Speaker 1: This is Bloomberg Business Week Inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happened. Sloomberg
Speaker 1: Business Week with Carol Messier and Bloomberg Quick Takes. Tim
Speaker 1: Stinovic on Bloomberg Radio. Hi everyone, Welcome to the weekend
Speaker 1: edition of Bloomberg Business Week. Difficult week for markets with
Speaker 1: Treasury signaling the growing concern about a recession next year
Speaker 1: amid tightening monetary policy, and of course the Fed's final
Speaker 1: rate decision of two. It is scheduled for this coming Wednesday. Thankfully,
Speaker 1: this week's issue of the magazines at least a bit
Speaker 1: of good news for readers and listeners. Yeah, okay, you're happy.
Speaker 1: Hold about good news. It's the annual Good Business Issue.
Speaker 1: It features subjects from tackling inequality to saving the planet
Speaker 1: with more sustainable practices. Take some optimism. Also in this
Speaker 1: week's issue, air Boss is making plans to take the
Speaker 1: lead from Boeing in the commercial aerospace duopoly. Plus, we'll
Speaker 1: hear from a series of executives in the travel and
Speaker 1: transportation industries, including both the CEO and CFL of Royal
Speaker 1: Caribbean as well as the president at Audi of America.
Speaker 1: We begin with a couple of stories in the Good
Speaker 1: Business issue. This one among the most read on the
Speaker 1: Bloomberg this past week, how renowned Yale professor Jeffrey Sonnenfeld
Speaker 1: became an enemy of the Russian state simply by making
Speaker 1: a list. With more, we turned to Bloomberg Business Week
Speaker 1: contributor Rob Mandelbaum and senior editor Dimitri Cassedis, who starts
Speaker 1: us off with who is Jeffrey Sonenfeld. He has the
Speaker 1: ear of many CEOs around the world and have been
Speaker 1: contacted if I'm not mistaken by some folks saying, you know,
Speaker 1: this is something we need to look at, is which
Speaker 1: what what companies are pulling out of Russia and what
Speaker 1: companies are staying behind and how do we how will
Speaker 1: we make these distinctions? Right after Russia invaded Ukraine. Um
Speaker 1: so he got a little bit of play about this,
Speaker 1: But as we expanded our look at business school stories,
Speaker 1: he became somebody that I was focused on, and I thought, well,
Speaker 1: I'm curious to know what what jeff sannon Felt was
Speaker 1: up to. And I saw little snippets about some of
Speaker 1: this work, but nothing really that delve deeply into how
Speaker 1: this all became such a big list and became such
Speaker 1: a powerful list, And that is how he got onto
Speaker 1: my radar with this. And then I contacted Rob, who
Speaker 1: has been a regular contributor to Business Week, and asked
Speaker 1: him that he would be interested in taking a closer look.
Speaker 1: And I think that from the first minute, we'll let
Speaker 1: Rob answer this, but I think he was intrigued given
Speaker 1: that there were certain aspects of the story that had
Speaker 1: not been covered at all out there and that really
Speaker 1: were very meaningful to again, like what is it that
Speaker 1: this list is really? What kind of power does it? Wiel?
Speaker 1: So I will let Rob talk about that. The list
Speaker 1: itself was actually something that came from his sort of
Speaker 1: correspondence with c e O s. It wasn't something that
Speaker 1: he started to do. It was something that they asked
Speaker 1: him to do because the were CEOs who had pulled
Speaker 1: out of Russia and they felt like the business media
Speaker 1: was conflating what they were doing, actually pulling out with
Speaker 1: you know, other companies that were sort of you know,
Speaker 1: sending thoughts and prayers to the Ukrainian people, but you know,
Speaker 1: counting their Russian roubles and that sort of thing and
Speaker 1: and so that's where the list started for him, was
Speaker 1: just sort of trying to figure out who was actually
Speaker 1: leaving Russia and who was sort of making noise like
Speaker 1: they were leaving Russia but not really. It's pretty incredible
Speaker 1: because you know, sander Felt is certainly Professor soner Felt
Speaker 1: was certainly associated with the list as you write, But
Speaker 1: at the same time he's got a research assistant and
Speaker 1: then all of the volunteers who ended up helping with
Speaker 1: this list, So who actually worked on it and work
Speaker 1: is working on it? Rob There were at one point
Speaker 1: up to forty two I think other people working on it,
Speaker 1: and many of them were undergrads at Yale and other schools.
Speaker 1: They were people like a guy I talked to named
Speaker 1: Frank Sokovowski, and he was a freshman at the time.
Speaker 1: He was studying economics. He had actually heard about some
Speaker 1: of Sonenfeld's earlier work sort of organizing c e O
Speaker 1: s after election to sort of protest, you know, the
Speaker 1: overturning of the election, and he had heard about that
Speaker 1: even before he got to New Haven and resolved to
Speaker 1: work with Snenfeld and it find it happened that this
Speaker 1: was the project and you know he's from Poland, uh
Speaker 1: and so very close to Ukraine. He ended up getting
Speaker 1: so involved with it that he reschedules his classes, you know,
Speaker 1: for the spring, some of them for the summer, so
Speaker 1: he could work on the list in the spring. And
Speaker 1: he recruited a bunch of other students at Yale and
Speaker 1: at other schools to work on the list for him.
Speaker 1: And a lot of those people were Poles who spoke
Speaker 1: not just Polish, but Russian, and that gave this team
Speaker 1: and you know, an inside edge, you know, able to
Speaker 1: analyze Russian material that doesn't normally get translated. So how
Speaker 1: did he ultimately then become an enemy of the Russian
Speaker 1: state as a result. It's just where they so ticked
Speaker 1: off that he was accumulating this list. Why he well,
Speaker 1: he had started with the list, but then he started
Speaker 1: doing some research and he had published research i think
Speaker 1: in late May indicating you know that if you were
Speaker 1: a company pulling out of Russia, you saw a benefit
Speaker 1: to your stock price or you paid less for debt,
Speaker 1: like there was a market reward for pulling out of
Speaker 1: Russia that you could sort of tie to the announcement
Speaker 1: that you were leaving Russia and he ended up on
Speaker 1: a stop list. Uh, this was in June of people
Speaker 1: who weren't allowed to go to Russia. I don't think
Speaker 1: that bothered him too much, you know, I don't think
Speaker 1: he was planning to go to Russia any type of suit.
Speaker 1: They're about a thousand people on that list now. At
Speaker 1: the time there were far fewer. Bloomberg Business Week contributor
Speaker 1: Rob Mandelbaum and senior editor for the magazine Demitri Cassoni's
Speaker 1: with us. There the full story online on the terminal
Speaker 1: and in the Good Business issue. It's out on newsstands now.
Speaker 1: All right, Tim, let's move to another one of this
Speaker 1: week's features. It's all about a one point one billion
Speaker 1: dollars startup net working group that is only for women executives.
Speaker 1: It's called Chief, and it's really a mechanism for women
Speaker 1: who are already on the other side of that glass
Speaker 1: ceiling to collaborate. It's got a lot of people listen
Speaker 1: to this. Chief has roughly twenty members Carol in sixty
Speaker 1: women on its wait list. That's thanks in large part
Speaker 1: to a COVID related pivot away from in person meetings.
Speaker 1: Bloomberg News Managing Diversity reporter Jeff Green has the details.
Speaker 1: They started kind of playing around with the model and
Speaker 1: decided ultimately to just make it a national kind of
Speaker 1: virtual model UM and that made a huge difference for
Speaker 1: how the participation could could happen. And I mean the
Speaker 1: key thing here is that, in addition to being a
Speaker 1: large organization for a lot of people, it's focused on
Speaker 1: very small groups called core groups that have about ten members.
Speaker 1: And that's why you have sixty people wanting to get
Speaker 1: in because they want to be part of these little groups,
Speaker 1: not necessarily the big group. I mean, the big group
Speaker 1: I'm sure is attractive to but everything I hear and
Speaker 1: I've spent some time with some of the members is
Speaker 1: this little group well, and I want to get into
Speaker 1: that because Jeff, I feel like when you're at a
Speaker 1: big conference and then you're invited to a special lunch
Speaker 1: or a breakout right where smaller members where you actually
Speaker 1: face to face time with some really prominent people. One
Speaker 1: thing I want to ask you, though, is I feel like, Jeff,
Speaker 1: there are so many women only professional networks out there.
Speaker 1: It is that core group that makes this a little
Speaker 1: bit different, as well as being very senior people. Yeah,
Speaker 1: and it's not just random. I mean, these are curated
Speaker 1: groups of ten people that are all around the same level.
Speaker 1: This is not a mentor mentee relationship. This is meant
Speaker 1: to be. These are people who will benefit as if
Speaker 1: they were all men on a board together in the
Speaker 1: same sort of way women in a boardroom, except coming
Speaker 1: from a whole bunch of different companies. And that is
Speaker 1: the key here is that it's it's curated. It's also moderated.
Speaker 1: There's a professional um who is there to kind of
Speaker 1: keep the conversation focused and help people to have sort
Speaker 1: of you know, topics to talk about and to keep
Speaker 1: things moving along. How did she not only survive the
Speaker 1: endemic that's thrived during it. Well, I think part of
Speaker 1: the key was going virtual. I mean the idea that
Speaker 1: the people who I talked to in fact, who were
Speaker 1: in a I spent some time with three members of
Speaker 1: a core group over almost a year. We just kind
Speaker 1: of talked from time to time and while we were
Speaker 1: you know, they had never met I mean one of
Speaker 1: them in Philadelphia, two of them are in New York,
Speaker 1: but they had never met physically. They only meet on
Speaker 1: this call, and I mean from any hour of the night,
Speaker 1: from any location. One member kind of left a dinner
Speaker 1: for her daughter's softball banquet, another would do it from Switzerland,
Speaker 1: and me, this was like a very important way to
Speaker 1: kind of focus on very important topics. So for those
Speaker 1: who are involved in it, you know, what do they
Speaker 1: feel like they're getting out of it? Well, I mean,
Speaker 1: for one, one of the people who we kind of featured,
Speaker 1: she's a CFO of Novocure. There are no women other
Speaker 1: than her in the C suite, so she gets to
Speaker 1: be kind of in her own sort of specialized C
Speaker 1: suite with a whole bunch of other people who are
Speaker 1: at the same level and can talk about how what
Speaker 1: they bring to the table and how they would react
Speaker 1: to a specific situation. And they all so we'll have
Speaker 1: certain activities that they kind of bring in as conversation
Speaker 1: starters that give them something to kind of like different
Speaker 1: ideas to test among themselves. Carol and I were at
Speaker 1: Stanford Graduate School of Business interviewed Mary Barra, and one
Speaker 1: of the questions that we asked her was, you know,
Speaker 1: she's the only female executive of the Big three automakers,
Speaker 1: And we asked for a question in the context of okay,
Speaker 1: business school has gotten more diverse in terms of gender,
Speaker 1: but we haven't seen that transit. Half men half women
Speaker 1: getting their nbas, but we haven't seen that translate. So, Carol,
Speaker 1: I thought you asked a great question, which was, you know,
Speaker 1: what's the right conversation that we need to be having
Speaker 1: about this? And and my question for you, Jeff is
Speaker 1: is kind of similar to this. When do we start
Speaker 1: to see the organization that's happening sort of outside of
Speaker 1: the c suite here really translate into numbers that show
Speaker 1: that women are actually getting a foothold in some of
Speaker 1: these biggest companies. Yeah. Well, part of the problem, and
Speaker 1: I've done some reporting on this, is the NBA's are
Speaker 1: not actually where they should be based on or the
Speaker 1: rest of the college education system. Is women still lag
Speaker 1: in the NBA's. It's only just recently we're starting to
Speaker 1: see parody. I think in the Business Week measure there
Speaker 1: were six schools that had parity or better. So that's
Speaker 1: still that is part of the problem is it's kind
Speaker 1: of built into the system. But I mean that is
Speaker 1: the question. It's like, Okay, what's coming and when once
Speaker 1: you start to reach parody at the schools, how are
Speaker 1: you going to work that into the c suite? That.
Speaker 1: You know, people say it's a pipeline problem or whatever,
Speaker 1: but it's it's a prism problem. And I think that's
Speaker 1: what Chief is trying to basically solve, is finding all
Speaker 1: these people and putting them together so they can better
Speaker 1: leverage these opportunities. I mean, you really need to know
Speaker 1: that everyone is there. You need a bit of a
Speaker 1: different rolodex. And that's what Chief is is. Basically, it's
Speaker 1: really big, diverse rolodex for women trying to figure out
Speaker 1: how to break into this system. That was Bloomberg News
Speaker 1: Managing Diversity reporter Jeff Green. Coming up, we touch on
Speaker 1: the end of an era for American industrial icon Boeing
Speaker 1: and explore plans by its European rival Airbus to take
Speaker 1: the global lead in commercial aviation. You're listening to Bloomberg
Speaker 1: this week. This is Bloomberg. This is Bloomberg Business Week
Speaker 1: with Carol Messer and Bloomberg Quick Takes Tim Stenovik from
Speaker 1: Bloomberg Radio. Among the great business rivalries of our time
Speaker 1: is the duopoli of Airbus versus Boeing. Tim, you know
Speaker 1: this so well. You love planes. Those two essentially own
Speaker 1: the commercial aerospace industry. Each planemaker has a lineup of
Speaker 1: products that compete with one another. Airbus has answered to
Speaker 1: Bowing seven thirty seven family, for example, is that are twenty?
Speaker 1: Then for the A three fifty, Bowing has got the seven.
Speaker 1: But that's about to change. Boeing recently revealed it won't
Speaker 1: design a new aircraft this decade, leaving it without a
Speaker 1: competitor to Airbus. A smaller A to twenty, and that
Speaker 1: narrow body design could be the next go to model
Speaker 1: in air travel. Bloomberg News aerospace reporter Julie Johnson writes
Speaker 1: about it in the business section of this week's issue
Speaker 1: of the magazine, What's the Fantastic Plane? I I've I've
Speaker 1: flown on it a couple of times as well, and
Speaker 1: I'm a big fan. There's a window in one of
Speaker 1: the bathrooms that's like the one of the big highlights, right, yeah,
Speaker 1: I guess. So I'm just gonna warn you, Julie um
Speaker 1: Tim is really really into play. I know she knows
Speaker 1: I bother her all the time with like non work stuff,
Speaker 1: but we're picking flights to go places. He's like, well,
Speaker 1: you know what kind of plane that is? Anyway, So
Speaker 1: go ahead, tell us about your story and what you
Speaker 1: what you dug into. And by the way, Tim, I
Speaker 1: approve of this behavior, thank you. Yeah. So so anyway,
Speaker 1: the product strategy gamesmanship is really fascinating between these two
Speaker 1: and as you hinted at, they've had you know, pretty
Speaker 1: much a fifty fifty do Appoli planemaking for years decades,
Speaker 1: and that started to change recently. Air Bus has taken
Speaker 1: control of the most important segment of the market, which
Speaker 1: is narrow bodies, with a plane that has called the
Speaker 1: three Neo that has just been a runaway sales success.
Speaker 1: So air Bus is doing really well at the top
Speaker 1: of the market. And weeks after Boeing CEO basically said, look,
Speaker 1: we're just not doing a plane this decade, air bus
Speaker 1: is CEO told Bloomberg, Hey, well, funny enough, we are
Speaker 1: looking really closely at um a new member of the
Speaker 1: twenty family that would go right at the heart of
Speaker 1: Boeing's product lineup. Now just a little bit of history here,
Speaker 1: but air Bus got the A to twenty at a
Speaker 1: fire sale. I mean I think it was a dollar
Speaker 1: or euro, I forget the currency from Bombardier. Um just
Speaker 1: it was really it was a pittance back in total
Speaker 1: fire sale. And when they picked up those first to
Speaker 1: A to twenty models. They also inherited really detail, detailed
Speaker 1: engineering designs for a third and largest member of the
Speaker 1: family called There and so that's the plane that air
Speaker 1: Bus is now talking up publicly. First of all, what
Speaker 1: does it mean for Boeing if they don't have a
Speaker 1: comeback against it? So there are a couple of things
Speaker 1: going on, and basically this is a classic pincer move.
Speaker 1: Airbus has the top end of the most important market
Speaker 1: in aerospace narrow bodies with THEE and they would be
Speaker 1: coming back with a smaller plane that's targeted right at
Speaker 1: Boeing's best seller, which is the Max eight. So um,
Speaker 1: So Boeing doesn't have a comeback, that means, you know,
Speaker 1: they continue to bleed even more market share to air
Speaker 1: Bus and it's not good. Julie, you mentioned the Max eight,
Speaker 1: So we got to go in on the seven seven
Speaker 1: Max and all the problems that Boeing has had. How
Speaker 1: much of Boeing's history of mismanagement with regard to the
Speaker 1: seven thirty seven Max and the way of the two
Speaker 1: crashes that killed hundreds of people a few years ago
Speaker 1: in the twenty month grounding of the plane, how much
Speaker 1: of that has to do with Boeing not coming up
Speaker 1: with a competitor to this. Well, Boeing's got fifty seven
Speaker 1: billion in debt right now and that's a result of
Speaker 1: COVID and the Max crisis. They had just stopped building
Speaker 1: the Max um for a few months, but they were
Speaker 1: knocked out of sales for a long time. So anyway,
Speaker 1: the financial damage is going to be with Boeing for
Speaker 1: most of this decade, and that's a really big factor
Speaker 1: as to why they're you know, they're just not in
Speaker 1: a position right now to do do a new plane. Um.
Speaker 1: But the Max eight has done really, really well in
Speaker 1: the market and I believe it's outsold the A three two,
Speaker 1: so that's the comparably sized Airbus model. So it's it's
Speaker 1: definitely a success in the marketplace. And right now Boeing's
Speaker 1: finances are writing on that plane. And the story that
Speaker 1: you guys report out says that that Max eight that
Speaker 1: sales restart um handed Bowing a victory over Airbus last
Speaker 1: year the competition for the most aircraft orders. So, Julie,
Speaker 1: the back and forth, I feel like, you know, anybody
Speaker 1: who's been in this industry of covering business news business stories.
Speaker 1: You know, from year to year, it's like Boeing got
Speaker 1: this order, you know, Airbus got this order, and kind
Speaker 1: of the back and forth. But I do wonder is
Speaker 1: it potentially setting up for you know, Airbus to have
Speaker 1: a longer term advantage here or how do you see it?
Speaker 1: You know, everything goes Airbus is way the They will
Speaker 1: dominate the market, not just this decade, but into the
Speaker 1: next decade as well. And so I think some people
Speaker 1: are really worried that, you know, Boeing might be facing
Speaker 1: sort of a slow slide into mediocrity. But then I've
Speaker 1: got to just throw out just a grain of salt here,
Speaker 1: because none of this is going to happen anytime soon.
Speaker 1: Air Boss has got some huge issues of its own,
Speaker 1: and you know, its production system is a mass right now,
Speaker 1: so they're not in a position to take on a
Speaker 1: new plane. And if they pursue there, they're going to
Speaker 1: cannibalize one of their most profitable bowl models, which is
Speaker 1: the Neo. So it's risky for them as well. That
Speaker 1: was Bloomberg News aerospace reporter Julie Johnson. I have to
Speaker 1: say we had so much fun with her. I mean,
Speaker 1: you guys, you I know are so into planes in
Speaker 1: a big way. She obviously is too well. Speaking of that,
Speaker 1: it was a huge weekend for planemakers. Tuesday night in
Speaker 1: ever Washington, the last seven ever assembled left Boeing's factory.
Speaker 1: The freighter is going to be used by the cargo
Speaker 1: carrier Atlas. There we did a feature over at Bloomberg
Speaker 1: Quick Take about the jets more than fifty year history
Speaker 1: and the way the airplane changed air travel forever. You
Speaker 1: can see that on our Twitter feed just use the
Speaker 1: handle at quick Take. I think about so many movies
Speaker 1: right that they use that plane, like to show people
Speaker 1: going up up this dares right to the bar or whatever,
Speaker 1: and it's not going anywhere. I mean, it's hard to
Speaker 1: find a passenger airline. They're none in the US that
Speaker 1: actually fly it. But you know it's going to be
Speaker 1: used as cargo plans for years to come. All right,
Speaker 1: good to know. Still ahead on Bloomberg Business Week, from
Speaker 1: airplanes to automobiles, we'll hear from the CEO of car
Speaker 1: Parts dot Com and the president of Audi of America.
Speaker 1: As the paradigm in the global car business continues to shift,
Speaker 1: we continue to see more and more consumers wanted to
Speaker 1: go into electrification, and that's something where we well prepared.
Speaker 1: We're gonna invest also going for nineteen billion euros over
Speaker 1: the next few years to make sure that there's a
Speaker 1: car electric car for every consumer out there. This is
Speaker 1: Bloomberg Broadcasting from the financial capital of the world, Bloomberg
Speaker 1: eleven Rio in New York to Washington, d C. Bloomberg
Speaker 1: to Boston, Bloomberg one O six one does San Francisco,
Speaker 1: Bloomberg nine sixty to the country Sirius xm jem one team,
Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Business Week with Carol Messer
Speaker 1: and Bloomberg Quick Takes Tim Stinovian on Bloomberg Radio. All right, so,
Speaker 1: in our last segment we spoke about the changing competitive
Speaker 1: landscape in the skies between bog and Airbus. We now
Speaker 1: turn our attention to the changing rules of the road,
Speaker 1: the difference. There are a lot more players involved. Pretty
Speaker 1: much every automaker, from established companies to startups, is following
Speaker 1: Tesla down the path of electrification. Bloomberg New Senior Markets
Speaker 1: reporter Katie Gratfield and I recently spoke with Daniel Weissland.
Speaker 1: He's the president of AUDI of America, and he says
Speaker 1: the luxury brand is more than ready for the transition.
Speaker 1: Over the last few years, we have learned how to
Speaker 1: manage COVID, We have learned how to manage supplied challenges,
Speaker 1: and we also manage economical challenges. UM. And as what
Speaker 1: we can see as for AUDI right now, we see
Speaker 1: a high demand. Actually our demand is high us in
Speaker 1: the supply and especially for electric vehicles or consumers want
Speaker 1: to buy more and more electric vehicles. Well, that's what
Speaker 1: I want to dig into this sort of shift to EVS.
Speaker 1: What I was going to ask is with the inflation
Speaker 1: that we've seen throughout the economy, hottest inflation in a generation,
Speaker 1: do you think that that has it all slowed this
Speaker 1: timeline down when you think about you know, the average
Speaker 1: American driver adopting EVS. Actually, I think it's is accelerating
Speaker 1: the way towards electrification. That's what we see at AUDI
Speaker 1: over the last few months. Uh, you know, with the
Speaker 1: introduction of the que for Eatron and the Audi que
Speaker 1: for each one sport back. Now we have the largest
Speaker 1: but if any auto maker here in the industry. UM
Speaker 1: and the last months we had a seventy increase with
Speaker 1: our better electric vehicles last squart it was so again
Speaker 1: we continue to see more and more consumers wanted to
Speaker 1: go into electrification, and that's something where we well prepared.
Speaker 1: We're gonna invest also going forward, nineteen billion euros over
Speaker 1: the next few years to make sure that there's a
Speaker 1: car like trick Car for every consumer out of there.
Speaker 1: Hey Daniel, what is the internal data tell you about
Speaker 1: your portion of vehicles that you sell will be evs
Speaker 1: by the year, Because according to Bloomberg any f only
Speaker 1: just over half of passenger cars sold in the US
Speaker 1: will be evs and that's by the year. And I
Speaker 1: don't know about you, but that seems kind of slow
Speaker 1: to me. Yeah, I expect that it's going to happen
Speaker 1: the most much fast, especially in the premium segment. For
Speaker 1: Audi predict already in the next five years the tipping
Speaker 1: point that it was more better electric vehicles than internal
Speaker 1: combustion vehicles, and by twenties thirty the last majority will
Speaker 1: be better electric. Big. So let's talk about the supply
Speaker 1: chain here. It's something that we have been talking about
Speaker 1: four years on Bloomberg, specifically when it comes to chips
Speaker 1: and what that has meant for automakers. But from your
Speaker 1: vantage point, I mean, where are we in the supply
Speaker 1: chain story? Has peaks supply chain already passed for your business?
Speaker 1: I I thinking forward, we still see some challenges in
Speaker 1: the whole supply chain around the globe, but I think
Speaker 1: they also managed to adopt according to our customer needs
Speaker 1: and expectations. So for example, now we're trying to pre
Speaker 1: sell cars before they even arrived the country here and
Speaker 1: that helped us obviously to to fulfill the demand or
Speaker 1: certain extent um. And we managed this way also that
Speaker 1: certain challenges if the car is not in the country, Yeah,
Speaker 1: and we can still sell it even if it's outside
Speaker 1: of the country. What are you seeing as an entry
Speaker 1: point for people when it comes to e vs? You
Speaker 1: said that premium end of the segment, and Audi is
Speaker 1: certainly a premium brand, But what do you see as
Speaker 1: the entry point in terms of dollars? Where how low
Speaker 1: could you go in terms of prise? So we started
Speaker 1: in twenty our Audi Eatron price point around eighty thousand dollars.
Speaker 1: Then last year we brought in the Audi Eatron g
Speaker 1: t is electric car to the market. Yes, price point
Speaker 1: above hundred thousand, and now we use a que for
Speaker 1: eachron and the queue for each one squad where we
Speaker 1: brought down the entry price level below fifty thou dollars
Speaker 1: um and that's one thing that the retail price, but
Speaker 1: you also need to look at the cost of owning
Speaker 1: the car and with you know, with electric vehicles, it's
Speaker 1: a lot less than it is with internal combustion engine vehicles.
Speaker 1: You know, the gas prices wherever you live have increased
Speaker 1: throughout the last few years, and with electric cars, obviously
Speaker 1: it's a lot cheaper to maintain and run those cars.
Speaker 1: That's a concern though to a lot of dealerships that
Speaker 1: make money by maintaining people's internal combustion engines and vehicles.
Speaker 1: What are the conversations that you guys are having with
Speaker 1: dealerships right now about how they need to be prepared
Speaker 1: for a future that's electric. Our dealers are an essential
Speaker 1: part of our strategy and of our future and be
Speaker 1: discussing with our dealers constantly how we increase and improve
Speaker 1: our business. So actually it's welcome with a better electric
Speaker 1: vehicles because you know, they're very loyal those customers say,
Speaker 1: not going to any different you know, garage to to
Speaker 1: fix the car. And we should not forget we have
Speaker 1: so many non electric vehicles on the road which they
Speaker 1: can maintain and and and make profits from. So we're
Speaker 1: not concerned about the future of this a would he
Speaker 1: actually be excited about the future because our business is
Speaker 1: going to grow. That was Out of America President Daniel
Speaker 1: weiss Land with me and Bloomberg's Katie Greifeld. Tim, you
Speaker 1: guys spoke a lot about supply chains. Our next guest
Speaker 1: is very much in tune with that integral Harry of
Speaker 1: the car market, to say the least. We're talking about
Speaker 1: David Mignon, the CEO of car Parts dot Com. It's
Speaker 1: a publicly held small camp about three hundred million dollars
Speaker 1: in market. Camp stock is off about fifty so far.
Speaker 1: Here in The company provides access to literally hundreds of
Speaker 1: thousands of aftermarket automobile components online. It's an increasingly tough
Speaker 1: task when it comes to this environment. The consumer is
Speaker 1: getting pinched right at the gas bomb at the grocery
Speaker 1: store with interest rates. So you know, it's an opportunity
Speaker 1: for companies like us to double down on efficiencies and
Speaker 1: double down on continuous improvement and figuring out a way
Speaker 1: how to pass on savings to the customers and give
Speaker 1: them a reason to shop with us. So when you
Speaker 1: are doubling down and thinking about where to conserve or not,
Speaker 1: are you guys bracing for a recession and might layoffs
Speaker 1: be a part of that? You know, I think the
Speaker 1: environment is definitely changing and it's a good time to
Speaker 1: double down on you know, free cash flow, staying debt free,
Speaker 1: positive unit economics and really really go back to the
Speaker 1: fundamentals of serving the customer needs. So for us, it's
Speaker 1: been a laser focus on number one, customer experience and
Speaker 1: number two being fiscally conservative. So we've always been very
Speaker 1: fistfully conservative, especially over the last three years. You know
Speaker 1: we have we're free cash flow positive, we're virtually debt free.
Speaker 1: But as we get into three which might be a recession,
Speaker 1: it's an opportunity to really double down on that. All right.
Speaker 1: So but as you double down, as you said, I mean,
Speaker 1: customers come first, you need people to make sure customers
Speaker 1: come first. But if you are feeling the pressure, I mean,
Speaker 1: are all bets often meaning that if you need to
Speaker 1: cut costs, and if that means workers, that could happen Yeah,
Speaker 1: I don't think we're in that position. I think we've
Speaker 1: been in a good spot for the last three years.
Speaker 1: We've been very disciplined about, you know, increasing headcount. Uh
Speaker 1: So right now we're in a good position, and we
Speaker 1: also have a ton of opportunities operationally to find deficiencies,
Speaker 1: not only on the marketing side, on the technology side,
Speaker 1: using data science, using continuous improvements. So i'd say, you know,
Speaker 1: for us at car parts dot Com, we're in a
Speaker 1: good spot. You guys offer hundreds of thousands of skiers
Speaker 1: give us a percentage. Though in the last couple of years,
Speaker 1: in this supply chain crunches, prices have gone up. How
Speaker 1: much your costs have gone up on these parts? How
Speaker 1: much have you to raise prices for the consumer? Yeah, definitely,
Speaker 1: we've seen some pressure on the supply chain, not only
Speaker 1: in the cost of raw materials, but also inbound transportation
Speaker 1: and outbound transportation. So it's been across the board. Not
Speaker 1: unlike the other traditional retailers were brick and more retailers,
Speaker 1: it's been in the double digits. Now. Obviously, we have,
Speaker 1: you know, what we think is a competitive advantage. We
Speaker 1: have a vertically integrated supply chain and We always try
Speaker 1: to pass on whatever savings we can get to the customer.
Speaker 1: But to your point point, yes, the last couple of
Speaker 1: years have been tough for the customer and it's been
Speaker 1: you know, double digits for sure, double digits. Like are
Speaker 1: we talking somewhere between ten and twenty over the last
Speaker 1: couple of years, so we could say teens, Yeah, we
Speaker 1: like to we like to zero in there, we do.
Speaker 1: You're you're being a good player, David. Hey, what I
Speaker 1: am where? You know? As to mention lots of skews,
Speaker 1: lots of manufacturing, how has the geopolitical instabilities, the trade pushback,
Speaker 1: the pushbacks against globalization, how is that impacting you about
Speaker 1: where you want to manufacture everything. Yeah, that's a very
Speaker 1: good question and it's something that we've been thinking about
Speaker 1: for a very long time. Uh. You know, we source
Speaker 1: parts globally. Now obviously there is a high concentration in
Speaker 1: you know, in Asia, and so we've been looking to
Speaker 1: diversify our supply chain and over the last couple of
Speaker 1: years we added some supply out of South America, out
Speaker 1: of Europe, and I think long term, as the business
Speaker 1: continues to grow, you know, we're always going to be
Speaker 1: sourcing parts from Asia, but there's opportunity in other places.
Speaker 1: So for us, we built we've actually made some investments
Speaker 1: to build a global sourcing team. The main focus is quality, right,
Speaker 1: We're always looking for quality parts, but obviously the global
Speaker 1: geopolitical environment comes into play for sure. David, when you
Speaker 1: say Asia, do you mean China manufacturings in particular. Actually,
Speaker 1: a lot of what we source is from Taiwan. So
Speaker 1: you know, we carry about eighty tho skews individual skews
Speaker 1: in our supply chain and a lot of those come
Speaker 1: from Taiwan, which historically has been a very good partnership
Speaker 1: for us. That's David Magnon, CEO of car Parts dot Com.
Speaker 1: He also mentioned Mexico as a procurement source, so will
Speaker 1: continue to watch how he and others are managing their
Speaker 1: supply lines. You're listening to Bloomberg Business Week up decks.
Speaker 1: New York City's homebuyers and sellers are both trying to
Speaker 1: time the market and that's leading to a lot of frustration.
Speaker 1: Will explain on the other side. This is Bloomberg. You're
Speaker 1: listening to Berg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes, Tim Stinovich from Bloomberg Radio. So, US mortgage
Speaker 1: rates have fallen for a fourth week in a row.
Speaker 1: It's the longest such stretch of decline since May of nineteen.
Speaker 1: So a thirty year fixed mortgage easing to six point
Speaker 1: four in the weekending December two TIMP. That is the
Speaker 1: lowest since mid September, according to Mortgage Bankers Association data.
Speaker 1: We got that data earlier in the week. Speaking of
Speaker 1: interest rates in real estate, we wanted to get an
Speaker 1: update on the home market in one of the highest
Speaker 1: priced big markets in the world. We're talking about New
Speaker 1: York City. Back with us as Barbara Fox, she's president
Speaker 1: of the Fox Residential Group. It's a small boutique brokerage
Speaker 1: firm that specializes in the sale upscale residential properties in Manhattan,
Speaker 1: and she says economic uncertainty is stalling transactions across the
Speaker 1: big Apple. This is a glitch here between buyers and sellers.
Speaker 1: Buyers know that the market should be more favorable to them,
Speaker 1: and sellers haven't really gotten it yet. So that's that's
Speaker 1: what sort of ha happened in the market. So if
Speaker 1: sellers started to get it now, I think sellers maybe
Speaker 1: starting to get it but they haven't gotten it yet.
Speaker 1: Here's what's tricky about this market is that we're in
Speaker 1: an environment wherein the Bank of Americas at O'Brian moynihan
Speaker 1: said this a few months ago in an interview with Bloomberg,
Speaker 1: that there's so many people in the US who have
Speaker 1: interest rates under four percent, even under three, that people
Speaker 1: who would traditionally move are are are willing to stay
Speaker 1: in their apartments because they don't want to go somewhere
Speaker 1: and then pay a higher interest rate. Yeah, well that's
Speaker 1: very true. I mean, it makes sense. So how do
Speaker 1: you reconcile that with changing demographics, younger people who do
Speaker 1: want to buy their first home and not necessarily having
Speaker 1: that supply available. The only way to really justify it
Speaker 1: is to make prices comparable UM to the interest rate increases.
Speaker 1: And you know, when prices are lower UM, people like
Speaker 1: to be able to get a goodbye, and if they
Speaker 1: get a goodbye, then they can make it up. The
Speaker 1: interest rate being higher doesn't really matter to them so
Speaker 1: much as long as the price is lower. So, Barbara,
Speaker 1: you know, I go to your website and I get lost.
Speaker 1: I go down a rabbit hole because I love real
Speaker 1: estate and just checking it out. But there's you know,
Speaker 1: it runs the gamut. What are the typical properties that
Speaker 1: are are moving right now? Give us an idea of
Speaker 1: price range. Who's buying? Is it cash deals? What is it?
Speaker 1: Let me start with what's not selling? Okay, all right?
Speaker 1: What's not selling? Our apartments that need work or properties
Speaker 1: that need work. Renovation is very expensive now. It's slower
Speaker 1: than it ever was in terms of the supply chain issues.
Speaker 1: And it's just um, it's a more difficult process right now.
Speaker 1: And co ops in particular, which makes up a large
Speaker 1: percentage of our real estate stock. Co ops have to
Speaker 1: get approvals and the co op boards govern how many
Speaker 1: days you can work, and they make life difficult. So
Speaker 1: you maybe say, if somebody comes with a listing in
Speaker 1: the kitchen needs to be readown bathrooms, you're like, I
Speaker 1: don't even take it. A lot of people do that.
Speaker 1: I mean I work with people every day that that
Speaker 1: you know, want something that's in that they can move into.
Speaker 1: They don't want to have to us someone who's a seller.
Speaker 1: Will you say, I don't want to take those properties
Speaker 1: as much? None? Okay, because we have we have ways
Speaker 1: of making things look beautiful. I mean We take properties
Speaker 1: that need work and we have them staged and painted
Speaker 1: and cleaned, and they and they end up looking gorgeous
Speaker 1: and and when it comes down to what's needed, really
Speaker 1: less as needed than then they would have other than
Speaker 1: the buyers would have otherwise thought. That's Barbara Fox, president
Speaker 1: of the Fox Residential Group. For the full interview, check
Speaker 1: out the Bloomberg Business Week podcast feed. And that wraps
Speaker 1: up the first hour of the weekend edition of Bloomberg
Speaker 1: Business Week from Bloomberg Radio. I'm Carol Masser and I'm
Speaker 1: Tim Stanivik. Coming up in our next hour a group
Speaker 1: of executives from the travel, media and retail industries. We're
Speaker 1: gonna hear from both the CEO and CFO of Royal Caribbean,
Speaker 1: the heads of Active Where apparel makers Ron and Fiori,
Speaker 1: as well as the CEO of Loop Media. It's a
Speaker 1: CEO palooza like that, It's always a CEO polooza for us,
Speaker 1: it really really is. Plus Miami's crypto diehards they are
Speaker 1: partying on in the wake of the ft X unraveling.
Speaker 1: This is personal for them what's happened. There are people
Speaker 1: who know Sam BigMan Fried who it's not just people
Speaker 1: whose balance sheets are affected by him. This is Bloomberg.
Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happened. Sloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes Tim
Speaker 1: Stinovic on Bloomberg Radio. Plenty of head in our second
Speaker 1: hour of the weekend edition of Bloomberg Business Week, including
Speaker 1: an excerpt from the latest edition of Chief Future Officer.
Speaker 1: We'll get a double dose of c suite insights from
Speaker 1: both the CEO and CFO Royal Caribbean. Plus we check
Speaker 1: in on the retail space with the heads of competing
Speaker 1: high end activewear apparel makers. We're talking about Ron and
Speaker 1: Viori and how Miami's Crypto Faithful are coping with the
Speaker 1: collapse of f TX the coup and I think, okay,
Speaker 1: it sounds like party party on first up this hour.
Speaker 1: He's an entrepreneur. He's co found of two companies, including
Speaker 1: the one he runs now, president of Asia Electronic Arts
Speaker 1: there for about seven years. Before that, he was president
Speaker 1: of Asia Pacific over Walt Disney International. It was really
Speaker 1: nice to have back with us. John Narman. He's chairman, CEO,
Speaker 1: and co founder of Loop Media. It's a multi channel
Speaker 1: streaming platform. It's got a three million dollar market cap,
Speaker 1: so it's a small cap and it went public after
Speaker 1: an uplisting as part of a twelve million dollar underwritten
Speaker 1: public offering that happened back in September. We began by
Speaker 1: asking for his thoughts on the pain being felt across
Speaker 1: the digital advertising space. Everybody's it's all doom and gloom, right,
Speaker 1: it's just falling apart, it's tanking. If you look at
Speaker 1: if you hear from Snap now, I don't agree with that.
Speaker 1: You're saying that. Now I'm not coming out strong like no,
Speaker 1: I'm coming out saying that's not entirely accurate. I think
Speaker 1: a certain segments if you look at advertising across the board,
Speaker 1: you got the traditional advertising, linear TV, outdoor, et cetera.
Speaker 1: Now people are doing digital advertising. So yes, social media
Speaker 1: in that area, which has grown robustly, has taken a hit.
Speaker 1: But areas like connected television, your Rocus, the Warrior, Pluto's,
Speaker 1: et cetera, they're growing, digital out of home are also growing.
Speaker 1: Those are the two areas we play in. So I
Speaker 1: don't agree with this kind of blanket statement of it's
Speaker 1: just all bad. But would you agree with the blanket
Speaker 1: statement that companies are tightening their belts. And when companies
Speaker 1: do tighten their belts, one of the first things to
Speaker 1: go is marketing money. I would agree with that, yes,
Speaker 1: but I also think they refocus it. So if you're
Speaker 1: people are going out again, you know, as we know
Speaker 1: and like a couple of years ago, even the past year,
Speaker 1: people are going out. It's a great captive audience. They're
Speaker 1: out for a good time, they're having a good time.
Speaker 1: So targeting groups like that out home as opposed to
Speaker 1: just your mobile phone all the time is something that
Speaker 1: people are expanding into. How do you do that? So,
Speaker 1: like loop Media, we have a platform that's advertising supported.
Speaker 1: We're in any public venue as small as a pub
Speaker 1: to as large as university campus. So whether you're a
Speaker 1: dry cleaner, tattoo parlor, a CDB store, you name it. Uh,
Speaker 1: they have screens. So we create a network basically out
Speaker 1: of home. Previously these are all kind of disconnected. You know,
Speaker 1: think about where homes where ten years goes cable and satellite,
Speaker 1: that's still where businesses are. They don't really have a
Speaker 1: streaming option, and that's what we're bringing to them. You
Speaker 1: don't go to a restaurant and watch a movie, and
Speaker 1: basically all streaming services or movies or TV series. If
Speaker 1: you're seven year old, you do, yes, you do right.
Speaker 1: Your parents give you, they say, watch this movie while
Speaker 1: we have a nice peaceful dinner. Exactly, you go to
Speaker 1: a sports bar and they're constantly playing Caddyshack the whole time.
Speaker 1: There's nothing wrong with Wait, so help me understand so
Speaker 1: exactly what you're doing. So you're going into spaces that
Speaker 1: maybe typically did not have advertising before. Correct so previously.
Speaker 1: So in our world, we're not really about subscribers. That's
Speaker 1: the consumers. How many subscribers you have? For us, it's
Speaker 1: how many locations are you in. So we provide that
Speaker 1: as ads supported for free. Coming out of the pandemic,
Speaker 1: people at all these costs to worry about labor, food,
Speaker 1: et cetera. The last thing they're worried about is spending
Speaker 1: money on a TV screen. But they didn't have that
Speaker 1: free option before. So in order to get that free
Speaker 1: content and digital signage, you need advertising to support it. Obviously,
Speaker 1: so people are moving part of their media mix into
Speaker 1: this digital out of home space, which you'll hear more
Speaker 1: and more of. What's the growth that you've seen? Give
Speaker 1: me where were you pre pandemic versus pre pandemic? Where
Speaker 1: are you today? We're about three million dollars and acquired revenue.
Speaker 1: We were basically a startup, you know, we had bought
Speaker 1: a small company that provided music videos to out a
Speaker 1: home and this past year we've finished five million. We
Speaker 1: haven't released our fiscal however, the analyst estimate is around
Speaker 1: thirty million RUST and it's a big gap go from
Speaker 1: five to thirty you know last year. Yeah, so if
Speaker 1: you if you kind of look at that, that's yeah,
Speaker 1: that's the type of growth that you're looking at. Which
Speaker 1: venues in particular are providing the biggest momentum for you guys?
Speaker 1: You mentioned restaurants. Do you tell me if I go
Speaker 1: to Danielle, you could go to Margaritaville Right down here
Speaker 1: at Tide Squarelle we talked, So if I go to Margaritaville,
Speaker 1: where am I going to see the screen at the bar?
Speaker 1: Your seat at the bar. You're going to see it
Speaker 1: in common areas You're going to see in the lobby.
Speaker 1: You know, we're also in four in a thousand hotel rooms,
Speaker 1: so you know, we provide largely about of our business
Speaker 1: of bars and restaurants. The rest are just kind of
Speaker 1: other retail John tracking r o I. How do you
Speaker 1: tell clients what they get, what their return is? So
Speaker 1: for them, it's really a couple of things. One, it's
Speaker 1: about cost savings. So what used to cost them. They
Speaker 1: can actually earn a little bit of money because we
Speaker 1: do provide a rewards program. So would you use our service,
Speaker 1: you keep the screens on, you have a chance to
Speaker 1: earn some cash. So that's a great thing for their
Speaker 1: balance sheet. Um. The second thing is really this the
Speaker 1: opportunity for them to engage the customers. And you know,
Speaker 1: when people are engaged, they stay longer and they spend more.
Speaker 1: So there are quite a few studies that actually show
Speaker 1: when that entertainment is good in house, people are sticking
Speaker 1: around there. Well yeah, but we do have a trivia channel.
Speaker 1: So when you like, you know, you're at a bar
Speaker 1: with your best friend Joe or Jane, and they say,
Speaker 1: what the heck do you do? Yeah, so you stream
Speaker 1: videos your video streaming company into public spaces. So bars,
Speaker 1: rest you know, any time. So any company can do it.
Speaker 1: The company could do it, they just need to find us.
Speaker 1: We get them a loop player. They plug in the
Speaker 1: loop player. Previously you'd have these giant a v racks.
Speaker 1: You know, you go to we we have dating yourself,
Speaker 1: but I thank you, But even I go to the
Speaker 1: yard house and a big Dell computer there and they're
Speaker 1: clung gy and horrible and expensive. And now you just
Speaker 1: plug and play like you do at home. Is the
Speaker 1: is the is what you plug in a hard drive
Speaker 1: or a you know, stored memory device or is it
Speaker 1: does it give wireless access? It's a little well it's
Speaker 1: an Android player. You're just plugging in the back like
Speaker 1: size of an Apple TV, so kind of a three
Speaker 1: by three thing. Does it connect to a network or
Speaker 1: does it have a hard WiFi? You can also do Ethernet?
Speaker 1: And it does. It does cash content because in case
Speaker 1: WiFi goes down, you don't want to have be left
Speaker 1: without content. I want to go back to the question
Speaker 1: that I had before, because John, with all due respect,
Speaker 1: you didn't really answer it, but maybe I asked it
Speaker 1: in about in a bad way. Okay, but you know
Speaker 1: the content that you play in these out of home spaces.
Speaker 1: It's supported by advertisers. Correct. What I want to know
Speaker 1: is how advertisers who work with you know they're getting eyeballs,
Speaker 1: know they're getting a return on their investment that they're making.
Speaker 1: So currently they basically put advertising in there to have
Speaker 1: the opportunity to be exposed to multiple people in the room.
Speaker 1: Think of it this way. When you're at home watching
Speaker 1: your movie, it's you one on one, so advertisers paying
Speaker 1: for that one on one. When you're out of home,
Speaker 1: it's a multiplier. You could have fifteen people within the
Speaker 1: range of that. Now we're working with com Score to
Speaker 1: try to get some measurement in there. There's also third
Speaker 1: parties like geopath that measure people that are in They
Speaker 1: could cut basically through WiFi, can tell how many mobile
Speaker 1: phones are in the room. This is new. I mean,
Speaker 1: it's odd as it sounds. Everybody's been focused on consumer streaming.
Speaker 1: It's Roku, it's Pluto, it's Disney Plus, it's everyone there.
Speaker 1: But out of home, those things don't play, they don't work.
Speaker 1: The content isn't right there, licensing isn't there. So we've
Speaker 1: kind of quietly gone about finding that world of tens
Speaker 1: of millions of screens, beautiful screens out there with tons
Speaker 1: of eyeballs, providing content that works. Music videos. We lead
Speaker 1: basically all fifty states national music video promotions. We're the
Speaker 1: biggest TV now that's right, all right, bring me my
Speaker 1: loop or whatever. So I gotta gotta Yeah, that's it,
Speaker 1: so loop me in little You supply the hardware to
Speaker 1: we do, so we can do it with our own
Speaker 1: loop player, but we also wont we have a partner network.
Speaker 1: So for example, we're about seventeen thousand convenience store point
Speaker 1: of sales systems. Truly last model advertising. Think your in line,
Speaker 1: you got the little thing at the end and say
Speaker 1: itemizes your receipt. Boom, there's a Snickers commercial right there,
Speaker 1: Snickers right here, impulse by. So it's really that last
Speaker 1: opportunity for the advertiser to grab that consumer when they're
Speaker 1: actually out making a purchase. So what does an add
Speaker 1: spot rock costs? That's CPMs very you know, they're kind
Speaker 1: of in between five to fifteen depending on the day. Yes,
Speaker 1: but then a multiplier, So what you can do without
Speaker 1: a home, if there's ten people in there, you can
Speaker 1: put that ten times multiplier in the advertiser pay for
Speaker 1: that our thanks to John Narman. He's the chairman, CEO
Speaker 1: and co founder of the held company bloom Media. We
Speaker 1: had a lot of fun with him, kind of going
Speaker 1: back and forth right on the business model. He was
Speaker 1: really candid. I loved it. Yeah, me too. All right,
Speaker 1: you're listening to Bloomberg Business Week coming up. We hit
Speaker 1: the High Seas with the executive team from Royal Caribbean.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week with Carol
Speaker 1: Masser and Bloomberg Quick Takes Tim Stenovik from Bloomberg Radio. Well,
Speaker 1: this past week, JP Morgan downgraded Royal Caribbean to underweight
Speaker 1: from overweight, noting the cruising company's elevated leverage and this
Speaker 1: is a quote, the magnitude and timing of future capital commitments.
Speaker 1: Those were some of JP Morgan's concerns. This is despite
Speaker 1: Royal caribbeans ten billion dollars of capital raises so far
Speaker 1: this year, the company's cash and debt positions, or something
Speaker 1: Carol recently talked about with both the Royal Caribbean CEO
Speaker 1: Jason Liberty and the CFO IF Tally Holtz, respectively. The
Speaker 1: latter conversation featured in Business Week Talks and this week's
Speaker 1: issue of the magazine, and both are part of the
Speaker 1: latest installment of Chief Future Officer. It aired on Bloomberg
Speaker 1: TV just this past week. The conversation we covered a lot,
Speaker 1: but it begins, as so many do these days, about
Speaker 1: the pandemic and life after, which I put that question
Speaker 1: first to Royal Caribbean CEO Jason Liberty. All of a sudden,
Speaker 1: you know, the revenue just turns off. They did not
Speaker 1: teach this in business school, by the way, So you
Speaker 1: know it turns off, and you you have to figure
Speaker 1: out how you're going to ensure that the company has
Speaker 1: liquidity needs in order to be able to get to
Speaker 1: the other side of it. No revenue at all, but
Speaker 1: you have costs and expensive that what you learned in
Speaker 1: the pandemic is that leadership really matters. For Royal Caribbean Cruises,
Speaker 1: the lesson was stark and clear. After generating almost two
Speaker 1: billion dollars an annual profit before COVID, the company lost
Speaker 1: more than five billion dollars in both At the end
Speaker 1: of longtime CEO Richard Fain stepped down after thirty three years,
Speaker 1: handing the reins to CFO Jason liberty. What was it
Speaker 1: like that transition going from CFO to Yeah, we were
Speaker 1: still kind of coming out of the pandemic. We were
Speaker 1: still ramping up our fleet, ramping up our occupancy, and
Speaker 1: so we had to keep our eye on the ball
Speaker 1: on because historically we would bring about three ships up
Speaker 1: a year, and here we brought up sixty four ships.
Speaker 1: And it's a big change to herculean efforts helping the
Speaker 1: new CEO meet those challenges. New CFO and if Holly Holt,
Speaker 1: who moved up from VP of Finance, I had hired
Speaker 1: him I think about six months before the pandemic. I
Speaker 1: was looking for somebody with with a lot of really
Speaker 1: strong work ethics, somebody who was strategic um, you know,
Speaker 1: somebody who understood how to get things done inside of
Speaker 1: an organization. And I saw those qualities and off Tolly.
Speaker 1: And he has done an exceptional job coming into the role.
Speaker 1: He hit the ground running. That dynamic in the C
Speaker 1: suite has helped Royal Caribbeans come back maintain momentum. What's
Speaker 1: it like becoming CFO working for the individual who was
Speaker 1: CFO and is now CEO. I feel very fortunate because
Speaker 1: I have someone who has been in the job for
Speaker 1: many years. Is still with a company obviously as much
Speaker 1: more responsibly, but he understands what what I what what
Speaker 1: it means to be in my job. So what was
Speaker 1: that like for you having been in a CFO role
Speaker 1: for so long? What did you expect of him? I
Speaker 1: rely on him very much to be my eyes and ears,
Speaker 1: my strategic partner. And I'm also very transparent with him
Speaker 1: in terms of what I'm thinking about and doing um
Speaker 1: and sometimes who sit there and did we really need
Speaker 1: to spend money on that? And also yeah, we really
Speaker 1: need to spend money on that. I'm a very direct
Speaker 1: person and I care and I feel that that's that's
Speaker 1: important for me to make sure that if I feel differently,
Speaker 1: you know, at least we have a conversation. And you
Speaker 1: know many times I would I would I would think
Speaker 1: one way, and then he would point his point of
Speaker 1: view and it would make sense and I would say,
Speaker 1: you know what, You're right and and I get behind it.
Speaker 1: Advancing the company's long term mission through honest conversation. That's
Speaker 1: how n if tally Holt takes the CFO roll forward.
Speaker 1: And maybe many years ago we was about making sure
Speaker 1: that the numbers are correct and everything is on time
Speaker 1: and and we report correctly, and I think evolved today
Speaker 1: into much more than that. You know, what is the
Speaker 1: strategy that we're going to embark on, What does that
Speaker 1: mean to the financial performance of the company, and how
Speaker 1: does how do we investor view dot Um. That's one
Speaker 1: aspect of it, and the other is just making sure
Speaker 1: that we are always on the poles with its full
Speaker 1: fleet returning to the seas in. Royal Caribbean has enjoyed
Speaker 1: a financial rebound booking or robust and they've been accelerating
Speaker 1: every quarter. In November, the company announced the Trifecta Program,
Speaker 1: a three year initiative designed to exceed performance in key
Speaker 1: financial metrics by the end of Inside the industry, they're
Speaker 1: confident because there's bent up demand. People want to We
Speaker 1: have a hundred and thirty thousand people sailing with us
Speaker 1: right now as we talked, and they are spending more
Speaker 1: than they did a month ago. They're spending more than
Speaker 1: they did a year ago. They're spending more than they
Speaker 1: did pre covid Um on travel experience. We know the
Speaker 1: ships that are coming in. These ships are huge money makers,
Speaker 1: very high yielding. Because of the inventory mix, there's more
Speaker 1: space for onboard revenue venues. They're very fuel efficient. Intent
Speaker 1: to cruise is climbing. Whether or not that can be sustained,
Speaker 1: I think is a question to be answered, and there
Speaker 1: are a couple of different elements of that, the first being, UH,
Speaker 1: the economy. Do you get a little nervous with all
Speaker 1: the recession talk or another black swan who would have thought,
Speaker 1: right what happened the last couple of years. It's hard
Speaker 1: to plan for it right. So what we are focused
Speaker 1: on is to making sure that we have the best
Speaker 1: business right, so the business is run well. We are
Speaker 1: obviously are focused on liquidity and and our our our
Speaker 1: financial metrics, and we want to fix the balance sheet.
Speaker 1: Fixing the balance sheet that's a heavy lift. Royal Caribbean
Speaker 1: is carrying nearly twenty four billion dollars in debt. Though
Speaker 1: it's paid down most of its short term obligations, the
Speaker 1: debt still looms large. It's a dark cloud over the
Speaker 1: entire cruise industry. The valuations for the major cruise lines
Speaker 1: have gone down and UH, and the debt levels are
Speaker 1: very high, so they will have difficulties to to receive
Speaker 1: more debt and it might be very high interest rates.
Speaker 1: The debt that we took on. Half of it was
Speaker 1: in order for us to deal with UH not operating
Speaker 1: for those for those eighteen months and ramping our business
Speaker 1: back up, staying a lot, that's right. Um. The other
Speaker 1: half of it was actually because we were growing and
Speaker 1: we were taking on new ships, and those new ships
Speaker 1: we get incredible export credit financing for and we've done
Speaker 1: a lot of refinancing and we do believe over the
Speaker 1: coming years we're gonna be in a much better place
Speaker 1: to do two things. One is de leverage and also
Speaker 1: improve our rating, and so that will also lower our
Speaker 1: capital casts. Are you comfortable with that level of debt
Speaker 1: and being able to service it, well, we were not
Speaker 1: happy with it. We want to get Our goal is
Speaker 1: to get back to the balance sheet we had UM,
Speaker 1: which is an investment, great profile. We're back sailing UM
Speaker 1: occupancies were generating cash flow from operations, so you know,
Speaker 1: our goal is now to continue to grow Ibada, continue
Speaker 1: to grow the cash low so we can pay down
Speaker 1: the debt and bring the balance sheet back. This business
Speaker 1: is very resilient. We always said that we wanted to
Speaker 1: have a balance sheet that could take a punch, and
Speaker 1: we proved that we had a balance sheet that could
Speaker 1: actually take a meteor um and so I think that's
Speaker 1: why you know, NOF is very focused. I'm very focused
Speaker 1: on getting back to a investment grade balance sheet. I'm
Speaker 1: getting back to an unencumbered balance sheet. You know that
Speaker 1: that sets us up for events as they as they
Speaker 1: as they come forward. Can Royal Caribbean perform its way
Speaker 1: back to unencumbered financial stability. The cruise line generates about
Speaker 1: six revenue from sales of tickets. Most of the rest
Speaker 1: comes on board spending. At the moment, higher prices aren't
Speaker 1: holding down demand in either category. On the ticket pricing
Speaker 1: side as well as on onboard spend um you are
Speaker 1: pricing is up versus nineteen. We use nineteen as our
Speaker 1: reference point. Onboard experiences have really been become a much
Speaker 1: more integral part of the experience. What we have seen
Speaker 1: in the past couple of years is that we we
Speaker 1: have a much more penetration of onboard board experiences for
Speaker 1: a guest. So people just want to consume more, They're
Speaker 1: willing to spend more and that's obviously much um. That
Speaker 1: helps the the yields and the revenues as well as
Speaker 1: the margin pre pandemic. Unalysts were impressed by Royal Caribbeans
Speaker 1: margin expansion. Operating margins double during Jason Liberty's first seven
Speaker 1: years as CFO. The voyage ahead may not be a
Speaker 1: smooth especially if inflated costs eat into revenue gains. We've
Speaker 1: seen huge inflation costs on the on the food. However,
Speaker 1: you are supply chain teams have done really an exceptional job.
Speaker 1: So we do believe as which is what the basis
Speaker 1: of our Trifector program is moderate yields and good cost control.
Speaker 1: And for us could cost control is is low single
Speaker 1: digit um change you over here Those are the voices
Speaker 1: of Royal Caribbean CEO Jason Liberty and CFO and F
Speaker 1: Tally Holtz, part of the newest episode of Bloomberg's Chief
Speaker 1: Future Officers series, and in there you also heard from
Speaker 1: some watchers of the cruise industry. You can check out
Speaker 1: the whole show at Bloomberg dot com. Still to come
Speaker 1: on Bloomberg Business Week, A pair of competitors in the
Speaker 1: director consumer segment of the retail market, both founders and
Speaker 1: CEOs of their own companies, runs Nate Check It to
Speaker 1: Fiori's Joe Kubla are up next. This is Bloomberg Broadcasting
Speaker 1: from the financial capital of the World, Bloomberg Eleve in
Speaker 1: Rio in New York to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one oh six one does San Francisco, Bloomberg nine
Speaker 1: to the country, Sirius XM Jomber one nine and around
Speaker 1: the globe the Bloomberg Business and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes. Tim Stenovian on Bloomberg Radio. A couple of
Speaker 1: great interviews coming up with a pair of executives and
Speaker 1: the activeware business. We're talking about roans, Nate check its
Speaker 1: and theories. Joe could La NATed last Joint Business Week
Speaker 1: back in August of That was when many of us
Speaker 1: were living in yoga pants. Well I wasn't you that's sweatpants.
Speaker 1: You know, I had some joggers, all kinds of comfy
Speaker 1: at leisure close. Of course, Now the company he co
Speaker 1: founded is adapting to meet the changing needs of the consumer,
Speaker 1: with more people returning to the office. Bloomberg Market Senior
Speaker 1: editor Mike Reagan and I spoke with Nate just before Thanksgiving.
Speaker 1: We wanted to know how Ron is making the transition.
Speaker 1: We make everything from underwear to outerwear, and we you
Speaker 1: know we we do activewear really really well, and that's
Speaker 1: what was selling during the pandemic was our activewear and
Speaker 1: our loungeware and then all of this out and you
Speaker 1: saw huge surges and kind of back to work clothing,
Speaker 1: but the styles that everybody wanted to wear was really comfortable,
Speaker 1: basically our commuter program. So Len say, your commuter shirt
Speaker 1: is like it's taking on the transparency. It's a killer. Yeah.
Speaker 1: I mean I I just ran the London Marathon and
Speaker 1: it just to show what you can do. Yeah we did,
Speaker 1: um we did in two months. Yeah, in two months
Speaker 1: of two we sold as many commuter shirts as we
Speaker 1: did in all of I mean, the volume just increased.
Speaker 1: So the challenge for us from the supply chain standpoint
Speaker 1: was how do you keep up with the inventory mix
Speaker 1: of going from chasing hard after Actwaar loungewear to all
Speaker 1: of a sudden chasing down Italian button downs and you know,
Speaker 1: Japanese knit stretched fabrics. So for us, it was it's
Speaker 1: been kind of the inventory planning in the mix in
Speaker 1: the different factory they're an uncomfortable, uncomfortable moment where you
Speaker 1: I mean, we couldn't keep We could not keep up
Speaker 1: with the demand in the beginning of this year on
Speaker 1: our commuter program. I mean people were buying it. You know,
Speaker 1: they weren't just buying one or two pairs of commuter
Speaker 1: pants or commuter shirts. They were buying eight to ten
Speaker 1: and we could not keep up with a volume. Nate,
Speaker 1: I always wonder because you guys are director consumer, right,
Speaker 1: You've got your website we know well, but you also
Speaker 1: you're selling in bluemies, You're at Equinox like, you're also
Speaker 1: got retail outlets that so where is most of the
Speaker 1: selling going on? The majority of our sales is in
Speaker 1: our directed consumer channels. It's it's still, you know, the
Speaker 1: biggest channel by far as e coom. But our retail
Speaker 1: is what's most exciting. Our retail has been growing this year,
Speaker 1: is going to grow another hundred and sixty percent next year.
Speaker 1: It'll be triple digits the next three years. So our
Speaker 1: our head of retail extra mind me, at some point
Speaker 1: it will be as big as our eCOM business. So
Speaker 1: what's the strategies for sort of bouncing the two out?
Speaker 1: I mean It's still a fairly limited number of retail locations, right,
Speaker 1: Is there a sort of a perfect number in your
Speaker 1: mind that that you don't want to there's definitely a
Speaker 1: cap um. I don't think we know exactly what that
Speaker 1: cap is yet, but we're far from it. Every single
Speaker 1: store that we've opened is for wall profitable and is
Speaker 1: doing quite well. And the rationale is there. We've seen
Speaker 1: a significant rise in digital acquisition costs we can't keep
Speaker 1: up with. You know that we're not going to overspend
Speaker 1: on media. We don't believe in losing money as a business,
Speaker 1: and so for us to go to the next level,
Speaker 1: we think we can acquire customers, do it profitably, and
Speaker 1: get this halo effect every time we open a retail store.
Speaker 1: So that's why we're leaning into retail aggressively. With all
Speaker 1: the geopolitical turmoil, the pushback against globalization, Um, we're still
Speaker 1: a global market. But I'm curious, have you changed your
Speaker 1: supply chain at all over the years. We've had to
Speaker 1: diversify it a bit, you know, I think we had
Speaker 1: huge concentration risk, certainly in Southeast Asia, and that to
Speaker 1: your China specific in China a bit in China about
Speaker 1: thirty percent of our production was in China. It just
Speaker 1: real risk and so we've tried to move production as
Speaker 1: close to home as we realistically can without sacrificing quality.
Speaker 1: And um, we've you know, we've started to do a
Speaker 1: bit more in Vietnam, but Vietnam was a country that
Speaker 1: was completely locked down during the pandemic multiple times. So, um,
Speaker 1: it's it's challenging and it continues to be a challenge.
Speaker 1: Do you manufacturing the US. We don't do manufacturing in
Speaker 1: the US really, you know, for the technical quality that
Speaker 1: we do, it's very very hard to find, um, the
Speaker 1: manufacturing in the US that we would want. And that
Speaker 1: was Rowan, co founder and CEO night Check. It's with
Speaker 1: me and Mike Regan. We also talked about brick and
Speaker 1: mortar expansion, the critical holiday sales season, and tim increase
Speaker 1: competition from other brands like Vory and Joe Coudla runs
Speaker 1: the Southern California inspired activewear brand. This past week he
Speaker 1: told us that his company is firing on all cylinders
Speaker 1: at exactly the right time. Yeah, you know, going in
Speaker 1: we were cautiously optimistic. We've seen great trends in our
Speaker 1: business this year. However, with all the discussion around promotion
Speaker 1: and you know, the inventory glut that existed at retail,
Speaker 1: we were a little worried or as a full price
Speaker 1: brand and we intended to stay full price through the
Speaker 1: holiday with minimizing promotions. But we've been really happy with performance.
Speaker 1: We came out and we exceeded our you know, kind
Speaker 1: of best case forecast for Black Friday that carried through
Speaker 1: Cyber Monday, and it's both online and in our store.
Speaker 1: So you know, we've been very happy with performance thus far. Alright,
Speaker 1: so happy, but drilled down for us. So Black Friday
Speaker 1: Cyber Monday better than what you saw back in pre pandemic. Absolutely,
Speaker 1: you know, it's it's a little bit different this year.
Speaker 1: Last year, we saw holiday shopping start earlier, as early
Speaker 1: as October, as you know, the message was, you know,
Speaker 1: their supply chain challenges, logistical infrastructure was going to be stressed,
Speaker 1: so get your holiday shopping done earlier, and that message
Speaker 1: really resonated, so we saw the trends start earlier. This
Speaker 1: year was a return to kind of pre pandemic um
Speaker 1: kind of seasonality in terms of holiday shopping cadence. So
Speaker 1: it really did start, you know, with that Black Friday
Speaker 1: um weekend. All all things materially considered UM, but once
Speaker 1: it started, it has really come on strong. I mean,
Speaker 1: we're seeing data from the National Retail Federation that they're seeing,
Speaker 1: you know, really great growth. Adobe reported as well as
Speaker 1: shop if I reported great sales, and we're seeing the
Speaker 1: same thing here at Vioria. It's been a really encouraging
Speaker 1: holiday this far. What about discounting. You mentioned that you're
Speaker 1: a full price brand. Have you discounted anything or did
Speaker 1: you have to discount anything in terms of what you
Speaker 1: see an inventory. We've heard a lot about companies that
Speaker 1: have excess inventory right now, what's your status? Yeah, you know,
Speaker 1: we definitely have a higher level of inventory than we've
Speaker 1: been sitting on in year's past. However, all things considered,
Speaker 1: we're in a really healthy place and so we have
Speaker 1: maintained a full price business. Sure, we have a sale
Speaker 1: page on our website where we move a couple of
Speaker 1: things at the end of a season to that page,
Speaker 1: but as far as holiday promotions, we have stay full price.
Speaker 1: We've offered a gift with purchase UM for for customers
Speaker 1: who spend over a certain threshold, which has been received
Speaker 1: really well. UM, but that's always been our mantras to
Speaker 1: stay full price, and that's what we did this year
Speaker 1: as well. You're, you know, director consumer, you're also in retail.
Speaker 1: Where's the bulk of it? Joe kind from just remind
Speaker 1: us is it basically online or no? Yeah, it's predominantly online.
Speaker 1: You know. We launched as a dt C brand, although
Speaker 1: we've opened thirteen stores this year, so we're gonna end
Speaker 1: there just shy of thirty stores around the country and
Speaker 1: one abroad in London. One of the stores you recently
Speaker 1: opened is here in New York City. How's it doing.
Speaker 1: It's off to an incredible start. Give us some numbers
Speaker 1: I wish I could share, but it's exceeding all of
Speaker 1: our expectations. You know, we came into the into New
Speaker 1: York knowing we had a strong eCOM customer there, but
Speaker 1: it's emerged as one of our top three stores in
Speaker 1: the country. Um and and exceeding all of our expectations.
Speaker 1: I'm gonna put you on the spot here, Joe uh.
Speaker 1: We often times here you're a in comparison to a
Speaker 1: company like Lulu, Lemon or Nike, but also makes me
Speaker 1: think of an East Coast competitor Roan. We had Night Check.
Speaker 1: It's on our program just a couple of weeks ago.
Speaker 1: How do you think of a competitor like Roan Do
Speaker 1: you see yourself competing in the same place in some respects,
Speaker 1: I think Nate and I both had a similar vision
Speaker 1: in terms of our launch to focus on men's first. UM.
Speaker 1: You know, we saw an open space there. We felt like,
Speaker 1: you know, the mail consumer was underserved in that market. UM.
Speaker 1: As we've you know, launched our businesses, we have very
Speaker 1: different aesthetics. You know, Viewory is based on the West coast.
Speaker 1: You know, Nate and Rowan are based on the East coast. UM.
Speaker 1: And then you know, I would say that, you know,
Speaker 1: we've really evolved to a dual gender brand. Fifty of
Speaker 1: our business today comes from women's UM. It's a very
Speaker 1: strong and fast growing aspect of our business. But you know,
Speaker 1: we both compete in this kind of you know, Wake
Speaker 1: that was created by Lulu Levin. You know, they were
Speaker 1: the first to kind of introduce um premium active in
Speaker 1: our in our category, and UM, you know, brands like
Speaker 1: FIORI have our own take clearly where we have a
Speaker 1: very differentiated proposition centered around our built to move in
Speaker 1: styled for life, philosophy. It's all about versatility. I think
Speaker 1: in a lot of respects Rown saw a similar opportunity
Speaker 1: back when they launched. That's Joe cood Love, the founder
Speaker 1: and CEO at VIORI. All right, you're listening to Bloomberg
Speaker 1: Business Week. Coming up by the crypto scene is alive
Speaker 1: and well in Miami, even after the collapse of f
Speaker 1: t X, which had pledged to make it the US
Speaker 1: crypto capital. A dispatch from the Magic City is coming
Speaker 1: up next. This is Bloomberg. You're listening to Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Stinovik
Speaker 1: from Bloomberg Radio. As we wrap up our program, we
Speaker 1: want to bring to your attention one of the most
Speaker 1: read stories on the Bloomberg from the week. That was
Speaker 1: Sam Bateman freed in his crypto exchange. F t X
Speaker 1: may have crashed and burned, and yet one city's digital
Speaker 1: asset Faithful are vowing to move forward with the disgrace
Speaker 1: company's plans to turned Miami into the U S crypto capital.
Speaker 1: Bloomberg Wealth Team reporter Amanda Gordon headed to Miami to
Speaker 1: check it out. Well for one thing, Why is something
Speaker 1: most read, it's because people feel a need to understand
Speaker 1: and process something that's going on that they know is relevant.
Speaker 1: And for the community of people who are in blockchain,
Speaker 1: who are you know? This is very new compared to say,
Speaker 1: the Wall Street dinner that I went to in New York.
Speaker 1: Still partying in New York too, But in any case,
Speaker 1: they um this is personal for them what's happened. There
Speaker 1: are people who know Sam Bankman Freed who it's not
Speaker 1: just people whose balance sheets are affected by him. There's
Speaker 1: an arena right there with FTX on it exactly. So
Speaker 1: I think what I learned in my travels is that
Speaker 1: Miami was a great place this past week for people
Speaker 1: in this field to get together and process what it
Speaker 1: what it means to them and their community, and to
Speaker 1: sort of defend the for with fervor, the optimism and
Speaker 1: excitement that they have for this actually being a really viable,
Speaker 1: important thing. It sounds like Amanda, so, was it awake
Speaker 1: or was it like a think tank? Or we have
Speaker 1: to double down after a crisis and figure it out?
Speaker 1: What do you do it awake? You drink? Right? I
Speaker 1: think it is that weird amalgam of you know, no
Speaker 1: one's like, you know, like flippantly ignoring what happened, um,
Speaker 1: And they understand the seriousness. And I know, I said,
Speaker 1: I sound serious for someone who got to see Grimes
Speaker 1: perform under Palm trees. Um. But it's like when I
Speaker 1: was talking about it with my co writer Phelippe Marcus,
Speaker 1: who's our new Miami bureau chief, super fun to pall
Speaker 1: around Miami with him, I said, it's laughing and crying
Speaker 1: that they're that they're doing. So that said, what about
Speaker 1: the hype of Miami as a crypto hub? And I
Speaker 1: think one thing I learned is that's a great place
Speaker 1: to gather in process, like any conference right eight. Like
Speaker 1: I was at the Versace Mansion talking to a producer
Speaker 1: for Beyonce album who wants to do a record on
Speaker 1: the blockchain, and I was like, how did you get
Speaker 1: into that? He's like, well, it's someone an entrepreneur on
Speaker 1: the blockchain that I met at Davos. But it's like
Speaker 1: a part of a circuit, like with milk in and
Speaker 1: so on, and a lot of interesting people to meet
Speaker 1: and to follow. That was Bloomberg Wealth Team reporter Amanda Gordon.
Speaker 1: Check out her full story online and on the Bloomberg Terminal,
Speaker 1: a really fun story and Carol, there's some great visuals
Speaker 1: in there too. Visuals. I mean she found F t
Speaker 1: X T shirts and garbage bags. She actually brought it
Speaker 1: in and you can find that on our twitter feed
Speaker 1: because we took some pictures. We were like, what do
Speaker 1: you have F d X T shirt? She promises she's
Speaker 1: not going to sell it on She's putting it in
Speaker 1: an a vault, giving it as a gift. I think
Speaker 1: you're right. She A'm not going to say who it's too,
Speaker 1: because it's one of our colleagues and I don't want
Speaker 1: him to, you know, I wanted to be surprised top secret.
Speaker 1: And that wraps up the weekend edition of Bloomberg Business
Speaker 1: Week from Bloomberg Radio. Thank you so much for joining us.
Speaker 1: A big thanks to Katie Greifeld and Mike Reagan for
Speaker 1: their how up over the last couple of weeks. I'm
Speaker 1: Carol Masser and I'm Tim Stanovik. Be sure to tune
Speaker 1: into Bloomberg Business Week Monday through Friday. It starts at
Speaker 1: two pm Wall Street Time on Bloomberg Radio. You can
Speaker 1: also watch your daily broadcast on YouTube. Just search Bloomberg
Speaker 1: Global News and check out our Bloomberg Business Week podcast.
Speaker 1: You can find that at Bloomberg dot com, Apple, or
Speaker 1: wherever you get your podcast. Bloomberg Business Week is available
Speaker 1: on newsstands now, at Bloomberg dot com and always on
Speaker 1: the Bloomberg Terminal. You can also see me on Bloomberg
Speaker 1: Quicktake available at bloomberg dot com, slash Qt, and streaming
Speaker 1: platforms like Roku, Apple TV, Samsung TV, and more. Have
Speaker 1: a great weekend everyone, Stay safe. This is Bloomberg