Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happened. S
Speaker 1: Bloomberg Business Week with Carol Messier and Bloomberg Quick Takes
Speaker 1: Tim Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the
Speaker 1: weekend edition of Bloomberg Business Week. Are double issue centers
Speaker 1: around big tech and no bigger story this week in
Speaker 1: the world of technology, really the global corporate world than
Speaker 1: Cheryl Sandberg announcing she will soon step down as the
Speaker 1: chief operating officer of Meta Platforms. We're gonna get to
Speaker 1: that in just a moment. We're also talking s g
Speaker 1: and combating climate change with the CEO of the industrial
Speaker 1: giant Johnson Controls on the push to decarbonized buildings. It's
Speaker 1: a green world or trying to be a green world.
Speaker 1: We're all just living in it, all right. Plus everything
Speaker 1: you need to know about what's sure to be a
Speaker 1: busy and costly summer travel season. All of that to come.
Speaker 1: We begin, though, with a story you saw and heard
Speaker 1: about first on Bloomberg. Cheryl Sandberg will leave her post
Speaker 1: as met as CEO in the full and few journalists
Speaker 1: know her better than Bloomberg Technology host Emily Chang. Emily
Speaker 1: joined us immediately with her reaction. I have been waiting
Speaker 1: for this moment for years. I mean I you just
Speaker 1: had to know that she has been at the company
Speaker 1: for a really long time. She has all of these
Speaker 1: other interests and ambitions, all of which we know about, right,
Speaker 1: and she's getting married, she's got five kids now. Um.
Speaker 1: I just had a sense that this moment was coming,
Speaker 1: even though I asked her many times and she always
Speaker 1: denied it. Um. And I was talking about this with
Speaker 1: with Kurt Wagner as well. Um, you know, this was
Speaker 1: kind of our first instinct, but we didn't know for sure,
Speaker 1: and it was you know, it's the end of a
Speaker 1: Silicon valierra. But why now, Well, of course we can speculate.
Speaker 1: I will tell you what she says about why now.
Speaker 1: She's been at this job for fourteen years. She thought
Speaker 1: this was going to be a five year job, and
Speaker 1: she wants to spend her time doing other things. She
Speaker 1: joked that was she has set it was the honor
Speaker 1: and privilege of a lifetime to do this job, but
Speaker 1: also joked that it was not the most manageable job
Speaker 1: that you could imagine. And I will add my own
Speaker 1: thoughts about why now you know, Facebook is in the
Speaker 1: middle of making this huge pivot to the metaverse, which
Speaker 1: means really significantly evolving their business model, and that's her job.
Speaker 1: But it says so much about like we're all trying
Speaker 1: to figure out what this. I mean, this is a
Speaker 1: big pivot, right, So not only did they change the
Speaker 1: name to meta, but they are evolving their products and
Speaker 1: they're going to have to evolve their business. What is
Speaker 1: the business model in the metaverse? And and they don't
Speaker 1: know the answer to that question yet. Cheryl s Hamberg
Speaker 1: doesn't know the answer to that question yet. She said
Speaker 1: she sees the long term opportunity and that she believes
Speaker 1: in the company as much as she ever did, but
Speaker 1: that they don't. Essentially, in so many words, they don't
Speaker 1: know yet. Okay, So what does it mean for Meta
Speaker 1: Platforms with Javier or Levan coming in, who was the
Speaker 1: chief growth officer Meta Platforms. First of all, it means
Speaker 1: Cheryl's not going to be there, and she will be
Speaker 1: on the board and I think her you know, impact
Speaker 1: on the company will certainly loom large. But I'm sure
Speaker 1: there'll be some type of leadership vacuum given that she
Speaker 1: is leaving, But it seems like Facebook has over the
Speaker 1: years been very focused on building out a team, building
Speaker 1: a succession plan, and they're kind of reorganizing the roles
Speaker 1: of it. So even though um Hobby will become the CEO,
Speaker 1: he's not going to have oversight over all of the
Speaker 1: very same things she had oversight of. Nick Clegg had
Speaker 1: already taken on policy and comms, which had lived under
Speaker 1: Cheryl for years. Then you've got Andrew Bosworth the CTO,
Speaker 1: Chris Cox, the Chief Product officer, and of course Mark Zuckerberg.
Speaker 1: And out of all of those people, only Nick Clegg
Speaker 1: is kind of a recent joiner. These are all long
Speaker 1: time Facebook executives that know the history, you know, know
Speaker 1: what Mark Zuckerberg wants, know how to work with him,
Speaker 1: and they're now in charge of figuring out where this
Speaker 1: company is going. You know, people talk about her as
Speaker 1: one of the most influential women in the world. She's
Speaker 1: one of the most influential people. She has become one
Speaker 1: of the influential people in the world, and definitely in
Speaker 1: business and obviously Silicon Valley she built and scaled the
Speaker 1: business models of Google and Facebook, two of the biggest
Speaker 1: companies in the world today. That is huge and not
Speaker 1: everyone agrees with how they did it, but you know,
Speaker 1: these are companies ranking in billions and billions of dollars
Speaker 1: and that is in large part because of Cheryl Samberg,
Speaker 1: which makes me wonder. She's young. Yeah, she could do.
Speaker 1: She's getting married, she's got it a chapter to write.
Speaker 1: When I heard that there was going to be possibly
Speaker 1: some news, I thought the same thing. Okay, she's done,
Speaker 1: but I'm like, is she gonna go into politics? Like
Speaker 1: is like, so, how do you think about it? Someone
Speaker 1: who has followed her trajectory, has had numerous conversations and
Speaker 1: has you know, incredible insight into her, Like, how do
Speaker 1: you think about what she might and again it speculation. Yes,
Speaker 1: so well, she just told me that's very unlike a
Speaker 1: politics or another role in business, that she wants to
Speaker 1: spend time on philanthropy, her foundation, women's issues, time with
Speaker 1: her family. You know. She also said never say never,
Speaker 1: and I guess I would say never say never. I
Speaker 1: do think that a role in politics, at least an
Speaker 1: elected role, is going to be is going to be
Speaker 1: very difficult for her given all of the controversies that
Speaker 1: that Facebook has weathered, could we see her in an
Speaker 1: appointed role in a democratic administration potentially? Um, But my
Speaker 1: guess is she she wants to have a more manageable
Speaker 1: lifestyle and for for for fourteen years and then out
Speaker 1: on Google before at she's been sprinting. I do wonder though,
Speaker 1: if I mean, given all of her interests that she
Speaker 1: has outside of Facebook and within meta platforms, being on
Speaker 1: the company's board, if she is going to have a
Speaker 1: more manageable life, because she's everywhere she is, she is ambitious.
Speaker 1: This is not retirement for Sheryl Sandberg. She wrote not one,
Speaker 1: but two books while she was CEO of Facebook. So
Speaker 1: and her own challenges while she was at Facebook two right,
Speaker 1: she that that people other people in that situation would
Speaker 1: have said, now is not the time for me to
Speaker 1: be working. I I can't imagine what she went through
Speaker 1: when when Dave died, And you know, I know that
Speaker 1: going back to work was part of what kind of
Speaker 1: helped her get past it and helped her keep keep going.
Speaker 1: Was was doing that job every day. But I mean,
Speaker 1: let's be honest, she had a pretty important job. You
Speaker 1: can't just check out of being the CEO of Facebook
Speaker 1: UM for an extended period of time. UM, and so
Speaker 1: you know, maybe maybe she you know, she never got
Speaker 1: a break. That was Bloomberg Technology host Emily Chang. Coming
Speaker 1: up more on Cheryl Sandberg and the corporate space, losing
Speaker 1: a prominent leader, one of the few women in the
Speaker 1: c suite. We're speaking with the Milk And Institute executive
Speaker 1: and former Massachusetts Lieutenant Governor Carrie Healy. You're listening to
Speaker 1: Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes. Tim Stinovik
Speaker 1: from Bloomberg Radio. Tim and I were at the Milken
Speaker 1: Institute Global Conference in Beverly Hills back in May. They
Speaker 1: were celebrating twenty five years of the conference. Now the gathering,
Speaker 1: the annual gathering always a mixture of top financial names
Speaker 1: along with those that are tackling the big macro, social
Speaker 1: and political issues of the day. This past week, we
Speaker 1: spoke with Carrie Healy, president of the Milk And Center
Speaker 1: for Advancing the American Dream, also the former president of
Speaker 1: Babson College, former Massachusetts Lieutenant governor and a member of
Speaker 1: the Council on Foreign Relations, Carol. Remember we began by
Speaker 1: asking her all about another prominent female leader that's soon
Speaker 1: to be former Chief Operating Officer of Meta Platforms, Cheryl Sandberg.
Speaker 1: My my guess is that she'll have another reincarnation and
Speaker 1: and come come forward and do something very interesting in
Speaker 1: the future. One of the things that I've noticed about
Speaker 1: women now is that they have longer workspans, and so
Speaker 1: you can really afford to have many different types of
Speaker 1: career over the course of time. And I'll just be
Speaker 1: looking forward to seeing what she does next. And forgive
Speaker 1: me because I want to go more into terms of
Speaker 1: the straight line of what you guys are doing at
Speaker 1: the center. But I gotta tell you, when I think
Speaker 1: about the American dream, and this is hard for me
Speaker 1: and I think many Americans to get away from. It
Speaker 1: doesn't conjure up a picture of young innocent children being
Speaker 1: killed by guns. I ask you, as a former lieutenant
Speaker 1: governor of a well known state and who worked on
Speaker 1: some really tough issues, whether it was sexual abuse, children abuse,
Speaker 1: you know how, and you did this in a bipartisan way.
Speaker 1: Why is it that we cannot get something more constructively
Speaker 1: done in a bipartisan way. When it comes to gun legislation, well, well,
Speaker 1: first and foremost, it is absolutely heartbreaking I think for
Speaker 1: anyone you know, to to witness this and to imagine
Speaker 1: this happening uh here in our country again and again.
Speaker 1: So it is a horrifying spectacle for us to deal with.
Speaker 1: And when I was Lieutenant governor and I served with
Speaker 1: mintra Omnie, we were able to actually bring both um
Speaker 1: the gun advocates and also the gun control advocates together
Speaker 1: on some gun control legislation. And it was not easy,
Speaker 1: but I think that it was extremely important that some
Speaker 1: common sense regulations were put into place at the same time,
Speaker 1: some some fairness was you know, also put into place
Speaker 1: around how applications are handled. Massachusetts is very unique in
Speaker 1: how they deal with gun licensing in that it's actually local.
Speaker 1: The local police chiefs get to decide who gets a gun,
Speaker 1: and I think that actually makes a lot of sense
Speaker 1: because that's where people are best known in their own communities,
Speaker 1: and so we had a little bit of a leg
Speaker 1: up there. We could show respect to local officials, but
Speaker 1: we also needed to control some of the guns that
Speaker 1: we see involved in in some of the worst crimes now.
Speaker 1: But do we have to get to a point? And
Speaker 1: you know, certainly our allies are saying, this is a
Speaker 1: this is a US problem. It's not a developed world problem.
Speaker 1: It's a United States of America problem. I mean, most
Speaker 1: people on a logical level would say, why do we
Speaker 1: need automatic firearms out there? Um, why can't we just
Speaker 1: take them away like we do in other countries. Do
Speaker 1: you see that as a as a you know, violation
Speaker 1: of rights? And forgive me for going there, But I
Speaker 1: just because you fine, I mean, it's it's an incredibly
Speaker 1: important issue, and that was the decision that that we
Speaker 1: made in Massachusetts to limit those those high capacity UH
Speaker 1: munitions and guns. But but I think that what I'd
Speaker 1: really like to see is an honest debate about this,
Speaker 1: an honest one UH that that doesn't have to do
Speaker 1: with politics. And it upsets me terribly to imagine that
Speaker 1: this could be politicized in the upcoming UH cycle of elections.
Speaker 1: So I think now is one of those moments where
Speaker 1: people have really gotten complete leave, fed up with the
Speaker 1: with the repetitive nature of this horror, and and hopefully
Speaker 1: good people on both sides will come together. I know
Speaker 1: that there is a growing number of people in the
Speaker 1: middle right now in the Senate and in the House UM,
Speaker 1: whether it's the problem Solvers Caucus or or the loose
Speaker 1: association of of people who have more moderate and collaborative
Speaker 1: values in the Senate, and hopefully, uh, they will come
Speaker 1: together and and promote a reasonable compromise. Well, given your
Speaker 1: experience and what you were able to accomplish as lieutenant
Speaker 1: governor of Massachusetts, how would you advise Democrats and Republicans
Speaker 1: to actually come to some sort of meaningful conclusion here?
Speaker 1: In politics in general, I think right now is a
Speaker 1: moment where people need to put their own re election aside. Uh.
Speaker 1: There is too much focus on each person's personal career
Speaker 1: and not enough on the good of the country and
Speaker 1: the good of the people. And so we need more
Speaker 1: people to have genuine courage and step up and be
Speaker 1: leaders in the true sense of the word and not
Speaker 1: be looking to that next election cycle, and to be
Speaker 1: able to go back to their constituents and say I
Speaker 1: did what was right. I did what was right for
Speaker 1: you and your children, and if you would like to
Speaker 1: not re eleuct me, there will be others to serve.
Speaker 1: Carrie Healy, she's president of the Milk and Center for
Speaker 1: Advancing the American Dream. She was former president at Babson College,
Speaker 1: former Massachusetts Lieutenant Governor, member of the Council on Foreign Relations.
Speaker 1: She really has seen the world from so many different angles.
Speaker 1: Talked to us a bit more about the Milk and Center.
Speaker 1: You know, how do we need to think about getting
Speaker 1: to the American dream going forward for more now? One
Speaker 1: of the ways that I think we should be thinking
Speaker 1: about it is how do we help people reach their
Speaker 1: full potential? How do we remove the obstacles that are
Speaker 1: in the way. What's fascinating is there was a Mackenzie
Speaker 1: study recently um that said there are thirty million America
Speaker 1: out there who have the skills to be making seventy
Speaker 1: more income. No imagine that se more income, but they
Speaker 1: can't because they don't have the degree necessary to get
Speaker 1: that job. And a lot of employers have simply said,
Speaker 1: it's going to be easier for me to find well
Speaker 1: qualified people for my job if I make a bachelor's
Speaker 1: degree necessary, if I just make it a qualification, right
Speaker 1: carry Tim and I are saying in the background, were like,
Speaker 1: college is telling you, Jerry, and you were the former
Speaker 1: president of Babson College, would you did you come to
Speaker 1: this conclusion recently did you come to this Would you
Speaker 1: have said the same thing will you were the president
Speaker 1: of Babson Was there something that that changed your opinion
Speaker 1: about this. I think I'm just starting to see in
Speaker 1: the last year, so the statistics, you know, I've started
Speaker 1: to dig into what are the what are the obstacles
Speaker 1: for people achieving the American dream? And I was really
Speaker 1: lucky at Babson College because it was a business school.
Speaker 1: It was an undergraduate, undergraduate business school. So the kids
Speaker 1: come in there, the young people coming there, um were
Speaker 1: they wanted to go into business, They wanted to be entrepreneurs,
Speaker 1: and they got to start their first company in the
Speaker 1: first year and and have that experience. And so they
Speaker 1: went just charging out into the workforce and either started
Speaker 1: their own companies or got jobs immediately of them get jobs,
Speaker 1: you know, in the first six months after graduation. So
Speaker 1: I didn't have to worry about them. I actually didn't
Speaker 1: even have to worry about looking their parents in the
Speaker 1: eye and saying, you know what, this is a good investment.
Speaker 1: You should go ahead and pay this tuition. Because I
Speaker 1: knew for a fact that it was going to pay off.
Speaker 1: That was Carrie Healey, President of the Milk and Center
Speaker 1: for Advancing the American Dream. Still ahead on Bloomberg Business Week,
Speaker 1: markets are going through what maybe the biggest mood shift
Speaker 1: we've seen since the financial crisis. Some may even call
Speaker 1: it a vibe ship. It's happening, and some of Wall
Speaker 1: Street's most high profile hedge fund managers are among the victims.
Speaker 1: Will explain next. This is Bloomberg Broadcasting from the financial
Speaker 1: capital of the World Bloomberg eleven Frio in New York
Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one oh
Speaker 1: six one does San Francisco, Bloomberg nine sixty to the
Speaker 1: country Sirius XM Chado one nine team, and around the
Speaker 1: globe the Bloomberg Business app and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Business Week. Great story in the Finance
Speaker 1: section of the current double issue of Bloomberg Business Week.
Speaker 1: It's all about the so called Tiger Cubs and other
Speaker 1: hot hedge fund managers that have been slammed in this
Speaker 1: year's financial market mood swing. Hamma Parmer wrote the piece.
Speaker 1: She's a hedge fund reporter at Bloomberg News, and she's
Speaker 1: been really busy this year, covering an array of high
Speaker 1: profile firms that had been flourishing until our concentrated bets
Speaker 1: on tech Darlink's started to go bad. We've been seeing
Speaker 1: a bit of alatility for a little while, but it's
Speaker 1: been short spurts of alatility last year, and what we're
Speaker 1: seeing right now is sort of a prolonged period of
Speaker 1: of market draw downs and it seems to be consistent,
Speaker 1: and buying the dip really isn't working anymore. And so
Speaker 1: I thought, these guys are supposed to be smart and
Speaker 1: how to manage this fatile Yeah, And unfortunately, like the
Speaker 1: volatility has been hitting the tech sox a great deal,
Speaker 1: and a lot of these tiger cubs are overweight and
Speaker 1: have been overweight in tech um so work for them
Speaker 1: for years and then obviously it's not working for them now.
Speaker 1: Is it normal that, like when the overall broader market
Speaker 1: is so heavily in tech, like kind of the mass
Speaker 1: investor that that it's it's the same thing that the
Speaker 1: hedge funds, and I always think that they're in something else.
Speaker 1: I don't know why I think that. Yes, No, I
Speaker 1: mean they're supposed to be more sophisticated. Um some of
Speaker 1: the funds have been trading different things more recently, and
Speaker 1: we are seeing that in some of the performance. Some
Speaker 1: Tiger Cubs are doing worse, some are doing a bit better.
Speaker 1: It's just a matter how much they've lost. They've all
Speaker 1: generally lost money, some have lost less, and I think
Speaker 1: that's because they have been trading a little bit differently.
Speaker 1: But still there is a general focus on these companies
Speaker 1: that have really struggled. I want to talk quit risk
Speaker 1: here because you've written about gape Plotkin. He's not a
Speaker 1: Tiger Cub, but you broke the story a couple of
Speaker 1: weeks ago of his hedge fund shuttering. Are we going
Speaker 1: to start seeing seeing more of that as these hedge
Speaker 1: funds have a hard time clawing back those losses. It's
Speaker 1: a really good question, and I feel like a lot
Speaker 1: of people in the industry are asking this. UM. The
Speaker 1: thing with Melvin is that they had a very difficult
Speaker 1: last year, prompted by this very strange Reddit phenomena, and
Speaker 1: then on top of that, they've been dealing with the
Speaker 1: volatility this year, so it's kind of been a double
Speaker 1: wemmy UM. Other funds have been down a lot this year,
Speaker 1: and maybe not as badly last year. So it really
Speaker 1: comes down to a fund, how much money it has
Speaker 1: on hand, how big it is, whether it's investors stick
Speaker 1: with them, and that may dictate the degree to which
Speaker 1: that they can consistently keep going or that they can
Speaker 1: bounce back. I love a quote your story. I think
Speaker 1: it's a deputy chief investment officer of Evanston Capital, which
Speaker 1: invests in hedge funds, and she says, you know, in
Speaker 1: terms of the quit risk, that's where a manager decides
Speaker 1: at the size of their losses are too large to
Speaker 1: climb out of. I mean there is a tipping point
Speaker 1: right at some point where a manager has to look
Speaker 1: at their fund and be like, I just can't I
Speaker 1: can't do it anymore. Yes, yes, And you could argue
Speaker 1: that was the tipping point from Melvin It was just
Speaker 1: a very very steep hole to dig you all out of. Well,
Speaker 1: it hasn't all been bad news. Ken Griffin at Citadel
Speaker 1: has returned almost in the first four months of the year.
Speaker 1: What do we know about what's been working for Citadel?
Speaker 1: So Citadel is a multi shot, multimanager fund. Them and
Speaker 1: their peers. What they do is they take little pods
Speaker 1: of traders who trade different things sort of kind of
Speaker 1: in silos, and they trade to cross asset classes. So
Speaker 1: they're a great deal more diversified. Though what's called market neutral,
Speaker 1: which means that they are supposed to trade um, not
Speaker 1: consistently with the market, like a typical of how what
Speaker 1: the SMP is doing, UM, that's supposed to provide steady
Speaker 1: results monthly. That add up. Macro funds have also been
Speaker 1: doing really well, and these are again funds that are
Speaker 1: trading in more things than just traditional stocks and so
Speaker 1: would have exposure to bonds. It's it's just a reminder
Speaker 1: of how much has been thrown into the equity market, right,
Speaker 1: Like if you think of at it, like all the
Speaker 1: liquidity that's been out there, and how much maybe you know,
Speaker 1: has been overexposed to equities versus when you hear about
Speaker 1: what Ken Griffin is doing over at Citadel, right, and
Speaker 1: which is kind of what you normally would tell an
Speaker 1: investor to be a lot more diversified. And this is
Speaker 1: why allocators to hedge funds try to create a portfolio
Speaker 1: of hedge funds that have that do different things and
Speaker 1: to diversify that exposure. So I mean, look, we can't
Speaker 1: look into the crystal Ball. But I'm wondering, based on
Speaker 1: your reporting and what you've been hearing from experts, if
Speaker 1: this is going to be a year of reckoning. It
Speaker 1: definitely seems like it's going to be a difficult year, absolutely, UM,
Speaker 1: because equity markets don't seem to be changing, you know,
Speaker 1: greatly in the near future. A lot of these funds
Speaker 1: have invested in private companies, and there's an expectation that
Speaker 1: the valuations of these private assets are going to be
Speaker 1: drawn down. So there does seem to be a great
Speaker 1: deal of pain ahead. How funds navigate it, UM well
Speaker 1: yet to be seen, and if there's creative ways to
Speaker 1: avoid it. How about overall assets, are we down a lot?
Speaker 1: I don't believe we are. I think as ad have
Speaker 1: still been growing into hedge fund because how many times
Speaker 1: have you and I talked about in moments of uncertainty
Speaker 1: or volatility and yet assets grow. And you know what
Speaker 1: last year when we saw that really terrible UM march,
Speaker 1: it was UM. That was when allocators, investors and hedge
Speaker 1: funds were saying, yeah, let's be up on the guys
Speaker 1: that we like, and they had a very good year
Speaker 1: in UM and so it's hard you have to gauge
Speaker 1: is this the time to get into them or is
Speaker 1: it time to be pulling out? And I think allocate
Speaker 1: is a thinking. Well, we keep hearing from our draft
Speaker 1: for the close guest Carol, that the FED is not
Speaker 1: going to come to the rescue like they did, you know,
Speaker 1: in the spring of But you do wonder at some
Speaker 1: point when something is so beaten down at some point,
Speaker 1: is that just an opportunity like it's so it just manages,
Speaker 1: you know, just determine. You have to think about what's
Speaker 1: your time frame right and how patient you can be.
Speaker 1: That was Bloomberg News Hedge Fund reporter Hmma Parmer. You're
Speaker 1: listening to Bloomberg Business Week. Coming up next, we dig
Speaker 1: into a multinational industrial conglomerate that aims to help curb
Speaker 1: the climate crisis from the inside out. We're talking with
Speaker 1: the CEO of Johnson can Trolls. This is Bloomberg. You're
Speaker 1: listening to Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes Tim Stinovich from Bloomberg Radio. It's a thirty
Speaker 1: seven billion dollar market cap company with customers around the globe,
Speaker 1: more than two thousand locations around the world. And helping
Speaker 1: to create so called intelligent buildings to help address are
Speaker 1: worsening climate crisis. Johnson Controls International also has a great
Speaker 1: vantage point when it comes to the global economy and
Speaker 1: corporate spending. For more on supply chain challenges, order growth
Speaker 1: and inflation, we turned to the company's chairman and CEO,
Speaker 1: George Oliver. Yeah, when we look at what's happening within
Speaker 1: our business, um, you know, we see unprecedented demand for
Speaker 1: what we do within buildings. You know, let me start
Speaker 1: by talking about what we do. Were smart solutions provider
Speaker 1: for buildings and infrastructure and uh, you know, we did
Speaker 1: a merger of five years ago which put together to
Speaker 1: leadership companies in the space, Tycho and John's Cold Trolls.
Speaker 1: And with our strategy of of taking the multiple you know,
Speaker 1: building systems and then being able to deploy technology with
Speaker 1: a data platform that enables us to be able to
Speaker 1: significantly change the outcome of buildings. And those outcomes are
Speaker 1: reducing energy demand by improving the indoor indoor air quality
Speaker 1: and ultimately you know, making autonomous buildings. And so for us,
Speaker 1: given the the the environment that we're in, we're seeing
Speaker 1: very strong demand. We've got backlogs that are that are
Speaker 1: wrecking high backlogs. Our challenges have been shorter term is
Speaker 1: ultimately converting with the supply chain challenges on that demand.
Speaker 1: And when you look at what we do within buildings,
Speaker 1: you know, when you look at the global carbon footprint,
Speaker 1: it represents about the of the overall global covernment footprint
Speaker 1: buildings do. And then the opportunity that we have now
Speaker 1: as a smart building solutions provider to significantly reduce the
Speaker 1: energy that's consumed in the building at the same time
Speaker 1: that we're upgrading the indoor air quality and ultimately in
Speaker 1: an autonomous autonomous building. So for us, we're watching the
Speaker 1: economy closely. But given what we see now going forward,
Speaker 1: where now buildings have become much more strategic um I
Speaker 1: think in the past they buildings were built with multiple
Speaker 1: systems separating apart, and now with the opportunity to bring
Speaker 1: that all together into one solution set, we're seeing very
Speaker 1: strong demand. So when we look at the market that
Speaker 1: ultimately is being created with these new problems that our
Speaker 1: customers are trying to solve, we see roughly accumulative about
Speaker 1: tifty billion dollars of additional market over the next decade.
Speaker 1: So we're watching it closely, but right now we're really
Speaker 1: focused on being able to execute on the backlock to
Speaker 1: support our customers. It's interesting when you talk about unprecedented demand,
Speaker 1: strong demand, um George, how much of it is because
Speaker 1: of companies looking to cut costs and be more efficient.
Speaker 1: How much of is it because of regulatory changes or
Speaker 1: the push towards you know, concerns about climate change and
Speaker 1: being much more sustainable. How much of the demand is
Speaker 1: new Bill? Well, when you look at let me start
Speaker 1: with the commitments have been made on climate change or
Speaker 1: or decarbonization that have been made broadly across businesses as
Speaker 1: well as with governments, and I think coming back from
Speaker 1: Davos from last week, it's how do we take all
Speaker 1: of the commitments that have been made and ultimately how
Speaker 1: do we now you know, bring that together with a
Speaker 1: combination that's shared between business and government and ultimately now
Speaker 1: capitalize on what we see the opportunity to be So
Speaker 1: for us with those commitments and recognizing now to get
Speaker 1: to net zero, buildings are going to be an important
Speaker 1: part that have to be addressed to get to the
Speaker 1: commitments that have been made. So we're seeing that, for instance,
Speaker 1: in our in our sustainable sustainable solutions business. We we
Speaker 1: see a pipeline now or let's say about seven billion
Speaker 1: dollars and will convert roughly a billion of that during
Speaker 1: during the course of the year. So we are seeing
Speaker 1: a significant demand for the type of solutions that we
Speaker 1: can now provide. And when you are uniquely positioned as
Speaker 1: Johnson Controls, and not only do we have the building systems,
Speaker 1: but now with our open Blue platform, which is a
Speaker 1: platform that allows us to be able to bridge all
Speaker 1: of the building systems together and then ultimately create outputs
Speaker 1: and historically haven't been delivered all right, So help me
Speaker 1: out here. So how much though is you know, in
Speaker 1: terms of demand if you had to put it into
Speaker 1: cuts of a pie or percentage wise, how much of
Speaker 1: that demand is new build? How much of is a
Speaker 1: cause of regulatory change? You know? How can you break
Speaker 1: it down a little bit? I'm curious about what's the
Speaker 1: psyche of people who are who are doing the spend.
Speaker 1: So Carola, what I would say, it's both the pandemic.
Speaker 1: When the pandemic hit, we immediately saw our demand to
Speaker 1: be able to upgrade the indoor air quality, which requires
Speaker 1: upgrading systems and deploying digital to be able to then
Speaker 1: optimize how you deliver a clean air delivery rate within buildings.
Speaker 1: So we saw that which is really taken the built
Speaker 1: environment and being able to elevate that built environment to
Speaker 1: solve for today's problem. So a lot of retrofit, a
Speaker 1: lot of upgrade, a lot of repair and leveraging our
Speaker 1: our technologies. Now at the same time, you've seen the
Speaker 1: new construction come back. You know, when you look at
Speaker 1: Architectural Building Buildings Index and a lot of the other metrics,
Speaker 1: you've seen where there has been an expansion and a
Speaker 1: lot of that growth is coming back. So for us,
Speaker 1: it's been both and it's not only a significant demand
Speaker 1: for upgrading the existing built environment, but at the same
Speaker 1: time fundamentally changing how buildings are built that ultimately are
Speaker 1: going to be able to deliver a significant different outcome
Speaker 1: as it relates to energy consumed as well as the
Speaker 1: environment that's created. One thing I want to know, George, Um,
Speaker 1: you know, it's interesting we are David Weston catching up
Speaker 1: with Larry Think over Black Rock and talking about we're
Speaker 1: gonna be living with more uncertainty, saying the inflation problem
Speaker 1: isn't you know it's policy related, but that the FET
Speaker 1: isn't someone who can fix some of these issues. Specifically
Speaker 1: talked about the supply chain UH and the supply chain problem.
Speaker 1: How is your supply chain? Are you seeing any kind
Speaker 1: of loosening in some of the snarls that have been
Speaker 1: out there? If you look at what's happened over the
Speaker 1: last couple of years with the pandemic and then the
Speaker 1: multiple shutdowns that have occurred to contain the virus, and
Speaker 1: now some of what we're experiencing in China with the
Speaker 1: shutdowns there, I mean, then at the same time with
Speaker 1: the Ukraine crisis, and and then with in our space
Speaker 1: the unprecedented demands. So when you put all of that together,
Speaker 1: we've we've had our own challenges and we've it's really
Speaker 1: about resiliency, and so not only with what we do
Speaker 1: to help our customers with their buildings and infrastructure and
Speaker 1: creating resilient, much more resilient buildings and communities, but also
Speaker 1: making sure that we're working with our suppliers to create
Speaker 1: a much more resilient supply chain globally. And that's what
Speaker 1: that's what we've been doing in the last two years,
Speaker 1: and we've made a tremendous amount of progress. Now what
Speaker 1: we're seeing is with that strategy, we are seeing improvement
Speaker 1: um and and it's across all of our commodities, whether
Speaker 1: it be microchips and semiconductors or other other materials, and
Speaker 1: so we've been working through it um. But resiliency in
Speaker 1: in in supply chains and mean, George, what does that mean?
Speaker 1: Does it mean you're shifting where you're doing it or
Speaker 1: what does that mean. We've always had a strategy in
Speaker 1: our supply chain to be local for local, and so
Speaker 1: when you are manufacturing footprint, we have manufacturing footprint and
Speaker 1: all of the key markets we support, and then we
Speaker 1: build local supply chains to support those manufacturing plants with
Speaker 1: local supply and so there are when you're building a
Speaker 1: global supply chain, there are some products that are used
Speaker 1: across multiple markets and so you can't predict, you know,
Speaker 1: whether it be the environment and natural disasters or pandemics
Speaker 1: or you know, these some of the geopolitical challenges that
Speaker 1: that might exist. And so our strategy has been to
Speaker 1: be local for local, and we've been developing not only
Speaker 1: the right product, but also having the local supply chain
Speaker 1: that creates resiliencing and how are how we're able to
Speaker 1: then you know, be able to support our customers and
Speaker 1: deliver for our customers. So that with the idea that
Speaker 1: you have multiple sources globally, so as you're going through
Speaker 1: some of this disruption, you've got a supply chain that
Speaker 1: has multiple sources, so you can source from multiple multiple locations. UM,
Speaker 1: all of that comes together into having a supply chain
Speaker 1: that's much more resilient. George, I'm really intrigued when you
Speaker 1: said you're seeing improvement in the supply chain, where specifically
Speaker 1: are you seeing that and you're seeing improvement when it
Speaker 1: comes to commodities as well as it chips? Is it like?
Speaker 1: What is it? It's been When we look at the
Speaker 1: work that we've done to strategize our semiconductors and chips
Speaker 1: were making good progress there across the globe. UM. A
Speaker 1: lot of our supply chain challenge was in North America.
Speaker 1: When we look at our supply chain, we have multi
Speaker 1: tiered suppliers and a lot of the challenges that we
Speaker 1: had with the disruptions from from COVID shutdowns and then
Speaker 1: some of the labor challenges um not necessarily within our facilities,
Speaker 1: but within our suppliers that UM and so we've worked
Speaker 1: very closely with them and being able to address their
Speaker 1: their labor challenges ultimately getting the supply chain back operating.
Speaker 1: So it really looking at all levels of the supply
Speaker 1: chain UM as well as all when you look at
Speaker 1: the global footprint, all regions, and we've been making part
Speaker 1: pretty much across the board. Georgia, are you expecting a
Speaker 1: recession movie later this year or maybe next year? Are you?
Speaker 1: Are you when you gather your management team, do you say, guys,
Speaker 1: this is what you know. We need to have the
Speaker 1: playbook ready for Well, you can go back with the pandemic,
Speaker 1: and I think we we we demonstrated this very well.
Speaker 1: We've been creating a lot of agility with how we
Speaker 1: operate as a company, and we've had an incredible opportunity
Speaker 1: with the work that we do within buildings and infrastructure
Speaker 1: to respond to these crisis like for instance, a good
Speaker 1: example is in the early days of the pandemic, we
Speaker 1: support critical infrastructure, which is healthcare, and we were on
Speaker 1: the front lines building hospitals in a in a matter
Speaker 1: of days that had the highest air quality and ultimately
Speaker 1: the resource that they needed to be able to attend
Speaker 1: to those infected. And so we've we've built, you know,
Speaker 1: we've been very agile with what we do, not only
Speaker 1: responding to the new demands and the crisis, but also
Speaker 1: agility relative to understanding a little bit of what's gonna
Speaker 1: potentially happening and make sure that we're always positioned to
Speaker 1: be able to deliver for our customers, be able to
Speaker 1: solve their biggest problems, and then ultimately make sure that
Speaker 1: we're taken into account what we see happening on the horizon.
Speaker 1: So being agile in case of whatever comes your way,
Speaker 1: so could be a recession, could not. Is that is
Speaker 1: that fair to say? Yeah? Like I said, right, our
Speaker 1: focus right now is delivering on the backlog and delivering
Speaker 1: for our customers given what we've seen here over the
Speaker 1: last about eighteen twenty four months. Obviously, I think the
Speaker 1: demand that we see now solving the biggest problems within buildings,
Speaker 1: which is indoor ear equality, making making them much healthier
Speaker 1: and safer, and then also being able to address the
Speaker 1: global carbon footprint that domain is going to continue because
Speaker 1: the commitments have been made and ultimately our customers have
Speaker 1: to deliver on those commitments. That's George Oliver, chairman and
Speaker 1: CEO of the publicly traded Johnson Controls International. And that
Speaker 1: wraps up the first hour of the weekend edition of
Speaker 1: Bloomberg Business Week from Bloomberg Radio. I'm Carol Masser and
Speaker 1: I'm Tim Stanovick. Ahead in our next hour, a look
Speaker 1: at the gamification of the gig economy and what it's
Speaker 1: doing to workers who are the real winners and losers there.
Speaker 1: And we'll find out why this summer could be the
Speaker 1: most costly travel season of our lives. We just can't
Speaker 1: get a break, Tim Chat, Have you filled up your
Speaker 1: tank lately? Uh? Kuchen, Kuchen. This is Bloomberg. This is
Speaker 1: Bloomberg Business Week Inside from the reporters and editors who
Speaker 1: bring you America's most trusted business magazine, plus global business,
Speaker 1: finance and tech news as it happened. Sloomberg Business Week
Speaker 1: with Carol Messer and Bloomberg Quick Takes Tim Stinovic on
Speaker 1: Bloomberg Radio. Plenty ahead in our second hour of the
Speaker 1: weekend edition of Bloomberg Business Week, including why this year's
Speaker 1: summer travel season will be one to remember for all
Speaker 1: the wrong reasons, and speaking of traveling, we go above
Speaker 1: the clouds for a look at zero g it's a
Speaker 1: company that wants to bring the feeling of space flight
Speaker 1: to the masses. Do this you've never done it? No,
Speaker 1: it's seven thou dollars don't but obviously I've looked into it.
Speaker 1: Can they do a press dunking maybe for us? First
Speaker 1: up this hour we die back into this week's Business
Speaker 1: Week double issue, the Tech Issue, and a story from
Speaker 1: Bloomberg News technology reporter Jackie Devlos on how gamification took
Speaker 1: over the gig economy. When we talk about gamification, we
Speaker 1: think about the idea of points and you know, you
Speaker 1: can think about it from the perspective of early on
Speaker 1: and frequent flyer miles even you know, people getting points
Speaker 1: through credit cards, that type of gamification. Talk to us
Speaker 1: about how Uber and Lyft and gig economy apps have
Speaker 1: been using gamification to get drivers gig workers to do
Speaker 1: what they want. You know, this type of model really
Speaker 1: proliferated UM with right Share Uber Lift as you mentioned him,
Speaker 1: and it really centers around making the process of getting
Speaker 1: a ride, accepting a ride, and ultimately staying on the
Speaker 1: app longer as a driver or a delivery driver for
Speaker 1: that matter. UM for a longer period of time, and
Speaker 1: you know it's it's small what we mentioned UM and
Speaker 1: the story, there's small nudges, and you know, this can
Speaker 1: come in the form of you know, a slash, you know,
Speaker 1: a particular color when there's a high demand area and
Speaker 1: you know it's it's a heat maps it's really colorful,
Speaker 1: or sometimes uh, you know, apps will incorporate features like
Speaker 1: a drawer a ride that no one else wants to take.
Speaker 1: You know, it'll pop up, you know, a big number
Speaker 1: that has you know, an extra ten dollars or an
Speaker 1: extra five dollars if you take this ride. UM. So
Speaker 1: it's small nudges like that that ultimately UM you know,
Speaker 1: get so many drivers to uh to complete the work.
Speaker 1: But you know what initially UM seemed to be a
Speaker 1: relatively benign UM way of you know, getting contractors on
Speaker 1: the FPP is now turning out to be somewhat of
Speaker 1: a problem, especially in rideshare because of the driver's shortage.
Speaker 1: A lot of these features are really frustrating for drivers,
Speaker 1: and especially when it comes to bonuses, which is the
Speaker 1: way that companies have been trying to lure them back
Speaker 1: on the road. UH. These bonuses are increasingly more difficult
Speaker 1: to get from the driver's perspective. So it's really um
Speaker 1: exposing a lot of the cracks that started to um,
Speaker 1: you know, starting to come up on these pop warms,
Speaker 1: whether it's you know, even door dash and instacrat have
Speaker 1: similar features when it comes to um dispersing some of
Speaker 1: these jobs. So um, yeah, all gig companies are starting
Speaker 1: to kind of reckon with what that means. Now, well,
Speaker 1: it's interesting too, and you get into this whole idea.
Speaker 1: You think these gig workers, right, they can be their
Speaker 1: own boss. But as your story really gets into, Jackie,
Speaker 1: is it's not necessarily the case. And I have to
Speaker 1: say something that so resonated with me because I am
Speaker 1: seeing this and full transparency use a lot of uber.
Speaker 1: But what's interesting is I'll often have a driver accept
Speaker 1: my ride and right they accept, not knowing it, and
Speaker 1: then they're like, I really don't want to go to
Speaker 1: New Jersey. But my point is I sit there and
Speaker 1: I wait, and I see the car park and it
Speaker 1: becomes a standoff, and I'm a little bit of a
Speaker 1: nudge and I actually call customer service and they're like, well,
Speaker 1: you you have to cancel, And I know the drivers
Speaker 1: don't want to cancel because that gets points against them.
Speaker 1: So there's literally a standoff from me and the driver,
Speaker 1: and I'll message them and I'm like, I'm not going
Speaker 1: to cancel you because you're just sitting there. It's really rude.
Speaker 1: And meanwhile, you're still sitting here because you're not getting home.
Speaker 1: But it's interesting because the drivers, right, they assume they
Speaker 1: have complete control, but it's really not the case now,
Speaker 1: absolutely not. And that's the whole point. It's, you know,
Speaker 1: gamification makes it look much friendlier, makes it appear, you know,
Speaker 1: um much more benign. You know, you accumulate points, you
Speaker 1: can redeem them for rewards. In fact, pup specifically, they
Speaker 1: give you more visibility into a ride. The longer you
Speaker 1: stay on the app and where rides you get, it
Speaker 1: unlocks more transparency, which is you know, really yes, And
Speaker 1: so I think you know, as you're saying, and I
Speaker 1: live in Brooklyn second, totally, you know, emphasize there, because
Speaker 1: whenever I'm in Manhattan, that's the last place most most
Speaker 1: drivers want to go. To your point, they don't have
Speaker 1: the transparency that they would have if they were really
Speaker 1: you know, independent workers, and the flexibility that companies tout
Speaker 1: really ends up coming into question when you have features
Speaker 1: like this introduced. So so, Jackie, what are these companies doing?
Speaker 1: What have they told you that they're doing in order
Speaker 1: to essentially not be criticized for, you know, making these
Speaker 1: doing these nudges that don't necessarily turn out for the
Speaker 1: benefit of the gig economy drivers. So in particular has
Speaker 1: kind of taken the lead in increasing more transparency. They're
Speaker 1: not all the way there yet. Starting this year, they
Speaker 1: rolled out a feature in certain markets just to kind
Speaker 1: of test it out, where a driver now has access
Speaker 1: to like an upfront fair, so before they accept a ride,
Speaker 1: they can see how much they're going to get, and
Speaker 1: you know where the passenger is going, what the duration is.
Speaker 1: So more data points that they had before comes with
Speaker 1: a trade off, so it's not you know, transparency for free.
Speaker 1: In return, you know, you can't really see how the
Speaker 1: fair is calculated. So many drivers say, yeah, I can
Speaker 1: now see where I'm going. If I'm going, you know,
Speaker 1: I can choose not to accept and I won't be penalized.
Speaker 1: But whereas before, you know you have the ability to
Speaker 1: see the time um or the ability to see to
Speaker 1: calculate the distance. Once you have the data points after accepting,
Speaker 1: you don't get to see that fair calculation, and so
Speaker 1: drivers are like, well wait a second, I got this piece,
Speaker 1: but then got the other piece taken away. UM. Lift
Speaker 1: also starting to introduce something similar with upfront fairs. UM.
Speaker 1: But Ooper, you know, their latest earnings called really trount
Speaker 1: and said that they're an earner's centrick company. It's not
Speaker 1: something that they've ever said before. Really putting the importance
Speaker 1: on drivers more so now than ever. UM, and I
Speaker 1: think we're gonna start to see more driver friendly features
Speaker 1: rolled out, especially as they're trying to entice more of
Speaker 1: them to come back. So I'm going to be rejecting
Speaker 1: more is what you're gonna tell me, Jackie Transparent, You're
Speaker 1: gonna you're gonna just bann from the apps and you're
Speaker 1: gonna just have to start walking through New Jersey. Girl again.
Speaker 1: I'm not taking her anywhere. There's all to get the
Speaker 1: way over the g W Bridge that you can walk on.
Speaker 1: Funny funny our Thanks to Bloomberg News technology reporter Jackie Devolos,
Speaker 1: you're listening to Bloomberg Business Week coming up? Have you
Speaker 1: made your summer vacation plans yet? We've got a series
Speaker 1: of stories featured in the magazine that just might make
Speaker 1: you reconsider stick around. That's all to come. This is Bloomberg.
Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg
Speaker 1: Quick Takes. Tim Stinovik from Bloomberg Radio. Hey, the Karnei Show.
Speaker 1: Bloomberg Business Week. It's a special double issue. It is
Speaker 1: the tech issue. We've talked about that, but it also
Speaker 1: has a takeover of the business section that's all about travel,
Speaker 1: and that's very timely as a summer season is getting underway.
Speaker 1: And I've got to say, I don't know about you.
Speaker 1: Were just talking with Jim Allis, who's going to join
Speaker 1: us in just a moment. But we all could use
Speaker 1: about a month off, bosses, Are you listening, because we're
Speaker 1: all kind of burned out. Can we do sabbatical? Is
Speaker 1: that we don't really do those? Right? Yeah? I don't
Speaker 1: want to even work from home. I just want to
Speaker 1: just want to break. Let's get into it. Jim Ellis
Speaker 1: is managing editor for Bloomberg Business He's with us here
Speaker 1: in the Bloomberg Interactive Brokers studio. Jim, we want to
Speaker 1: talk to travel section of the magazine. We've got quite
Speaker 1: a few of them. Um, I want to start with
Speaker 1: with inflation and we love having you on and you
Speaker 1: you wrote a few months Wait a minute, how did
Speaker 1: you guys approach it? Because it sounds like this is
Speaker 1: a bummer of a travel section? How dare you? The
Speaker 1: good part is that you know, people will probably get
Speaker 1: to go somewhere. The bad part is it probably won't
Speaker 1: be where they want to go and maybe just one
Speaker 1: trip and that's it, you know, it's it's it's unusual
Speaker 1: because we've got not only the the aftermath of the
Speaker 1: pandemic because of the big drop off in the number
Speaker 1: of workers that are in the travel business, we also
Speaker 1: have inflation. So that's a double whammy that's made a
Speaker 1: lot of people's vacations are going to be shorter this year,
Speaker 1: they're gonna be a lot more expensive, and they're often
Speaker 1: going to be places that they didn't actually intend to go.
Speaker 1: And that's the surprising thing of Americans say they want
Speaker 1: to they plan to travel someplace this summer. However, because
Speaker 1: of pricing, particularly for air fares, a lot of people
Speaker 1: are saying now, well, um we we I guess the
Speaker 1: latest studies are saying almost two thirds say that they're
Speaker 1: willing to shift where they go just to keep the
Speaker 1: prices in line. Okay, let's talk travel as you can
Speaker 1: do that anything for you, Carol Master. We thought that
Speaker 1: the Internet killed travel agents, but everyone said, oh, yeah,
Speaker 1: you know that they were gone. I mean, this is
Speaker 1: something that supposedly have been disrupted. But it turns out
Speaker 1: that in the market like this, where people actually are
Speaker 1: having difficulties finding space, you know, either for hotels, are
Speaker 1: good fares for airlines, what they're doing is turning to
Speaker 1: travel agents increasingly to find out where might they go
Speaker 1: to get something that's a sim it's of value. I
Speaker 1: didn't say discounts, I said value because uh, you know,
Speaker 1: hotel rates have gotten so outrageous now. We looked at
Speaker 1: hotel rates in UM at the fancy resorts in Miami
Speaker 1: and where you might have been able to go to
Speaker 1: the breakers two years ago for you know, less than
Speaker 1: four hundred dollars a night. It's now for a regular
Speaker 1: room four hundred dollars a night. And UM Now, admittedly
Speaker 1: that is the most expensive market in the US right
Speaker 1: now for vacations. Prices are all Florida, particularly Miami. The
Speaker 1: days when Miami didn't get people in summer. Those are
Speaker 1: over and so now Miami has rates that are fifty
Speaker 1: higher this year than in before the pandemic. So what's
Speaker 1: happening is that people are people want to get out
Speaker 1: and a lot of the money that hotel you couldn't
Speaker 1: get during the pandemic they're getting now. Fortunately you can
Speaker 1: go on a cruise or can you can you is
Speaker 1: that the bar I feel like I get bombarded with
Speaker 1: like book your traveling, your travel book, but be prepared
Speaker 1: for cruises don't really have the staffing that they normally did.
Speaker 1: You know, large numbers of cruise uh people who on
Speaker 1: the crew, who who managed the cruises are not from
Speaker 1: the US. A lot of those people ended up back
Speaker 1: in their home countries, um, you know, during the pandemic
Speaker 1: and now have not been able to get back either
Speaker 1: because there's air service isn't back here and also because
Speaker 1: a huge backlog at the state Department to actually go
Speaker 1: ahead and give you know, sort of authorizations for these
Speaker 1: people to come back. That's causing some cruise lines now
Speaker 1: to cut back on the number of paying passengers that
Speaker 1: they can take. I mean a lot of people saw kunard.
Speaker 1: You know, it's just luxury cruising, you know, a few
Speaker 1: weeks ago saying it was going to you know, basically
Speaker 1: take people who had already paid for cruises and tell
Speaker 1: them they can't come because they're cutting down the capacity
Speaker 1: on their ships because they don't have enough people to
Speaker 1: actually serve you on the ship. Wasn't there a story
Speaker 1: today about Delta right that, I mean that they just
Speaker 1: can't have they don't have enough pilots. And we actually
Speaker 1: saw in some of the business travel we recently did
Speaker 1: the flight our flight was, they asked us when we
Speaker 1: got on the flight where they're they were like, oh,
Speaker 1: were you supposed to be on the earlier flight that
Speaker 1: was canceled because there wasn't a co pilot available. Yes, Well,
Speaker 1: now it's this the crew issue. I think a lot
Speaker 1: of people didn't expect business to come back as quickly
Speaker 1: as it did, and during the pandemic there was a
Speaker 1: huge rush to retirement for people who could and that
Speaker 1: was pilots. And so now as businesses come roaring back,
Speaker 1: you don't have enough pilots to actually keep all the
Speaker 1: planes flying. You know, double that down with equipment issues,
Speaker 1: like American is cut cut back a number of foreign
Speaker 1: routes because it can't get seven eight seven's delivered in
Speaker 1: time for the summer travel season. So what we said
Speaker 1: before we started, we can't actually repeat exactly the words
Speaker 1: we use because the world is kind of not so
Speaker 1: great right now. Hey, So all right, Um, maybe I
Speaker 1: can't get to a hotel. It's either too expensive or
Speaker 1: there's not enough staff, and I'm not going to be happy. Okay,
Speaker 1: the cruise lines maybe got some problems getting out a play.
Speaker 1: What about if I just go to Airbnb or rent
Speaker 1: a vacation. Tim's Tim's got like two homes he wants
Speaker 1: out in the Hampton's Hampton families that if you haven't
Speaker 1: gotten one already, I had a feeling you're not going
Speaker 1: to get one. But Hampton homes this summer we're particularly expensive.
Speaker 1: I mean there were, um, right before we uh, you know,
Speaker 1: if published, there was still a couple of places one
Speaker 1: for I think a million six, one for a million three,
Speaker 1: five of the sort of super types that you might
Speaker 1: want to pick up for the family this this summer.
Speaker 1: Excuse me, do you mean to buy the house altogether?
Speaker 1: So that was just a month of JA does that
Speaker 1: work to take a mortgage out for the month of July.
Speaker 1: That's happened that people who can afford really high end
Speaker 1: properties are really willing to spend for you know, sort
Speaker 1: of vacation homes this summer. But it's not just that.
Speaker 1: Also for people who are like me who want us
Speaker 1: out of have a bargain and just you know, get
Speaker 1: a one or two bedroom place. Um right now, sort
Speaker 1: of weekend rentals are really difficult to get, but week
Speaker 1: long rentals are even difficult to get, and pricing is
Speaker 1: up about fift compared to and so um pre pandemic
Speaker 1: pre pandemic. So this is a real problem. You know.
Speaker 1: Add that on to hotel rates which have just skyrocketed,
Speaker 1: rental car rates which have up because the rental car
Speaker 1: companies didn't add a lot of you know, inventory of
Speaker 1: new cars before and now they can't get new cars
Speaker 1: because there's a shortage of new cars. Subcamping in my
Speaker 1: city backyard, well, even if you can, we discovered that
Speaker 1: camping turns out to be more expensive this year than
Speaker 1: do you have any good news for us? Good news
Speaker 1: is that there's always next year. That was Bloomberg Business
Speaker 1: Week Assistant managing editor Jim Ellis. That's a little bit
Speaker 1: of a bummer. Huh, yeah it is. I mean staycations.
Speaker 1: I don't know, I really just kind of want to
Speaker 1: get out of him, change your face. Well, speaking of that,
Speaker 1: still to come on Bloomberg Business Week. If you're not
Speaker 1: interested in long lines at the airport or high rental
Speaker 1: car prices, you do have another option simulating space travel.
Speaker 1: It is the single most unique thing that you will
Speaker 1: ever get to do. When you are floating in our
Speaker 1: cabin and there's nothing below you as far as holding
Speaker 1: you up or down, or you're upside down and you
Speaker 1: don't know which way ups or down because the blood
Speaker 1: is not running to your head. You're in a different place.
Speaker 1: The CEO of Zero Gravity Corporation joining us on the
Speaker 1: other side. This is Bloomberg broadcasting from the financial capital
Speaker 1: of the world, Bloomberg Eleve in Frio in New York
Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one oh
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Speaker 1: globe the Bloomberg Business app and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Business Week. Might recall our next gas
Speaker 1: we caught up with him at the Power Players Summit
Speaker 1: in Beverly Hills. It was just ahead of the Super
Speaker 1: Bowl in February. The topic space tourism with us once
Speaker 1: again as Matt Goad. He's the CEO of the privately
Speaker 1: held space entertainment and tourism company Zero Gravity Corporation, also
Speaker 1: known as zero G. For people who aren't familiar with
Speaker 1: his Zero G, they offer weightlessness flights aboard Modified seven
Speaker 1: twenty seven's Matt tell us a little bit about the
Speaker 1: experience because it's different than uh, let's say, a Blue
Speaker 1: Origin or a Virgin Galactic because you're on an airplane.
Speaker 1: We are, and and plus we've been doing this. We've
Speaker 1: flown gosh, probably eighteen thousand people since his company started
Speaker 1: in two thousand and four, including Stephen Hawking and and
Speaker 1: Elon Musk, who was one of our original shareholders, and
Speaker 1: Richard Branson and a lot of other people. So we've
Speaker 1: flown a few more than than the others have, and
Speaker 1: all safely and and all loving every second of it.
Speaker 1: And you know, the best way to describe it is
Speaker 1: that is the single most unique thing that you will
Speaker 1: ever get to do. When you are floating in our
Speaker 1: cabin and there is nothing below you as far as
Speaker 1: holding you up or down, or you're upside down and
Speaker 1: you don't know which way up is or down because
Speaker 1: the blood is not running to your head. You're in
Speaker 1: a different place. And the primary difference between what we
Speaker 1: do and what are our friends at at Blue and
Speaker 1: Version do is they give you this amazing view. They
Speaker 1: they're taking you up miles and you're getting to see
Speaker 1: the Earth from this amazing perspective and experience what's called
Speaker 1: the overview effect. And in that you're gonna get about
Speaker 1: three minutes of zero G time, which you really shouldn't
Speaker 1: waste doing somersaults are chasing skittles or playing stuff. You
Speaker 1: should be looking down the window. And then you come
Speaker 1: to our flight and we'll we'll give you more than
Speaker 1: twice that amount of time in zero gravity in our plane,
Speaker 1: and the ability to also learn while you're doing so,
Speaker 1: very very different experiences, lightly different price points. One of
Speaker 1: the things I think is interesting too. I mean, I
Speaker 1: grew up kind of a space kid. My dad worked
Speaker 1: on the space program years ago, um, when there were
Speaker 1: a lot of engineers out there and a lot of
Speaker 1: people who wanted to be engineers. Uh, and I was thinking. Tim.
Speaker 1: We had a conversation with Jitsh Gay yesterday at h Informatica,
Speaker 1: the chief product officer. He's an engineer, electrical engineer, and
Speaker 1: just talking about the need for engineers in our society.
Speaker 1: If you think about the things being built and how
Speaker 1: they need those kinds of people that with those kinds
Speaker 1: of skills, what is it about what you guys offer
Speaker 1: that might just you know, create some interest among a
Speaker 1: younger community when it comes to STEM, and we're very
Speaker 1: focused on that. We have our own nonprofit that we
Speaker 1: have focused on bringing this experience to UH school kids,
Speaker 1: UM and others to see that, you know, being in
Speaker 1: the in the space industry is uber cool and and
Speaker 1: and when you take that first experience in zero gravity
Speaker 1: and it kind of hits you that this is not
Speaker 1: what you ever thought it would be. So we're very
Speaker 1: interested and involved in bringing this experience via whether it's
Speaker 1: it's essay contests and inner city schools or things like that.
Speaker 1: So this next group of of young men and women
Speaker 1: will have this opportunity to see that there is a
Speaker 1: very amazing career in space and and as you know
Speaker 1: time goes on, the access to space will become more available,
Speaker 1: and and what we talked about now is as a
Speaker 1: dream and you know, twenty years will have you know,
Speaker 1: a couple of space stations up there that people are
Speaker 1: going back and forth to do experiments or staying in
Speaker 1: hotels or or filming movies or things like that. And
Speaker 1: just like you know today we talked about, you know,
Speaker 1: how cool it is, you know to fly around on
Speaker 1: jets and things like that. In in twenty years it
Speaker 1: will be you know, going to space. I wonder how
Speaker 1: much of your business is focused, Matt on providing you know,
Speaker 1: entertainment about eight tho bucks pop, versus doing research or
Speaker 1: or perhaps commercial activity because I know that you can
Speaker 1: hire it too for photo shoots and stuff. We do,
Speaker 1: so we have a few different parts of the business. Obviously,
Speaker 1: the thing that we people hear about the most of
Speaker 1: our consumer business where for eight thousand bucks, you come
Speaker 1: up and you feel like an astronaut. You we train
Speaker 1: astronauts as well, so you're having the exact same experiences
Speaker 1: as the astronauts that we trained that will be going
Speaker 1: into space. Um, but that's the least interesting thing that
Speaker 1: we do. I mean, the most interesting thing we do
Speaker 1: is is really you know, space experiments that make space
Speaker 1: more accessible, how things would act in space without gravity,
Speaker 1: whether they're fluid transfers or uh, some things we do biomatically.
Speaker 1: We did the first um printing of a human heart
Speaker 1: on a three D printer in zero gravity and that
Speaker 1: is now on the space station printing everything. So what
Speaker 1: we do in research with major universities University of California,
Speaker 1: perdu M, I T, you know, and as well as NASA,
Speaker 1: and with the advent of the space stations coming along,
Speaker 1: we will i'd think likely be doing work with them
Speaker 1: on how things act in that environment, which will help
Speaker 1: them create these these stations that will replace the I S.
Speaker 1: S as And we're really excited about it and we're
Speaker 1: the platform for them to do it. So that's the
Speaker 1: most interesting. The most fun thing we do is is
Speaker 1: taking you up and letting you flip and fly and
Speaker 1: spin and do all these things like you're in space.
Speaker 1: That's Matt go the CEO of Zero Gravity Corporation also
Speaker 1: known as Zero G. You're listening to Bloomberg Business Week.
Speaker 1: Coming up, we examine America's latest space of gun violence
Speaker 1: and what can be done to prevent the next school
Speaker 1: shooting because many would say There's probably going to be
Speaker 1: another one. Unfortunately. This is people you're listening to Bloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes. Tim
Speaker 1: Stinovik from Bloomberg Radio. We spent hours with hundreds of
Speaker 1: family members. Were broken. Those lives will never be the same.
Speaker 1: They had one message for all of us. Do something.
Speaker 1: Just do something, for God's sake, do something. President Biden
Speaker 1: demanding action on guns, talking to the nation in an
Speaker 1: evening address Thursday night. That on the heels of yet
Speaker 1: another mass shooting in Tulsa, Oklahoma, this past week. Of course,
Speaker 1: the White House had already been looking for a legislative
Speaker 1: response following the elementary school attack in Uvaldi, Texas, that,
Speaker 1: of course, on that claimed the lives of nineteen children
Speaker 1: and two teachers. We're trying not just to make sense
Speaker 1: of the tragedy, but also understand where the United States
Speaker 1: can go from here. We've got a great voice on this.
Speaker 1: Dr Marissa Randazzo is executive director of Threat Management at
Speaker 1: on Tick. She joins us this afternoon from Washington, d C.
Speaker 1: She's got a great background, serving with the U. S.
Speaker 1: Secret Service for a decade. She was the agency's chief
Speaker 1: Research psychologist assigned to the National Threat a Estment Center
Speaker 1: also co directed the Safe School Initiative, conducted jointly by
Speaker 1: the U. S. Secret Service in U S. Department of Education.
Speaker 1: Dr Randazzo, it's good to have you with us. I
Speaker 1: wish it were under different circumstances. Um. We we're trying
Speaker 1: to understand how this type of thing can can be prevented.
Speaker 1: And we know what is happening politically right now, That's
Speaker 1: not what we're going to talk about. But what we're
Speaker 1: gonna talk about is is real solutions here. And and
Speaker 1: you say it's possible to prevent school shootings, how well,
Speaker 1: it's absolutely possible to prevent school shootings. I was part
Speaker 1: of a team that has been studying school shootings since
Speaker 1: the combined attack happened, and we actually went back twenty
Speaker 1: five years and the Secret Service has continued this research,
Speaker 1: and I just want to emphasize school shootings are preventable.
Speaker 1: We can prevent them because they are sought out and
Speaker 1: plan out in advance, and because the person who engages
Speaker 1: in that violence typically tells other people beforehand, so we
Speaker 1: stand a chance at hearing about someone who's planning for
Speaker 1: this type of horrific violence before they actually get to
Speaker 1: that point. And one other important pieces that people who
Speaker 1: carry out and students who carry out school shootings in particular,
Speaker 1: typically do it when they're at a point of feeling
Speaker 1: desperation there at the end of their rope, that they
Speaker 1: may even be actively suicidal and they see no other
Speaker 1: way out of their problems. Um and and maybe really
Speaker 1: just looking to violence as the last solution or the
Speaker 1: best solution to to to solve their problems and commit
Speaker 1: suicide at the same time. Often is the case. So
Speaker 1: the way we prevent this is typically by setting up
Speaker 1: threat assessment teams and training lawn person personnel, school personnel,
Speaker 1: and mental health professionals in This process, known as behavioral
Speaker 1: threat assessment, was first of all by the Secret Service.
Speaker 1: It's been adapted for K twelve, It's been adapted for
Speaker 1: higher D and end even the Department of Defense has
Speaker 1: concluded this is exactly the tool that works best. It's
Speaker 1: our best hope going forward. I mean this sounds like
Speaker 1: being kind of an offensive offensive, like being on the
Speaker 1: offense right looking for the problem areas are problem individuals.
Speaker 1: Why aren't we set up better? Is it just we
Speaker 1: still are in a society, even though in the pandemic
Speaker 1: we talk so much about well being in mental wellness
Speaker 1: and you know, employers being more sympathetic the whole world
Speaker 1: kind of getting a better understanding of how it can
Speaker 1: impact everybody or anyone. Um is it's just still society's
Speaker 1: lack of expertise and knowledge when it comes to mental
Speaker 1: well being and willing to kind of identify it, like,
Speaker 1: what is it that we're not better about this? Well?
Speaker 1: I think I think that that's a big piece of it.
Speaker 1: And I think the other thing that distracts us is
Speaker 1: that depression in in girls and women look different than
Speaker 1: it's typically dozen boys and men were used to kind
Speaker 1: of the Hollywood script of you're just withdrawing from activities,
Speaker 1: you're sleeping all day, you're eating a tub of ice cream.
Speaker 1: For boys and for men, clinical depression actually looks very active.
Speaker 1: It's anger, it's trigger temper, it's rage, and we miss that.
Speaker 1: We miss it a school personnel, as law enforcement, pediatricians
Speaker 1: miss that as a possible symptom of clinical depression. It's
Speaker 1: part of what attracts some people to extremist ideas in
Speaker 1: the first place, is feeling like the only legitimate expression
Speaker 1: of their emotions is hatred. If they were to cry
Speaker 1: that we made fun of But if they are angry
Speaker 1: and seezing and full of hate, then they're not made
Speaker 1: fun of. So part of it is we have an
Speaker 1: opportunity if we know what to look for, especially em
Speaker 1: boys and young men ris. I can't help but think
Speaker 1: that if these kids did not have access to guns,
Speaker 1: these things wouldn't happen. Because we have mental health issues
Speaker 1: in countries outside of the United States where it is
Speaker 1: harder to get a gun, and we do not see
Speaker 1: mass shootings like this. It's absolutely the case. We can't
Speaker 1: deny the fact that the US has really cornered the
Speaker 1: market on that shootings. We have so many more than
Speaker 1: any other similar country with similar mental health problems, stressors, etcetera. UM,
Speaker 1: But I will tell you at the same time, I
Speaker 1: have been working in the field of throat assessment for
Speaker 1: over twenty five years. I've been doing research in different
Speaker 1: types of gun control for even longer than that, and
Speaker 1: and the sides haven't changed, and the and the division
Speaker 1: this has has only worsened. So what I want us
Speaker 1: to look at it what can we do right now?
Speaker 1: And what one thing we can do is state legislatures
Speaker 1: can actually enact these extreme risk protection orders, So I
Speaker 1: can't remember nineteen or twenty three states have them. It's
Speaker 1: a temporary order, a temporary restraining order, separating someone who
Speaker 1: is planning violence or maybe a risk to themselves from
Speaker 1: their weapons until they can be stabilized. So that's something
Speaker 1: we could actually take action on. Out to Randazzo, I
Speaker 1: am curious, first of all, after this shooting that we
Speaker 1: just got this week, and we've had a couple of
Speaker 1: shootings right in just a short time. Um, you know,
Speaker 1: I am curious. Is your phone ringing off the hook?
Speaker 1: Are people calling saying? How do we deal with this?
Speaker 1: What do we do? What's our first step? Yeah? And
Speaker 1: and actually, for anyone that has a threatening situation there
Speaker 1: there are a number of things that you can do.
Speaker 1: First and foremost, go ahead and call local law enforcement.
Speaker 1: Let them be aware of it. Um, if it is
Speaker 1: occurring in a school, from a student, from a parent,
Speaker 1: wherever it's occurring, you can find out if that school
Speaker 1: has a threat assessment team. Your workplace may well have
Speaker 1: a threat assessment team or a workplace violence prevention team.
Speaker 1: These are teams that are trained to handle these situations
Speaker 1: or to call in outside experts who have the ability
Speaker 1: to handle those situations. But something that's important to know
Speaker 1: is when we get a series of these news grabbing,
Speaker 1: high profile event, these horrific acts, it oftentimes prompts an
Speaker 1: influx of more more threats coming in. For for a
Speaker 1: couple of different reasons. One, sometimes hearing something like this
Speaker 1: news about it destabilizes people who are kind of barely
Speaker 1: keeping things together and may feel like, well, now that's
Speaker 1: a way out for me. I'm also suicidal and I
Speaker 1: could I could get some notoriety at the same time,
Speaker 1: for example, um it also tends to lower people's threshold
Speaker 1: for reporting, So a coworker who may have been worried
Speaker 1: about some behavior they've seen in the workplace may now
Speaker 1: be much more inclined to bring that forward to their
Speaker 1: HR department, to their corporate security department to let them
Speaker 1: know about their concerns. So people on the receiving end
Speaker 1: for our assessment team security law enforcement are likely going
Speaker 1: to see an uptick in those threats coming in, both
Speaker 1: because maybe more threatening behavior is occurrent, but costs so
Speaker 1: largely because people who are much more inclined I don't
Speaker 1: want this to happen to me, I've been worried about
Speaker 1: the situation for a while, and now I'm gonna tell
Speaker 1: us someone the doctor Rondozo, I'm wondering what you know.
Speaker 1: I think a lot of people are turning to lawmakers
Speaker 1: right now to see what Congress can do to try
Speaker 1: to create laws that will prevent this. What would you
Speaker 1: like lawmakers to do so? On my wish list, first
Speaker 1: and foremost, I want to get threat assessment training, training
Speaker 1: on how to do these threat investigations every local police
Speaker 1: department and shariff's office in the country. Federal law enforcement
Speaker 1: typically gets this training, local law enforcement often does not,
Speaker 1: and yet this is where the threats are being reported.
Speaker 1: We heard years after the Sandy Hook shooting, when the
Speaker 1: FBI finally released their full analysis, we heard that the
Speaker 1: shooter in the in the at Sandy Hook Elementary had
Speaker 1: threatened to do exactly what he ended up doing. It
Speaker 1: was reported to local law enforcement, and they didn't think
Speaker 1: there was anything they could do. They didn't have this
Speaker 1: type of training. So, first and foremost, I want to
Speaker 1: start yesterday and get threat assessment training, threat investigations training
Speaker 1: to every police department and and sheriff's office in the country.
Speaker 1: Congress can make that happen. Just got about a minute
Speaker 1: or so left here. We are curious about the time
Speaker 1: you spent in the Secret Service and what that was
Speaker 1: like and how that kind of makes you think about
Speaker 1: what threats are, what realistic threats are, um how that
Speaker 1: kind of has affected your thinking, And again, just got
Speaker 1: about a minute or so. It was a wonderful experience,
Speaker 1: in large part because it showed me firsthand how much
Speaker 1: we can prevent acts of violence, and often in ways
Speaker 1: that we don't expect. So Secret Service agents handling active
Speaker 1: threat cases people threatening to assassinate often worked more like
Speaker 1: social workers to connect with that would be assassin, to
Speaker 1: find out what the underlying problem is, to give them
Speaker 1: off that pathway to violence, and and really establish a
Speaker 1: relationships to get them into care and support. Was fascinating
Speaker 1: to watch, an incredible mission that they're part of our
Speaker 1: thanks to Dr Mercer Randazzo, Executive Director of Threat Management
Speaker 1: and on TICK. We should note that Speaker Nancy Pelosi
Speaker 1: announced Thursday at the House of Representatives will vote on
Speaker 1: a gun control bill package this coming week. And that
Speaker 1: wraps up the weekend edition of Bloomberg Business Week from
Speaker 1: Bloomberg Radio Thank you so much for joining us. I'm
Speaker 1: Carol Masser and I'm Tim Stanevik. Be sure to tune
Speaker 1: into Bloomberg Business Week Monday through Friday. It starts at
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Speaker 1: Have a great weekend, everyone, stay safe. Everyone is Bloomberg