WEBVTT - Bloomberg Businessweek Weekend - December 9th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 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 --> 0:00:21.320 Stinovic on Bloomberg Radio. Hi everyone, Welcome to the weekend 0:00:21.400 --> 0:00:24.520 edition of Bloomberg Business Week. Difficult week for markets with 0:00:24.600 --> 0:00:27.880 Treasury signaling the growing concern about a recession next year 0:00:28.080 --> 0:00:31.520 amid tightening monetary policy, and of course the Fed's final 0:00:31.600 --> 0:00:35.839 rate decision of two. It is scheduled for this coming Wednesday. Thankfully, 0:00:35.840 --> 0:00:37.920 this week's issue of the magazines at least a bit 0:00:37.960 --> 0:00:40.960 of good news for readers and listeners. Yeah, okay, you're happy. 0:00:41.640 --> 0:00:44.040 Hold about good news. It's the annual Good Business Issue. 0:00:44.360 --> 0:00:47.600 It features subjects from tackling inequality to saving the planet 0:00:47.840 --> 0:00:51.159 with more sustainable practices. Take some optimism. Also in this 0:00:51.200 --> 0:00:53.760 week's issue, air Boss is making plans to take the 0:00:53.840 --> 0:00:57.520 lead from Boeing in the commercial aerospace duopoly. Plus, we'll 0:00:57.520 --> 0:01:00.080 hear from a series of executives in the travel and 0:01:00.080 --> 0:01:04.319 transportation industries, including both the CEO and CFL of Royal 0:01:04.319 --> 0:01:07.200 Caribbean as well as the president at Audi of America. 0:01:07.520 --> 0:01:09.320 We begin with a couple of stories in the Good 0:01:09.319 --> 0:01:11.480 Business issue. This one among the most read on the 0:01:11.480 --> 0:01:15.560 Bloomberg this past week, how renowned Yale professor Jeffrey Sonnenfeld 0:01:15.600 --> 0:01:19.080 became an enemy of the Russian state simply by making 0:01:19.080 --> 0:01:22.080 a list. With more, we turned to Bloomberg Business Week 0:01:22.080 --> 0:01:26.360 contributor Rob Mandelbaum and senior editor Dimitri Cassedis, who starts 0:01:26.400 --> 0:01:29.520 us off with who is Jeffrey Sonenfeld. He has the 0:01:29.560 --> 0:01:33.160 ear of many CEOs around the world and have been 0:01:33.240 --> 0:01:36.440 contacted if I'm not mistaken by some folks saying, you know, 0:01:36.920 --> 0:01:38.759 this is something we need to look at, is which 0:01:38.840 --> 0:01:41.560 what what companies are pulling out of Russia and what 0:01:41.600 --> 0:01:44.840 companies are staying behind and how do we how will 0:01:44.880 --> 0:01:49.360 we make these distinctions? Right after Russia invaded Ukraine. Um 0:01:49.640 --> 0:01:52.000 so he got a little bit of play about this, 0:01:52.040 --> 0:01:55.760 But as we expanded our look at business school stories, 0:01:56.360 --> 0:01:59.760 he became somebody that I was focused on, and I thought, well, 0:02:00.320 --> 0:02:03.400 I'm curious to know what what jeff sannon Felt was 0:02:03.480 --> 0:02:06.120 up to. And I saw little snippets about some of 0:02:06.160 --> 0:02:09.120 this work, but nothing really that delve deeply into how 0:02:09.200 --> 0:02:12.200 this all became such a big list and became such 0:02:12.240 --> 0:02:16.160 a powerful list, And that is how he got onto 0:02:16.160 --> 0:02:19.359 my radar with this. And then I contacted Rob, who 0:02:19.360 --> 0:02:22.760 has been a regular contributor to Business Week, and asked 0:02:22.800 --> 0:02:25.119 him that he would be interested in taking a closer look. 0:02:25.160 --> 0:02:27.440 And I think that from the first minute, we'll let 0:02:27.520 --> 0:02:29.880 Rob answer this, but I think he was intrigued given 0:02:29.919 --> 0:02:33.240 that there were certain aspects of the story that had 0:02:33.280 --> 0:02:36.200 not been covered at all out there and that really 0:02:36.440 --> 0:02:39.560 were very meaningful to again, like what is it that 0:02:39.639 --> 0:02:42.520 this list is really? What kind of power does it? Wiel? 0:02:42.720 --> 0:02:46.239 So I will let Rob talk about that. The list 0:02:46.360 --> 0:02:51.320 itself was actually something that came from his sort of 0:02:51.560 --> 0:02:54.520 correspondence with c e O s. It wasn't something that 0:02:54.560 --> 0:02:57.359 he started to do. It was something that they asked 0:02:57.440 --> 0:03:01.280 him to do because the were CEOs who had pulled 0:03:01.280 --> 0:03:05.360 out of Russia and they felt like the business media 0:03:06.120 --> 0:03:09.919 was conflating what they were doing, actually pulling out with 0:03:10.360 --> 0:03:12.760 you know, other companies that were sort of you know, 0:03:12.880 --> 0:03:16.040 sending thoughts and prayers to the Ukrainian people, but you know, 0:03:16.160 --> 0:03:18.640 counting their Russian roubles and that sort of thing and 0:03:18.639 --> 0:03:20.720 and so that's where the list started for him, was 0:03:20.800 --> 0:03:22.920 just sort of trying to figure out who was actually 0:03:23.000 --> 0:03:26.079 leaving Russia and who was sort of making noise like 0:03:26.120 --> 0:03:29.040 they were leaving Russia but not really. It's pretty incredible 0:03:29.040 --> 0:03:31.839 because you know, sander Felt is certainly Professor soner Felt 0:03:31.880 --> 0:03:34.519 was certainly associated with the list as you write, But 0:03:34.560 --> 0:03:36.320 at the same time he's got a research assistant and 0:03:36.360 --> 0:03:40.240 then all of the volunteers who ended up helping with 0:03:40.280 --> 0:03:42.640 this list, So who actually worked on it and work 0:03:42.760 --> 0:03:45.560 is working on it? Rob There were at one point 0:03:46.040 --> 0:03:49.080 up to forty two I think other people working on it, 0:03:49.120 --> 0:03:53.040 and many of them were undergrads at Yale and other schools. 0:03:53.080 --> 0:03:56.120 They were people like a guy I talked to named 0:03:56.360 --> 0:04:00.920 Frank Sokovowski, and he was a freshman at the time. 0:04:00.920 --> 0:04:04.280 He was studying economics. He had actually heard about some 0:04:04.360 --> 0:04:07.440 of Sonenfeld's earlier work sort of organizing c e O 0:04:07.640 --> 0:04:11.720 s after election to sort of protest, you know, the 0:04:11.800 --> 0:04:14.360 overturning of the election, and he had heard about that 0:04:14.440 --> 0:04:16.800 even before he got to New Haven and resolved to 0:04:16.839 --> 0:04:19.920 work with Snenfeld and it find it happened that this 0:04:20.000 --> 0:04:24.240 was the project and you know he's from Poland, uh 0:04:24.320 --> 0:04:28.200 and so very close to Ukraine. He ended up getting 0:04:28.240 --> 0:04:31.760 so involved with it that he reschedules his classes, you know, 0:04:31.800 --> 0:04:33.800 for the spring, some of them for the summer, so 0:04:33.839 --> 0:04:35.599 he could work on the list in the spring. And 0:04:35.680 --> 0:04:38.280 he recruited a bunch of other students at Yale and 0:04:38.279 --> 0:04:40.880 at other schools to work on the list for him. 0:04:40.920 --> 0:04:43.839 And a lot of those people were Poles who spoke 0:04:43.880 --> 0:04:48.640 not just Polish, but Russian, and that gave this team 0:04:48.640 --> 0:04:50.800 and you know, an inside edge, you know, able to 0:04:50.920 --> 0:04:54.479 analyze Russian material that doesn't normally get translated. So how 0:04:54.480 --> 0:04:58.839 did he ultimately then become an enemy of the Russian 0:04:59.000 --> 0:05:01.760 state as a result. It's just where they so ticked 0:05:01.800 --> 0:05:04.320 off that he was accumulating this list. Why he well, 0:05:04.520 --> 0:05:06.480 he had started with the list, but then he started 0:05:06.520 --> 0:05:10.120 doing some research and he had published research i think 0:05:10.120 --> 0:05:13.559 in late May indicating you know that if you were 0:05:13.880 --> 0:05:17.720 a company pulling out of Russia, you saw a benefit 0:05:17.760 --> 0:05:20.640 to your stock price or you paid less for debt, 0:05:20.680 --> 0:05:23.640 like there was a market reward for pulling out of 0:05:23.720 --> 0:05:27.360 Russia that you could sort of tie to the announcement 0:05:27.400 --> 0:05:30.160 that you were leaving Russia and he ended up on 0:05:30.200 --> 0:05:33.479 a stop list. Uh, this was in June of people 0:05:33.480 --> 0:05:36.040 who weren't allowed to go to Russia. I don't think 0:05:36.080 --> 0:05:37.880 that bothered him too much, you know, I don't think 0:05:37.880 --> 0:05:40.160 he was planning to go to Russia any type of suit. 0:05:40.480 --> 0:05:42.880 They're about a thousand people on that list now. At 0:05:42.880 --> 0:05:45.440 the time there were far fewer. Bloomberg Business Week contributor 0:05:45.520 --> 0:05:48.560 Rob Mandelbaum and senior editor for the magazine Demitri Cassoni's 0:05:48.640 --> 0:05:51.320 with us. There the full story online on the terminal 0:05:51.440 --> 0:05:54.039 and in the Good Business issue. It's out on newsstands now. 0:05:54.080 --> 0:05:56.160 All right, Tim, let's move to another one of this 0:05:56.240 --> 0:05:59.000 week's features. It's all about a one point one billion 0:05:59.000 --> 0:06:03.160 dollars startup net working group that is only for women executives. 0:06:03.320 --> 0:06:05.600 It's called Chief, and it's really a mechanism for women 0:06:05.640 --> 0:06:08.240 who are already on the other side of that glass 0:06:08.240 --> 0:06:11.440 ceiling to collaborate. It's got a lot of people listen 0:06:11.480 --> 0:06:14.880 to this. Chief has roughly twenty members Carol in sixty 0:06:15.480 --> 0:06:18.040 women on its wait list. That's thanks in large part 0:06:18.120 --> 0:06:20.960 to a COVID related pivot away from in person meetings. 0:06:21.240 --> 0:06:24.600 Bloomberg News Managing Diversity reporter Jeff Green has the details. 0:06:25.200 --> 0:06:27.280 They started kind of playing around with the model and 0:06:27.320 --> 0:06:29.919 decided ultimately to just make it a national kind of 0:06:30.000 --> 0:06:33.560 virtual model UM and that made a huge difference for 0:06:33.640 --> 0:06:37.159 how the participation could could happen. And I mean the 0:06:37.279 --> 0:06:40.000 key thing here is that, in addition to being a 0:06:40.120 --> 0:06:42.560 large organization for a lot of people, it's focused on 0:06:42.720 --> 0:06:45.640 very small groups called core groups that have about ten members. 0:06:45.640 --> 0:06:47.800 And that's why you have sixty people wanting to get 0:06:47.800 --> 0:06:49.800 in because they want to be part of these little groups, 0:06:50.000 --> 0:06:52.240 not necessarily the big group. I mean, the big group 0:06:52.279 --> 0:06:55.000 I'm sure is attractive to but everything I hear and 0:06:55.040 --> 0:06:56.960 I've spent some time with some of the members is 0:06:57.000 --> 0:06:59.000 this little group well, and I want to get into 0:06:59.040 --> 0:07:00.479 that because Jeff, I feel like when you're at a 0:07:00.480 --> 0:07:03.360 big conference and then you're invited to a special lunch 0:07:03.440 --> 0:07:06.200 or a breakout right where smaller members where you actually 0:07:06.279 --> 0:07:09.600 face to face time with some really prominent people. One 0:07:09.600 --> 0:07:12.440 thing I want to ask you, though, is I feel like, Jeff, 0:07:12.480 --> 0:07:16.240 there are so many women only professional networks out there. 0:07:16.520 --> 0:07:19.960 It is that core group that makes this a little 0:07:20.000 --> 0:07:23.880 bit different, as well as being very senior people. Yeah, 0:07:23.880 --> 0:07:26.680 and it's not just random. I mean, these are curated 0:07:26.800 --> 0:07:29.320 groups of ten people that are all around the same level. 0:07:29.320 --> 0:07:32.280 This is not a mentor mentee relationship. This is meant 0:07:32.320 --> 0:07:34.640 to be. These are people who will benefit as if 0:07:34.680 --> 0:07:37.760 they were all men on a board together in the 0:07:37.800 --> 0:07:40.600 same sort of way women in a boardroom, except coming 0:07:40.640 --> 0:07:42.800 from a whole bunch of different companies. And that is 0:07:42.840 --> 0:07:46.000 the key here is that it's it's curated. It's also moderated. 0:07:46.040 --> 0:07:49.320 There's a professional um who is there to kind of 0:07:49.400 --> 0:07:52.720 keep the conversation focused and help people to have sort 0:07:52.760 --> 0:07:55.440 of you know, topics to talk about and to keep 0:07:55.480 --> 0:07:59.840 things moving along. How did she not only survive the 0:08:00.080 --> 0:08:03.120 endemic that's thrived during it. Well, I think part of 0:08:03.120 --> 0:08:05.280 the key was going virtual. I mean the idea that 0:08:05.640 --> 0:08:07.560 the people who I talked to in fact, who were 0:08:07.560 --> 0:08:09.920 in a I spent some time with three members of 0:08:09.920 --> 0:08:12.200 a core group over almost a year. We just kind 0:08:12.200 --> 0:08:15.920 of talked from time to time and while we were 0:08:15.960 --> 0:08:18.400 you know, they had never met I mean one of 0:08:18.440 --> 0:08:20.400 them in Philadelphia, two of them are in New York, 0:08:20.440 --> 0:08:23.440 but they had never met physically. They only meet on 0:08:23.480 --> 0:08:25.880 this call, and I mean from any hour of the night, 0:08:25.920 --> 0:08:29.200 from any location. One member kind of left a dinner 0:08:29.240 --> 0:08:32.600 for her daughter's softball banquet, another would do it from Switzerland, 0:08:32.600 --> 0:08:34.920 and me, this was like a very important way to 0:08:35.000 --> 0:08:38.040 kind of focus on very important topics. So for those 0:08:38.080 --> 0:08:39.679 who are involved in it, you know, what do they 0:08:39.679 --> 0:08:42.280 feel like they're getting out of it? Well, I mean, 0:08:42.400 --> 0:08:44.400 for one, one of the people who we kind of featured, 0:08:44.440 --> 0:08:47.440 she's a CFO of Novocure. There are no women other 0:08:47.480 --> 0:08:49.240 than her in the C suite, so she gets to 0:08:49.280 --> 0:08:52.160 be kind of in her own sort of specialized C 0:08:52.320 --> 0:08:54.000 suite with a whole bunch of other people who are 0:08:54.040 --> 0:08:55.960 at the same level and can talk about how what 0:08:56.000 --> 0:08:57.880 they bring to the table and how they would react 0:08:57.880 --> 0:09:00.600 to a specific situation. And they all so we'll have 0:09:00.720 --> 0:09:04.200 certain activities that they kind of bring in as conversation 0:09:04.320 --> 0:09:06.880 starters that give them something to kind of like different 0:09:06.920 --> 0:09:09.920 ideas to test among themselves. Carol and I were at 0:09:09.920 --> 0:09:13.080 Stanford Graduate School of Business interviewed Mary Barra, and one 0:09:13.120 --> 0:09:15.360 of the questions that we asked her was, you know, 0:09:15.440 --> 0:09:18.439 she's the only female executive of the Big three automakers, 0:09:18.960 --> 0:09:22.079 And we asked for a question in the context of okay, 0:09:22.160 --> 0:09:25.080 business school has gotten more diverse in terms of gender, 0:09:25.120 --> 0:09:29.040 but we haven't seen that transit. Half men half women 0:09:29.040 --> 0:09:32.120 getting their nbas, but we haven't seen that translate. So, Carol, 0:09:32.120 --> 0:09:33.640 I thought you asked a great question, which was, you know, 0:09:33.679 --> 0:09:35.680 what's the right conversation that we need to be having 0:09:35.880 --> 0:09:38.160 about this? And and my question for you, Jeff is 0:09:38.160 --> 0:09:40.559 is kind of similar to this. When do we start 0:09:40.600 --> 0:09:45.760 to see the organization that's happening sort of outside of 0:09:45.760 --> 0:09:50.320 the c suite here really translate into numbers that show 0:09:50.360 --> 0:09:52.600 that women are actually getting a foothold in some of 0:09:52.600 --> 0:09:55.520 these biggest companies. Yeah. Well, part of the problem, and 0:09:55.559 --> 0:09:57.760 I've done some reporting on this, is the NBA's are 0:09:57.800 --> 0:10:00.200 not actually where they should be based on or the 0:10:00.200 --> 0:10:03.040 rest of the college education system. Is women still lag 0:10:03.080 --> 0:10:05.760 in the NBA's. It's only just recently we're starting to 0:10:05.800 --> 0:10:08.800 see parody. I think in the Business Week measure there 0:10:08.800 --> 0:10:12.040 were six schools that had parity or better. So that's 0:10:12.040 --> 0:10:13.880 still that is part of the problem is it's kind 0:10:13.920 --> 0:10:16.040 of built into the system. But I mean that is 0:10:16.080 --> 0:10:18.760 the question. It's like, Okay, what's coming and when once 0:10:18.800 --> 0:10:21.160 you start to reach parody at the schools, how are 0:10:21.160 --> 0:10:23.120 you going to work that into the c suite? That. 0:10:23.280 --> 0:10:25.480 You know, people say it's a pipeline problem or whatever, 0:10:25.520 --> 0:10:28.439 but it's it's a prism problem. And I think that's 0:10:28.480 --> 0:10:31.480 what Chief is trying to basically solve, is finding all 0:10:31.520 --> 0:10:33.600 these people and putting them together so they can better 0:10:33.679 --> 0:10:36.319 leverage these opportunities. I mean, you really need to know 0:10:36.400 --> 0:10:38.120 that everyone is there. You need a bit of a 0:10:38.160 --> 0:10:40.600 different rolodex. And that's what Chief is is. Basically, it's 0:10:40.679 --> 0:10:44.520 really big, diverse rolodex for women trying to figure out 0:10:44.520 --> 0:10:47.320 how to break into this system. That was Bloomberg News 0:10:47.360 --> 0:10:50.120 Managing Diversity reporter Jeff Green. Coming up, we touch on 0:10:50.120 --> 0:10:52.800 the end of an era for American industrial icon Boeing 0:10:53.200 --> 0:10:56.680 and explore plans by its European rival Airbus to take 0:10:56.679 --> 0:10:59.880 the global lead in commercial aviation. You're listening to Bloomberg 0:10:59.920 --> 0:11:12.280 this week. This is Bloomberg. This is Bloomberg Business Week 0:11:12.400 --> 0:11:16.200 with Carol Messer and Bloomberg Quick Takes Tim Stenovik from 0:11:16.280 --> 0:11:21.040 Bloomberg Radio. Among the great business rivalries of our time 0:11:21.200 --> 0:11:24.280 is the duopoli of Airbus versus Boeing. Tim, you know 0:11:24.400 --> 0:11:27.440 this so well. You love planes. Those two essentially own 0:11:27.480 --> 0:11:30.760 the commercial aerospace industry. Each planemaker has a lineup of 0:11:30.760 --> 0:11:33.240 products that compete with one another. Airbus has answered to 0:11:33.280 --> 0:11:36.400 Bowing seven thirty seven family, for example, is that are twenty? 0:11:36.679 --> 0:11:38.640 Then for the A three fifty, Bowing has got the seven. 0:11:39.440 --> 0:11:42.520 But that's about to change. Boeing recently revealed it won't 0:11:42.559 --> 0:11:45.000 design a new aircraft this decade, leaving it without a 0:11:45.000 --> 0:11:47.920 competitor to Airbus. A smaller A to twenty, and that 0:11:48.040 --> 0:11:50.920 narrow body design could be the next go to model 0:11:50.960 --> 0:11:54.920 in air travel. Bloomberg News aerospace reporter Julie Johnson writes 0:11:54.960 --> 0:11:57.120 about it in the business section of this week's issue 0:11:57.200 --> 0:12:00.440 of the magazine, What's the Fantastic Plane? I I've I've 0:12:00.480 --> 0:12:03.240 flown on it a couple of times as well, and 0:12:03.440 --> 0:12:05.360 I'm a big fan. There's a window in one of 0:12:05.360 --> 0:12:10.760 the bathrooms that's like the one of the big highlights, right, yeah, 0:12:10.800 --> 0:12:15.160 I guess. So I'm just gonna warn you, Julie um 0:12:15.360 --> 0:12:17.719 Tim is really really into play. I know she knows 0:12:17.760 --> 0:12:19.920 I bother her all the time with like non work stuff, 0:12:20.120 --> 0:12:22.120 but we're picking flights to go places. He's like, well, 0:12:22.120 --> 0:12:24.240 you know what kind of plane that is? Anyway, So 0:12:24.280 --> 0:12:26.240 go ahead, tell us about your story and what you 0:12:26.320 --> 0:12:29.040 what you dug into. And by the way, Tim, I 0:12:29.040 --> 0:12:34.280 approve of this behavior, thank you. Yeah. So so anyway, 0:12:34.360 --> 0:12:39.480 the product strategy gamesmanship is really fascinating between these two 0:12:39.600 --> 0:12:43.240 and as you hinted at, they've had you know, pretty 0:12:43.320 --> 0:12:48.240 much a fifty fifty do Appoli planemaking for years decades, 0:12:49.000 --> 0:12:52.880 and that started to change recently. Air Bus has taken 0:12:53.000 --> 0:12:57.320 control of the most important segment of the market, which 0:12:57.360 --> 0:13:02.120 is narrow bodies, with a plane that has called the 0:13:02.400 --> 0:13:06.640 three Neo that has just been a runaway sales success. 0:13:06.679 --> 0:13:09.320 So air Bus is doing really well at the top 0:13:09.360 --> 0:13:13.600 of the market. And weeks after Boeing CEO basically said, look, 0:13:13.640 --> 0:13:16.800 we're just not doing a plane this decade, air bus 0:13:16.840 --> 0:13:22.319 is CEO told Bloomberg, Hey, well, funny enough, we are 0:13:22.360 --> 0:13:26.840 looking really closely at um a new member of the 0:13:27.040 --> 0:13:29.400 twenty family that would go right at the heart of 0:13:29.480 --> 0:13:33.680 Boeing's product lineup. Now just a little bit of history here, 0:13:33.720 --> 0:13:36.760 but air Bus got the A to twenty at a 0:13:36.880 --> 0:13:39.240 fire sale. I mean I think it was a dollar 0:13:40.040 --> 0:13:44.880 or euro, I forget the currency from Bombardier. Um just 0:13:45.080 --> 0:13:48.680 it was really it was a pittance back in total 0:13:48.720 --> 0:13:51.920 fire sale. And when they picked up those first to 0:13:52.120 --> 0:13:57.400 A to twenty models. They also inherited really detail, detailed 0:13:57.679 --> 0:14:02.400 engineering designs for a third and largest member of the 0:14:02.440 --> 0:14:07.679 family called There and so that's the plane that air 0:14:07.760 --> 0:14:12.120 Bus is now talking up publicly. First of all, what 0:14:12.160 --> 0:14:13.600 does it mean for Boeing if they don't have a 0:14:13.640 --> 0:14:16.640 comeback against it? So there are a couple of things 0:14:16.679 --> 0:14:20.640 going on, and basically this is a classic pincer move. 0:14:21.200 --> 0:14:24.520 Airbus has the top end of the most important market 0:14:25.160 --> 0:14:29.440 in aerospace narrow bodies with THEE and they would be 0:14:29.480 --> 0:14:33.360 coming back with a smaller plane that's targeted right at 0:14:33.440 --> 0:14:38.520 Boeing's best seller, which is the Max eight. So um, 0:14:38.920 --> 0:14:42.360 So Boeing doesn't have a comeback, that means, you know, 0:14:42.440 --> 0:14:45.000 they continue to bleed even more market share to air 0:14:45.040 --> 0:14:48.720 Bus and it's not good. Julie, you mentioned the Max eight, 0:14:48.800 --> 0:14:51.000 So we got to go in on the seven seven 0:14:51.080 --> 0:14:53.520 Max and all the problems that Boeing has had. How 0:14:53.600 --> 0:14:57.840 much of Boeing's history of mismanagement with regard to the 0:14:57.880 --> 0:15:00.560 seven thirty seven Max and the way of the two 0:15:00.600 --> 0:15:03.720 crashes that killed hundreds of people a few years ago 0:15:03.760 --> 0:15:06.120 in the twenty month grounding of the plane, how much 0:15:06.120 --> 0:15:07.960 of that has to do with Boeing not coming up 0:15:08.000 --> 0:15:13.240 with a competitor to this. Well, Boeing's got fifty seven 0:15:13.240 --> 0:15:16.120 billion in debt right now and that's a result of 0:15:16.720 --> 0:15:20.120 COVID and the Max crisis. They had just stopped building 0:15:20.160 --> 0:15:24.760 the Max um for a few months, but they were 0:15:24.840 --> 0:15:26.880 knocked out of sales for a long time. So anyway, 0:15:26.960 --> 0:15:30.240 the financial damage is going to be with Boeing for 0:15:30.360 --> 0:15:33.280 most of this decade, and that's a really big factor 0:15:33.360 --> 0:15:36.360 as to why they're you know, they're just not in 0:15:36.400 --> 0:15:40.160 a position right now to do do a new plane. Um. 0:15:40.240 --> 0:15:44.320 But the Max eight has done really, really well in 0:15:44.360 --> 0:15:49.640 the market and I believe it's outsold the A three two, 0:15:49.840 --> 0:15:55.280 so that's the comparably sized Airbus model. So it's it's 0:15:55.360 --> 0:15:59.120 definitely a success in the marketplace. And right now Boeing's 0:15:59.120 --> 0:16:02.800 finances are writing on that plane. And the story that 0:16:02.840 --> 0:16:06.880 you guys report out says that that Max eight that 0:16:07.040 --> 0:16:10.480 sales restart um handed Bowing a victory over Airbus last 0:16:10.520 --> 0:16:13.320 year the competition for the most aircraft orders. So, Julie, 0:16:13.640 --> 0:16:17.000 the back and forth, I feel like, you know, anybody 0:16:17.000 --> 0:16:21.120 who's been in this industry of covering business news business stories. 0:16:21.440 --> 0:16:23.880 You know, from year to year, it's like Boeing got 0:16:23.920 --> 0:16:26.680 this order, you know, Airbus got this order, and kind 0:16:26.680 --> 0:16:28.960 of the back and forth. But I do wonder is 0:16:29.000 --> 0:16:32.400 it potentially setting up for you know, Airbus to have 0:16:32.480 --> 0:16:35.280 a longer term advantage here or how do you see it? 0:16:36.000 --> 0:16:40.040 You know, everything goes Airbus is way the They will 0:16:40.680 --> 0:16:44.520 dominate the market, not just this decade, but into the 0:16:44.560 --> 0:16:47.600 next decade as well. And so I think some people 0:16:47.600 --> 0:16:51.160 are really worried that, you know, Boeing might be facing 0:16:51.200 --> 0:16:55.520 sort of a slow slide into mediocrity. But then I've 0:16:55.560 --> 0:16:58.720 got to just throw out just a grain of salt here, 0:16:58.800 --> 0:17:01.200 because none of this is going to happen anytime soon. 0:17:01.400 --> 0:17:04.480 Air Boss has got some huge issues of its own, 0:17:04.560 --> 0:17:07.280 and you know, its production system is a mass right now, 0:17:08.480 --> 0:17:10.879 so they're not in a position to take on a 0:17:10.880 --> 0:17:16.159 new plane. And if they pursue there, they're going to 0:17:16.320 --> 0:17:20.199 cannibalize one of their most profitable bowl models, which is 0:17:20.240 --> 0:17:25.600 the Neo. So it's risky for them as well. That 0:17:25.640 --> 0:17:27.960 was Bloomberg News aerospace reporter Julie Johnson. I have to 0:17:27.960 --> 0:17:29.480 say we had so much fun with her. I mean, 0:17:29.560 --> 0:17:32.520 you guys, you I know are so into planes in 0:17:32.560 --> 0:17:34.760 a big way. She obviously is too well. Speaking of that, 0:17:34.800 --> 0:17:37.359 it was a huge weekend for planemakers. Tuesday night in 0:17:37.440 --> 0:17:41.680 ever Washington, the last seven ever assembled left Boeing's factory. 0:17:42.080 --> 0:17:44.040 The freighter is going to be used by the cargo 0:17:44.119 --> 0:17:47.000 carrier Atlas. There we did a feature over at Bloomberg 0:17:47.040 --> 0:17:49.320 Quick Take about the jets more than fifty year history 0:17:49.600 --> 0:17:52.199 and the way the airplane changed air travel forever. You 0:17:52.240 --> 0:17:54.520 can see that on our Twitter feed just use the 0:17:54.560 --> 0:17:56.760 handle at quick Take. I think about so many movies 0:17:56.840 --> 0:17:58.920 right that they use that plane, like to show people 0:17:58.960 --> 0:18:01.560 going up up this dares right to the bar or whatever, 0:18:01.840 --> 0:18:03.760 and it's not going anywhere. I mean, it's hard to 0:18:03.800 --> 0:18:06.240 find a passenger airline. They're none in the US that 0:18:06.320 --> 0:18:08.800 actually fly it. But you know it's going to be 0:18:08.840 --> 0:18:11.119 used as cargo plans for years to come. All right, 0:18:11.200 --> 0:18:13.800 good to know. Still ahead on Bloomberg Business Week, from 0:18:13.840 --> 0:18:16.880 airplanes to automobiles, we'll hear from the CEO of car 0:18:16.920 --> 0:18:19.920 Parts dot Com and the president of Audi of America. 0:18:20.320 --> 0:18:23.520 As the paradigm in the global car business continues to shift, 0:18:23.920 --> 0:18:26.480 we continue to see more and more consumers wanted to 0:18:26.520 --> 0:18:29.600 go into electrification, and that's something where we well prepared. 0:18:29.920 --> 0:18:33.640 We're gonna invest also going for nineteen billion euros over 0:18:33.680 --> 0:18:35.959 the next few years to make sure that there's a 0:18:35.960 --> 0:18:39.280 car electric car for every consumer out there. This is 0:18:39.280 --> 0:18:48.680 Bloomberg Broadcasting from the financial capital of the world, Bloomberg 0:18:48.720 --> 0:18:52.200 eleven Rio in New York to Washington, d C. Bloomberg 0:18:53.160 --> 0:18:56.400 to Boston, Bloomberg one O six one does San Francisco, 0:18:56.480 --> 0:19:00.440 Bloomberg nine sixty to the country Sirius xm jem one team, 0:19:00.560 --> 0:19:04.040 and around the globe the Bloomberg Business and Bloomberg Radio 0:19:04.200 --> 0:19:08.280 dot Com. This is Bloomberg Business Week with Carol Messer 0:19:08.520 --> 0:19:14.960 and Bloomberg Quick Takes Tim Stinovian on Bloomberg Radio. All right, so, 0:19:15.000 --> 0:19:17.200 in our last segment we spoke about the changing competitive 0:19:17.280 --> 0:19:20.120 landscape in the skies between bog and Airbus. We now 0:19:20.160 --> 0:19:22.240 turn our attention to the changing rules of the road, 0:19:22.480 --> 0:19:25.679 the difference. There are a lot more players involved. Pretty 0:19:25.720 --> 0:19:29.400 much every automaker, from established companies to startups, is following 0:19:29.440 --> 0:19:33.200 Tesla down the path of electrification. Bloomberg New Senior Markets 0:19:33.200 --> 0:19:36.160 reporter Katie Gratfield and I recently spoke with Daniel Weissland. 0:19:36.200 --> 0:19:38.640 He's the president of AUDI of America, and he says 0:19:38.640 --> 0:19:41.280 the luxury brand is more than ready for the transition. 0:19:41.760 --> 0:19:43.879 Over the last few years, we have learned how to 0:19:43.960 --> 0:19:47.679 manage COVID, We have learned how to manage supplied challenges, 0:19:48.080 --> 0:19:52.320 and we also manage economical challenges. UM. And as what 0:19:52.760 --> 0:19:54.920 we can see as for AUDI right now, we see 0:19:54.920 --> 0:19:57.119 a high demand. Actually our demand is high us in 0:19:57.200 --> 0:20:01.040 the supply and especially for electric vehicles or consumers want 0:20:01.080 --> 0:20:05.240 to buy more and more electric vehicles. Well, that's what 0:20:05.320 --> 0:20:08.800 I want to dig into this sort of shift to EVS. 0:20:08.880 --> 0:20:11.440 What I was going to ask is with the inflation 0:20:11.600 --> 0:20:15.280 that we've seen throughout the economy, hottest inflation in a generation, 0:20:15.640 --> 0:20:18.320 do you think that that has it all slowed this 0:20:18.480 --> 0:20:20.959 timeline down when you think about you know, the average 0:20:20.960 --> 0:20:27.320 American driver adopting EVS. Actually, I think it's is accelerating 0:20:27.400 --> 0:20:30.320 the way towards electrification. That's what we see at AUDI 0:20:30.640 --> 0:20:33.080 over the last few months. Uh, you know, with the 0:20:33.119 --> 0:20:35.560 introduction of the que for Eatron and the Audi que 0:20:35.640 --> 0:20:37.880 for each one sport back. Now we have the largest 0:20:37.920 --> 0:20:40.840 but if any auto maker here in the industry. UM 0:20:40.920 --> 0:20:43.600 and the last months we had a seventy increase with 0:20:43.640 --> 0:20:47.399 our better electric vehicles last squart it was so again 0:20:47.440 --> 0:20:50.040 we continue to see more and more consumers wanted to 0:20:50.040 --> 0:20:53.160 go into electrification, and that's something where we well prepared. 0:20:53.440 --> 0:20:57.160 We're gonna invest also going forward, nineteen billion euros over 0:20:57.200 --> 0:20:59.439 the next few years to make sure that there's a 0:20:59.520 --> 0:21:01.840 car like trick Car for every consumer out of there. 0:21:02.320 --> 0:21:05.640 Hey Daniel, what is the internal data tell you about 0:21:05.840 --> 0:21:08.199 your portion of vehicles that you sell will be evs 0:21:08.240 --> 0:21:12.760 by the year, Because according to Bloomberg any f only 0:21:13.040 --> 0:21:15.320 just over half of passenger cars sold in the US 0:21:15.400 --> 0:21:18.879 will be evs and that's by the year. And I 0:21:18.880 --> 0:21:20.640 don't know about you, but that seems kind of slow 0:21:20.680 --> 0:21:24.000 to me. Yeah, I expect that it's going to happen 0:21:24.080 --> 0:21:27.040 the most much fast, especially in the premium segment. For 0:21:27.119 --> 0:21:29.800 Audi predict already in the next five years the tipping 0:21:29.840 --> 0:21:33.400