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. The Bloomberg Business Week
Speaker 1: Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 2: Hi, everyone, Welcome to the weekend edition of Bloomberg Business Week. Well,
Speaker 2: it was hard to keep track of the news flow.
Speaker 2: I never had enough Bloomberg screens up. Tim, I've just
Speaker 2: got to say a lot of stories this week with
Speaker 2: Sam Mekmin Freed and Donald Trump in Court of course DC,
Speaker 2: with Kevin McCarthy getting ousted from his role as House
Speaker 2: speaker in a moment. We're going to hear from the
Speaker 2: founder and executive chairman of logistics Giant XPO Trucking Giant
Speaker 2: as well on how politics at home and abroad affect
Speaker 2: his business and what higher rates really mean for the
Speaker 2: macro outlook.
Speaker 3: Also Ahead, Churchill's ken Kensal remains ultra bullish on private
Speaker 3: credit despite rising defaults. We're also going to speak with
Speaker 3: the head of Northwell Health on the promise in peril
Speaker 3: of AI when it comes to the healthcare sector. In
Speaker 3: the Bloomberg Equality Issue, it profiles entertainment local Tyler Perry,
Speaker 3: who's become a one man towrtive force despite being largely
Speaker 3: ignored by Hollywood studios.
Speaker 2: I love this story, so many great nuggets in it.
Speaker 2: All of that to come, We begin with the wild
Speaker 2: week that was for global bonds.
Speaker 3: I thought you were going to talk wild week for politics.
Speaker 2: Oh yeah, check check, all right, yes, also for American politics.
Speaker 2: It's how Speaker Kevin McCarthy was voted out of his role.
Speaker 2: I mean, it's just kind of hard to still get
Speaker 2: your head around all of it, and it's continuing to evolve.
Speaker 2: All of this against the backdrop of a big batch
Speaker 2: of US jobs market data, a lot for us to
Speaker 2: talk about and to help us make sense of it all,
Speaker 2: we turned to Bloomberg News rates reporter Michael McKenzie and,
Speaker 2: as we mentioned, Brad Jacobs, founder and executive chair at XPO,
Speaker 2: also the co founder of United Rental's former chair of
Speaker 2: United Waste. He has lots of experience when it comes
Speaker 2: to the real economy. Bloomberg Economics editor Molly Smith and
Speaker 2: I wanted to know how closely he watches yields, and
Speaker 2: this conversation happened about midweek.
Speaker 4: That determines what you want to do with your capital spending.
Speaker 4: Do you want to spend more, do you want to
Speaker 4: spend less? Do you want to invest? So pay a
Speaker 4: lot of attention to that.
Speaker 2: Well, Michael coman in on it, and then lay it
Speaker 2: out for us, because it's been kind of a wild
Speaker 2: ride once again when it comes to global bonds here.
Speaker 5: Yes it has, Carol, and I think the story remains.
Speaker 5: People are still trying to work out whereas the top
Speaker 5: and yields, particularly for ten year yields, which matter a
Speaker 5: great deal for the US economy. That's the yield that
Speaker 5: determines mortgages, and also it helps determine a lot of
Speaker 5: the corporate boring costs. It made a run above for
Speaker 5: eighty A lot of people talking maybe five percent, but
Speaker 5: it wasn't that long ago. In fact, just a couple
Speaker 5: of weeks ago when we were talking about four to
Speaker 5: fifty was going to be the ceiling. So really, when
Speaker 5: you talk to investors and bond managers, as I've been
Speaker 5: doing for last a few days, there's still a census
Speaker 5: shell shock out there.
Speaker 6: Yeah, tell us rad if you want to come in here.
Speaker 6: On the logistics perspective, this has got to be such
Speaker 6: a tough environment to operate in right now, with the
Speaker 6: idea that interest rates are high, I'm going to stay
Speaker 6: that way for a while. Well, you've got goods demand
Speaker 6: in the economy seems to be waning. I mean, how
Speaker 6: are you managing this right now? And how would you
Speaker 6: describe how the business is doing?
Speaker 1: Well?
Speaker 4: Interest rates are higher than what they work. They were
Speaker 4: low for a while. But I'm an old dog. I
Speaker 4: remember when interest rates were much higher than where they
Speaker 4: are now.
Speaker 2: But is that an important point because we keep saying perspective.
Speaker 2: I remember working with folks who said, I remember having
Speaker 2: a fifteen sixteen seventy percent mortgage rate.
Speaker 4: I remember when hi yeal bonds were in the mid
Speaker 4: teens and that was normal, and that.
Speaker 1: Was for a number of years.
Speaker 4: And I remember back at United Rentals when Leon Black
Speaker 4: was on our board and.
Speaker 2: He of a poll of fame, of course.
Speaker 4: One of the first inventors of the junk bond, now
Speaker 4: of the high yield called high yield, and I remember
Speaker 4: when it when it went down to about ten percent.
Speaker 4: He said, we got to get as much yielded as
Speaker 4: hig yielded issue as much as Possiblely.
Speaker 7: It's never going to go below here.
Speaker 4: Of course it did and stayed there for a long time,
Speaker 4: so I historically we're not at very high levels.
Speaker 2: Michael, come on back in, because I think Brod brings
Speaker 2: in a good point right when we talk about the
Speaker 2: amount of money that continues to maybe come into the economy,
Speaker 2: fuel it and continue to put pressure on the inflationary
Speaker 2: side of things, what are the markets telling us about
Speaker 2: monetary policy and inflation at this point.
Speaker 5: Well, he raises a very good point, and I think
Speaker 5: this is what the market has missed in particularly the
Speaker 5: bomb market. At the beginning this year. They really thought
Speaker 5: there was going to be a recession by now, and
Speaker 5: that hasn't come to fruition. And in fact, the stimulus
Speaker 5: coming through the Biden infrastructure and other plans is still
Speaker 5: kicking in. So the key here is that's probably going
Speaker 5: to keep employment pretty tight, and that's the one metric
Speaker 5: that everyone's now watching. And until you see employment severely
Speaker 5: weak and then suggest economies on a recessionary path, bond
Speaker 5: yields are going to stay high and they may go higher.
Speaker 5: And I think inflation is still fairly elevated. It's more
Speaker 5: than double the Fed's targets. So that still has going
Speaker 5: to take time to come down, but a sticky inflation environment,
Speaker 5: you know, a Brazilian economy by the job sector, and
Speaker 5: this fiscal stimul is still coming through from Washington. Rates
Speaker 5: are higher for London.
Speaker 2: I want to I'm curious, Brad, do you have a
Speaker 2: question for a rates guy?
Speaker 7: I do.
Speaker 4: How confident are you in that? What's your level of
Speaker 4: conviction on that? Because most people have gotten this completely
Speaker 4: wrong last couple of years. I remember I was at
Speaker 4: a trade organization for mostly fortune two hundred CEOs about
Speaker 4: year and a half ago, and we voted on the
Speaker 4: little slide o app of whether we're going to have
Speaker 4: a severe recession or a monitor recession or no recession
Speaker 4: or and n over ninety.
Speaker 2: Percent conference poll but go ahead yes.
Speaker 4: And and over ninety percent, well over ninety percent said
Speaker 4: it was either going to be a severe recession or
Speaker 4: a monitor recession last year. So obviously that never happened.
Speaker 4: So it's how confident are you in your in your
Speaker 4: in your prediction?
Speaker 5: Wells as you made that, you made that point, Brian
Speaker 5: so I was talking to investor this morning. He said
Speaker 5: he thinks now the rates are at levels where you
Speaker 5: will get a recession next year. However, he's still you know,
Speaker 5: that's his gut feel, but he says, I still got
Speaker 5: to check that I'm not confident enough that you know,
Speaker 5: we will get a real slow down, and so therefore
Speaker 5: it really I think the markets it's been saying recession, recession,
Speaker 5: it's been caught out every time. I think it's still
Speaker 5: going to take time for the stimulus to come through
Speaker 5: and wear off. And I think the other real factor.
Speaker 5: I think one of the big changes here is the
Speaker 5: Bob mark has always been used to this idea that
Speaker 5: oh our rates go up, something breaks, nothing's broken, And
Speaker 5: I think the reason why we haven't really seen anything
Speaker 5: break outside of course regional banks who've now been ring
Speaker 5: fenced by the FED. And that's a very important point
Speaker 5: because as long as they stay ring fenced, that's not
Speaker 5: going to bleed into the economy as much. But I
Speaker 5: think the key fact here is you've got a lot
Speaker 5: of people sitting on thirty or six mortgages below three
Speaker 5: percent who do not want to sell their homes and
Speaker 5: take out a new mortgage. And you've got a lot
Speaker 5: of companies that benefited from borrowing at very low rate
Speaker 5: back in twenty one and twenty twenty, and again you're
Speaker 5: not going to get that corporate bond hit that we
Speaker 5: would have got from higher rates.
Speaker 2: Delight to still have with us. Brad Jacobs, Founder and
Speaker 2: executive chair at XPO. Your customers include everybody from Amazon, Apple,
Speaker 2: eight Am, Low's, Walmart home depots, so many more companies.
Speaker 2: And you have a global perspective. Where is though the
Speaker 2: strongest parts of the global economy in your view, and
Speaker 2: how does geopolitics potentially continue to kind of impact that.
Speaker 7: Geopolitics is very important.
Speaker 4: I think the two biggest things are obviously of Vladimir
Speaker 4: Putin and Chi Jimpin, who could single handily, literally single
Speaker 4: handedly you them, throw a pretty big monkey ranch into
Speaker 4: whole world economy. Those are not insignificant possibilities. Those are
Speaker 4: not one percent possibilities. So we have to pay attention
Speaker 4: to that. But we can't be obsessed by that. We
Speaker 4: can't just be.
Speaker 7: Held down and just just.
Speaker 4: Enamored but just that those features, so.
Speaker 7: We just keep trucking along.
Speaker 2: But okay, cute, But Brett, in terms of the pushback
Speaker 2: against g you know, the globalization of the economy, and
Speaker 2: we talk about that being pushed back. Do you see
Speaker 2: that guy firsthand.
Speaker 4: Yeah, so every so you mentioned before and increasingly so,
Speaker 4: no question, but that she mentioned before some of the
Speaker 4: customers you have. So I'm privileged to have windows into
Speaker 4: g XO RXO XPO where we have a whole cross
Speaker 4: section of customers right around the whole world, and so
Speaker 4: you get to see a lot a lot of information
Speaker 4: what's going on, and you also get to interact with
Speaker 4: a lot of customers, a lot of boards of customers,
Speaker 4: a lot of C suite. There's not a single board
Speaker 4: in America that's not who has and has had business
Speaker 4: in China. Who's not thinking I need to diversify away
Speaker 4: from China. It's just the risk is too high. So
Speaker 4: everyone universally is doing that.
Speaker 2: What about the risks in our own political system? Does
Speaker 2: that crop up? Does that bother you? Does that worry
Speaker 2: you about? What happened this week with the Speaker of
Speaker 2: the House.
Speaker 4: Well, that's the two party system, and that's been going
Speaker 4: on for a couple hundred years.
Speaker 2: Do you consider it functional?
Speaker 7: It's worked for two hundred years.
Speaker 4: I mean so as a global traveler, I certainly would
Speaker 4: not want to be in any of the countries that
Speaker 4: have one party systems.
Speaker 7: That's the worst.
Speaker 4: I mean, there's a very repressive, horrible cultures. And this
Speaker 4: is a country where, despite everyone fighting with each other
Speaker 4: and calling each other's names and certain levels of dysfunction, we,
Speaker 4: unlike China, don't have a million people in prison camps
Speaker 4: because of their religion. We, unlike in Russia, we don't
Speaker 4: have journalists like you. If you criticize the president, you
Speaker 4: go to jail for eight years. So I mean, it's
Speaker 4: still a great country, fantastic country.
Speaker 6: When we're looking at some of the trends in the
Speaker 6: US economy right now, I mean, we've been talking about
Speaker 6: for so long the shift of preferences from goods to services,
Speaker 6: and I would think from your perspective, that's probably the
Speaker 6: last thing you would want to hear. You want people
Speaker 6: to be buying stuff.
Speaker 8: Right we are good.
Speaker 4: All of the three companies I mentioned move goods one
Speaker 4: way or another, So more goods is better than more services.
Speaker 4: But for the economy as a whole, that's a normal cycle.
Speaker 4: Sometimes it's more goods, some it's more services. We're not
Speaker 4: in the best part of the cycle to be in transportation,
Speaker 4: but there are specific things that each one of those
Speaker 4: three companies are doing that are independent of the macro
Speaker 4: to improve the businesses.
Speaker 2: That was Brad Jacobs, founder and executive chairman at XBO,
Speaker 2: along with Bloomberg's Michael Mackenzie. Brad, by the way, has
Speaker 2: a new book coming out in January, How to Make
Speaker 2: a few Billion dollars. More of our conversation on that
Speaker 2: and on his portfolio of companies, it's all available on
Speaker 2: the Business Week podcast feed. Molly Smith will be back
Speaker 2: with us next hour. And I got to say Tim
Speaker 2: Brad's going to come back to talk about that book.
Speaker 2: And I've been exchanging conversations on LinkedIn.
Speaker 3: Well, hopefully I'm there that you better be there. Yes,
Speaker 3: he's a lot of market down you're listening to Bloomberg
Speaker 3: business Week coming up. Why Churchill Asset Management CEO Ken
Speaker 3: Kensel sees upside for his business despite upheaval in Washington
Speaker 3: and the higher for longer rate environment, Well, we appear
Speaker 3: to be destined.
Speaker 9: For all of those dynamics. Has come one of the
Speaker 9: most attractive opportunities that I've certainly seen in my career
Speaker 9: in direct lending in private credit.
Speaker 3: The head of New Ven's forty seven billion dollars private
Speaker 3: capital affiliate joins us next, This is Bloomberg.
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Speaker 2: Banks, as you know, increasingly muscling in on the one
Speaker 2: and a half trillion dollar private credit market in a
Speaker 2: move that further blurs the lines between private lending funds
Speaker 2: and their traditional banking rivals. Bloomberg News reporting this month
Speaker 2: at Barklay's Associate General and Deutsche Bank have all made
Speaker 2: concerted efforts to grab a slice of the lucrative, increasingly
Speaker 2: lucrative corner of leverage finance.
Speaker 3: Back with us for a temperature check on the private
Speaker 3: credit world. As Ken can sell, he's president and CEO
Speaker 3: of Churchill Asset Management Nevians, a forty seven billion dollar
Speaker 3: private capital affiliate, which is the asset management arm of
Speaker 3: trillion dollar financial services firm TIAA. Ken spoke with Carol
Speaker 3: and Bloomberg Simone Foxman from the Greenwich Economic Forum in
Speaker 3: Connecticut this past Tuesday. This was just ahead of Kevin
Speaker 3: McCarthy officially using his post as House speaker.
Speaker 9: Uncertainty is generally not a good thing, and certainly we've
Speaker 9: had a lot of that over the last year. The
Speaker 9: current environment that we've been you know, living through has
Speaker 9: you know, certainly created a very challenging dynamic overall, and
Speaker 9: and of course the banking termail in the spring, and
Speaker 9: of course now some of the dynamics playing out of Washington.
Speaker 9: But but I would say that out of those dynamics
Speaker 9: has come one of the most attractive opportunities that that
Speaker 9: I've certainly seen in my career in direct lending, in
Speaker 9: in private credit. So I guess in that sense, you know,
Speaker 9: I never wanted to wish for for dysfunction and uncertainty,
Speaker 9: But but I will say that in many respects, you know,
Speaker 9: private credit and direct lending, you know, unlike the GFC
Speaker 9: Carrol you know, has been here if you will, to
Speaker 9: kind of come to the rescue a bit by providing
Speaker 9: the financing capital and lending capital and and ultimately growth
Speaker 9: can capital to the companies that need that capital and
Speaker 9: have you know, have done and have performed well through
Speaker 9: the current environment. So in that sense, we're super busy
Speaker 9: and hoping that if things settle down a bit. We
Speaker 9: were certainly hoping for that post labor day that you know,
Speaker 9: we get even busier.
Speaker 10: Well, interesting that you talk about private credit like this,
Speaker 10: because Bank of America actually put out a note they
Speaker 10: said that private debt defaults are going to reach five
Speaker 10: percent by early twenty twenty four because a lot of
Speaker 10: deals one third of deals come due in the next
Speaker 10: two and a half years.
Speaker 2: Is that bad for private credit though?
Speaker 9: Well, first of all, I'm not sure I agree with
Speaker 9: those numbers. You know, the reality is if you look
Speaker 9: at our portfolio or the portfolio of any number of
Speaker 9: you know, what are arguably high quality, you know, the
Speaker 9: top tier you know, private credit managers, you know, some
Speaker 9: of which are publicly traded, I think what you would
Speaker 9: see is generally portfolios have held up extremely well. So,
Speaker 9: you know, I think that the prediction that default rates
Speaker 9: would reach five percent is not supported by what we're
Speaker 9: seeing today. Now, now that doesn't mean that it won't
Speaker 9: won't play out, but I would say that just because
Speaker 9: there's a maturity wall doesn't necessarily mean that those companies
Speaker 9: are going to ultimately default. I mean, I think what
Speaker 9: you may very well see, and you're already seeing it today,
Speaker 9: is that you know, a lot of those companies are
Speaker 9: going back to their lendings lenders and say, look, this
Speaker 9: is a good business, it has strong cash flow, it's
Speaker 9: performed well, and we need to extend and the frankly,
Speaker 9: the reality is that to the extent that the businesses
Speaker 9: have performed, the odds are very good that they can
Speaker 9: work something out with their lenders and extend the maturity.
Speaker 9: So I wouldn't necessarily equate maturities to defaults because you know,
Speaker 9: as a direct lender is a private credit lender, you
Speaker 9: know we have the ability to sit down with the
Speaker 9: company and work out the dynamics if in fact those
Speaker 9: need to be done. Now, it's a totally different story
Speaker 9: if the company is performing poorly or underperforming it, or
Speaker 9: you know, is otherwise not able to make its payments.
Speaker 9: But I would not attribute just maturity to necessarily creating
Speaker 9: that problem. And certainly we are not seeing evidence of
Speaker 9: that today, so you know, it'll being to see how
Speaker 9: that plays out.
Speaker 2: Ken Raight, Defaults can tell one story, and you're saying
Speaker 2: you're not necessarily seeing that, But in terms of rewriting
Speaker 2: terms and working with your borrowers, are you doing a
Speaker 2: lot more of that in this environment?
Speaker 9: Frankly not right now, I would tell you that our
Speaker 9: portfolio today, so we have investments in over five hundred
Speaker 9: US mid market companies in in areas like healthcare and
Speaker 9: software and business services. These are all backed or owned
Speaker 9: by private equity investment firms, which is largely the case
Speaker 9: for many of our peers. And I think, you know,
Speaker 9: I've certainly had an opportunity to talk to my peers
Speaker 9: You'rredish Economic Forum. Number of them are here. You know,
Speaker 9: we trade notes, and I can tell you that our
Speaker 9: portfolios overall are holding up quite well. So you know,
Speaker 9: our quote unquote workout person is frankly not that busy. Surprisingly,
Speaker 9: I think to some and and our new deal people,
Speaker 9: you know, the folks that are underwriting new transactions are
Speaker 9: actually quite busy. In fact, we had a very strong
Speaker 9: we had a record quarter for a third quarter last quarter.
Speaker 9: And you know, to the extent that you know, we
Speaker 9: do get some clarity regarding the dynamics in and around
Speaker 9: interest rates, and maybe a bit more certainty regarding potential
Speaker 9: increases and interest rates and inflation. You know, I think
Speaker 9: we could very well find ourselves in a relatively soft landing.
Speaker 9: And if we do, you know, I think we'll see
Speaker 9: M and A activity and transaction activity pick up, right
Speaker 9: because I mean it's really you know, the markets really
Speaker 9: waiting for some stability regarding rate. So there's a lot
Speaker 9: of liquidity in private credit. Institutional investors are allocating significantly
Speaker 9: to the space yields. Obviously, conditions are quite attractive right now,
Speaker 9: and we're busy.
Speaker 2: So I do wonder where you are seeing any cracks,
Speaker 2: because I do wonder in this higher rate environment, and
Speaker 2: we are going to be higher for longer, there's gone
Speaker 2: there's going to be some problems. We know that.
Speaker 9: We're absolutely absolutely and I would say that, you know,
Speaker 9: in many respects, this is the kind of period where
Speaker 9: you know, the lenders that maybe we're a bit more
Speaker 9: aggressive and looked really good, you know, and getting higher returns,
Speaker 9: but maybe taking on more risk. I think, are those
Speaker 9: dynamics are coming home to roost? But I would say
Speaker 9: overall yes, And I would say that where we see cracks,
Speaker 9: if you will, and they're you know, certainly in our portfolio.
Speaker 9: There are not many, but where we see them, they're
Speaker 9: very episodic and they're not tied to a broad you know,
Speaker 9: pullback in in economic condition. So for example, you know
Speaker 9: a deal that was done a year ago where you
Speaker 9: know they embarked upon an acquisition strategy in those acquisitions
Speaker 9: did not play out as expected, or where there was
Speaker 9: a fundamental premise regarding healthcare reimbursement rates and some shifts
Speaker 9: in the way that they oriented the business that maybe
Speaker 9: didn't play out as well. So there are certainly situations
Speaker 9: that have not gone as well as planned, but not
Speaker 9: a fundamental pullback of the type that we would have seen,
Speaker 9: for example, in the GFC, in any way, shape or form.
Speaker 11: So can I ask.
Speaker 2: One last question, because we're run out of time. I
Speaker 2: wish you know, when I speak with you, I always
Speaker 2: want like an hour. They're thirty seconds quick because we
Speaker 2: keep talking about you know, treasury levels. Pick your duration
Speaker 2: back to levels of two thousand and seven, two thousand
Speaker 2: and eight. I think today reminds you of the Great
Speaker 2: Financial Crisis very quickly, like thirty seconds.
Speaker 1: Yeah.
Speaker 9: So I would say the pullback in the syndicated loan
Speaker 9: markets in many respects as a carbon copy in that sense. Right,
Speaker 9: So colo markets go dormant, liquid loan markets go dormant.
Speaker 9: The difference this time direct lending is there lots of
Speaker 9: liquidity lending capital to really go and support private equity.
Speaker 9: So similar in the liquid markets, but different in the
Speaker 9: sense that there are direct lenders there now to provide
Speaker 9: that capital.
Speaker 3: That was Ken Kensel, president and CEO of Churchill Asset Management,
Speaker 3: along with Carol and Simone Foxman earlier this week.
Speaker 2: Still ahead on Bloomberg Business Week, Jamie diamond says artificial
Speaker 2: intelligence is going to help extend our lives and rid
Speaker 2: us of terrible diseases such as cancer. Our next guest
Speaker 2: heads a massive healthcare institution, and while he's optimistic about
Speaker 2: the emerging technology, he's not ready to jump all in.
Speaker 11: It provides extraordinary opportunity to improve clinical care, improve diagnosis,
Speaker 11: analyze data, but it also brings with it from potential Danjos.
Speaker 3: North Well Health CEO Michael Dowling stops by next. This
Speaker 3: is Bloomberg.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 1: Just Say Alexa playing Bloomberg eleven thirty.
Speaker 12: Technology has done unbelievable things from mankind. But you know,
Speaker 12: planes crash, pharmaccheries getting misused. There are negatives.
Speaker 13: This is one.
Speaker 12: The biggest negative in my view, is AI being used
Speaker 12: by bad people to do bad things. Think of cyber
Speaker 12: you know, Hemmy Kissinger talks about warfare, but you know
Speaker 12: the fact and I do think you know, eventually have
Speaker 12: legal guardrails around. It's kind of hard to do because
Speaker 12: it's new, but it will add a huge value.
Speaker 2: All right, So, Tim, we've been talking a lot about
Speaker 2: this conversation that Jamie Diamond had with Bloomberg Originals Emily
Speaker 2: Chang that over the next generation, AI, artificial intelligence is
Speaker 2: going to have a profound impact not just on the
Speaker 2: way we work, but also in a big way on
Speaker 2: our health.
Speaker 3: Yeah, here's what he said. Your children are going to
Speaker 3: lift to one hundred and not have cancer because of technology,
Speaker 3: and literally they'll probably be working three and a half
Speaker 3: days a week, lift to one hundred, a world without
Speaker 3: cancer three and.
Speaker 7: A half day work weeks.
Speaker 2: Sign me up.
Speaker 7: Yeah sounds pretty great.
Speaker 13: Right.
Speaker 2: All right, So let's see what our next guest has
Speaker 2: to say about the role AI will play in our health.
Speaker 2: Michael Dolling back with us president and CEO at Northwell Health,
Speaker 2: you know, the largest healthcare provider in New York, the
Speaker 2: Northwell System, treating over two million New Yorkers each year
Speaker 2: at twenty one hospitals eight hundred and ninety outpatient facilities.
Speaker 2: You guys are hosting your annual Constellations Forum that focuses
Speaker 2: on AI and healthcare Constellation Forum, I should say, And
Speaker 2: you are focusing on AI and healthcare? How are you
Speaker 2: guys and putting this together? Thinking about artificial intelligence, which
Speaker 2: is not a new science.
Speaker 11: As you just mentioned, AIA is not new. The capability
Speaker 11: of the accelerated capability of it has been enhanced dramatically
Speaker 11: over the last couple of years and that will continue
Speaker 11: and it's going to be an integral part of whatever
Speaker 11: everything that we do going forward. So we have to decide.
Speaker 11: The big decision point for me is deciding what is
Speaker 11: it good for and what is it not so good for?
Speaker 11: And I think we will be going through that analysis
Speaker 11: for quite a time because it provides extraordinary opportunity to
Speaker 11: improve clinical care, improve diagnosis, analyze data, but it also
Speaker 11: brings with it some potential dangers. You don't want the
Speaker 11: machine brain to outpace the human brain so that the
Speaker 11: human brain can't figure out what the machine brain is
Speaker 11: doing to you. Okay, is something we have to be
Speaker 11: very very careful.
Speaker 3: Let's talk about the pluses before we get into the
Speaker 3: potential dark side here, which sounds like, you know, something
Speaker 3: out of a sci fi movie. What do you make
Speaker 3: of what Jamie Diamond said earlier today? Your children are
Speaker 3: going to lift to one hundred and not have cancer
Speaker 3: because of AI technology?
Speaker 7: Is that is that true?
Speaker 11: I want I want to live to be one hundred
Speaker 11: floss That's what we were.
Speaker 2: Talking about earlier, me too here here, Yeah.
Speaker 1: But is that where we are? Is that?
Speaker 7: Is that an accurate thing to say?
Speaker 2: Do you think we're getting nothing?
Speaker 13: Class?
Speaker 11: And I think we just got to be careful not
Speaker 11: to over exaggerate. I think it can have wonderful potential
Speaker 11: to allow us to identify the diseases earlier on, especially
Speaker 11: with the genome sequencing. When you combine them the results
Speaker 11: of the mapping of the human genome with AI, we
Speaker 11: will be able to predetermine way way in advance what
Speaker 11: you potentially could end up having problems with.
Speaker 7: Okay, So then what would you do about it? To
Speaker 7: intervene what would you do about.
Speaker 3: That if you noticed somebody was set to get cancer.
Speaker 11: Well, then I think that you've got to determine the
Speaker 11: clinical leadership has the determine how you intervene, how you
Speaker 11: how you change behavior so people act differently, What kind
Speaker 11: of clinical treatments that you have to engage in to
Speaker 11: allow people to live longer a member, in the last
Speaker 11: fifty years or sixty years, we've added about thirty years
Speaker 11: to life, as life expectancy back in the nineteen thirties
Speaker 11: was around forty seven to fifty todays we're in the
Speaker 11: seventies and eighties, so we've had major progress.
Speaker 3: I do want to push back on this a little
Speaker 3: bit because in recent years we've also seen it come
Speaker 3: down as a result of COVID and drug overdoses.
Speaker 11: Yeah, but that's a temporary thing. I mean that happens.
Speaker 11: You look at the long term trend, not the short term.
Speaker 11: You know, births in a statistic, it's the long term trend.
Speaker 11: And sure, when you have a thing that COVID is
Speaker 11: increase of mortality and it does come down a little bit,
Speaker 11: But I don't think that's something that will set a
Speaker 11: prediction for the future.
Speaker 2: What do you believe will be the most significant changes
Speaker 2: in healthcare that helps patients live longer and live a better,
Speaker 2: longer life.
Speaker 11: The biggest change in my view, to make those results
Speaker 11: a reality. It goes beyond the delivery of medical care.
Speaker 11: It has to do with lifestyle and behavior, so all
Speaker 11: of the social determinants of health. It has to deal
Speaker 11: with some of the societal issues. I mean, have we
Speaker 11: do a great job of taking care of you after
Speaker 11: you get sick, but we have to do a much
Speaker 11: better job of taking care of you before you get sick,
Speaker 11: so you can prolong life. But that involves finding ways
Speaker 11: to get people to improve their own health, prove their
Speaker 11: own lifestyle. And that's just where AI can also be very,
Speaker 11: very helpful to be able to do the analytics right,
Speaker 11: to be able to tell you what people should be
Speaker 11: doing to improve their own situations and not dependent upon
Speaker 11: others all the time.
Speaker 2: We'll go back to that idea of genetic mapping, and
Speaker 2: you know, we're born, we get a map and we
Speaker 2: can already see what might be the potential problems. Maybe
Speaker 2: it's hard problems, so then maybe we know from the
Speaker 2: get go that we have an awareness. I think about
Speaker 2: kids who are born, you know, who have you know,
Speaker 2: diabetes from a young age or or different issues if
Speaker 2: you will, you know from a young age, they that's
Speaker 2: their life and they grow into or grow with that
Speaker 2: problem and just from the get go look at life
Speaker 2: differently in terms of what they eat and what they
Speaker 2: need to do. And I do wonder if we had
Speaker 2: that map from the get go, whether it's removing organs,
Speaker 2: treating things differently, like, I just wonder, can we do
Speaker 2: it better at a much earlier stage.
Speaker 11: Absolutely, I think that you'll be doing genome sequencing of
Speaker 11: all kids within a couple of years in most children's hospitals.
Speaker 11: We are investigating that possibility right now here at not
Speaker 11: Well as part of our children's hospital. So I think
Speaker 11: that that's where it will start, mostly with children, and
Speaker 11: then I think it will expand to be doing genome
Speaker 11: sequencing with adults. But let's be let's be cautious here
Speaker 11: because while it offers wonderful, wonderful potential, we don't fully
Speaker 11: know all of the implications yet, and we don't fully
Speaker 11: understand all of the ethical issues involved. So you know,
Speaker 11: you find out something about somebody or some family member,
Speaker 11: what extent do you disclose it what extent do you
Speaker 11: share it, how should it be shared, and when should
Speaker 11: it be shared. All of these issues have to be
Speaker 11: worked out very very carefully over the next couple of years.
Speaker 11: So the enormous potential is here with the combination of
Speaker 11: genome secreting and AI. But I think we're going to
Speaker 11: a process over the next couple of years to figure
Speaker 11: out how to make use of it as appropriately as
Speaker 11: we possibly can and not overreact. Not on the react either,
Speaker 11: but not overreact. A little bit of caution is important here.
Speaker 11: It's especially given the situations you're seeing with chat GIPG recently,
Speaker 11: where it produces lots of controversial information that's not correct.
Speaker 11: You cannot be doing that in the healthcare sphere. It's
Speaker 11: just too dangerous.
Speaker 3: But there's something kind of strange happening here where we're
Speaker 3: talking about AI, Carol and what it can do in
Speaker 3: the future, because you know, there's this article in the
Speaker 3: current edition of Bloomberg Business Week about a moxicillin shortage
Speaker 3: here in the US. I mean, we're talking about a
Speaker 3: drug that was discovered more than fifty years ago. And
Speaker 3: I lived this nightmare on Friday when my son was
Speaker 3: diagnosed with an ear infection, and the doctor had to
Speaker 3: spend a half hour of her time calling different pharmacies
Speaker 3: around Brooklyn trying to find a ten day supply of
Speaker 3: antibiotics a moxicillan that ended up costing me three dollars
Speaker 3: and sixteen cents when she finally found it. Michael, she
Speaker 3: wasted so much time doing this. How are we talking
Speaker 3: about world where AI helps us live to one hundred
Speaker 3: but we can't get a moxicillin.
Speaker 14: Well.
Speaker 11: But that's why you've got to be This is why
Speaker 11: you've got to be a little bit cautious. As I said,
Speaker 11: this is why you can automatically assumed that there's a
Speaker 11: new technology coming into play that is going to just
Speaker 11: solve everything immediately. There's a lot of all the issues involved.
Speaker 11: I mean, one of the biggest changes in healthcare is
Speaker 11: moving more and more healthcare out into the community, expanding
Speaker 11: ambulatory care. I'm moving stuff out of the hospital, be
Speaker 11: less hospital centric. The whole supply chain issues, the whole
Speaker 11: labor cost issues, all of these things are all part
Speaker 11: of the complete package that you've got to deal with.
Speaker 11: There is no warm magic, I know, pure all just
Speaker 11: because you have a new technology. It's how we used
Speaker 11: that technology in the context of the whole environment that
Speaker 11: makes if we do it right, we'll improve.
Speaker 3: Everything our Thanks to Michael Dowling, the president and CEO
Speaker 3: at Northwell Health, his organization is the largest healthcare provider
Speaker 3: in New York. We spoke with him ahead of north
Speaker 3: Well's annual constellation for him, which took place on Thursday.
Speaker 2: You're listening to Bloomberg business Week. Up next, we'll dig
Speaker 2: into the Bloomberg Business Week Equality Issue, which lays out
Speaker 2: a corporate promise made and kept.
Speaker 15: The important thing is that it does appear that when pushed,
Speaker 15: the companies can make change.
Speaker 2: This is Bloomberg.
Speaker 1: You're listening to the Bloomberg Business Week podcast just live
Speaker 1: weekday afternoons from three to six Eastern Listen on Bloomberg
Speaker 1: dot com, the iHeartRadio app, and the Bloomberg Business app,
Speaker 1: or watch us live on YouTube.
Speaker 2: So remember, amid the pandemic and more importantly, following the
Speaker 2: murder of George Floyd, how we heard from Corporate America
Speaker 2: big time making big statements and promises when it comes
Speaker 2: to diversity. Well, it turns out, Tim it wasn't just talk.
Speaker 3: This data driven feature was a recent Bloomberg Big Take
Speaker 3: and can also be found in the Equality issue of
Speaker 3: Bloomberg BusinessWeek magazine. We encourage you to view it online
Speaker 3: and on the terminal to get a better sense of
Speaker 3: these important numbers, and it's got a really cool graphical interface.
Speaker 3: Bloomberg News Managing Diversity reporter Jeff Green is here to
Speaker 3: help us break the whole thing down.
Speaker 15: We took a look at the sm P one hundred,
Speaker 15: well at least eighty eight of the S and P
Speaker 15: one hundred where we had data from twenty twenty to
Speaker 15: twenty twenty one, so the year after George Floyd, to
Speaker 15: see what actually happened with their workforce after what they promised.
Speaker 15: So when we looked at the net added workers, that
Speaker 15: means everything'subpracted. Everything added. The three hundred plus thousand workers
Speaker 15: that were in the S and P one hundred companies
Speaker 15: that weren't there in twenty twenty, ninety four percent of
Speaker 15: them were people of color. And the first time we
Speaker 15: saw it, we figured we must have done something wrong.
Speaker 15: So we kept digging, and it's just that's the number.
Speaker 13: You know.
Speaker 2: It's interesting, John, because I feel like coming out of
Speaker 2: the pandemic you're seeing it feels like some of the conversations.
Speaker 2: I mean, Jeff, excuse me, some of the conversations, and
Speaker 2: you know, narrative roll back a little bit. But what
Speaker 2: you're saying is companies actually went out and did it.
Speaker 15: Yeah, well, the narrative that's being rolled back now was
Speaker 15: not the narrative they were acting on in twenty twenty
Speaker 15: into twenty twenty one. So that is a big question
Speaker 15: that is going to be you know, we're going to
Speaker 15: be watching is as twenty twenty two data becomes available,
Speaker 15: which won't be till sometime next year. They don't have
Speaker 15: to turn this in till December, so sometime next year
Speaker 15: will get a sense of what happened next. And you know,
Speaker 15: more importantly, I guess is, whenever we see twenty twenty
Speaker 15: three data, what did that really mean? But I mean,
Speaker 15: the important thing is that it does appear that when pushed,
Speaker 15: the companies can make change. There's a lot of other
Speaker 15: factors that went into this, obviously, because there are demographic
Speaker 15: changes going on. The pandemic was very disruptive. We had
Speaker 15: people of color being brought back in quickly to a
Speaker 15: workforce after people over adjusted and got rid of frontline
Speaker 15: workers not understanding how things going to work. There's many
Speaker 15: factors at play here, but when we dig into it,
Speaker 15: we still think some of it had to be on purpose.
Speaker 2: Jeff having said that in most cases right, diversity or
Speaker 2: people of color are still very way, way underrepresented when
Speaker 2: it comes to what you find at companies.
Speaker 15: Well, in this sample, because these are the biggest companies,
Speaker 15: it's about fifty to fifty overall white and versus people
Speaker 15: of color, which is higher than the workforce in the country,
Speaker 15: which is more like seventy percent white. However, when you
Speaker 15: look at that, when you look at the workforces, even here,
Speaker 15: the higher paying, more power jobs are still underrepresented. There
Speaker 15: are still a smaller proportion of people of color in
Speaker 15: those jobs. But it did get better at every level
Speaker 15: in the data that we looked at.
Speaker 3: So, Jeff, talk to us though about the types of
Speaker 3: jobs that these folks were hired for, because it's not
Speaker 3: just that they were hired, we know what types of
Speaker 3: jobs these people were hired for.
Speaker 15: Well, yeah, to some degree, there was a predominant of
Speaker 15: entry level jobs, those that maybe don't require a degree.
Speaker 15: But even at the level where a degree would probably
Speaker 15: be required or there would be a promotion required, we
Speaker 15: did see movement I mean, we focused on Amazon, which
Speaker 15: net Net didn't change the overall racial breakdown of their
Speaker 15: company after hiring thousands of people, but they did push
Speaker 15: people of color up in the power structure. I mean,
Speaker 15: it was a very interesting move which you looked to
Speaker 15: be purposeful once again in the way that they approached
Speaker 15: their hiring and promotions.
Speaker 3: That's Bloomberg News Managing Diversity reporter Jeff Green. His story
Speaker 3: is an the current is of business Week. It's the
Speaker 3: equality issue, and it's available now on newstands, online and
Speaker 3: on the Bloomberg terminal.
Speaker 2: And that wraps up the first hour of the weekend
Speaker 2: edition of Bloomberg Business Week from Bloomberg Radio. Ahead in
Speaker 2: our next hour, more from our magazine team, including the
Speaker 2: domestic cover story, which profiles the entertainment mogul that Hollywood
Speaker 2: ignored for a long time until now. We're talking about
Speaker 2: Tyler Perry.
Speaker 3: Plus with much of America keeping an eye on court
Speaker 3: cases involving former President Donald Trump and fallen crypto mogul
Speaker 3: Sam Bankman Freed, we look at the critical issues facing
Speaker 3: the nation's highest court as it enters a new term
Speaker 3: with guns, abortion, the limits of federal power, and much more.
Speaker 3: On the docket.
Speaker 2: This is Bloomberg Business Week. I'm Carol Masser.
Speaker 3: And I'm tim Stenaveeck.
Speaker 7: Stay with us.
Speaker 3: Today's top stories and global business headlines are coming up.
Speaker 7: Right now.
Speaker 1: You're listening to the Bloomberg Business Week Podcast. Catch us
Speaker 1: live weekday afternoons from three to six Easter on Bloomberg Radio,
Speaker 1: the Bloomberg Business app, and YouTube. You can also listen
Speaker 1: live on Amazon Alexa, our flagship New York station, jo
Speaker 1: Say Alexa play Bloomberg eleven thirty.
Speaker 2: Plenty ahead in our second hour of the weekend edition
Speaker 2: of Bloomberg Business Week, including our domestic cover story on
Speaker 2: Tyler Perry's self made media empire, which he built without
Speaker 2: much help from Hollywood.
Speaker 3: Plus the CEO of the regenerative agricultural company Regrow on
Speaker 3: using data to drive sustainability, and some key legislation that's
Speaker 3: set to help the cause.
Speaker 2: That legislation coming from your home state. All right, First
Speaker 2: up this hour the Bloomberg Business Week Equality Issue, covering
Speaker 2: a lot this week, including the US Supreme Court opening
Speaker 2: up a new term, the remarks in the latest edition
Speaker 2: of the magazine ponder where its conservative revolution might go next.
Speaker 2: One federal Appeals Court already has lots of ideas.
Speaker 3: In the next nine months, an outside share of the
Speaker 3: High Court's biggest cases will come from the ultra conservative
Speaker 3: Fifth US Circuit Court of Appeals. Those far reaching rulings
Speaker 3: are providing impossible, are proving impossible for the Supreme Court
Speaker 3: to ignore. Cases involving federal regulatory power, guns and probably
Speaker 3: abortion in social media regulation are going to test Carrol
Speaker 3: just how far the Supreme Court's conservative majority wants to
Speaker 3: go in remaking the nation's legal landscape.
Speaker 2: We're all watching closely. Greg Stores, Bloomberg News Supreme Court reporter,
Speaker 2: writes for Bloomberg BusinessWeek about the conservative Fifth Circuit and
Speaker 2: the key decisions that could come in the Justice's next terms.
Speaker 2: He joins us from Washington, DC. Also here the edit
Speaker 2: of Bloomberg Business Week. Joel Weber with us at Bloomberg headquarters.
Speaker 2: I feel like the fourth quarter is a big one
Speaker 2: on so many different levels, Joel, but definitely for the
Speaker 2: nation's highest court.
Speaker 16: So this is the beginning of a new term for
Speaker 16: the Supreme Court, and Greg has become indispensable in writing
Speaker 16: sort of these walk ups and helping us make sense
Speaker 16: of these moments. Obviously, the Supreme Court has made a
Speaker 16: number of interesting and controversial and headline making decisions within
Speaker 16: the last couple of years. What he flagged heading into
Speaker 16: this one is that the Fifth Circuit is the area
Speaker 16: of the country that is basically an appellate court that
Speaker 16: has a lot of very conservative judges, and this term
Speaker 16: in particular has a number of cases that originate with
Speaker 16: that appellate court. So, greg what does it all mean
Speaker 16: and help us make sense of it all?
Speaker 17: Well, it means a number of things. It starts in
Speaker 17: starts off with some big cases involving the power of
Speaker 17: federal regulatory agencies. There's a case with the Court's going
Speaker 17: to be hearing tomorrow involving the Consumer Financial Protection Bureau,
Speaker 17: that's the entity that regulates things like mortgages and auto
Speaker 17: loans set up after the two thousand and eight financial collapse.
Speaker 17: And then it's got cases involving guns and almost certainly
Speaker 17: abortions coming up later on in the term, and they're
Speaker 17: really going to shape how far the Supreme Court's going
Speaker 17: to go this term.
Speaker 16: Okay, So the Fifth Circuit talk to us about what
Speaker 16: they oversee and their jurisdiction, and also what makes this
Speaker 16: time so different?
Speaker 17: Yeah. So this is a court that has twelve Republican
Speaker 17: appointed judges and just for Democratic judges, and six of
Speaker 17: the Republican appointed just judges are Trump appointees. And the
Speaker 17: individual personalities on the court are also very distinctive and
Speaker 17: very outspoken. So just to name one, there's a judge
Speaker 17: named James ho who, even while on the bench, has
Speaker 17: written that abortion is a moral tragedy and said that
Speaker 17: if there's too much money in politics, it's because there's
Speaker 17: too much government. And these conservative litigants in many cases,
Speaker 17: like the State of Texas, which is part of the circuit,
Speaker 17: like to get their cases before this court because very
Speaker 17: very often they get good results. And with a number
Speaker 17: of these cases this term, what has happened is that
Speaker 17: this circuit has struck down an administration policy or said
Speaker 17: that it administrative agency has to change the way it's
Speaker 17: doing something, and the Biden administration and has gone to
Speaker 17: the Supreme Court saying, hey, the Fifth Circuit's gone too far.
Speaker 17: So it's kind of testing just how conservative the US
Speaker 17: Supreme Court is.
Speaker 2: Well, it sounds like it's a list that they will
Speaker 2: be dealing with with some very very important issues. It's
Speaker 2: hard to pick out like, what's the most significant, But
Speaker 2: where shall we begin in terms of cases that you,
Speaker 2: as someone who's followed the US Supreme Court like, really
Speaker 2: is kind of front and center, and you're thinking about
Speaker 2: this one in a big way.
Speaker 17: Well, certainly the gun case that they're going to hear
Speaker 17: arguments on November seventh is one that's going to get
Speaker 17: a lot of attention. This is a case involving whether
Speaker 17: somebody who is subject to a domestic violence restraining order
Speaker 17: still has his or her full Second Amendment rights. The
Speaker 17: Supreme Court back a year and a half ago, in
Speaker 17: a case called Bruin, that the way we test whether
Speaker 17: a gun restriction is constitutional is to look back into
Speaker 17: history and see if we can find a historic analog
Speaker 17: to the current restriction. And in this case, the Fifth
Speaker 17: Circuit said, you know, we look back at seventeen eighty nine,
Speaker 17: and we didn't see any laws that restricted gun possession
Speaker 17: by somebody who has a domestic violence restraining order, and
Speaker 17: therefore the Second Amendment doesn't allow the sort of restriction.
Speaker 17: So this is going to be a real test of
Speaker 17: whether the Supreme Court's history test that had set up
Speaker 17: a couple of years ago means what it seems like
Speaker 17: it means. And if it does, then that means it's
Speaker 17: going to be really hard to argue in favor of
Speaker 17: all these other gun restrictions around the country.
Speaker 3: So what does that mean for the federal ban on
Speaker 3: bump stocks? If we're continuing with the firearms theme, what
Speaker 3: would this court potentially do in that context and explain
Speaker 3: what bump stocks are actually? I think a lot of
Speaker 3: people might remember them, I think in the wake of
Speaker 3: the Las Vegas shooting years ago.
Speaker 17: Right right, there's a Las Vegas shooting. Basically, it's a
Speaker 17: device that turns a semi automatic weapon, which is legal,
Speaker 17: into a machine gun, which is illegal. And the question
Speaker 17: this is actually a very different legal question and indicase
Speaker 17: involving the domestic violence restraining orders. This is actually a
Speaker 17: question of administrative law and not a question of the
Speaker 17: Second Amendment. The question is whether the Bureau of Alcohol
Speaker 17: and Tobacco and firearms, when it banned those and this
Speaker 17: actually was under the Trump administration, whether it had authority
Speaker 17: to do that. Essentially, what ATF did was to say
Speaker 17: that a bump stock is akin to a machine gun,
Speaker 17: which is illegal, and therefore we're going to say the
Speaker 17: bump stocks are illegal too, So this one actually goes
Speaker 17: to one of those questions of how much power do
Speaker 17: federal regulatory agencies do. It just happens to be one
Speaker 17: that also coincides with this big fight over gun rights.
Speaker 16: Greg let's bring it back to core Bloomberg competencies. Two
Speaker 16: other areas that will be of great interest the Consumer
Speaker 16: Financial Protection Bureau, as was the Securities Exchange Commission. What
Speaker 16: might be in the balance.
Speaker 2: Here, Ye, it's like barely a decade old. I think
Speaker 2: the CFPP.
Speaker 17: Yeah, yeah, just slightly more than that. You're right. And
Speaker 17: this is actually the second time we've had a CFPB
Speaker 17: case at the Supreme Court. This is a Fifth Circuit
Speaker 17: ruling in some ways came out of nowhere. This was
Speaker 17: not like an argument people have been raising for years.
Speaker 17: But the Fifth Circuit said, there's a constitutional provision that
Speaker 17: says you can't spend money without a congressional appropriation. And
Speaker 17: the way CFPP is set up, it gets its money
Speaker 17: from the Federal Reserve, it doesn't it not subject to
Speaker 17: the year to year congressional appropriation process. And the Fifth
Speaker 17: Circuit said, up, that's unconstitutional the way it's set up,
Speaker 17: and it struck down is paid a lending rule that
Speaker 17: never actually took effect, but it cast a cloud over
Speaker 17: basically everything the CFPB had done. Because if everything it's
Speaker 17: been doing all this time has been using money that
Speaker 17: it wasn't supposed to have, maybe there are questions about
Speaker 17: whether those past actions can stand. So there's a lot
Speaker 17: of concern, and there's a brief buy like the mortgage
Speaker 17: industry saying, hey, we're really concerned that this might unsettle
Speaker 17: the mortgage industry if the Supreme Court adopts in a
Speaker 17: full threaded way what the Fifth Circuit did, So big
Speaker 17: stakes for this agency. There's an agency that has been
Speaker 17: very active in a lot of fronts, both the banking
Speaker 17: world and the non banking world. So the business community
Speaker 17: is going to be watching this one very closely.
Speaker 2: You know, I do wonder too, Greg. I think about
Speaker 2: our audience, right, and obviously Supreme Court justices can Supreme
Speaker 2: Court decisions, excuse me, will impact different parts of the
Speaker 2: US population. But I think about the investment world and
Speaker 2: the business world, and I think about certainly the CFPB
Speaker 2: they're going to be following that. But what do you
Speaker 2: think is top of mind for like the Bloomberg audience.
Speaker 17: Certainly all these cases about regulatory agencies are really really important,
Speaker 17: and the business community kind of has an ambivalent relationship
Speaker 17: with them, so they don't like a lot of the regulation,
Speaker 17: but they do like stability, and the CFPB case sort
Speaker 17: of threatens some of that stability. There's another big case
Speaker 17: involving another big case involving it's a little technical but
Speaker 17: really really important, but how much authority agencies have to
Speaker 17: interpret ambiguous federal statutes. And that's another case where to
Speaker 17: give the agency more power, which is traditionally what they've
Speaker 17: had that at least ensures some stability in terms of
Speaker 17: the regulations. So that is a big thing. So far
Speaker 17: this term, we don't have any of the major business fights,
Speaker 17: nothing over like punitive damages or class actions, none of
Speaker 17: the kind of traditional fights that the Chamber of Commerce
Speaker 17: has been pushing. The biggest action is probably going to
Speaker 17: be in these administrative law questions.
Speaker 3: Our thanks to Bloomberg News Supreme Court reporter Greg Store
Speaker 3: and Bloomberg Business Week editor Joe Weber for that report.
Speaker 2: You're listening to Bloomberg business Week. Coming up, the equality
Speaker 2: issue profiles writer, director, producer and actor Tyler Perry. He
Speaker 2: truly does it all. And we get into how he
Speaker 2: built his own media empire.
Speaker 13: He did what has been key to his financial success.
Speaker 13: He insisted on owning one hundred percent after Wyant's Gate
Speaker 13: was finished with those distribution rights.
Speaker 2: This is Bloomberg.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: live weekday afternoons from three to six Eastern Listen on
Speaker 1: Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App,
Speaker 1: or watch us live on YouTube.
Speaker 7: What is wrong with you? Why do you feel the
Speaker 7: need that you got to get somebody all the time? Well,
Speaker 7: when you get and gotten somebody that got you, and
Speaker 7: you go get them. When you get them, everybody's gonna
Speaker 7: get God. Yeah, but you're getting the gotters when they
Speaker 7: didn't do anything to you.
Speaker 1: Get you.
Speaker 7: God has get me. I'm gonna get my glock.
Speaker 2: That's the voice of Medea Simmons. She's the famed movie,
Speaker 2: TV and theater character created and portrayed by writer, director, producer,
Speaker 2: and actor Tyler Perry. Medea is considered the leading lady
Speaker 2: of Perry's sprawling entertainment empire. We know that, Tims Sure.
Speaker 3: The latest issue of Bloomberg BusinessWeek Magazine is the Equality Issue.
Speaker 3: It's out now on newstands, online, and on the Bloomberg terminal,
Speaker 3: and one feature is this week's Domestic cover story on
Speaker 3: how the Hollywood establishment largely ignored Perry on his way
Speaker 3: to achieving incredible commercial success well also helping to turn
Speaker 3: Atlanta into a film and television hotbed.
Speaker 2: There's a lot of amazing nuggets in that story. Hey,
Speaker 2: Bloomberg's Molly Smith, and I actually caught up with Bloomberg
Speaker 2: News Atlanta b our chief Brett Pulley to find out more.
Speaker 13: I first met and spoke with Tyler Perry and did
Speaker 13: a story about eighteen nineteen years ago Diary, his first
Speaker 13: film with Lionsgate, his very first film that just come out,
Speaker 13: Diary of a Mad Black Woman. And you know, it's
Speaker 13: really interesting to revisit someone from the time there in
Speaker 13: sort of this new evolving stage that he was in,
Speaker 13: and then to visit him years later and he's a
Speaker 13: billionaire and you know hosts Megan Markle and Prince Harry
Speaker 13: at his house now that's like they're hide away when
Speaker 13: they leave the when they left the UK, and you know,
Speaker 13: his best friends with Oprah and all these things, and
Speaker 13: owns a really formidable motion picture studio here in Atlanta.
Speaker 6: So Brett, you get at this a little bit in
Speaker 6: the story here how Tyler Perry grew up in New
Speaker 6: Orleans and then came to Atlanta and realized that this
Speaker 6: is where he wanted to set up shop and gets
Speaker 6: a little bit starstruck almost every time he goes down
Speaker 6: I seventy five, and you know, sees his name on
Speaker 6: billboards directing them to Tyler Perry Studios. Just want to
Speaker 6: get a sense from you. You know, this isn't the
Speaker 6: Hollywood Hills here, but you know you've been in Atlanta
Speaker 6: for quite some time now, you're Atlanta Bureau chief. What
Speaker 6: is it? How much of it do you see driving
Speaker 6: through the city there?
Speaker 13: Well, I mean you see both things. You see Tyler
Speaker 13: Perry's presence, as you mentioned, you know, I mean you can't,
Speaker 13: you know, go to and from the world's busiest airport,
Speaker 13: which is in Atlanta without seeing that those signs off
Speaker 13: the highway because it's so relatively close to the airport. Uh.
Speaker 13: And so its presence, you know, it's significant in so
Speaker 13: many ways. Uh. And as is the presence of the
Speaker 13: entertainment and the motion picture business here. I mean you know,
Speaker 13: just over the last ten years or so since very
Speaker 13: aggressive tax uh tax benefits have been put in place
Speaker 13: by the state, a lot of film and television is
Speaker 13: produced here. You know, all of the practically all of
Speaker 13: the Marvel stuff from Disney uh is done here. UH.
Speaker 13: And a host of you know, a host of programs,
Speaker 13: television programs and films and UH. And it's it's interesting
Speaker 13: because it has it has u pomped it a lot
Speaker 13: of people who would otherwise be in Hollywood to be
Speaker 13: here in Atlanta, and that's you know, that's that's you know, talent.
Speaker 13: But also you know, I've been having conversations with people
Speaker 13: who were in film finance and some of the big
Speaker 13: agencies have put offices here, and so it's you know,
Speaker 13: it's really becoming a Hollywood West. And Tyler Perry is
Speaker 13: you know, is a large part of that and certainly
Speaker 13: the largest personification of that.
Speaker 2: Tell us about Tyler Perry though, and you know, it's
Speaker 2: interesting as we teased into it, I mean, this is
Speaker 2: you know, Hollywood sometimes misses trends and waves no doubt
Speaker 2: about it, and they definitely the Hollywood establishment, as you
Speaker 2: point out, ignored this individual who wrote, who directed, who
Speaker 2: produced who acted truly the one man show? What is
Speaker 2: it that Hollywood missed? And why did they miss it?
Speaker 2: And tell us how Tyler Perry is just turning how
Speaker 2: we make content upside down?
Speaker 13: Yeah, well, I think they missed. What they missed is that,
Speaker 13: you know, there are a lot of places to look
Speaker 13: for UH business and to look for an audience, right
Speaker 13: and there I think the the the prism may have
Speaker 13: been a little too narrow in Hollywood. You know, Tyler
Speaker 13: recounts some great examples of that. You know, he went
Speaker 13: to see UH an executive after his he had built
Speaker 13: an audience with his stage plays around the country, right
Speaker 13: at all these theaters and cities around the country. People
Speaker 13: would you know, church groups and stuff loaded up on
Speaker 13: buses and people went to see these plays. And then
Speaker 13: he created a great ancillary revenue along, you know, with
Speaker 13: with merchandise and other sales. And so he had made
Speaker 13: a fair amount of money before Hollywood had discovered him.
Speaker 2: Annual ticket sales and you say, fifty million million revenue.
Speaker 13: So when he finally got a deal in Hollywood with
Speaker 13: lions Gate, right, he put up half, they put up half,
Speaker 13: and he did what has been key to his financial
Speaker 13: success he insisted on owning one hundred percent after Lionsgate
Speaker 13: was finished with those distribution rights. So after however, many years,
Speaker 13: one hundred percent ownership of all of these films goes
Speaker 13: to Tyler Perry. So you know, as a result, Tyler
Speaker 13: owns all twenty eight of the films he's made, he
Speaker 13: owns over eighteen hundred episodes of television. I mean, you
Speaker 13: talk about a long tail. You know, as distribution platforms change,
Speaker 13: and we know they keep evolving and changing, who knows
Speaker 13: what in the world that'll be worth one day?
Speaker 2: Right, hey, listen, I want to go to what you
Speaker 2: started to say that when he went to visit a
Speaker 2: Paramount Pictures executive looking for a filmed out film deal
Speaker 2: and they said, well, black people don't go to the movies, Well,
Speaker 2: he has shown them that they certainly.
Speaker 13: Do, right, that's for sure. I mean, you know, all
Speaker 13: of the films, every film that he's made, every film
Speaker 13: that he made for Lionsgate. I'm not sure about the
Speaker 13: subsequent ones, but you know, the lions shared no pun
Speaker 13: intended of his work has been distributed by Lionsgate. In
Speaker 13: terms of motion pictures, they all made money and they're
Speaker 13: reliable sources. Of revenue, and he delivers them on time,
Speaker 13: and he delivers them under budget. And of course these
Speaker 13: are things in a very predictable, unpredictable business, I should say,
Speaker 13: such as motion pictures that Hollywood likes. And so he
Speaker 13: has been a reliable sort of production machine for the
Speaker 13: motion picture and television business.
Speaker 6: So, Brett, you mentioned that Tyler Perry has been trying
Speaker 6: to extend his commercial reach. He's openly said that he
Speaker 6: wants to buy bet from Paramount. You also mentioned in
Speaker 6: the story that Tyler Perry's trying to get into streaming,
Speaker 6: So what's the next big move for him?
Speaker 13: Certainly interested in bet and has been interested, and I
Speaker 13: guess it's a matter of if Paramount puts the property
Speaker 13: back on the market. And he has deals with Netflix
Speaker 13: and with Amazon, and is in the streaming world and
Speaker 13: has some projects coming up in that world with some
Speaker 13: formidable stars such as Carrie Washington and Oprah Winfrey and
Speaker 13: Susan Sarandon. So he's still on the hunt for the
Speaker 13: elusive critical success, but certainly sticking very close to what
Speaker 13: has made him a tremendously successful guy.
Speaker 2: So many great nuggets in this story about how he
Speaker 2: came to be and just kind of where he's going. Brett,
Speaker 2: thank you so much. Of course, our Bloomberg News Atlanta
Speaker 2: b R chief Brett Polly. His book, by the Way
Speaker 2: on beet is called The Billion Dollar Bets, so check
Speaker 2: that out as well.
Speaker 3: Molly Smith with Carol and Brett right there, Tyler Perry,
Speaker 3: such a big voice today when it comes to content,
Speaker 3: when it comes to media, when it comes to culture.
Speaker 2: Totally on that.
Speaker 3: A reminder that we will be on the road in
Speaker 3: Los Angeles this coming Thursday for the first ever installment
Speaker 3: of Bloomberg's screen Time. We'll be speaking with the moguls,
Speaker 3: celebrities and entrepreneurs defining the next phase of pop culture.
Speaker 3: Find out more at Bloomberg Live dot com.
Speaker 2: An amazing lineup and we're going to be featuring some
Speaker 2: of those folks on air well. Speaking of the West Coast.
Speaker 2: Up next on Bloomberg BusinessWeek, how the Golden State is
Speaker 2: taking the lead in data driven sustainability guidelines within the
Speaker 2: all important agricultural sector.
Speaker 1: That's straight ahead. This is Bloomberg. You're listening to the
Speaker 1: Bloomberg Business Week podcast. Catch us live weekday afternoons from
Speaker 1: three to six Easter on Bloomberg Radio, the Bloomberg Business App,
Speaker 1: and YouTube. You can also listen live on Amazon Alexa
Speaker 1: from our flagship New York station, Just say Alexa Play
Speaker 1: Bloomberg eleven thirty. This is Bloomberg Business Week with Carol
Speaker 1: Messer and Tim Steneveek on Bloomberg Radio.
Speaker 2: Our next guest is a Bloomberg New Economy Catalyst class
Speaker 2: of twenty twenty two. Now just a reminder, Catalysts are
Speaker 2: people whose innovations, efforts and objectives have a genuine shot
Speaker 2: at changing the world for the better. And we are
Speaker 2: so delighted to have back with us Anastagia Volkova. She's
Speaker 2: the co founder and CEO of the regenerative ag company Regrow.
Speaker 2: We got to talk about some of the accolades, Tam.
Speaker 3: Yeah, well, let's just start with just a couple of them. Okay,
Speaker 3: but we got to we can't say I'm all or else.
Speaker 3: We're not going to get any time from an interview.
Speaker 3: Let's just go with this one time. Is named Regrow
Speaker 3: is one of the one hundred most influential companies in
Speaker 3: twenty twenty three. Fast Company has named it one of
Speaker 3: the most innovative companies of the year and Anastasia was
Speaker 3: named to the Time one hundred list of the next
Speaker 3: one hundred most influential people in the world.
Speaker 18: Can I say, aren't you happy you called it first
Speaker 18: with the catalysts?
Speaker 16: Yes?
Speaker 2: Yes, yes, yes. You also have a PhD in visual
Speaker 2: drone navigation, which I always think is so cool and
Speaker 2: I think we talked about it last time. Good to
Speaker 2: have you back with us.
Speaker 18: Yeah, if i'd beless to be back. Thank you so
Speaker 18: much for having me. Absolutely, it's wonderful to also see
Speaker 18: all the momentum in food and agriculture space and the
Speaker 18: industry leaders generally, we believe that it's an industry that
Speaker 18: can decarbonize thes soon as are.
Speaker 2: Things really changing and things are What is momentum?
Speaker 12: Me?
Speaker 18: What does it look like? Okay, let's look at the
Speaker 18: most recent pieces. So to California builds a passing legislature
Speaker 18: and they are going to mandate climate disclosures for companies
Speaker 18: over one billion dollars in revenue trading in California. There's
Speaker 18: also a segment for half a billion dollar revenue company.
Speaker 2: Which does that mean what do they have to show?
Speaker 18: It literally means that they need to go and calculate
Speaker 18: how they are impacting climate in their own emissions as
Speaker 18: well as their purchase goods and services. So if you are,
Speaker 18: for example, a food company making food that ends up
Speaker 18: on the shelf or on the plate, you literally need
Speaker 18: to be thinking about what is the emissions on farm
Speaker 18: because this is where the largest portion of those emissions sits.
Speaker 18: And by twenty twenty seven you'll have to declare it,
Speaker 18: which effectively means that if you start measuring it, you'll
Speaker 18: start managing it.
Speaker 3: When you say that this is one of the industries
Speaker 3: that can decarbonize the quickest, are you including animals in
Speaker 3: this as well?
Speaker 1: Like?
Speaker 7: Are you including cattle farming's ranch?
Speaker 14: That's right?
Speaker 7: Agriculture, how I mean this is like one of the
Speaker 7: worst things for the environment.
Speaker 18: It's very subjective, right, so when you start thinking about
Speaker 18: what are the animals supposed to do versus what we
Speaker 18: got them to do, how we disaggregated agriculture. Whilst in
Speaker 18: an integrated system, they're actually all very helpful. It's a
Speaker 18: more circular system. You can feed them better. Crops with
Speaker 18: a lot of emissions in the animal system are still
Speaker 18: in the crops. We produce most of the crops to
Speaker 18: feed animals, not to feed ourselves. So that's where the
Speaker 18: majority of the impact will come.
Speaker 7: First use the complication.
Speaker 18: I am saying that we need to decarbonize all parts
Speaker 18: of the burger and starting to list what are the
Speaker 18: parts that we should decombnize. But I am definitely saying
Speaker 18: the alternative burgers better for the environment, Yes, but there's
Speaker 18: things about the burger that are also not terrible for them.
Speaker 2: And a station when you work with the company, what
Speaker 2: exactly do you do for them?
Speaker 18: We help them first uncover their school three emissions i e.
Speaker 18: Those that on farm. So if they come and pick
Speaker 18: their supply sheds, they say, I source this over there.
Speaker 18: Can you tell me how is that impacting the environment?
Speaker 18: And we actually letter up the data from the field levels,
Speaker 18: have dynamically generated data on a near real time basis
Speaker 18: that can say here's what's happening in the landscape, this
Speaker 18: is what's what's impacting the environment right now. Once they
Speaker 18: have that snapshot, they can also model with the platform
Speaker 18: that we provide them, the ag resilience platform, the abatement potential,
Speaker 18: that is to say, what can I change for better?
Speaker 18: What can I reduce? How can I get to my
Speaker 18: mission deroduction goal?
Speaker 2: So it's not about carbon offsetting. It's actually do so
Speaker 2: you don't create carbon in the first place.
Speaker 18: Yes, it's value chain investments. It's almost we call it
Speaker 18: in setting. It's the opposite. So you take action within
Speaker 18: your value chain. You are not you're reducing your own emissions,
Speaker 18: you're not looking to offset them somewhere else.
Speaker 2: I hate offset.
Speaker 18: Sorry no, and European Commission is with you.
Speaker 2: Because you shouldn't be making You've got to reduce the
Speaker 2: carbon footprint. It's not a case. It's not exactly I'm
Speaker 2: not going to all right, so I'm creating a lot
Speaker 2: of carbon, but I'm going to go plant some trees.
Speaker 2: You're still putting the carbon in there, like we've got
Speaker 2: to reduce it overall. That's just.
Speaker 13: No.
Speaker 18: Absolutely, have to find ways of producing food in a
Speaker 18: way that doesn't harm the environments so much it actually
Speaker 18: renews it and regenerates.
Speaker 7: It is vertical farming. One of those answers.
Speaker 18: Oh it seem good question.
Speaker 7: It's very controversial.
Speaker 18: It's very controversial because you have to consider everything from
Speaker 18: the system perspective. Right, So on one hand, you have
Speaker 18: the transportation of say, salad from Salinas, California, to New
Speaker 18: York City and that's absurd. So you probably should consider
Speaker 18: growing it here if you recycle some of the resources,
Speaker 18: if you're able to provide it with the water it
Speaker 18: needs without drawing more water into that farm over time. Okay, great,
Speaker 18: but you're still looking at a system that largely requires
Speaker 18: artificial synthetic input fertilizers, and they sustain the system, is
Speaker 18: opposed to say soil out there that when healthy sequestors
Speaker 18: carbon and provides water, cleaning, clean air, all of those
Speaker 18: ecosystem services to us living all around those environments.
Speaker 2: You know, it's interesting. We had Johanna's Huting of Powers
Speaker 2: twenty one on and they basically are making sure that
Speaker 2: you know, or helping developing the developing world, you know,
Speaker 2: create data sets. They don't actually have the data, but
Speaker 2: they're pulling from different sources and making sure it's pure.
Speaker 2: But the whole idea is you need to collect and
Speaker 2: track transformative data to help bring about transformative policies and change.
Speaker 2: Talk to us about the importance of that having that
Speaker 2: data that you guys are providing, right, the information, but
Speaker 2: also go hand in hand with governments, states, countries saying
Speaker 2: we've got to do better. And so you need the
Speaker 2: data to kind of meet.
Speaker 18: Absolutely it has to, and we have plenty to update
Speaker 18: the listeners on with the IRA money, with the investment
Speaker 18: with the Information and Reduction Act, and the Embedded Climate's
Speaker 18: MARGE Commodities program. The administration is looking to effectively accelerate
Speaker 18: the investment into low carbon commodities and agricultural sector. But
Speaker 18: also they have released recently an initiative specifically focused on
Speaker 18: the data and the MRV the monitoring, reporting and verification
Speaker 18: of emissions and practices, and they completely go hand in hand.
Speaker 18: So if we ever want this to be a truly
Speaker 18: bipartisan issue that is internationally accepted, we need to start
Speaker 18: looking at the data and not wondering where the money
Speaker 18: is going on. Because once you are seeing that the
Speaker 18: money is getting to where it needs to be, why
Speaker 18: wouldn't you invest more in because you are getting that
Speaker 18: return you're looking for. But it's the data that needs
Speaker 18: to tell that story.
Speaker 3: Talk to us more about this because I always wonder
Speaker 3: about incentives here. It's one thing for the state to
Speaker 3: actually require disclosures like California is doing, you know, and
Speaker 3: it is a side point, but my concern is that, Okay,
Speaker 3: all these companies are going to move to Texas, which
Speaker 3: is a state that will not require these types of disclosures.
Speaker 3: Maybe that's a conversation for a different day.
Speaker 2: You really grow on in Texas.
Speaker 3: I mean, you could base your company in Texas instead
Speaker 3: of facing it.
Speaker 18: Anyone who trades in Texas, not anyone who's headquartered like
Speaker 18: in California. For the California bill, you just have to
Speaker 18: be trading in California.
Speaker 3: You are not headquartered in California, so people won't get
Speaker 3: around it.
Speaker 18: I don't think we can move something to Texas and
Speaker 18: stop trading in one of the largest economists in the world,
Speaker 18: that is California.
Speaker 7: Yeah, that's very true.
Speaker 3: Okay, maybe the lawyers will be busy trying to figure
Speaker 3: out a way.
Speaker 18: Maybe, so what's good?
Speaker 3: But my question is really about is really about data,
Speaker 3: and you know where that data comes from and how
Speaker 3: you measure that data in this day and age.
Speaker 18: That's right when you're looking at this type of bill,
Speaker 18: people are getting concerned that this will actually put more
Speaker 18: burden on the suppliers, of which farmers is one of
Speaker 18: the categories in this industry, of course the primary category.
Speaker 18: So this data, you don't need to invent more ways
Speaker 18: to get this data. We already, as Greta Thumberg always says,
Speaker 18: we already have all the solutions, we just need to
Speaker 18: actually implement them. So regrow gets data from fire management system,
Speaker 18: statistical surveys, but importantly satellite imagery, so remote sensing of
Speaker 18: practices tells us a lot about what's happening in the
Speaker 18: land in a non invasive way, in a very scalable
Speaker 18: and cost effective way. Then we pass it through climate models,
Speaker 18: soil carbon crop models to understand what is the impact
Speaker 18: on the environment. So we see the practices from space,
Speaker 18: from local systems, tractor tells us what's going on. We
Speaker 18: don't have to ask the farmer for absolutely everything. We
Speaker 18: have to accept that agriculture has been running on data.
Speaker 18: It's a big business, it's a big industry. It has
Speaker 18: the data. If you provide the incentives and you assure
Speaker 18: the privacy, you will be able to get the system
Speaker 18: to a level of transparency where it can all actually
Speaker 18: flow in a direction of Paris one point five degree trajectory.
Speaker 2: What companies are you working with.
Speaker 14: We're working with General Mills, Kellogg, Cargil, Folks across the
Speaker 14: supply chain from those that provide input to the farmer's
Speaker 14: trade and aggregate and process the commodities, all the way
Speaker 14: to those that you pick up their boxes off of
Speaker 14: supermarket shelves and plates.
Speaker 3: Our thanks to Anastagia Vilkova, she's co founder and CEO
Speaker 3: of the regenerative agricultural company Regrow. She noticed in studio
Speaker 3: during un Climate Week and one update the two California bills.
Speaker 3: She discussed our schedule to be signed into law this month.
Speaker 2: You're listening to Bloomberg Business Week. Coming up next from farming,
Speaker 2: define wine and dining thanks to the upcoming return of
Speaker 2: the annual New York City Wine and Food Festival.
Speaker 3: The creator of it all, founder and executive director Lee Schreger.
Speaker 3: On the other side, this is Bloomberg.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: live weekday afternoons from three to six Eastern Listen on
Speaker 1: Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App,
Speaker 1: or watch us live on YouTube.
Speaker 2: Bloomberg News Economics edtor Molly Smith back with us for
Speaker 2: our final segment. As you all know, we love, love
Speaker 2: love talking food and wine here at Bloomberg Business Week.
Speaker 2: It's always highlighted in the Bloomberg Pursuit section of the magazine.
Speaker 2: With that in mind, the Food Network New York City
Speaker 2: Wine and Food Festival about to get underway. Have you
Speaker 2: ever gone?
Speaker 6: I want to ask our next guest about it, because
Speaker 6: I have not.
Speaker 2: Shamefully, you're missing, missing I am. It's October twelfth through
Speaker 2: the fifteenth brings together who's who in the food and
Speaker 2: wine space. Chefs Danielle Boulu. We have had him on
Speaker 2: our air many many and many more from the industries.
Speaker 2: To tell us about it is Lee Schrager, founder and
Speaker 2: executive director of the New York City Wine and Food Festival,
Speaker 2: joining us on zoom in New York City.
Speaker 5: Lee, how are you good to see you ladies.
Speaker 7: How's everything doing well?
Speaker 2: Doing well? I feel like on a daily basis I
Speaker 2: could use a good meal and a great glass of wine.
Speaker 2: Having said that, you guys, bet are in what your
Speaker 2: sixteenth year tell us about it? Remind us about how
Speaker 2: it all came to be and how it's evolved, and
Speaker 2: your relationship with the Food Network and bringing this all
Speaker 2: to life.
Speaker 8: Well, sixteen years and you have not been once. That
Speaker 8: is horrible.
Speaker 2: I've been to the money Look at me. I've been
Speaker 2: to the y I've been to South Beach for that version.
Speaker 8: Okay, okay, Well that's how it all started. It started
Speaker 8: actually in South Beach about twenty four years ago. Actually,
Speaker 8: excuse me. We're going to our twenty three third year
Speaker 8: in February and South Beach.
Speaker 2: I'm curious though, why it took. Why South Beach first?
Speaker 2: And then why you kind of waited a little but
Speaker 2: before coming into New York.
Speaker 8: Well two good answers for that. A. I live in
Speaker 8: South Florida. So I started Thered because nothing is easy
Speaker 8: in New York.
Speaker 11: And I really say that again.
Speaker 17: I.
Speaker 8: Really wanted to make sure we kind of worked everything
Speaker 8: out before we went into a city that really was
Speaker 8: not forgiving in the sense, you know, they expect the best,
Speaker 8: and I wanted to deliver the best. So when I
Speaker 8: felt comfortable that we were as good as we were
Speaker 8: going to get or as good as we could get,
Speaker 8: to start moving forward and I felt comfortable, That's how
Speaker 8: it happened.
Speaker 6: So Lee asking for a friend here obviously, But if
Speaker 6: you've never been to the Food Festival, the Food and
Speaker 6: Wine Festival, sorry, what would you tell somebody a newcomer
Speaker 6: what to expect, how to prepare, how much to budget
Speaker 6: for something like this, and what kind of events should
Speaker 6: you really be zooming in on. It seems like there's
Speaker 6: just so much to choose from in so little time.
Speaker 8: So I would really if it's if you're a first timer.
Speaker 8: You know a lot of people who come for the
Speaker 8: first time want to try so many things, And although
Speaker 8: we would like to sell a lot of tickets to you,
Speaker 8: I'd rather you do less and appreciate it because it
Speaker 8: gets exhausting. If you're doing a runch next Friday with
Speaker 8: Martha Stewart and Daniel Blow at Tiffany and then you're
Speaker 8: going to go to the Grand Tasting in the daytime,
Speaker 8: then you're going to go to the Bergabash at night time,
Speaker 8: that's a lot, and I think it's too much. So
Speaker 8: I always say to somebody, pick a daytime event and
Speaker 8: one nighttime event, or a daytime event and one late
Speaker 8: night event, or a dinner event and a late night event,
Speaker 8: and really enjoy it. You know, wear comfortable shoes, drink responsibly,
Speaker 8: and you know, don't overdo it. And you know there's
Speaker 8: a lot of food. There's a lot of drink. New
Speaker 8: York City is not easy to get around with traffic,
Speaker 8: so I kind of pick where you know, even myself,
Speaker 8: I pick where I'm going and keep to one keep
Speaker 8: to an area every night, so I try to maximize
Speaker 8: the events.
Speaker 12: I can go to.
Speaker 3: That was Lee Schrager, founder and executive director of the
Speaker 3: New York City Wine and Food Festival. All net proceeds
Speaker 3: benefiting the nonprofit God's Love We Deliver and it All
Speaker 3: kicks off on Thursday. And for more details about the
Speaker 3: menus and the celebs that will be part of this
Speaker 3: iconic event, just head on over to our podcast feed.
Speaker 2: And that wraps up the weekend edition of Bloomberg Business
Speaker 2: Week from Bloomberg Radio. Thank you so much for joining us,
Speaker 2: and a big thanks to Simone Foxman and Molly Smith
Speaker 2: of Bloomberg for their help over this past week.
Speaker 1: Yeah.
Speaker 3: Really grateful to everyone on the team for jumping in
Speaker 3: when I'm certainly not available. Be sure to tune into
Speaker 3: Bloomberg Business Week Monday through Friday starting at three pm
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Speaker 2: You can also watch our daily broadcast on YouTube just
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Speaker 3: Find our Bloomberg Business Week podcast at Bloomberg dot com, Apple,
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Speaker 3: com and always on the Bloomberg Terminal. I'm Tim Steneveek
Speaker 3: and I'm Carol Masser. Have a good and safe weekend.
Speaker 2: Stay with us. Today's top store and global business headlines
Speaker 2: are coming up right now.
Speaker 1: This is the Bloomberg Business Week Podcast, available on Apple, Spotify,
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