WEBVTT - Bloomberg Businessweek Weekend - November 11th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.559 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news. As it happened, Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes. Tim 0:00:16.800 --> 0:00:21.240 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.360 --> 0:00:24.520 edition of Bloomberg Business Week. Tim Stanovic is off. It 0:00:24.680 --> 0:00:27.840 was a week full of tech layoffs, a cooling inflation print, 0:00:27.960 --> 0:00:31.280 and another crypto crunch or crisis, which is why you 0:00:31.280 --> 0:00:33.640 should probably go back and read if you haven't already. 0:00:33.880 --> 0:00:37.000 The recent issue of Bloomberg Business Week devoted entirely to 0:00:37.120 --> 0:00:40.800 crypto by our own Matt Levine. Chess that I'd mentioned it, 0:00:41.240 --> 0:00:43.159 And of course this week, how could we forget on 0:00:43.200 --> 0:00:46.080 our minds big time the midtermal elections. Well more on 0:00:46.159 --> 0:00:48.720 that in just a moment. Also ahead, we'll hear from 0:00:48.720 --> 0:00:51.640 the CEO of Sony Pictures, the president of Mars Wriggley 0:00:51.640 --> 0:00:55.640 North America, and we'll explore hospitality options for the higher 0:00:55.800 --> 0:00:58.920 end traveler. Will do that with the CFO of Mentouse. 0:00:59.360 --> 0:01:01.560 All of that to come, but we begin with our 0:01:01.600 --> 0:01:04.720 cover story, the political races in the US this past 0:01:04.760 --> 0:01:08.440 week the mid terms, which included also governors races, but 0:01:08.520 --> 0:01:11.000 bottom line, it was really about the balance of power 0:01:11.040 --> 0:01:15.120 among congressional lawmakers. Writing about that and specifically the U 0:01:15.160 --> 0:01:18.839 s House of Representatives, Bloomberg Business Week national correspondent Josh 0:01:18.840 --> 0:01:21.800 Green He joined me and Bloomberg Radio is Paul Sweeney 0:01:21.880 --> 0:01:26.120 for a breakdown. Well, McCarthy is a longtime Republican House 0:01:26.200 --> 0:01:28.800 leader who has wanted to be Speaker of the House 0:01:29.160 --> 0:01:32.000 for years and years and years. Um was expected to 0:01:32.040 --> 0:01:35.520 be in and was sort of forced to remove himself 0:01:35.520 --> 0:01:37.880 from the race in favor of Paul Ryan before he 0:01:37.920 --> 0:01:39.560 could get in there, because he just didn't have the 0:01:39.600 --> 0:01:41.480 trust to the right wing of this caucus. Over the 0:01:41.520 --> 0:01:45.479 last seven years, he's plotted, he's raised money, he's campaigned, uh, 0:01:45.480 --> 0:01:47.200 and it seemed like on election night he was on 0:01:47.240 --> 0:01:50.120 the cost of taking over the speakership. But then, of 0:01:50.160 --> 0:01:52.880 course the red wave turned out not to be much 0:01:52.920 --> 0:01:56.240 of a wave. After all, it still looks like Republicans 0:01:56.280 --> 0:01:57.680 and win the House, but it's gonna be a very 0:01:57.800 --> 0:02:01.280 very narrow majority. And so it's it's the dream from 0:02:01.320 --> 0:02:04.160 McCarthy in the sense that he'll finally realize the speakership. 0:02:04.640 --> 0:02:07.200 But it's a nightmare because it means that the right 0:02:07.200 --> 0:02:09.520 wing of his caucus are really going to have a 0:02:09.560 --> 0:02:11.320 lot of leverage over him, and I think that's a 0:02:11.400 --> 0:02:15.960 recipe for chaos. Great quoting here from Senator Green quote 0:02:16.120 --> 0:02:17.880 she made this to The New York Times. I think 0:02:17.919 --> 0:02:19.840 that to be the best Speaker of the House and 0:02:19.919 --> 0:02:22.760 to please the base, he's going to give me a 0:02:22.880 --> 0:02:26.040 lot of power and a lot of leeway. So that's 0:02:26.040 --> 0:02:29.440 some pressure on the next Speaker of the House, whoever 0:02:29.480 --> 0:02:32.040 that is, to really do cater to some of the 0:02:32.120 --> 0:02:35.600 right wing elements of the Republican Party. Is McCarthy willing 0:02:35.639 --> 0:02:38.320 able to do that? Well, I think he's in a 0:02:38.360 --> 0:02:39.960 position where he's not going to have much of a 0:02:40.040 --> 0:02:42.920 choice um. In order to elected speaker, he needs two 0:02:42.960 --> 0:02:44.880 hundred and eighteen votes, and if you've got you know, 0:02:44.919 --> 0:02:46.560 had there been a big wave and they were you know, 0:02:46.639 --> 0:02:49.480 let's say, you know, two hundred fifty two and sixty Republicans, 0:02:49.720 --> 0:02:52.160 I think he might have been able to marginalize people 0:02:52.320 --> 0:02:55.880 like Representative Green. She's retweeted a lot of q and 0:02:55.919 --> 0:02:59.120 on conspiracy theories, and she was stripped in this current 0:02:59.160 --> 0:03:03.160 Congress of her committee assignments for having endorsed social media 0:03:03.240 --> 0:03:07.280 posts calling on Democratic officials to be assassinated. So we're 0:03:07.280 --> 0:03:10.800 talking way way off the deep end, extreme right. And 0:03:10.880 --> 0:03:12.800 yet you hear from the quote you just read that 0:03:13.000 --> 0:03:15.679 she expects and is getting a lot of catering to 0:03:15.800 --> 0:03:19.359 by McCarthy simply because he needs her vote in order 0:03:19.440 --> 0:03:23.360 to assemble those two eighteen votes. The smaller the Republican 0:03:23.400 --> 0:03:27.000 margin is, the more leverage people like Green and the 0:03:27.000 --> 0:03:30.000 House Freedom Caucus are going to have. Josh, it feels 0:03:30.000 --> 0:03:32.799 like the Republicans over the last five years, ten years, 0:03:32.919 --> 0:03:34.840 I guess, you know, have been smart when they're all 0:03:34.920 --> 0:03:37.760 kind of on a singular mission and whether it's Supreme 0:03:37.760 --> 0:03:42.360 Court justices and you know, different initiatives that are out there, 0:03:42.440 --> 0:03:46.040 abortion and so on and so forth. Um, what is though, 0:03:46.080 --> 0:03:48.840 the Republican mission at this point? What is the agenda? 0:03:48.840 --> 0:03:51.280 Because you kind of you right that that's a problem 0:03:51.280 --> 0:03:54.240 for McCarthy because they don't really have an agenda. Yeah, 0:03:54.280 --> 0:03:56.000 you know it is. I mean one of the difficulties 0:03:56.040 --> 0:03:58.400 when you have a kind of chaotic Republican party like 0:03:58.400 --> 0:04:00.880 like McCarthy does, it's hard to get people degree of 0:04:00.880 --> 0:04:03.440 an establishment wing that wants you to government responsibly, you 0:04:03.480 --> 0:04:05.760 have a radical ring that wants to impeach Joe Biden. 0:04:06.120 --> 0:04:09.120 And so Republicans this election really didn't agree on a 0:04:09.160 --> 0:04:12.440 clear set of legislative goals the way that let's say 0:04:12.520 --> 0:04:16.400 New Gingrich did in the Contract with America. UM. That 0:04:16.480 --> 0:04:19.520 was in order to focus attention on on Biden and 0:04:19.600 --> 0:04:22.520 the problems with inflation and crime. Uh. And it you know, 0:04:22.560 --> 0:04:24.920 it looks like that's worked to a very narrow extent 0:04:24.960 --> 0:04:26.800 of Republicans do wind up winning the House. But the 0:04:26.839 --> 0:04:29.279 problem is it leaves a vacuum for anybody to rush 0:04:29.279 --> 0:04:31.479 in uh and push their issue. And so one of 0:04:31.480 --> 0:04:34.120 the things that we're gonna be contending when the Republicans 0:04:34.160 --> 0:04:36.160 are gonna be contending with, is there's an element that 0:04:36.240 --> 0:04:40.080 wants to engineer another debt ceiling showdown on order cut 0:04:40.120 --> 0:04:42.559 Medicare and Social Security. I'm sure you guys remember eleven 0:04:42.640 --> 0:04:45.640 years ago, after Republicans won the House tried to do 0:04:45.680 --> 0:04:47.680 that same thing. We came to the brink of default 0:04:48.000 --> 0:04:50.760 and US government credit wind up being written down. So 0:04:51.200 --> 0:04:54.719 a lot of concern among both Republicans and Democrats are 0:04:54.640 --> 0:04:59.080 at least the more responsible ones about what exactly McCarthy 0:04:59.240 --> 0:05:01.320 led the House would look like, what they'd be able 0:05:01.360 --> 0:05:03.919 to engineer, and what kind of problems that might cost 0:05:03.920 --> 0:05:06.080 with the global economy. You point out in your piece 0:05:06.120 --> 0:05:09.039 here that boy, it's tough to be a Republican Speaker 0:05:09.080 --> 0:05:11.640 of the House. The last two, John Baynard and Paul Ryan, 0:05:11.680 --> 0:05:15.000 they were effectively hounded out of the position and out 0:05:15.000 --> 0:05:18.240 of politics in general by the right wing of their caucus. 0:05:18.760 --> 0:05:21.640 I mean McCarthy has to be sensitive to that, cognizant 0:05:21.680 --> 0:05:24.359 of that, you know, absolutely. I mean, the lifespan of 0:05:24.400 --> 0:05:26.320 a Republican House speaker, it's sort of like being the 0:05:26.400 --> 0:05:28.679 drummer for spinal tap, Like you're not gonna be around 0:05:28.760 --> 0:05:32.640 for very long. Um And you know, arguing peace. McCarthy 0:05:32.680 --> 0:05:35.560 actually has a tougher job than John Baynard or Paul Ryan, 0:05:35.600 --> 0:05:37.960 the last two Republican speakers, who were both hounded out 0:05:37.960 --> 0:05:40.599 of the job by their right wings. Um A, because 0:05:40.600 --> 0:05:43.200 the right wing is just more radical today. There's gonna 0:05:43.200 --> 0:05:45.600 be a narrow majority. But the other reason is that, 0:05:45.920 --> 0:05:49.400 you know, the big influential voice on the outside who's 0:05:49.440 --> 0:05:52.599 dictating a lot of behavior. Donald Trump wasn't on the 0:05:52.640 --> 0:05:54.800 scene for for John Bayner. I mean, John Bayner couldn't 0:05:54.800 --> 0:05:56.000 hold on to his job, and it was you know, 0:05:56.080 --> 0:05:58.200 Donald Trump wasn't even weighing in. Well, he's going to 0:05:58.240 --> 0:06:01.880 be now. You know, everybody, you're expecting a presidential announcement 0:06:01.880 --> 0:06:04.240 from Trump in the next couple of days or in 0:06:04.279 --> 0:06:06.520 the next week. Uh. You know, and he's somebody who 0:06:06.520 --> 0:06:10.880 likes to weigh in and criticize people, Kevin McCarthy in particular. Uh. 0:06:10.960 --> 0:06:13.280 And you know, that's one more headache that McCarthy is 0:06:13.320 --> 0:06:15.400 going to have to grapple with as he tries to 0:06:15.480 --> 0:06:19.440 cobble together this narrow majority, uh and keep his Republican 0:06:19.520 --> 0:06:23.279 caucus from revolting. That was Bloomberg business Week National correspondent 0:06:23.360 --> 0:06:25.800 Josh Green, along with the editor of Bloomberg business Week, 0:06:25.880 --> 0:06:28.800 Joel Webber, bloombergs Paul Sweeney co hosting with me as well. 0:06:29.480 --> 0:06:31.880 Josh by the way, also the author of Devil's Bargain 0:06:32.120 --> 0:06:35.120 Steve Badden, Donald Trump and the Storming of the Presidency 0:06:35.600 --> 0:06:37.840 coming up. How you move the growth needle on a 0:06:37.880 --> 0:06:40.640 more than one year old company and still find the 0:06:40.640 --> 0:06:44.320 sweet spot literally of your customers. The president of Mars 0:06:44.320 --> 0:06:47.400 Wrigley North America is coming up next. You're listening to 0:06:47.400 --> 0:07:00.160 Bloomberg Business Week. This is Bloomberg. This is bloom Earn 0:07:00.240 --> 0:07:03.800 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:07:03.839 --> 0:07:09.200 Stinovik from Bloomberg Radio. Recently, Bloomberg Live hosted its Growth Summit, 0:07:09.240 --> 0:07:12.720 focusing on the customer. It featured leaders from large, well 0:07:12.720 --> 0:07:15.800 known companies to talk about growing their own businesses and 0:07:15.880 --> 0:07:19.240 connecting with their customers. One company that's been doing that 0:07:19.280 --> 0:07:22.960 for over a century, Mars Anton Vincent, is president of 0:07:23.000 --> 0:07:27.280 Mars Wrigley North America, you know, home to Snickers, Twicks, Eminem, Skittles, 0:07:27.320 --> 0:07:30.320 Milky Way, Dove Chocolate Bars, and so much more. He 0:07:30.360 --> 0:07:33.120 and I talked about a lot, including the business and 0:07:33.200 --> 0:07:35.880 the continued price pressure is being felt by companies and 0:07:35.960 --> 0:07:39.400 consumers alike. Inflation is real, There's no doubt about it. 0:07:39.560 --> 0:07:42.240 When we're at year high as highest. I mean, I'm 0:07:42.440 --> 0:07:45.520 all enough to know when my parents had a mortgage rate, 0:07:45.560 --> 0:07:47.360 you know, and we had inflation from the oil barger 0:07:47.400 --> 0:07:49.360 back in the late seventies and stuff, and so you know, 0:07:49.400 --> 0:07:51.200 we've seen this before. We haven't seen it in this 0:07:51.400 --> 0:07:55.400 modern context and a highly globalized economy that's what actually 0:07:55.440 --> 0:07:57.440 makes it different, and so we see it. The first 0:07:57.440 --> 0:07:59.080 thing we always try to do is we try to 0:07:59.120 --> 0:08:01.920 offset it with product. We look on our own balance sheep, 0:08:01.920 --> 0:08:03.520 We look at our own p and on, so to say, look, 0:08:03.600 --> 0:08:06.640 how can we not sacrifice quality, get cost down, get 0:08:06.640 --> 0:08:08.880 expense down, and try to get very innovative in terms 0:08:08.920 --> 0:08:10.680 of how we get cost down over time. But this 0:08:10.760 --> 0:08:13.680 is not just inflation. This is extreme inflation. This is 0:08:13.720 --> 0:08:17.000 extreme inflation has come at us suddenly, right, so we 0:08:17.040 --> 0:08:19.320 didn't see it on the horizon. We came out of 0:08:19.360 --> 0:08:22.200 the pandemic and then demand shut up. Right, that's a 0:08:22.240 --> 0:08:25.040 recipe for extreme inflation. And the great thing about it 0:08:25.120 --> 0:08:28.960 is we have maintained relatively low unemployment levels, so there's 0:08:28.960 --> 0:08:31.320 still dollars out there to be spending put into the economy, 0:08:31.640 --> 0:08:33.439 and so a couple of things we do. We always 0:08:33.480 --> 0:08:35.320 look at our side first, and then you know, we 0:08:35.400 --> 0:08:38.000 understand that pricing is a necessity, and so we obviously 0:08:38.040 --> 0:08:39.320 do that. If you look at the data we have 0:08:39.400 --> 0:08:41.360 priced with the category, we're not out of bound with 0:08:41.400 --> 0:08:44.480 the category. But also we're trying to deliver value to 0:08:44.520 --> 0:08:46.240 the extent that we can deliver value over time. That 0:08:46.320 --> 0:08:47.760 is really our objective. If you look at it on 0:08:47.760 --> 0:08:49.640 a price program or a price pronouncer basis, you know 0:08:49.720 --> 0:08:52.000 we're still delivering that value in a way that's been 0:08:52.040 --> 0:08:54.440 consistent over time. We will always do that. At the 0:08:54.480 --> 0:08:56.360 same time, we want to be able to spend back 0:08:56.440 --> 0:08:59.760 against the business to draft new consumers, and you know 0:08:59.760 --> 0:09:01.520 you at a certain level of margin to do that. 0:09:01.840 --> 0:09:03.960 So it's not the concept of that we price and 0:09:03.960 --> 0:09:05.120 we take all of that and drop it to the 0:09:05.120 --> 0:09:08.560 bottom line. As a private company, as a private family company, 0:09:08.600 --> 0:09:11.200 we have a very long horizon, right, So we're not 0:09:11.640 --> 0:09:14.559 luxury of being right, it's a luxury now, nothing wrong. 0:09:14.559 --> 0:09:17.719 You know, we're financially driven company, but we drive our 0:09:17.760 --> 0:09:20.560 finances to drive a broader idea around how to make 0:09:20.600 --> 0:09:22.520 the world a better place. So so there's a different 0:09:22.720 --> 0:09:25.280 construct in terms of how you create economy and what 0:09:25.360 --> 0:09:26.920 you do with that excess for us, and for us 0:09:26.920 --> 0:09:29.560 we invest, We invest in sustainability, we invest in innovation, 0:09:29.880 --> 0:09:32.160 we invest in people. And you can still do that 0:09:32.280 --> 0:09:34.720 even when we can hire input costs. We can absolutely 0:09:34.760 --> 0:09:36.560 steal do that. You can afolutely steal what is the 0:09:36.559 --> 0:09:39.959 most important component of your long term growth strategy yeah, 0:09:39.960 --> 0:09:42.679 I would definitely say technology, because technology allows us to 0:09:42.720 --> 0:09:44.679 go and drive value across the value chain. I think 0:09:44.720 --> 0:09:46.360 that's going to be obviously be a fundamental for us. 0:09:46.559 --> 0:09:48.800 But sustainability is really huge for us. You know, we 0:09:48.800 --> 0:09:52.720 were about spent five years ago, um we introduced Sustainable 0:09:52.760 --> 0:09:55.160 in a Generation, which is our master plan in terms 0:09:55.200 --> 0:09:56.800 of how we're going to go after some very aggressive 0:09:56.840 --> 0:09:59.319 sustainability goals. And so I will tell you that Mars, 0:09:59.360 --> 0:10:02.160 there is no way that we're gonna grow without making 0:10:02.200 --> 0:10:05.320 the planet uh safer and with the lower carbon footprint. 0:10:05.400 --> 0:10:08.800 Those two things are actually interconnected for us. You know, 0:10:08.840 --> 0:10:11.920 it's funny moving like factories and things around so that 0:10:11.960 --> 0:10:14.319 it's closer to where you're seeing. Are we seeing are 0:10:14.360 --> 0:10:16.720 you guys doing I wouldn't say that we're doing that 0:10:16.760 --> 0:10:18.800 because we're a global business and so we believe in 0:10:18.800 --> 0:10:20.440 a global supply chain. We need to have a global 0:10:20.440 --> 0:10:23.240 supply still still now, now, don't get me wrong, the 0:10:23.400 --> 0:10:25.920 pandemic has taught us a few things around location and 0:10:26.000 --> 0:10:28.360 sourcing circles, around how do we make that, how do 0:10:28.400 --> 0:10:30.920 we make that more efficient, and how do we make 0:10:30.920 --> 0:10:32.839 sure that if we get out of business In terms 0:10:32.880 --> 0:10:34.640 of supply in one place that we have some type 0:10:34.640 --> 0:10:36.719 of redundancy in a certain part of the world. So 0:10:36.720 --> 0:10:38.280 I think we're getting stronger with in terms of our 0:10:38.320 --> 0:10:41.400 supply chain designs as well. But our ours is a 0:10:41.480 --> 0:10:43.560 very holistic approach, and I think the thing about it 0:10:43.600 --> 0:10:45.520 is not just the money and then if we have 0:10:45.559 --> 0:10:48.719 some left overs to some sustainability, it's very integrated. A 0:10:48.760 --> 0:10:51.120 matter of fact, part of my loan term compensation is 0:10:51.400 --> 0:10:53.640 how do I deal with making the world a better place, 0:10:53.960 --> 0:10:57.600 making it more sustainable, and building more trusted partnerships as well. Right, 0:10:57.679 --> 0:10:59.840 And so that's the great tension that we had with 0:10:59.840 --> 0:11:02.760 our economic model and then our purpose part of our 0:11:02.760 --> 0:11:04.520 business in terms of driving how we want to be 0:11:04.520 --> 0:11:05.720 in the world and how do we want to change 0:11:05.720 --> 0:11:07.280 the world for good. So let me ask can time 0:11:07.360 --> 0:11:10.040 because we do talk about too like E. S G. 0:11:10.120 --> 0:11:14.480 I fel like coming through reckoning. So profitability as important 0:11:14.520 --> 0:11:19.240 to sustainability. Well, no, we don't distinguish between the two, right. 0:11:19.520 --> 0:11:21.640 What we say is we need to generate profits to 0:11:21.640 --> 0:11:24.600 go interest your goals on sustainability, but not a profitability. 0:11:24.640 --> 0:11:26.240 I don't think we can hit our goals on stainability 0:11:26.240 --> 0:11:28.959 with our hitting our goals on profitability. Interesting, sustainability is 0:11:29.000 --> 0:11:31.959 an investment. This investment takes place over a very long 0:11:32.000 --> 0:11:35.240 period of time, and our concept is, uh, look, we 0:11:35.280 --> 0:11:37.120 need our profits now. The trick is how do we 0:11:37.160 --> 0:11:40.400 deploy those profits to now go and drive sustainability and 0:11:40.440 --> 0:11:42.480 how do we make that a virtual circle. Keep in 0:11:42.559 --> 0:11:45.160 mind we're a global manufacturer. We we need to have 0:11:45.240 --> 0:11:47.760 sustainable agriculture, we need have sustainable supply, we need to 0:11:47.800 --> 0:11:50.640 have security supply. It's impossible to do that without having 0:11:50.640 --> 0:11:53.319 a sustainable construct and that's what we believe and that's 0:11:53.320 --> 0:11:55.480 what we invested. Well, since you guys are globally and 0:11:55.600 --> 0:11:58.000 we talked about the outlook in the beginning, are you 0:11:58.000 --> 0:12:01.000 worried about a global recession? I wouldn't say them worried 0:12:01.040 --> 0:12:04.000 about a global resective. I do think we're gonna have 0:12:04.080 --> 0:12:06.040 some form of global recession. I think the question is 0:12:06.080 --> 0:12:08.040 how deep and how long? Right? I think that's the 0:12:08.040 --> 0:12:09.959 things that we're always trying to say. Hard to say 0:12:10.040 --> 0:12:11.000 right now. And by the way, it's going to be 0:12:11.000 --> 0:12:12.480 different in different parts of the world. You know, China 0:12:12.520 --> 0:12:14.439 looks very different because we got three hundred cities and 0:12:14.440 --> 0:12:16.719 one hundred and we're closed, well they open when they open. 0:12:16.720 --> 0:12:18.280 At the same time, there's a lot of conversation around that. 0:12:18.360 --> 0:12:21.520 We have a conflict in Ukraine and Russia. UM, big 0:12:21.520 --> 0:12:23.040 part of sort of where we do business as well. 0:12:23.080 --> 0:12:24.959 Who knows how that's going to go as well. Uh, 0:12:25.000 --> 0:12:27.760 Europe is a very complex place for a lot of reasons, 0:12:27.760 --> 0:12:31.439 so multi market areas. Prime minister and Prime minister out 0:12:31.480 --> 0:12:33.720 economic policies all over the place. You know, at some point, 0:12:33.760 --> 0:12:35.760 I think they're going to settle down. Um, So you 0:12:35.840 --> 0:12:37.560 ask the strongest right now? Yeah, I would say the 0:12:37.559 --> 0:12:39.880 Western hemisphere. I think it's probably the strongest, and probably 0:12:39.920 --> 0:12:41.240 the ones that are they're going to be able to 0:12:41.240 --> 0:12:43.560 withstand as well. Now with that portend is what is 0:12:43.559 --> 0:12:45.720 what does that do to your capital strategy? What does 0:12:45.760 --> 0:12:47.640 it do for in terms of M and A potentially 0:12:47.679 --> 0:12:49.800 those types of things. I think we're evaluating all those 0:12:49.800 --> 0:12:51.600 types of things to make sure that the business last 0:12:52.000 --> 0:12:55.640 another hundred years. Question every leader should be asking themselves 0:12:55.720 --> 0:12:59.319 today when it comes to their customers quickly, yeah, um, 0:13:00.240 --> 0:13:03.679 do me and my customers see value the same way? 0:13:03.960 --> 0:13:05.959 I don't think we can move forward in in a 0:13:06.080 --> 0:13:08.280 construct where I need to get as much as I 0:13:08.320 --> 0:13:09.760 get or the customer need to get as much. I 0:13:10.000 --> 0:13:13.480 think we have to have joint outcomes and joint plans 0:13:13.800 --> 0:13:16.760 because a customer can't do by themselves, the manufacturer can't 0:13:16.760 --> 0:13:19.680 do it ourselves. The customer community and the manufacturer community 0:13:19.720 --> 0:13:21.280 can't do them by the stuff. This has to be 0:13:21.679 --> 0:13:24.480 joint objectives. What is something you think we all should 0:13:24.559 --> 0:13:26.240 keep an eye on for clues about trends that may 0:13:26.280 --> 0:13:29.120 impact the growth interaction of our world. For me, it's 0:13:29.120 --> 0:13:32.520 pretty simple. The next generation, it's gen z uh. Look, 0:13:32.520 --> 0:13:35.640 they're going to form the households and they don't want 0:13:35.640 --> 0:13:37.320 to come to the office, but they need to work, 0:13:38.040 --> 0:13:39.800 and they need to work, and when they work, they consume, 0:13:39.840 --> 0:13:43.400 and so that's our economy. So look, like anybody would 0:13:43.400 --> 0:13:45.880 tell you, whether whether you're running elections or running a business, like, 0:13:46.000 --> 0:13:48.120 the next generation is telling you what's going to happen. 0:13:48.160 --> 0:13:49.880 They're telling you what you want. And so I think 0:13:49.880 --> 0:13:52.480 for us as leaders, regardless of age, you have to 0:13:52.520 --> 0:13:54.240 listen to them. You have to build a construct and 0:13:54.320 --> 0:13:58.320 operating model that accommodates their hopes and dreams and expectations. 0:13:58.320 --> 0:13:59.960 If you don't, you'll be dead in the water, all right, 0:14:00.160 --> 0:14:02.600 and if you have twenty minutes of found time in 0:14:02.640 --> 0:14:04.200 any given work day, how would you spend it to 0:14:04.200 --> 0:14:06.640 further grow your business and strategy? And as I said earlier, 0:14:06.960 --> 0:14:10.800 meditating taking a walk, doing nothing or okay answers, Yeah, 0:14:10.840 --> 0:14:13.000 you know, Um, I try to be steal as much 0:14:13.040 --> 0:14:17.840 as I can, because yes, because still just still, because 0:14:17.880 --> 0:14:20.800 we're running around so much. We're on planes, trains and automobiles, 0:14:20.800 --> 0:14:23.040 We're in meetings, we're in media, were everything, and so 0:14:23.080 --> 0:14:25.040 I think being steal, but I found in my best 0:14:25.080 --> 0:14:27.760 ideas where I get in touch with myself, as when 0:14:27.760 --> 0:14:29.560 I'm alone and I have time to think and I 0:14:29.600 --> 0:14:32.000 have time to challenge my own thoughts, which is very 0:14:32.040 --> 0:14:34.560 important as a leader. That was Anton Vincent, president of 0:14:34.560 --> 0:14:37.560 Mars Wrigley North America. Check out our full conversation. You 0:14:37.560 --> 0:14:40.440 could do that by heading to Bloomberg Live dot com. 0:14:40.480 --> 0:14:42.320 And we talked a little bit about whether or not 0:14:42.360 --> 0:14:44.920 he actually brought us any Eminem's or Snickers to sample 0:14:45.000 --> 0:14:47.800 at the event. All right, still ahead on Bloomberg Business Week, 0:14:48.080 --> 0:14:52.040 from sharing suites to sharing car is decorated. Entrepreneur Andre 0:14:52.160 --> 0:14:55.240 Haddad talks about it, talk about his current venture. He 0:14:55.400 --> 0:15:03.760 is the CEO of Toro. This is Bloomberg Broadcasting from 0:15:03.760 --> 0:15:07.520 the financial capital of the World Bloomberg eleven Frio in 0:15:07.600 --> 0:15:12.120 New York to Washington, d C. Bloomberg to Boston, Bloomberg 0:15:12.160 --> 0:15:15.320 one of six, one to San Francisco, Bloomberg nine sixty 0:15:15.440 --> 0:15:18.680 to the country Sirius XM Jenner one nine and around 0:15:18.720 --> 0:15:22.640 the globe the Bloomberg Business and Bloomberg Radio dot Com. 0:15:22.800 --> 0:15:26.840 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:15:26.920 --> 0:15:32.320 Quick Takes. Tim Stenovan on Bloomberg Radio. He has already 0:15:32.360 --> 0:15:35.840 sold two businesses to eBay. I Bizarre, the European auction 0:15:35.880 --> 0:15:38.520 marketplace he co founded and then sold to eBay in 0:15:38.520 --> 0:15:40.840 two thousand one for a hundred and forty million dollars, 0:15:41.280 --> 0:15:44.200 and then was CEO of Shopping dot Com when it 0:15:44.320 --> 0:15:46.960 was acquired by eBay in two thousand five or six 0:15:47.040 --> 0:15:50.120 hundred billion dollars. Today he is now CEO of the 0:15:50.120 --> 0:15:54.040 company that describes itself as the Airbnb of cars. Andrea 0:15:54.080 --> 0:15:56.480 Dodd is the CEO of the car sharing platform Touro. 0:15:56.880 --> 0:15:59.560 Bloomberg Radio is Paul Sweeney, and I asked him about 0:15:59.760 --> 0:16:03.400 how it works and why it's been so successful Turo. 0:16:03.560 --> 0:16:06.440 We have pioneered Peter Pierre car sharing, so we've built 0:16:06.480 --> 0:16:09.400 the very first and now largest car sharing platform on 0:16:09.440 --> 0:16:12.400 the internet. So you can unless your car and earn 0:16:12.440 --> 0:16:14.360 money with your car when you're not using it, or 0:16:14.400 --> 0:16:16.920 actually build a small business using our platform, which is 0:16:16.960 --> 0:16:20.720 increasingly what many of our hosts are doing. And also 0:16:20.880 --> 0:16:23.640 as a consumer, you can become a guest and book 0:16:23.720 --> 0:16:26.360 any kind of car whenever you want to go in 0:16:26.440 --> 0:16:30.160 whatever destination, across all the markets that we serve. All right, 0:16:30.200 --> 0:16:33.680 so here's a stat Many cars are underutilized assets that 0:16:33.760 --> 0:16:37.160 sit idle at the time, and it's Touro's mission to 0:16:37.160 --> 0:16:40.320 put the world's one point five billion cars to better use. 0:16:40.840 --> 0:16:42.560 How Come I didn't think of that? I mean, that 0:16:42.600 --> 0:16:44.720 seems like it's right out under you knows, I didn't 0:16:44.800 --> 0:16:47.440 think about it. What's the legal side of this? The 0:16:47.560 --> 0:16:49.480 liability side of this? How do you guys deal with that? 0:16:50.720 --> 0:16:53.240 We figured that out many years ago. So we have 0:16:53.800 --> 0:16:57.320 insurance that we offer through our Partner Travelers here in 0:16:57.320 --> 0:17:00.680 the US to all of our hosts and guests, and 0:17:00.840 --> 0:17:03.560 you know, the experience is pretty simple, you know, when 0:17:03.640 --> 0:17:07.479 you don't need any particular type of coverage, for your vehicle. 0:17:07.560 --> 0:17:09.960 You just have to have your personal coverage and then 0:17:10.040 --> 0:17:12.960 we provide that supplemental coverage when you start sharing your 0:17:12.960 --> 0:17:15.560 car on our platform. I love it. I love it, 0:17:15.600 --> 0:17:18.080 and I can also get a portion on eleven seventeen 0:17:18.280 --> 0:17:20.199 and it's about two and six dollars a day. This 0:17:20.280 --> 0:17:23.200 is fascinating, really really cool. So talk to us about 0:17:23.200 --> 0:17:26.120 the growth metrics were Bloomberg. We're kind of really into 0:17:26.160 --> 0:17:27.639 this stuff. Talk to us about the growth and the 0:17:27.640 --> 0:17:32.879 revenue line, your profitability, margin, expansion, walk us through it 0:17:32.880 --> 0:17:36.080 if you would. Sure, the business has been growing quite 0:17:36.119 --> 0:17:37.879 a bit actually over the last few years. As you 0:17:37.920 --> 0:17:41.720 can imagine, Initially with COVID, we were hit quite hard 0:17:42.359 --> 0:17:46.120 when everybody's uh, you know, businesses shut down, they're all 0:17:46.640 --> 0:17:51.560 shelter in place. But after one and this year we've 0:17:51.600 --> 0:17:56.399 seen tremendous growth. Last year, what's tremendous. One one, we 0:17:56.440 --> 0:17:59.920 grew by two percent instruments are revenue. That's to my 0:18:00.119 --> 0:18:03.240 this the first half of twenty two we grew our 0:18:03.720 --> 0:18:07.879 revenue by so we're continuing to see very strong growth 0:18:07.880 --> 0:18:10.240 and in the second half of twenty two, so we're 0:18:10.320 --> 0:18:12.600 we're very excited about the growth of the business, and 0:18:13.680 --> 0:18:16.720 for us, it's been tremendous also because it's been profitable growth. 0:18:16.840 --> 0:18:20.960 You know, we've hit our first IBIDA profitable quarter in 0:18:21.080 --> 0:18:24.760 Q three and we've been profitable ever since, you know, 0:18:24.800 --> 0:18:27.240 every quarter since. One of the big, if not the 0:18:27.359 --> 0:18:30.200 big trend in the auto business is the switch or 0:18:30.240 --> 0:18:35.960 the evolution to electric vehicles. How's that impacting your business. Yes, 0:18:36.080 --> 0:18:39.439 it's a huge trend in our business. We've actually pioneered 0:18:39.480 --> 0:18:42.840 the e vs on Touro now for for many years. 0:18:43.560 --> 0:18:47.560 Around of our GBV or gross booking value in twenty 0:18:47.640 --> 0:18:51.119 one came from trips that were taken by vehicles that 0:18:51.200 --> 0:18:54.680 are running on alternative energy, so that's primarily e v s, 0:18:55.520 --> 0:18:58.600 and more recently, in June of this year, e v 0:18:58.760 --> 0:19:01.320 s represented eight percent of all of our listing, so 0:19:01.400 --> 0:19:04.600 that's quite a bit higher than the overall percentage of 0:19:04.880 --> 0:19:08.280 vehicle registrations in the US, which is around two So 0:19:08.760 --> 0:19:13.240 adoption of evs has been much higher on Turo than 0:19:13.520 --> 0:19:16.280 in other other places. And you know, I'm a host 0:19:16.359 --> 0:19:18.680 myself on the platform, and I've shared several of my 0:19:18.800 --> 0:19:21.440 EV's over the last few years. A lot of people 0:19:21.480 --> 0:19:24.159