1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim Fox. 2 00:00:08,760 --> 00:00:11,520 Speaker 1: Along with my co host Lisa Abramowitz. Each day we 3 00:00:11,640 --> 00:00:15,120 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:15,200 --> 00:00:17,840 Speaker 1: you and your money, whether you're at the grocery store 5 00:00:17,960 --> 00:00:20,720 Speaker 1: or the trading floor. Find the Bloomberg p m L 6 00:00:20,840 --> 00:00:33,280 Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. It 7 00:00:33,320 --> 00:00:37,040 Speaker 1: has been one of the hottest stocks this year. Wait Watchers. Yes, 8 00:00:37,080 --> 00:00:39,920 Speaker 1: Weight Watchers Chief executive Mindy Grossman joins us here in 9 00:00:39,960 --> 00:00:42,879 Speaker 1: our eleven three oh studio. MINDI thank you very much 10 00:00:42,880 --> 00:00:45,640 Speaker 1: for being here. You know, before we get into the 11 00:00:45,720 --> 00:00:48,519 Speaker 1: details of the company and and you're rolling out, I 12 00:00:48,560 --> 00:00:50,800 Speaker 1: want to just get your thoughts on something because I 13 00:00:50,840 --> 00:00:53,040 Speaker 1: was looking at a couple of the recent press releases 14 00:00:53,159 --> 00:00:56,280 Speaker 1: and it does most of the recent stuff does not 15 00:00:56,520 --> 00:01:00,560 Speaker 1: say how to lose weight. It's not about weight loss. 16 00:01:00,880 --> 00:01:04,360 Speaker 1: It is about healthy lifestyles. And I want to mention 17 00:01:04,440 --> 00:01:07,120 Speaker 1: one particularly, maybe get your thoughts on this, because you 18 00:01:07,200 --> 00:01:10,520 Speaker 1: just recently did a deal and it's called w W 19 00:01:11,200 --> 00:01:14,120 Speaker 1: Healthy Kitchen, and I wonder if you could use that 20 00:01:14,200 --> 00:01:18,399 Speaker 1: as an example of how the whole conversation about health 21 00:01:18,560 --> 00:01:22,000 Speaker 1: and wellness and weight loss is changing in the United 22 00:01:22,000 --> 00:01:25,760 Speaker 1: States absolutely, PAM. When we announced our new purpose and 23 00:01:25,880 --> 00:01:29,080 Speaker 1: vision of we inspire healthy habits for real life, for people, 24 00:01:29,280 --> 00:01:33,040 Speaker 1: for families, for communities, the world, for everyone. That's really 25 00:01:33,040 --> 00:01:36,279 Speaker 1: about holistic approach to what you put in your body, 26 00:01:36,280 --> 00:01:39,240 Speaker 1: how you move your body, and how you think. And 27 00:01:39,400 --> 00:01:42,240 Speaker 1: as part of doing that, we made some real decisions 28 00:01:42,280 --> 00:01:44,160 Speaker 1: about not just what we would do, but what we 29 00:01:44,200 --> 00:01:46,759 Speaker 1: wouldn't do. So we announced we're getting out of any 30 00:01:46,800 --> 00:01:49,480 Speaker 1: products that have ever had our name on it, that 31 00:01:49,520 --> 00:01:54,320 Speaker 1: if anything artificial or preservative, and that we really wanted 32 00:01:54,360 --> 00:01:58,320 Speaker 1: to own the healthy kitchen in food, in products, in 33 00:01:58,480 --> 00:02:02,480 Speaker 1: content and recipes, and in chefs. So we recently announced 34 00:02:02,480 --> 00:02:07,440 Speaker 1: a partnership with Fresh Realm for fresh quick prep meals 35 00:02:07,440 --> 00:02:11,360 Speaker 1: that will be in grocery. We also announced a partnership 36 00:02:11,360 --> 00:02:14,200 Speaker 1: with Gibson for a whole line of products we just 37 00:02:14,280 --> 00:02:17,440 Speaker 1: launched at the Chicago Houseware Show UM to help you 38 00:02:17,520 --> 00:02:20,400 Speaker 1: cook healthier with your family in the kitchen and not 39 00:02:20,520 --> 00:02:23,680 Speaker 1: just in your kitchen. And we announced our first chef 40 00:02:23,680 --> 00:02:29,040 Speaker 1: Ambassador UM to be able to reflect and make all 41 00:02:29,080 --> 00:02:33,320 Speaker 1: these healthy recipes. So Chef Eric Greenspan, interestingly enough, was 42 00:02:33,360 --> 00:02:36,960 Speaker 1: known as the King of comfort cooking um, and we 43 00:02:36,960 --> 00:02:39,920 Speaker 1: were able to share his recipes of everything from shrimp 44 00:02:39,919 --> 00:02:43,119 Speaker 1: and grits for four points. But the most important thing 45 00:02:43,520 --> 00:02:46,839 Speaker 1: is to give people the tools and to give them 46 00:02:46,880 --> 00:02:50,200 Speaker 1: the education and inspiration to lead healthier lives. And we 47 00:02:50,200 --> 00:02:52,760 Speaker 1: were talking a little earlier that we know that when 48 00:02:52,800 --> 00:02:56,560 Speaker 1: someone in the family does Weight Watchers, the whole family 49 00:02:57,040 --> 00:03:01,240 Speaker 1: actually has a benefit and gets healthier because everything we 50 00:03:01,280 --> 00:03:04,240 Speaker 1: do fits into your life. There's nothing you can eat, 51 00:03:04,600 --> 00:03:06,800 Speaker 1: it's just learning the habits that's going to help you. 52 00:03:06,880 --> 00:03:11,160 Speaker 1: So anything we can give people provide people to do that. 53 00:03:11,240 --> 00:03:13,760 Speaker 1: And then the last and why it was so important. 54 00:03:14,080 --> 00:03:17,440 Speaker 1: We also know that one of the most valuable things 55 00:03:18,000 --> 00:03:21,839 Speaker 1: for our members consumers is time. So if we could 56 00:03:21,880 --> 00:03:26,200 Speaker 1: give them the ability to have a great meal that 57 00:03:26,320 --> 00:03:29,799 Speaker 1: they can prepare and under fifteen minutes, that is going 58 00:03:29,840 --> 00:03:31,920 Speaker 1: to give them the points going to fit into their life. 59 00:03:31,919 --> 00:03:33,079 Speaker 1: And they could do it for one, they could do 60 00:03:33,120 --> 00:03:35,800 Speaker 1: it for two, they could do it for four. This 61 00:03:35,920 --> 00:03:38,480 Speaker 1: just makes me think how much fads change because I 62 00:03:38,520 --> 00:03:43,600 Speaker 1: think of ultraslim fast shakes uh and how that was 63 00:03:43,640 --> 00:03:46,560 Speaker 1: the popular treatment. Give me a bar I can eat 64 00:03:46,600 --> 00:03:49,200 Speaker 1: and make me lose weight. Now it's about wholeness and 65 00:03:49,200 --> 00:03:52,680 Speaker 1: wellness and purity and and and these other things. I'm 66 00:03:52,720 --> 00:03:55,280 Speaker 1: just wondering how concerned you are. I mean, yes, your 67 00:03:55,320 --> 00:03:57,880 Speaker 1: shares have been on a run up more than so 68 00:03:57,920 --> 00:04:00,840 Speaker 1: far this year. How concerned are you that you're getting 69 00:04:00,880 --> 00:04:06,880 Speaker 1: into a territory that competes directly with Amazon, with Blue Apron, 70 00:04:07,120 --> 00:04:09,560 Speaker 1: with some of these other brands. We have to remember 71 00:04:09,640 --> 00:04:12,680 Speaker 1: this is not our only business. This is a product 72 00:04:12,680 --> 00:04:16,240 Speaker 1: extension that we think will not only service our existing 73 00:04:16,320 --> 00:04:20,359 Speaker 1: members but others as well. Number one, number two. Just 74 00:04:20,560 --> 00:04:26,000 Speaker 1: because we're going to enhance our offerings to include other things, 75 00:04:26,080 --> 00:04:30,520 Speaker 1: we will undeniably continue to be the number one authority 76 00:04:30,560 --> 00:04:35,279 Speaker 1: globally unhealthy weight loss UM and it's still very much 77 00:04:35,800 --> 00:04:39,080 Speaker 1: an acute need for people around the world. I always say, 78 00:04:39,080 --> 00:04:42,640 Speaker 1: everybody is talking about health and wellness UM the wellness economy. 79 00:04:42,800 --> 00:04:46,160 Speaker 1: Nobody wants to be on a diet, but nobody is 80 00:04:46,200 --> 00:04:48,920 Speaker 1: getting healthier, and we have a crisis in obesity. So 81 00:04:49,400 --> 00:04:51,160 Speaker 1: we know that weight loss is still going to be 82 00:04:51,200 --> 00:04:54,200 Speaker 1: an important component for us UM, and we have the 83 00:04:54,240 --> 00:04:58,400 Speaker 1: science behind it our Chief Scientific Officer, Academic Advisory Board 84 00:04:58,960 --> 00:05:02,960 Speaker 1: UM that is really an important element and science informs 85 00:05:03,000 --> 00:05:07,200 Speaker 1: everything we do, and that undeniably is a real differentiation factor. 86 00:05:08,279 --> 00:05:10,960 Speaker 1: Tell people how did weight Watchers begin, because that may 87 00:05:11,000 --> 00:05:13,240 Speaker 1: also be a little bit of an eye opener because 88 00:05:13,240 --> 00:05:16,280 Speaker 1: it wasn't about selling products at the beginning. Yeah, it's 89 00:05:16,320 --> 00:05:20,040 Speaker 1: really interesting. The two core tenants of weight Watchers from 90 00:05:20,040 --> 00:05:23,080 Speaker 1: the very beginning was what you put in your body, 91 00:05:23,120 --> 00:05:26,240 Speaker 1: the food, and more important, it was about community, which 92 00:05:26,279 --> 00:05:28,719 Speaker 1: instill inherently is a core of what we do. Was 93 00:05:28,839 --> 00:05:33,000 Speaker 1: g Nightitch starting in her home and bringing people together 94 00:05:33,120 --> 00:05:37,320 Speaker 1: to inspire each other. And today community is more important 95 00:05:37,320 --> 00:05:40,040 Speaker 1: than ever, so that whether that's our digital community within 96 00:05:40,080 --> 00:05:44,120 Speaker 1: our app call connect Um, or whether it's our physical 97 00:05:44,839 --> 00:05:48,080 Speaker 1: meetings we have uh just in the United States alone 98 00:05:48,160 --> 00:05:51,640 Speaker 1: fifteen thousand meetings a week, globally thirty thousand meetings a 99 00:05:51,680 --> 00:05:55,640 Speaker 1: week UM and our three and a half million members 100 00:05:55,680 --> 00:05:58,200 Speaker 1: are also all engaged in the app. And what we 101 00:05:58,240 --> 00:06:01,760 Speaker 1: have found today when we talk to consume humors, inspiration 102 00:06:02,200 --> 00:06:05,400 Speaker 1: is as important, if not more important, than education. So 103 00:06:05,520 --> 00:06:08,320 Speaker 1: what's the main obstacle? You said, people are getting less healthy, 104 00:06:08,400 --> 00:06:11,839 Speaker 1: not more. Why So I'm asked all the time who 105 00:06:11,839 --> 00:06:14,640 Speaker 1: our competition is, and I said, our greatest competition is 106 00:06:14,680 --> 00:06:17,720 Speaker 1: people thinking they can get healthy themselves. Um, and they 107 00:06:17,760 --> 00:06:20,360 Speaker 1: need a partner, and they need someone to give them 108 00:06:20,440 --> 00:06:23,800 Speaker 1: the tools and the education and the support along the way. 109 00:06:24,160 --> 00:06:27,320 Speaker 1: Only five percent of people use a commercial weight loss program. 110 00:06:27,440 --> 00:06:30,040 Speaker 1: Yeah but no, like very few day back in the fifties. 111 00:06:30,200 --> 00:06:34,400 Speaker 1: But what's happening? So I think that there's a lot happening. 112 00:06:34,680 --> 00:06:39,640 Speaker 1: I think people lead very frenetic lives. They're not necessarily 113 00:06:39,800 --> 00:06:43,640 Speaker 1: preparing understanding what they need to do to be healthier. Um, 114 00:06:43,760 --> 00:06:46,279 Speaker 1: how can they support their family? And and that's why, 115 00:06:46,760 --> 00:06:49,320 Speaker 1: you know, I think globally people need a partner in 116 00:06:49,400 --> 00:06:52,360 Speaker 1: health and that's what we're trying to do. Just talk 117 00:06:52,400 --> 00:06:54,159 Speaker 1: a little bit about some of the numbers, because I 118 00:06:54,200 --> 00:06:56,320 Speaker 1: know you've got a target by you want to do 119 00:06:56,360 --> 00:07:00,520 Speaker 1: two billion. I believe, yes, right, How is it to 120 00:07:00,560 --> 00:07:03,840 Speaker 1: have Oprah Winfrey behind you in order to reach that goal? Look, 121 00:07:03,960 --> 00:07:06,640 Speaker 1: Oprah has been a fantastic board member, and she's been 122 00:07:06,680 --> 00:07:10,960 Speaker 1: an incredible partner to me since I've been at the company. Um, 123 00:07:11,080 --> 00:07:14,640 Speaker 1: and she's very engaged and that's terrific. But what is 124 00:07:14,680 --> 00:07:18,240 Speaker 1: really important is that all the fundamentals of the business 125 00:07:18,760 --> 00:07:21,600 Speaker 1: continue to be enhanced. If you look at our member growth. 126 00:07:21,640 --> 00:07:24,800 Speaker 1: If you look at our retention him, it's the highest 127 00:07:25,000 --> 00:07:28,559 Speaker 1: levels it's ever been. So the more we can give 128 00:07:28,680 --> 00:07:31,440 Speaker 1: our customers what they want, our members what they want, 129 00:07:31,760 --> 00:07:34,520 Speaker 1: not just in terms of our program, but in terms 130 00:07:34,600 --> 00:07:38,280 Speaker 1: of personalizing the journey for them, giving them more tools 131 00:07:38,280 --> 00:07:41,559 Speaker 1: and content, um, giving them products and what we've said 132 00:07:41,920 --> 00:07:44,800 Speaker 1: to reach that number, we want to have at least 133 00:07:44,800 --> 00:07:48,000 Speaker 1: five million members in our program, touch another five million, 134 00:07:48,280 --> 00:07:50,560 Speaker 1: because it's the ripple effect that's really going to get 135 00:07:50,600 --> 00:07:52,760 Speaker 1: us there. Mindy Grossman, thank you so much for being 136 00:07:52,840 --> 00:07:57,160 Speaker 1: with us. Mindy Grossman, she executive officer of weight Washers, 137 00:07:57,240 --> 00:08:13,800 Speaker 1: based in New York. Facebook started the day on a 138 00:08:13,960 --> 00:08:17,160 Speaker 1: soft foot. That foot has only gotten softer. Here to 139 00:08:17,200 --> 00:08:20,720 Speaker 1: talk about what exactly is driving the losses that are 140 00:08:20,720 --> 00:08:24,120 Speaker 1: now nearly seven percent on these shares is our own 141 00:08:24,320 --> 00:08:27,120 Speaker 1: Paul Sweeney, who is head of North American Research for 142 00:08:27,160 --> 00:08:29,360 Speaker 1: Bloomberg Intelligence and joins us here in our eleven three 143 00:08:29,360 --> 00:08:32,679 Speaker 1: oh studios. So, Paul, what's the narrative driving this at 144 00:08:32,720 --> 00:08:34,880 Speaker 1: this point? Because earlier today it was just fear of 145 00:08:34,920 --> 00:08:38,400 Speaker 1: ambiguous regulation. But these are pretty big losses. Yeah, this 146 00:08:38,440 --> 00:08:40,880 Speaker 1: is this is impacting the tech sector across the board 147 00:08:40,880 --> 00:08:43,000 Speaker 1: and I think the reason we're seeing it obviously if 148 00:08:43,000 --> 00:08:45,280 Speaker 1: the Facebook news brings it to the forefront, and what 149 00:08:45,360 --> 00:08:47,560 Speaker 1: it brings to the forefront is I think a long held, 150 00:08:48,360 --> 00:08:51,640 Speaker 1: long term risk or concern that even the bullish tech 151 00:08:51,679 --> 00:08:54,040 Speaker 1: investors have in the back of their minds that UM, 152 00:08:54,240 --> 00:08:56,800 Speaker 1: regulatory risk is something that the industry really needs to 153 00:08:56,800 --> 00:08:59,800 Speaker 1: think about as it continues to consolidate and get bigger 154 00:08:59,800 --> 00:09:02,080 Speaker 1: on a global scales. So I'm really talking about the names, 155 00:09:02,440 --> 00:09:05,000 Speaker 1: the fang names, the facebooks, the Amazons, the Googles and 156 00:09:05,040 --> 00:09:07,760 Speaker 1: netflix is as they become you know, even larger in 157 00:09:07,840 --> 00:09:10,720 Speaker 1: terms of market cap and global reach. I think even 158 00:09:10,760 --> 00:09:13,400 Speaker 1: the most bullish investors would say, you know, that is 159 00:09:13,480 --> 00:09:17,480 Speaker 1: inviting more regulatory scrutiny around the world. We already see 160 00:09:17,520 --> 00:09:21,000 Speaker 1: the regulatory oversight um, I think coming to the for 161 00:09:21,120 --> 00:09:23,520 Speaker 1: a little bit more in Europe. UM. But now I 162 00:09:23,520 --> 00:09:25,160 Speaker 1: think this is bringing a little bit closer to home 163 00:09:25,200 --> 00:09:28,040 Speaker 1: with the Facebook news. Well, but aren't there already oversights 164 00:09:28,040 --> 00:09:30,640 Speaker 1: in terms of the kinds of content that can be 165 00:09:30,760 --> 00:09:34,960 Speaker 1: deemed criminal or illegal? There are and UM, and I 166 00:09:34,960 --> 00:09:37,720 Speaker 1: think Facebook will tell you that they have pretty good controls, 167 00:09:37,760 --> 00:09:40,920 Speaker 1: as would a Google, and uh, a Netflix and anybody 168 00:09:41,200 --> 00:09:44,600 Speaker 1: to whom you entrust a lot of personal information. Um. 169 00:09:44,640 --> 00:09:46,440 Speaker 1: But I think what we're finding out here from some 170 00:09:46,480 --> 00:09:50,359 Speaker 1: of the Facebook news is it's not necessarily the Facebook 171 00:09:50,640 --> 00:09:52,800 Speaker 1: per se, but it's uh, and what they do with 172 00:09:52,840 --> 00:09:55,200 Speaker 1: your information is but what other users might do with 173 00:09:55,240 --> 00:09:57,280 Speaker 1: that information to the extent they get access to it. 174 00:09:57,559 --> 00:09:59,240 Speaker 1: So in the case of Facebook, here, it's really a 175 00:09:59,320 --> 00:10:02,160 Speaker 1: question of Facebook, do you really know what information do 176 00:10:02,200 --> 00:10:04,840 Speaker 1: you you have? Do you really know who has access 177 00:10:04,840 --> 00:10:07,520 Speaker 1: to that info? That's an issue of internal control. And 178 00:10:07,559 --> 00:10:10,719 Speaker 1: if you deem that that information has been stolen, that's 179 00:10:10,760 --> 00:10:13,400 Speaker 1: a criminal act. And if you can find the person 180 00:10:13,520 --> 00:10:16,400 Speaker 1: or person's organization, you can actually go after them. So 181 00:10:16,440 --> 00:10:19,120 Speaker 1: it would Can it be in the same category as 182 00:10:19,120 --> 00:10:24,240 Speaker 1: a data breach from Equifax or having your personal information stolen, 183 00:10:24,320 --> 00:10:27,480 Speaker 1: let's say from a healthcare provider? Yep, Absolutely, it's the 184 00:10:27,800 --> 00:10:29,760 Speaker 1: I think it's very very similar, um. And I think 185 00:10:29,840 --> 00:10:32,439 Speaker 1: what's interesting about and why I think the Facebook is 186 00:10:32,440 --> 00:10:35,679 Speaker 1: getting such a big news today because it's it's personal information. Uh, 187 00:10:35,720 --> 00:10:39,880 Speaker 1: it's information that you're freely sharing with other people, but 188 00:10:39,960 --> 00:10:42,640 Speaker 1: you choose to to whom you're sharing that information. And 189 00:10:42,679 --> 00:10:45,240 Speaker 1: I think the the issue here is consumers aren't really 190 00:10:45,240 --> 00:10:47,960 Speaker 1: sure about what's happening to their information. And but I 191 00:10:47,960 --> 00:10:51,160 Speaker 1: think they always consumers always felt like Facebook did. Facebook 192 00:10:51,240 --> 00:10:54,080 Speaker 1: understands where the information is, what safeguards are on it, 193 00:10:54,120 --> 00:10:56,480 Speaker 1: who can get access to it. But now it appears 194 00:10:56,480 --> 00:10:59,280 Speaker 1: that Facebook maybe doesn't have the level of control over 195 00:10:59,320 --> 00:11:01,960 Speaker 1: the information that maybe we we thought. Um, this is 196 00:11:01,960 --> 00:11:04,400 Speaker 1: a breach that happened a couple of years ago. Um. 197 00:11:04,679 --> 00:11:07,319 Speaker 1: So again, it just kind of brings to the forefront, Uh, 198 00:11:07,360 --> 00:11:10,560 Speaker 1: some of the issues about personal data privacy issues, which 199 00:11:10,559 --> 00:11:13,800 Speaker 1: are very important around the world, but most notably in Europe. 200 00:11:14,000 --> 00:11:16,760 Speaker 1: The regulators are most aggressive there. Uh So again that 201 00:11:17,120 --> 00:11:19,400 Speaker 1: you know, nothing can stop these stocks. It seems like 202 00:11:19,400 --> 00:11:22,960 Speaker 1: they continue to put up extraordinary financial results. Um And 203 00:11:23,040 --> 00:11:25,040 Speaker 1: this might just be a pullback or short term pullback. 204 00:11:25,080 --> 00:11:27,400 Speaker 1: We've seen this before. But again, I think the most 205 00:11:27,440 --> 00:11:29,440 Speaker 1: bullish investors would even tell you in the back of 206 00:11:29,440 --> 00:11:31,719 Speaker 1: their minds of the biggest long term risk that they 207 00:11:31,760 --> 00:11:34,719 Speaker 1: see in some of these big tech stories is regulatory risk. 208 00:11:34,800 --> 00:11:37,240 Speaker 1: And here's just the latest example of that. So I 209 00:11:37,240 --> 00:11:38,880 Speaker 1: want to pick up on that this could just be 210 00:11:38,920 --> 00:11:42,320 Speaker 1: a buying opportunity in the long run. And uh, certainly 211 00:11:42,360 --> 00:11:47,800 Speaker 1: these shares have sleft off or shrugged off last the 212 00:11:47,880 --> 00:11:51,040 Speaker 1: last like what ten such scares that we've gotten in 213 00:11:51,120 --> 00:11:55,000 Speaker 1: this manner. But what's the What's what's the one thing, 214 00:11:55,120 --> 00:11:57,520 Speaker 1: the event, the development that you're looking for that would 215 00:11:57,720 --> 00:12:00,280 Speaker 1: show you that we really are at an inflection point. 216 00:12:00,480 --> 00:12:03,000 Speaker 1: It's if it's just I think Congress gets involved here 217 00:12:03,000 --> 00:12:05,560 Speaker 1: and if you know Congress or UM you know, brings 218 00:12:05,679 --> 00:12:07,800 Speaker 1: Mark Zuckerberg to Washington, d c. Tis to get in 219 00:12:07,840 --> 00:12:10,280 Speaker 1: front of some committee here. And so that's a turning 220 00:12:10,280 --> 00:12:14,000 Speaker 1: point Mark Zuckerberg testifies in Congress inflection point, it is, Yes, 221 00:12:14,080 --> 00:12:16,600 Speaker 1: it would be, and his performance in front of Congress 222 00:12:16,600 --> 00:12:19,640 Speaker 1: would also be you know, very closely watched because to date, 223 00:12:19,679 --> 00:12:22,920 Speaker 1: the big tech companies have generally avoided that level of 224 00:12:22,960 --> 00:12:26,280 Speaker 1: scrutiny here in the US UM for good reason, because 225 00:12:26,320 --> 00:12:28,560 Speaker 1: the tech industry has been a you know, a bell 226 00:12:28,600 --> 00:12:31,200 Speaker 1: weather industry for this country and a tremendous creative jobs 227 00:12:31,200 --> 00:12:33,880 Speaker 1: and technologies and and all the great stuff UM, and 228 00:12:33,920 --> 00:12:36,800 Speaker 1: so they've generally avoided a lot of the regulatory um 229 00:12:36,840 --> 00:12:38,720 Speaker 1: issues that some other industries have had to deal with. 230 00:12:39,240 --> 00:12:42,120 Speaker 1: But that may be changing a little bit on the margin. Again, 231 00:12:42,160 --> 00:12:44,240 Speaker 1: I think what's happening here. What's different here from say 232 00:12:44,280 --> 00:12:47,280 Speaker 1: the Google's or even the Microsoft of twenty years ago, 233 00:12:47,360 --> 00:12:51,880 Speaker 1: is that this is personal information of individuals. Um. That 234 00:12:51,960 --> 00:12:54,840 Speaker 1: you know, that type of information wasn't necessarily shared freely 235 00:12:54,920 --> 00:12:58,120 Speaker 1: or available freely with other technologies. But that's what's a 236 00:12:58,120 --> 00:13:00,880 Speaker 1: little bit different here with the social media companies. Um. 237 00:13:00,920 --> 00:13:02,240 Speaker 1: And I think that's what we're seeing here today in 238 00:13:02,280 --> 00:13:04,280 Speaker 1: the market. Well, is it just that the social media 239 00:13:04,280 --> 00:13:08,160 Speaker 1: companies now become just like as I said, Equifax, Heartland 240 00:13:08,200 --> 00:13:13,560 Speaker 1: Payment Systems, Yahoo, eBay, uh JP, Morgan Chase, t j 241 00:13:14,080 --> 00:13:17,319 Speaker 1: x Uber. I mean, all these companies have had data breaches. 242 00:13:17,400 --> 00:13:20,240 Speaker 1: The U S Office of Personnel Management, I believe they 243 00:13:20,240 --> 00:13:23,040 Speaker 1: were talking about something like personal information about twenty two 244 00:13:23,120 --> 00:13:26,280 Speaker 1: million current and former federal employees was hacked. Yeah, and 245 00:13:26,280 --> 00:13:28,920 Speaker 1: I think it very much is. And it's it's you're 246 00:13:28,960 --> 00:13:30,600 Speaker 1: gonna I think you're going to see the facebooks of 247 00:13:30,600 --> 00:13:32,720 Speaker 1: the world and the Googles of the world, uh, you know, 248 00:13:32,800 --> 00:13:37,839 Speaker 1: be more public about the investments they're making in securing data. Um. 249 00:13:38,080 --> 00:13:40,079 Speaker 1: But I think what's what's interesting here and what's I 250 00:13:40,120 --> 00:13:42,000 Speaker 1: think spooking some people is that you think about some 251 00:13:42,000 --> 00:13:45,400 Speaker 1: of the information that people put into their social networks. Um, 252 00:13:45,559 --> 00:13:48,760 Speaker 1: and uh, it's it's you know. One could argue maybe 253 00:13:48,800 --> 00:13:51,840 Speaker 1: it's not as important as your SO security number. Uh, 254 00:13:52,200 --> 00:13:54,480 Speaker 1: it could be you know, very Uh, it could be 255 00:13:54,520 --> 00:13:56,680 Speaker 1: some sensitive in information. I think that's kind of what 256 00:13:56,720 --> 00:13:58,920 Speaker 1: some people are concerned about. Just quickly, I would be 257 00:13:59,000 --> 00:14:01,560 Speaker 1: remiss if we didn't turn our attention to Apple because 258 00:14:01,760 --> 00:14:04,280 Speaker 1: there was a Bloomberg News story talking about how they're 259 00:14:04,280 --> 00:14:07,440 Speaker 1: planning to develop their own display screens and direct competition 260 00:14:08,080 --> 00:14:10,840 Speaker 1: with Samsung, replacing the ones that they had used previously 261 00:14:10,880 --> 00:14:14,000 Speaker 1: from them. Is this important to you because it seems 262 00:14:14,040 --> 00:14:17,120 Speaker 1: to build on the impression that Apple is trying to 263 00:14:17,200 --> 00:14:20,360 Speaker 1: bring as many things in house as they can. Yeah, 264 00:14:20,440 --> 00:14:21,840 Speaker 1: it is. It's. Um, you know, I spoke to on 265 00:14:21,920 --> 00:14:24,960 Speaker 1: a Trinivaston, who who covers technology for for Bloomberg Intelligence, 266 00:14:25,000 --> 00:14:27,000 Speaker 1: and he said, yeah, this is just another example of 267 00:14:27,000 --> 00:14:30,720 Speaker 1: of Apple, you know, looking to bring certain critical aspects 268 00:14:30,760 --> 00:14:36,160 Speaker 1: of their manufacturing capabilities and their technology technology capabilities in house. Um. 269 00:14:36,200 --> 00:14:38,200 Speaker 1: You know, they are such a big buyer of so 270 00:14:38,280 --> 00:14:41,400 Speaker 1: many of these components on that I think that this 271 00:14:41,480 --> 00:14:43,600 Speaker 1: is you know, part of the diversification of kind of 272 00:14:43,640 --> 00:14:47,120 Speaker 1: their supply chain. A little bit also because a technical issue. Uh. 273 00:14:47,440 --> 00:14:50,120 Speaker 1: This is according to the story, this is about something 274 00:14:50,160 --> 00:14:54,640 Speaker 1: called a micro led technology which is different than the 275 00:14:54,680 --> 00:14:58,440 Speaker 1: old bology and it's it's more challenging to produce it 276 00:14:58,560 --> 00:15:01,000 Speaker 1: is and and UH think the real question will be 277 00:15:01,040 --> 00:15:02,480 Speaker 1: for Apple over the next couple of years as they 278 00:15:02,480 --> 00:15:05,640 Speaker 1: continue to develop this technology, do they license the manufacturing 279 00:15:05,640 --> 00:15:08,480 Speaker 1: of this technology out to an existing manufacturer or do 280 00:15:08,520 --> 00:15:10,480 Speaker 1: they keep it in house. That that will be the 281 00:15:10,480 --> 00:15:12,440 Speaker 1: real decision point for them, and to the extent that 282 00:15:13,200 --> 00:15:15,640 Speaker 1: they view it as very critical to the supply chain, 283 00:15:15,680 --> 00:15:18,080 Speaker 1: they may at least initially keep it in house. I 284 00:15:18,120 --> 00:15:19,880 Speaker 1: want to thank you very much for spending time with 285 00:15:19,960 --> 00:15:23,240 Speaker 1: us as always. UH. Paul Sweeney is our US director 286 00:15:23,280 --> 00:15:26,360 Speaker 1: of Research and our senior Media and Internet analyst for 287 00:15:26,520 --> 00:15:45,360 Speaker 1: Bloomberg Intelligence, giving us an update on Facebook. A U 288 00:15:45,400 --> 00:15:49,120 Speaker 1: S Circuit Court has struck down the Labor Departments Produciery Rule, 289 00:15:49,200 --> 00:15:52,840 Speaker 1: dealing a blow to the retirement savings regulation that has 290 00:15:52,920 --> 00:15:57,080 Speaker 1: been in partial effect since last June. Here to tell 291 00:15:57,160 --> 00:15:59,320 Speaker 1: us more about this is Elliott Wise Bluethy is the 292 00:15:59,360 --> 00:16:03,680 Speaker 1: founder and the chief executive of High Tower Advisors, help 293 00:16:03,760 --> 00:16:07,160 Speaker 1: to manage about fifty billion dollars of customer assets. They're 294 00:16:07,160 --> 00:16:09,800 Speaker 1: based in Chicago. Elliott, thank you very much for being 295 00:16:09,920 --> 00:16:13,200 Speaker 1: with us. Just a quick review. The Labor Department has 296 00:16:13,320 --> 00:16:17,040 Speaker 1: not responded to a request for comment about this. And 297 00:16:17,080 --> 00:16:19,320 Speaker 1: this was a split decision in the first in the 298 00:16:19,400 --> 00:16:22,720 Speaker 1: Fifth Circuit Court, and it talks about how this rule 299 00:16:22,760 --> 00:16:26,720 Speaker 1: requiring managers a pension fund money to be fiduciaries. The 300 00:16:26,840 --> 00:16:30,560 Speaker 1: rule they said is unreasonable. Now that that may be 301 00:16:30,720 --> 00:16:34,240 Speaker 1: legally unreasonable, but you have your your own thoughts about 302 00:16:34,280 --> 00:16:38,880 Speaker 1: whether the rule itself is worthwhile for investors. Tell us 303 00:16:38,920 --> 00:16:43,440 Speaker 1: your perspective the broader the broader context here is why 304 00:16:43,520 --> 00:16:47,080 Speaker 1: we're even having a discussion about whether or not the 305 00:16:47,160 --> 00:16:50,880 Speaker 1: client's interest should be first or not. And the fact 306 00:16:50,960 --> 00:16:53,720 Speaker 1: that there's a discussion that's been going on, frankly for years. 307 00:16:54,520 --> 00:16:57,680 Speaker 1: You know, it's just an example of how you can 308 00:16:57,720 --> 00:17:01,320 Speaker 1: have different commercial influences from Wall Street and big banks. 309 00:17:01,800 --> 00:17:07,160 Speaker 1: You can have a relatively ineffective regulatory judicial system that 310 00:17:07,240 --> 00:17:10,960 Speaker 1: allows some of those interests to get momentum and obstruct 311 00:17:11,160 --> 00:17:15,720 Speaker 1: a very simple concept that there should be a single standard, 312 00:17:15,960 --> 00:17:19,800 Speaker 1: uniform duty that when an individual interacts with a financial 313 00:17:19,840 --> 00:17:22,440 Speaker 1: advisor the same way you interact with an accountant, or 314 00:17:22,640 --> 00:17:26,120 Speaker 1: you interact with a doctor, you have a reasonable expectation 315 00:17:26,240 --> 00:17:30,520 Speaker 1: that that service provider is putting your interests first, and 316 00:17:30,600 --> 00:17:35,440 Speaker 1: any confusion or discussion around that should suggest that somebody 317 00:17:35,480 --> 00:17:38,639 Speaker 1: else in the mix has an interest, and that's a 318 00:17:38,640 --> 00:17:41,719 Speaker 1: commercial interest, that's that's going to come in front of 319 00:17:41,760 --> 00:17:44,399 Speaker 1: the client's interest. And we would find that to be 320 00:17:44,640 --> 00:17:48,240 Speaker 1: very upsetting if this was a medical discussion. You know, 321 00:17:48,320 --> 00:17:50,600 Speaker 1: if you were if you and I were talking about 322 00:17:50,600 --> 00:17:53,600 Speaker 1: a ruling that said a doctor, you know, had to 323 00:17:53,600 --> 00:17:57,160 Speaker 1: follow the Hippocratic oath, you know, Monday, Tuesday, Wednesday, and Thursday, 324 00:17:57,160 --> 00:18:00,359 Speaker 1: but on Fridays they could represent a drug company ways 325 00:18:00,400 --> 00:18:03,639 Speaker 1: and put put their own economic interest first and not 326 00:18:03,760 --> 00:18:06,680 Speaker 1: the patient's interest first. We wouldn't we wouldn't have an argument, 327 00:18:06,720 --> 00:18:09,320 Speaker 1: But in our industry, we're having that argument, Elliott, Just 328 00:18:09,359 --> 00:18:12,560 Speaker 1: to push back a little. One thing that financial advisers 329 00:18:12,560 --> 00:18:15,840 Speaker 1: have argued is that they are unable to sometimes give 330 00:18:16,400 --> 00:18:19,680 Speaker 1: the advice that they think is best to clients under 331 00:18:19,680 --> 00:18:23,679 Speaker 1: the new rule because there is something more complicated about it, 332 00:18:23,760 --> 00:18:26,680 Speaker 1: or it might be a higher fee type of offering, 333 00:18:27,040 --> 00:18:29,800 Speaker 1: but you know, it might be lucrative down the line, 334 00:18:29,800 --> 00:18:32,399 Speaker 1: but they don't want to be even uh, potentially seen 335 00:18:32,600 --> 00:18:35,439 Speaker 1: as having a whiff of a conflict of interest. How 336 00:18:35,440 --> 00:18:38,000 Speaker 1: would you respond to that, Yeah, I think I think 337 00:18:38,040 --> 00:18:42,360 Speaker 1: that's a little bit of a of a disingenuous argument. 338 00:18:43,040 --> 00:18:46,159 Speaker 1: I think that if you have a service provider whose 339 00:18:46,240 --> 00:18:49,040 Speaker 1: job it is to put the client's interrust first, and 340 00:18:49,080 --> 00:18:53,240 Speaker 1: you're getting compensated as a service provider, and you're doing 341 00:18:53,280 --> 00:18:55,800 Speaker 1: the best job that you can, and you're educated and 342 00:18:55,840 --> 00:18:59,200 Speaker 1: you're trained, and you're focused on what you believe is 343 00:18:59,240 --> 00:19:03,040 Speaker 1: in your clients best interest, that's a duty that a 344 00:19:03,560 --> 00:19:07,320 Speaker 1: thoughtful service provider should take on. It's no different than 345 00:19:07,400 --> 00:19:10,919 Speaker 1: when an accountant reads the new rules for for an I. R. 346 00:19:11,040 --> 00:19:14,240 Speaker 1: S ruling, or interprets how to handle your taxes, or 347 00:19:14,280 --> 00:19:17,720 Speaker 1: the way of a medical professional handles the complexity around 348 00:19:17,720 --> 00:19:22,080 Speaker 1: giving medical advice. In the business of giving advice, you 349 00:19:22,200 --> 00:19:27,000 Speaker 1: have to shoulder the responsibility of thinking about how does 350 00:19:27,080 --> 00:19:30,800 Speaker 1: your advice impact the clients. And in the areas of 351 00:19:30,880 --> 00:19:34,560 Speaker 1: money and finance, there's a high degree of speculation because 352 00:19:34,600 --> 00:19:37,600 Speaker 1: obviously the markets and the and the way you interact 353 00:19:37,640 --> 00:19:41,159 Speaker 1: with money can be highly speculative. But that shouldn't undermine 354 00:19:41,280 --> 00:19:45,240 Speaker 1: the responsibility that the service provider has to put the 355 00:19:45,359 --> 00:19:49,800 Speaker 1: client first, not the service provider's own economic interest. And 356 00:19:49,840 --> 00:19:52,760 Speaker 1: that's I think where this argument gets a little bit 357 00:19:52,800 --> 00:19:56,960 Speaker 1: muddled is if you're not putting the client's interests first, 358 00:19:57,480 --> 00:20:01,160 Speaker 1: then whose interests are first? And if it's your own 359 00:20:01,160 --> 00:20:04,960 Speaker 1: interest or it's your employer's interest because of conflicts of interest, 360 00:20:05,440 --> 00:20:07,359 Speaker 1: then we're getting to the root of the matter, which 361 00:20:07,400 --> 00:20:11,400 Speaker 1: is not allowing the client to come first, instead allowing 362 00:20:11,440 --> 00:20:14,320 Speaker 1: a commercial interest of the business to come first. And 363 00:20:14,359 --> 00:20:17,520 Speaker 1: that's that's what we started High Tower in two thousand 364 00:20:17,600 --> 00:20:20,840 Speaker 1: and seven under the very simple premise that the client's 365 00:20:20,880 --> 00:20:23,760 Speaker 1: interests should come first, period and there shouldn't be an 366 00:20:23,840 --> 00:20:26,640 Speaker 1: argument about it. And and Eliott, just to be even 367 00:20:26,880 --> 00:20:30,800 Speaker 1: perhaps clear about this, it is not necessarily about whether 368 00:20:30,840 --> 00:20:35,600 Speaker 1: a specific investment is more or less expensive than another investment. 369 00:20:35,600 --> 00:20:38,359 Speaker 1: All of that could be part of it, but it's 370 00:20:38,480 --> 00:20:41,560 Speaker 1: it's just being upfront about what you think is in 371 00:20:41,560 --> 00:20:45,159 Speaker 1: the client's best interest. Here's how much I may or 372 00:20:45,160 --> 00:20:49,120 Speaker 1: may not make because I'm recommending it or not recommending it, 373 00:20:49,440 --> 00:20:52,000 Speaker 1: and this is how I get compensated. Is that accurate 374 00:20:52,200 --> 00:20:54,879 Speaker 1: as exactly right? Tim So if the if the client 375 00:20:55,200 --> 00:20:58,520 Speaker 1: is bearing the cost of the investment, which in a 376 00:20:58,560 --> 00:21:04,800 Speaker 1: fiduciary relationship, whether it's a very modestly priced a product 377 00:21:04,880 --> 00:21:07,080 Speaker 1: like an et F or a product that may have 378 00:21:07,200 --> 00:21:10,600 Speaker 1: higher fees like a hedge fund, the cost of that 379 00:21:10,720 --> 00:21:15,080 Speaker 1: investment in a fiduciary relationship is borne by the client, 380 00:21:15,200 --> 00:21:18,560 Speaker 1: and the financial advisor gives advice around whether or not 381 00:21:19,160 --> 00:21:22,960 Speaker 1: the the the appropriateness of that product makes sense. But 382 00:21:23,280 --> 00:21:27,240 Speaker 1: the financial advisor is not getting compensated as part of 383 00:21:27,280 --> 00:21:30,960 Speaker 1: the underlying cost of the product unless there's a conflict 384 00:21:31,000 --> 00:21:33,360 Speaker 1: of interest, and that's that's what where where people are 385 00:21:33,359 --> 00:21:37,359 Speaker 1: not are not having candid and open conversations. Elliott wise Blue, 386 00:21:37,400 --> 00:21:39,120 Speaker 1: thank you so much for joining us, founder and chief 387 00:21:39,119 --> 00:21:42,920 Speaker 1: executive officer of High Tower Advisors, overseeing about fifty dollars 388 00:21:43,080 --> 00:21:59,919 Speaker 1: from Chicago after spending a few months on a space 389 00:22:00,000 --> 00:22:03,440 Speaker 1: ships circling around the Earth and perhaps heading towards Mars. 390 00:22:03,440 --> 00:22:06,200 Speaker 1: Susanne Barton joins us here in our eleven three of studios. 391 00:22:06,200 --> 00:22:09,840 Speaker 1: She's a commodity reporter for Bloomberg News, and she just 392 00:22:10,080 --> 00:22:14,240 Speaker 1: wrote a story that feels like it is straight out 393 00:22:14,320 --> 00:22:17,719 Speaker 1: of Star Trek, and perhaps she hasn't really been traveling 394 00:22:17,720 --> 00:22:22,040 Speaker 1: around the world in a spaceship. But this story sort 395 00:22:22,080 --> 00:22:24,640 Speaker 1: of seems like you have Susanna lay it out. Why 396 00:22:24,720 --> 00:22:31,720 Speaker 1: are people looking to mine asteroids high Um? Well there 397 00:22:31,800 --> 00:22:34,320 Speaker 1: everyone knows that about you know, Elon Muskin and Jeff 398 00:22:34,320 --> 00:22:37,399 Speaker 1: Bezosen and Branson, and they're spending tons of money on 399 00:22:37,400 --> 00:22:41,320 Speaker 1: on space travel. But there was another emerging space industry 400 00:22:41,359 --> 00:22:44,119 Speaker 1: and people actually think that this will allow them to 401 00:22:44,160 --> 00:22:47,719 Speaker 1: make tons of money. And it's it's mining asteroids in space. 402 00:22:47,760 --> 00:22:51,919 Speaker 1: It's mining asteroids for for two things. One water um, 403 00:22:52,000 --> 00:22:54,680 Speaker 1: which is very valuable when you're in space because it 404 00:22:54,920 --> 00:22:57,639 Speaker 1: helps to make rocket fuel. And the other reason is 405 00:22:57,800 --> 00:23:02,760 Speaker 1: for metals, metals that we mind here on Earth. Um. 406 00:23:02,920 --> 00:23:05,200 Speaker 1: Some people think that at some point we're gonna run 407 00:23:05,280 --> 00:23:09,840 Speaker 1: low on iron or nickel or cobalt at some point 408 00:23:09,880 --> 00:23:13,320 Speaker 1: in the future, and so the question is, well, where 409 00:23:13,320 --> 00:23:16,399 Speaker 1: do we get the next stock of these metals? And 410 00:23:16,440 --> 00:23:19,439 Speaker 1: people think we can find them on asteroids. And if 411 00:23:19,440 --> 00:23:22,640 Speaker 1: they're able this niche industry, if they're able to do this, 412 00:23:23,119 --> 00:23:25,800 Speaker 1: then they believe that it's going to make them tons 413 00:23:25,840 --> 00:23:30,280 Speaker 1: of money. What is the Osiris rex Uh spacecraft and 414 00:23:30,320 --> 00:23:33,440 Speaker 1: how does this figure into the story. Well, the Osiris 415 00:23:33,480 --> 00:23:38,119 Speaker 1: Rex spacecraft. It's um, it's it's it's a mission that's 416 00:23:38,160 --> 00:23:42,640 Speaker 1: being overseen by by NASA, and it's really going up 417 00:23:42,680 --> 00:23:46,560 Speaker 1: to this asteroid called Benu, and it's it's one of 418 00:23:46,600 --> 00:23:49,960 Speaker 1: the first that's actually first US missions that's actually going 419 00:23:50,040 --> 00:23:54,359 Speaker 1: to go there. Um. They're gonna test four samples off 420 00:23:54,440 --> 00:23:59,320 Speaker 1: off water and potentially metal on on this on this asteroid, 421 00:23:59,640 --> 00:24:03,560 Speaker 1: and the spacecraft is actually gonna bring this sample back 422 00:24:03,600 --> 00:24:07,480 Speaker 1: to Earth in about so um in a couple of months. 423 00:24:07,520 --> 00:24:10,000 Speaker 1: In a few months, it'll start taking pictures of the 424 00:24:10,040 --> 00:24:12,800 Speaker 1: asteroid because it'll be moving closer to it, and then 425 00:24:12,840 --> 00:24:17,080 Speaker 1: it will arrive um uh sometime later this year and 426 00:24:17,200 --> 00:24:21,240 Speaker 1: going into next year. So logistically, I'm just trying to 427 00:24:21,280 --> 00:24:26,360 Speaker 1: wrap my head around the complexity of mining a moving, 428 00:24:26,960 --> 00:24:32,280 Speaker 1: hurdling rock and who knows what else object through space. 429 00:24:32,720 --> 00:24:35,960 Speaker 1: I mean, how does that happen? How do they do it? Well, 430 00:24:36,080 --> 00:24:39,679 Speaker 1: they take the spacecraft, Well, the spacecraft goes to the 431 00:24:39,720 --> 00:24:45,920 Speaker 1: asteroid and it extends these long arms and it's it's 432 00:24:45,960 --> 00:24:48,960 Speaker 1: sort of it takes literally seconds, just a few seconds, 433 00:24:49,040 --> 00:24:52,880 Speaker 1: to get tons of the different samples of materials from 434 00:24:53,080 --> 00:24:55,800 Speaker 1: the asteroid. Then it puts it in a capsule, it 435 00:24:55,880 --> 00:24:58,000 Speaker 1: sort of locks it up and then in a couple 436 00:24:58,040 --> 00:25:01,040 Speaker 1: of years it'll bring it back to Earth. Scientists will 437 00:25:01,080 --> 00:25:03,280 Speaker 1: take a look at it and and study it to 438 00:25:03,359 --> 00:25:06,680 Speaker 1: see what's really on that asteroid. Um. They do think, 439 00:25:06,800 --> 00:25:09,199 Speaker 1: you know, a lot of these asteroids have metal at 440 00:25:09,240 --> 00:25:14,119 Speaker 1: least um, iron at least sign and and they certainly 441 00:25:14,160 --> 00:25:16,560 Speaker 1: have water. So they'll be doing more tests to figure 442 00:25:16,600 --> 00:25:19,560 Speaker 1: out where they go from there. Now the effort is 443 00:25:19,840 --> 00:25:23,320 Speaker 1: uh you mentioned this, This effort is going to return 444 00:25:23,400 --> 00:25:26,240 Speaker 1: some of the samples to Earth. But I thought it 445 00:25:26,280 --> 00:25:29,520 Speaker 1: was interesting that a lot of the focus is on 446 00:25:29,840 --> 00:25:34,720 Speaker 1: using these raw materials but keeping them in space, and 447 00:25:34,800 --> 00:25:40,400 Speaker 1: that would dovetail with missions to Mars and also keeping 448 00:25:41,240 --> 00:25:45,960 Speaker 1: humans in long long duration spaceflight exactly. So it's it's 449 00:25:45,960 --> 00:25:49,800 Speaker 1: really an emerging industry and people these companies will actually 450 00:25:49,840 --> 00:25:54,520 Speaker 1: at some point be manufacturing UM different work tools, UM 451 00:25:54,920 --> 00:25:59,879 Speaker 1: probably UH satellite parts and antennas in in space, so 452 00:26:00,040 --> 00:26:02,400 Speaker 1: they really at some point will not have to come 453 00:26:02,440 --> 00:26:05,119 Speaker 1: to Earth to make these UH antenna's. They will be 454 00:26:05,160 --> 00:26:07,600 Speaker 1: able to make them up there. There. There's a company 455 00:26:07,720 --> 00:26:10,320 Speaker 1: there and now that has sort of what's called a 456 00:26:10,400 --> 00:26:14,840 Speaker 1: three D printer that actually prints the different parts of 457 00:26:14,840 --> 00:26:19,560 Speaker 1: of of satellites of UM antennas for use there in space. 458 00:26:19,760 --> 00:26:22,560 Speaker 1: Who's financing this since it seems like the returns won't 459 00:26:22,560 --> 00:26:26,240 Speaker 1: be felt for her realized rather for perhaps I don't 460 00:26:26,240 --> 00:26:30,240 Speaker 1: know what, twenty years right, um So, it's a lot 461 00:26:30,280 --> 00:26:35,280 Speaker 1: of private equity money. Um there's one company called Planetary Resources, 462 00:26:35,320 --> 00:26:38,840 Speaker 1: there's another called the Deep Space Industries, and they do 463 00:26:39,040 --> 00:26:44,280 Speaker 1: have um financing from Branson and even that there's a 464 00:26:44,320 --> 00:26:47,480 Speaker 1: tiny nation in Europe which wants to be the space 465 00:26:47,600 --> 00:26:50,879 Speaker 1: hub of Europe called Luxembourg, and they've put tons of 466 00:26:50,920 --> 00:26:54,240 Speaker 1: money into doing this. So you won't find the typical 467 00:26:54,320 --> 00:26:58,399 Speaker 1: institutional investor chasing down these companies. Maybe through private equity 468 00:26:58,400 --> 00:27:02,160 Speaker 1: firm Well yeah maybe that. Um So, so that's where 469 00:27:02,200 --> 00:27:04,760 Speaker 1: primarily the money is coming from. The money it's also 470 00:27:04,760 --> 00:27:10,280 Speaker 1: coming from ten Cent, Yeah, yeah, that Chinese billionaire. Yes, 471 00:27:10,320 --> 00:27:12,960 Speaker 1: he certainly has been putting some effort and some money 472 00:27:12,960 --> 00:27:16,439 Speaker 1: into this. And who do we know whether this is 473 00:27:16,760 --> 00:27:20,879 Speaker 1: currently going to be who is a launch facility for this? 474 00:27:20,960 --> 00:27:23,479 Speaker 1: In other words, you've got to send these things into space. 475 00:27:23,600 --> 00:27:26,280 Speaker 1: Is this going to be SpaceX or do we know 476 00:27:26,280 --> 00:27:29,879 Speaker 1: whether it's going to be United Launch Alliance? Um SpaceX 477 00:27:30,320 --> 00:27:35,440 Speaker 1: primarily well people this little emerging space industry. They expect 478 00:27:35,480 --> 00:27:38,800 Speaker 1: that SpaceX will actually be very very helpful in in 479 00:27:38,880 --> 00:27:42,520 Speaker 1: creating this new ecosystem in space because they will be 480 00:27:42,560 --> 00:27:46,439 Speaker 1: carrying cargo and human beings to space, and you know, 481 00:27:46,560 --> 00:27:49,320 Speaker 1: they do expect that they'll be doing more frequently as 482 00:27:49,359 --> 00:27:51,600 Speaker 1: the years go by. Thanks very much, as susan part 483 00:27:51,600 --> 00:27:55,080 Speaker 1: in our commodities reporter for Bloomberg News. Fascinating story and 484 00:27:55,119 --> 00:27:58,600 Speaker 1: interesting development. When it comes to mining, you'll be able 485 00:27:58,640 --> 00:28:02,720 Speaker 1: to mind things in space and they might even stay there. Well. 486 00:28:05,119 --> 00:28:07,679 Speaker 1: Thanks for listening to the Bloomberg P and L podcast. 487 00:28:08,000 --> 00:28:11,879 Speaker 1: You can subscribe and listen to interviews at Apple Podcasts, SoundCloud, 488 00:28:12,000 --> 00:28:15,480 Speaker 1: or whatever podcast platform you prefer. I'm pim Fox. I'm 489 00:28:15,520 --> 00:28:19,520 Speaker 1: on Twitter at pim Fox. I'm on Twitter at Lisa Abramo. 490 00:28:19,640 --> 00:28:22,239 Speaker 1: It's one before the podcast. You can always catch us 491 00:28:22,280 --> 00:28:23,840 Speaker 1: worldwide on Bloomberg Radio.