in for one of the biggest museums in 487 00:25:13,960 --> 00:25:16,480 Speaker 5: the world. They can spend days there or weeks there, 488 00:25:16,760 --> 00:25:21,480 Speaker 5: and whereas a tourist pays twenty eight dollars. So when 489 00:25:21,520 --> 00:25:23,760 Speaker 5: you lose your tourism, you lose a lot of the 490 00:25:23,840 --> 00:25:27,959 Speaker 5: reft of paying people honestly, and so that's been a challenge. 491 00:25:30,040 --> 00:25:32,320 Speaker 2: Coming up, we'll take a closer look at how centers 492 00:25:32,359 --> 00:25:35,000 Speaker 2: of art and culture are changing what they present to 493 00:25:35,119 --> 00:25:38,439 Speaker 2: adjust to changing audiences and what lies ahead in an 494 00:25:38,480 --> 00:25:43,600 Speaker 2: increasingly digital world. That's next on Wall Street Week on Bloomberg. 495 00:25:44,840 --> 00:25:49,040 Speaker 1: This is Bloomberg Wall Street Week with David Weston from 496 00:25:49,200 --> 00:25:50,080 Speaker 1: Bloomberg Radio. 497 00:25:56,760 --> 00:25:59,400 Speaker 2: This is Wall Street Week. I'm David Weston. There's more 498 00:25:59,480 --> 00:26:01,560 Speaker 2: to sustain I mean, the cultural center of New York 499 00:26:01,640 --> 00:26:05,080 Speaker 2: than presenting great art. Institutions like Carnegie Hall and the 500 00:26:05,200 --> 00:26:08,840 Speaker 2: Metropolitan Museum must respond to the changing city and culture 501 00:26:08,920 --> 00:26:12,200 Speaker 2: around them, reaching out to new communities and adapting to 502 00:26:12,280 --> 00:26:15,280 Speaker 2: the new forms of expression that the digital world makes possible, 503 00:26:15,560 --> 00:26:18,000 Speaker 2: and perhaps most of all, using the art to tell 504 00:26:18,040 --> 00:26:19,919 Speaker 2: compelling stories for all of us. 505 00:26:20,359 --> 00:26:24,359 Speaker 4: We have transformed the whole. So I mean, firstly, we 506 00:26:24,520 --> 00:26:28,080 Speaker 4: do much more storytelling. We started big festivals when I began, 507 00:26:28,600 --> 00:26:30,920 Speaker 4: and one of the earliest things was to ask Jesse 508 00:26:31,080 --> 00:26:36,639 Speaker 4: Norman an extraordinary thing, to create and curate a series 509 00:26:36,640 --> 00:26:39,800 Speaker 4: about African American culture. And we've looked at a number 510 00:26:39,880 --> 00:26:42,560 Speaker 4: of big stories. I mean, We've looked at migrations and 511 00:26:42,640 --> 00:26:47,400 Speaker 4: how migrations created American culture. We've looked at afric futurism. 512 00:26:47,480 --> 00:26:51,399 Speaker 4: We've looked at the role of women in music, but 513 00:26:52,000 --> 00:26:56,520 Speaker 4: more generally across the whole of culture. Now currently we're 514 00:26:56,520 --> 00:26:59,080 Speaker 4: looking at the fall of Weimar Republican using that as 515 00:26:59,080 --> 00:27:01,840 Speaker 4: a lens to look at the fragility of democracy all 516 00:27:01,920 --> 00:27:04,880 Speaker 4: around the world, big big issue of our day. Next 517 00:27:04,920 --> 00:27:07,760 Speaker 4: season we'll be looking at Latin music, So a huge 518 00:27:07,760 --> 00:27:09,920 Speaker 4: amount of storytelling. And that's only one dimension. 519 00:27:10,160 --> 00:27:12,120 Speaker 5: I suppose if you're a tourist and you've never seen 520 00:27:12,640 --> 00:27:14,760 Speaker 5: Haystack Van Goes Haystacks, you want to go see them 521 00:27:14,800 --> 00:27:18,159 Speaker 5: in person. But because so much of our audience is 522 00:27:18,240 --> 00:27:20,080 Speaker 5: local and we want them not to go once a 523 00:27:20,200 --> 00:27:21,879 Speaker 5: year or once every three years, we want them to 524 00:27:21,920 --> 00:27:25,359 Speaker 5: go every month. We wanted to come back, so we 525 00:27:25,560 --> 00:27:27,520 Speaker 5: have to have things that they want to go see. 526 00:27:27,640 --> 00:27:30,359 Speaker 5: That's current. I just got back from Berlin last night, 527 00:27:30,400 --> 00:27:33,280 Speaker 5: as you know, and they've got a wonderful contemporary art 528 00:27:33,320 --> 00:27:38,080 Speaker 5: museum there and it's it's got beautiful paintings, one Picasso 529 00:27:38,240 --> 00:27:42,680 Speaker 5: and one Magrie and it's a lovely collection of random, 530 00:27:42,840 --> 00:27:46,000 Speaker 5: if you will, but very high quality contemporary art. But 531 00:27:46,080 --> 00:27:48,800 Speaker 5: there's no theme to it. There's no story. We're trying 532 00:27:48,840 --> 00:27:50,920 Speaker 5: to create things that have a story so that people 533 00:27:50,960 --> 00:27:53,280 Speaker 5: want to come. Oh, this is you know, the rivalry 534 00:27:53,359 --> 00:27:55,640 Speaker 5: between deg and money and how they fed off each 535 00:27:55,680 --> 00:27:58,639 Speaker 5: other and they were both friends and at one point enemies, 536 00:27:58,840 --> 00:28:03,879 Speaker 5: and how money cut Dega out of one of the 537 00:28:03,920 --> 00:28:08,840 Speaker 5: paintings and get them interested in the narratives and the 538 00:28:08,920 --> 00:28:11,800 Speaker 5: Harlan and Renaissance Show has been a huge success of 539 00:28:12,040 --> 00:28:15,920 Speaker 5: celebrating that whole wave of culture that's centered in New York, 540 00:28:16,080 --> 00:28:19,359 Speaker 5: about the strength of Africa and the wonderfulness of African 541 00:28:19,400 --> 00:28:22,879 Speaker 5: American culture that's been spectacularly successful and was not very 542 00:28:22,920 --> 00:28:25,359 Speaker 5: well known. That's where it gets people's interests. It's not 543 00:28:25,440 --> 00:28:26,320 Speaker 5: just seeing an object. 544 00:28:26,760 --> 00:28:28,960 Speaker 2: As important as it is to preserve the best of 545 00:28:29,080 --> 00:28:31,560 Speaker 2: what is time honored in the arts, it's just that 546 00:28:31,720 --> 00:28:34,240 Speaker 2: important to recognize great art that is being created to 547 00:28:34,320 --> 00:28:37,159 Speaker 2: the present day and in places that go well beyond 548 00:28:37,200 --> 00:28:40,760 Speaker 2: the traditions we've lived with for so long, especially as 549 00:28:40,800 --> 00:28:44,480 Speaker 2: the profile of audiences continues to evolve. What is your 550 00:28:44,640 --> 00:28:47,840 Speaker 2: sense of how the profile and i'll say demographic profile 551 00:28:47,920 --> 00:28:51,160 Speaker 2: of your audiences has shifted over their nearly twenty years. 552 00:28:51,880 --> 00:28:54,880 Speaker 4: It's hard to say we have so many audiences because 553 00:28:54,880 --> 00:28:56,720 Speaker 4: we do so many different things. Were the best of 554 00:28:56,880 --> 00:29:00,880 Speaker 4: every sort of music who we aspire to be? So 555 00:29:01,720 --> 00:29:04,320 Speaker 4: in the some audiences which are very young, I mean, 556 00:29:04,360 --> 00:29:09,280 Speaker 4: for instance, our a Futurism audience was very different, you know, 557 00:29:09,600 --> 00:29:12,000 Speaker 4: and some up to seventy percent and never been in 558 00:29:12,080 --> 00:29:15,760 Speaker 4: Carnegie Hall before. So you know, with each project, we 559 00:29:15,920 --> 00:29:18,400 Speaker 4: develop new audiences and then we try and keep them 560 00:29:18,440 --> 00:29:23,080 Speaker 4: as part of our audience going forward. So I mean, 561 00:29:23,120 --> 00:29:25,600 Speaker 4: I think the audience has grown in terms of diversity, 562 00:29:25,680 --> 00:29:31,040 Speaker 4: but diversity meaning you know, not only race, but age, men, women, 563 00:29:31,480 --> 00:29:35,800 Speaker 4: I mean, you know, nationalities, everything, And we want to 564 00:29:35,920 --> 00:29:39,040 Speaker 4: be and represent the best of every sort of music, 565 00:29:39,440 --> 00:29:41,360 Speaker 4: which means that we're going to be relevant. I mean 566 00:29:41,400 --> 00:29:45,000 Speaker 4: there's something like one hundred and eighty nationalities in New York. 567 00:29:45,280 --> 00:29:48,160 Speaker 4: I mean insane, it's the most diverse city in the world. 568 00:29:48,360 --> 00:29:50,960 Speaker 4: But we want to be relevant and meaningful to everybody. 569 00:29:51,640 --> 00:29:54,720 Speaker 5: If you think about what's called the Western canon of 570 00:29:54,760 --> 00:29:57,760 Speaker 5: ours of the traditional they're all white male artists. A 571 00:29:57,840 --> 00:29:59,840 Speaker 5: lot of them are from Europe, all the way back 572 00:29:59,840 --> 00:30:03,720 Speaker 5: to the Middle Ages, through Renaissance to the Impressionism Old Masters. 573 00:30:04,720 --> 00:30:06,760 Speaker 2: Not a lot of diversity in that group. 574 00:30:07,440 --> 00:30:10,640 Speaker 5: And then we had sections of the museum dedicated to 575 00:30:10,640 --> 00:30:13,200 Speaker 5: the arts of the Pacific in Asia, for example, but 576 00:30:13,280 --> 00:30:15,800 Speaker 5: they were very discreet parts of the museum. I think 577 00:30:16,200 --> 00:30:18,720 Speaker 5: the greatness of the mat is that we can integrate 578 00:30:18,760 --> 00:30:19,320 Speaker 5: all these things. 579 00:30:19,560 --> 00:30:21,840 Speaker 2: If we went back twenty years ago and looked at 580 00:30:21,880 --> 00:30:25,440 Speaker 2: the nature of the performers appearing on the stages here 581 00:30:25,560 --> 00:30:28,280 Speaker 2: at Carnegie Hall and competitor today, how would it be different. 582 00:30:28,400 --> 00:30:30,440 Speaker 2: How are you getting new young talent and where's it 583 00:30:30,520 --> 00:30:32,880 Speaker 2: coming from? Well, we all the time. 584 00:30:33,000 --> 00:30:35,520 Speaker 4: Part of our job is obviously to bring you the 585 00:30:35,600 --> 00:30:39,720 Speaker 4: most extraordinary established performers here, but at the same time 586 00:30:39,800 --> 00:30:43,240 Speaker 4: we are always looking out for the most brilliant young players. 587 00:30:43,280 --> 00:30:45,920 Speaker 4: So a few days ago we had somebody called Jan 588 00:30:46,040 --> 00:30:50,320 Speaker 4: chan Lim who won the Van Clibn competition. He was nineteen. 589 00:30:50,360 --> 00:30:52,360 Speaker 4: He's just turned twenty, so now he's an old man, 590 00:30:52,440 --> 00:30:56,160 Speaker 4: of course, but he came in it was sold out 591 00:30:56,240 --> 00:30:59,280 Speaker 4: weeks in advance. He's a dazzling player. I mean, he 592 00:30:59,400 --> 00:31:01,160 Speaker 4: is going to be out of our life for the 593 00:31:01,200 --> 00:31:02,800 Speaker 4: next fifty sixty seventy years. 594 00:31:02,880 --> 00:31:05,560 Speaker 2: Probably what we think of is the traditional patrons of 595 00:31:05,600 --> 00:31:08,280 Speaker 2: the arts remain key to success of a place like 596 00:31:08,360 --> 00:31:11,440 Speaker 2: the Metropolitan Museum, but they're now being joined by a new, 597 00:31:11,720 --> 00:31:13,960 Speaker 2: younger and more diverse group of supporters. 598 00:31:14,120 --> 00:31:17,120 Speaker 5: We're building a new, modern, contemporary wing. It's just going 599 00:31:17,160 --> 00:31:19,840 Speaker 5: to get a really exciting project for the city six 600 00:31:20,000 --> 00:31:22,320 Speaker 5: hundred million dollars. You could spend two hundred million on 601 00:31:22,400 --> 00:31:24,320 Speaker 5: one Jockamenty sculpture if you had to buy. 602 00:31:24,240 --> 00:31:26,720 Speaker 2: It, and we got to fill an entire wing on art. 603 00:31:26,800 --> 00:31:30,280 Speaker 5: So we depend on collectors, usually at the end of 604 00:31:30,320 --> 00:31:33,240 Speaker 5: their lives, giving us their collections or parts of their collections. 605 00:31:34,000 --> 00:31:38,800 Speaker 5: So that set of givers is not that hasn't changed 606 00:31:38,840 --> 00:31:41,960 Speaker 5: very much. That's still not very diverse. It's old, it's 607 00:31:42,000 --> 00:31:46,720 Speaker 5: predominantly white, it's very wealthy, almost definitionally. But the people 608 00:31:46,760 --> 00:31:48,920 Speaker 5: that come in and give cash or go to benefits, 609 00:31:48,960 --> 00:31:52,520 Speaker 5: that's you young and we make every effort to make 610 00:31:52,560 --> 00:31:55,000 Speaker 5: that younger and more exciting and hipper. We're trying to 611 00:31:55,080 --> 00:31:57,520 Speaker 5: be current. We don't want this to be your grandmother's 612 00:31:57,520 --> 00:31:58,760 Speaker 5: attic for true. 613 00:31:58,840 --> 00:32:02,040 Speaker 2: Centers of art have to be great programmers to present 614 00:32:02,240 --> 00:32:05,600 Speaker 2: works in compelling ways, to tell stories. Beyond featuring what 615 00:32:05,720 --> 00:32:08,400 Speaker 2: people have already come to appreciate, they also play a 616 00:32:08,480 --> 00:32:11,360 Speaker 2: key role in educating us all and what we haven't seen, 617 00:32:11,680 --> 00:32:14,440 Speaker 2: what we have yet to appreciate, what is new, what 618 00:32:14,640 --> 00:32:17,800 Speaker 2: is different, and what is coming around the corner for me. 619 00:32:18,320 --> 00:32:22,880 Speaker 4: Education is not about audience development. Education is about giving 620 00:32:23,320 --> 00:32:26,520 Speaker 4: every child the opportunity to have access to music. So 621 00:32:26,920 --> 00:32:29,520 Speaker 4: we've got programs that are all around the country and 622 00:32:29,680 --> 00:32:32,040 Speaker 4: serve kids everywhere. I mean, we now reach eight hundred 623 00:32:32,120 --> 00:32:36,280 Speaker 4: thousand people a year with our education programs, probably the 624 00:32:36,360 --> 00:32:40,160 Speaker 4: bulk of those outside New York City. But if those 625 00:32:40,240 --> 00:32:44,160 Speaker 4: people never come to New York, I think we've succeeded 626 00:32:44,200 --> 00:32:46,040 Speaker 4: as long as music can be part of their life, 627 00:32:47,200 --> 00:32:48,720 Speaker 4: you know, Whereas if you were looking at as an 628 00:32:48,800 --> 00:32:51,160 Speaker 4: audience development, we would have failed miserably. 629 00:32:51,760 --> 00:32:53,760 Speaker 2: So you'll forgive me. This is Bloomberg. So we like 630 00:32:53,800 --> 00:32:55,880 Speaker 2: to think about the business model too. When you talk 631 00:32:55,920 --> 00:32:59,120 Speaker 2: about educating eight hundred thousand kids, how do you support that? 632 00:32:59,400 --> 00:33:00,560 Speaker 2: Where's the renew for that? 633 00:33:01,280 --> 00:33:05,080 Speaker 4: Well, I mean there's two things. Firstly, to create it, 634 00:33:05,200 --> 00:33:08,320 Speaker 4: you have to have partnerships. So we have partnerships all 635 00:33:08,360 --> 00:33:11,600 Speaker 4: around the country with people who share our values. And 636 00:33:11,760 --> 00:33:15,000 Speaker 4: you can't have partnerships without shared values. So we do 637 00:33:15,120 --> 00:33:17,240 Speaker 4: all of that, and then we have to raise a 638 00:33:17,360 --> 00:33:19,760 Speaker 4: huge amount of money. I don't know the exact amount 639 00:33:19,840 --> 00:33:21,960 Speaker 4: we spend on education every year, but out of a 640 00:33:22,040 --> 00:33:25,000 Speaker 4: budget of about one hundred and twenty million a year, 641 00:33:25,760 --> 00:33:29,280 Speaker 4: I would have thought we spend probably at least fifteen 642 00:33:29,400 --> 00:33:33,440 Speaker 4: million on education, which is not much less than we 643 00:33:33,560 --> 00:33:35,040 Speaker 4: spend on presenting concerts. 644 00:33:35,760 --> 00:33:38,640 Speaker 2: Like every business and institution, art centers are embracing what 645 00:33:38,840 --> 00:33:42,480 Speaker 2: digital technology makes possible, expanding their reach and exposure to 646 00:33:42,520 --> 00:33:45,080 Speaker 2: people in New York and around the world, such as, 647 00:33:45,120 --> 00:33:48,840 Speaker 2: for example, Carnegie Hall's new streaming service called Carnegie Hall Plus, 648 00:33:49,280 --> 00:33:51,920 Speaker 2: providing us the opportunity to enjoy great music in the 649 00:33:51,960 --> 00:33:53,160 Speaker 2: comfort of our homes. 650 00:33:53,480 --> 00:33:57,560 Speaker 4: It's on Apple TV, it's on Amazon, Comcast, It's on 651 00:33:57,720 --> 00:34:01,160 Speaker 4: ten different major platforms, so it's available to every home 652 00:34:01,400 --> 00:34:04,800 Speaker 4: in America. Just about now. We're also going more and 653 00:34:04,880 --> 00:34:10,080 Speaker 4: more international. And my view always is here we are. 654 00:34:10,160 --> 00:34:12,800 Speaker 4: I mean, even though it's such an extraordinary city in 655 00:34:12,840 --> 00:34:14,719 Speaker 4: New York, I don't know, I mean, what is it? 656 00:34:15,040 --> 00:34:18,120 Speaker 4: Probably ninety five percent of the world's population will never 657 00:34:18,200 --> 00:34:21,400 Speaker 4: come to New York, so what we do needs to 658 00:34:21,480 --> 00:34:26,400 Speaker 4: be available everywhere to everybody. I never think that digital 659 00:34:26,600 --> 00:34:30,440 Speaker 4: is a competitor with live. The live experience is the 660 00:34:30,520 --> 00:34:35,040 Speaker 4: greatest possible experience. It's of the moment, it's being created 661 00:34:35,160 --> 00:34:38,240 Speaker 4: for you at that moment you're sharing it with other people. 662 00:34:38,560 --> 00:34:42,240 Speaker 4: There's something magical and special about a great live performance, 663 00:34:42,280 --> 00:34:45,279 Speaker 4: which is inspirational, but if you can't have access to that, 664 00:34:45,920 --> 00:34:50,879 Speaker 4: then to have access digitally is a fantastic opportunity which 665 00:34:50,960 --> 00:34:53,560 Speaker 4: we should give people as well, but it is not 666 00:34:53,680 --> 00:34:57,040 Speaker 4: a replacement. So I never worry about digital being something 667 00:34:57,120 --> 00:35:00,800 Speaker 4: that's going to undermine people's wish to go to live performance. 668 00:35:01,080 --> 00:35:04,480 Speaker 2: The Metropolitan Museum is also using digital technology to gain 669 00:35:04,560 --> 00:35:07,120 Speaker 2: more ready access to audiences around the world, but it's 670 00:35:07,200 --> 00:35:10,239 Speaker 2: also designing a new wing of the physical museum with 671 00:35:10,400 --> 00:35:13,239 Speaker 2: the future evolution of technology very much in mind. 672 00:35:13,600 --> 00:35:15,920 Speaker 5: We're trying to digitize every one of our significant pieces 673 00:35:15,960 --> 00:35:18,480 Speaker 5: of work in high depth and make that free to 674 00:35:18,560 --> 00:35:22,720 Speaker 5: the world. And our mission is to show the world 675 00:35:22,880 --> 00:35:25,040 Speaker 5: great art, and it's not everyone's going to be able 676 00:35:25,080 --> 00:35:26,759 Speaker 5: to afford to travel to New York, so we have 677 00:35:26,920 --> 00:35:29,839 Speaker 5: to make that available to them digitally. The big question 678 00:35:29,920 --> 00:35:32,200 Speaker 5: is when you build a new wing, is like, what's technology? 679 00:35:32,320 --> 00:35:33,880 Speaker 5: This wing has to last one hundred years, so what 680 00:35:34,280 --> 00:35:35,160 Speaker 5: what are we building for. 681 00:35:36,600 --> 00:35:40,239 Speaker 2: Finally, one more thought from Sir Clive Gillinson, Executive and 682 00:35:40,320 --> 00:35:43,480 Speaker 2: Creative Director of Carnegie Hall about the Hall itself, how 683 00:35:43,560 --> 00:35:45,680 Speaker 2: it came to be and what makes it an icon 684 00:35:45,760 --> 00:35:47,520 Speaker 2: for performers of all sorts the. 685 00:35:47,640 --> 00:35:51,200 Speaker 4: World over and genuinely think that's the greatest concerts in 686 00:35:51,200 --> 00:35:54,399 Speaker 4: the world, which is completely baffling in terms of acoustics. Yes, 687 00:35:55,080 --> 00:35:57,239 Speaker 4: that's what I've always heard, and I mean what is 688 00:35:57,280 --> 00:36:01,479 Speaker 4: as sotonishing is because of the sign. It's eight hundred seats. 689 00:36:01,800 --> 00:36:05,880 Speaker 4: Most concertables are two thousand, and yet it feels completely 690 00:36:05,960 --> 00:36:10,040 Speaker 4: intimate wherever you sit and people who sit right you know, 691 00:36:10,200 --> 00:36:12,160 Speaker 4: because students will sit right at where you'll see it 692 00:36:12,200 --> 00:36:15,400 Speaker 4: from the platform, right at the back, and you can 693 00:36:15,520 --> 00:36:18,279 Speaker 4: hear it as if it's in your living room. If 694 00:36:18,360 --> 00:36:23,239 Speaker 4: you look up there, they can hear as well as 695 00:36:23,280 --> 00:36:26,719 Speaker 4: anybody else in the entire hall. And you can have 696 00:36:27,080 --> 00:36:31,960 Speaker 4: a massive orchestra making a huge noise and it works perfectly. 697 00:36:32,520 --> 00:36:35,239 Speaker 4: It can carry any sound, any amount of sound. And 698 00:36:35,400 --> 00:36:38,440 Speaker 4: yet you could just have somebody playing a lute here 699 00:36:38,840 --> 00:36:40,399 Speaker 4: and you can still hear every sound. 700 00:36:40,800 --> 00:36:42,840 Speaker 2: So what goes into making a concert hall one of 701 00:36:42,920 --> 00:36:46,320 Speaker 2: the greatest in the world. It turns out pretty much everything. 702 00:36:46,760 --> 00:36:50,680 Speaker 4: The reality is you cannot replicate a great concert hall 703 00:36:50,960 --> 00:36:54,600 Speaker 4: because I mean every single thing counts. The density of 704 00:36:54,640 --> 00:36:57,960 Speaker 4: the plaster on the wall matters, the carpet, what the 705 00:36:58,239 --> 00:37:01,280 Speaker 4: padding in the seats is and we send these seats 706 00:37:01,360 --> 00:37:04,160 Speaker 4: back to Canada to the manufacturer who made them in 707 00:37:04,280 --> 00:37:08,120 Speaker 4: eighteen ninety one, because nobody dares touch anything that could 708 00:37:08,120 --> 00:37:11,080 Speaker 4: affect the sound, So they go back to the same 709 00:37:11,160 --> 00:37:13,479 Speaker 4: place that they were made one hundred and thirty whatever 710 00:37:13,520 --> 00:37:16,160 Speaker 4: it is years ago, and so on. You know, even 711 00:37:16,200 --> 00:37:18,239 Speaker 4: when you have to put wires in the walls, the 712 00:37:18,320 --> 00:37:20,719 Speaker 4: fact that you'll be changing the plaster, you've got to 713 00:37:20,760 --> 00:37:23,040 Speaker 4: be careful that you try and get the right density 714 00:37:23,040 --> 00:37:23,600 Speaker 4: of plaster. 715 00:37:24,040 --> 00:37:26,840 Speaker 2: But the unique combination of qualities that have made Carnegie 716 00:37:26,840 --> 00:37:29,920 Speaker 2: Hall a legend around the world came together, almost by accident, 717 00:37:30,160 --> 00:37:33,680 Speaker 2: created by someone unknown as an architect who'd never done 718 00:37:33,760 --> 00:37:36,320 Speaker 2: this before, to please the wife of one of the 719 00:37:36,360 --> 00:37:37,399 Speaker 2: world's richest men. 720 00:37:38,000 --> 00:37:39,960 Speaker 4: And this guy had never built a concert wor in 721 00:37:40,000 --> 00:37:43,200 Speaker 4: his life. I read, you can tell me for the wrong. 722 00:37:44,000 --> 00:37:46,600 Speaker 4: The fellow who was the architect was actually a cellist. 723 00:37:47,040 --> 00:37:49,480 Speaker 4: He was you played cella, which of course is the 724 00:37:49,520 --> 00:37:51,759 Speaker 4: reason why he was such a great act. He was 725 00:37:51,840 --> 00:37:55,719 Speaker 4: the treasurer of Louise Carnegie's choral Society because she sang. 726 00:37:56,080 --> 00:37:58,800 Speaker 4: Louise Carnegie sang it. The oratory of society there was 727 00:37:58,880 --> 00:38:01,480 Speaker 4: no decent colstors. She said to her husband, as you do, 728 00:38:02,160 --> 00:38:02,520 Speaker 4: would you be? 729 00:38:05,400 --> 00:38:07,279 Speaker 2: That does it? For this episode of Wall Street Week, 730 00:38:07,400 --> 00:38:10,319 Speaker 2: I'm David Weston. This is Bloomberg seenor next week