WEBVTT - Bloomberg Businessweek Weekend - July 26th, 2024 0:00:02.440 --> 0:00:07.520 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.400 --> 0:00:12.799 This is Bloomberg business Week inside from the reporters and 0:00:12.960 --> 0:00:16.520 editors who bring you America's most trusted business magazine, plus 0:00:16.600 --> 0:00:20.760 global business, finance and tech news. The Bloomberg Business Week 0:00:20.800 --> 0:00:25.720 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:26.600 --> 0:00:29.720 Hi, everyone, Welcome to the Bloomberg Business Week Weekend podcast. 0:00:29.920 --> 0:00:33.199 From the opening ceremony of the twenty twenty four Olympics 0:00:33.200 --> 0:00:36.200 in Paris and a tech sell off that on Wednesday 0:00:36.240 --> 0:00:39.159 wiped away one trillion dollars in market value from the 0:00:39.240 --> 0:00:42.800 Nasdaq one hundred to a strong USGDP report and a 0:00:42.840 --> 0:00:45.720 flood of corporate earnings, including the first of the Magnificent 0:00:45.800 --> 0:00:48.200 Sevens to report. Tim this past. 0:00:47.880 --> 0:00:50.120 Week, it was a lot, It really was. 0:00:50.440 --> 0:00:51.880 You didn't even I'm tired. 0:00:52.120 --> 0:00:53.520 I didn't even mention politics. 0:00:53.920 --> 0:00:54.840 Oh yeah, there is that. 0:00:54.960 --> 0:00:56.080 Nothing happened in there. 0:00:55.960 --> 0:00:59.480 Yeah, nothing happened. Hey, I'm on the business side of things. 0:00:59.520 --> 0:01:02.160 This first, what you need to know about results from 0:01:02.480 --> 0:01:05.000 at least one of the mag sevens alphabet and then 0:01:05.080 --> 0:01:08.160 with a snapshot on the consumer side, Whirlpool CEO on 0:01:08.200 --> 0:01:10.960 the quarter end, whether or not the company's in play. 0:01:11.120 --> 0:01:13.760 All right, everybody, we mentioned the Olympics. They are underway 0:01:13.800 --> 0:01:17.680 in Paris. We are already setting our sites on twenty 0:01:17.760 --> 0:01:20.280 twenty eight, when the games are in Los Angeles. So 0:01:20.319 --> 0:01:22.160 too is the city of Oklahoma. 0:01:22.280 --> 0:01:24.160 Wait, what we're gonna explain? 0:01:24.360 --> 0:01:26.600 All of that to come? We begin, though, with one 0:01:26.640 --> 0:01:29.160 of the big earnings of the week. Alphabet, the parent 0:01:29.200 --> 0:01:33.080 company of Google, saw shares drop after it's sunk more 0:01:33.160 --> 0:01:37.840 resources into its drive to outmatch rivals in AI, fueling 0:01:37.920 --> 0:01:40.000 spending higher than analysts expected. 0:01:40.080 --> 0:01:42.160 We love AI, we don't love AI. Don't do it 0:01:42.160 --> 0:01:43.960 too much? Do it a lot? What should we do? 0:01:44.000 --> 0:01:45.959 That's kind of where we are, all right? Even so, 0:01:46.080 --> 0:01:49.560 Bloomberg Intelligence senior tech industry analystman Deep Singh says Alphabet 0:01:49.600 --> 0:01:52.160 could see margin improvement in the second half despite the 0:01:52.200 --> 0:01:53.200 CAPEX concern. 0:01:53.560 --> 0:01:57.720 I think search once again performed very well. It was 0:01:57.800 --> 0:02:02.880 better than consensus. And with Alphabet, whenever search beats consensus, 0:02:03.280 --> 0:02:06.280 you know the operating margin beat will come. And that 0:02:06.440 --> 0:02:10.200 was the same here. The only number that disappointed was 0:02:10.240 --> 0:02:11.720 a YouTube ass revenue. 0:02:11.760 --> 0:02:12.320 That was surprising. 0:02:12.520 --> 0:02:13.840 And I watched a lot of YouTube. 0:02:13.880 --> 0:02:16.320 I don't know what tell us one because you can 0:02:16.360 --> 0:02:17.320 pay to get rid of the ass. 0:02:17.360 --> 0:02:20.160 Yeah, we watched so up until last quarter they made 0:02:20.160 --> 0:02:24.440 it up through better YouTube subscription sales. Now that doesn't 0:02:24.480 --> 0:02:27.400 seem to be the case because the YouTube subscription number 0:02:27.440 --> 0:02:30.919 is reported alongside the app store revenue, so it's hard 0:02:31.000 --> 0:02:34.480 to unpack whether that was the weak part or the 0:02:34.520 --> 0:02:37.360 app store revenue was a weak link. But clearly YouTube 0:02:37.480 --> 0:02:39.480 was a disappointing segment and the. 0:02:39.440 --> 0:02:42.360 Results investors don't seem that disappointed. I mean, shares of 0:02:42.639 --> 0:02:46.600 Google right now, they're bouncing between red and grain, but 0:02:46.720 --> 0:02:49.520 I mean we're talking small moves, and look, is this 0:02:49.639 --> 0:02:51.639 like a kind of Hoham earnings report? 0:02:51.760 --> 0:02:55.959 I think, Look when I look at search growing mid teens, 0:02:56.280 --> 0:02:59.000 that just tells me, you know, a company with two 0:02:59.040 --> 0:03:02.280 hundred billion dollars run rate in search business ninety percent 0:03:02.360 --> 0:03:05.359 market share still manages to grow double did. 0:03:05.200 --> 0:03:08.560 So it's it's experimental. AI is working, it's. 0:03:08.400 --> 0:03:13.800 Working, and it's maintaining market share despite competition from Chat, gpt. 0:03:13.800 --> 0:03:16.440 Being, you name it. Everyone keeps talking about. 0:03:16.520 --> 0:03:19.480 They just said being is there really competition from being? 0:03:19.520 --> 0:03:22.600 Well, Bing has integrated chat cipt now, so that was 0:03:22.639 --> 0:03:24.200 what Satyannadella was most. 0:03:24.120 --> 0:03:27.200 Excited about I am curious about the lack of ads 0:03:27.240 --> 0:03:29.480 that I see when I look for when I do 0:03:29.520 --> 0:03:31.760 a Google search and I see the experimental AI result, 0:03:31.880 --> 0:03:33.400 it doesn't seem like they're making money from me. 0:03:33.639 --> 0:03:36.840 Yeah, but if you go back in time, Google only 0:03:36.920 --> 0:03:42.120 monetized seventy like seventy percent of their queries are not monetized, 0:03:42.160 --> 0:03:43.920 only thirty percent hour monetized. 0:03:44.120 --> 0:03:44.680 And that too. 0:03:44.760 --> 0:03:48.400 It's a very keyword driven business, so you know, people 0:03:48.480 --> 0:03:51.320 bid up for keywords. That's what drives the ad pricing. 0:03:51.360 --> 0:03:54.640 And in this case, you know, unlike social media that 0:03:54.720 --> 0:03:58.600 can increase ad loads, Google is not increasing ad loads. 0:03:58.920 --> 0:04:03.040 It's still key driven, and they're able to maintain that share, 0:04:03.640 --> 0:04:06.960 you know, despite Chat GPT coming in and for certain queries, 0:04:07.040 --> 0:04:10.040 I'm sure people are going more to chat ChiPT then 0:04:10.080 --> 0:04:13.240 coming to traditional search. But I mean, I think Google 0:04:13.280 --> 0:04:16.480 has a competing offering with Gemini Advance and that will 0:04:16.520 --> 0:04:20.080 be a subscription revenues stream down the line. So in short, 0:04:20.160 --> 0:04:23.320 they've been able to maintain their market share despite all 0:04:23.400 --> 0:04:25.120 the threat and I think that's good news. 0:04:24.880 --> 0:04:27.560 For Stock is down about one percent here in the aftermarket, 0:04:27.600 --> 0:04:29.880 but it's been bouncing around. Stocks up about thirty percent 0:04:30.000 --> 0:04:32.360 year to day forward pe of twenty four, Alphabet is 0:04:32.360 --> 0:04:35.279 game more than sixteen percent. Since it's blowout first quarter 0:04:35.360 --> 0:04:38.000 report and Red Brann, I want to bring you into 0:04:38.040 --> 0:04:40.360 it watching it as well, you know, join the conversation 0:04:40.400 --> 0:04:42.280 here with Mandeep. I mean, I'm wondering too if this 0:04:42.320 --> 0:04:45.080 is a quarter that you know safely easily lives up 0:04:45.080 --> 0:04:45.920 to expectations. 0:04:46.000 --> 0:04:47.640 I think man deep rely hit on the Obviously, the 0:04:48.000 --> 0:04:50.120 two biggest things that jumped off the page to me 0:04:50.160 --> 0:04:52.640 as well, which was search and YouTube coming in a 0:04:52.640 --> 0:04:55.400 little softer. But the other thing that's really jumping out 0:04:55.400 --> 0:04:57.920 to me is actually kaebacs. If we think about, you know, 0:04:57.960 --> 0:05:02.040 how are they competing with these other companies on gen Ai. 0:05:02.640 --> 0:05:05.720 That's where we'll see that investment. And from what I 0:05:05.760 --> 0:05:07.919 can see, Capex coming thirteen billion, that's I think the 0:05:07.920 --> 0:05:10.920 biggest ever for Alphabet. I think that kind of really 0:05:10.960 --> 0:05:13.919 speaks to where they are headed and kind of another 0:05:14.000 --> 0:05:15.919 doubling down on this commitment and it seems to be 0:05:15.920 --> 0:05:21.160 paying off. So between the search business continuing to grow 0:05:21.200 --> 0:05:23.920 despite its size. Yeah, definitely interesting there. 0:05:24.040 --> 0:05:26.520 I just wanted to since he brought up Capex. You know, 0:05:26.640 --> 0:05:30.000 Capex is directly related to their cloud revenue. So the 0:05:30.080 --> 0:05:34.040 fact that cloud sales grew twenty nine percent, that capex 0:05:34.120 --> 0:05:37.400 is paying off and you know money well spent, basically 0:05:37.640 --> 0:05:41.240 money well spent. And actually cloud margins grew six hundred 0:05:41.279 --> 0:05:44.600 and fifty basis points. So for the longest time Alphabet 0:05:44.720 --> 0:05:47.800 was criticized because cloud wasn't making money, it was a 0:05:47.839 --> 0:05:51.000 drag on profitability. Well guess what, in just the past 0:05:51.040 --> 0:05:54.360 two three quarters they have shown over five hundred basis 0:05:54.360 --> 0:05:58.120 point of margin expansion in the business. And that seems 0:05:58.120 --> 0:06:00.840 to be the trend I think based on the they're 0:06:00.880 --> 0:06:02.160 saying this will continue. 0:06:02.200 --> 0:06:03.839 Well, this is what we always talk about, right because 0:06:03.839 --> 0:06:07.919 they behind what Microsoft and Amazon right have lagged in 0:06:08.000 --> 0:06:11.400 terms of the cloud. This shows what that they're making progress. 0:06:11.600 --> 0:06:14.720 Well, they had a slower start, so they were always 0:06:14.800 --> 0:06:17.680 the third player, the distant third player. But look at 0:06:17.720 --> 0:06:20.800 the cloud revenue run right now forty billion dollars. Compare 0:06:20.839 --> 0:06:24.480 that to Microsoft Azure seventy six billion and Amazon Aws 0:06:24.480 --> 0:06:27.400 one hundred billion. But at least they are growing thirty percent. 0:06:27.839 --> 0:06:30.960 So we'll find out whether Microsoft Azure is also growing 0:06:30.960 --> 0:06:34.320 thirty percent, but we know Amazon Aws is growing seventeen percent, 0:06:34.720 --> 0:06:38.200 so clearly their faster growth will help them narrow that. 0:06:38.200 --> 0:06:42.080 Gap and deep speaking of AWS and Microsoft, what do 0:06:42.160 --> 0:06:44.400 these results tell you about what we should expect for 0:06:44.480 --> 0:06:46.400 those companies when they report later this this quarter. 0:06:46.640 --> 0:06:49.640 I think for Microsoft Azure again, it's going to be 0:06:49.680 --> 0:06:52.760 a very strong quarter. You will see more than thirty 0:06:52.800 --> 0:06:57.360 percent growth. And Microsoft actually quantifies the contribution from generative 0:06:57.400 --> 0:07:01.800 AI workloads last quarter was seven percentage points. I'm expecting 0:07:01.839 --> 0:07:05.359 it will be slightly hired this quarter, but clearly that's 0:07:05.440 --> 0:07:08.400 where it spend is going is in you know, the 0:07:08.440 --> 0:07:11.960 generative AI workloads. And I think Microsoft will do better 0:07:12.000 --> 0:07:15.040 than Ada BLUs because Ada BLUs has been coming from 0:07:15.120 --> 0:07:16.880 behind when it comes to generative AIS. 0:07:17.000 --> 0:07:19.120 Okay, it's not just Alphabet, but one company that is 0:07:19.120 --> 0:07:21.760 seeing a more significant reaction. Adjusted earnings per share for 0:07:21.760 --> 0:07:23.520 the second quarter missed the average channel in the estimate. 0:07:23.520 --> 0:07:26.120 They're also getting quite a bit of information on the 0:07:26.360 --> 0:07:29.640 in from the long presentation about how many cars they 0:07:29.640 --> 0:07:31.559 plan to deliver, fewer than the one point eight million 0:07:31.600 --> 0:07:34.240 cars they delivered in twenty twenty three. I know you 0:07:34.280 --> 0:07:36.280 guys are here to talk about Alphabet, but we can't 0:07:36.320 --> 0:07:38.080 let you leave without talking a little bit about what 0:07:38.120 --> 0:07:40.000 we saw with Tesla, Mandy, what sticks out to you. 0:07:40.200 --> 0:07:42.880 I mean, look, with Tesla, the fact that they shifted 0:07:42.920 --> 0:07:46.680 out the robotaxi event. That's where all the excitement was. 0:07:46.960 --> 0:07:49.520 And you know right now, I mean they don't have 0:07:49.560 --> 0:07:52.680 a near term catalyst. Everyone is excited about AI. That 0:07:52.840 --> 0:07:54.880 is where they could have shown their AI. I mean, 0:07:54.920 --> 0:07:58.160 I know, humanoid robots are also a big deal, but 0:07:58.360 --> 0:08:01.800 they gave a date and then backed off. So to me, 0:08:02.360 --> 0:08:04.440 you know, if that's that was never a good sign 0:08:04.480 --> 0:08:05.320 going into the print. 0:08:05.440 --> 0:08:06.240 What about for you read? 0:08:06.280 --> 0:08:08.560 Well, I think it's interesting that the thing to get 0:08:08.600 --> 0:08:10.280 excited about is kind of this pie and the sky 0:08:10.920 --> 0:08:12.960 idea of a robotaxi that no one has really been 0:08:12.960 --> 0:08:15.640 able to successfully monetize yet. I think that kind of 0:08:15.680 --> 0:08:17.360 speaks to where the company is at, maybe get in 0:08:17.360 --> 0:08:19.880 a little bit away from its true mission, which has 0:08:19.880 --> 0:08:21.160 always been selling evs. 0:08:22.440 --> 0:08:22.640 You know. 0:08:22.760 --> 0:08:24.720 But I think there are some positives to take away 0:08:24.720 --> 0:08:27.560 from the support. They did improve. They did actually beat 0:08:27.560 --> 0:08:30.040 gross marchin expectations. I think that's gonna be really important 0:08:30.080 --> 0:08:32.920 for investors going forward, is how can this company continue 0:08:32.920 --> 0:08:36.280 to trim expenses if they aren't going to be seeing 0:08:36.320 --> 0:08:38.640 really aggressive top line growth as they were in the past, 0:08:38.720 --> 0:08:41.080 So good to see them focusing there on improving the 0:08:41.080 --> 0:08:42.000 efficiency a little bit. 0:08:42.040 --> 0:08:44.840 All right, So just to wrap up, top question for 0:08:44.880 --> 0:08:47.040 Tesla that you would make on the call real quickly. 0:08:48.000 --> 0:08:50.400 I mean, it's got to be the roadmap to continuing 0:08:50.600 --> 0:08:53.319 Where where does this robotaxi? When, where is the robotaxi, 0:08:53.400 --> 0:08:55.920 when is it coming? And again where the is there 0:08:55.960 --> 0:08:57.880 anywhere we can continue trim costs we've read. 0:08:57.960 --> 0:09:00.400 Just show me the robotax that elon that I want. 0:09:00.240 --> 0:09:01.880 To know about, the mass market car that's going to 0:09:01.880 --> 0:09:02.560 like sell tons on. 0:09:02.600 --> 0:09:03.480 Some model three. 0:09:03.640 --> 0:09:04.680 Yeah, I guess I don't know. 0:09:04.960 --> 0:09:05.960 I'm ahead. 0:09:06.120 --> 0:09:11.359 Investors care about FSD software attach rate. That's where the margins. 0:09:11.840 --> 0:09:12.800 Attach rate real quick. 0:09:12.840 --> 0:09:17.320 So attach rate is any Tesla av owner that buys 0:09:17.360 --> 0:09:20.520 the software, so you know attaches. If I end up 0:09:20.559 --> 0:09:24.280 buying twelve thousand dollars of FSD software for autonomous driving, 0:09:24.720 --> 0:09:28.160 that's like ninety percent plus growth margin. That's what investors 0:09:28.200 --> 0:09:31.319 get excited about Tesla because they think that bramp will 0:09:31.320 --> 0:09:33.400 continue to grow, the attachmate will continue. 0:09:33.080 --> 0:09:35.120 The software company. We got a car, come ten seconds. 0:09:35.200 --> 0:09:37.520 Top question for alphabet on the call alphabet. 0:09:37.600 --> 0:09:41.560 It's really about cloud growth. I mean, how fast can 0:09:41.600 --> 0:09:44.880 it grow and how long the durability of that cloud growth. 0:09:44.920 --> 0:09:47.720 The thirty percent cloud growth unbelievable. 0:09:47.800 --> 0:09:50.360 Men deep saying a Bloomberg Intelligence and Bloomberg News earnings 0:09:50.360 --> 0:09:51.959 are put a red brown. Guys, thank you so much, 0:09:52.000 --> 0:09:54.360 so appreciate it. This is Bloomberg Business Week. 0:09:55.720 --> 0:09:59.160 You're listening to the Bloomberg Business Week podcast. Catch Just 0:09:59.320 --> 0:10:02.680 Live afternoons from two to five DM Eastern. Listen on 0:10:02.720 --> 0:10:05.280 Apple car Play and and Brout Auto with a Bloomberg 0:10:05.320 --> 0:10:08.520 Business at or watch us live on YouTube. 0:10:09.559 --> 0:10:12.040 Staying with earnings, worl Pool, you know, the owner of 0:10:12.080 --> 0:10:15.920 Maytag and others, lowered its full ear earnings forecast as 0:10:15.920 --> 0:10:19.280 consumers continue to shy away from big ticket appliance purchases 0:10:19.280 --> 0:10:22.440 and at a weakening housing market. Right after earnings crossed, 0:10:22.640 --> 0:10:25.880 we checked in with the chairman presidency of Warlpool, Mark Bitzer. 0:10:26.000 --> 0:10:28.080 We actually feel good about our Q two, you know. 0:10:28.120 --> 0:10:31.360 We we said also after bo Q one call, this 0:10:31.520 --> 0:10:34.400 here is all going to be about margin expansion with 0:10:34.520 --> 0:10:37.840 every quarter, and Q two was a sizable sequential margin 0:10:37.880 --> 0:10:41.520 improvement full point on a global level, led by all 0:10:41.520 --> 0:10:45.720 important North America business which ultimately relied also on getting 0:10:45.720 --> 0:10:48.199 better promotion pricing. So we feel good about the progress 0:10:48.200 --> 0:10:51.760 we made. Yet at the same time, we also, you know, 0:10:51.760 --> 0:10:54.400 knowing the weakness of a housing market which is still 0:10:54.600 --> 0:10:58.000 emphasis on still just there. We don't see the housing 0:10:58.040 --> 0:11:01.240 market recovering as fast as we were reached assumed probably 0:11:01.280 --> 0:11:03.679 like everybody else when we entered the year. So we're 0:11:03.679 --> 0:11:07.160 still forecasting for Q three and Q four Berber margin 0:11:07.240 --> 0:11:10.000 expansion and improvement. So we feel good about the progression. 0:11:10.480 --> 0:11:12.880 It just not happening at the pace which we had 0:11:12.920 --> 0:11:15.200 originally in mind. That the market is not recovering at 0:11:15.200 --> 0:11:17.640 the pace which we already had in mind. But that's 0:11:17.800 --> 0:11:20.199 in my view only question when it happens, not if 0:11:20.200 --> 0:11:22.240 it happens. It will happen, but it just later when 0:11:22.240 --> 0:11:23.160 we originally assumed. 0:11:23.320 --> 0:11:25.600 So you know, I always feel like when we talk 0:11:25.600 --> 0:11:26.960 with you, Mark, you know, we think about like the 0:11:27.000 --> 0:11:30.359 pre pandemic world, the pandemic world, and like our recovery 0:11:31.000 --> 0:11:33.640 in terms of some of the numbers, the consumer trends, 0:11:33.640 --> 0:11:37.400 the buying patterns. Is it below what we saw pre pandemic? 0:11:37.880 --> 0:11:41.200 You know, Carol, you have two almost offsetting trends. One 0:11:41.400 --> 0:11:46.520 is the replacement market, which is very strong ostal volume 0:11:46.600 --> 0:11:50.360 site and that is ultimately tied to increase the client's 0:11:50.480 --> 0:11:54.200 usage following COVID and just all of the in home 0:11:54.240 --> 0:11:56.480 trends and people just spending more time in home. So 0:11:56.720 --> 0:11:59.559 replacement side is very strong. The unfortunate side from a 0:11:59.559 --> 0:12:02.240 business perspective, that typically doesn't come with a rich mix 0:12:02.320 --> 0:12:06.240 because it's not a discretionary purchase. The discretionary side that 0:12:06.440 --> 0:12:09.360 is all tied towards housing existing home sales and new 0:12:09.360 --> 0:12:11.920 home sales, and that's the part which is way soft 0:12:12.000 --> 0:12:15.600 when anybody assumed at this point, and frankly also with 0:12:15.600 --> 0:12:18.000 the numbers which came out yesterday on existing home sales 0:12:18.200 --> 0:12:20.200 put back back to two or eight levels, I mean, 0:12:20.200 --> 0:12:21.720 it's kind of multi decade low. 0:12:22.120 --> 0:12:23.680 And of course that is the part. 0:12:23.559 --> 0:12:25.400 Of a business which tends to come with a richer 0:12:25.440 --> 0:12:27.560 mix for us, and that's the soft part. So you 0:12:27.600 --> 0:12:31.160 have two offsetting trends which kind of overlay. I mean, 0:12:31.360 --> 0:12:33.520 we would, of course going forward, we love to see 0:12:33.520 --> 0:12:35.880 a replacement trend, but at one point you will see 0:12:35.960 --> 0:12:37.440 a recovery of discretionary side. 0:12:37.480 --> 0:12:40.480 We've talked with you about this replacement versus you know, discretionary. 0:12:40.679 --> 0:12:42.840 What's the bigger part of your business? Is there people 0:12:42.920 --> 0:12:47.600 replacing items or saying, hey, I feel like doing this discretionary. 0:12:47.520 --> 0:12:50.160 Right now, the replacement side is well over sixty percent. 0:12:50.320 --> 0:12:52.240 And put that in a storic context, I mean you 0:12:52.320 --> 0:12:54.960 typicate it for multi decades on around fifty or in 0:12:55.040 --> 0:12:58.800 below fifty percent. That doesn't sound like a whole lot, 0:12:58.880 --> 0:13:00.880 but it actually makes it big ference in how and 0:13:00.960 --> 0:13:04.160 how a mix comes through for your overall business. So 0:13:04.200 --> 0:13:07.000 again that's that's you know, we like the volume, but 0:13:07.040 --> 0:13:08.520 it's it's not a very rich mix. 0:13:08.760 --> 0:13:11.040 The biggest part of your your market or the biggest 0:13:11.040 --> 0:13:14.920 part of your business in terms of segments, Refrigeration, laundry, 0:13:15.040 --> 0:13:18.120 cooking a close third. Where are you going to where 0:13:18.120 --> 0:13:19.280 do you see the most growth? 0:13:19.400 --> 0:13:21.679 You know, again, it's right now. Overall it's it's split 0:13:21.679 --> 0:13:24.240 on mechagory. It's large in replacement, so laundry is still 0:13:24.360 --> 0:13:27.360 very strong, Refrigeration, the kitchen is still a little bit 0:13:27.400 --> 0:13:30.319 soft because that comes with a replacement or remodel of 0:13:30.360 --> 0:13:34.040 an entire kitchen. But you know it's it's it's more 0:13:34.080 --> 0:13:38.640 behinhend the entire kitchen suite like Kitchen Aid suite or 0:13:38.720 --> 0:13:41.200 Danner suite, which is right now software when we would 0:13:41.240 --> 0:13:42.800 expect in an rmous cycle. 0:13:43.080 --> 0:13:45.480 All right, so we be remiss by not addressing the 0:13:45.480 --> 0:13:51.040 elephant in the kitchen or if you will. Last month, 0:13:51.080 --> 0:13:55.320 Whirlpool shares, you know, jumped ruterers had reported that Robert 0:13:55.320 --> 0:13:59.040 Bosch was considering a bit for the company that they've 0:13:59.040 --> 0:14:01.120 been pushing, you know, that company's been pushing kind of 0:14:01.120 --> 0:14:04.120 outside its business. Did it make a bit for the company? 0:14:04.160 --> 0:14:05.360 What can you tell us about that? 0:14:05.640 --> 0:14:07.400 Unfortunately, I can't tell you a whole lot more than 0:14:07.400 --> 0:14:10.199 we stated already. Is that we just don't as a policy, 0:14:10.320 --> 0:14:14.040 we don't comment on rumors of market speculation. As you know, 0:14:14.080 --> 0:14:16.800 it's it's been one article out there which triggered a 0:14:16.840 --> 0:14:19.880 lot of noise, and you know, we awesome in the past. 0:14:20.120 --> 0:14:22.000 There were rumors about vote Pool in the past, and 0:14:22.000 --> 0:14:24.160 there will be rumors about Pool going forward. We just 0:14:24.200 --> 0:14:27.400 don't speculate on and comment on this one. So unfortunately, 0:14:27.480 --> 0:14:29.440 I know you were pokem this one, but I can't 0:14:29.440 --> 0:14:30.360 tell you a whole lot. 0:14:30.400 --> 0:14:32.040 I have to poke a little bit more though. Is 0:14:32.080 --> 0:14:35.040 it is it a rumor? I mean, is the company 0:14:35.040 --> 0:14:37.160 for sale at this point, and is that something that 0:14:37.200 --> 0:14:39.360 maybe you've been getting some pressure from investors. 0:14:39.800 --> 0:14:42.880 No, so again it is a rumor and we can't 0:14:42.880 --> 0:14:45.360 comment and we won't comment on this specific rumor. You know, 0:14:45.400 --> 0:14:48.600 but we're public listed company, Carol say by definition, you know, 0:14:48.720 --> 0:14:52.600 very in a certain mayle companies for sale every morning 0:14:52.600 --> 0:14:54.440 at nine thirty stock market opens. 0:14:54.960 --> 0:14:55.200 Right now. 0:14:55.680 --> 0:14:57.600 It's a good deal, you know, but. 0:14:57.560 --> 0:15:00.840 There's sales and then there's sales. You know how this goes. 0:15:01.440 --> 0:15:03.480 You're you're joking about saying it's a good deal. But 0:15:04.120 --> 0:15:06.360 what in your opinion do you think investors are missing 0:15:06.400 --> 0:15:09.120 about the Whirlpool story right now? Down nineteen percent so 0:15:09.200 --> 0:15:09.800 far this year. 0:15:10.160 --> 0:15:12.720 I shouldn't be arrogant about the investor. The market is 0:15:12.760 --> 0:15:16.360 always right. So what I think the argument for wopuld 0:15:16.360 --> 0:15:19.760 to be made is, yes, of course we're still emphasis 0:15:19.800 --> 0:15:22.960 on still in a negative macrocycle, but that will turn 0:15:23.000 --> 0:15:25.440 at one point and built I eve a US housing 0:15:25.480 --> 0:15:27.600 market and that will not be just a you know, 0:15:28.240 --> 0:15:30.920 a short recovery. That will be probably a multi year 0:15:30.960 --> 0:15:34.280 recovery of a housing market. There's literally not a single 0:15:34.320 --> 0:15:38.240 company better position to benefit from the upside where the 0:15:38.320 --> 0:15:41.040 key supplier of eight out of the top ten US builders. 0:15:41.840 --> 0:15:44.240 We're very strong with our portfolio in all the homes. 0:15:44.240 --> 0:15:47.520 So once web market recovers, I think we will be 0:15:47.760 --> 0:15:51.720 a disproportionate beneficiary from a market. And you know that's 0:15:51.880 --> 0:15:53.720 my definition of market is always right. But I would 0:15:53.720 --> 0:15:56.200 say that's the argument, particularly for a long term investor. 0:15:56.320 --> 0:15:59.000 Hey, Mark, we also have to go on that though. 0:15:59.120 --> 0:16:02.080 If the marketerter right, your stock rallied in a big 0:16:02.120 --> 0:16:06.320 way in June on this Reuter's report that Bosh was considering, 0:16:06.400 --> 0:16:07.480 we're still. 0:16:07.080 --> 0:16:09.120 She's still poking. She's poking. 0:16:09.960 --> 0:16:12.160 So if the market's always right that they were excited 0:16:12.200 --> 0:16:14.480 about a deal, does it make sense to you? 0:16:15.640 --> 0:16:20.200 I appreciate your relentless but I can't and I won't 0:16:20.240 --> 0:16:22.040 tell you a whole lot more. Listen, you know there's 0:16:22.240 --> 0:16:24.760 there's always speculation element, but you might get in the 0:16:24.840 --> 0:16:27.080 stock and as you know, there's there's short trade and 0:16:27.280 --> 0:16:29.400 and and people who are kind of not long term 0:16:29.400 --> 0:16:33.280 investors right now. Again, it's we had also these speculation 0:16:33.400 --> 0:16:35.760 rumors in the past and again I expect them also 0:16:36.200 --> 0:16:38.480 in the future, and that's that's just the nature of 0:16:38.480 --> 0:16:41.200 a public there's the company. But again there's no you 0:16:41.240 --> 0:16:43.160 won't get a whole lot more for me on these rumors. 0:16:43.240 --> 0:16:45.280 Okay, Mark, Well, and on something really easy for you 0:16:45.320 --> 0:16:52.240 to answer, US politics. I know, I know, please come 0:16:52.280 --> 0:16:55.160 back after all these questions, we still love you. Please, 0:16:56.000 --> 0:16:58.880 So look, no question front center and a lot of 0:16:59.400 --> 0:17:01.680 a lot of investors' minds and a lot of voters' minds. 0:17:01.680 --> 0:17:04.679 But just very briefly, does it matter to you you 0:17:04.720 --> 0:17:07.360 have a really complicated supply chain, you do some importing. 0:17:08.000 --> 0:17:09.840 Does it matter to you who's in the White House? 0:17:10.520 --> 0:17:10.760 You know? 0:17:10.840 --> 0:17:13.000 You know obviously as you can tell for my accent, 0:17:13.040 --> 0:17:17.520 I should be careful about giving advice on US politics. 0:17:17.720 --> 0:17:20.640 But I also I'm firmly believe as a company we 0:17:20.960 --> 0:17:24.080 encourage our employees to form a political opinion and they 0:17:24.080 --> 0:17:26.600 should vote. But I'm not going to endorse any candidate 0:17:26.680 --> 0:17:29.480 left or right. It just but we strong encourage our 0:17:29.520 --> 0:17:32.480 people to form their opinion, get informed, and vote period. 0:17:33.119 --> 0:17:33.280 Now. 0:17:33.320 --> 0:17:37.880 Of course, with our strong US exposure also the manufacturing side, 0:17:37.880 --> 0:17:41.199 we're not only the last American appliance company, but we 0:17:41.320 --> 0:17:43.880 have by long shot the most jobs in the US 0:17:44.000 --> 0:17:46.920 un appliance manufacturer. Of course, we have a strong vested 0:17:47.040 --> 0:17:50.760 interest in having a competitive and fair level playing field 0:17:51.160 --> 0:17:55.280 as a US producer. So so topics like steel prices etc. 0:17:55.640 --> 0:17:59.359 They matter for us and we're not asking for subsidy 0:17:59.560 --> 0:18:01.720 or this important help. Nope, we just want to be 0:18:01.960 --> 0:18:03.919 fair and we want to be well, you know, we 0:18:03.960 --> 0:18:05.760 don't want to have our arm tied, but one arm 0:18:05.800 --> 0:18:08.640 time behind our back as we fight. We're ready to fight, 0:18:08.680 --> 0:18:11.240 but it needs to be fair and level, and that's 0:18:11.240 --> 0:18:13.920 of course, yes, right, it is a strong best interest 0:18:13.920 --> 0:18:14.359 which we have. 0:18:14.520 --> 0:18:17.000 Well, you're always fair with us, and always we appreciate 0:18:17.040 --> 0:18:20.280 your time. Mark Bitzer be well, so appreciate it. Sharing 0:18:20.320 --> 0:18:23.840 presidency of Whirlpool, Mark Bitzer joining us from Michigan shares 0:18:23.920 --> 0:18:25.760 of Warpool. They've been kicking around a little bit higher, 0:18:25.760 --> 0:18:27.240 a little bit lower in the Aftermark. 0:18:33.680 --> 0:18:37.520 You're listening to the Bloomberg Business Week podcast. Listen live 0:18:37.600 --> 0:18:40.439 each weekday starting at two pm Eastern on Apple car 0:18:40.560 --> 0:18:43.520 Play and Android Auto with the Bloomberg Business App. You 0:18:43.560 --> 0:18:46.800 can also listen live on Amazon Alexa from our flagship 0:18:46.880 --> 0:18:52.359 New York station, Just Say Alexa Play Bloomberg eleven thirty Mittel. 0:18:52.640 --> 0:18:55.800 You know their brands, I mean Barbie, Fisher, Price, Hot Wheels, 0:18:55.840 --> 0:18:59.440 American Girl, many more, I mean iconic toy brands. Well, 0:18:59.480 --> 0:19:02.080 they reported earnings this past week, the stock jumping after 0:19:02.119 --> 0:19:04.440 the toy maker reported second quarter just at earnings per 0:19:04.480 --> 0:19:07.160 share that came in ahead of estimates. Analyst two were 0:19:07.160 --> 0:19:10.679 positive on the results, highlighting the company's gross margin performance, 0:19:10.680 --> 0:19:13.119 which Morgan Stanley said had remained impressive. 0:19:13.640 --> 0:19:16.600 Back to talk about the toy business was enon Chris Mittel, 0:19:16.680 --> 0:19:19.720 chairman and CEO, who we caught up with right after 0:19:19.920 --> 0:19:23.359 Israeli Prime Minister Benjamin Nettanyahu's address to a joint session 0:19:23.400 --> 0:19:26.840 of Congress at the US Capitol, And so we began 0:19:26.880 --> 0:19:29.600 by talking about the war between Israel and Amas and 0:19:29.800 --> 0:19:31.000 geopolitical tensions. 0:19:31.440 --> 0:19:34.120 Well, of course, this is an important part of our 0:19:34.160 --> 0:19:37.679 life these days, especially for me as an Israeli. I 0:19:37.760 --> 0:19:41.360 keep thinking about the hostages and pray for the release 0:19:42.200 --> 0:19:43.160 as soon as possible. 0:19:43.280 --> 0:19:46.240 All right, one more questions on politics, the US race, 0:19:46.280 --> 0:19:49.800 which you know has consumed our world, the November outcome. 0:19:50.200 --> 0:19:53.640 Does it matter for you as someone who runs a company, 0:19:53.640 --> 0:19:57.119 a well known, publicly iconic brand, global company, does it 0:19:57.280 --> 0:19:59.120 matter who's in the White House come November? 0:19:59.160 --> 0:19:59.399 For you? 0:20:00.000 --> 0:20:04.399 Of course, we are following everything very closely the election 0:20:04.560 --> 0:20:09.680 process leading up to the November elections. But as a company, 0:20:09.760 --> 0:20:13.880 we have a long standing history of working with all 0:20:15.119 --> 0:20:18.040 government leaders around the world, not just in the US, 0:20:18.560 --> 0:20:22.920 and we are focused on executing our strategy and confident 0:20:22.960 --> 0:20:28.000 that we can work with everyone across the political spectrum. 0:20:28.119 --> 0:20:31.760 How would your strategy in unchanged if we saw former 0:20:31.800 --> 0:20:34.480 President Trump return to the White House and continue to 0:20:34.520 --> 0:20:38.840 see perhaps an even harsher stance towards China increased tariffs 0:20:38.880 --> 0:20:41.520 for example, that he's talked about, how would that affect 0:20:41.520 --> 0:20:42.560 your business well? 0:20:42.560 --> 0:20:45.520 As a company, our job is to design a flexible 0:20:45.840 --> 0:20:49.199 organization that can respond and react to market changes. And 0:20:49.240 --> 0:20:53.280 I'm not commenting specifically about tariffs or China, but in general, 0:20:53.440 --> 0:20:55.159 this is what we do as a company. We have 0:20:55.240 --> 0:20:58.760 a very strong supply chain, a very versatile business model, 0:20:59.280 --> 0:21:02.000 and we are designed to be able to respond to 0:21:02.359 --> 0:21:06.920 changes in the market in supply chain or a consumer 0:21:07.000 --> 0:21:09.880 tastes for that matter. And this is something that we've 0:21:09.920 --> 0:21:12.480 done a really good job at over the last few 0:21:12.560 --> 0:21:17.239 years to create a flexible and responsive organization that can 0:21:17.480 --> 0:21:20.960 can adjust and operate in different types of environments. 0:21:21.000 --> 0:21:22.800 You know, and what is flexible and responsive mean in 0:21:22.920 --> 0:21:25.960 terms of geography, where is your supply chain right now, 0:21:26.000 --> 0:21:29.399 in terms of in China versus other parts of the world, 0:21:29.680 --> 0:21:32.160 like how much of your products that are sold around 0:21:32.200 --> 0:21:34.440 the world are made in China versus other countries. 0:21:34.920 --> 0:21:37.360 In China we make less than a half of our 0:21:37.440 --> 0:21:41.000 product today. Industry average is about eighty to eighty five percent, 0:21:41.080 --> 0:21:44.480 so we're indexed meaningfully less in the industry. And we 0:21:44.640 --> 0:21:49.840 continue to diversify manufacturing footprint. This is not necessarily in 0:21:49.920 --> 0:21:54.280 response to any political risk, but as a company, our 0:21:54.400 --> 0:21:56.960 job is to create that flexibility. So we continue to 0:21:56.960 --> 0:22:01.760 diversify our manufacturing footprint, our own factories and some of 0:22:01.800 --> 0:22:05.720 the vendors that we work with across a different geographist 0:22:05.840 --> 0:22:08.639 to make sure that we have the right capabilities and 0:22:08.800 --> 0:22:15.040 still the ability to mobilize resources and adjust to opportunities, 0:22:15.480 --> 0:22:19.240 as well as any changes in cost structure, in tariffs 0:22:19.280 --> 0:22:22.800 and capabilities that we are looking to continue to add 0:22:23.240 --> 0:22:25.040 to strengthen our offering. 0:22:25.240 --> 0:22:27.639 All right, so, as promised, let's get to the quarter. 0:22:27.720 --> 0:22:29.680 Let's get to the business. So talk to us about 0:22:29.720 --> 0:22:32.520 the quarter that was in the outlook, tell us about 0:22:32.640 --> 0:22:36.200 where you are feeling real strength where you're feeling some challenges. 0:22:36.440 --> 0:22:39.120 Well, this was a good second quarter and a good 0:22:39.160 --> 0:22:42.960 second half of first half of Mattel with significant growth, 0:22:43.040 --> 0:22:47.760 margin expansion, and improve profitability. We continue to strengthen our 0:22:47.800 --> 0:22:50.800 balance sheet and more than double free cash flow in 0:22:50.880 --> 0:22:56.160 the trailing twelve months. The industry performed better than anticipated, 0:22:56.520 --> 0:23:00.199 better than we anticipated, and Mattel gains shared globally in 0:23:00.240 --> 0:23:02.080 the second quarter and the first half. 0:23:02.280 --> 0:23:03.800 You talked about it before. 0:23:04.240 --> 0:23:07.360 Carol and tim ibelleve We spoke about how we continue 0:23:07.400 --> 0:23:11.600 to position the company for growth. We expect to grow 0:23:11.680 --> 0:23:15.239 in the second half of the year and reiterated a 0:23:15.280 --> 0:23:16.880 full yier guidance for the company. 0:23:17.040 --> 0:23:18.960 Looking ahead, we expect. 0:23:18.640 --> 0:23:21.840 To outpace the industry, continue to gain more share in 0:23:21.880 --> 0:23:25.639 twenty twenty four, and grow sales and earnings in twenty 0:23:25.680 --> 0:23:26.280 twenty five. 0:23:26.520 --> 0:23:28.400 So talk to us about some of the different brands. 0:23:28.600 --> 0:23:31.280 Fisher Price launching something I grew up with, Big Time 0:23:31.840 --> 0:23:34.960 launching its new line Fisher Price would recently. How is 0:23:35.000 --> 0:23:38.159 that being received by retailers and by consumers and do 0:23:38.200 --> 0:23:41.760 you anticipate that this could be maybe a really top 0:23:41.800 --> 0:23:43.200 seller come the holidays. 0:23:43.600 --> 0:23:47.320 Fisher Price is such an incredible brand. It will be 0:23:47.359 --> 0:23:51.600 celebrating its ninety fourth anniversary this year. Fisher Price grew 0:23:51.600 --> 0:23:55.240 eleven percent in the second quarter, reflecting the early success 0:23:55.440 --> 0:23:58.679 of our new strategy, which is working well. We expect 0:23:58.720 --> 0:24:01.600 Fisher Price to grow in in the second half to 0:24:01.680 --> 0:24:05.560 grow for the full year, driven by a new line 0:24:05.680 --> 0:24:08.480 of the woods segment that you mentioned that we're now 0:24:08.520 --> 0:24:12.960 expanding globally, more core lines product that are growing, and 0:24:13.080 --> 0:24:16.240 new franchises that we're adding to a little people collector. 0:24:16.880 --> 0:24:20.000 The brand is just so much part of culture and 0:24:20.080 --> 0:24:24.800 has great trust by parents and families. We in terms 0:24:24.840 --> 0:24:28.639 of performance in the category, outperformed the industry gain share 0:24:28.920 --> 0:24:31.320 in the infant toddler in preschool category in the second 0:24:31.400 --> 0:24:34.800 quarter and the first half and was the number one 0:24:34.960 --> 0:24:38.159 with Mattel was the number one toy company globally in 0:24:38.200 --> 0:24:38.879 the category. 0:24:39.160 --> 0:24:41.680 You know, and what about Hot Wheels growth and growth 0:24:41.720 --> 0:24:44.200 spellings for Hot Wheels was relatively weak in the second quarter. 0:24:44.640 --> 0:24:47.000 Give us an idea of the catalyst. Tell the investing 0:24:47.040 --> 0:24:50.080 audience about the catalyst for a rebound for the holiday 0:24:50.119 --> 0:24:52.000 selling season and if there are any new products or 0:24:52.359 --> 0:24:54.359 advertising come in to help push it. 0:24:54.680 --> 0:24:57.200 Hotwells is another incredible brand. 0:24:57.359 --> 0:25:00.440 Hot Wheels is on track for its seventh concent secutive 0:25:00.600 --> 0:25:03.960 record year. We couldn't be more excited and confident about 0:25:04.080 --> 0:25:07.359 where Hot Wheels is growing. It grew in the second 0:25:07.440 --> 0:25:10.720 in the second quarter five percent, with more activation planned 0:25:10.720 --> 0:25:14.520 for the second half. We're growing the adult collector line 0:25:14.600 --> 0:25:17.840 and more adult product. We brought any distribution globally for 0:25:19.080 --> 0:25:21.679 Hotwells specifically as well as the rest of the portfolio, 0:25:22.240 --> 0:25:25.040 and we expect to accelerate growth in the RC and 0:25:25.080 --> 0:25:30.359 skate lines, and of course have another season of Hot 0:25:30.359 --> 0:25:34.480 Wheels Let's Race on Netflix that is launching this fall. 0:25:34.880 --> 0:25:39.199 So great product activated by more content and just a 0:25:39.240 --> 0:25:42.000 great line by Hot Wheels on track for its seventh 0:25:42.040 --> 0:25:43.840 consecutive year of growth. 0:25:43.880 --> 0:25:46.480 All right, so Hot Wheels for guys and gals or kids, 0:25:46.520 --> 0:25:49.200 boys and girls, but also Barbie for boys and girls 0:25:49.240 --> 0:25:51.639 whoever wants it. But let's talk Barbie, which is another 0:25:51.680 --> 0:25:54.520 one of the iconic brands, you know, and I'm certainly 0:25:54.560 --> 0:25:58.640 of Mattel Barbie brand. I'm looking at the second quarter right, 0:25:58.720 --> 0:26:01.040 sales held back by a six percent decline in global 0:26:01.080 --> 0:26:05.240 billings for the company's flagship dolls segment, which includes Barbie, 0:26:05.400 --> 0:26:08.560 Toughier over your comparisons in the second half. What are 0:26:08.560 --> 0:26:10.840 you continuing to see in terms of the impact that 0:26:10.840 --> 0:26:13.199 that has had on the Barbie line, and do you 0:26:13.200 --> 0:26:15.280 expect the brand to return to growth maybe next year. 0:26:15.640 --> 0:26:20.000 Barbie is an incredible brand that never sits still, and 0:26:20.040 --> 0:26:24.080 the movie expanded the audience even more. As you would imagine, 0:26:24.400 --> 0:26:27.760 Barbie was the number one doll property globally and continued 0:26:27.800 --> 0:26:30.560 to gain share in the second quarter this year, we're 0:26:30.560 --> 0:26:36.439 celebrating Barbie's sixty fifth anniversary with multiple activations and a 0:26:36.480 --> 0:26:39.520 new brand campaign that we're launching in the fall. We're 0:26:39.560 --> 0:26:42.760 launching also new segments supported by more shelf space in 0:26:42.840 --> 0:26:46.160 the second half, so Barbie will have even more reach 0:26:48.320 --> 0:26:52.200 in the marketplace. We're launching new offering for adult collectors 0:26:52.200 --> 0:26:54.760 as well as we did for Hot Wheels, and there 0:26:54.800 --> 0:26:59.600 will be more content on Netflix targeting the kid's audience. 0:27:00.119 --> 0:27:04.280 Arby has consistently gained global share and continued to strengthen 0:27:04.320 --> 0:27:08.160 its position as the leader in the dolls category. And 0:27:08.240 --> 0:27:12.480 you know, Carol, yeah, very few brands have the cultural 0:27:12.600 --> 0:27:16.080 relevance as Barbie, and we couldn't be more confident about 0:27:16.119 --> 0:27:19.919 the incredible franchise. But this incredible franchise and where it 0:27:19.960 --> 0:27:20.760 will go from here. 0:27:21.080 --> 0:27:24.000 I am curious about American Girl where it still fits 0:27:24.040 --> 0:27:28.440 into your portfolio, because it's interesting, it has evolved, and 0:27:28.520 --> 0:27:30.199 we kind of went back to the beginning of the 0:27:30.240 --> 0:27:32.919 brand when it before it was even owned by you guys, 0:27:33.080 --> 0:27:37.640 about that it really taught young individuals, young women, young 0:27:37.760 --> 0:27:41.120 girls about history, and you know, they were very much 0:27:41.160 --> 0:27:43.200 tied to it. Now you've got a gap American Girl, 0:27:43.240 --> 0:27:47.520 You've got Disney collaborations. What's the thinking around American Girl. 0:27:47.880 --> 0:27:51.160 American Girl is a valued asset within the Mattel portfolio 0:27:51.680 --> 0:27:56.040 with significant fan base and great product. American Girl rule 0:27:56.119 --> 0:27:58.840 for the second quarter in a row, and we saw 0:27:59.160 --> 0:28:02.720 how America Girl is outpressing the industry in the large 0:28:02.720 --> 0:28:08.320 old category and the overall dull category, especially in the 0:28:08.359 --> 0:28:12.120 eighteen inch dolls and was up double digit. We saw 0:28:12.119 --> 0:28:16.439 the flapship flagship stores up, especially the new store in 0:28:16.640 --> 0:28:20.600 LA that was up high double digit. And we continue 0:28:20.640 --> 0:28:23.520 to optimize the Rettle footprint to make sure that we 0:28:23.600 --> 0:28:28.239 are creating a holistic omni channel experience for fans. And 0:28:28.280 --> 0:28:31.520 as you say, part of the success is how we 0:28:31.640 --> 0:28:35.600 evolve the brand and how we infuse brand purpose but 0:28:35.720 --> 0:28:38.960 also cultural relevance. And this is part of our secret 0:28:39.000 --> 0:28:42.000 source in the Mattel Playbook, and how we continue to 0:28:42.040 --> 0:28:45.840 stay relevant and take brands that are timeless and make 0:28:45.880 --> 0:28:50.880 them timely and reach and engage consumers today and touch 0:28:51.240 --> 0:28:55.440 fans everywhere, touch their heart and mind and do things 0:28:55.440 --> 0:28:59.200 that really matter in society and engage fans at an 0:28:59.240 --> 0:29:00.000 emotional level. 0:29:00.000 --> 0:29:01.360 I have to ask you, I know there's been a 0:29:01.360 --> 0:29:03.080 Wall Street Barbie. I don't know that there's been an 0:29:03.080 --> 0:29:06.200 American girl who works in investment banking. But having said that, 0:29:07.200 --> 0:29:09.480 a report on Monday that you guys have received a 0:29:09.520 --> 0:29:13.400 takeover approach from el Catterton, the private equity firm backed 0:29:13.400 --> 0:29:16.960 by LVMH. You've come out and said that you believe 0:29:17.000 --> 0:29:19.200 you the company can achieve a higher market value if 0:29:19.200 --> 0:29:22.640 it continues as an independent company. First of all, have 0:29:22.680 --> 0:29:25.240 they approached you and are you open to doing a deal? 0:29:25.520 --> 0:29:28.720 Well, as you would expect, we don't comment on the speculation. 0:29:29.240 --> 0:29:32.120 It's just now in it's just you and me. 0:29:33.120 --> 0:29:35.959 So just between us, just between the three of us. 0:29:36.320 --> 0:29:38.600 What I can say is that we're very confident in 0:29:38.640 --> 0:29:42.560 Motel strategy and our ability to create long term shareholder 0:29:42.640 --> 0:29:44.720 value as a stand alone company. 0:29:45.560 --> 0:29:46.560 This is what we're doing. 0:29:46.600 --> 0:29:48.920 You're seeing it in the quarter, you're seeing it at 0:29:48.920 --> 0:29:51.560 the start of this year, and you're seeing it since 0:29:51.560 --> 0:29:53.720 the start of the ten around in twenty eighteen. 0:29:53.960 --> 0:29:54.960 It's in the numbers. 0:29:55.160 --> 0:29:58.560 It's in our growth in top line by a billion dollars. 0:29:58.800 --> 0:30:02.400 It's how we continue to our adjusted growth margin by 0:30:02.480 --> 0:30:05.960 almost one thousand basis points and guide it to a 0:30:06.040 --> 0:30:09.560 higher number another one hundred to one hundred and fifty points. 0:30:09.600 --> 0:30:13.360 This year, adjusted IBIDA grew seven and a half times 0:30:13.760 --> 0:30:16.600 since we started the turn around, and our free cash 0:30:16.600 --> 0:30:19.560 flow went from a negative three hundred and twenty five 0:30:19.600 --> 0:30:23.400 million dollars to more than seven hundred million dollars at 0:30:23.400 --> 0:30:25.480 the end of last year. And of course we are 0:30:25.480 --> 0:30:29.720 now investment grade. It's about creating long term shareholder value 0:30:29.800 --> 0:30:33.160 and we are well positioned to build on our multi 0:30:33.200 --> 0:30:36.400 year trajectory and continue to execute our strategy and expect 0:30:36.480 --> 0:30:39.320 the share price to reflect this over time. 0:30:39.640 --> 0:30:41.080 What would make you do a deal. 0:30:41.320 --> 0:30:45.200 Well, broadly speaking, we are here to create long term 0:30:45.280 --> 0:30:49.400 shareholder value and we do it in every day. This 0:30:49.560 --> 0:30:53.040 is what we focused on and we consistently execute and 0:30:53.080 --> 0:30:56.640 deliver on the strategy. That's what we focused on and 0:30:56.680 --> 0:31:00.160 we believe that we create that value long term sho 0:31:00.240 --> 0:31:02.120 holder value as a standalone company. 0:31:02.480 --> 0:31:06.640 So to that point, Lina Dunham, stepping away from the 0:31:06.640 --> 0:31:08.960 poly Pocket movie, what are your plans for that brand 0:31:08.960 --> 0:31:11.600 and tell us what's the next you know, big screen 0:31:11.680 --> 0:31:13.640 and you know, I think you guys have a ton 0:31:13.680 --> 0:31:16.760 of projects in the works. What can we look forward to. 0:31:17.200 --> 0:31:21.080 As we're very excited by the progress we're seeing in 0:31:21.120 --> 0:31:25.480 our film strategy Mattel Films. Of course, the Barbe movie 0:31:25.520 --> 0:31:28.040 is set the scene, but there's so much more and 0:31:28.400 --> 0:31:33.080 we currently have sixteen projects in the making. We recently 0:31:33.120 --> 0:31:35.360 announced a lot a release date for Masters of the 0:31:35.440 --> 0:31:38.840 Universes would be June fifth of twenty twenty six. We 0:31:38.880 --> 0:31:42.479 announced a new director for Matchbox and a new movie 0:31:43.080 --> 0:31:46.400 for Months to High at Universal with a Kiva Goldsman, 0:31:46.520 --> 0:31:51.240 a two time Oscar winning writer and producer. So there's 0:31:51.280 --> 0:31:56.000 a lot that is going on with everything at Mattel Films. 0:31:56.440 --> 0:32:01.880 The Polly Pocket project is progressing. Lily Collins is still 0:32:01.880 --> 0:32:05.520 attached and we're very excited about how this movie is 0:32:05.560 --> 0:32:09.360 shaping up, as well as the rest of the film 0:32:09.400 --> 0:32:13.000 slate that again is all about It's all about collaborating 0:32:13.040 --> 0:32:16.760 with leading filmmakers to make standout quality movies based on 0:32:16.800 --> 0:32:20.200 our iconic brands that will resonate in culture and appeal 0:32:20.360 --> 0:32:21.880 to global audiences. 0:32:22.040 --> 0:32:23.600 You know, and Ken wants to know, does he get 0:32:23.600 --> 0:32:25.040 a movie? Does he get a movie? 0:32:25.360 --> 0:32:28.560 Of course, we continue to look for opportunities to engage 0:32:28.560 --> 0:32:30.280 bands every way we can. 0:32:30.480 --> 0:32:32.760 And one day maybe you will have a movie as well. 0:32:33.160 --> 0:32:35.480 I'm open, I'm going to count on you. 0:32:35.520 --> 0:32:37.200 Maybe you can help you with the hot wheels on 0:32:37.240 --> 0:32:38.960 your desk. But you gave it to you, gave it to. 0:32:38.920 --> 0:32:43.280 Myself, little cameos in movies, courtesy and Bloomberg programming. You know, 0:32:43.480 --> 0:32:45.200 thank you as well. A lot on your plate, so 0:32:45.240 --> 0:32:47.360 appreciate all the time. You always give us a fine 0:32:47.400 --> 0:32:50.040 for us. Great to check in with you you on cries. 0:32:50.080 --> 0:32:52.600 Of course, folks, he is the CEO and chairman of Mittel. 0:32:53.440 --> 0:32:56.960 You're listening to the Bloomberg Business Week podcast. Catch us 0:32:57.000 --> 0:33:00.360 live weekday afternoons from two to five pm Eastern on 0:33:00.400 --> 0:33:02.960 Apple car Play and then Brout Auto with a Bloomberg 0:33:03.000 --> 0:33:06.640 Business app or watched us live on YouTube. 0:33:06.880 --> 0:33:09.840 The twenty twenty four Summer Olympic Games officially kicked off 0:33:09.840 --> 0:33:12.640 this week in Paris, France. Earlier in the week, the 0:33:12.680 --> 0:33:16.200 International Olympic Committee announced that Salt Lake City, Utah, will 0:33:16.200 --> 0:33:19.719 host the twenty thirty four Winter Olympics. As for the 0:33:19.760 --> 0:33:23.200 next Summer Games, they will be in Los Angeles. 0:33:23.480 --> 0:33:24.240 Here's the kicker. 0:33:24.480 --> 0:33:27.440 Two of the events will not take place in Los Angeles, 0:33:27.440 --> 0:33:31.160 but rather thirteen hundred miles east in Oklahoma City. The 0:33:31.200 --> 0:33:34.480 partnership between the two cities was designed to use Oklahoma 0:33:34.560 --> 0:33:37.440 City's existing sports facilities to keep costs down. 0:33:37.560 --> 0:33:39.880 It's really interesting, So for more on how this partnership 0:33:39.960 --> 0:33:41.840 came to be and to get his take on the 0:33:41.840 --> 0:33:45.600 overall political environment affecting his city, because you know there's 0:33:45.600 --> 0:33:47.360 a lot going on in US politics. You know that 0:33:47.640 --> 0:33:50.240 we were joined by the mayor of Oklahoma City, David Holt, 0:33:50.320 --> 0:33:54.200 who joined us not from Oklahoma City, but stay with 0:33:54.240 --> 0:33:56.760 me from vacation on the Jersey shoe. 0:33:56.880 --> 0:33:58.960 If you're mayor, you're always working, right, it gets you 0:33:59.000 --> 0:33:59.680 go everywhere. 0:34:00.040 --> 0:34:02.160 Talked with him on the heels of the Republican National Convention, 0:34:02.280 --> 0:34:03.760 just to give you an idea in terms of timing. 0:34:04.280 --> 0:34:06.720 Stay with us. It will all make sense in a moment. 0:34:07.040 --> 0:34:08.400 I am on vacation. 0:34:08.520 --> 0:34:12.480 I'm in like the jankiest studio environment ever. But you 0:34:12.560 --> 0:34:16.080 know the city, Our city never rests, nor should the mayor. 0:34:16.239 --> 0:34:19.040 So I had to take this opportunity to talk to 0:34:19.080 --> 0:34:19.880 you guys today. 0:34:19.840 --> 0:34:21.600 And as someone who was born and bred in New 0:34:21.680 --> 0:34:23.960 Jersey still lives in New Jersey, thank you very much 0:34:23.960 --> 0:34:24.440 for being in an. 0:34:24.440 --> 0:34:26.040 Art hero would be at the Jersey Shore right now. 0:34:26.200 --> 0:34:28.280 She didn't have to be here with us right now. 0:34:28.960 --> 0:34:30.080 We're going to get married a. 0:34:30.000 --> 0:34:33.800 Philly girl, So I ended up here, makes sense, makes sense. 0:34:34.120 --> 0:34:35.920 We're going to get to your city being chosen as 0:34:35.960 --> 0:34:38.560 a venue for the twenty twenty eight Los Angeles Olympics. 0:34:38.760 --> 0:34:40.840 But first we're going to start with politics, because you 0:34:40.880 --> 0:34:42.880 are a Republican and you were an aid early in 0:34:42.920 --> 0:34:45.480 your career to Speaker of the House Stennet Hastard. You 0:34:45.520 --> 0:34:47.800 helped re elect George W. Bush in your home state. 0:34:48.040 --> 0:34:50.719 You were in the Oklahoma Senate. Yet you're not at 0:34:50.719 --> 0:34:55.960 the R and C right now. You're on vacation. Why, Oh, well, 0:34:56.000 --> 0:34:56.400 I don't know. 0:34:56.440 --> 0:34:58.960 I guess I haven't been in a while. I there 0:34:59.000 --> 0:35:00.480 was a time of my life when I was a 0:35:00.560 --> 0:35:03.719 delegate to the RNC, and I've been very involved, and 0:35:04.320 --> 0:35:06.719 I served in the White House for President George W. 0:35:06.800 --> 0:35:10.160 Bush for two years in legislative affairs, but I have 0:35:10.880 --> 0:35:13.880 not been a supporter of Trump is im personally. And 0:35:15.320 --> 0:35:17.520 what I love, though, is that I serve in an 0:35:17.560 --> 0:35:20.200 office as the mayor of Oklahoma City where technically I'm 0:35:20.280 --> 0:35:22.680 non partisan. I mean, I recognize when I go on 0:35:22.880 --> 0:35:25.680 you know, national appearances like this, that's hard to process 0:35:25.719 --> 0:35:28.440 and everybody's got to say how I'm registered, and that's fine. 0:35:28.480 --> 0:35:32.080 But you know, all mayors, Republicans, Democrats or independents, we 0:35:32.280 --> 0:35:34.920 really have found that we've just got to bring people together. 0:35:35.000 --> 0:35:38.520 We really can't be partisan. We will work with whoever. 0:35:38.600 --> 0:35:40.759 And in our cities, you know, no matter where you're mayor, 0:35:40.840 --> 0:35:43.839 you're going to have a lot of people who come 0:35:43.880 --> 0:35:46.080 from all those different perspectives and nothing's going to get 0:35:46.120 --> 0:35:48.600 done if you don't find a way to unite people. 0:35:48.880 --> 0:35:51.560 My key focus is serving the people of Oklahoma City, 0:35:51.640 --> 0:35:55.640 and the people of Oklahoma City largely are very purple politically, 0:35:55.760 --> 0:35:58.359 and that's how we get things done. We find ways 0:35:58.360 --> 0:36:00.439 to set aside those things and divide it some fine 0:36:00.480 --> 0:36:01.520 common purpose. 0:36:01.200 --> 0:36:03.200 It's interesting that you say that because we speak with 0:36:03.239 --> 0:36:06.520 Mattie Parker mayor Mattie Parker, the mayor for Worth, quite regularly, 0:36:06.600 --> 0:36:08.200 and she sort of gives a similar answer that she 0:36:08.239 --> 0:36:11.160 has an R by her name, but doesn't necessarily believe 0:36:11.480 --> 0:36:13.640 in the sense of what the National Party is doing. 0:36:13.680 --> 0:36:16.200 And I'm wondering if that makes your job as mayor 0:36:16.600 --> 0:36:19.880 more difficult, or if it's certainly or if it actually 0:36:19.880 --> 0:36:22.040 just doesn't matter, because what you say is you're a 0:36:22.040 --> 0:36:24.799 nonpartisan mayor, but like you said, your pedigree is in 0:36:24.840 --> 0:36:25.880 Republican politics. 0:36:26.360 --> 0:36:28.879 Well, I think you know. I've been mayor for six years. 0:36:28.880 --> 0:36:31.520 Mattie's been in office for several years as well. I mean, ultimately, 0:36:31.560 --> 0:36:34.520 you build trust with your voters, regardless of their registration, 0:36:34.640 --> 0:36:37.799 and I think I've long since passed that threshold with 0:36:37.920 --> 0:36:41.080 people in my city who are not registered Republicans. I 0:36:41.120 --> 0:36:44.919 think Democrats and independence know that they get a very 0:36:45.280 --> 0:36:48.640 pragmatic approach and a very open. 0:36:48.400 --> 0:36:49.160 Door from me. 0:36:49.480 --> 0:36:53.680 So I maybe initially maybe they would have been suspicious that, 0:36:54.680 --> 0:36:56.640 you know, that I was going to be farther to 0:36:56.680 --> 0:36:58.160 the right than they would have liked, but I think 0:36:58.200 --> 0:37:01.560 they have found that again, my sole purpose really is 0:37:01.600 --> 0:37:05.080 to find that that outcome that I think is attainable 0:37:05.120 --> 0:37:07.839 at every level of government, that outcome that represents about 0:37:07.920 --> 0:37:10.319 seventy percent of people in the middle, regardless of their 0:37:10.360 --> 0:37:14.560 party registration. That's essentially what American democracy produced for two 0:37:14.680 --> 0:37:17.320 hundred and thirty years. And it's really only in recent 0:37:17.360 --> 0:37:19.719 times that we've really struggled with that. But I think 0:37:19.760 --> 0:37:23.080 mayors are still practicing this art the way it was 0:37:23.200 --> 0:37:26.479 practiced for two centuries in this country, and we're often 0:37:26.520 --> 0:37:28.640 elected in a way. Maddie and I are both elected 0:37:28.680 --> 0:37:30.640 in a non partisan way that allows us to build 0:37:30.680 --> 0:37:34.600 that coalition. So yeah, I think I've transcended party politics 0:37:34.640 --> 0:37:37.560 in Oklahoma City, and I'm glad to have done so. 0:37:37.840 --> 0:37:40.319 To me, that's how American politics is supposed to work. 0:37:40.440 --> 0:37:43.560 But I do wonder, as a mayor, does it matter 0:37:43.680 --> 0:37:47.120 to you, not personally, but in terms of what you 0:37:47.200 --> 0:37:50.000 ken or can't do ultimately who is in the White 0:37:50.000 --> 0:37:50.920 House come November. 0:37:51.239 --> 0:37:54.160 Sure, I mean largely in Oklahoma City and probably in 0:37:54.200 --> 0:37:56.600 thost cities. You know, we've learned how to be somewhat 0:37:56.600 --> 0:37:59.759 self reliant, but if we can get assistance from the 0:37:59.760 --> 0:38:03.480 Fed government, we like that and we prefer that, you know, 0:38:03.480 --> 0:38:06.280 and we've had some great examples over the last few years. 0:38:06.320 --> 0:38:09.439 We got funding direct funding through the Cares Act, which 0:38:09.520 --> 0:38:12.160 was actually under President Trump, and then we got direct 0:38:12.200 --> 0:38:15.239 funding through ARPA, which was obviously under President Biden, and 0:38:15.280 --> 0:38:19.239 then the Bipartisan Infrastructure Laws is a huge, you know, 0:38:19.320 --> 0:38:22.080 benefit to cities. We've already gotten over one hundred million dollars. 0:38:22.120 --> 0:38:24.200 Other cities have gotten a lot more, and we certainly 0:38:24.560 --> 0:38:26.880 have hopes and expectations of getting a lot more as 0:38:26.920 --> 0:38:29.960 the years advanced. So, you know, the last few years 0:38:29.960 --> 0:38:34.359 have been very beneficial for cities. Again, like if they aren't, 0:38:34.400 --> 0:38:36.880 then we figure out a way to get it done. Anyways, 0:38:36.920 --> 0:38:39.799 but obviously, when we have an administration in the White 0:38:39.840 --> 0:38:43.200 House that sort of pro city understands that, you know, 0:38:43.280 --> 0:38:46.279 American cities are the chief economic and cultural engines of 0:38:46.320 --> 0:38:47.280 the country. 0:38:47.080 --> 0:38:48.760 That does make our life a little easier. 0:38:48.800 --> 0:38:51.759 And we communicate and work together as a nation of 0:38:51.800 --> 0:38:54.400 mayors to the US Conference of Mayors for that reason. 0:38:54.440 --> 0:38:56.360 I mean, we do care what happens in Washington, and 0:38:56.400 --> 0:38:58.520 we like to speak with one voice. I'm actually the 0:38:58.680 --> 0:39:01.200 current vice president of that organization. I'll be the president 0:39:01.800 --> 0:39:06.279 in eleven months, and that's an important opportunity for us 0:39:06.320 --> 0:39:08.440 to speak with one voice in Washington, and we do 0:39:08.480 --> 0:39:08.880 it often. 0:39:09.200 --> 0:39:10.880 Mayor Hold talk to us little bit about what you 0:39:10.880 --> 0:39:12.759 guys are doing for the Olympics, because at first, when, 0:39:13.160 --> 0:39:16.000 to be quite honest, when our producer was laying it 0:39:16.000 --> 0:39:18.320 out for us this morning. 0:39:17.480 --> 0:39:19.880 Hender I saw the tellidrad I was like, what this 0:39:19.960 --> 0:39:23.520 makes no sense to me because the Olympics or in La. 0:39:23.200 --> 0:39:26.720 Right, and so what are you doing? Tell us about 0:39:26.760 --> 0:39:27.640 what you guys are doing. 0:39:28.000 --> 0:39:30.719 Absolutely, and I may just at a macro level kind 0:39:30.719 --> 0:39:33.359 of explained that for thirty years in Oklahoma City, we've 0:39:33.400 --> 0:39:36.600 been making I would say, kind of historic investments in 0:39:36.640 --> 0:39:38.560 our city. I mean it is definitely if you're in 0:39:38.680 --> 0:39:41.360 urban circles you kind of know the Oklahoma City story. 0:39:41.400 --> 0:39:45.399 We've been passing by huge margins, these major initiatives after 0:39:45.480 --> 0:39:48.560 major initiatives, and as a result, it trickles down to 0:39:48.680 --> 0:39:51.279 the two venues I'm going to talk about here in 0:39:51.320 --> 0:39:55.640 a moment. You know, we basically invested in two particular 0:39:55.680 --> 0:39:57.600 sports and ended up kind of being at the right 0:39:57.640 --> 0:40:01.640 place at the right time. We have the world's greatest 0:40:01.640 --> 0:40:05.920 softball stadium that is like, really beyond argument. The second 0:40:06.040 --> 0:40:09.760 largest softball stadium in the world is half the size 0:40:09.760 --> 0:40:12.680 of ours. Like we just doubled down on softball. We 0:40:12.719 --> 0:40:15.440 are now the home of the women's College World Series 0:40:15.800 --> 0:40:18.600 every year, and this is a major capital for if 0:40:18.600 --> 0:40:21.600 not the world capital for softball is right in Oklahoma City. 0:40:21.719 --> 0:40:24.239 The other thing that happened to be fortuitous was we 0:40:24.280 --> 0:40:28.640 made a huge, huge investment in whitewater. We have really 0:40:28.680 --> 0:40:32.400 the only whitewater course west of the Mississippi. And this 0:40:32.520 --> 0:40:35.279 started by putting dams on our river just because thirty 0:40:35.360 --> 0:40:37.480 years ago, just because we were sick of mowing it. 0:40:37.520 --> 0:40:39.920 We wanted some water in our river, our river. We 0:40:39.960 --> 0:40:44.080 wanted a better, aesthetically pleasing body of water. And you know, 0:40:44.120 --> 0:40:47.520 one thing grew from the next, and eventually we had 0:40:47.520 --> 0:40:50.680 this rowing community. Eventually we decided to invest in it 0:40:50.719 --> 0:40:53.920 through Whitewater to kind of have all of the paddel 0:40:53.960 --> 0:40:57.640 sports there on our river, and lo and behold, obviously, 0:40:58.160 --> 0:41:00.600 La gets the twenty twenty eight Olympics. I became really 0:41:00.640 --> 0:41:02.960 good friends with Mary Garcetti back when I got elected 0:41:02.960 --> 0:41:06.040 in twenty eighteen, and late in that year he first 0:41:06.040 --> 0:41:09.400 broached the topics. So it's actually been a six year journey. 0:41:10.360 --> 0:41:14.120 He first broached the topic of hosting Whitewater in Oklahoma City, 0:41:14.120 --> 0:41:16.840 which obviously, so, I mean, I think I'm like most 0:41:17.600 --> 0:41:19.920 you know, people in America and around the world. I mean, 0:41:19.960 --> 0:41:23.240 I consider the Olympics like the brand beyond all beyond 0:41:23.280 --> 0:41:26.239 all other brands. I mean, it transcends sports. So the 0:41:26.280 --> 0:41:29.680 idea of getting that in Oklahoma City was beyond our 0:41:29.719 --> 0:41:33.800 wildest imagination. And six years later now the conversation includes 0:41:33.880 --> 0:41:36.640 softball as well, and LA twenty eight announced a few 0:41:36.640 --> 0:41:39.000 weeks ago that it is their plan to host all 0:41:39.040 --> 0:41:42.360 of the Whitewater sports. It's actually at least six different 0:41:42.360 --> 0:41:45.600 gold medals in all of the softball tournament in Oklahoma City. 0:41:45.600 --> 0:41:48.560 That's nearly two weeks of events. We'd have three hundred athletes, 0:41:48.600 --> 0:41:51.799 two hundred thousand tickets, and you know, an opportunity for 0:41:51.960 --> 0:41:53.520 tens of millions of people in that part of the 0:41:53.520 --> 0:41:56.200 country to have a direct engagement with the LA Olympics. 0:41:56.239 --> 0:41:57.640 So obviously we're very excited. 0:41:57.680 --> 0:42:00.000 I do want to say there's still some process still remaining, 0:42:00.000 --> 0:42:02.480 and the LA City Council has to consider certain aspects 0:42:02.520 --> 0:42:04.920 of this proposal from LA twenty eight and We want 0:42:04.960 --> 0:42:06.839 to be deeply respectful of that. But just to get 0:42:06.840 --> 0:42:09.400 to this point even where we're even having this conversation 0:42:09.560 --> 0:42:12.279 is obviously a big deal from Oklahoma City, and I 0:42:12.280 --> 0:42:16.280 think kind of reflects a renaissance that's been happening. Maybe 0:42:16.320 --> 0:42:19.719 belong with some people's radar, but definitely is positioning us 0:42:19.800 --> 0:42:23.040 as you know, a top tier American city, something I 0:42:23.080 --> 0:42:24.879 certainly couldn't have said thirty years ago. 0:42:24.960 --> 0:42:26.320 But this overnight. 0:42:25.920 --> 0:42:29.120 Success has required thirty years of investment in venues like 0:42:29.200 --> 0:42:32.000 these that we're going to enjoy and put forward into 0:42:32.000 --> 0:42:33.040 twenty eight LA. 0:42:33.400 --> 0:42:34.880 It is pretty cool how it comes out, Although I 0:42:34.920 --> 0:42:36.759 have to say I was just checking. I'm like, it's 0:42:36.840 --> 0:42:39.600 ony three hundred and twenty seven miles between LA and 0:42:39.640 --> 0:42:42.560 Oklahoma City. It's a twenty hour car trip. I mean, 0:42:42.600 --> 0:42:44.320 so are I guess you guys are going to be 0:42:44.320 --> 0:42:47.920 putting up athletes obviously fans like, there's a lot and 0:42:47.960 --> 0:42:50.040 I know you can probably only talk about so much, 0:42:50.080 --> 0:42:52.920 but there's a lot of logistics to all of this. 0:42:53.520 --> 0:42:56.160 Yeah, I think you know, we're been in this conversation 0:42:56.239 --> 0:42:59.359 for a while and we're fully committed to providing, you know, 0:42:59.520 --> 0:43:03.000 the kind of energy and experience that the fans and 0:43:03.040 --> 0:43:06.600 the athletes expect, and it does appear, you know that 0:43:06.800 --> 0:43:09.160 LA twenty eight is absolutely committed that the athletes will 0:43:09.200 --> 0:43:12.080 still be able to participate in the opening ceremonies, the 0:43:12.080 --> 0:43:16.200 closing ceremonies, possibly both. But in the meantime, yeah, we're gonna, 0:43:16.400 --> 0:43:19.640 I think, treat them so well that they'll be ultimately 0:43:19.760 --> 0:43:23.440 be grateful that they got that opportunity. But we'll obviously 0:43:23.600 --> 0:43:25.600 probably have to prove ourselves in that regards, but we 0:43:25.640 --> 0:43:27.160 feel really confident that we're going to be able to 0:43:27.200 --> 0:43:30.440 provide that dynamic environment. And I think, you know, the 0:43:30.440 --> 0:43:33.360 big picture here from sort of an Olympic movement perspective, 0:43:33.880 --> 0:43:36.720 is that you know, the IOC wants to see cities 0:43:37.960 --> 0:43:41.360 not keep investing in venues that don't have a long 0:43:41.480 --> 0:43:45.240 term operating plan, right, And so these two venues don't 0:43:45.239 --> 0:43:49.360 exist in California, they arguably don't exist anywhere west of 0:43:49.360 --> 0:43:52.760 the Mississippi, right. So you know, I think that you'll 0:43:52.800 --> 0:43:54.960 see maybe more of this in the future. It is 0:43:55.000 --> 0:43:58.680 a little without precedent right now, with some occasional exceptions. 0:43:58.680 --> 0:44:01.880 I mean, people have you know, observed that Paris is 0:44:01.880 --> 0:44:03.840 holding surfing in Tahiti or whatever. 0:44:03.920 --> 0:44:04.160 I mean. 0:44:04.200 --> 0:44:07.200 So there's always certain things maybe that move. 0:44:07.080 --> 0:44:07.880 A little bit farther. 0:44:07.960 --> 0:44:10.640 But I think moving forward beyond LA, I think you're 0:44:10.680 --> 0:44:13.160 going to see more of this because we did go 0:44:13.239 --> 0:44:16.360 through that period for those who followed the Olympic movement, 0:44:16.440 --> 0:44:20.000 where you know, cities were building these mega stadiums that 0:44:20.040 --> 0:44:22.160 they just didn't have a use for beyond the Olympics. 0:44:22.200 --> 0:44:26.400 So I think we're helping LA present and more sustainable games, 0:44:26.440 --> 0:44:29.919 which pleases the IOC and the Olympic movement. And we're 0:44:29.960 --> 0:44:32.279 just so grateful to have that opportunity to support LA 0:44:32.360 --> 0:44:35.520 and to support these Olympics, these LA Olympics, and this 0:44:35.640 --> 0:44:38.680 partnership obviously I hope will be mutually beneficial. 0:44:38.800 --> 0:44:41.239 A mayor, I hope beyond the Olympics, I want to 0:44:41.239 --> 0:44:43.360 speak a little bit about the local economy in Oklahoma 0:44:43.440 --> 0:44:46.200 City because the city is certainly known for quite a 0:44:46.200 --> 0:44:51.840 bit energy, agriculture, aviation, aerospace, logistics. What would you say 0:44:52.040 --> 0:44:54.319 is the area of the sector where you see the 0:44:54.360 --> 0:44:55.560 most growth opportunity? 0:44:55.800 --> 0:45:00.000 Well, probably just for share volume and aviation and aerospace. 0:45:00.280 --> 0:45:03.240 You know, we have a big air force base, Tinker 0:45:03.280 --> 0:45:05.600 Air Force Base in our city limits you know, thirty 0:45:05.680 --> 0:45:08.520 thousand people at least drive in there every day, and 0:45:08.719 --> 0:45:11.440 that has had a lot of spin off activity, which 0:45:11.600 --> 0:45:13.920 we've obviously been very grateful for on many levels. You know, 0:45:13.960 --> 0:45:16.680 when I talked about these investments that we started making 0:45:16.680 --> 0:45:18.440 in our city thirty years ago, part of that was 0:45:18.480 --> 0:45:21.799 a response to the economic depression that we experienced in 0:45:21.840 --> 0:45:24.840 the eighties, which was largely due to an over reliance 0:45:24.880 --> 0:45:27.400 on just one industry, oil and gas. So ever since, 0:45:27.440 --> 0:45:30.279 it's like our you know, vision for city leadership has 0:45:30.360 --> 0:45:33.359 just been anything we can do to diversify you name, 0:45:33.800 --> 0:45:36.279 you know, the economic purpose, and we'll be there right 0:45:36.280 --> 0:45:38.560 because we've just got to find other things besides oil 0:45:38.600 --> 0:45:41.239 and gas. So aviation has been the biggest. But I mean, 0:45:41.560 --> 0:45:44.160 we got all kinds of stuff going on. I was 0:45:44.280 --> 0:45:47.239 part of hosting a premiere of Twisters Monday night. We 0:45:47.280 --> 0:45:50.000 have this new one, so this growing film industry in 0:45:50.040 --> 0:45:52.920 Oklahoma City. I mean, there's lots of cool stuff happening 0:45:53.400 --> 0:45:54.080 in many differents. 0:45:54.120 --> 0:45:56.359 Exective mayholds. We'd be remiss not to ask you. We've 0:45:56.360 --> 0:45:59.759 got about twenty five seconds left here, any signed of 0:45:59.760 --> 0:46:03.000 that noomic slow down or recession just quickly a little bit. 0:46:03.440 --> 0:46:06.560 Our sales tax growth, and that's a big leading indicator 0:46:06.600 --> 0:46:10.000 for US is slowing down. It is not like down 0:46:10.080 --> 0:46:13.520 year to year, but the growth is less than it 0:46:13.600 --> 0:46:16.800 was in the past. So we're being a little cautious 0:46:16.800 --> 0:46:19.000 for sure, especially from a city budgeting perspective. 0:46:19.040 --> 0:46:20.640 All right, well, we count on you guys to get 0:46:20.640 --> 0:46:23.080 some idea of really what's happening on the ground among 0:46:23.080 --> 0:46:25.960 the nation cities. David Holt, enjoy your time on the 0:46:26.040 --> 0:46:30.880 Jersey Shore, Mayor of Oklahoma City, Oklahoma. 0:46:35.719 --> 0:46:39.560 You're listening to the Bloomberg Business Week podcast. Listen live 0:46:39.640 --> 0:46:42.880 each weekday starting at two pm Eastern on applecar Play 0:46:42.880 --> 0:46:45.719 and Androyd Auto with the Bloomberg Business app. You can 0:46:45.760 --> 0:46:49.000 also listen live on Amazon Alexa from our flagship New 0:46:49.080 --> 0:46:52.680 York station, Just Say Alexa play Bloomberg eleven. 0:46:52.400 --> 0:46:55.320 Thirty plenty ahead in our second hour of the weekend 0:46:55.400 --> 0:46:58.319 edition of Bloomberg Business Week, including the New Jersey based 0:46:58.400 --> 0:47:01.600 music venue home to Bruce Spring that has become an 0:47:01.600 --> 0:47:05.680 international pilgrimage site for rock fans and musicians alike. New 0:47:05.760 --> 0:47:09.279 York Times political correspondent Nick Korsanidi on his book I 0:47:09.280 --> 0:47:12.200 Don't Want to Go Home, The oral history of the Stone. 0:47:11.920 --> 0:47:15.640 Pony, plus our Pursuits team asks is health Span more 0:47:15.719 --> 0:47:17.880 than just a money grab? We're talking about a host 0:47:17.920 --> 0:47:20.800 of startups that promised to slow the aging process. 0:47:21.000 --> 0:47:23.000 First up this hour, As you know, we had a 0:47:23.000 --> 0:47:25.200 lot thrown at us this past week thanks to a 0:47:25.840 --> 0:47:28.759 deluge of earnings, the aftermath of President Biden dropping out 0:47:28.760 --> 0:47:31.880 of the race for president and Vice President Kamala Harris 0:47:31.920 --> 0:47:35.800 stepping into the spotlight and very likely heading the Democratic ticket. 0:47:36.120 --> 0:47:40.080 We still also have two wars Russia, Ukraine and Israel 0:47:40.080 --> 0:47:43.239 Hamas and you know, there's just so much coming at 0:47:43.320 --> 0:47:43.480 us to. 0:47:43.520 --> 0:47:44.080 Him right now. 0:47:44.160 --> 0:47:46.640 Yeah, there really is. I mean, the problems, the stress 0:47:46.719 --> 0:47:49.399 is the innovation, the backdrop and the politics of it all. 0:47:49.800 --> 0:47:52.520 It's the bread and butter of our next guest, David 0:47:52.520 --> 0:47:57.320 Bach is President Elective IMD. It's a global executive education platform. 0:47:57.360 --> 0:48:00.840 It's also a business school. His recent columns cover everything 0:48:00.880 --> 0:48:04.560 from future proofing business for any presidential outcome, too when 0:48:04.640 --> 0:48:06.760 CEOs should actually take a stand. 0:48:07.000 --> 0:48:09.279 So i'md as a top business school, as you said, 0:48:09.320 --> 0:48:12.239 but we're really distinct from other peer schools, and that's 0:48:12.280 --> 0:48:15.160 so much of what we do is focused on executive education. 0:48:15.360 --> 0:48:17.080 So it's why of the salary part my get a 0:48:17.080 --> 0:48:17.400 little bit. 0:48:17.960 --> 0:48:21.200 We love our degree programs, they're our soul, they're terrific. 0:48:21.320 --> 0:48:23.560 But you know, really what we're best known for is 0:48:23.600 --> 0:48:26.160 to work with companies, to work with leaders on their challenges. 0:48:26.200 --> 0:48:28.120 And as you said, there are many of them right now. 0:48:28.000 --> 0:48:29.320 And those are non degree programs. 0:48:29.400 --> 0:48:29.960 Yeah, that's right. 0:48:29.960 --> 0:48:31.680 So about eighty percent or so of what we do 0:48:31.760 --> 0:48:35.560 is either solutions for organizations, custom programs, or we run 0:48:35.600 --> 0:48:38.280 a lot of open programs in Lasan on our campus 0:48:38.280 --> 0:48:40.480 there in Singapore where we have another campus, and then 0:48:40.520 --> 0:48:41.239 of course more and more. 0:48:41.320 --> 0:48:44.440 Virtually, what do you find that the executives want to 0:48:44.480 --> 0:48:48.000 get out of their class? Well, it's not you can't 0:48:48.040 --> 0:48:50.040 really say classes. I mean you could call them churses, 0:48:50.120 --> 0:48:52.520 but since it's not a degree program, yeah, you know, 0:48:52.560 --> 0:48:53.960 how long are they coming for and what are their 0:48:54.000 --> 0:48:54.759 goals in getting out there? 0:48:54.880 --> 0:48:56.799 Look, I mean we run programs as short as two 0:48:56.880 --> 0:48:58.480 or three days, some of them are as long as 0:48:58.520 --> 0:48:59.080 six weeks. 0:48:59.120 --> 0:48:59.279 You know. 0:48:59.320 --> 0:49:03.080 Sometimes with companies we do multiple modules over eight nine months. 0:49:03.200 --> 0:49:06.320 One big trend that we've certainly seen is that companies 0:49:06.360 --> 0:49:08.719 have moved away from just doing this as a sort 0:49:08.719 --> 0:49:11.319 of nice to have, you know, every year they send 0:49:11.320 --> 0:49:13.239 a couple of people, but they really start working with 0:49:13.320 --> 0:49:15.920 us when they're facing major challenges. Right, the business is 0:49:15.920 --> 0:49:19.400 slowing down, they're thinking about what's next in terms of 0:49:19.400 --> 0:49:22.319 innovation and how to deal with the volatile world that 0:49:22.360 --> 0:49:24.960 we're in. So we're working with them and developing the 0:49:25.000 --> 0:49:28.160 next generation of leaders and tackling the key challenges in 0:49:28.160 --> 0:49:28.640 front of them. 0:49:28.760 --> 0:49:31.080 Many would say it's best to get the training before 0:49:31.120 --> 0:49:34.879 the stress points and challenges hit you. So, having said that, 0:49:34.960 --> 0:49:37.960 how do you think about what you know? There's a 0:49:38.000 --> 0:49:39.759 lot that comes at executive Do you think about the 0:49:39.760 --> 0:49:42.120 crises that we've had over the last couple of decades, 0:49:42.160 --> 0:49:44.600 whether it's the Great Financial Crisis, whether it was the 0:49:44.640 --> 0:49:47.759 tech fallout before that, whether it was the global pandemic 0:49:47.880 --> 0:49:50.640 there's nine to eleven, there's a lot of things that 0:49:50.719 --> 0:49:53.719 are certainly hitting our world. So what's top of mind though, 0:49:53.760 --> 0:49:55.760 in terms of what you think a leader needs today? 0:49:56.000 --> 0:49:59.080 Yeah, so I think the emphasis actually is really on 0:49:59.719 --> 0:50:02.360 leaders ship, on leadership development. Right, how do you develop 0:50:02.680 --> 0:50:06.000 the self awareness that you can be authentic in a 0:50:06.040 --> 0:50:08.880 situation like this? How are you agile? How are you resilient, 0:50:09.000 --> 0:50:12.080 so you can deal with whatever is thrown at you 0:50:12.160 --> 0:50:13.480 and provide guidance. 0:50:14.560 --> 0:50:16.520 I want to go share because only you know, it's 0:50:16.520 --> 0:50:19.600 interesting going through the pandemic, going through George Floyd, you 0:50:19.640 --> 0:50:22.839 did see a lot of executives at prominent publicly held 0:50:22.840 --> 0:50:26.440 companies come out and really make some strong statements and 0:50:26.520 --> 0:50:30.080 take some strong positions. I think it's safe to say 0:50:30.320 --> 0:50:32.600 that it feels like that has calmed down a lot. 0:50:33.239 --> 0:50:34.800 And now we're kind of hearing that if you're a 0:50:34.840 --> 0:50:36.800 public you know, you've got a publicly held company. 0:50:36.840 --> 0:50:38.520 Like I keep saying, I think it's not only it's 0:50:38.560 --> 0:50:40.319 fair to say that, I think it's fair to say 0:50:40.320 --> 0:50:42.120 that the pendulum has swung the other way and that 0:50:42.280 --> 0:50:44.879 DEI has actually looked at as a you know, sort 0:50:44.920 --> 0:50:47.799 of dirty word at this point, and it's pejorative. I mean, 0:50:47.800 --> 0:50:49.680 companies don't want to touch this stuff anymore. 0:50:50.080 --> 0:50:51.719 Yeah, yes, and no, I mean I think even in 0:50:51.719 --> 0:50:53.839 the US, in the US, but even in the US, 0:50:53.920 --> 0:50:56.000 look after the Supreme Court, you know, put an end 0:50:56.080 --> 0:50:59.640 to affirmative action and college applications, companies and their leaders 0:50:59.680 --> 0:51:02.120 still care out and so that we remain committed to 0:51:02.800 --> 0:51:07.200 diversity and inclusion, perhaps not necessarily emphasizing their formal DEI 0:51:07.320 --> 0:51:09.560 programs as much, but you still have a young generation 0:51:10.040 --> 0:51:12.480 that you're trying to attract your organization that wants to 0:51:12.560 --> 0:51:14.400 make sure that they work at a place where they belong. 0:51:14.640 --> 0:51:17.240 Tractor Supply came out with a statement that talked about 0:51:17.480 --> 0:51:21.080 they're not submitting data to human rights campaign. They're eliminating 0:51:21.120 --> 0:51:24.520 DEI roles and retiring the current DEI goes adult goals 0:51:24.520 --> 0:51:27.680 while still ensuring a respectful environment. They're withdrawing carbon emissions 0:51:27.719 --> 0:51:30.839 goals and focusing on land and water conservation efforts. That's 0:51:30.840 --> 0:51:32.280 a pendulum swinging the other way. 0:51:32.200 --> 0:51:34.399 I think, yeah, or you can call it the two 0:51:34.400 --> 0:51:37.120 steps forward, one step backwards. That tends to happen a 0:51:37.120 --> 0:51:39.200 lot when you're dealing with societal change. There's no question 0:51:39.239 --> 0:51:42.360 that the environment in the US, particularly around ESG, has changed. 0:51:43.280 --> 0:51:45.120 But you know, certainly when you look at Europe, a 0:51:45.160 --> 0:51:48.160 lot of companies remain very much focused on sustainability goals. 0:51:48.200 --> 0:51:51.279 I think they remain focused on promoting equity, and I 0:51:51.280 --> 0:51:54.319 think a lot more companies do it quietly rather than 0:51:54.520 --> 0:51:55.600 doing these flashy reports. 0:51:55.640 --> 0:51:57.640 Is there a real distinction between European companies though, and 0:51:57.719 --> 0:51:58.960 US companies on that, I. 0:51:58.920 --> 0:52:02.080 Think European companies have moved a little bit later, and 0:52:02.120 --> 0:52:05.120 clearly the challenges and the issues are very different from 0:52:05.239 --> 0:52:08.399 the ones here in the US. But you know, we're 0:52:08.400 --> 0:52:11.799 seeing a lot of European europe based companies that are 0:52:11.800 --> 0:52:14.120 operating globally wrestling with some of the same issues. 0:52:14.360 --> 0:52:19.040 European companies from an equity return perspective have just been 0:52:19.080 --> 0:52:23.480 completely left behind by US companies. Yeah, why is that? 0:52:23.560 --> 0:52:25.480 And what do you hear from European leaders as to 0:52:25.520 --> 0:52:27.360 why European company leaders? 0:52:27.640 --> 0:52:30.000 A really really important debate right now in Europe is 0:52:30.040 --> 0:52:32.840 about global competitive notes, right, I mean, where does Europe 0:52:32.920 --> 0:52:35.880 fall in a world that sees the US and Asia, 0:52:35.880 --> 0:52:39.279 if you will, being the motors of growth. And you know, 0:52:39.320 --> 0:52:42.320 there's been a lot of emphasis on what do policy 0:52:42.320 --> 0:52:46.040 makers need to do complete the single European market for capital, 0:52:46.480 --> 0:52:50.399 remove barriers, have smart regulation. So there's a lot there 0:52:50.440 --> 0:52:55.120 that needs to happen. I think European CEOs feel generally 0:52:55.280 --> 0:52:59.040 sort of pretty optimistic about the opportunities in front of them, 0:52:59.080 --> 0:53:01.440 but they're looking for policy makers to lend more of 0:53:01.480 --> 0:53:03.760 a hand and not put roadblocks in front. 0:53:03.560 --> 0:53:08.080 Of them the election outcome here in the United States. 0:53:08.880 --> 0:53:12.560 What's the advice how do you kind of prepare the 0:53:12.640 --> 0:53:15.920 current c suite and leaders today for the outcome. 0:53:16.440 --> 0:53:18.960 So we had a session and at our school at 0:53:19.040 --> 0:53:21.400 IMD a while back where we're actually just about a 0:53:21.400 --> 0:53:23.279 month ago, and of course, you know, it was like 0:53:23.320 --> 0:53:25.760 Biden or Trump, how do your future prove your business? 0:53:25.800 --> 0:53:27.880 And now it's not Biden, We'll see if it's Trump. 0:53:28.000 --> 0:53:32.759 But and you know, it was fascinating because so many 0:53:32.840 --> 0:53:35.359 business leaders around the world is so dialed into what 0:53:35.440 --> 0:53:37.840 is happening in the US. They're following everything because the 0:53:37.880 --> 0:53:40.759 implications are going to be so vast. And so one 0:53:40.760 --> 0:53:43.000 thing that was really interesting was actually we gave them 0:53:43.040 --> 0:53:46.319 sort of policy positions on cards. Half of them were 0:53:46.320 --> 0:53:48.480 Trump positions, the other half of Biden positions, but we 0:53:48.520 --> 0:53:51.040 didn't indicate which ones were Trump with Biden. And the 0:53:51.080 --> 0:53:53.239 first thing that was fascinating was we asked them to pick, 0:53:53.280 --> 0:53:55.320 you know, on each issue, on a range of issues, 0:53:55.360 --> 0:53:57.480 the one that was best for the business. Nobody had 0:53:57.480 --> 0:53:58.960 a straight Trump or a straight Biden. 0:53:59.080 --> 0:54:00.240 I'd love that. 0:54:00.239 --> 0:54:00.719 Interesting. 0:54:00.920 --> 0:54:02.680 We also said, what does that tell you? 0:54:02.719 --> 0:54:04.720 Well, what it tells you is that the business that you're. 0:54:07.239 --> 0:54:09.440 Just what no, But I think what it tells. 0:54:09.200 --> 0:54:11.600 You, well, we actually we also mixed in some some 0:54:11.719 --> 0:54:14.320 positions that we made up and those were quite popular 0:54:14.360 --> 0:54:16.680 on top of it. So I think what it tells 0:54:16.680 --> 0:54:18.360 you is nobody is going to get the kind of 0:54:18.360 --> 0:54:20.879 policies across the board that they're looking for, at least 0:54:20.880 --> 0:54:23.080 in terms of the global scene. What were the policies 0:54:23.120 --> 0:54:25.080 that generate know, we had issues around what are you 0:54:25.120 --> 0:54:30.040 doing around sustainability and supporting electrification? There are questions around trade. 0:54:30.560 --> 0:54:34.320 There are questions about tech regulation for example, right competition policy, 0:54:34.400 --> 0:54:38.239 anti trust policy, and nobody was thrilled with what they 0:54:38.239 --> 0:54:39.440 got from either politician. 0:54:39.760 --> 0:54:43.759 Is there a takeaway for what the next administration needs 0:54:43.800 --> 0:54:45.800 to do for business globally? 0:54:46.040 --> 0:54:48.520 First of all, I think the takeaway is that as 0:54:48.560 --> 0:54:52.000 a business leader, you just have to think about how 0:54:52.000 --> 0:54:54.760 do we make or how do we insulate our business 0:54:54.760 --> 0:54:56.319 somewhat right? What are some of the things that we 0:54:56.320 --> 0:54:58.400 should be No matter what, what are the big trends. 0:54:58.840 --> 0:55:01.120 Policy in the US is going to be somewhat volatile. 0:55:01.120 --> 0:55:03.040 There's also going to the question of you know, what 0:55:03.080 --> 0:55:05.720 can you get through Congress? What actually survives the courts, 0:55:05.960 --> 0:55:07.160 and so at the end of the day, you should 0:55:07.160 --> 0:55:09.560 probably worry a little bit less about this minutia that 0:55:09.680 --> 0:55:11.880 part of a proposal and just think more broadly, what 0:55:11.960 --> 0:55:13.879 is the direction of travel and how do we set 0:55:13.920 --> 0:55:14.440 ourselves up. 0:55:14.520 --> 0:55:15.840 That's a really interesting exercise. 0:55:15.880 --> 0:55:17.960 It is pretty cool. Yeah, I love you kind of 0:55:17.960 --> 0:55:19.080 sliding stuff in. 0:55:19.360 --> 0:55:20.239 And sometimes, right. 0:55:20.480 --> 0:55:23.560 I mean, we actually had in there, you know, well, 0:55:23.600 --> 0:55:25.320 you know, we had in there a very sort of 0:55:26.040 --> 0:55:28.960 radical proposal in phasing out fossil fuels, and a lot 0:55:28.960 --> 0:55:31.280 of the business leaders in the in the program actually 0:55:31.360 --> 0:55:33.719 chose that one because they actually said, this would give 0:55:33.800 --> 0:55:35.440 us a certainty and we can plan around it. Of 0:55:35.440 --> 0:55:37.720 course that's not really on offer from either party. 0:55:37.760 --> 0:55:39.520 That's pretty powerful. Well, you have to do on some 0:55:39.560 --> 0:55:41.440 of those things. Has everybody to buy in, right, so 0:55:41.800 --> 0:55:44.719 that the playing field is level, David, How much does 0:55:44.760 --> 0:55:47.000 curriculum change for you guys from year to year? 0:55:47.400 --> 0:55:49.880 So we never teach the same thing twice, It does 0:55:50.160 --> 0:55:54.880 change quite a bit. We're emphasizing a lot, of course 0:55:54.960 --> 0:55:57.880 right now, the impact that AI is going to have 0:55:57.960 --> 0:56:00.440 on the business. We're thinking about AI both as a 0:56:00.440 --> 0:56:03.320 pedagogical tool, So how do we use it to personalize learning, 0:56:03.760 --> 0:56:05.560 But of course also what does it mean for business? 0:56:05.560 --> 0:56:07.200 What does it mean for service delivery? Where do you 0:56:07.239 --> 0:56:10.000 go in terms of innovation? So there's always some change. 0:56:10.080 --> 0:56:13.000 I think that's the most recent area where we're reworking it. 0:56:13.080 --> 0:56:15.520 But of course, you know, a couple of things remain there. 0:56:15.560 --> 0:56:18.200 There's some foundational skills sort of adapt only in terms 0:56:18.200 --> 0:56:19.279 of the way we deliver them. 0:56:19.480 --> 0:56:21.920 I'm wondering how much of your time is spent in 0:56:21.960 --> 0:56:24.319 the classroom, or when you become president, how much many 0:56:24.400 --> 0:56:28.000 time in the classroom versus out there raising money for 0:56:28.040 --> 0:56:30.200 the school. You know, in the US you went to Berkeley, 0:56:30.239 --> 0:56:32.319 and yes, so you understand how chicks work here in 0:56:32.320 --> 0:56:36.600 the US. The deans spend so much time in raising money. 0:56:36.800 --> 0:56:37.759 Are you going to have to do that? 0:56:37.880 --> 0:56:38.160 Yes? 0:56:38.239 --> 0:56:40.640 So I expect that I'll be spending the majority of 0:56:40.680 --> 0:56:42.160 my time externally oriented. 0:56:42.239 --> 0:56:42.399 Right. 0:56:42.400 --> 0:56:45.560 That includes meeting with folks like you and saying sharing 0:56:45.560 --> 0:56:47.120 a little bit about what we do, but of course 0:56:47.160 --> 0:56:50.040 also meeting with our clients, meeting with alums, meeting with donors. 0:56:50.400 --> 0:56:52.160 I think for us, the client piece is probably a 0:56:52.200 --> 0:56:53.640 little bit more important. 0:56:53.239 --> 0:56:56.080 Client the US school, the term client is not when 0:56:56.080 --> 0:56:56.400 you'd hear. 0:56:56.560 --> 0:56:58.640 No, you don't hear it from traditional businesses. Yeah, so 0:56:58.680 --> 0:57:01.920 we work with you know, we we are an academic institution, 0:57:02.040 --> 0:57:04.719 but we have borrowed, you know, with pride from professional 0:57:04.719 --> 0:57:07.080 service firms and how they work with their clients to 0:57:07.239 --> 0:57:08.120 solve their problem. 0:57:08.239 --> 0:57:09.920 So I'll do a lot of that. 0:57:10.040 --> 0:57:12.160 I still will teach a little, So. 0:57:12.120 --> 0:57:14.520 I'll probably do about you know, fifteen twenty sessions a year. 0:57:14.560 --> 0:57:16.360 A session for us is sort of three four hours, 0:57:16.360 --> 0:57:18.320 so it's not you know, it's not a huge amount 0:57:18.400 --> 0:57:21.000 compared to my colleagues, but it is important to remain 0:57:21.040 --> 0:57:21.360 in touch. 0:57:21.440 --> 0:57:23.760 Do you see yourself remaining in that position for a 0:57:23.760 --> 0:57:25.320 while and then going back to teaching. Is that how 0:57:25.360 --> 0:57:25.640 it works? 0:57:25.680 --> 0:57:27.400 Yeah, that's usually how it works, right. It's sort of 0:57:27.400 --> 0:57:29.760 a temporary assignment. It's a five year term. You know, 0:57:29.800 --> 0:57:32.720 you might do one or two, depending on how things go, 0:57:32.800 --> 0:57:35.200 what my colleagues think of my leadership and the board, 0:57:35.280 --> 0:57:37.960 and then yeah, you usually transition back into a faculty role. 0:57:38.840 --> 0:57:41.040 How competitive is this landscape? And you know, I go 0:57:41.120 --> 0:57:43.840 back to my undergrad did it in here as part 0:57:43.880 --> 0:57:46.280 of the Columbia University program and they had a big 0:57:46.360 --> 0:57:49.640 executive education program and the execs would go up I think, 0:57:49.720 --> 0:57:53.760 like on Fridays and it was a big deal, big deal. 0:57:53.960 --> 0:57:56.120 How competitive is this space still. 0:57:56.240 --> 0:57:59.720 It's super competitive, and really what clients I'm looking for 0:57:59.880 --> 0:58:01.560 is clearly the return on investment. 0:58:01.680 --> 0:58:01.840 Right. 0:58:01.880 --> 0:58:06.000 So one part is of course the cost right of 0:58:06.080 --> 0:58:08.320 doing a program like this, but for a company in particular, 0:58:08.720 --> 0:58:12.320 like having thirty or forty people's be away from the 0:58:12.400 --> 0:58:15.440 office for a week, right, is an enormous investment, and 0:58:15.480 --> 0:58:18.000 so we awe it to them to make sure we 0:58:18.080 --> 0:58:20.360 deliver the kind of impact on their business. And so 0:58:20.400 --> 0:58:22.200 we've been working very hard over the last couple of 0:58:22.240 --> 0:58:25.120 years to come up with metrics from measuring the impact. 0:58:25.160 --> 0:58:28.800 The return on learning is really really good for companies, 0:58:28.880 --> 0:58:31.840 but we have to demonstrate that and we compete with others. 0:58:32.000 --> 0:58:34.760 Is that the typical program that the people who the 0:58:34.760 --> 0:58:37.760 clients are the students, that it's a week that they're away. 0:58:37.560 --> 0:58:40.280 And that yeah, I mean, that's what we have been 0:58:40.320 --> 0:58:42.520 trying to do. So it used to be longer than that. 0:58:42.520 --> 0:58:45.160 The time has gotten shorter. We're using technology to drive 0:58:45.200 --> 0:58:47.720 more impact. So very often before we meet on campus 0:58:47.800 --> 0:58:50.680 for a week, we might have connected virtually before we've 0:58:50.720 --> 0:58:54.200 done some assessments, right, there might be some project works 0:58:54.200 --> 0:58:56.840 and coaching after the program, so we extend the learning 0:58:56.920 --> 0:59:00.000 journey beyond the week so we have more impact. But yeah, 0:59:00.160 --> 0:59:02.440 week out of the office is quite typical. 0:59:02.560 --> 0:59:04.720 Is there like a certain executive or company that often 0:59:04.760 --> 0:59:06.840 comes up in conversations. 0:59:06.360 --> 0:59:08.000 As a competitor, as a client. 0:59:08.160 --> 0:59:10.680 Yeah, as like as the students are in there, Oh, okay, 0:59:10.880 --> 0:59:12.520 can study or something like that's curious. 0:59:12.760 --> 0:59:15.000 Yeah, people want to know, people do want to hear 0:59:15.080 --> 0:59:17.640 from whoever is sort of new and so you know, 0:59:17.720 --> 0:59:19.919 of course you talk a lot right now about open 0:59:20.000 --> 0:59:22.800 eye if you're thinking about governance and what happens around technology, 0:59:22.800 --> 0:59:24.920 and of course some of the companies you guys feature 0:59:24.920 --> 0:59:26.440 a lot. You know, a Tesla is going to come 0:59:26.520 --> 0:59:28.760 up or you know, a BYD and what we can 0:59:28.840 --> 0:59:30.880 learn from them in terms of their innovation. I've been 0:59:30.880 --> 0:59:34.440 doing some teaching around TSMC and how do we think 0:59:34.480 --> 0:59:39.240 about geopolitics through through that lens. But then also part 0:59:39.280 --> 0:59:41.680 of our job is to put companies in front of 0:59:41.760 --> 0:59:44.280 executives that they wouldn't have been exposed to from a 0:59:44.280 --> 0:59:47.000 different sector, a different part of the world, that do 0:59:47.160 --> 0:59:49.920 something interesting that they can be they can be challenged 0:59:49.960 --> 0:59:51.040 and inspired by well. 0:59:51.080 --> 0:59:52.640 Having said that, is there a company that you think 0:59:52.640 --> 0:59:54.800 about for the Bloomberg audience that they should be looking at, 0:59:54.880 --> 0:59:56.360 or a leader that they should be looking at that 0:59:56.520 --> 0:59:59.120 maybe isn't one that Tim and I talk about a lot. 0:59:59.240 --> 1:00:01.360 You know, there's there's so many companies doing really really 1:00:01.440 --> 1:00:04.560 interesting things. But I'll tell you one that I use 1:00:04.920 --> 1:00:07.200 in many of my programs. It's a company called Zipline. 1:00:07.200 --> 1:00:08.840 I don't know if YAH follow it. I'm the drune 1:00:08.840 --> 1:00:11.000 company delivery stuff in Rwanda. 1:00:10.760 --> 1:00:14.160 Look exactly. I find them fascinating because you know, I 1:00:14.200 --> 1:00:16.520 work at the nexus of business and politics, right and 1:00:16.560 --> 1:00:19.000 so regulation in the US and Europe would have made 1:00:19.000 --> 1:00:20.360 a business like this impossible. 1:00:20.400 --> 1:00:21.080 So what do they do? 1:00:21.080 --> 1:00:23.920 They pivot, They go to Africa, they save lives, and 1:00:23.960 --> 1:00:26.160 before you know it, they put together a coalition of 1:00:26.200 --> 1:00:29.760 stakeholders that open doors for them. And they've moved much 1:00:29.760 --> 1:00:33.400 faster because there were agiley, they were purpose focused. And 1:00:33.440 --> 1:00:35.960 so I use them as an example relatively regularly in 1:00:36.000 --> 1:00:38.040 my programs to get companies to think differently. 1:00:38.160 --> 1:00:40.040 Yeah, it's a really interesting company. We featured them quite 1:00:40.040 --> 1:00:43.200 a bit here at Bloomberg. Willingness to pay a term 1:00:43.240 --> 1:00:45.560 you find in business school. Yes, the willingness to pay 1:00:45.560 --> 1:00:48.479 for an executive looking for an education is very high. 1:00:48.480 --> 1:00:51.240 For example, at Columbia, the executive MBA, how much do 1:00:51.240 --> 1:00:53.600 you think it costs per student? 1:00:53.640 --> 1:00:55.120 I don't know. It's like forty thousand. 1:00:54.880 --> 1:00:58.600 Dollars two hundred and forty thousand for two years. Okay, okay, 1:00:58.960 --> 1:00:59.920 that's the executive NBA. 1:01:00.280 --> 1:01:02.440 You're looking years four years, two years, two years. 1:01:02.440 --> 1:01:04.840 That's two years. Yeah, that's the executive NBA. So that's 1:01:04.840 --> 1:01:07.480 the part time sure, yeah, I mean two years is yeah, 1:01:07.480 --> 1:01:11.880 but commitment Thursday, Friday, Saturday or whatever. Tuition for that 1:01:12.240 --> 1:01:14.000 was last year I can't find this year. So it's 1:01:14.040 --> 1:01:16.080 expected to go between two and seven percent per year. 1:01:17.280 --> 1:01:21.280 For the full time MBA, it's like ninety thousand dollars 1:01:21.320 --> 1:01:23.040 a year. You got to throw on some more fees 1:01:23.080 --> 1:01:23.760 and for two years. 1:01:23.840 --> 1:01:24.720 Yeah, you gotta pay twice. 1:01:24.800 --> 1:01:28.560 Yeah, you gotta pay it twice. That's a lot of money. Yeah. 1:01:28.760 --> 1:01:32.000 How much do you make from more from the executives 1:01:32.000 --> 1:01:35.920 who come versus those in the twenty percent who are 1:01:35.920 --> 1:01:38.400 doing like the full time MBA versus the executive Yeah, 1:01:38.440 --> 1:01:40.560 because the willingness to pay for those execs. That's higher 1:01:40.640 --> 1:01:41.960 and the companies often pay for. 1:01:41.920 --> 1:01:45.080 It they do, and again you got to demonstrate that impact. 1:01:45.080 --> 1:01:48.400 So we're a nonprofit foundation, right, so our goal is 1:01:48.440 --> 1:01:51.320 to have universalsp No, of course they are right, you know, 1:01:51.720 --> 1:01:54.000 I mean it's hard to believe with some of the prices, right, 1:01:54.040 --> 1:01:54.520 but what we. 1:01:54.520 --> 1:01:56.040 Do is nothing right. 1:01:56.840 --> 1:01:58.800 Well, look, I mean what we do is expensive, right 1:01:58.840 --> 1:02:01.720 to have terrific faculty, you know, bring them together, support 1:02:01.760 --> 1:02:05.160 them so they can continue to do research and thought 1:02:05.240 --> 1:02:08.520 leadership at the cutting edge. Right, It's not cheap, and 1:02:08.600 --> 1:02:11.640 we put a fair amount of effort on raising funds 1:02:11.640 --> 1:02:15.120 for scholarships and running programs that or doing initiatives that 1:02:15.200 --> 1:02:19.400 make programs accessible. But you're quite right, there are lots 1:02:19.400 --> 1:02:22.800 of options. So you were asking me before about competition. 1:02:23.240 --> 1:02:25.120 There are the top business schools, of course that we 1:02:25.160 --> 1:02:27.280 compete with, but there are a lot of other providers. 1:02:27.320 --> 1:02:29.840 There's a lot of great content available, and so you 1:02:29.880 --> 1:02:32.520 really have to work hard on how do you design 1:02:32.560 --> 1:02:35.040 things that are impactful? How do you have pedagogy that 1:02:35.360 --> 1:02:38.520 lets people learn? As people get older, it gets harder 1:02:38.520 --> 1:02:40.320 to learn, so you've got to think harder about how 1:02:40.320 --> 1:02:42.360 do I put them in situations where they can learn, 1:02:42.720 --> 1:02:45.280 and so we're making ourselves accountable for the ri that 1:02:45.840 --> 1:02:48.760 we're generating. And when we can demonstrate the impact of learning, 1:02:49.080 --> 1:02:51.240 then the willingness to pay is clearly there. I think 1:02:51.240 --> 1:02:53.080 that's true both for degree and non degree ago. 1:02:53.320 --> 1:02:55.480 Right, so, just because we are Bloomberg, So for a week, 1:02:55.520 --> 1:02:56.720 what does it cost for a student? 1:02:57.120 --> 1:02:59.840 Yeah, so we run week long open programs. They tend 1:02:59.840 --> 1:03:02.320 to about ten to twelve thousand dollars, okay, for a 1:03:02.360 --> 1:03:05.960 week for an individual right now, Again we call it 1:03:05.960 --> 1:03:07.800 a week, but it may have started two weeks before 1:03:07.800 --> 1:03:10.600 with some exercises and activities and assessments and continues. 1:03:10.640 --> 1:03:12.000 Beyond that, we have some. 1:03:11.920 --> 1:03:14.560 Programs that are you know, three days, five six thousand, 1:03:15.240 --> 1:03:17.360 and then of course we have more affordable options. We 1:03:17.520 --> 1:03:21.080 run what we call sprints two weeks an hour a day, 1:03:22.040 --> 1:03:25.440 usually online, and you know, those are about nine hundred dollars. 1:03:25.440 --> 1:03:28.120 So it's still an important investment, but we do try 1:03:28.160 --> 1:03:29.840 to meet people at different price points. 1:03:29.920 --> 1:03:32.439 Very cool stuff. No, a lot of specifics, which makes 1:03:32.440 --> 1:03:35.120 it super interesting to hear about. David. Thank you so much, 1:03:35.160 --> 1:03:37.320 good luck, Thank you, I appreciate it. Look forward to 1:03:37.400 --> 1:03:41.160 future conversations. David back. He's president elective IMD soon to 1:03:41.200 --> 1:03:44.000 be president come September. As we said, it's a global 1:03:44.000 --> 1:03:46.720 executive education platform joining us right here in our studio. David, 1:03:46.720 --> 1:03:47.520 thank you so much again. 1:03:48.320 --> 1:03:51.840 You're listening to the Bloomberg Business Week podcast. Catch us 1:03:51.880 --> 1:03:55.120 live weekday afternoons from two to five pm Eastern Listen 1:03:55.160 --> 1:03:57.320 on Apple car Play and then brought auto with a 1:03:57.320 --> 1:03:58.440 Bloomberg Business. 1:03:58.240 --> 1:04:10.080 Act or want just live on you Tube. 1:04:11.480 --> 1:04:13.880 It's the Boss who doesn't like a little thunder rope. 1:04:14.040 --> 1:04:16.720 Who doesn't like a little Bruce Bruce Springsteen. 1:04:16.720 --> 1:04:20.360 Excuse me, well, the Stone Pony. Yes, you hear those 1:04:20.360 --> 1:04:23.040 three words, And if you're like me and many others, 1:04:23.080 --> 1:04:23.520 you think of. 1:04:23.480 --> 1:04:25.000 One man, Bruce Springsteen. 1:04:25.160 --> 1:04:27.320 Yeah, then to make no mistake of me, Jersey Girl, 1:04:27.400 --> 1:04:28.600 I can say, you can say. 1:04:28.520 --> 1:04:30.640 That the Boss certainly is a huge part of the 1:04:30.680 --> 1:04:32.920 Stone Pony. But as our next guest writes in a 1:04:32.960 --> 1:04:35.520 new book it was just out last month, it's not 1:04:35.560 --> 1:04:38.040 just a place for Springsteen and his fans, Carol, It's 1:04:38.080 --> 1:04:41.560 a place that has become a quote international rock pilgrimage 1:04:41.680 --> 1:04:44.240 for all types of musicians. And despite the fact that 1:04:44.560 --> 1:04:48.200 once renowned venues like CBGB and the Cavern Club, which 1:04:48.200 --> 1:04:51.160 is where the Beatles started. Those are gone. The Stone Pony, 1:04:51.200 --> 1:04:53.400 where Bruce got his start, it's still here. 1:04:53.600 --> 1:04:57.000 Nick Corsinidi is a political correspondent for The New York Times. 1:04:57.000 --> 1:04:59.360 He's the author of a new book, I Don't Want 1:04:59.360 --> 1:05:01.960 to Go Home, Oral History of the Stone Pony. And 1:05:02.000 --> 1:05:04.600 he joins us here in a Bloomberg studio. So someone 1:05:04.600 --> 1:05:07.200 who knows all about it. Welcome, Welcome, Thanks for having me, 1:05:07.640 --> 1:05:10.000 since you do cover well. 1:05:10.040 --> 1:05:12.080 Politics, Yeah, that's where we're going. 1:05:13.160 --> 1:05:15.800 We need to kind of start there if you don't mind, sure. 1:05:16.640 --> 1:05:18.440 How are you thinking about this environment? How do you 1:05:18.440 --> 1:05:20.200 think about democracy right now? 1:05:20.320 --> 1:05:23.240 Well, it's interesting how that's actually where that's being thrown 1:05:23.280 --> 1:05:26.320 around a lot, especially from the right, you know, President Trump, 1:05:26.560 --> 1:05:32.560 Trump's campaign speaker Johnson, Senator McConnell, they all had statements 1:05:32.600 --> 1:05:35.880 within an hour of Biden's letter being posted saying that 1:05:35.960 --> 1:05:40.160 this is undemocratic or disenfranchising the fourteen million voters who 1:05:40.200 --> 1:05:43.800 cast primary ballots for Biden, and they cast it for Biden, 1:05:43.840 --> 1:05:46.400 not for Biden Harris, and that you know, this was 1:05:46.440 --> 1:05:49.240 an anti democratic move. Now it's a bit of a 1:05:49.560 --> 1:05:52.000 difficult message for them. To carry just given everything that 1:05:52.000 --> 1:05:54.320 happened in January sixth, and you know a lot of 1:05:54.560 --> 1:05:57.600 voting laws that have been passed by Republican legislatures. But 1:05:57.680 --> 1:06:00.280 it's certainly something that's starting to catch on the votvoters. 1:06:00.280 --> 1:06:02.600 You know, there was a poll in the Washington Post 1:06:02.720 --> 1:06:06.280 about six weeks ago about the issue of democracy, and 1:06:06.320 --> 1:06:08.000 you know how important it was to voters, and it 1:06:08.040 --> 1:06:10.840 was more than sixty percent said it was extremely important. Now, 1:06:10.840 --> 1:06:12.680 the only thing that came close to that was the economy. 1:06:12.720 --> 1:06:15.640 So this is vitally important to voters. Yet they actually 1:06:15.720 --> 1:06:18.320 said in these six swing states that they trusted Trump 1:06:18.400 --> 1:06:21.200 a little bit more than Biden to handle those issues. 1:06:21.600 --> 1:06:24.600 So it's you know, it's something that's been defining for 1:06:24.880 --> 1:06:27.200 our politics for the last four years. You know, President 1:06:27.200 --> 1:06:30.080 Biden made his last major address before the midterms on 1:06:30.160 --> 1:06:32.520 issues of democracy, and then Democrats did very well in 1:06:32.520 --> 1:06:35.640 the midterms. So it's something that's very much to the 1:06:35.680 --> 1:06:39.240 forefront of the conversation. Is everything's happening with Vice President Harris, 1:06:39.280 --> 1:06:41.320 Democrats coalescing and all that. 1:06:41.760 --> 1:06:44.880 Is it fair to say that voting has changed just 1:06:44.920 --> 1:06:47.320 in the two years since the mid terms or in 1:06:47.360 --> 1:06:49.480 the four years since the twenty twenty election, Like have 1:06:49.560 --> 1:06:52.760 the rules in certain states changed, oh significantly, And there's 1:06:52.800 --> 1:06:54.120 often easier or harder to vote. 1:06:54.120 --> 1:06:55.760 It depends on where you are, and it depends on 1:06:55.800 --> 1:06:59.080 who you are. There's been, you know, efforts to limit 1:06:59.160 --> 1:07:02.080 mail voting especial, and so if you're in a state 1:07:02.120 --> 1:07:04.240 where they change the mail voting rules and you were 1:07:04.240 --> 1:07:06.360 once a mail voter, there's some things that you now 1:07:06.400 --> 1:07:09.280 have to be aware of. Like let's say in Wisconsin, 1:07:09.320 --> 1:07:12.240 there's been this whiplash about using dropboxes, which is where 1:07:12.240 --> 1:07:13.840 you can bring an ASDA ball drop it off just 1:07:13.840 --> 1:07:16.200 like a mailbox. A lot of voters love that because 1:07:16.200 --> 1:07:19.280 you're not bound by whether a voting office is open 1:07:19.400 --> 1:07:21.240 or not. Let's say you can't go during work hours 1:07:21.280 --> 1:07:22.960 you're a shift worker. You could only go at say 1:07:22.960 --> 1:07:25.600 six am or eight pm. You drop off your ballot. 1:07:25.880 --> 1:07:30.800 It's easier for the midterms. The Wisconsin Supreme Court said, no, 1:07:30.880 --> 1:07:32.720 you can't do that, so all those voters couldn't do 1:07:32.760 --> 1:07:36.640 that anymore. And then the newly constituted Wisconsin Supreme Court, 1:07:36.640 --> 1:07:39.280 which now means democratic even though they're nonpartisan. It was 1:07:39.320 --> 1:07:42.080 once conservative. Now they're putting them back right, so maybe 1:07:42.160 --> 1:07:43.920 voters can go use that. So that's just one example 1:07:43.960 --> 1:07:46.880 of like the shifts. And there's also the shift in 1:07:46.920 --> 1:07:51.280 the just the wholesale voting behaviors that is really kind 1:07:51.280 --> 1:07:54.520 of defined everything since the pandemic. You know, voting by 1:07:54.520 --> 1:07:57.360 mail used to kind of be a Republican advantage. 1:07:57.000 --> 1:07:59.440 Yeah, Florida and Georgia, Like in Georgia. 1:07:59.160 --> 1:08:01.600 Where it's become such a lashpoint where Republicans are limiting it. 1:08:01.840 --> 1:08:04.520 You know, it was the Republican governor who brought it 1:08:04.560 --> 1:08:05.120 to Georgia. 1:08:05.320 --> 1:08:05.760 George W. 1:08:05.880 --> 1:08:09.240 Bush and Carl Rover were absolute masters of the vote 1:08:09.240 --> 1:08:11.160 by mail and using the mail. You know, there's a 1:08:11.160 --> 1:08:14.040 whole book written about it by Asasa Eisenberg. So it's 1:08:14.080 --> 1:08:16.560 interesting to see the patterns behave the politics change, and 1:08:16.600 --> 1:08:18.559 then yeah, there's a lot of laws that have been changed. 1:08:18.600 --> 1:08:21.000 All right, speaking of a book, how does someone who 1:08:21.080 --> 1:08:25.240 covers voting rights and democracy at the New York Times. 1:08:24.760 --> 1:08:26.600 Come on, you need a break after doing that, and 1:08:26.800 --> 1:08:28.720 I read about something completely different. 1:08:28.400 --> 1:08:29.839 Write a book about the Stone Pony. 1:08:30.160 --> 1:08:34.080 So I in between the sixteen and twenty elections, I 1:08:34.320 --> 1:08:37.680 was the New Jersey correspondent. I grew up going to 1:08:37.720 --> 1:08:39.679 the Stone Pony, and I grew up, you know, going 1:08:39.680 --> 1:08:42.720 to Asbury Park to see punk music. And when I 1:08:42.800 --> 1:08:45.439 was going in the nineties, in the early two thousands, 1:08:45.479 --> 1:08:47.760 Asbury was very different. To put it lightly, it was 1:08:48.040 --> 1:08:49.679 kind of dangerous. It was a ghost town. 1:08:49.800 --> 1:08:50.639 It was very rough. 1:08:51.160 --> 1:08:53.240 You know, there was abandoned buildings everywhere. There was this 1:08:53.320 --> 1:08:56.840 structure that was like an abandoned skeleton of like an 1:08:56.880 --> 1:08:59.800 apartment complex that had been failed multiple times. It just 1:08:59.880 --> 1:09:01.759 like you couldn't believe it that on the Jersey Shore, 1:09:01.840 --> 1:09:05.120 you know, this finite like Gold Coast on the East Coast, 1:09:05.320 --> 1:09:07.920 that this one town could just be so desolate. And 1:09:07.920 --> 1:09:09.719 that was my experience, but that was our stage. 1:09:09.760 --> 1:09:10.200 So we went. 1:09:10.640 --> 1:09:13.439 And then due to covering politics and moving to DC 1:09:13.760 --> 1:09:16.639 and going to college away from New Jersey, I hadn't 1:09:16.640 --> 1:09:18.760 seen Asbury for a while until I came back in 1:09:18.760 --> 1:09:19.760 twenty seventeen, and I. 1:09:19.720 --> 1:09:20.599 Was like, what happened? 1:09:21.040 --> 1:09:23.160 And so, you know, as a Jersey correspondent, I was 1:09:23.160 --> 1:09:24.920 still a political reporter, so I still had to cover 1:09:25.200 --> 1:09:28.400 you know, the new Governor Murphy Corey Booker's eventual presidential campaign. 1:09:28.439 --> 1:09:31.080 That was still like my main assignment. But I could 1:09:31.080 --> 1:09:33.679 still cover some of the culture. I wanted to tell 1:09:33.720 --> 1:09:36.719 this story about this town that bounced back because, especially 1:09:36.800 --> 1:09:39.200 having covered the twenty sixteen campaign, we learned about for 1:09:39.280 --> 1:09:42.519 every Asbury there's one hundred failed small towns, right. I 1:09:42.560 --> 1:09:44.280 wanted to tell that story that got at the spirit 1:09:44.320 --> 1:09:47.400 of what Asbury is. And it's a music town, and 1:09:47.439 --> 1:09:48.800 so I didn't want to just be like, it's got 1:09:48.800 --> 1:09:52.040 a hotel and you know, some new restaurants and investors, 1:09:52.080 --> 1:09:53.760 and well, that's all important, and you have to tell that. 1:09:53.760 --> 1:09:57.320 That wasn't the spirit. That felt important to me, to 1:09:57.400 --> 1:10:00.400 tell why this town's renaissance is important. And so I 1:10:00.439 --> 1:10:03.240 was like, Hey, this stone Pony's still there somehow magically 1:10:03.280 --> 1:10:06.120 in like open defiance of the expected lifespan of a 1:10:06.200 --> 1:10:09.000 rock club. Let me use that as my narrative trojan 1:10:09.040 --> 1:10:11.000 Horse to tell the story of Ezbray. 1:10:10.680 --> 1:10:14.959 Park Nick the Boss. Bruce Springsteen, he writes an introduction. 1:10:15.120 --> 1:10:17.200 You got him for the intro, But it's not just 1:10:17.320 --> 1:10:19.920 Bruce Springsteen who you spoke to for this book. Steve 1:10:20.000 --> 1:10:24.600 van Zandtlofgrin, the Jonas Brothers. All three are there more 1:10:24.680 --> 1:10:27.720 than three Jonas brothers. The Jonas Brothers are three in 1:10:27.760 --> 1:10:30.040 the band. There's just three okay, in the band, there's 1:10:30.080 --> 1:10:34.599 three Jack Johnson. It's an incredible lineup, John Popper, Russell 1:10:34.680 --> 1:10:38.280 Crowe as well Patti Smith. Talk to us about how 1:10:38.320 --> 1:10:41.000 you were able to get all these incredible people to 1:10:41.000 --> 1:10:41.680 speak to you for this. 1:10:42.080 --> 1:10:44.720 From the political world, you're kind of used to just 1:10:44.920 --> 1:10:48.040 slowly pulling threads to get more people to talk to you. 1:10:48.040 --> 1:10:50.120 You know, one leads to another. Hey, do you know 1:10:50.160 --> 1:10:51.920 this person? Can you help introduce me to this? 1:10:52.040 --> 1:10:54.400 We've got Chris Christie and that would make sense because 1:10:54.400 --> 1:10:56.320 you're a political report. I did Chris Christie. 1:10:56.320 --> 1:10:58.680 That was actually while he was campaigning for president. We 1:10:58.840 --> 1:11:02.439 did a video interview. Yeah, we just we did a 1:11:02.520 --> 1:11:04.519 video interview and that was like my New York Times thing, 1:11:04.600 --> 1:11:06.880 and then we shifted to lunch where we talked about 1:11:06.880 --> 1:11:09.360 the pony. And then I went to his event later 1:11:09.400 --> 1:11:09.960 and wrote a. 1:11:09.880 --> 1:11:12.400 Story off that, which interview was longer the pony one. 1:11:14.760 --> 1:11:17.200 He's a big fan, clearly, but it's you know it. 1:11:17.360 --> 1:11:20.360 I also think what was interesting to me was how 1:11:20.400 --> 1:11:22.200 many people were willing to talk. And I think it 1:11:22.280 --> 1:11:25.960 just speaks to this the weird draw or allure that 1:11:26.000 --> 1:11:28.920 the Stone Pony has for so many artists in part 1:11:28.960 --> 1:11:31.200 because of the spirit that like Springsteen, South Side and 1:11:31.240 --> 1:11:33.759 Steviee kind of like imbued in the place. Tom Morello 1:11:33.840 --> 1:11:35.599 calls him the good ghosts that are in the Pony, 1:11:35.640 --> 1:11:38.160 And I think so many artists feel that, and it 1:11:38.240 --> 1:11:41.040 really is kind of like it works for so many 1:11:41.040 --> 1:11:43.760 different genres, right Like Patti Smith felt that and she 1:11:44.200 --> 1:11:46.439 felt such a connection to the club because it felt 1:11:46.479 --> 1:11:49.200 like one of those clubs that helped her establish herself 1:11:49.200 --> 1:11:52.760 in New York, the same way that like Mike McCready felt, 1:11:53.160 --> 1:11:55.400 the guitarist and Pearl Jam felt an amazing connection there 1:11:55.400 --> 1:11:57.920 because it reminded him of his origins when like crowds 1:11:57.920 --> 1:11:59.680 were on top of you and you know, you could 1:11:59.720 --> 1:12:01.880 see everyone in the crowd so clear that you could 1:12:01.880 --> 1:12:03.880 read their beer labels, and what that felt like as 1:12:03.920 --> 1:12:06.760 a musician. There's a common phrase that like, you play 1:12:06.840 --> 1:12:08.280 small rock clubs when you're on your way up and 1:12:08.280 --> 1:12:10.240 when you're on your way down. But I think the 1:12:10.240 --> 1:12:12.360 Pony kind of cuts across that a little bit because 1:12:12.360 --> 1:12:15.200 it creates that bond with a lot of artists that 1:12:15.200 --> 1:12:18.439 they want to get something back that they've lost as 1:12:18.479 --> 1:12:20.800 they've moved up and they still play it. Russell Crow's 1:12:20.800 --> 1:12:22.960 a great example. He was playing with this band thirty 1:12:23.000 --> 1:12:25.920 Out for Grunts he's had for forever, and he booked 1:12:25.920 --> 1:12:28.880 a tour right before Gladiator comes out when he's you know, 1:12:29.120 --> 1:12:31.320 sexiest man in the world, one of the most A 1:12:31.439 --> 1:12:34.840 List celebrities of all A list celebrities, and he had 1:12:34.840 --> 1:12:37.559 booked Madison Square Garden Theater, not the full garden but 1:12:37.600 --> 1:12:39.640 still like a six thousand person venue, and then the 1:12:39.640 --> 1:12:43.759 Pony it's about six hundred and so once he's a megastar, 1:12:43.800 --> 1:12:45.280 they were like, well, you got to cancel the Pony 1:12:45.640 --> 1:12:47.400 because you're in the radius now, and he was like, no, 1:12:47.760 --> 1:12:49.599 I'm going to cancel the Garden. 1:12:50.040 --> 1:12:51.040 I don't need that. 1:12:51.600 --> 1:12:53.559 I want to do I want to do the Stone 1:12:53.560 --> 1:12:55.639 Pony and like that just and he has an interesting 1:12:55.640 --> 1:12:57.080 story in the book how he was actually going to 1:12:57.160 --> 1:13:00.240 play in New York on September tenth, two thousand one. 1:13:00.400 --> 1:13:02.800 So playing at the Pony actually might have because he 1:13:02.840 --> 1:13:04.559 was staying at a hotel right next to the Towers, 1:13:05.520 --> 1:13:07.840 might have, you know, saved his life. But just the 1:13:07.840 --> 1:13:11.800 fact that he gave up five five hundred fans to 1:13:11.920 --> 1:13:14.120 play at the Pony and what that would feel like, 1:13:14.200 --> 1:13:16.160 I think speaks to how so many people feel about them. 1:13:16.240 --> 1:13:19.160 Are you not entertained you say that, I'm sorry? 1:13:19.880 --> 1:13:21.200 I mean, how did it come to be? 1:13:21.479 --> 1:13:21.599 Well? 1:13:21.640 --> 1:13:23.840 It opened in you know, kind of a desperate time 1:13:23.880 --> 1:13:29.000 for Hasburry Park. It had experienced pretty traumatic race riots 1:13:29.000 --> 1:13:31.759 a few years beforehand, and that caused some pretty big flight. 1:13:32.200 --> 1:13:34.519 But what that also did is, as Stevie van Zandt 1:13:34.560 --> 1:13:36.240 says so lyrically in the book, it left it to 1:13:36.320 --> 1:13:38.920 us rockers, rogues, mystics and renegades. And I just I 1:13:38.960 --> 1:13:41.599 can like, we'll always hear him saying that, yeah in 1:13:41.600 --> 1:13:43.840 my head, and he just says it so effortlessly because 1:13:43.880 --> 1:13:46.840 he's just such a lyrical person. That created the scene 1:13:46.840 --> 1:13:49.439 of musicians that you know, you wouldn't expect to find 1:13:49.439 --> 1:13:51.840 on the Jersey Shore. You find it in Motown, in 1:13:51.960 --> 1:13:54.640 Nashville and New Orleans, but then for some reason you 1:13:54.680 --> 1:13:58.439 had it in Asbury Park. And once Springsteen starts taking off, 1:13:58.800 --> 1:14:01.479 people start paying attention to it, and then Southside Johnny 1:14:01.479 --> 1:14:04.280 and the Asbury Jukes start and they kind of really 1:14:04.479 --> 1:14:07.800 helped create this sound of music. It's rock and roll 1:14:07.840 --> 1:14:10.240 with horns and gospel and soul and R and B, 1:14:10.720 --> 1:14:13.360 and it was a sound you hadn't heard elsewhere, and 1:14:13.880 --> 1:14:16.280 it was dancy, and people wanted to dance to rock 1:14:16.360 --> 1:14:18.880 music again. Right like the whole guitar slinger thing. It 1:14:18.960 --> 1:14:21.559 kind of made people watch music. You were dancing again 1:14:21.600 --> 1:14:24.439 and people love that, and Bruce loved that, so he 1:14:24.520 --> 1:14:27.320 starts coming. People start learning about it. There's a famous 1:14:27.320 --> 1:14:29.840 broadcast of a South Side Johnny show in seventy six 1:14:30.160 --> 1:14:33.240 on eleven radio stations across the country, and that wasn't 1:14:33.280 --> 1:14:35.760 done that much. So now there's a scene and a 1:14:35.880 --> 1:14:38.639 sound and everyone wants to start coming. And then when 1:14:38.640 --> 1:14:42.000 Bruce becomes really famous, it also becomes his home. And 1:14:42.240 --> 1:14:44.439 you know, he says in the book, the things of 1:14:44.720 --> 1:14:47.240 celebrity that would bring you to New York in LA 1:14:47.400 --> 1:14:49.280 and all the things that normal people would do didn't 1:14:49.280 --> 1:14:51.320 interest me. What interested me was where I was from. 1:14:51.640 --> 1:14:53.799 These people mattered to me, and this place was interesting 1:14:53.800 --> 1:14:56.479 to me. And sustaining that scene, I mean, imagine right now, 1:14:56.520 --> 1:14:58.880 like if Taylor Swift picked a six hundred person club 1:14:58.880 --> 1:15:00.960 and just showed up there on Tuesday, people be camping 1:15:00.960 --> 1:15:02.600 out right like you wouldn't even like it within ten 1:15:02.640 --> 1:15:05.519 block radius. He was that famous after born born in 1:15:05.520 --> 1:15:08.840 the USA, so that he was still doing it created 1:15:08.920 --> 1:15:13.599 this spontaneity that lives on there, and it's it's maybe 1:15:13.600 --> 1:15:16.360 Brust will show up, but also it's maybe like I'm seeing, 1:15:16.560 --> 1:15:20.240 you know, a metal band, and maybe Zach Wilde shows up, 1:15:20.439 --> 1:15:22.240 and or you know, I'm seeing a punk band and 1:15:22.280 --> 1:15:24.240 maybe I'm seeing Take Back Sunday and the guys from 1:15:24.240 --> 1:15:26.320 Brand New come out, or I'm seeing you know, Midtown 1:15:26.360 --> 1:15:27.040 and Brian fallon. 1:15:27.040 --> 1:15:28.080 Because it continues. 1:15:28.360 --> 1:15:30.719 It's the spirit of the place and like the truest 1:15:30.760 --> 1:15:33.800 sense of the word, and it really, I think has 1:15:33.880 --> 1:15:36.439 just stuck in a way that like you can't take 1:15:36.479 --> 1:15:39.160 it out, and that's what keeps artists from coming back. 1:15:39.240 --> 1:15:41.360 You writ in the book about the transformation of Asbury, 1:15:41.680 --> 1:15:44.320 and I'm wondering if the Stone Pony will live on 1:15:44.400 --> 1:15:47.519 into the future because it has changed the area around 1:15:47.520 --> 1:15:48.519 it has changed so much. 1:15:48.760 --> 1:15:49.599 It's a great question. 1:15:50.080 --> 1:15:53.840 I think everyone in Asbury recognizes that the Stone Pony 1:15:53.880 --> 1:15:56.920 is the kind of spiritual, beating heart and soul of Asbury, 1:15:57.200 --> 1:15:58.960 and so as the towns come back in a kind 1:15:58.960 --> 1:16:02.599 of very organic way, they've done a great job at 1:16:02.840 --> 1:16:06.080 preserving that there's new condos, you know, the six million 1:16:06.080 --> 1:16:09.480 dollar condo. There's new development, but I think they understand 1:16:09.479 --> 1:16:12.040 that you can't touch the pony. You have to leave 1:16:12.040 --> 1:16:13.120 it there, and you kind of have to leave the 1:16:13.120 --> 1:16:15.360 summer stage there too, because it's become such a part 1:16:15.439 --> 1:16:18.200 of town, and like, you know, it's like this mini 1:16:18.280 --> 1:16:21.799 festival feel every night, and the sounds echo across the boardwalk, 1:16:21.840 --> 1:16:23.720 so like, even if you don't have a ticket, you 1:16:23.760 --> 1:16:25.599 were three blocks away on the boardwalk, you could hear, 1:16:25.920 --> 1:16:28.920 you know, them playing hopeless Romantic and so. 1:16:29.160 --> 1:16:29.880 That's pretty cool. 1:16:30.200 --> 1:16:32.479 You can't you just can't remove that. If you do, 1:16:32.960 --> 1:16:35.920 it's not Asbury anymore, right, it's just another wealthy beach town. 1:16:36.040 --> 1:16:37.759 Two bouncers did this right exactly. 1:16:37.840 --> 1:16:39.800 It started by two bouncers who were just like, I 1:16:39.840 --> 1:16:42.240 want to do my own thing, and they did. And 1:16:42.320 --> 1:16:44.240 you know, it's had its ups and downs. It's closed twice, 1:16:44.280 --> 1:16:46.679 and it's certainly not a bouncer run bar anymore. It's 1:16:46.760 --> 1:16:51.080 backed by major industry support, including Live Nation, but you 1:16:51.080 --> 1:16:52.240 know it persists. 1:16:52.840 --> 1:16:55.120 Yeah, I mean, listen, everybody talks about Asbury Park. I 1:16:55.160 --> 1:16:57.599 feel like it's just something so much more. Nick, Thank 1:16:57.600 --> 1:16:59.840 you so much. Really appreciate it. Did course a need. 1:17:00.200 --> 1:17:02.080 He has a new book out. He's, of course political 1:17:02.120 --> 1:17:04.080 correspondent for the New York Times. The book I Don't 1:17:04.120 --> 1:17:06.280 Want to Go Home, The Oral History of the Stone Pony. 1:17:06.479 --> 1:17:09.799 This is really fun. Thank you so much. This is Bloomberg. 1:17:13.439 --> 1:17:17.320 You're listening to the Bloomberg Business Week Podcast. Listen live 1:17:17.400 --> 1:17:20.599 each weekday starting at two pm Eastern on applecar Play 1:17:20.640 --> 1:17:23.479 and Android Auto with the Bloomberg Business App. You can 1:17:23.520 --> 1:17:26.760 also listen live on Amazon Alexa from our flagship New 1:17:26.840 --> 1:17:32.160 York station, Just say Alexa Play Bloomberg eleven thirty, The Cost. 1:17:31.880 --> 1:17:34.479 Of Longevity, the best pasta New York City, He doys 1:17:34.479 --> 1:17:37.120 go hand in hand, well, so we'll explain. And the 1:17:37.200 --> 1:17:40.120 right hat to upgrade your summer wardrobe. It's all in 1:17:40.120 --> 1:17:42.360 the latest edition of Bloomberg Pursuit, which you can read 1:17:42.360 --> 1:17:45.080 online on the Bloomberg and in the August edition of 1:17:45.080 --> 1:17:48.240 Bloomberg BusinessWeek Magazine. As we said now on newsstands. 1:17:48.280 --> 1:17:50.760 I promise also will tell you the right rolex to 1:17:50.840 --> 1:17:53.360 go with that hat, not like the quiet leg like 1:17:53.600 --> 1:17:57.040 you know, yeah, not like I don't know, but who does? 1:17:57.320 --> 1:18:00.439 And that's Chris Rouser. He's the editor of Blason all 1:18:00.479 --> 1:18:02.320 your role x needs. All right, we'll get to Rolexes 1:18:02.360 --> 1:18:03.960 in a minute, but first, Carol and I want to 1:18:03.960 --> 1:18:07.880 talk about living forever because longevity is so hot right now. 1:18:07.960 --> 1:18:09.240 Is it Brian Johnson's fault? 1:18:09.320 --> 1:18:12.160 And probably we I feel like Business Week actually really 1:18:12.240 --> 1:18:15.559 brought Brian Johnson into the public conversation. And now you know, 1:18:15.560 --> 1:18:17.519 a lot of people are talking about him and following him, 1:18:17.520 --> 1:18:21.880 and he's making products. But actually longevity itself is a 1:18:21.920 --> 1:18:25.760 bit passe. It's your health span that everyone's talking about. 1:18:25.800 --> 1:18:27.280 Can you explain that term? I don't even think I 1:18:27.320 --> 1:18:28.400 know how to use it in a sentence. 1:18:28.600 --> 1:18:32.360 Yeah, well, we had arguments with a copy desk about 1:18:32.360 --> 1:18:34.360 how to capitalize it, whether it was two words, because 1:18:34.400 --> 1:18:36.640 it is kind of a new ish thing. Lifespan is 1:18:36.680 --> 1:18:39.679 how long you live, Okay, health span is how long 1:18:39.760 --> 1:18:43.360 you live. Well, so you know, if we Americans are 1:18:43.360 --> 1:18:45.320 living longer and longer, everyone can expect to live to 1:18:45.320 --> 1:18:48.720 seventy seven or more. If you're living to ninety, but 1:18:48.800 --> 1:18:51.799 you're stuck in a chair, you're breaking bones, all that stuff, 1:18:51.840 --> 1:18:54.680 it's not valuable time, you know, and health span is 1:18:54.760 --> 1:18:57.559 maximizing that time. So that you're not breaking bones, you're well, 1:18:58.200 --> 1:19:01.640 you're mentally aware, and you're having fun until all the 1:19:01.680 --> 1:19:02.320 way until the end. 1:19:02.400 --> 1:19:03.880 So I take a pill and that's how I do it. 1:19:04.600 --> 1:19:09.720 You wish it's actually a shot or a shot. So 1:19:10.120 --> 1:19:12.760 last year Peter at TIA's book Outlive came out and 1:19:12.760 --> 1:19:14.719 it was very much about this. It was about medicine 1:19:14.760 --> 1:19:17.679 three point zero, which is preventative and predictive medicine. Rather 1:19:17.760 --> 1:19:20.160 than you bonk your head you go to a doctor, 1:19:20.240 --> 1:19:22.439 it's like a doctor looks at your whole body. You 1:19:22.479 --> 1:19:24.719 talk about nutrition, you talk about fitness, you talk about 1:19:24.720 --> 1:19:27.000 all the different ways that you can expand your health span. 1:19:27.439 --> 1:19:29.640 So that has been very much in the public consciousness 1:19:29.640 --> 1:19:31.479 for a couple of years now, and now there are 1:19:31.479 --> 1:19:35.120 a bunch of companies that are trying to provide services 1:19:35.160 --> 1:19:37.799 to help you do that. Because if you read Peter's book, 1:19:38.160 --> 1:19:41.920 the recommendations for fitness and stuff can be eight, nine, 1:19:42.000 --> 1:19:44.240 ten plus hours a week. You're just doing that on 1:19:44.280 --> 1:19:46.799 your own, maybe that's like a little bit hard to manage. 1:19:47.040 --> 1:19:49.360 You're supposed to do stuff about your grip strength, you're 1:19:49.400 --> 1:19:51.120 supposed to be doing yoga, you're supposed to be doing 1:19:51.160 --> 1:19:54.679 an hour V two mex Wait, grip strain. 1:19:54.840 --> 1:19:55.960 Yes, there's a. 1:19:55.880 --> 1:19:58.519 Whole chapter on grip strength. Okay, so anyway, it can 1:19:58.520 --> 1:20:00.639 be kind of onerous once it gets to like rocking, 1:20:00.920 --> 1:20:03.479 which is carrying around stuff with carrying on a heavy 1:20:03.479 --> 1:20:05.439 backpack for an hour, Like, is that why you load 1:20:05.520 --> 1:20:06.040 up your backpack? 1:20:06.240 --> 1:20:07.639 No, that's not why I lit up on the backpack. 1:20:07.680 --> 1:20:11.439 But it's why people will walk in vests that are weighted, yes, 1:20:11.479 --> 1:20:14.439 and wear backpacks that have just heavy objects in them 1:20:14.720 --> 1:20:17.360 without a purpose. Right, Well, her purpose is rocking. 1:20:17.560 --> 1:20:20.120 Like some of us carry around our children. Other people 1:20:20.120 --> 1:20:22.200 carry around forty pound backpacks. So there's a bunch of 1:20:22.280 --> 1:20:24.320 companies that are here to sort of help you do 1:20:24.439 --> 1:20:28.200 this and manage it. Do the testing, do the MRIs, 1:20:28.320 --> 1:20:31.200 do the fitness recommendations, do the nutrition all. 1:20:31.040 --> 1:20:32.960 That you could go? 1:20:33.160 --> 1:20:34.160 Do you even rock? 1:20:34.280 --> 1:20:34.479 Bro? 1:20:36.280 --> 1:20:38.160 When I got to the chapter in Peter Tya his 1:20:38.240 --> 1:20:39.920 book about grip strength, I was like, I don't know 1:20:39.960 --> 1:20:42.000 if I could do this. It's too much. 1:20:42.080 --> 1:20:43.280 Let's go get a bowl of ice cream. 1:20:43.479 --> 1:20:43.679 Yeah. 1:20:44.280 --> 1:20:47.439 So wait, Mark Elwood who wrote this story, right, he 1:20:47.520 --> 1:20:50.920 actually went through some testing, right, because it involves I 1:20:50.960 --> 1:20:53.160 feel like there's one company he talks about a lot 1:20:53.160 --> 1:20:54.240 of spitting into vials. 1:20:54.360 --> 1:20:57.200 Yeah, so Mark did a company that's based in London 1:20:57.240 --> 1:20:59.720 called Vavi and it was founded by doctor sabine To 1:21:00.200 --> 1:21:01.960 and it's actually been around for a while. It opened 1:21:01.960 --> 1:21:04.360 in two thousand and nine. And this is really one 1:21:04.439 --> 1:21:07.479 of the great sort of originators of this. You know, 1:21:07.520 --> 1:21:09.920 it's a nice quiet office. You go, you get a 1:21:09.960 --> 1:21:11.920 bunch of tests in the mail before you go to 1:21:12.000 --> 1:21:14.080 actually even meet with a doctor. Some of them are 1:21:14.080 --> 1:21:16.320 spit tests, some of them are fitness tests, and then 1:21:16.360 --> 1:21:18.599 you go and talk to a doctor who really goes 1:21:18.640 --> 1:21:22.200 through a whole litany of exams that you'd do an MRI. 1:21:22.520 --> 1:21:24.839 They do DNA testing to see if you have markers 1:21:24.840 --> 1:21:27.479 for certain conditions that could become problematic. 1:21:26.920 --> 1:21:27.599 When you're older. 1:21:27.960 --> 1:21:29.800 They do your weight tests, they make you run on 1:21:29.800 --> 1:21:31.800 a treadmill, all this stuff, and then they come back 1:21:31.840 --> 1:21:35.760 to you with recommendations and hers are sense to me. Yeah, yeah, 1:21:35.840 --> 1:21:37.439 I mean it feels like what you do in a physical. 1:21:37.479 --> 1:21:40.040 But usually you go for a physical, it's twenty minutes 1:21:40.479 --> 1:21:42.599 and then you never hear anything, and it's you would 1:21:42.600 --> 1:21:44.120 find out whether you're a cholesterol this. 1:21:44.120 --> 1:21:47.000 Quarterback, Okay, it kind of makes sense to you, Carol, 1:21:47.200 --> 1:21:50.240 I get it. It's expensive though. It's the type of 1:21:50.280 --> 1:21:53.479 thing that costs a lot of money. Chris, give us 1:21:53.520 --> 1:21:56.120 the costs, but also tell us what does the established 1:21:56.160 --> 1:21:59.760 medical community say about this rise in health span? 1:22:00.320 --> 1:22:02.679 So it can be quite expensive. I mean the stuff 1:22:02.680 --> 1:22:05.439 that we're talking about, generally managing your health and doing 1:22:05.439 --> 1:22:07.160 a good job is something you can do for free. 1:22:07.520 --> 1:22:10.240 But these companies, we wanted to do this story because 1:22:10.280 --> 1:22:12.240 there's a new one in New York called Continuum, which 1:22:12.280 --> 1:22:15.160 is ten thousand dollars a month. Equinox has a program 1:22:15.160 --> 1:22:17.400 which is forty thousand dollars a year they just started. 1:22:17.720 --> 1:22:21.599 So it can be quite expensive. But this idea of 1:22:21.760 --> 1:22:24.639 working with a doctor who you actually see and knows 1:22:24.680 --> 1:22:28.120 you well enough to make kind of preemptive recommendations is 1:22:28.160 --> 1:22:30.519 something that would be really great and is really widely 1:22:30.560 --> 1:22:32.640 regarded as like something that we don't have in the 1:22:32.680 --> 1:22:35.240 United States that we should have. The average person can 1:22:35.280 --> 1:22:38.679 expect to spend seventeen minutes with a doctor during a visit. 1:22:38.800 --> 1:22:40.439 We've all been there, and maybe that's not enough. 1:22:40.520 --> 1:22:41.720 Yeah, they book every fifteen minutes. 1:22:42.280 --> 1:22:43.680 You had an appointment this week, and you're like, I 1:22:43.680 --> 1:22:45.080 know I'm going to have X amount of time. You 1:22:45.120 --> 1:22:46.640 had your list going in and you're like, I'm just 1:22:46.680 --> 1:22:47.280 going to go through it. 1:22:47.439 --> 1:22:48.719 And the doctor still made a mistake. 1:22:48.920 --> 1:22:49.560 Yeah I made it. 1:22:49.680 --> 1:22:50.839 Yeah you caught him on the mistake. 1:22:50.880 --> 1:22:52.840 Oh yeah, yeah, I caught him. I won't get into that. 1:22:53.680 --> 1:22:56.320 He definitely made a mistake. You let's just say he's 1:22:56.360 --> 1:22:57.200 apped the wrong thing. 1:22:57.360 --> 1:23:01.320 Oh no, Tim's okay, it's okay, and the right thing 1:23:01.360 --> 1:23:02.000 got zapped. 1:23:02.360 --> 1:23:09.120 Okay, You've still got your beautiful face. The impact. You know, 1:23:09.160 --> 1:23:11.800 in America, only three percent of funds that are spent 1:23:11.880 --> 1:23:14.960 on healthcare are spent on preventative medicine, and that that 1:23:15.000 --> 1:23:17.360 should really change. Actually, and so there's a lot that 1:23:17.439 --> 1:23:18.919 can be done in this department. 1:23:18.920 --> 1:23:21.679 But what does the established medical community say about these 1:23:21.680 --> 1:23:24.040 types of products and services, Because you do quote some 1:23:24.040 --> 1:23:26.519 folks in there who say people know how to be healthy, 1:23:26.880 --> 1:23:30.120 They know that they need to eat well, move you, 1:23:30.200 --> 1:23:33.000 get exercise, reduce stress. Those are the basics. 1:23:33.120 --> 1:23:35.640 Yeah, there's critics of this, this sort of idea. I 1:23:35.640 --> 1:23:37.519 think nobody wants you to get in the way of 1:23:37.560 --> 1:23:41.880 you eating well, being healthy, exercising, doing stuff that will 1:23:41.880 --> 1:23:43.880 make you feel better when you're older. There is a 1:23:43.920 --> 1:23:46.640 group of critics of this field where say basically like 1:23:46.640 --> 1:23:49.920 we know what to do to live well. You eat well, 1:23:50.240 --> 1:23:52.840 you exercise, you take care of yourself. You have people 1:23:52.880 --> 1:23:56.519 to take care of you. So there's a placebo effect 1:23:56.600 --> 1:23:57.960 to a bit of it, which is one of the 1:23:57.960 --> 1:24:00.760 critics says about this, which is like basically, when you 1:24:00.800 --> 1:24:03.320 read Peter Atilla's book, part of what you like about 1:24:03.360 --> 1:24:05.400 it is that it's telling you to do stuff that 1:24:05.400 --> 1:24:08.679 you already do. So you're you're like, oh wow, great, 1:24:08.720 --> 1:24:11.120 Like I already exercise, I already rock. 1:24:11.560 --> 1:24:16.639 You know everybody, I don't think any of us rock. 1:24:16.720 --> 1:24:20.120 And they've done studies to show that even going to 1:24:18.760 --> 1:24:23.720 the to the store and putting like nutritional supplements in 1:24:23.760 --> 1:24:27.240 your basket makes you feel better. You know, Like there 1:24:27.280 --> 1:24:30.679 is just sort of idea of like I'm doing something 1:24:31.120 --> 1:24:34.720 and maybe we don't need We definitely don't need all 1:24:34.720 --> 1:24:36.840 these MRIs, like MRIs are a big part of this. 1:24:36.920 --> 1:24:40.320 Kim Kardashian was posting a video of her on her 1:24:40.360 --> 1:24:43.200 Instagram unpaid talking about how great MRIs are, and people 1:24:43.200 --> 1:24:46.160 were like, let's not recommend like unnecessary medicine and things 1:24:46.200 --> 1:24:47.680 that people can't forward. 1:24:47.640 --> 1:24:50.240 Right now, but there is something to this idea of 1:24:50.320 --> 1:24:52.400 how to stay healthier rather than like you go to 1:24:52.400 --> 1:24:54.120 a doctor when you're sick. You know, this concept of 1:24:54.200 --> 1:24:56.800 just taking care of yourself like kind of makes sense. 1:24:57.280 --> 1:24:59.360 Or you could just eat pasta. Yeah, I don't have 1:24:59.400 --> 1:24:59.880 an easy sa. 1:25:00.479 --> 1:25:07.240 No, please eat pasta. I love pasta. List Oh my god, 1:25:07.320 --> 1:25:09.320 that's a good choice. So we have this regular thing 1:25:09.320 --> 1:25:11.400 we do where we talk to top chefs in different 1:25:11.400 --> 1:25:14.080 cities and we get their recommendations on their favorite places 1:25:14.080 --> 1:25:16.360 to eat. So, you know, maybe it's sushi and tokyo, 1:25:16.840 --> 1:25:19.439 and we've done pizza in Rome, and so we did 1:25:19.560 --> 1:25:21.799 pasta in New York City. This is for the August 1:25:21.840 --> 1:25:25.599 issue of BusinessWeek. You may not think of August as 1:25:25.640 --> 1:25:27.719 a time when you want to have like a big, 1:25:27.760 --> 1:25:30.599 hardy bowl of pasta in hot, hot New York City, 1:25:31.240 --> 1:25:34.519 but Andrew Carmelini, who's one of the city's best chefs, 1:25:34.640 --> 1:25:36.760 said that he tried to take the carbonara off of 1:25:36.800 --> 1:25:39.759 his menu at our premium the East Village in the summer. 1:25:39.800 --> 1:25:41.599 He was like, we should do something lighter, like let's 1:25:41.600 --> 1:25:45.120 make it less like freamy and rich, and people freaked out. 1:25:45.720 --> 1:25:47.639 And he was like, no, you know what, Actually, kinda 1:25:47.800 --> 1:25:49.920 in the summer, people really want a big bowl of pasta. 1:25:50.000 --> 1:25:53.120 So Kate came up with all these recommendations. There is 1:25:53.160 --> 1:25:55.439 actually eighteen online, so you should go online to read 1:25:55.439 --> 1:25:59.040 the full thing. But there's the Buffalo Milk Caramel at 1:25:59.080 --> 1:26:03.439 don Angie in the village. There's Peachy al Arabiazza lod 1:26:03.479 --> 1:26:05.320 Eye in Midtown, which a lot of us love because 1:26:05.320 --> 1:26:08.080 we work not too far away. And the Cavatelli with 1:26:08.200 --> 1:26:10.960 Jamaican beef ragu at Teresi, And so if you can 1:26:11.000 --> 1:26:13.439 get in, good luck is really incredible. 1:26:13.439 --> 1:26:17.200 I've actually eaten at Resdora with Kate and that was 1:26:17.280 --> 1:26:19.080 quite an experience. I highly recommend you know what. 1:26:19.040 --> 1:26:22.000 I like about restaurant, But it's a list of places 1:26:22.000 --> 1:26:27.240 I've never been, always aspirational. You can there's one in Brooklyn, 1:26:27.280 --> 1:26:29.920 Daphne in Brooklyn. You can get Yeah, let's go. I 1:26:29.920 --> 1:26:32.679 have beef beef cheek ragou. Let's go there. 1:26:33.000 --> 1:26:33.679 What could be better? 1:26:33.720 --> 1:26:35.000 You're talking about pasta earlier. 1:26:35.560 --> 1:26:38.320 It's actually today's my favorite food. Plasta's my favorite food. 1:26:38.360 --> 1:26:38.960 So this is perfect. 1:26:38.960 --> 1:26:42.160 It's kind of perfect. Speaking of perfect, how about picking 1:26:42.160 --> 1:26:44.320 a perfect hat. Tim showed me a picture of a 1:26:44.360 --> 1:26:46.040 hat he wears on the weekends. It is not this 1:26:46.760 --> 1:26:49.600 kind of like he's on safari. I can picture it. 1:26:49.680 --> 1:26:52.080 I know exactly what it is. My husband has the 1:26:52.080 --> 1:26:56.880 same hate. There's no sun penetrating any of it. I 1:26:56.960 --> 1:26:58.599 kind of love this some fun hats. 1:26:59.200 --> 1:27:00.920 The type of hat that I wear is not the 1:27:00.960 --> 1:27:02.800 type of hat that one would wear if they were 1:27:02.840 --> 1:27:06.600 seeking a mate. Let's just say that. Okay, Okay, so 1:27:06.600 --> 1:27:09.479 it's a good hat for people who are coupled. Okay, 1:27:09.520 --> 1:27:11.000 so not a good hat. 1:27:11.880 --> 1:27:13.439 Yeah, this is the kind of stuff that comes out 1:27:13.479 --> 1:27:14.639 after the rings on the finger. 1:27:14.840 --> 1:27:18.719 Yeah, this is like, you know what, I'm not concerned 1:27:18.760 --> 1:27:19.519 in that department. 1:27:19.760 --> 1:27:21.360 These are a mix that this is. So we did 1:27:21.360 --> 1:27:23.320 a story that's like how it's not too late to 1:27:23.320 --> 1:27:26.240 be a hat person. August is a great time, maybe 1:27:26.280 --> 1:27:29.120 even recommended by your doctor time to wear a big 1:27:29.160 --> 1:27:30.479 hat to cover it, to get the sun out of 1:27:30.479 --> 1:27:32.640 your face. And we have a really great mix of 1:27:32.800 --> 1:27:35.280 cool hats and then also sort of silly hats. I 1:27:35.320 --> 1:27:37.400 would argue that the cool hats are the silly hats. 1:27:38.040 --> 1:27:41.160 There's a great visor that just says the weekend on it. 1:27:41.640 --> 1:27:45.320 I think Tim has that his name written all over it. 1:27:45.439 --> 1:27:48.360 Please please make it happen. What I love about these, though, 1:27:48.439 --> 1:27:51.400 is you can get a hat for fifty dollars up 1:27:51.439 --> 1:27:55.160 to fifteen hundred dollars, so it really runs the gamut. 1:27:54.280 --> 1:27:56.680 Yeah, that's like I was going to say, you think 1:27:56.720 --> 1:27:59.080 product doesn't make hats, lot To makes hats. 1:28:00.000 --> 1:28:02.320 I kind of love the one with the netting. It's 1:28:02.479 --> 1:28:03.040 it's kind of. 1:28:03.439 --> 1:28:06.000 Yes, does that. Yeah, there's one with netting by Steven Jones, 1:28:06.040 --> 1:28:09.479 who's a real like crazy milliner like he like hote Coatur. 1:28:09.520 --> 1:28:10.960 You see his hats on the runway. 1:28:11.200 --> 1:28:15.120 Is the Prada hat missing some materials because it looks 1:28:15.160 --> 1:28:17.920 like you get a sunburn in the shape of triangles 1:28:17.960 --> 1:28:19.040 all over your body. Yeah. 1:28:19.040 --> 1:28:21.120 The Prada hat is a bucket hat that has these 1:28:21.479 --> 1:28:24.240 It's woven and has these triangle cutouts. It's I would 1:28:24.280 --> 1:28:25.960 say it's more of a fashion excess. 1:28:27.680 --> 1:28:31.760 Hat triangles. I also do like the one. Is it 1:28:32.240 --> 1:28:35.360 number five on the list. It's from Paris, Casablanca, Paris. 1:28:35.360 --> 1:28:38.360 Oh yeah, just really cutee very cute. 1:28:38.800 --> 1:28:40.000 Well look good on your daughter. 1:28:40.240 --> 1:28:41.559 Yeah, yeah, that would look. 1:28:41.479 --> 1:28:44.840 Nice before we go, because we love you and you 1:28:44.880 --> 1:28:47.240 are Chris Rouser and we always check out what watch 1:28:47.240 --> 1:28:47.719 you're wearing. 1:28:48.320 --> 1:28:50.840 It's an Apple Watch today the quiet Rolex always bust 1:28:50.880 --> 1:28:53.800 me when I wear an Apple Watch. Yes, what is that? 1:28:54.080 --> 1:28:54.120 So? 1:28:55.000 --> 1:28:57.880 Rolex last year at the at the big trade show 1:28:57.880 --> 1:29:00.799 in Geneva, launched a totally new watch, which is unusual 1:29:00.880 --> 1:29:02.680 for them. They don't do that a lot. And it 1:29:02.720 --> 1:29:03.840 looks nothing like. 1:29:03.920 --> 1:29:05.240 Any Cimex, which I love. 1:29:05.280 --> 1:29:13.680 Timexes said, the Lex looks like a Times. 1:29:16.360 --> 1:29:17.479 Because it's very classic. 1:29:17.720 --> 1:29:20.800 It's very classic. It's called a perpetual nineteen oh eight. 1:29:21.000 --> 1:29:23.080 Chris is like, I can't talk to Master anymore. 1:29:23.160 --> 1:29:26.000 I'm I'm leaving. 1:29:26.520 --> 1:29:28.760 Well, So it came out last year and I you know, 1:29:28.800 --> 1:29:30.400 I didn't love it. I was like, I don't get 1:29:30.400 --> 1:29:32.599 why Rolex is doing this. It's a classic dress watch. 1:29:32.880 --> 1:29:35.639 It came in yellow or white, gold, black or white face. 1:29:36.320 --> 1:29:38.519 It looked very simple and they have these like big 1:29:38.560 --> 1:29:41.600 sports watches that people Everyone really likes that from them. 1:29:41.840 --> 1:29:43.320 The cool thing about it though, is that it has 1:29:43.320 --> 1:29:47.040 a transparent back. Of this line these nineteen oh eights 1:29:47.080 --> 1:29:50.280 and the whole thing about Rolex is they deprioritize the 1:29:50.280 --> 1:29:52.000 workings of the watch, which is what a lot of 1:29:52.040 --> 1:29:54.559 companies are like this. We have these amazing movements. Open 1:29:54.640 --> 1:29:57.400 up the back you can see look at the amazing watchmaking. 1:29:57.600 --> 1:30:00.479 And Rolex's thing has always been not about what their 1:30:00.520 --> 1:30:03.479 watchmaking says about them, but what you wearing a Rolex 1:30:03.600 --> 1:30:06.160 says about you. So you're not really supposed to be 1:30:06.280 --> 1:30:08.840 like showing off the mechanics and all of that. And 1:30:08.880 --> 1:30:11.800 so this line does show off the mechanics. And they 1:30:11.800 --> 1:30:13.680 came out with a new version, a new one this 1:30:13.760 --> 1:30:17.439 year that's Platinum, has this ice blued geochet dial. The 1:30:17.479 --> 1:30:19.240 line didn't make sense to me last year, but this 1:30:19.240 --> 1:30:22.040 one is so cool. It's very chic. I really get it. 1:30:22.040 --> 1:30:24.599 It's like a tradition, Platinum last forever. It's so strong. 1:30:25.000 --> 1:30:26.920 I really sort of see a new tradition coming out 1:30:26.920 --> 1:30:27.080 of this. 1:30:27.160 --> 1:30:29.240 And only cost what thirty thousand dollars. 1:30:29.400 --> 1:30:32.920 Only costs thirty thirty one thousand dollars. 1:30:34.080 --> 1:30:34.719 Like a TIMEX. 1:30:34.800 --> 1:30:35.000 Yeah. 1:30:35.040 --> 1:30:37.599 Whenever Brad the new editor or a BusinessWeek asks he's 1:30:37.600 --> 1:30:39.240 a watch in the section, he says, how much is 1:30:39.320 --> 1:30:41.520 that watch? I said, this one is a very affordable 1:30:42.120 --> 1:30:42.840 thirty one thousand. 1:30:43.240 --> 1:30:46.760 Yeah, it's a five figure watch rather than a six 1:30:46.800 --> 1:30:49.120 figure watch. Hey, a big thank you to Chris Rauser. 1:30:49.120 --> 1:30:52.240 He's the editor of Bloomberg Pursuits. You love him, and 1:30:52.280 --> 1:30:52.840 we love him. 1:30:53.120 --> 1:30:53.840 We certainly do. 1:30:53.880 --> 1:30:55.840 That wraps up the weekend edition of Bloomberg Business Week 1:30:55.880 --> 1:30:56.360 from Bloomberg. 1:30:56.400 --> 1:30:56.559 Ready. 1:30:56.600 --> 1:30:57.720 I don't know if he still loves me, since it 1:30:57.800 --> 1:31:00.519 makes no I love it all right. Thank you so 1:31:00.640 --> 1:31:01.799 much for joining us. Everybody. 1:31:01.840 --> 1:31:03.639 I'm Tim Stanoveek, I'm Carol Masser. 1:31:03.680 --> 1:31:06.240 Have a good and safe weekend. Wear a hat, everybody. 1:31:06.800 --> 1:31:11.440 This is the Bloomberg Business Week podcast, available on Apple, Spotify, 1:31:11.560 --> 1:31:15.280 and anywhere else you get your podcasts. Listen live weekday 1:31:15.320 --> 1:31:18.920 afternoons from two to five pm Eastern on Bloomberg dot Com, 1:31:18.960 --> 1:31:22.280 the iHeartRadio app, tune In, and the Bloomberg Business app. 1:31:22.360 --> 1:31:25.400 You can also watch us live every weekday on YouTube 1:31:25.520 --> 1:31:27.479 and always on the Bloomberg Journal