Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happened, Sloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes. Tim
Speaker 1: Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend
Speaker 1: edition of Bloomberg Business Week. For those of you keeping
Speaker 1: track week fifty seven, working from home still for so
Speaker 1: many Tim and I though both in the office this week,
Speaker 1: and I have to say, over the last week both
Speaker 1: of us reminded that COVID is alive and kicking, and
Speaker 1: concerns about possibly getting it, putting us back home, each
Speaker 1: of us for a few days. Yeah it did. I
Speaker 1: mean a running nose is no longer just a running nose.
Speaker 1: It's a running nose plus waiting a few days than
Speaker 1: a COVID test exactly, Fortunately a negative one on my
Speaker 1: part mine as well. Well. Speaking of the virus, US
Speaker 1: regulators pausing the use of J and J's vaccine as
Speaker 1: they await more information on possible complications coming up this hour,
Speaker 1: how that news may lead to more vaccine hesitancy. We'll
Speaker 1: talk with the EEO of Surgical Solutions and tim Even
Speaker 1: with the J and J setback, companies are plotting their
Speaker 1: way forward. We'll hear from the CEOs of Imax, Hyatt Hotels, Tapestry,
Speaker 1: and Mozilla, and one of the founders of Jet dot Com,
Speaker 1: Nate Faust, on his new startup Olive. All of that
Speaker 1: to come, we begin with this week's Chip Summit at
Speaker 1: the White House. President Biden stop economic and National Security
Speaker 1: advisors hosted more than a dozen chief executive officers to
Speaker 1: talk about the administration's two and a quarter trillion dollar
Speaker 1: infrastructure plan and the global semiconductor shortage. The President says
Speaker 1: there's bipartisan support in Congress for efforts to strengthen the
Speaker 1: U S supply chain and revamp batteries and semiconductors. Chin
Speaker 1: and the rest of the world is not waiting, and
Speaker 1: there's no reason why American should. Among those attending the
Speaker 1: CEOs of four GM, Intel, and Google. In a recent
Speaker 1: story in Bloomberg Business Week explored Intel's new hell Mary
Speaker 1: with a twenty million dollar bet on US manufacturing. We
Speaker 1: talked with Bloomberg Business Week editor Joel Weber and Tom Giles,
Speaker 1: Bloomberg technology executive at look until has the money, UM.
Speaker 1: And they still throw off a lot of cash from
Speaker 1: their existing business. UM. So I have no doubt that
Speaker 1: they're going to throw a lot of money at this problem. UM.
Speaker 1: The challenge for them is that they have slipped in
Speaker 1: production of the most advanced ships and just how quickly
Speaker 1: can you You can throw a lot of money at
Speaker 1: the problem, but how quickly can you get these new
Speaker 1: um fabs, these new chip production plants up and running, um,
Speaker 1: And how quickly can you fix the technology that they've
Speaker 1: fallen behind? That you know, making these chips smaller and
Speaker 1: smaller every cycle becomes harder and harder and harder to
Speaker 1: do at the scale that Intel needs to do it. Remember,
Speaker 1: they're the main supplier to the to the to the
Speaker 1: servers and the computers around the world. UM. And the
Speaker 1: fact of the matter is other companies have just gotten
Speaker 1: faster and better than they are at cranking these things
Speaker 1: out at scale. And that's the that's the real chans
Speaker 1: that they have right now. What's great about this story, UM,
Speaker 1: there's so much and I can only imagine the individuals
Speaker 1: you talk to it because there's so much insight into
Speaker 1: the different CEOs and the different stumbles that Intel did
Speaker 1: after just kind of owning I feel like the semiconductor
Speaker 1: industry you talk specifically, I feel like about a major
Speaker 1: blunder tom and that was the misstep it did with
Speaker 1: Apple by not linking up with them. How much did
Speaker 1: that set them back? Yeah, So when it comes to
Speaker 1: mobile chips um, that is an area where Intel just
Speaker 1: tried and tried again many times to get a told
Speaker 1: in that market. One of the early one of the
Speaker 1: early instances that we talked about in the story is
Speaker 1: when the former CEO, a guy by the name of
Speaker 1: Paul o'dalini, was you know, this is before the smartphone introduction,
Speaker 1: right in the mid two thousands. This is when Steve Jobs,
Speaker 1: the founder of Apple, came to Intel and said, Okay,
Speaker 1: we want to cut a deal with you to make
Speaker 1: chips or our phone and Paul and Paul o'dalini just
Speaker 1: just balked at it. He said he wasn't pleased with
Speaker 1: the terms of that. That ended up being a really um,
Speaker 1: you know, really landmark decision and one that has worked
Speaker 1: against them, mainly because what it did is as this
Speaker 1: business went to other companies, first Stampsung and then later
Speaker 1: this company in Taiwan called Taiwan Semiconductor Manufacturing Company. Will
Speaker 1: you win the contract to supply Apple? A lot comes
Speaker 1: with that, you get, part of you get, You get
Speaker 1: into this ecosystem, and you gained the ability to really
Speaker 1: be the point, the point, the supplier for this incredibly
Speaker 1: you know, fast moving market which was smartphone. I mean
Speaker 1: remember what it was like when when you know, fifteen
Speaker 1: years ago, when these when this was taking off, everybody
Speaker 1: was just rushing to get these and that created a
Speaker 1: lot of business for the semiconductor industry. They us that
Speaker 1: moment which became sort of the beginning of the mobile revolution.
Speaker 1: Um and you know, as you as you both write
Speaker 1: in the story, you know Intel's predicament didn't come about overnight.
Speaker 1: It's been a consequence of a decade. It's worth of missteps.
Speaker 1: One of my most favorite elements of this story, and
Speaker 1: what I think we do UM especially well with the
Speaker 1: magazine are these sort of like case studies and and
Speaker 1: this one really feels like a management case studies. So
Speaker 1: when when you step back and you know, having covered
Speaker 1: this company for years now, if you approach it through
Speaker 1: that case study, lens, what are some of the big
Speaker 1: management take takeaways? That you think. Um, you know, readers
Speaker 1: will find most interesting here. And please talk about Brian
Speaker 1: Kay Sure. Well, before we talked about Brian credetit, you
Speaker 1: have to go back to Andy Grove. He was one
Speaker 1: of the original founders of Intel and one of its
Speaker 1: longest lasting cdo and he was legendary, um specifically for here.
Speaker 1: He was very demanding, um. He you know, he was,
Speaker 1: he was very discipline um. And he ran Intel. You know,
Speaker 1: he was seen as a one of the early management
Speaker 1: guru um, after whom many of the biggest tech executives
Speaker 1: out there right now patterned their management style. That was
Speaker 1: Tom Giles, Bloomberg Technology Executive editor, along with Bloomberg Business
Speaker 1: Week editor Joel Weber. Intel is such a I feel
Speaker 1: like business school case study, and a lot of it
Speaker 1: has to do with management along the way. Yeah, thereof
Speaker 1: quite a shuffle of executives in recent years as well.
Speaker 1: Absolutely great story. Well coming up, US regulators maintain a
Speaker 1: pause in the use of Johnson and Johnson's vaccine because
Speaker 1: of risks the impact on the public. That's coming up next.
Speaker 1: You're listening to Bloomberg Business Week. This is Bloomberg. This
Speaker 1: is Bloomberg Business Week. With Carol Messer and Bloomberg Quick
Speaker 1: takes Tim Stone of it from Bloomberg Radio. The virus
Speaker 1: a setback this week for Johnson and Johnson's vaccine as
Speaker 1: a CDC panel meant to talk about possible risks and
Speaker 1: decided to maintain a pause on the use of the drug.
Speaker 1: The move Tim reminding us that the path forward is
Speaker 1: a winding one. I have to say when it crossed
Speaker 1: the Bloomberg bit of a shocker, it really was a shocker.
Speaker 1: Markets did seem to shrug it off, and to me,
Speaker 1: it was not just a story about Johnson and Johnson,
Speaker 1: but also a story about the other vaccines that have
Speaker 1: been approved for emergency use authorization, those from Fiser and Maderna,
Speaker 1: the MR and A vaccines. Yeah, absolutely listen. And it's
Speaker 1: just a reminder, like everyone has said, we need a
Speaker 1: portfolio of vaccines to get through this, especially something like
Speaker 1: Johnson and Johnson. Great for emerging markets, it's an easier
Speaker 1: it's a one shot vaccine, but nonetheless a little bit
Speaker 1: of a stumble this week. Well. For more on the
Speaker 1: virus and vaccine roll out one of our go to
Speaker 1: voices throughout the pandemic, ALYSSA wrapped the CEO of the
Speaker 1: healthcare solutions company, Surgical Solutions, It's really amazing that, you know,
Speaker 1: we are very fortunate still to feel this way. Only
Speaker 1: twenty two point three percent of the country is fully
Speaker 1: vaccinated in thirty six four percent or one shot in
Speaker 1: for the CDC, and so we're still less than of
Speaker 1: the population those of us that can jump for joy
Speaker 1: and feel like we are at least, you know, good
Speaker 1: to go for this round. So I feel really bullish
Speaker 1: that everyone who can get it, who is eager to
Speaker 1: get it, should and if it spies room there and
Speaker 1: it takes two shots versus one for at least a
Speaker 1: period of time, so be it do to two and
Speaker 1: just keep going. Well, listen, how's this playing out when
Speaker 1: it comes to to your staff who is on the
Speaker 1: front lines, Because we have talked to you in the
Speaker 1: past about vaccine hesitancy among frontline workers, among healthcare workers,
Speaker 1: but we've also heard about data that show that when
Speaker 1: more people do get vaccinated within social circles, people start
Speaker 1: to get on board if they were hesitant in the beginning.
Speaker 1: How's it playing out for your employees? Um, we have
Speaker 1: as you would imagine, it's an astute question. We have
Speaker 1: had pockets of perseverance and pockets of hesitancy. So some
Speaker 1: of the hesitancy has not surprisingly detailed with states or
Speaker 1: geographies that are more hesitant in general because of their
Speaker 1: political persuasions, and and where we've seen there being a
Speaker 1: lot of administration of the vaccine, like New York City,
Speaker 1: people are much less hesitant and much higher vaccination rates
Speaker 1: even within our own firm. I think that what's interesting
Speaker 1: is is that how Corona continues to play out is
Speaker 1: also really geo focused. As factually said, it might be
Speaker 1: all along. We've got hospitals in Michigan that are already
Speaker 1: teeming with COVID patients again fearing the second variant is here,
Speaker 1: and there are other places that are like empty with
Speaker 1: COVID right now. It just isn't happening right now. Empty
Speaker 1: might be too strong, but but very low incidents of
Speaker 1: COVID patients, So it's very varied. It's going to be endemic,
Speaker 1: right this is this is part of our world. I mean,
Speaker 1: I was talking to a bunch of CEOs for a
Speaker 1: Bloomberg event and they're like, we need to be ready
Speaker 1: for the next one because it's coming. I mean, how
Speaker 1: do you guys, see, what are the conversations an Lissa,
Speaker 1: you guys are having around that conversations are get the
Speaker 1: first round of vaccinations, preferably preferably with the efficacy, because
Speaker 1: then to tweak around the margins for variants with boosters
Speaker 1: is much easier than if you're starting from phase zero
Speaker 1: and if you in and and of course if you
Speaker 1: have already gotten vaccinated, even if it is a variant
Speaker 1: that isn't perfectly uh protected, maybe it will be a
Speaker 1: diminished immunal response. So you just have to hope that
Speaker 1: this first round of vaccinations is laying the foundation, which
Speaker 1: I actually genuinely believe it is. I'm still thinking about
Speaker 1: J and J here. Do you think this is the
Speaker 1: end of the J and J shot? Even if it
Speaker 1: if it you don't, Okay, So even if it don't,
Speaker 1: I'm not I have no insider information on jans Jan.
Speaker 1: I'm not a board member. But they've administered six point
Speaker 1: a million doses and there were six cases and they
Speaker 1: were all amongst women who experience these low levels of
Speaker 1: blood platelets um in combination with their vaccinations. So do
Speaker 1: I think there will be necessarily additional screens and flags
Speaker 1: when you should not necessarily get the J and J shot. Sure,
Speaker 1: but it's a it's a blood clot, you know, the
Speaker 1: cerebral venice sinus thrombosis c v s T, which hopefully
Speaker 1: they can research further and help screen better for the
Speaker 1: patients who would be a risk or tweet the vaccine
Speaker 1: to not cause that response. But again, I do agree
Speaker 1: with Nate Silver, this is unfortunately statistically insignificant. And you know,
Speaker 1: the risk of getting COVID and having it newly adverse
Speaker 1: health reaction is higher than the risk of having an
Speaker 1: adverse reaction from J and J little and anything else.
Speaker 1: So but when I and when I say and, I
Speaker 1: don't mean that it will be permanently pulled or suspended.
Speaker 1: What I mean is, even if it does get back
Speaker 1: to the point where the agencies are recommending that it
Speaker 1: be given in states, is there a chance that that
Speaker 1: ship sailed when the agency has made this decision to
Speaker 1: make this recommendation and it ultimately lead to people saying, Okay,
Speaker 1: well no thanks to the to the J and J. Instead,
Speaker 1: I'm going to go with the m R and A shots.
Speaker 1: It could, it could any other reality is we also
Speaker 1: don't know what else is in the on the horizon
Speaker 1: to be for emergency approval. I know, Astrosonica on others
Speaker 1: that have been produced globly are not popular or used
Speaker 1: here yet, but there will probably still be additional innovations
Speaker 1: yet that can continue to protect Americans from COVID nineteen,
Speaker 1: this variant or others. So I'm I'm still to bet
Speaker 1: on the technology and the innovators. It's just how I'm
Speaker 1: wired and what I believe in. But I do think that,
Speaker 1: you know, it's it's a tough position to be in
Speaker 1: for j J. I don't think it will be the
Speaker 1: last we see of their vaccine, but even so, whether
Speaker 1: it is or isn't, fortunately we have enough of the
Speaker 1: others being produced and so much more widespread distribution that really,
Speaker 1: you know, if people want to be getting these vaccines
Speaker 1: apprile after April nineteen, which we obviously hope they do,
Speaker 1: they should have no challenge doing so. There are some
Speaker 1: states that are have much higher stats than the national
Speaker 1: averages I've given you fully vaccinated some states anyone over
Speaker 1: sixteen is be knowledgeable for a long time, less populous states,
Speaker 1: but there are states that are closer to herd immunity
Speaker 1: than the country as a whole, So let's all get
Speaker 1: there as quickly as we can. How important is it
Speaker 1: all that we all get quickly globally, get there quickly
Speaker 1: globally ALYSSA in order to really getting ahead of this
Speaker 1: and beyond it. I think economically it's absolutely crucial, and
Speaker 1: I think pragmatically it's also really important. We live in
Speaker 1: a global marketplace and a global business enterprise, and the
Speaker 1: phony and false yet real I guess that's actually more
Speaker 1: on walls we've put up in this in this last
Speaker 1: year and a half in terms of freedom of movement
Speaker 1: internationally have real consequence. I haven't been able to get
Speaker 1: my oparent from France. On a very personal note, I
Speaker 1: have friends who are not being able to see loved
Speaker 1: ones with the ease in Europe. Though, we need a
Speaker 1: solve globally for these vaccination schedules so that we can
Speaker 1: begin that freedom of movement and goods more easily, absolutely
Speaker 1: as soon as possible will be best for the global economy.
Speaker 1: Otherwise the people negatively impact in the country's negatively impact
Speaker 1: by this are going to get even more acutely you know,
Speaker 1: impacted economically. That was a lista wrap. CEO of Surgical solutions,
Speaker 1: reminding us we need a global solution. It can't just
Speaker 1: be focusing on your country. I mean the borders, and
Speaker 1: the virus doesn't know a border. The problem is we
Speaker 1: do not have a global solution. There are still wide,
Speaker 1: widespread parts of the world that do not have access
Speaker 1: to vaccines yet. I always think about our conversation with
Speaker 1: Nobel Laurie Joseph Steak Let's saying, listen, developed nations, you've
Speaker 1: got to take care of the developing world as well
Speaker 1: when it comes to vaccines and other measures. We'll still ahead.
Speaker 1: On Bloomberg Business Week, what do Amazon, Black Rock, Google,
Speaker 1: and Warren Buffett have in commoned, Well, they all signed
Speaker 1: a letter in opposition of any discriminatory legislation that would
Speaker 1: make it harder for people to vote. This is legislation
Speaker 1: that is happening in almost every state, Carol. It was
Speaker 1: a corporate come together and to go to voice on
Speaker 1: leadership Yales Jeff Snenfeld on companies and those CEO is
Speaker 1: banning together and those that don't. There are implications. This
Speaker 1: is Bloomberg broadcasting from the financial capital of the world
Speaker 1: Bloomberg eleven Frio in New York to Washington d C
Speaker 1: Bloomberg to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the country Sirius XM Chado one
Speaker 1: nineteen and around the globe the Bloomberg Business app and
Speaker 1: Bloomberg Radio dot com. This is Bloomberg Business Week. This
Speaker 1: week Bloomberg Live hosted an event. It was called Disruption
Speaker 1: the New Economic Driver, and timis part did that event.
Speaker 1: I caught up with Jeffson and Felt, senior Associate Dean
Speaker 1: for Leadership Studies at Yale University School of Management. Well.
Speaker 1: He also spoke with US Carroll in our daily radio
Speaker 1: show about this week's published letter that was signed by
Speaker 1: hundreds of companies and executives opposing quote any discriminatory legislation,
Speaker 1: end quote that would make it harder for people to
Speaker 1: vote well. Full disclosure. Michael R. Bloomberg, founder, Bloomberg ALP
Speaker 1: and Bloomberg Philanthropies was a co signatory. Here's more from
Speaker 1: yalees Jeffson and Felt on the action v CEOs is remarkable.
Speaker 1: It is it is a great affirmation of each other,
Speaker 1: which is what we found on our weekend event. We
Speaker 1: had on forty eight hours notice pulled together these titans
Speaker 1: of industry on Saturday, and we invited a ninety of
Speaker 1: them came out and then while they're Kenn Fraser and
Speaker 1: Ken Chenault invited them UH and then invited them and
Speaker 1: their friends UH to join this petition that was an extension,
Speaker 1: of course, with the seventy two black executives that signed
Speaker 1: a week earlier. And the response was thunderous and of
Speaker 1: it is um you know, it's it's it's kind of
Speaker 1: a strong affirmation of each other, but also a strong
Speaker 1: statements They're not going to be intimidated by anybody says
Speaker 1: give us your money and shut up. You know, it's
Speaker 1: about taxation and representation. Do you say this unfolding in
Speaker 1: front of you, then yes, it It was kind of
Speaker 1: a if you don't mean to offend anybody politically, but
Speaker 1: if you take a look at these voter suppression rules,
Speaker 1: these laws going across forty seven states now it was
Speaker 1: forty two last week and now atty seven, is that
Speaker 1: it's seeing that as as a as a viral disease
Speaker 1: in itself counter it has been this gathering storm of
Speaker 1: CEO support. UH. It is in fact a support of
Speaker 1: defiance in the eyes of those trying to intimidate them.
Speaker 1: It's happened before in Georgia. Some of the Georgia companies,
Speaker 1: like you know, Coke and especially Delta and others who
Speaker 1: got out front on gun safety issues and things suffered
Speaker 1: ridiculous reprisals for the positions they took in terms of
Speaker 1: selective regulator a taunts and actual selected taxation things that
Speaker 1: are unconstitutional, of course, but they still became issues they
Speaker 1: had to wrestle with these things. Are CEOs are saying
Speaker 1: we're not going for that kind of like they did
Speaker 1: when Ken Fraser of merch stood out in front and
Speaker 1: stepped off President Trust's Business Advisory Council, and then then
Speaker 1: you saw that stampede where they all left. But the
Speaker 1: first first seven American history that the business community said
Speaker 1: no to the commander in chiefs called action. I wonder though,
Speaker 1: beyond this statement, beyond this letter, and beyond what these
Speaker 1: companies are saying when it comes to actions and what
Speaker 1: these companies can do to actually compel the state legislatures
Speaker 1: not to move forward with these restrictions. Well, you know,
Speaker 1: that's a really good thing. It's easy, you might say,
Speaker 1: it's easy to sign on. It's really not that easy
Speaker 1: to get out in front and put your names out there.
Speaker 1: It's still people will say talk is cheap. It's not cheap.
Speaker 1: There are repercussions, and it's really great they did this. However,
Speaker 1: what else beyond the talk enough with petitions, you know,
Speaker 1: can have a kaleidoscope of these petitions already is the
Speaker 1: next day age of this is you're seeing that there
Speaker 1: are economic sanctions. Nobody in Georgia wanted, you know, the
Speaker 1: Major League Baseball to move the All Star Game out.
Speaker 1: We had, though, commissioned a morning console overnight set of
Speaker 1: interviews of a couple of thousand Americans, and what was
Speaker 1: astounding is that it is very popular in the country
Speaker 1: outside of Georgia, especially with avid baseball fans. And we
Speaker 1: saw yesterday Apple with Will Smith pull out in the
Speaker 1: entertainment sports filmmaking center of Georgia is very strong that
Speaker 1: these kinds of economic hits are profound. But there are
Speaker 1: other issues. There are legislative issues, and there are things
Speaker 1: like you may have seen today. Brad Krp just announced,
Speaker 1: the chairman of Paul Weiss, that they have bounded together
Speaker 1: almost seventy of the nation's largest law firms for swat
Speaker 1: teams instant ready right now to go out to these states. Hey, Jeff,
Speaker 1: just quickly, and it's gonna be quick, only about thirty seconds.
Speaker 1: Is Delta making a mistake, Coca Cola making a mistake
Speaker 1: there in the state of Georgia by not being part
Speaker 1: of this petition or at least this signature um this letter.
Speaker 1: Are they making mistake? Just quickly? Great, great question because
Speaker 1: you know Walmart, Doug McMillan has been very out these
Speaker 1: kinds of issues and said was Jamie Diamond and JP Morgan.
Speaker 1: Is the fact that some didn't sign and think, you know,
Speaker 1: we've been out there and we don't need to be
Speaker 1: the only ones that they don't know who else is
Speaker 1: going to be, so you know, there's no question about
Speaker 1: where they stand on these issues. That's Jeff Snenfeld, Senior
Speaker 1: Associate Dean for Leadership Studies at Yale University School of Management.
Speaker 1: And I think what's interesting is tim, you know, I
Speaker 1: do wonder when we look back in a few years,
Speaker 1: how we look at companies and their leaders and how
Speaker 1: they weighed in on some really important issues of our time,
Speaker 1: whether it's wealth gaps, racism, inequities. I wonder how history
Speaker 1: will judge them. And one thing that really stuck out
Speaker 1: to me about the interview was when you asked him
Speaker 1: about the companies that didn't sign this, because there were
Speaker 1: a lot of companies that that that didn't sign this
Speaker 1: that have been outspoken about this. Be sure to catch
Speaker 1: the full interview. It's available at Bloomberg dot com. And
Speaker 1: here more from that Bloomberg Live event all about disruption
Speaker 1: in the economic impact. You can find that at Bloomberg
Speaker 1: Live dot com. You're listening to Bloomberg Business Week coming
Speaker 1: up next more on leadership and disruption and Carol, more
Speaker 1: from that be Live event that you hosted. Yeah, I
Speaker 1: gotta tell you, I had a dream team of leaders,
Speaker 1: the CEOs of Hyatt Hotels, Imax, Tapestry, and Mozilla, all
Speaker 1: coming from different industries and all very different types of
Speaker 1: leaders and some great interviews. If I may say so myself.
Speaker 1: Thank you. This is Bloomberg. You're listening to Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes. Tim Stinovik
Speaker 1: from Bloomberg Radio Bloomberg Live hosted a virtual event this week. Tim.
Speaker 1: It was about disruption as the new economic driver. It
Speaker 1: was a really very timely topic because we've all lived
Speaker 1: through so much over the last twelve to thirteen months
Speaker 1: and we're wondering how it pays off longer term. At
Speaker 1: the event, I got to talk with a diverse lineup
Speaker 1: of CEOs, the CEOs of Imax, Hyatt Hotels, Tapestry, Mozilla.
Speaker 1: You talked about how disruption has led to change and
Speaker 1: innovation at the companies and across the industries. First up,
Speaker 1: though you've got their thoughts on the outlook some thirteen
Speaker 1: months in on the pandemic. We started with Hyatt CEO
Speaker 1: Mark Coplemasian. I would say that, you know, we've we've
Speaker 1: been enjoying some very positive momentum since the end of
Speaker 1: January this year in the United States. Um China went
Speaker 1: through a shutdown and has reopened again and is growing
Speaker 1: significantly post reopening. But I would say that the as
Speaker 1: much as we see booking activity steadily increase, we're also
Speaker 1: positioned to be ready for potential retraction. And the only
Speaker 1: reason we are is not because I have crystal ball.
Speaker 1: The one thing I've learned over this past years that
Speaker 1: that's not possible. But we've become conditioned to just recognize
Speaker 1: that the path forward is not able to be predicted
Speaker 1: much past becoming weaker, so and so we remain ready
Speaker 1: to pivot if we need to. There's no evidence that
Speaker 1: that's a problem at this moment. But you know, there
Speaker 1: are more surges that we're seeing due to the new
Speaker 1: variants um that are now the dominant caseload in many countries,
Speaker 1: quickly becoming the the primary one of the United States.
Speaker 1: So we we remain ready for a retrenchment, but so
Speaker 1: far we've seen positive momentum. Joanne Crave Voice Rot come
Speaker 1: on in on this. You're the c of Tapestry. Tell
Speaker 1: us about your brands, whether it's coach, Kate Spade or
Speaker 1: Stuart Whitzman. What are you looking for in the next
Speaker 1: six months to a year. Well, I will say we're optimistic,
Speaker 1: but the the operative word, you know, over the past
Speaker 1: year has really been agility. Um, you know, echoing marks comments.
Speaker 1: We had very little visibility coming through the pandemic as
Speaker 1: to what the trends would be, and our focus as
Speaker 1: a as a company has been to get closer to
Speaker 1: our consumer, to lean into digital and data and analytics
Speaker 1: tolls that are becoming more available. We were seeing some
Speaker 1: of these disruptions happened pre pandemic and really embracing that
Speaker 1: and then becoming a leaner and more agile organization so
Speaker 1: that we can be more responsive as we see these
Speaker 1: trends unfold. I will tell you that a year ago,
Speaker 1: we weren't talking about or thinking about the opportunity to
Speaker 1: see a vaccine roll out quickly, and we are here now.
Speaker 1: There has been a setback, particularly with the news today,
Speaker 1: but we continue to be optimistic. You know. I think
Speaker 1: our customers are optimistic. They're they're looking forward to getting
Speaker 1: out and embracing the physical world again. And we've been
Speaker 1: encouraged by the amount of support and the amount of
Speaker 1: engagement we've seen all the way through the pandemic with
Speaker 1: our brands, and and we think we're well positioned and
Speaker 1: believe we're well positioned as we come out of the
Speaker 1: pandemic to continue to serve our customers. Let's turn out
Speaker 1: a rich Gil Fund, he's the IMAX CEO, and rich
Speaker 1: you and into COVID early because of your exposure in Asia.
Speaker 1: How are things going? Are people going back to theaters
Speaker 1: where people feel safe, Carol, And in fact they are safe.
Speaker 1: They're coming back to theaters in some cases even in
Speaker 1: record numbers. So UM China, for example, we were we
Speaker 1: operate in eighty four countries and in China we typically
Speaker 1: do about ten percent of the Chinese box office on
Speaker 1: one percent of the screen. So Chinese New Year is
Speaker 1: the biggest movie going time of the year in China.
Speaker 1: It's around February, and this year was up thirty over
Speaker 1: the record which was two thousand and nineteen. UM. In
Speaker 1: Japan we had a film called Demon Slayer, which became
Speaker 1: the highest grossing film in the history of Japan, highest
Speaker 1: grossing IMAX film as well, despite capacity limitations a couple
Speaker 1: of months ago. So there's no question in my mind
Speaker 1: where it's safe, it's going to bounce back, and it
Speaker 1: already is in a big way. Um. You look at
Speaker 1: North America, we just had Godzilla versus Kang which, as
Speaker 1: you know, open way stronger than people thought to around
Speaker 1: fifty million dollars it's for this weekend. Europe is a
Speaker 1: little slower, a little bit more troubling, as is Latin America.
Speaker 1: So I think you really have to look at this
Speaker 1: on a region by region basis. And again, as as
Speaker 1: as others were just saying, I don't think you could
Speaker 1: get too high or too low. One of my favorite
Speaker 1: business sayings. It's never as good as it looks or
Speaker 1: as bad as it seems. So I think you have
Speaker 1: to look as a trend wise it's getting better, and
Speaker 1: not get too distracted by the short term news. Mittel Baker,
Speaker 1: you're the CEA of Mozilla. Has your company benefit from
Speaker 1: the past year and everyone going online and doing a
Speaker 1: lot of browsing online or we've seen in the last
Speaker 1: year is change in habits. You know, the title disruption
Speaker 1: I think is quite real here because even online people's
Speaker 1: habits are changing, how they're what they're doing. You can
Speaker 1: see that. And so I would say, you know, Mozilla,
Speaker 1: our goal is a better internet. Uh, and the reason
Speaker 1: that our organization exists is to build a better internet.
Speaker 1: We do it through the market, so or a software vendor,
Speaker 1: you know, like others, but our our actual motivation is
Speaker 1: something quite different. And so if Firefox has done quite
Speaker 1: well in the last year, and in the bigger picture,
Speaker 1: I'd say, you know, both the good and the bad
Speaker 1: of the current state of the Internet have been magnified,
Speaker 1: and so obviously in the larger picture, we'd say we'd
Speaker 1: really succeeded because we're all living online and doing things
Speaker 1: online we hadn't imagined before. But also the issues with
Speaker 1: the nature of online life and the way our engagement
Speaker 1: works are so obvious, and so you know, with Firefox
Speaker 1: we try to address that now even more. How do
Speaker 1: you search things? How do you find what you want?
Speaker 1: How do you find with pocket you know, content that's
Speaker 1: worth your time, not clickbait. How to test out ways
Speaker 1: of engagement that aren't about building outrage for more engagement,
Speaker 1: so that our you might say, the better side of
Speaker 1: human nature can be more reflected in online life, and that,
Speaker 1: of course is a work in progress. Time for a
Speaker 1: rapid round of questions. Here reach gil Fond I'm ax CEO.
Speaker 1: I'm gonna start with you. A disruption become an economic
Speaker 1: driver for your company? Yes or no? Yes for sure.
Speaker 1: I think the new circumstances um you know, humans are
Speaker 1: very adaptable and the will to survive is primary, and
Speaker 1: I think you put those together, it forces you to
Speaker 1: look at different ways of doing things. Mittel Baker, what's
Speaker 1: your take at Mozilla? Absolutely? Absolutely, things we never really
Speaker 1: imagined could be done online, our online and so that's
Speaker 1: a driver of opportunity, challenge, ability to move in all
Speaker 1: sorts of different ways, you know, from as I said,
Speaker 1: browsing to content, but also what's your experience engaging in
Speaker 1: content and what is it like to be online? And
Speaker 1: that overall experience. And I'll even maybe echo Mark and say,
Speaker 1: how does it online? How do how do we amend it?
Speaker 1: So it drives us closer towards holistic well being more
Speaker 1: couple amazing? And how has disruption impact at Hyatt Hotels?
Speaker 1: I think probably the biggest lasting dividend, if you will,
Speaker 1: from this past year is a change way of working.
Speaker 1: I think going faster, being more adaptable, um, having applying
Speaker 1: a growth mindset at every turn. These are the things
Speaker 1: that will persist and continue to add value over time.
Speaker 1: And Joe and Crave voice aunt what about a tapestry? Yeah,
Speaker 1: I'll wrap it up by saying that, you know, I
Speaker 1: agree that it's been a catalyst. Um, it's allowed us,
Speaker 1: you know, to to build a case for change. It
Speaker 1: was quite clear when all of our stores closed that
Speaker 1: there was change that we needed to do. And I
Speaker 1: would argue that it's helped us accelerate and being more
Speaker 1: bold than we would have been otherwise. So um, and
Speaker 1: the innovation has been tremendous Across this past year. I've
Speaker 1: been weaving some of our audience questions into the general discussion,
Speaker 1: but I have one last one. I just want to
Speaker 1: quickly ask you guys, what do you think will be
Speaker 1: the next big disrupter and how can we prepare for that?
Speaker 1: Just quickly, Joeanne, what do you think will be the
Speaker 1: next big disruptor? Uh? You know, I think the continuation
Speaker 1: as Mitchell said, I'll echo that. I don't think we're done.
Speaker 1: I think we're in the first few steps of a
Speaker 1: technology disruption and a digital digital as an enabler, and
Speaker 1: I think we're in the early innings of that mark UM.
Speaker 1: You know, as we now believe that this UM, this
Speaker 1: coronavirus could be an endemic, uh, part part of our
Speaker 1: lives going forward. I think how we respond to future
Speaker 1: I think I think Richard was the one who said
Speaker 1: is a certainty of another pandemic in our lifetimes. I think,
Speaker 1: you know, how we collectively respond to these things going
Speaker 1: forward is going to be another, you know, unfortunately, another
Speaker 1: disruption in how we organize information, how we coordinate UM,
Speaker 1: and how we deploy UM, either vaccines in the future
Speaker 1: or other healthcare Mitchell, I'd say mindset, because all sorts
Speaker 1: of things will happen, whether it's a pandemic or you know,
Speaker 1: flooding me millions of people, you know, you know, with
Speaker 1: water levels rising, who knows, you know. So I would
Speaker 1: say I think the next big disruptor is really mindset,
Speaker 1: which is partly our relationship to technology, but partly our
Speaker 1: relationship to experience. Um, you know, is that consistent if
Speaker 1: you have these great experiences? Is it going to be
Speaker 1: periodic in life? As these things happen, Can we get
Speaker 1: back to us or or work our way to a
Speaker 1: new sort of sustainability not just for us and our
Speaker 1: people and teams, but planet wise and weatherwise as well.
Speaker 1: Rich final thought for you, what do you think is
Speaker 1: going to be the next big disruptor. I think it's
Speaker 1: going to be artificial intelligence. I think artificial intelligence is
Speaker 1: kind of you know what the Internet was a few
Speaker 1: decades ago, and you know, there's so many simple things,
Speaker 1: whether it's ordering a cab or food for takeout, Um,
Speaker 1: you can't see where they are. But I think AI
Speaker 1: is so big it's going to change our way of
Speaker 1: life in ways we can't see. That's my panel from
Speaker 1: the Bloomberg Live event disruption as a new economic driver,
Speaker 1: featuring Mitchell Baker of Mozilla, Joanne Crew Voice of Tapestry,
Speaker 1: Rich Gelfon of Imax Corporation, and Mark Hoplmasian from Hyatt Hotels.
Speaker 1: Of course, all CEOs at those companies. That entire conversation
Speaker 1: can be found online at Bloomberg Live dot com. That
Speaker 1: ups up the first hour of the weekend edition of
Speaker 1: Bloomberg Business Week from Bloomberg Radio. I'm Carol Masser and
Speaker 1: I'm Tim Stanovec. Ahead in our next hour, the co
Speaker 1: founder of jet dot Com Nate Faust on his new
Speaker 1: e commerce startup Olive with a sustainable focus. Kind of
Speaker 1: love what he's doing. Plus how a twenty three year
Speaker 1: old coder kept quing on online when no one else would.
Speaker 1: It is this week's cover story. Yeah, you do not
Speaker 1: want to miss it. This is Bloomberg. This is Bloomberg
Speaker 1: Business Week inside from the reporters and editors who bring
Speaker 1: you America's most trusted business magazine, plus global business finance
Speaker 1: and tech news as it happened. Sloomberg Business Week with
Speaker 1: Carol Messer and Bloomberg Quick Takes. Tim Stenovik on Bloomberg Radio. Hi,
Speaker 1: I'm Carol Masser and I'm Tim Stanovick. Plenty ahead in
Speaker 1: our second hour of the weekend edition of Bloomberg Business Week,
Speaker 1: including new data from we Work that shows executives employees
Speaker 1: to him pretty okay with hybrid work. Hybrid work something
Speaker 1: that we are going to continue talking a lot about.
Speaker 1: His companies are thinking more and more about getting people
Speaker 1: back to the office. Plus, the co founder of jet
Speaker 1: dot com has a new e commerce company looking to
Speaker 1: do away with shipping of boxes, all those boxes we've
Speaker 1: seen on the curbs. Guilty as charged me do. First
Speaker 1: up this hour, let's get to this week's cover story.
Speaker 1: It's about a twenty three year old programmer who is
Speaker 1: keeping American extremists online. His name Nick Lim, and he
Speaker 1: provides tech support to the u S networks of white
Speaker 1: nationalists and conspiracy theorists banned by the likes of Amazon.
Speaker 1: We got more from Bloomberg Business Week editor Joel Webber
Speaker 1: and one of the stories writers, Bloomberg News cybersecurity reporter
Speaker 1: William Turton. Mick Lim is the CEO and founder of
Speaker 1: Vonma Tech, which is a technology startup that's has quartered
Speaker 1: in Vancouver, Washington, and it provides a kind of a
Speaker 1: specialized set of web services that are key websites online. Now,
Speaker 1: you know the websites that we kind of mentioned here,
Speaker 1: Nick doesn't actually host them, but he provides an essential
Speaker 1: service keeps them online. So where Nick Limb fits into
Speaker 1: all of this is that he's basically a service provider
Speaker 1: of last resort. And and so William just talk us
Speaker 1: more about like how Nick lam became became that and
Speaker 1: why he why he feels that that's important. Yeah, I
Speaker 1: mean you're talking earlier. That's a story about technology and
Speaker 1: free speech, but it's also kind of a story about nihilist.
Speaker 1: Nick is someone who, you know, according to people I
Speaker 1: spoke to, is technically skilled. He is actually proficient in
Speaker 1: providing these services and has been doing it from a
Speaker 1: very young age actually. But you know, to him, I
Speaker 1: mean he kind of summed up his ideology to me
Speaker 1: as if it's legal in the US, I don't care, um.
Speaker 1: And you know, at one point he told me when
Speaker 1: he uh offered free services to Andrew England, who runs
Speaker 1: the white nationalist website Stormer, that raised his profile and
Speaker 1: made him famous. So you know, Nick would care professed
Speaker 1: to care about free speech and providing a platform to
Speaker 1: those who have been centered by a big tech Then
Speaker 1: he would also say, you know, as long as I sleep,
Speaker 1: I don't care. And who are some of his clients?
Speaker 1: So you know, the most important client of his and
Speaker 1: one that he has actually a very close relationship with
Speaker 1: his eight which is the home of q and on um.
Speaker 1: It's where q and on posted and and you know,
Speaker 1: the people who run that website are widely speculated to
Speaker 1: be q um and Nick even went to Japan with
Speaker 1: those people to celebrate the watch of the site. And
Speaker 1: Nick was integral to bringing this site back because cloud
Speaker 1: Flaer took the site offline after multiple Matt shooters had
Speaker 1: posted their manifestos on and they needed a replacement for
Speaker 1: cloud Flare. Enter Nick Limb. He's the one who kind
Speaker 1: of revived the site and is able to keep it
Speaker 1: online during you know, the peak of q and on
Speaker 1: and to this day. So you know what's interesting to William,
Speaker 1: I mean, there's so many aspects of this story that
Speaker 1: are fascinating eating and you just want to know more
Speaker 1: about this guy that's behind us this year old but
Speaker 1: at heart he's an entrepreneur, right who just it sounds
Speaker 1: like I wanted to start a business. But at the
Speaker 1: same time he's allowing these extremists who are getting kicked off.
Speaker 1: You know, the established programs are platforms to continue to
Speaker 1: kind of go about their business, right, But but I
Speaker 1: think with Nick that's kind of the whole point. I mean,
Speaker 1: he actively speaks out these clients. And you know, Nick
Speaker 1: tried to clean to us that he has actually thousands
Speaker 1: of clients and in reality has a small handful of clients,
Speaker 1: and and they are these kind of fringe right wing
Speaker 1: web site. So William, you you actually went to Washington, Vancouver, Washington,
Speaker 1: which is just outside my hometown of Portland, Oregon, in
Speaker 1: the fall, actually, so before all the events of January
Speaker 1: went down. Um, talk to us about what it was
Speaker 1: like to visit him. So you know, he actually, you know,
Speaker 1: he split this time between there and Nevada, where he lived,
Speaker 1: or Arizona rather where he lives in his Bond's condo.
Speaker 1: But but the Vonda Tech headquarters in Vancouver he rents
Speaker 1: out to some of his friends from high school. Um,
Speaker 1: you know, when I walked in, I looked on the table,
Speaker 1: I saw McDonald's, spot fries and and half joints everywhere
Speaker 1: in the backyard, there's weightlifting equipment, a shed full of
Speaker 1: servers that are mining cryptocurrencies, and like four bonds. Um.
Speaker 1: So you know they nicknamed the House of Dancer dam um.
Speaker 1: But but it is also the registered headquarters of this company.
Speaker 1: And um, you know, I was sort of surprised, you know,
Speaker 1: I wasn't expecting much, um, but I was still kind
Speaker 1: of surprised that just the assemblance to a college dorm room. Um,
Speaker 1: And especially because Nick had initially told me that actually,
Speaker 1: you know, he has offices and sometimes his employees go
Speaker 1: to it. Turns out wasn't it his grandparents house so too,
Speaker 1: that's right, according to state records. I look at the
Speaker 1: house with gifted fire by his grandparent. What was his
Speaker 1: upbringing like? Because he sort of has this image of
Speaker 1: or portrayed, You've conveyed this image of growing up without money.
Speaker 1: But he was also posting photos of driving around in
Speaker 1: exotic luxury cars. There's like a lot of contradictions here. Yes,
Speaker 1: I mean it's completely you know, Nick in our first
Speaker 1: interview told me that his kind of early entrepreneur spirit
Speaker 1: came out of a necessity to support his family. I
Speaker 1: tried to talk to his family. I tried to talk
Speaker 1: to his parents, some of his siblings. None of them
Speaker 1: got back to me. But you know, when I found
Speaker 1: Limb's old YouTube channel, I found you know, him driving
Speaker 1: around in his dad's white Lamborghini. Um So it wasn't
Speaker 1: exactly a story of of as he told me, you know,
Speaker 1: treating these businesses in order to quote put food on
Speaker 1: the table. Like I said, Carol, it's a story about business,
Speaker 1: it's a story about free speech. It's a story about
Speaker 1: technology totally. And the story about a really young guy
Speaker 1: who saw an opportunity man just the way that William
Speaker 1: and Josh who was the co writer on that story,
Speaker 1: kind of took us to him and what they saw.
Speaker 1: The visuals on it were just magical. Yeah, check that
Speaker 1: one out online because there are, like Carol said, some
Speaker 1: really magical visuals in that one. Bloomberg News cybersecurity reporter
Speaker 1: William Turton and Bloomberg Business Week editor Joel Weber, you're
Speaker 1: listening to Bloomberg Business Week coming out Believe it or not,
Speaker 1: Many executives, Yeah, they're okay with you working from home
Speaker 1: a couple of days a week. Really really, that's at
Speaker 1: least according to a survey by we work. Yes, that's true.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week with Carol
Speaker 1: Messer and Bloomberg Quick Takes. Tim Stinovik from Bloomberg Radio.
Speaker 1: We'll safe to say one of the most talked about
Speaker 1: topics to him as we move beyond the pandemic is
Speaker 1: how we work hybrid working from home, what happens to
Speaker 1: business travel. How much of what we had and we're
Speaker 1: doing during the pandemic ultimately stays with us. How many
Speaker 1: times do you talk about I was going to ask you,
Speaker 1: is it just me or is this like the topic
Speaker 1: that that executives are talking about right now publicly internally
Speaker 1: as well in company culture. Yeah, totally, And I feel
Speaker 1: like what a lot of executives maybe we're saying months ago.
Speaker 1: It's kind of change. It is shifting, as even though
Speaker 1: the labor market isn't necessarily tight in the traditional definition,
Speaker 1: they want to attract the best talent, and one way
Speaker 1: to do that is to be flexible with working exactly.
Speaker 1: I think workers are going to demand it. Looking into
Speaker 1: that we work, which is that with a new blind
Speaker 1: survey of US companies and C level executives for an
Speaker 1: insight into the data, they found. We caught up with
Speaker 1: Sean get them All, President and CEO at we Work.
Speaker 1: What was fascinating is you saw that employees want to
Speaker 1: have some control over the mix they have of coming
Speaker 1: into a headquarters office working from home, we're going into
Speaker 1: a satellite office or remote office of some kind, and
Speaker 1: that match C suite executives said the same thing, that
Speaker 1: they're willing to give that degree of control really part
Speaker 1: of it. Yeah, that's I find that interesting because there
Speaker 1: were some other research that we've been talking about over
Speaker 1: the last couple of weeks where you know, there's some
Speaker 1: disconnect between kind of what employees or or what companies
Speaker 1: think how well this working from home is going versus
Speaker 1: employees who want the flexibility but they also want that
Speaker 1: face time. I think that's absolutely right. But there's a
Speaker 1: lot of common ground as well, and a lot of
Speaker 1: it depends on the nature of the job, the nature
Speaker 1: of the company, what kind of culture they have, and
Speaker 1: how they deliver the value to the to the end user.
Speaker 1: One thing that you have a lot of commonality around
Speaker 1: is you're starting to build the consensus in many environments
Speaker 1: where you'd look at it sort of as a one
Speaker 1: third one third one third kind of model where you're
Speaker 1: hearing a lot of people say, what we'd like to
Speaker 1: have is one third in the headquarters office. What I'd
Speaker 1: like to have is one third or something like that
Speaker 1: working from home, And what I'd like to have is
Speaker 1: about a third where I'm working from a satellite office
Speaker 1: or a disparate office. And in fact, two thirds of
Speaker 1: employees are saying that's what they'd like, which is to
Speaker 1: spend a good amount of their time moving between multiple occasions.
Speaker 1: And you have se C suite. They're just saying, absolutely,
Speaker 1: we'd be very happy with our employees operating in some
Speaker 1: form of a hybrid model, depending on what's appropriate for
Speaker 1: my particular kind of environment. Well, I want to just
Speaker 1: say to kind of add on to this um anecdotal evidence,
Speaker 1: but not really, it's actual evidence. One of our market
Speaker 1: watchers came on early in and said, we shut our
Speaker 1: offices in New York City, moved out to Connecticut, and
Speaker 1: then decided that when we need space, we'll just rent it,
Speaker 1: you know, whether it's we work or something else. You know,
Speaker 1: when we need our employees to get together. Are you
Speaker 1: seeing this translate into you know, future business, Are you
Speaker 1: seeing numbers to hire a people who want to tap
Speaker 1: into we work offices because they just need it temporarily
Speaker 1: to bring their teams together who have been working from
Speaker 1: home and who are maybe expected to continue to work
Speaker 1: that way. Interesting is that part of its temporary and
Speaker 1: part of it is it's a permanent flexibility. And I
Speaker 1: think that's the part that actually is going to be
Speaker 1: even more interesting. So you have some people that right
Speaker 1: now large companies are turning around and saying, Okay, we
Speaker 1: made to bring our people back because we believe that
Speaker 1: productivity will be higher if we move away from a
Speaker 1: complete work from home environment and bring our people together
Speaker 1: how them collaborate and be able to work together in
Speaker 1: a more traditional kind of environment for at least part
Speaker 1: of their day. So, you know, it's interesting too because
Speaker 1: one of the findings is that the majority three quarters
Speaker 1: of the C suite sent saying that they're likely to
Speaker 1: give their employees a stipend to work from home or
Speaker 1: a coworking space. I mean, when it comes down to it,
Speaker 1: for a company, if they don't have to house as
Speaker 1: many employees, I mean, that's a big line item on
Speaker 1: the balance sheet. That's they got line item on the
Speaker 1: balance sheet. Agree the other thing that people are really
Speaker 1: interested in is engagement, loyalty, and being able to build
Speaker 1: that that culture. And one of the things I found
Speaker 1: most striking is when we looked at what the mix
Speaker 1: was and asked employees, how engaged are you and how
Speaker 1: how highly do you recommend your company? The ones that
Speaker 1: were more engaged and the ones that were less engaged
Speaker 1: tended to want to be in the headquarters about the same,
Speaker 1: so that was a little surprising, but both of them
Speaker 1: wanted to be a headquarters about a third of their time.
Speaker 1: What was interesting is that people who were more engaged
Speaker 1: wanted to be homeless and preferred to be in either
Speaker 1: in a coworking space or in some sort of satellite office,
Speaker 1: versus the people were less engaged who tended to want
Speaker 1: to be home. So it's interesting is the ones that
Speaker 1: want that are actually engaged tend to want to be
Speaker 1: in headquarters and in a satellite office or coworking environment
Speaker 1: at home less and the ones who want to be
Speaker 1: home more tend to be the ones that are less engaged.
Speaker 1: So let me ask you something, because I'm just thinking
Speaker 1: folks are going to be like, well, yeah, of course
Speaker 1: we work. Is going to be saying you know, showing
Speaker 1: a survey where people you know, will rent space to
Speaker 1: get together and that they'll want the flexibility. Because this
Speaker 1: is certainly your book. So what would you say to
Speaker 1: something like somebody like that, although, you know, to be fair,
Speaker 1: we've been seeing kind of this trend happen over the
Speaker 1: last decade, this flexibility in the working environment. But what
Speaker 1: would you say to somebody's like, well, of course you
Speaker 1: guys are going to be, you know, talking about something
Speaker 1: like this. It's something that we're very interested in that
Speaker 1: we're talking about before the break. We obviously have this
Speaker 1: big foot that we've been able to see what's happened
Speaker 1: in China, we've been able to see what's happened in
Speaker 1: the Far East, what's happening in Europe, and what's happening
Speaker 1: in the US, what's happening in Latin America, and how
Speaker 1: disapplaying itself out. And what we're seeing across the board
Speaker 1: is that people want to have their right balance. So
Speaker 1: from our perspective as a business, if somebody wants to
Speaker 1: lease a headquarters from us, will least in the headquarters.
Speaker 1: If they want to have flexible space, will lease the
Speaker 1: flexible space. So work from home or work from not
Speaker 1: in headquarters is to our interest. So all of those
Speaker 1: play out in the same way, and that's been sort
Speaker 1: of the macro trend that the company has been built up.
Speaker 1: So this particular thing, I think is more informative about
Speaker 1: what we're actually seeing. It's very consistent of what we're
Speaker 1: seeing of the marketplace, and and what you're going to
Speaker 1: see is that people are increasingly interested in how do
Speaker 1: I retain my people, how do I do it in
Speaker 1: a way that's consistent with the value that I need
Speaker 1: to deliver to my end you, sir? And how does
Speaker 1: that different bike department and create much more a custom
Speaker 1: model than everybody comes in nine to five every day
Speaker 1: into headquarters. And that's what we're seeing. And this is
Speaker 1: just sort of a a more refined view so that
Speaker 1: other people can see what we're seeing in ourselves. I
Speaker 1: think that's really important that you, like a lot of
Speaker 1: other global CEOs that I've been talking to, said, you know, listen,
Speaker 1: we saw the virus in the impact early because we
Speaker 1: were over in Asia. We've also seen the recovery earlier
Speaker 1: because we are in Asia. But what you're seeing in
Speaker 1: China is showing that people want this flexibility and they
Speaker 1: want to do it differently. Well, that's what we've started
Speaker 1: to see, right, So in China we've got of the
Speaker 1: people back in Asia, if we've probably got seventy percent
Speaker 1: of people back in general. In Europe we're probably seeing
Speaker 1: something that operates a little bit more like fifty and
Speaker 1: in the US it's in the high thirties that we're
Speaker 1: back to kind of normal and and you're starting to
Speaker 1: see things like we have a set of offerings where
Speaker 1: people can go into any building, and that's what we're
Speaker 1: seeing a lot of pick up on as well. So
Speaker 1: people who say I want to be able to choose
Speaker 1: where I go at any moment in time. So I
Speaker 1: think this is something we've been building to. Technologies played
Speaker 1: a tough out and now we're starting to see it
Speaker 1: come to ahead. That's we work President Sean get them all.
Speaker 1: He had lots of statistics to share about working from
Speaker 1: home and how employees see it and senior level exects.
Speaker 1: So definitely check out that complete interview. You can find
Speaker 1: that at Bloomberg dot com. Still to come now on
Speaker 1: Bloomberg Business Week, we take a look inside gender equity
Speaker 1: in the beauty industry not so pretty. This is Bloomberg
Speaker 1: Broadcasting from the financial capital of the world Bloomberg eleven
Speaker 1: Frio in New York to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: sixty to the country Sirius XM CHADO one nineteen and
Speaker 1: around the globe the Bloomberg Business apt and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Business Week. This past year,
Speaker 1: we have had many conversations about inequities. Will a company
Speaker 1: is out with an inside look at gender equity in
Speaker 1: professional beauty Here to share what they found and talk
Speaker 1: about our industry, which was shut down by the pandemic.
Speaker 1: Is well a company CEO and a young scriptner. You know,
Speaker 1: we conducted this report to really better understand the state
Speaker 1: of the professional services industry and in beauty. You are right,
Speaker 1: eighty nine per cent of people in this industry are female.
Speaker 1: The reality is, as we've found out, majority of the
Speaker 1: decision making are still held by men. How is that possible?
Speaker 1: Can I ask you? I'm just like sitting here thinking
Speaker 1: how is that possible? I think that as you look
Speaker 1: at a lot of the you know, the bigger company
Speaker 1: beauty company is I look at my peer group, A
Speaker 1: lot of them are still men. It's to um not
Speaker 1: be at Cody and myself that are women. A lot
Speaker 1: of them are ran by men today. And I think
Speaker 1: one of the ways that we could address that is
Speaker 1: by making sure every opening a repromotion. We have an
Speaker 1: equal slate, right, a slate that's diverse, people of color, gender,
Speaker 1: and we always want to make sure it's the bust candidate.
Speaker 1: But if we start with that lens right, people will bomp,
Speaker 1: people bubble up. You've been in this industry, you've been
Speaker 1: in the consumer product industry for many years. What is
Speaker 1: it that still continues to hold women back? I think that,
Speaker 1: you know, making sure that we have the right slating
Speaker 1: and to make sure that we have um development programs
Speaker 1: where we're pulling people women and also people of color
Speaker 1: forward is going to be really critical. When you're diverse,
Speaker 1: is gender wise or ethnicity. You never want to get
Speaker 1: the job because of your color or your gender. You
Speaker 1: want to make sure that you're the bust. I think
Speaker 1: that is a big role. I think the second piece
Speaker 1: for women is, particularly during the pandemic, you saw women
Speaker 1: fall back, and it's because when kids are not in school.
Speaker 1: There at home, we're still a majority as a caretaker.
Speaker 1: So making sure that we have the flexibility in organization
Speaker 1: is not only going to help women, it's also going
Speaker 1: to help men. So I think those are really critical.
Speaker 1: The last thing I would say is education, making sure
Speaker 1: that every organization continues to invest in education, whether it's
Speaker 1: leadership development classes. For our industry, we have really looked
Speaker 1: at education um critically and to ensure that during the
Speaker 1: pandemic we were also making sure that we were giving
Speaker 1: lessons to our clients, to our partners so that they
Speaker 1: could elevate their skill set. I think those would be
Speaker 1: really key. One thing I want to ask you, and
Speaker 1: this is as a conversation I'm increasingly having as we
Speaker 1: talk about the importance of DNA diversity and inclusion, and
Speaker 1: yet I will have I recently had someone on who
Speaker 1: was creating a spack and it was all women, and
Speaker 1: A said, well, wait a minute. We've shown that diversity
Speaker 1: is what really propels the top and bottom line. That's
Speaker 1: where you get the most, you know, out of a
Speaker 1: company where you have mixture of thought, men and women,
Speaker 1: people from all different kinds of backgrounds. How do you
Speaker 1: approach that at your company, I know in this research
Speaker 1: that you say in just the three months since the
Speaker 1: company was formed on December, your new hires have been women.
Speaker 1: I applaud you, but I do wonder how do you
Speaker 1: balance the importance of making sure women are hired and
Speaker 1: seen um and given opportunities to advance, but also making
Speaker 1: sure you balance it with diversity of thought among your
Speaker 1: employee base. It's a great question. I always start with
Speaker 1: the consumer. I think that any company that is consumers
Speaker 1: sound trick will win because you'll understand um their needs
Speaker 1: and you'll create a right innovation and services. And the
Speaker 1: reality is of purchasing power is still held by women.
Speaker 1: We are in an end tree that we serve mostly women.
Speaker 1: Men are also important. And at the end of the day,
Speaker 1: what you want is you you want that diversity and
Speaker 1: you want people to think differently so that you don't
Speaker 1: have the same blind spot. And for us, what we
Speaker 1: look at is a very diverse slate. And then the
Speaker 1: best candidate. You have to choose the best candidate. You
Speaker 1: can't say I'm going to pick that person because there
Speaker 1: are a woman. Yeah. Being aware of our blind spots
Speaker 1: that is so important going forward. That's any Young Scrivener,
Speaker 1: the CEO of Well a company. You're listening to Bloomberg
Speaker 1: Business Week and coming up, we're talking about something that's
Speaker 1: pretty close to me because I have an Amazon problem.
Speaker 1: We order a lot from Amazon, we do, and I
Speaker 1: try to separate it, like I try to. We try
Speaker 1: to put stuff in our cart so we order like
Speaker 1: one big order a week, but it doesn't end up
Speaker 1: happening oftentimes. And I feel a lot of guilt getting
Speaker 1: all of these boxes, opening them up and seeing that
Speaker 1: there's only like a couple of things in them, and
Speaker 1: then carrying them from my apartment to the recycling like
Speaker 1: a lot about the environmental impact of it. We feel
Speaker 1: the same thing, like we'll put out our garbage on
Speaker 1: garbage tonight and then we put all the recycling. We're like,
Speaker 1: oh my god, those are all the boxes from our family.
Speaker 1: We saw a lot of it really over the last
Speaker 1: year's We would kind of walk around the neighborhood because
Speaker 1: everybody was ordering online, lots of boxes on the curb.
Speaker 1: Well one executive seeing a business opportunity here, former jet
Speaker 1: dot com founder Nate Faust is looking to consolidate your boxes.
Speaker 1: This is Bloomberg. You're listening to Bloomberg Business Week with
Speaker 1: Carol Messer and Bloomberg Quick Takes. Tim Stinovich from Bloomberg Radio.
Speaker 1: Our next guest gets e commerce big time. He's a
Speaker 1: co found of Jet dot com, which was then sold
Speaker 1: to Walmart for three point three billion dollars. That was
Speaker 1: back in Bloomberg Business Week magazine. They had been all
Speaker 1: over this company. Yeah, I still remember that cover. I
Speaker 1: wasn't even working here at the time, but that was
Speaker 1: the first time I ever heard of Jet dot com
Speaker 1: when I saw it on the cover of Bloomberg Business Week,
Speaker 1: and was an incredible e commerce store. I mean, the
Speaker 1: company so young and sold for such a huge sum,
Speaker 1: and it was a big deal for Walmart. It really
Speaker 1: kind of moved them very quickly and aggressively into online
Speaker 1: when they had kind of been behind well. Earlier this year,
Speaker 1: Nate Faust, one of the co founders of Jet dot Com,
Speaker 1: debut a delivery service called Olive that consolidates orders from
Speaker 1: fashion labels including Michael Core's, Adida, Sax and more. For
Speaker 1: how it works and how it's going, we spoke with
Speaker 1: Olive founder Nate Fast. We started Olive a little over
Speaker 1: a year ago. In fact, actually just about a year
Speaker 1: ago coming up, and when we initially started exploring it,
Speaker 1: it wasn't triggered by the triggered by the pandemic. It
Speaker 1: was triggered by just a broader desire to do something
Speaker 1: with a social environmental impact for my next adventure. And
Speaker 1: with COVID and the increase in how much people are
Speaker 1: shopping online and the number of deliveries that people are experiencing,
Speaker 1: I think the pain points and obvious environmental impact of
Speaker 1: just the sheer amount of deliveries that we're getting, and
Speaker 1: not just in the packaging, but just the sheer number
Speaker 1: of delivery trucks that are stopping at each of our
Speaker 1: each of our houses. Which I'll say that's probably been
Speaker 1: the most eye opening thing over the last year, looking
Speaker 1: out my front window and every single day seeing two, three, four,
Speaker 1: sometimes more delivery trucks stop at my home. Yeah, listen.
Speaker 1: I think about it when we're ordering Amazon and it's like,
Speaker 1: how are you about kind of putting this all into
Speaker 1: one order? And I'm like, yes, I can wait a
Speaker 1: couple of days to get something. Tell me, though, how
Speaker 1: olive works, Nate. Sure, So you sign up, download our
Speaker 1: app or on our site at shop Olive dot com.
Speaker 1: It's a free service to consumers. When you sign up,
Speaker 1: we create for you what we call your Olive address,
Speaker 1: and that's sort of your personal storage space at one
Speaker 1: of our consolidation centers, which we two of them, one
Speaker 1: on the East Coast, one on the one on the
Speaker 1: West Coast. And then when you shop with with Olive
Speaker 1: at any of the hundred or so retailers that we
Speaker 1: have affiliate relationships with, when you're going through the checkout process,
Speaker 1: either on desktop with the help of our Chrome extension
Speaker 1: or on an iPhone through our our app, we help
Speaker 1: you insert that Olive address at checkout, and then the
Speaker 1: retailers pickpack, and ship those orders like they normally would.
Speaker 1: They shipped to our consolidation centers. We hold on to
Speaker 1: them for a couple of days until it's time for
Speaker 1: what we call your Olive Day, which is the one
Speaker 1: day or in the case of New York City, have
Speaker 1: two days per week that all of your orders come together,
Speaker 1: delivered in one single, reusable, secure, two way, two way
Speaker 1: shipper and you're just one thing to call out there.
Speaker 1: You're very transparently at this initial outset. We're not eliminating
Speaker 1: the box from the source. The restlers are still picking
Speaker 1: and packing into the boxes shipping them to us, But
Speaker 1: we are getting what, in the long run is actually
Speaker 1: the bigger environmental impact, which is the consolidation of multiple
Speaker 1: deliveries into a single delivery, which we're getting about what
Speaker 1: we call our sort of consolidation factor, about consolidation factor
Speaker 1: in terms of delivering more to a consumer store step
Speaker 1: than would have previously been um delivered in the in
Speaker 1: the status quo. You know, I like to understand the impact,
Speaker 1: especially since you're concerned about the environment sustainability that by
Speaker 1: using your service, How do we cut down on our
Speaker 1: carbon footprint by all of the you know, e commerce
Speaker 1: that we're doing and all the delivery that goes along
Speaker 1: with that. Yeah, no, absolutely so. When you look at
Speaker 1: the carbon footprint of a sort of post purchase e
Speaker 1: commerce supply chain, which is the piece that we're focused on,
Speaker 1: you know, the biggest chunk of that, somewhere in the
Speaker 1: range comes from that sort of proverbial last mile of
Speaker 1: the truck stopping at consumers homes, and the remaining half,
Speaker 1: you know, sort of is split roughly evenly between packaging
Speaker 1: and then what's called sort of the first and middle
Speaker 1: mile of getting that thing from the fulfillment center or
Speaker 1: store that it's coming from to the to the point
Speaker 1: of the final last mile delivery. And what we're tackling
Speaker 1: initially through this this concept of consolidation is that largest chunk,
Speaker 1: which is the which is the last mile delivery. Now,
Speaker 1: I know, as you pointed out, obviously those things are
Speaker 1: being delivered to us, but they're being deliver ver in bulk.
Speaker 1: So we get one delivery per day from each of
Speaker 1: FedEx and UPS and other potential carriers at each of
Speaker 1: our facilities with all of the all of the various orders,
Speaker 1: and then when we deliver them two consumers, we're getting
Speaker 1: on average about one point to five shipments into every
Speaker 1: delivery that that we make, So that would be you know,
Speaker 1: roughly a reduction on that sort of last mile for
Speaker 1: those packages to that consumers home. But obviously two pieces there.
Speaker 1: One it's it's apparel only for right now, and so
Speaker 1: there's lots of things that you can't purchase through affiliated
Speaker 1: retailers through with with Olive, and that will enable a
Speaker 1: much greater impact in in the long term as we're
Speaker 1: able to service broader sets of categories. And then two
Speaker 1: as I mentioned before, we're not eliminating the packaging from
Speaker 1: the source, but we're actually in the midst right now
Speaker 1: of working with our very first retailer to actually integrate
Speaker 1: directly with their supply chain where we would provide the
Speaker 1: packaging in their fulfillment centers so that they pick and
Speaker 1: pack their orders into that from the from the source.
Speaker 1: And that will be the goal over time two as
Speaker 1: volume supports it with each of the retailers on the
Speaker 1: platform to do that more direct integration to eliminate the packaging,
Speaker 1: right so, in other words, to help them to kind
Speaker 1: of be better when it comes to their environmental impact,
Speaker 1: because I'm right, is that fair? Totally? Yeah? Impact. I'm
Speaker 1: from a customer experience perspective, because there's other benefits that
Speaker 1: come from the olive delivery experience, especially from the consumer
Speaker 1: side of things. Not only do they not have to
Speaker 1: deal with the hassle of managing the waste from the
Speaker 1: delivery if they have any returns, they just put it
Speaker 1: straight back in the packaging, leave it on their doorstep,
Speaker 1: and we pick it up. That's really interesting. Well, and
Speaker 1: you know, part of your value is also going to
Speaker 1: be in or at least part of your attraction I
Speaker 1: guess I should say, is the retailers on your site.
Speaker 1: And there's a bunch that are certainly you know in
Speaker 1: my wheelhouse, rag and bone, there's aloe. Uh, there's a
Speaker 1: lot of them, uh anthropology. So you're definitely catching my
Speaker 1: attention here. Um, how quickly are you signing up a
Speaker 1: lot more retailers? How easy is that to do? Sure?
Speaker 1: So we've we've had a ton of outreach following our launch. Uh,
Speaker 1: you know, around six weeks ago or so is our
Speaker 1: sort of unveiling of the service to the to the public.
Speaker 1: So we have a sort of backlog of of of
Speaker 1: retailers that we've signed up as theiot partners. That's probably
Speaker 1: more than what's already on the site from the from
Speaker 1: the retailer side of things. We make it very low effort,
Speaker 1: so it's easy to come on to the come onto
Speaker 1: the platform, but there is some configuration on our side
Speaker 1: to make sure that that whole all of address things
Speaker 1: that we were talking about before, that that assisted entry
Speaker 1: process for for customers is working smoothly before we turned
Speaker 1: them live on the platform. That's an eighth Fallast, the
Speaker 1: founder of olives in the magazine this week. Another edition
Speaker 1: of Bloomberg Business Week Talks featuring an interview with Arnold Donald,
Speaker 1: the CEO of Carnival Cruise. We talked about the industry
Speaker 1: as a whole and when he expects ships to get
Speaker 1: back into US ports. We have nine brands Carrells, so
Speaker 1: about fifty nine of our nineties ships are not under
Speaker 1: the conditional sale or that they don't you know, sail
Speaker 1: in the US anyway, And so there we are already
Speaker 1: active and sailing, and we've announced sailings and in the
Speaker 1: UK we have announce sailing SA in Greece aid to
Speaker 1: our German brands already sailing for the Canary Islands, all
Speaker 1: on a limited basis at this point, but it's moving
Speaker 1: in the right direction. And UM, we're optimistic that we'll
Speaker 1: be able to do the same here and continue dialogue
Speaker 1: in the CDC. I think where the big issues here is,
Speaker 1: um the relative mentality around risk. So today you could
Speaker 1: border plane, fly to a country, get on a cruise
Speaker 1: ship and sale fly back from that country and come
Speaker 1: back to the United States. You have to do certain
Speaker 1: testing exerta, but you can do that. And today, even
Speaker 1: if vaccinated, you can't get on a cruise ship in
Speaker 1: the US, and that's whether you've vaccinated or not in
Speaker 1: terms of what you could do from the US going
Speaker 1: somewhere else to get on a cruise ship. So if
Speaker 1: you look out of the travel and entertainment sectors you
Speaker 1: talked about spring breakdown in Miami, um or you look
Speaker 1: at arenas where people are starting to be able to
Speaker 1: attend sporting events, restaurants, hotels, resourts, air travel. Uh. You know,
Speaker 1: there's a level of risk management and mitigation, and so
Speaker 1: we would like to just be treated similarly to the
Speaker 1: rest of the travel on tourism sector. That's Carnival CEO
Speaker 1: Arnold Donald. Check out more of the interview. It's in
Speaker 1: the magazine, it's online on newsstands and of course on
Speaker 1: the Bloomberg terminal, and also on our podcast Speed and
Speaker 1: That reps up the weekend edition of Bloomberg Business Week
Speaker 1: from Bloomberg Radio. Thanks so much for joining us. I'm
Speaker 1: Carol Masser and I'm Tim Stanibek. Be sure to tune
Speaker 1: into our Bloomberg Business Week daily show. It's Monday through Friday.
Speaker 1: It starts at two pm Wall Street Time on Bloomberg Radio.
Speaker 1: You can also watch our daily broadcast on YouTube. Just
Speaker 1: search Bloomberg Global News. Also check out our Bloomberg Business
Speaker 1: Week podcast. You can find it at Bloomberg dot com, Apple,
Speaker 1: or wherever you get your podcast. That's we will find
Speaker 1: the full interviews from many of our guests in the
Speaker 1: weekend show Bloomberg Business Week. It's available on newsstands now,
Speaker 1: at Bloomberg dot com and on the Bloomberg Terminal, and
Speaker 1: you can also see me on Bloomberg Quicktake. It's available
Speaker 1: at Bloomberg dot com, slash Qt, and streaming platforms like Roku,
Speaker 1: Apple TV, Samsung TV and more. Have a good weekend.
Speaker 1: This is Bloomberg