WEBVTT - Bloomberg Businessweek Weekend - November 23rd, 2019 0:00:02.520 --> 0:00:06.240 This is Bloomberg Business Week from Bloomberg Radio. I am 0:00:06.320 --> 0:00:08.920 Jason Kelly and I'm Carol Masser. Welcome to the Bloomberg 0:00:08.920 --> 0:00:12.120 Business Week Weekend Podcast. Can I just tell you I love, 0:00:12.320 --> 0:00:14.280 love love this Double Issue. I mean, we love the 0:00:14.320 --> 0:00:18.120 magazine every week, but I have to say so many 0:00:18.160 --> 0:00:21.000 great deep dives into stories and so many things. You're 0:00:21.000 --> 0:00:23.000 gonna be You're gonna read it and you're gonna walk away, 0:00:23.040 --> 0:00:24.560 are gonna listen to it? You're gonna walk away, And 0:00:24.560 --> 0:00:27.240 like I didn't know that. We have some clear highlights 0:00:27.320 --> 0:00:30.280 from the issue in this week's show. Also next week 0:00:30.320 --> 0:00:32.600 show we're gonna have even more. But some of the 0:00:32.600 --> 0:00:35.599 stories that really jump out to me at the Barclays 0:00:35.640 --> 0:00:38.560 story is so compelling. Yeah. Absolutely, And we also have 0:00:38.640 --> 0:00:41.640 some highlights from our daily show because we caught up. 0:00:41.680 --> 0:00:44.479 We talked a little bit about the elections women in 0:00:44.560 --> 0:00:47.640 the upcoming elections, how the pipeline is definitely building, so 0:00:47.720 --> 0:00:51.680 we'll talk about that. Also, apparently recession, don't worry about it. 0:00:51.680 --> 0:00:53.959 It's all good here in the United happen three months ago, 0:00:54.120 --> 0:00:56.760 don't worry. That's according to our economics editor as well 0:00:56.800 --> 0:00:59.520 as the CEO of visa. Plus, we've got a conversation 0:00:59.560 --> 0:01:02.080 with the c of Tiffany after the news this week 0:01:02.160 --> 0:01:05.360 that Luxury Brand LVMH has entered talks to buy the 0:01:05.440 --> 0:01:07.920 jewelry maker. Apparently they up their bid and so now 0:01:07.959 --> 0:01:12.360 the two companies are talking. Talk about fortuitous because the 0:01:12.440 --> 0:01:14.520 year ahead Luxury this is an event that we do 0:01:14.560 --> 0:01:17.240 at Bloomberg every year. They had already scheduled for the 0:01:17.280 --> 0:01:19.560 CEO of Tiffany to come in and he was gracious 0:01:19.680 --> 0:01:22.040 enough to stick around and really answer a bunch of questions. 0:01:22.160 --> 0:01:24.479 Much more of that ahead, but we begin with our 0:01:24.520 --> 0:01:28.480 top stories. A busy week in d C with impeachment hearings, 0:01:28.520 --> 0:01:31.040 trade talks, hitting a series of road bumps. Let's break 0:01:31.080 --> 0:01:35.240 it down with Ryan te beckwith in d C. So Ryan, 0:01:36.520 --> 0:01:39.640 help us understand everything that happened there in the nation's capital. 0:01:39.760 --> 0:01:43.959 This was a long week and the sal The testimony 0:01:43.959 --> 0:01:48.680 on Wednesday established pretty definitively that there was at least 0:01:48.760 --> 0:01:52.720 one quid pro quo um holding out the White House 0:01:52.880 --> 0:01:57.480 meeting and exchange for investigations into the bidens um. San 0:01:57.560 --> 0:02:01.600 Land testified that he was not definitively sure that there 0:02:01.640 --> 0:02:04.480 was a second quid pro quo on the aid. But 0:02:04.680 --> 0:02:09.239 that establishes this sort of pattern. And as the questioners, 0:02:09.800 --> 0:02:12.320 the Democratic questioners sort of made clear, a White House 0:02:12.400 --> 0:02:15.760 visit is an official act, which would be the statutory 0:02:15.880 --> 0:02:19.280 term for something that could be considered uh, a thing 0:02:19.320 --> 0:02:22.359 of value in a in a bribery case, So they 0:02:22.400 --> 0:02:25.600 could have is an article of impeachment itself, just on 0:02:25.720 --> 0:02:27.799 holding out the promise of a White House visit in 0:02:27.880 --> 0:02:31.760 exchange for a personal favor to of investigating the bidens. 0:02:31.760 --> 0:02:33.680 All right, Ryan, as you said, a very long weeks, 0:02:33.680 --> 0:02:35.840 so we had the impeachment hearing is going on. We 0:02:35.960 --> 0:02:38.679 also had trade talks again. And I feel like I've 0:02:38.680 --> 0:02:40.720 said this so much over the last few years in 0:02:40.840 --> 0:02:43.440 terms of US trying to trade negotiations. Two steps forward, 0:02:43.520 --> 0:02:47.160 one step back. Where are we? I mean, it's it 0:02:47.440 --> 0:02:50.839 exists in a nebulous zone right now. Trump has been 0:02:51.400 --> 0:02:55.040 using Twitter to argue that Democrats should be somehow advancing 0:02:55.360 --> 0:02:59.720 UH trade deal that he hasn't sent to them. Um. 0:02:59.760 --> 0:03:03.640 I actually think that the impeachment means that both on 0:03:03.680 --> 0:03:06.680 the domestic side, that both Trump and Democrats will want 0:03:06.720 --> 0:03:08.880 to do it. For Democrats, it's a way of saying, look, 0:03:09.080 --> 0:03:11.639 we're not just out to get Trump. Um, we'll work 0:03:11.680 --> 0:03:13.560 with him on something we can agree on. And this 0:03:13.639 --> 0:03:15.600 is one of the few things that they both agree 0:03:15.600 --> 0:03:18.680 on and have made some progress on. Like they agree 0:03:18.680 --> 0:03:21.320 on infrastructure, but they've made no progress on that. All right, 0:03:21.400 --> 0:03:23.520 Ryan tick beckwith We're gonna leave it there. Thank you 0:03:23.560 --> 0:03:27.239 so much for wrapping up a very busy week in Washington. 0:03:27.400 --> 0:03:30.639 Well from DC to London. Story the magazine on how 0:03:30.720 --> 0:03:34.560 breaks its chaos. It's opening cracks in the U K's 0:03:34.840 --> 0:03:38.640 three hundred year plus union. Yeah, this is also going 0:03:38.640 --> 0:03:41.560 on this week, A televised debate and election campaigns also 0:03:41.600 --> 0:03:44.080 picking up momentum. Let's head to Lund and check in 0:03:44.080 --> 0:03:46.480 with Tim Ross. So much going on, busy here in 0:03:46.480 --> 0:03:49.520 the States, busy over in the UK. Let's talk about 0:03:49.560 --> 0:03:53.320 the election trail on News from Eric. There was a 0:03:53.400 --> 0:03:55.360 lot of momentum, Tim, what's the momentum that we need 0:03:55.400 --> 0:03:59.360 to know about as investors. One of the moments the 0:03:59.560 --> 0:04:02.840 concept of party is still ahead comfortably in the opinion 0:04:02.880 --> 0:04:06.720 polls of Jeremy Corbyn's Labor Party. But in the first 0:04:06.760 --> 0:04:09.640 of the televised debates between Boris Johnson, the Prime Minister 0:04:09.680 --> 0:04:12.920 and tour leader, and Jeremy Corbyn, who is challenging him 0:04:12.960 --> 0:04:16.000 from a really quite a hard left wing socialist angle. 0:04:16.640 --> 0:04:18.400 They ended in a bit of a drawer. It was 0:04:18.400 --> 0:04:21.080 a kind of stalemate. Everyone was really expecting Johnson, or 0:04:21.080 --> 0:04:23.240 most people were expecting Johnson to do well. He's a 0:04:23.240 --> 0:04:26.800 famous campaigner. He won the Brexit campaign for those pro 0:04:27.120 --> 0:04:30.400 leave voters in twenties sixteen. He's won two terms as 0:04:30.480 --> 0:04:33.120 London mayor, and he was picked really by the Tories 0:04:33.200 --> 0:04:35.359 as someone who could defeat Corbyn. But in that first 0:04:35.360 --> 0:04:38.559 debate on Tuesday night it was declared a draw. Really 0:04:38.600 --> 0:04:41.440 in the first opinion poll that was taken afterwards, that 0:04:41.520 --> 0:04:43.440 hasn't really moved the dial in terms of where the 0:04:43.480 --> 0:04:47.040 party stand. But Corbyn isn't doing terribly and Johnson isn't 0:04:47.080 --> 0:04:50.520 doing brilliantly at the moment, and so as we look ahead, 0:04:50.640 --> 0:04:53.560 it feels like we're working under the assumption there is 0:04:53.600 --> 0:04:57.080 going to be some sort of Brexit, and as we 0:04:57.160 --> 0:05:00.880 think about the implications of that, they are real implications 0:05:01.040 --> 0:05:05.360 if you look especially north of where you are to Scotland, 0:05:05.640 --> 0:05:10.240 and that figures into a much larger and maybe in 0:05:10.279 --> 0:05:13.360 some ways more limited future for the United Kingdom. Tell 0:05:13.400 --> 0:05:16.200 us what you've learned. Well, as in the magazine this week, 0:05:16.240 --> 0:05:18.800 we have a story in there about the future of 0:05:18.800 --> 0:05:21.800 the UK potentially being at stake in this election. If, 0:05:21.839 --> 0:05:26.719 for example, the Conservative Party doesn't get that majority, and 0:05:26.800 --> 0:05:30.159 if the Labor Party managed to squeeze into power with 0:05:30.200 --> 0:05:33.880 the support of potentially the Scottish Nationalists who are saying 0:05:33.920 --> 0:05:37.040 they would they would help get Jeremy Corbyn into ten 0:05:37.120 --> 0:05:40.599 Downing Street. That would give the pro independence campaigns in 0:05:40.640 --> 0:05:43.400 Scotland a really big boost, the kind of boost they 0:05:43.400 --> 0:05:47.040 haven't really had since Scotland voted in its own referendum 0:05:47.040 --> 0:05:50.320 in twenty fourteen on the question of whether to break 0:05:50.320 --> 0:05:53.520 away from the UK. Nicolas Sturgeon is this sort of 0:05:53.600 --> 0:05:57.520 tough firebrand leader of the Scottish National Party and she 0:05:57.680 --> 0:06:01.000 is very sure that Brexit means Poland must now get 0:06:01.000 --> 0:06:03.360 a vote on its own future and whether to break 0:06:03.360 --> 0:06:05.320 away from the rest of the UK. And if she 0:06:05.400 --> 0:06:08.240 helps Jeremy Corbyn get into power, he might just give 0:06:08.279 --> 0:06:10.919 her that vote. That's tim ross. And like we kidded 0:06:10.960 --> 0:06:13.600 with Ryan T. Beckwith about how busy it was over 0:06:13.680 --> 0:06:16.200 in Washington and just the US at large, but it 0:06:16.279 --> 0:06:18.560 was really very busy over the UK as well well, 0:06:18.600 --> 0:06:20.440 and the next couple of weeks are really going to 0:06:20.600 --> 0:06:23.880 determine the fate of the United Kingdom in many ways. 0:06:23.920 --> 0:06:26.760 And if you look out two years, certainly ten years, 0:06:26.960 --> 0:06:30.200 it could be a radically different kingdom as it were 0:06:30.520 --> 0:06:33.400 than we saw. This has been effectively in place for 0:06:33.440 --> 0:06:36.000 three years, right, a reminder it's not just about Brexit, 0:06:36.040 --> 0:06:38.800 but it's about really the fate of the UK going forward. 0:06:44.880 --> 0:06:47.760 So we talk often about the importance of building pipelines 0:06:47.800 --> 0:06:50.000 as a necessary way to create more diversity, more women 0:06:50.080 --> 0:06:52.120 in both the public and private sectors. Here with what 0:06:52.200 --> 0:06:55.080 we've learned since the mid terms and how she's working 0:06:55.080 --> 0:06:57.720 to get more women in the pipeline aeron Loostro. She's 0:06:57.760 --> 0:07:00.279 back with us, founder and CEO of she should Run, 0:07:00.400 --> 0:07:02.720 and she's of course typically based in Washington, d C. 0:07:02.920 --> 0:07:05.880 She's back here in the Bloomberg headquarters, specifically in our 0:07:05.880 --> 0:07:08.599 Bloomberg Interactive Broker studios. So nice to have you back. 0:07:08.720 --> 0:07:12.000 Thank you, Carol. Um tell us about where we are 0:07:12.160 --> 0:07:14.960 when it comes to the prospect of more women making 0:07:14.960 --> 0:07:19.480 their way into elected office. Sure, so, uh, you know, 0:07:19.480 --> 0:07:22.080 I'll start by saying that a lot of folks are 0:07:22.280 --> 0:07:27.280 particularly interested in was een a moment in time? Was 0:07:27.320 --> 0:07:29.600 it a surge that would pass? And what we're seeing 0:07:29.600 --> 0:07:33.040 in the numbers so far is we're sustaining the momentum, 0:07:33.440 --> 0:07:36.840 continuing to grow the pipeline UM. And I think there's 0:07:36.840 --> 0:07:39.080 some really interesting stories to tell that look quite different 0:07:39.080 --> 0:07:41.640 than twenty and even and so, Aaron, as you look 0:07:41.680 --> 0:07:47.120 across the success stories, what do you take away that 0:07:47.120 --> 0:07:49.760 that might be a through line? Obviously every race is 0:07:49.800 --> 0:07:52.920 a little bit different, but where have you seen things 0:07:52.960 --> 0:07:55.400 where you said, Okay, we should do that again? You know. 0:07:55.440 --> 0:07:58.800 I think what's most interesting is that a lot of 0:07:58.840 --> 0:08:02.000 the research around with been running UM points to the 0:08:02.040 --> 0:08:04.960 need to recruit women, to encourage women to run for office. 0:08:05.000 --> 0:08:08.600 This is all still true. It's a mostly a man's 0:08:08.640 --> 0:08:12.360 game with his you know, record our majority men in office, 0:08:12.400 --> 0:08:15.280 it's not surprising to see men are more likely to 0:08:15.280 --> 0:08:18.000 be recruited. But what we're seeing that's different is that 0:08:18.080 --> 0:08:21.280 women are now increasingly saying, Okay, I'm gonna run. I'm 0:08:21.280 --> 0:08:24.640 gonna run just like I am, and UM and the 0:08:24.720 --> 0:08:29.200 voters are hungry. I think UM for that variety. And 0:08:29.200 --> 0:08:31.280 and while we're not there yet, I wouldn't say we're 0:08:31.280 --> 0:08:34.680 totally normalized and seeing women in positions of political power. 0:08:35.080 --> 0:08:38.320 It's becoming more and more normal to see women to 0:08:38.400 --> 0:08:41.160 tell their stories. And I think as we continue to 0:08:41.200 --> 0:08:43.360 see that, we will continue to see more women's up 0:08:43.360 --> 0:08:45.520 war work. Because you said earlier, different stories to tell 0:08:45.520 --> 0:08:48.480 than is that what's different? Yeah, you know, what's what? 0:08:48.880 --> 0:08:51.520 Two things that I want to plant. One is um, 0:08:51.559 --> 0:08:54.680 you know, we we absolutely see a record number of 0:08:54.679 --> 0:08:58.640 women on the ballot already. UM. What's super interesting to 0:08:58.640 --> 0:09:01.760 me is it's a Republican story. So UM, last year 0:09:01.760 --> 0:09:04.680 at this time there was a story of a record 0:09:04.760 --> 0:09:07.080 number women on the ballot, but it was primarily Democratic women. 0:09:07.160 --> 0:09:11.240 This year, we actually have registered to run UM for 0:09:11.320 --> 0:09:15.880 federal office, double the number of Republican female candidates than 0:09:15.920 --> 0:09:18.480 we did last year at the same time. So, you 0:09:18.520 --> 0:09:20.959 know that we saw this in the In the outcome 0:09:20.960 --> 0:09:23.520 of the election in eighteen, there was little to no 0:09:23.720 --> 0:09:26.680 gain In some places, Republican women actually went backwards in 0:09:26.679 --> 0:09:30.319 their percentage of UM of political power, and so that's 0:09:30.400 --> 0:09:33.640 absolutely needed to change. You know. Look, I think there's 0:09:33.679 --> 0:09:37.920 there's a really high number of incumbent Republican men who 0:09:38.040 --> 0:09:41.240 have announced they're not running for re election, which opens 0:09:41.320 --> 0:09:44.079 up I mean tremendous opportunity. It's really difficult to beat 0:09:44.080 --> 0:09:46.720 an incumbent on the Democratic side. What we're seeing is 0:09:46.840 --> 0:09:52.240 a record number of UM challengers to incumbents UM, which 0:09:52.360 --> 0:09:55.600 some could point to examples like Alexandra Casio Quartets and 0:09:55.679 --> 0:09:58.720 say not surprising, right, Well, because that was one where 0:09:58.760 --> 0:10:01.400 it seemed like the longest of long shots and then 0:10:01.600 --> 0:10:03.000 it happened. I mean, this is one of the most 0:10:03.000 --> 0:10:06.160 senior members of the House, Joe Crowley, that she of 0:10:06.200 --> 0:10:13.080 course defeated. How does it being a presidential year change things? 0:10:13.160 --> 0:10:17.400 Obviously you get bigger voter turnout typically. Uh does that 0:10:17.520 --> 0:10:20.640 change your calculus at all who you go after, who 0:10:20.679 --> 0:10:24.800 you recruit? Yeah, I mean it does, and that I mean, look, women, 0:10:25.000 --> 0:10:27.560 since I think sixty four have been the majority of 0:10:27.640 --> 0:10:32.240 voters in elections, and that will I'm sure remain true this. Uh, 0:10:32.280 --> 0:10:35.440 in elections, do women tend to vote for other women? 0:10:35.880 --> 0:10:38.079 You have any research on that yet? No, I don't. 0:10:38.120 --> 0:10:40.000 You know, I can't point to it because we talked 0:10:40.000 --> 0:10:42.640 about in the business community, even like female venture capitalists 0:10:42.640 --> 0:10:45.959 don't always aren't very supportive of other women entrepreneurs. So 0:10:46.000 --> 0:10:47.959 I just wondered if there's anything no and it plays 0:10:48.000 --> 0:10:50.760 out politically, absolutely, And I'd love to say that, you know, 0:10:50.760 --> 0:10:52.720 I'm not privy to research that you look at and 0:10:52.760 --> 0:10:56.160 say women are really tough on other women, you know. 0:10:56.240 --> 0:10:58.360 I mean, there's this issue that we face around women 0:10:58.440 --> 0:11:01.400 running probably number one issues around likability. Women have to 0:11:01.440 --> 0:11:04.160 be likable. Men don't have to be likable. So what 0:11:04.200 --> 0:11:07.640 does that mean for women who are running um Women 0:11:07.840 --> 0:11:10.440 hold them to that high of a standard too around 0:11:10.520 --> 0:11:13.360 likability and qualifications, so we're a long way to go there. Well, 0:11:13.360 --> 0:11:15.480 and I do wonder about likability what does it mean 0:11:15.640 --> 0:11:18.040 for a woman because I think I'm going to say 0:11:18.040 --> 0:11:20.439 I think it's more complicated because I think some people 0:11:20.520 --> 0:11:23.800 like women who are very successful and driven and career 0:11:23.840 --> 0:11:26.720 driven and strong, and some want them to be like 0:11:26.840 --> 0:11:29.200 the person you know, your next door neighbor who's watching kids. 0:11:29.480 --> 0:11:31.640 All of it valuable. I'm not making any judgment call, 0:11:31.679 --> 0:11:34.240 but I do wonder what's likable in the environment like 0:11:34.280 --> 0:11:36.000 today or does it come down to policies and what 0:11:36.040 --> 0:11:37.960 they stand for. It really does feel like something you 0:11:38.000 --> 0:11:40.280 can't win, you know, if you if you're if you're 0:11:40.400 --> 0:11:43.800 too assertive, then that's that's no good. If you're you know, 0:11:44.080 --> 0:11:48.319 too soft, Um, that's no good. And I think until 0:11:48.360 --> 0:11:49.960 we get to a place where we have critical mass 0:11:50.000 --> 0:11:53.040 of women serving in elected office and those examples to 0:11:53.080 --> 0:11:55.000 point to, we're going to continue to struggle with this. 0:11:55.720 --> 0:11:59.360 So you mentioned uh, Alexandro Castio Cortez, who obviously has 0:11:59.400 --> 0:12:02.959 become our pbably one of the most prominent politicians in America. 0:12:03.480 --> 0:12:05.120 There is this whole notion We've talked about it a 0:12:05.120 --> 0:12:07.320 lot on this show, the whole notion of you know, 0:12:07.400 --> 0:12:09.520 if you can see it, you can be it. That 0:12:09.520 --> 0:12:14.000 that idea Nancy Pelosi sort of coming back to being 0:12:14.120 --> 0:12:17.640 one of the most senior politicians in the US. Has 0:12:17.720 --> 0:12:22.560 that changed the calculus at all? And this crop of 0:12:22.840 --> 0:12:27.880 new women legislate tours, what is the ultimate impact there? Yeah, Look, 0:12:27.920 --> 0:12:32.040 it's the it's the most diverse Congress that we've ever seen, 0:12:32.280 --> 0:12:36.559 and it absolutely changes who who's thinking about running, who 0:12:36.760 --> 0:12:40.000 who looks forward and says, um, you know, maybe maybe 0:12:40.000 --> 0:12:42.000 I can see myself in that role we and she 0:12:42.040 --> 0:12:44.440 should run. Focus primarily on women who are running at 0:12:44.440 --> 0:12:46.480 the local level, and that's where we see a huge 0:12:46.480 --> 0:12:49.040 effect because you know, when you when you sort of 0:12:49.040 --> 0:12:52.720 only see one type of person serving in elected office. 0:12:52.840 --> 0:12:54.760 You look at that and you say, no way, that's 0:12:54.800 --> 0:12:57.800 not me, No chance, I'm not qualified. You go through 0:12:57.800 --> 0:13:00.559 all of the issues. But as we continue to diversify 0:13:00.640 --> 0:13:03.559 that that representation, I think, you know, it's anybody, it's 0:13:03.559 --> 0:13:06.320 anybody's game. Then well, and I do wonder about you know, 0:13:06.400 --> 0:13:07.800 but there's a stat in some of the research that 0:13:07.840 --> 0:13:11.040 you sent over that the World Economic Form recently rejected 0:13:11.080 --> 0:13:13.480 that we are a staggering at two eight years away 0:13:13.480 --> 0:13:16.720 from gender equality in the US. UM. That just hurts 0:13:16.760 --> 0:13:19.800 me so so much. UM. In terms of what you're 0:13:19.800 --> 0:13:22.080 seeing politically, do you feel like though, and the momentum, 0:13:22.080 --> 0:13:25.720 as you said, it feels like it's really really strong. Um. 0:13:25.760 --> 0:13:29.680 Could we see parody a lot closer in terms of Congress? Yes, 0:13:29.720 --> 0:13:32.600 My hope is that there's a snowball effect here. Absolutely, 0:13:32.640 --> 0:13:34.120 we continue at the rate that we're at, it's going 0:13:34.160 --> 0:13:35.800 to take a really long time. This will not happen 0:13:35.800 --> 0:13:38.680 in our lifetime. But you know that we we actually 0:13:38.679 --> 0:13:41.319 just launched a program called Role Call that gets right 0:13:41.360 --> 0:13:45.760 at this, which is, UM. What we saw of individuals 0:13:45.760 --> 0:13:48.440 coming to us is, you know, across the board, people 0:13:48.440 --> 0:13:51.600 who are catalysts within their business, within UM, you know, 0:13:51.920 --> 0:13:55.840 within their education setting, within their communities that said, we 0:13:55.880 --> 0:13:58.560 want to do something to be helpful. But um, but 0:13:58.559 --> 0:14:01.640 but I'm not the candidates, So what can I do? Right? 0:14:01.760 --> 0:14:05.000 And so what we've done is build the platform to say, look, 0:14:05.000 --> 0:14:07.240 we're if we want to solve this in less than 0:14:07.559 --> 0:14:09.679 you know what the World Economic Forum is telling us, 0:14:09.679 --> 0:14:11.920 then we all have to step up and do something 0:14:12.040 --> 0:14:14.080 and those little some things will add up to something 0:14:14.080 --> 0:14:16.679 really big. That's Aaron Lows Catrero, she's the CEO of 0:14:16.760 --> 0:14:19.520 She should run. And you know the work that they've 0:14:19.560 --> 0:14:22.080 been doing. It's all about getting more women to step 0:14:22.160 --> 0:14:24.680 up to the plate to consider running for office. And 0:14:24.680 --> 0:14:26.960 that's what it is. Building the pipeline, and we sought 0:14:27.000 --> 0:14:29.800 payoff in the mid terms. We've see it playing out 0:14:30.120 --> 0:14:33.000 and they're working harder than ever for the upcoming election. 0:14:38.240 --> 0:14:42.960 Curly Holdings beating revenue estimates, reporting its second consecutive quarter profitability. 0:14:43.080 --> 0:14:45.280 It's indicating that the large U S pot companies man 0:14:45.320 --> 0:14:49.440 they are outperforming their Canadian counterparts. Let's talk about the business, 0:14:49.440 --> 0:14:51.960 the quarter, the outlook. Borce Jordan is with us. He 0:14:52.280 --> 0:14:57.040 is UM executive chairman at CUA Leth're based in Wakefield, Massachusetts. 0:14:57.160 --> 0:15:00.240 Nice to have you here with us. Good quarter. Yeah, 0:15:00.240 --> 0:15:03.000 it worked out for us, Hey to continue. Yeah, I 0:15:03.040 --> 0:15:05.760 think you know, we're seeing substantial growth in the US. 0:15:05.920 --> 0:15:08.320 Most of the companies are growing around twenty five to 0:15:08.400 --> 0:15:12.160 thirty five quarter on quarter. I don't see that abating 0:15:12.200 --> 0:15:14.080 any time soon, to be honest, because we're still very 0:15:14.120 --> 0:15:16.760 early days. And more importantly, I think you're starting to 0:15:16.760 --> 0:15:18.640 see inflection points in a lot of the big companies, 0:15:18.640 --> 0:15:20.000 at least a purely if we saw it in the 0:15:20.080 --> 0:15:23.440 last quarter, and we're starting to see increases in profitability 0:15:23.520 --> 0:15:26.160 quarter on quarter, what's it? What's what's making that possible that? 0:15:26.360 --> 0:15:29.800 You know, it's just the it's really about scale, size 0:15:29.800 --> 0:15:31.760 and investment. So you know, we spent the last five 0:15:31.840 --> 0:15:34.840 years investing heavily building it all out, taking a lot 0:15:34.840 --> 0:15:37.000 of losses on those investments, obviously in the early days. 0:15:37.440 --> 0:15:39.960 But now that those investments are at scale, we're starting 0:15:40.000 --> 0:15:43.520 to see the benefits of that investment period, and every 0:15:43.560 --> 0:15:45.720 quarter more and more goes to the bottom line. Uh, 0:15:45.800 --> 0:15:48.400 there's a lot of deal making, it feels like going 0:15:48.400 --> 0:15:51.280 on at your shop and elsewhere where. Are we in 0:15:51.360 --> 0:15:55.880 that process? Of acquisitions, expansion, etcetera. I think you're going 0:15:55.960 --> 0:15:59.080 to see a slowdown and major transactions because I think 0:15:59.120 --> 0:16:00.920 there's an issue with appital right now. As you know, 0:16:01.000 --> 0:16:03.360 this sector has been down and beating up pretty hard 0:16:03.360 --> 0:16:06.920 over the last six months, largely due to Canadian performance 0:16:06.960 --> 0:16:09.720 and due to the fact that the Canadian market historically 0:16:09.760 --> 0:16:12.760 has been the bell weather market for for cannabis stocks. 0:16:13.000 --> 0:16:15.480 We've sort of followed suit with them, even though our 0:16:15.480 --> 0:16:18.200 companies here have been performing much better. We hope that 0:16:18.200 --> 0:16:20.360 that trend will break in the U S companies will 0:16:20.360 --> 0:16:23.240 start to outperform, but for the time being we've been 0:16:23.360 --> 0:16:25.480 basically tied at the hip with the Canadian companies. It 0:16:25.520 --> 0:16:27.080 was interesting. It was a reminder to all of us 0:16:27.160 --> 0:16:29.000 at the year ahead. Joe Is already sat down with 0:16:29.040 --> 0:16:31.240 me of our cure LEAEF of course, and talked to 0:16:31.280 --> 0:16:34.000 us and saying reminded us that in every state, because 0:16:34.000 --> 0:16:35.920 of the way the law is right now, you've got 0:16:35.920 --> 0:16:38.160 to set up your integration from A to Z. Right 0:16:38.200 --> 0:16:40.240 you can't kind of do it across states because it's 0:16:40.280 --> 0:16:43.440 illegal to do that. And I do wonder that if 0:16:43.520 --> 0:16:46.840 we can figure out some kind of federal legislation. What 0:16:46.880 --> 0:16:48.880 would that do to the growth of your business? Well, 0:16:48.920 --> 0:16:50.840 I think first of all, we actually got a ruling 0:16:50.840 --> 0:16:54.040 from the Judiciary Committee in Congress, first time Congress has 0:16:54.080 --> 0:16:56.840 ever ruled on legalization of Cannada. So we have had 0:16:56.880 --> 0:17:00.080 a vote and it was able to get something. So 0:17:00.080 --> 0:17:02.240 so there's definitely something going on. I think that if 0:17:02.240 --> 0:17:04.960 they can take their mind off impeachment for five minutes, 0:17:05.080 --> 0:17:07.800 maybe we'd actually get some legislation in the country. But 0:17:07.880 --> 0:17:10.320 I listen, I think that the market would the industry 0:17:10.320 --> 0:17:14.000 would change for sure, So I think growth would go exponential. 0:17:14.480 --> 0:17:16.200 But I think that what mean does that mean? Because 0:17:17.359 --> 0:17:19.600 because today it's only thirty three don't forget it's only 0:17:19.600 --> 0:17:21.920 thirty three states in the country that are are are 0:17:21.960 --> 0:17:24.600 either medical or recreational. There's only eight and are recreational, 0:17:24.880 --> 0:17:26.960 and so that would mean the whole country it would 0:17:27.040 --> 0:17:29.920 be free to be able to trade by cell cannabis. 0:17:30.000 --> 0:17:32.800 So obviously that would be tremendous growth to the sector. 0:17:33.200 --> 0:17:36.359 But because everybody is siloed at the moment um, I 0:17:36.400 --> 0:17:38.880 think that it would depend on how the legislation comes through, 0:17:38.880 --> 0:17:41.600 whether the states continue to hold power over licensing, or 0:17:41.600 --> 0:17:44.000 whether that would go federal and I think that that 0:17:44.000 --> 0:17:46.200 that's the big unknown, and which is why I think 0:17:46.200 --> 0:17:48.959 if you ask anyone in the sector, they would prefer 0:17:49.400 --> 0:17:53.480 slow legalization, so in other words, not in one day, 0:17:53.520 --> 0:17:55.840 but over a period of time, so that the industry 0:17:55.840 --> 0:17:58.760 could adjust to what the new rules. A perfect examples 0:17:58.760 --> 0:18:01.879 would happen with hemp. Right, congres came out legalized hemp, 0:18:02.200 --> 0:18:04.280 and now you have a total catastrophe in the market 0:18:04.480 --> 0:18:07.600 that hemp rotting in fields in Kentucky because there's no 0:18:07.720 --> 0:18:10.640 rules for CBD. I mean, hemp in and of itself 0:18:10.720 --> 0:18:13.760 isn't a particularly interesting product unless you can use derive 0:18:13.840 --> 0:18:17.040 CBD from it. But they don't have any regulations on CBD, 0:18:17.200 --> 0:18:19.840 so it's all the CBD sales are down and you've 0:18:19.840 --> 0:18:21.840 got hemp brought in. Because if FDA hasn't come out 0:18:21.880 --> 0:18:23.960 with rules, and the FDA is giving it an indication, 0:18:24.000 --> 0:18:26.200 it could take two years to come out with rules. 0:18:26.400 --> 0:18:29.040 So that's what we're hoping doesn't happen in cannabis. You know, 0:18:29.119 --> 0:18:30.720 you worked on Wall Street back in the day where 0:18:30.720 --> 0:18:32.919 you worked in emerging markets, you worked for kid or 0:18:32.960 --> 0:18:35.119 you worked for Credit Swis. It feels like we've been 0:18:35.160 --> 0:18:37.800 in this couple of years with investors trying to figure 0:18:37.840 --> 0:18:41.000 this market out. Do they get it at this point 0:18:41.119 --> 0:18:45.200 and how or if they don't, what's it gonna take 0:18:45.240 --> 0:18:48.080 for people to fully understand the opportunity and maybe some 0:18:48.160 --> 0:18:50.320 of the complexity. So the difference I I like to 0:18:50.400 --> 0:18:52.399 use the example of emerging markets, and I was a 0:18:52.520 --> 0:18:54.639 very early investor in a lot of the emerging markets. 0:18:54.680 --> 0:18:57.760 And the difference between emerging markets and this cannabis market 0:18:57.840 --> 0:19:02.280 is that there you basically knew that as the country progressed, 0:19:02.680 --> 0:19:05.840 as the country wrote more legislation, as the regulators became 0:19:05.840 --> 0:19:09.679 more sophisticated, the next wave of capital would come. The 0:19:09.760 --> 0:19:12.920 issue here is that the industry is actually quite sophisticated. 0:19:12.920 --> 0:19:16.359 The regulators are there, but it's federally legal, so a 0:19:16.400 --> 0:19:19.160 lot of money can't invest. And that's why you're seeing 0:19:19.240 --> 0:19:21.720 US tied to the Canadian stocks because there's a lot 0:19:21.760 --> 0:19:25.119 more eyes on Canada, even though the industry is damaged 0:19:25.160 --> 0:19:27.720 and it's a lot smaller than the US companies. But 0:19:28.560 --> 0:19:31.560 everyone can invest in Canadian stocks, whereas not everyone can 0:19:31.600 --> 0:19:33.440 buy the U S stocks. So what's the reality in 0:19:33.520 --> 0:19:36.520 terms of a timetable that we do get a federal regulation, 0:19:36.960 --> 0:19:40.480 you know, on cannabis. We are pretty comfortable that the 0:19:40.560 --> 0:19:43.320 votes are everywhere for Safe Fact, which is the Banking Act. 0:19:43.800 --> 0:19:45.800 So if that happens, that will be the first step. 0:19:46.119 --> 0:19:48.200 The second step will be States Act, and if we 0:19:48.280 --> 0:19:50.120 get States Act, then the next step after that will 0:19:50.160 --> 0:19:52.760 be full legalization. Uh. And I think that we have 0:19:52.800 --> 0:19:57.760 a chance of getting Safe Fact December January. Really we 0:19:57.840 --> 0:20:00.119 have the votes. It's a question with do they have 0:20:00.240 --> 0:20:03.640 time with impeachment to actually focus on legislation. And that's 0:20:03.720 --> 0:20:07.119 Boris Jordan's he is the executive chairman of cure Leaf. 0:20:07.280 --> 0:20:10.640 Talking with him obviously about the numbers they reported earnings 0:20:10.680 --> 0:20:15.360 this week, but the broader opportunity in cannabis US versus Canada, 0:20:15.680 --> 0:20:18.920 even getting in a little bit to the vaping controversy 0:20:18.960 --> 0:20:22.040 that has really consumed the public health debate of Right 0:20:22.119 --> 0:20:24.720 and his expectations in terms of the regulatory environment which 0:20:24.720 --> 0:20:28.480 could really open up the industry. The UK Supreme Court 0:20:28.520 --> 0:20:31.000 weillll the hearing next week involving Barkley's Bank and the 0:20:31.080 --> 0:20:34.399 issue of responsibility involving a group of Barkley's employees. It's 0:20:34.440 --> 0:20:37.320 a very specific case, a disturbing one, and it's a 0:20:37.359 --> 0:20:39.480 case with an outcome that could have implications for the 0:20:39.480 --> 0:20:42.320 gig economy Jason. It also raises questions too about Wall 0:20:42.359 --> 0:20:46.160 Street responsibility and getting away with something. Once again, Max 0:20:46.200 --> 0:20:48.960 Abelson is here with us in New York. This is 0:20:48.960 --> 0:20:51.240 a story he's been working on for some time. Max, 0:20:51.280 --> 0:20:53.359 great to see you. Thanks for having all right, So 0:20:53.480 --> 0:20:57.360 tell us how this story came about. I mean, honestly, 0:20:57.640 --> 0:20:59.520 it was a long time ago. A couple of months 0:20:59.640 --> 0:21:02.400 have on buy since I was sitting on my Bloomberg 0:21:02.480 --> 0:21:05.080 terminal and I saw a story by Kay Wiggins, who's 0:21:05.119 --> 0:21:07.760 a was a great legal correspondent here. She since left 0:21:07.760 --> 0:21:11.040 Bloomberg News. UM. She writes in England about the lawn. 0:21:11.080 --> 0:21:14.000 She wrote maybe a four paragraph story that said that 0:21:14.640 --> 0:21:17.240 a group of claimants, which are what plaintiffs in England 0:21:17.280 --> 0:21:21.919 are called UM, said that when they were teenagers and 0:21:21.960 --> 0:21:25.080 they were applying for jobs at Barclay's sort of low 0:21:25.160 --> 0:21:30.119 level branch jobs in Newcastle, which is northeast city in 0:21:30.480 --> 0:21:34.480 in England in that area, they said that Barclays said, Okay, 0:21:34.520 --> 0:21:38.080 you have the job, but you have to go see 0:21:38.119 --> 0:21:41.000 a doctor. And you have to go see this doctor's 0:21:41.040 --> 0:21:42.840 name is Gordon Bates and you have to go to 0:21:42.880 --> 0:21:46.879 his house. And these people said that Dr Bates um 0:21:46.920 --> 0:21:50.840 sexually assaulted them, um about a hundred and twenty of them, 0:21:50.880 --> 0:21:53.679 and they wanted to hold Barclays responsible because Barclay's had 0:21:53.720 --> 0:21:56.960 sent them to him. And they won, and then Barclay's 0:21:56.960 --> 0:22:01.760 appealed and they won again, and bar Please appealed again 0:22:02.160 --> 0:22:06.240 to the Supreme Court, and this news item said the 0:22:06.280 --> 0:22:08.520 Supreme Court is going to be hearing this really interesting case. 0:22:08.560 --> 0:22:10.840 So I called k Up and I asked her, do 0:22:10.880 --> 0:22:13.480 you think that this might make for an interesting feature story? 0:22:13.520 --> 0:22:15.640 And she said I think it would, and we started 0:22:15.760 --> 0:22:17.359 working on it. And one of the first things we 0:22:17.400 --> 0:22:18.879 did is we got in touch with the court system 0:22:18.920 --> 0:22:22.920 in England and asked them for court documents because it's 0:22:22.960 --> 0:22:25.160 such a fascinating story, but it hasn't gotten a lot 0:22:25.160 --> 0:22:29.720 of coverage, and sometimes court cases don't in England, UM, 0:22:29.800 --> 0:22:32.879 where the coverage of sort of current legal questions are 0:22:32.920 --> 0:22:36.159 often quieter than than in America. We got permission from 0:22:36.240 --> 0:22:38.320 from the court, and in fact we got through the 0:22:38.320 --> 0:22:41.760 court really really fascinating documents that shine a light on 0:22:42.040 --> 0:22:45.520 how this happened. Fascinating, disturbing, fascinating and disturbing. I mean, 0:22:45.600 --> 0:22:48.080 this wasn't This was an upsetting story to work on this, 0:22:48.200 --> 0:22:50.320 there's no doubt about it. And I'm sure it's an 0:22:50.400 --> 0:22:52.880 upsetting story to h to read, and I might even 0:22:52.880 --> 0:22:55.240 be upsetting for viewers and listeners to to watch now 0:22:55.280 --> 0:23:00.280 and listen now. But UM, what was really special is 0:23:00.359 --> 0:23:03.240 that we got, um, a couple of people who had 0:23:03.280 --> 0:23:06.280 worked for Barclay's and were sent to Dr Bates to 0:23:06.359 --> 0:23:09.280 talk to us and to share their stories and what 0:23:09.400 --> 0:23:11.960 the story is about. On the one hand, it's about 0:23:11.960 --> 0:23:14.840 these visits, debates and what ended up happening to These 0:23:14.880 --> 0:23:18.240 are two main characters who we call James and Anne, 0:23:18.440 --> 0:23:21.000 not their real names. Aren't their real names. The court 0:23:21.600 --> 0:23:25.480 ordered us not to use their real names. Um. It's 0:23:25.520 --> 0:23:29.200 partially about that, which is upsetting, but it's also, um, 0:23:29.240 --> 0:23:34.800 I think, a complicated and rich story about UM, it's 0:23:34.880 --> 0:23:40.760 really fascinating question of when a company has a responsibility 0:23:41.280 --> 0:23:45.720 to their workers and in this case, Barclays says Dr 0:23:45.760 --> 0:23:49.040 Bates wells and our employee. He was just a you know, 0:23:49.119 --> 0:23:52.600 essentially a contractor. So we're sorry if anything bad happened, 0:23:52.640 --> 0:23:57.560 but not our fault. But they sent Barkley's sent possible 0:23:57.600 --> 0:24:00.560 employees to him, or once they were employe ways to 0:24:00.680 --> 0:24:02.919 him for many many years like this went on for 0:24:02.960 --> 0:24:05.120 a long time, Carol went on for a long time. 0:24:05.160 --> 0:24:07.760 So it started in the late sixties and it ended 0:24:07.840 --> 0:24:11.040 in the mid eighties, and a few years later Barclay's 0:24:11.280 --> 0:24:14.280 says they stopped sending people to the doctor. You know, 0:24:14.359 --> 0:24:16.359 why they would send them to the doctor in the 0:24:16.400 --> 0:24:19.520 first places. A question you might have. They say it was, uh, 0:24:19.920 --> 0:24:23.520 make sure they were fit to work and have fit 0:24:23.600 --> 0:24:32.800 for you know, insurance. Um. You know. Barclay's um says that, um, 0:24:32.840 --> 0:24:35.040 you know, we only found out about this in around 0:24:35.080 --> 0:24:39.760 two thousand thirteen when people started complaining. UM. But without 0:24:39.800 --> 0:24:41.879 giving way too much because I hope folks read the story. 0:24:42.440 --> 0:24:45.960 We have a court document that includes allegations, UM that 0:24:46.520 --> 0:24:48.480 you know, half a dozen more than half a dozen 0:24:49.600 --> 0:24:54.720 people and their parents called Barclay's um, called managers, called 0:24:54.800 --> 0:24:58.720 human relations people to say something really bad happened here, 0:24:59.320 --> 0:25:02.640 and it happened start as early as the late seventies 0:25:02.680 --> 0:25:05.919 and into the eighties, but Barclay's kept using bits and 0:25:06.000 --> 0:25:10.120 Bates has since passed away. You spoke with his family 0:25:10.280 --> 0:25:12.119 for this story. You reached out to his family. They 0:25:12.200 --> 0:25:15.320 ultimately didn't comment. Cordon Bates is dead. He died in 0:25:15.320 --> 0:25:18.440 two thousand nine. His son is Nigel Bates, who worked 0:25:18.440 --> 0:25:21.560 for Barclay's for thirty two years. According to something I 0:25:21.760 --> 0:25:25.159 just found in court documents. Actually, um, you know, I 0:25:26.640 --> 0:25:29.560 emailed with him a bunch. I you know, when you're 0:25:29.560 --> 0:25:33.480 telling a story like this, you know, of course deeply 0:25:33.520 --> 0:25:35.840 interested in the accounts of the people who saw Bates. 0:25:35.880 --> 0:25:38.360 But you know, I have to say, just as interested 0:25:38.440 --> 0:25:43.800 in the perspective of Barclay's. Um didn't who didn't comment? 0:25:44.160 --> 0:25:46.639 Essentially they said that they wouldn't answer questions while the 0:25:46.680 --> 0:25:49.119 case was ongoing. But I also would have loved to 0:25:49.160 --> 0:25:51.160 speak to the family, and if Gordon Bates were alive, 0:25:51.200 --> 0:25:53.120 it certainly would have wanted to speak with him. Well, 0:25:53.119 --> 0:25:55.440 and I do. Let's get into like this whole idea 0:25:55.600 --> 0:25:59.879 of you know, whether or not the firm takes for 0:26:00.000 --> 0:26:04.320 responsibility for folks who were their employees, meaning the people 0:26:04.320 --> 0:26:07.040 who worked for them, right, and what happened to them 0:26:07.480 --> 0:26:11.600 by by someone who was not technically a Barclays employee, 0:26:11.960 --> 0:26:15.000 And it gets to the heart of responsibility. That's actually right, 0:26:15.040 --> 0:26:17.320 I mean, in a way You know what we do 0:26:17.400 --> 0:26:22.160 here by chronicling capitalism is we follow the ways things 0:26:22.280 --> 0:26:26.440 change and the ways the relationship between companies and their 0:26:26.440 --> 0:26:29.360 customers but also companies and their employees changes. Right. And 0:26:29.400 --> 0:26:32.040 you know, when Bates was alive, he would not have 0:26:32.080 --> 0:26:35.960 recognized this whole new kind of economy. You know that 0:26:36.280 --> 0:26:40.040 you have uber Um, you have delivery in England. Um, 0:26:40.040 --> 0:26:43.200 it's a it's this gig economy where these giants, these 0:26:43.240 --> 0:26:48.359 multibillion dollar companies have saved a lot of money. They've 0:26:48.359 --> 0:26:51.239 saved both the cost of having to pay people on 0:26:51.280 --> 0:26:54.280 the one hand, and they and they save legal liability 0:26:54.320 --> 0:26:58.240 on the other by saying these people are not our employees. 0:26:58.680 --> 0:27:01.440 They are freelancers who are applied patform for freelancers. We're 0:27:01.480 --> 0:27:06.800 not We're not employers. And in this case, Um, the 0:27:06.840 --> 0:27:11.360 fight is similar. The fight is to hold Barclay's responsible 0:27:11.440 --> 0:27:15.840 or the legal word here is vicariously liable. And vicariously 0:27:16.200 --> 0:27:18.280 vicarious liability is sort of a boring sounding phrase, but 0:27:18.320 --> 0:27:20.679 it's so interesting because it's a way of saying that 0:27:20.840 --> 0:27:24.399 you are vicariously liable for something he did. You know, 0:27:24.600 --> 0:27:27.760 Barclays in a way is in some sense an innocent 0:27:27.800 --> 0:27:30.800 party here as as a judge might describe them, because 0:27:30.800 --> 0:27:34.480 Barclay's as an institution wasn't in that room. But the 0:27:34.560 --> 0:27:38.000 question is are they responsible for what happened in that 0:27:38.040 --> 0:27:42.480 house in Newcastle? And what precedent might that set for 0:27:42.640 --> 0:27:44.840 the economy that we now live in. So as I 0:27:44.920 --> 0:27:46.399 read this, and Carol and I have talked a lot 0:27:46.440 --> 0:27:48.240 about this story because I think we both were just 0:27:48.320 --> 0:27:50.879 knocked over by it. It's a powerful piece of journalism, 0:27:50.960 --> 0:27:54.320 to say the least, and and the fact that you 0:27:54.720 --> 0:27:57.760 Max worked on it really called to mind, I think 0:27:58.200 --> 0:28:00.760 for me, and I think for Carrol as well, sort 0:28:00.800 --> 0:28:03.160 of the whole body of your work, which in part 0:28:03.359 --> 0:28:08.520 is about Wall Streets culpability across so many things. You know, 0:28:08.640 --> 0:28:11.440 here we are eleven years on from the onset of 0:28:11.480 --> 0:28:17.080 the financial crisis, and at a time when politicians, candidates 0:28:17.080 --> 0:28:20.440 for high office are talking about these issues of will 0:28:20.480 --> 0:28:24.360 hold on a second? Who's ultimately responsible? And I think 0:28:24.359 --> 0:28:28.680 it's fair to say there's a pattern of behavior across 0:28:28.720 --> 0:28:32.000 Wall Street and financial firms where they kind of get 0:28:32.040 --> 0:28:36.840 off on a technicality. And as I read this, I 0:28:36.840 --> 0:28:39.920 saw through line through a lot of things that that 0:28:39.960 --> 0:28:41.640 you've written about this and I wonder how you feel 0:28:41.680 --> 0:28:43.959 about because people were hurt here, people were hurt, and 0:28:44.000 --> 0:28:46.280 so where do they get their justice? Well, you know, 0:28:46.640 --> 0:28:49.720 that's just about one of the most interesting questions about 0:28:49.720 --> 0:28:51.160 my work that I've ever been asked. I find it 0:28:51.280 --> 0:28:53.080 very moving that you connect this st other stories that 0:28:53.080 --> 0:28:56.200 I've worked on, and you know, it's something that I 0:28:56.280 --> 0:28:59.600 have to as a reporter, working with my editors like 0:28:59.720 --> 0:29:04.240 Robert friedman Um and with my colleagues like Kanski. She 0:29:04.280 --> 0:29:06.960 and I wrote this story about Cantrafraser and the woman 0:29:07.040 --> 0:29:09.880 who had a Bernie Sanders mug in an office in 0:29:09.880 --> 0:29:11.880 New Jersey, and she opened up the cupboard one day 0:29:11.920 --> 0:29:15.560 and she found feces in it. She says, in that case, 0:29:15.840 --> 0:29:20.800 Canter frich Gerald, when sued by this woman, basically said, 0:29:21.520 --> 0:29:25.200 you can't sue us. You signed an arbitration agreement, right, 0:29:25.680 --> 0:29:31.280 And in that case, the question of um the arbitration system, 0:29:31.760 --> 0:29:35.600 the question of vicarious liability kind of merge in my 0:29:35.640 --> 0:29:38.520 mind in exactly the way you're talking about you know how, 0:29:39.400 --> 0:29:42.400 If if one question readers and viewers and listeners might 0:29:42.440 --> 0:29:45.160 have is you know how and why I have these 0:29:45.160 --> 0:29:49.720 powerful institutions gotten away with whatever bad behavior has happened, 0:29:50.560 --> 0:29:54.400 certainly want to answer that. Um. You know, the kind 0:29:54.400 --> 0:29:56.640 of thing we talked about in the newsroom is it's 0:29:56.680 --> 0:30:00.760 almost as if each story, or each loss SUITUM, or 0:30:00.760 --> 0:30:03.320 each interview shines sort of a new beam of light 0:30:03.920 --> 0:30:06.440 on you know, something that sometimes we we've begun to 0:30:06.440 --> 0:30:08.920 talk about is like this, like this machine, you know, 0:30:09.000 --> 0:30:12.560 like a machine of silence, UM, that keeps things quiet. 0:30:13.040 --> 0:30:16.280 And you know, we have to be fair to these 0:30:16.320 --> 0:30:19.480 companies because of course, you know, in the canterfis Gerald case, 0:30:19.560 --> 0:30:21.840 they just simply deny it. They say it's not so 0:30:21.920 --> 0:30:24.000 much a matter of a machine of silence. They would say, 0:30:24.080 --> 0:30:27.400 it's just that nothing bad happened. And a lot of 0:30:27.440 --> 0:30:29.760 powerful people on Wall Street field that way. That's Max 0:30:29.800 --> 0:30:32.600 Abelson and this story, Man, it's a disturbing one. It's 0:30:32.640 --> 0:30:34.720 a case with an outcome that could have implications for 0:30:34.760 --> 0:30:36.560 the gig economy. But you know, Jason, you and I 0:30:36.600 --> 0:30:39.400 got into it with Max. It really digs into also 0:30:39.480 --> 0:30:42.800 Wall Street accountability. I have to say, this story and 0:30:42.840 --> 0:30:45.760 that conversation with Max has really stuck with me since 0:30:45.800 --> 0:30:47.520 we sat down with him in the studio. I know 0:30:47.600 --> 0:30:50.880 Max pretty well. I've worked with him on stories and 0:30:51.520 --> 0:30:53.520 his journalism. I feel like it is some of the 0:30:53.560 --> 0:30:56.480 most important and powerful that we do at Bloomberg. It 0:30:56.560 --> 0:30:59.960 goes to the core of who our audiences in many ways, 0:31:00.200 --> 0:31:02.520 and goes to the core of the story of Wall 0:31:02.560 --> 0:31:06.800 Street over the past two decades, and constantly uncovering difficult situations, 0:31:06.840 --> 0:31:10.640 particularly within the financial community, and really getting out there 0:31:10.680 --> 0:31:12.920 some things that people don't want to address. But he's 0:31:12.960 --> 0:31:17.360 really uncovering a lot of important information, some big news 0:31:17.400 --> 0:31:19.400 this week. In fact, we've been following this deal or 0:31:19.400 --> 0:31:23.680 potential deal for the last few weeks. LVMH and Tiffany 0:31:23.720 --> 0:31:26.720 they officially have entered talks after the French luxury brand 0:31:26.760 --> 0:31:29.120 up to its offer for the US jeweler and you, 0:31:29.520 --> 0:31:32.960 Carol Masser caught up with the CEO of Tiffany, that 0:31:33.200 --> 0:31:37.440 is Alessandro Boliolo here at the Year Ahead Luxury conference 0:31:37.480 --> 0:31:39.960 at Bloomberg headquarters. All right, so let's do the elephant 0:31:40.000 --> 0:31:44.080 in the living room. So everybody's been reporting about LVMH. 0:31:44.280 --> 0:31:46.600 It sounds like you guys are finally officially talking. Is 0:31:46.600 --> 0:31:51.680 that fair? We have six keys pies, and the first 0:31:51.720 --> 0:31:57.000 one is to amplify your brand message now by amplifying 0:31:57.000 --> 0:31:59.880 our what brand message. I was not meaning to the 0:32:00.120 --> 0:32:03.960 about M and A in a conference, so maybe I 0:32:03.960 --> 0:32:08.640 can expend on other point. I will, and I'm not 0:32:08.640 --> 0:32:10.480 going to push too much because I know there's a 0:32:10.520 --> 0:32:12.600 lot of stuff going on. But I do wonder about 0:32:12.600 --> 0:32:15.240 when we look at the luxury space, is there something 0:32:15.280 --> 0:32:19.080 to be had by being part of a bigger conglomerate 0:32:19.400 --> 0:32:21.600 like LVMH And I'm curious, you've been at the company 0:32:21.600 --> 0:32:24.520 now for two years, right, and you've been rebooting stories, 0:32:24.600 --> 0:32:28.320 reworking a strategy, introducing lots of lines. Is M and 0:32:28.360 --> 0:32:31.680 A is a deal kind of part of the plan. Well, 0:32:31.720 --> 0:32:34.840 I have to say that there are many luxury brands, 0:32:34.880 --> 0:32:38.640 but when you talk you take really top luxury brands, 0:32:38.960 --> 0:32:42.080 the big let me say mega brands. We talked about 0:32:42.080 --> 0:32:45.960 a handful of brands and among those who have actually 0:32:46.480 --> 0:32:50.040 some of them extremely successful that are part of big groups. 0:32:50.400 --> 0:32:55.280 Consider we don't considered Cartier. But you have other brands 0:32:55.360 --> 0:32:58.600 that are super brands, super powerful that are not part 0:32:58.640 --> 0:33:05.760 of groups. Consider Channel consider her mess. So honestly, I mean, seriously, 0:33:05.840 --> 0:33:09.959 I don't think that for this is a kind of 0:33:10.640 --> 0:33:15.800 level of brands. There is a magic formula. It could be, 0:33:15.920 --> 0:33:18.320 it's proven, it can be one way, can be the other. 0:33:18.760 --> 0:33:21.920 What is crucial is that when you lead a brand 0:33:22.240 --> 0:33:24.600 like ours that has one of the day two years 0:33:24.600 --> 0:33:27.600 of history, you at the end of the day have 0:33:27.640 --> 0:33:32.200 to concentrate on the legacy that you receive and the 0:33:32.240 --> 0:33:36.640 beautiful product and promises that you made to your customers. 0:33:36.680 --> 0:33:40.840 This is really the key of success. Then the financial arrangements, 0:33:41.680 --> 0:33:44.480 as I said, I mean, can be successful one or 0:33:44.520 --> 0:33:47.320 the other. What is important customers. They don't care about 0:33:47.400 --> 0:33:52.240 your shareholders. Customers care about your products, about your brand, 0:33:52.680 --> 0:33:58.520 about sustainability, about the beauty of your products. This is 0:33:58.520 --> 0:34:01.040 what really makes success. It's interesting that you say that 0:34:01.040 --> 0:34:02.880 to Alessandro. I think we're in a year where we 0:34:02.960 --> 0:34:07.120 are so much debating public private markets, right, and I 0:34:07.120 --> 0:34:10.480 think companies are evaluating the benefits and pro or the 0:34:10.480 --> 0:34:12.880 pros and cons of staying private versus not. And I 0:34:12.920 --> 0:34:15.360 do wonder, can I just indulge me for a second. 0:34:16.480 --> 0:34:20.040 A Bloomberg opinion piece today, and it said um one 0:34:20.080 --> 0:34:22.480 of our writers said a deal would benefit both sides. 0:34:22.560 --> 0:34:24.520 For the owner of Louis Vuitton, it would mean dominating 0:34:24.560 --> 0:34:27.120 the jewelry market. I mean it would automatically give them 0:34:27.120 --> 0:34:30.160 a huge presence, while Tiffany could avoid the tricky task 0:34:30.200 --> 0:34:33.280 of executing a turnaround in a US recession on its own. 0:34:33.719 --> 0:34:36.600 So I do wonder about being able to step away. 0:34:36.960 --> 0:34:39.319 We're part of the problem. We focus quarter to quarter 0:34:39.400 --> 0:34:42.239 to quarters. So when you're doing renovations on stores, when 0:34:42.280 --> 0:34:44.640 you're thinking about the future, you know, you get a 0:34:44.640 --> 0:34:47.000 report card every three months, and I think sometimes it 0:34:47.040 --> 0:34:49.799 makes it difficult for a publicly health company. Would there 0:34:49.840 --> 0:34:53.080 be some benefits from stepping away from that public spotlight? 0:34:53.400 --> 0:34:58.120 For sure? For any public company to be necessarily to 0:34:58.280 --> 0:35:02.560 be a reporting every quarter, there is of course. It's 0:35:02.560 --> 0:35:06.200 it's a check that you have to go through every quarter, 0:35:07.560 --> 0:35:10.640 and we take it very, very seriously because it's our 0:35:10.680 --> 0:35:13.560 shareholders and it's our obligation to not only report, but 0:35:13.640 --> 0:35:17.200 also deliver results to the benefit of our shareholders. Having 0:35:17.239 --> 0:35:21.920 said so, I think, as a leader of a brand 0:35:22.960 --> 0:35:29.520 with such a history which means value, to maximize that 0:35:29.719 --> 0:35:33.480 value I have and my team, we have to look 0:35:34.160 --> 0:35:36.920 at the quarter, but we have to look even more 0:35:36.960 --> 0:35:39.239 at the next three years, at the next five years. 0:35:40.000 --> 0:35:44.279 So this is if you want the real challenge in 0:35:44.360 --> 0:35:49.480 managing a brand with a legacy like like Tiffany, because 0:35:49.880 --> 0:35:56.080 you have, of course to maximize the profit for your shareholders. 0:35:56.120 --> 0:36:00.680 But this doesn't mean that is just the sum of 0:36:01.800 --> 0:36:05.799 ten good quarters. You have to think about the next 0:36:05.840 --> 0:36:08.200 ten years to our questions that I'm gonna move off 0:36:08.239 --> 0:36:11.640 off of Whenever it was on everybody's mind, Are you 0:36:11.680 --> 0:36:19.120 open to a deal? We could have a deal if 0:36:20.600 --> 0:36:25.719 all the Advent calendars went didn't already sell they are 0:36:25.800 --> 0:36:31.439 also doubt otherwise I would Advent calendar idea. I would 0:36:31.480 --> 0:36:35.640 offer you as a deal, beautiful Advent calendar to avoid 0:36:35.680 --> 0:36:39.640 this question. Unfortunately that also died. But if I opened December, 0:36:40.640 --> 0:36:44.680 would it say a deal? You know, they didn't share 0:36:44.719 --> 0:36:47.080 with me what there is in Sember twenty for but 0:36:47.160 --> 0:36:49.320 I will tell you on December twenty five. That's a 0:36:49.360 --> 0:36:52.360 Los angel Boleolo, the CEO of Tiffany and Company. And 0:36:52.400 --> 0:36:54.840 it was a good sport to talk about the potential 0:36:54.880 --> 0:36:57.040 for a deal. But we really dug deeper too into 0:36:57.160 --> 0:36:59.480 what's going on with the luxury space. They're making changes 0:36:59.520 --> 0:37:02.280 at their wars, not just in the US their flagship 0:37:02.320 --> 0:37:05.319 in New York, but also around the globe. They've been 0:37:05.400 --> 0:37:07.440 hit by some of the tensions because of the U. S. 0:37:07.520 --> 0:37:10.759 China trade war, so a lot to talk about. Well, 0:37:10.760 --> 0:37:12.840 and I feel like in a week where we got 0:37:12.920 --> 0:37:18.200 so many earnings from retailers and conflicting reports, really an 0:37:18.239 --> 0:37:22.200 interesting deep dive into the world of luxury. So I'm 0:37:22.239 --> 0:37:24.480 stealing the words of our economics that Peter Koy, because 0:37:24.480 --> 0:37:26.759 he reminds us and writes this week about three months 0:37:26.800 --> 0:37:29.239 ago the US economic gallic, Well it didn't look so 0:37:29.280 --> 0:37:33.760 good today. Definitely a different feel, and investors definitely reacting accordingly. 0:37:33.800 --> 0:37:36.520 They've sent to US equity averages to record highs. Yeah, 0:37:36.560 --> 0:37:38.440 so what do we make of all this? Peter Coy 0:37:38.480 --> 0:37:41.840 is with us himself here in our New York City studio. 0:37:42.640 --> 0:37:46.320 As you looked at this, you saw a very different 0:37:46.360 --> 0:37:50.040 picture we all did in August. It's really amazing what 0:37:50.120 --> 0:37:53.839 the heck happened? You know? This equity markets, I think 0:37:53.880 --> 0:37:57.400 tend to overshoot very often, so both on the downside 0:37:57.400 --> 0:37:59.680 and the upside. So it could be that things were 0:37:59.760 --> 0:38:02.480 not as bad as we thought in August, and it 0:38:02.480 --> 0:38:04.920 could be there not as good as we think now. 0:38:05.520 --> 0:38:08.520 So do they take take stocks with the grain of salt? 0:38:09.360 --> 0:38:13.480 That said, there are some changes since August. You know, 0:38:13.800 --> 0:38:16.080 I picked out one day in August when the the 0:38:17.440 --> 0:38:20.319 Dow Jones Industrials and SMP five hundred both felt like 0:38:20.400 --> 0:38:24.360 three in one session, and the thirty year Treasury bond 0:38:24.400 --> 0:38:28.120 hit a record low. It was like recession talk was 0:38:28.200 --> 0:38:32.960 in the air on our TV, you know, everywhere. Uh So, 0:38:33.040 --> 0:38:36.600 what's happened since then? Well, one thing is that the 0:38:36.640 --> 0:38:42.880 FED had already changed its stamps even at that time 0:38:42.880 --> 0:38:45.000 in August, they had they had already put through one 0:38:45.160 --> 0:38:48.439 great cut. They've done two since then, and that's huge. 0:38:48.480 --> 0:38:51.920 The most powerful central bank in the world, the European 0:38:52.000 --> 0:38:57.200 Central Bank, resumed buying securities to drive down the long 0:38:57.280 --> 0:38:59.879 end of their yield curve. We see the bank which 0:39:00.080 --> 0:39:04.279 hand maybe not as aggressive, but you know, keeping their 0:39:04.400 --> 0:39:08.560 policy rate in negative territory. So I would say monetary 0:39:08.640 --> 0:39:13.000 policy is the single biggest change since then. And then 0:39:13.040 --> 0:39:14.839 you can feel in a lot of things around that. 0:39:14.880 --> 0:39:17.520 But if it hadn't been for that, we'd probably still 0:39:17.520 --> 0:39:18.759 be in a world of hurt. Well, I think that's 0:39:18.760 --> 0:39:21.320 really key. Right, go back almost a year last December, 0:39:21.400 --> 0:39:24.640 right we were talking about the FED raising exactly several times. 0:39:24.920 --> 0:39:29.000 That was the December was the last injuries, but but 0:39:29.160 --> 0:39:32.040 Paul was still talking about how yeah, we have more 0:39:32.040 --> 0:39:36.720 and more more to come. In twenty nineteen and December 0:39:37.440 --> 0:39:40.480 Christmas Eve was a massacre in the stock really bad. 0:39:40.800 --> 0:39:42.640 If you go back and look at the history of 0:39:42.640 --> 0:39:44.799 the stock market, then it's like a deep v And 0:39:44.840 --> 0:39:47.799 then everybody took off for Christmas and came back with 0:39:47.840 --> 0:39:50.719 bright smiles and their faces. And the day after stocks 0:39:50.840 --> 0:39:54.480 shot up because I think something happening around then where 0:39:54.239 --> 0:39:56.799 the Fed kind of changed its mind a little bit, 0:39:56.880 --> 0:39:59.680 and and that got That was the beginning of the 0:39:59.760 --> 0:40:02.080 route we're in now. But we do we have you know, 0:40:02.120 --> 0:40:05.000 you talk about recession. We focused a lot on that 0:40:05.080 --> 0:40:08.279 two year and ten years spread in the treasury market, 0:40:08.320 --> 0:40:11.399 where we did see an inversion of the yel curve, 0:40:11.440 --> 0:40:15.240 and we've seen that in the past. So the inversion, 0:40:15.280 --> 0:40:18.000 of course means that the ten year yield falls below 0:40:18.040 --> 0:40:21.480 the two year yield, which historically as an indicator recession 0:40:21.560 --> 0:40:26.239 is coming because you know, usually long term racer. So um, 0:40:26.280 --> 0:40:28.640 it didn't last very long though, it was gone within 0:40:29.080 --> 0:40:33.040 two weeks, and we had a re steepening of the 0:40:33.120 --> 0:40:37.160 yield curve, which is a positive sign uh in ordinary 0:40:37.160 --> 0:40:41.080 circumstances for the economy. Um, it means that conditions are 0:40:41.080 --> 0:40:45.200 normal basically, and tell us about how geopolitics plays into this, 0:40:45.280 --> 0:40:49.120 because it's something we obviously all watch very closely. Uh. 0:40:49.160 --> 0:40:53.200 It's not a super optimistic world to your earlier point, 0:40:53.440 --> 0:40:57.440 and yet on a relative basis, the world feels a 0:40:57.560 --> 0:41:03.279 little bit better or better enough, better enough. That's high praise. Right. 0:41:05.960 --> 0:41:09.400 The trade war has not devolved into as bad as 0:41:09.440 --> 0:41:12.040 it could have been. Trump's pulled back or delayed on 0:41:12.120 --> 0:41:15.600 some of the tariffs on China, and we still don't 0:41:15.600 --> 0:41:17.680 know how that's going to turn out as we sit here, 0:41:18.120 --> 0:41:20.440 but it just is again, it's not as bad as 0:41:20.480 --> 0:41:24.400 it could have been. Meanwhile, Brexit, Um, I'm not saying 0:41:24.400 --> 0:41:27.320 Brexit is a major influence on the world stock markets, 0:41:27.480 --> 0:41:29.760 but it's one of those things that you worry about, 0:41:30.200 --> 0:41:33.240 and it appears as though they're pulling back from the brink. 0:41:33.440 --> 0:41:38.400 Is less likely to be a hard, messy, uncontrolled Brexit. Well, 0:41:38.520 --> 0:41:39.960 one of the things you point out, which I think 0:41:40.040 --> 0:41:41.719 is really important we talked about all the time on 0:41:41.760 --> 0:41:44.600 our daily show, of which you are a frequent guest, 0:41:45.480 --> 0:41:49.319 is this notion of business spending and and that is 0:41:49.440 --> 0:41:53.160 something that has been tailing off for the last year 0:41:53.320 --> 0:41:55.959 in eighteen months, and you quote somebody in your story 0:41:56.040 --> 0:42:01.120 essentially saying that maybe the big question and the answer 0:42:01.160 --> 0:42:03.759 to that question may determine whether we are able to 0:42:03.760 --> 0:42:06.400 sort of continue on this ride for longer. Right. That's 0:42:06.440 --> 0:42:09.880 that's the flying the ointment. The consumer is really strong 0:42:09.920 --> 0:42:11.799 in the U S. U S. Consumer had to pick 0:42:11.840 --> 0:42:15.040 one force in the entire global economy, it's the U 0:42:15.160 --> 0:42:18.840 S consumer out there still spending and but support in 0:42:18.880 --> 0:42:22.080 a in a sustainable way because real wages that is 0:42:22.080 --> 0:42:26.440 adjusted for inflations, have been rising and unemployment is super low, 0:42:26.840 --> 0:42:29.440 so people have spending power. They're not caring a lot 0:42:29.480 --> 0:42:34.920 of debt. The question is can this keep going for 0:42:34.960 --> 0:42:38.440 a long time if businesses are cutting back because businesses 0:42:38.480 --> 0:42:41.040 cut back on spending, maybe they've gotta cut back on hiring. 0:42:41.440 --> 0:42:44.920 Maybe some of that UH, the income of the consumer 0:42:45.080 --> 0:42:50.520 will eventually trail off. Now, h Eddie ar Danny Danny Research, 0:42:50.560 --> 0:42:52.600 one of the really smart guys on Wall Street, was 0:42:52.680 --> 0:42:56.360 telling me that he thinks that the downturn and capital 0:42:56.440 --> 0:43:00.360 spending is UH is misleading because it's a lot of 0:43:00.440 --> 0:43:02.920 us to do with the oil patch, you know, is weak. 0:43:03.480 --> 0:43:06.520 So if you take that out, things kind of look better, 0:43:06.600 --> 0:43:12.920 and tech healthcare are doing relatively finance to which are 0:43:13.000 --> 0:43:17.640 key areas. So um, but that it remains to be seen. 0:43:17.760 --> 0:43:19.960 That's still an open question because I do feel like 0:43:20.040 --> 0:43:23.080 we we did hear some caution on earnings calls from 0:43:23.160 --> 0:43:25.759 CEO is essentially saying, you know what, I'm pulling back 0:43:25.800 --> 0:43:28.719 a little bit, or I'm not spending on that new factory, 0:43:28.840 --> 0:43:32.160 or I'm not expanding maybe as aggressively as I could 0:43:32.480 --> 0:43:37.080 right And historically capital spending is much more volatile than 0:43:37.120 --> 0:43:39.480 the consumer spending. Spending is like, yeah, it tends to 0:43:39.560 --> 0:43:43.000 kind of rise gradually. Spend is all over the place, 0:43:43.040 --> 0:43:45.960 So that's what you want to pay attention to, even 0:43:46.000 --> 0:43:48.879 as though it's not as big resumer spending, it can 0:43:48.960 --> 0:43:51.520 kind of be the thing that wags the tail that 0:43:51.640 --> 0:43:53.759 wags at dolls. And I think the magazine has covered that. 0:43:53.960 --> 0:43:56.359 When the longer you get into an expansion like here 0:43:56.360 --> 0:43:59.280 we are the longest US economic expansion on record, longer 0:43:59.320 --> 0:44:01.399 that you're in it, that to keep it going, that's 0:44:01.400 --> 0:44:04.640 where capital expenditures usually typically coming towards the end and 0:44:04.680 --> 0:44:06.719 give it that last kind of umph. And I wonder 0:44:06.760 --> 0:44:09.080 if that's the case here. Well, this has been such 0:44:09.080 --> 0:44:12.120 a long cycle. It's in its eleventh year now, the 0:44:12.200 --> 0:44:14.640 capital spending has had its own mini cycles within that, 0:44:14.719 --> 0:44:17.719 We've had our ups and downs, and if we get 0:44:17.760 --> 0:44:20.960 another up here, it could really be good news for 0:44:21.080 --> 0:44:24.279 keeping this thing going well into its eleven twelveth year 0:44:24.320 --> 0:44:27.520 and be a great thing far as economic growth. That's 0:44:27.520 --> 0:44:32.000 our Economics editor Peter Coy talking about recession fears and 0:44:32.080 --> 0:44:35.160 what's fascinating. He's absolutely right. Go back to late August, 0:44:35.760 --> 0:44:38.240 just three months ago, and everybody was talking about recession. 0:44:38.280 --> 0:44:40.839 There were concerns about, you know, more rate increases, Where 0:44:40.920 --> 0:44:43.080 was the economy going, what's going on with the consumer? 0:44:43.360 --> 0:44:46.040 Here we are today, everybody's not so worried, Jason, right. 0:44:46.160 --> 0:44:49.640 It's a really interesting look into how far we've come 0:44:49.680 --> 0:44:52.399 in a very short amount of time and how much 0:44:52.640 --> 0:44:56.160 was weighing on us a few weeks ago. Are those 0:44:56.200 --> 0:44:59.640 fears completely evaporated? I guess the rest of the year 0:45:00.200 --> 0:45:03.600 will tell us. So. This week in Business Week talks 0:45:03.640 --> 0:45:06.000 Al Kelly, he's chairman and CEO of the world's largest 0:45:06.000 --> 0:45:09.280 payments network. We're talking about Visa three point three billion 0:45:09.400 --> 0:45:12.520 visa cards and use full disclosure. I've got one or two, 0:45:13.080 --> 0:45:16.759 um more than two countries. Al thank you for joining us. 0:45:17.080 --> 0:45:19.040 Delighted to be here, Carol, thank you. I have to say, 0:45:19.120 --> 0:45:21.160 what's great about talking to someone like you that's got 0:45:21.200 --> 0:45:23.920 such a global perspective is you do have an incredible 0:45:24.040 --> 0:45:26.480 vantage point about what's going on in the world, what's 0:45:26.520 --> 0:45:29.680 going on with consumers. So tell us what you're seeing. Actually, 0:45:29.719 --> 0:45:32.719 you know, despite all of this thought that there was 0:45:32.719 --> 0:45:36.000 a recession coming, we don't see it. You know. In fact, 0:45:36.080 --> 0:45:38.880 our fourth quarter numbers, which for US were September thirty numbers, 0:45:39.040 --> 0:45:40.840 were better than the third quarter. In the US it 0:45:40.960 --> 0:45:45.960 was up eight percent, the internationals up twelve percent excluding China, uh, 0:45:46.080 --> 0:45:49.520 Europe upcent when you exclude the UK, which has done 0:45:49.560 --> 0:45:51.680 a little bit of self inflicted wounds. To what's wrong 0:45:51.719 --> 0:45:54.000 with everyone that we're talking so much about recession. I 0:45:54.000 --> 0:45:55.719 think it must just be the cycle. You know, It's 0:45:55.800 --> 0:45:57.760 been a long time that we've had this up swing, 0:45:57.800 --> 0:46:00.360 and I think that people just look at the street 0:46:00.360 --> 0:46:02.359 and say it's it's got to go down at some point. 0:46:02.719 --> 0:46:06.280 But you know, the consumer has stayed extremely strong around 0:46:06.320 --> 0:46:08.480 the world. The only place we see any weaknesses in 0:46:08.520 --> 0:46:10.760 the UK, and as I said, that's kind of related 0:46:10.800 --> 0:46:13.239 to the whole Brexit situation. But other than that, the 0:46:13.280 --> 0:46:15.479 world looks pretty darn good. And so let's talk about 0:46:15.480 --> 0:46:18.200 consumers and go a level down because you have more 0:46:18.280 --> 0:46:21.839 insights probably than almost anyone into where they're spending, how 0:46:21.840 --> 0:46:24.560 they're spending, what they're buying, what are they buying, where, 0:46:24.600 --> 0:46:27.600 where is where's their money going? Is it experiential? Like 0:46:27.640 --> 0:46:30.319 everybody keeps saying, well, and in our world, there's a 0:46:30.320 --> 0:46:33.520 couple of things that are really driving the increases in 0:46:33.560 --> 0:46:36.240 the number of transactions we're seeing. One is obviously e commerce. 0:46:36.560 --> 0:46:39.600 You know, people are jumping on their phones and jumping 0:46:39.600 --> 0:46:43.520 on their iPads and jumping on their computers and and 0:46:43.640 --> 0:46:46.640 buying in big ways. We're seeing every month those numbers. 0:46:46.920 --> 0:46:49.279 The growth in eCOM is anywhere between two and three 0:46:49.280 --> 0:46:52.160 times the growth in the face to face world every 0:46:52.200 --> 0:46:56.239 every single month. Uh. We're also seeing people continuing to travel. Uh. 0:46:56.280 --> 0:47:01.280 There was a real downturn and travel in December and January. 0:47:01.280 --> 0:47:03.800 If you remember, that's during the height of the U S. 0:47:03.920 --> 0:47:05.840 China trade talks. It was during the height of the 0:47:05.880 --> 0:47:09.160 Brexit conversations. And then we had the forty day US 0:47:09.239 --> 0:47:13.799 government shutdown, and almost immediately consumers started to just stay 0:47:13.800 --> 0:47:16.080 at home and not travel. But we've seen that pick up, 0:47:16.200 --> 0:47:19.160 especially in the last six months, and that's always a 0:47:19.200 --> 0:47:21.560 good sign that when people are willing to leave their 0:47:21.560 --> 0:47:23.799 home country and go to another country, that's a that's 0:47:24.040 --> 0:47:26.439 a very very good thing. The other thing that we're 0:47:26.440 --> 0:47:30.560 seeing is an increased amount of smaller ticket items being 0:47:31.080 --> 0:47:34.080 used using digital payments, and a lot of that I 0:47:34.080 --> 0:47:38.560 think is driven by mass transit. We are really excited 0:47:38.560 --> 0:47:42.320 about mass transit. Just in the last uh ninety days, 0:47:42.440 --> 0:47:47.040 we've seen open systems in Edinboro and Salpollo. Uh. We 0:47:47.400 --> 0:47:50.160 started in July, I guess June here in the m 0:47:50.200 --> 0:47:53.400 t A in New York where we're only at eighteen 0:47:53.440 --> 0:47:56.600 stations from Grand Central Station to Atlantic Avenue in Brooklyn, 0:47:56.920 --> 0:48:00.080 but by the end of October of the mt A 0:48:00.200 --> 0:48:02.040 hopes to be in all four D and twenty four 0:48:02.080 --> 0:48:06.000 subway stops. Are people using it to and go? Absolutely, 0:48:06.040 --> 0:48:09.400 it's tap and go, It's so convenient, it's better experience 0:48:09.480 --> 0:48:12.800 for the merchant, it's better experience for the consumer. We 0:48:12.800 --> 0:48:15.600 we had a million transactions in the first seven weeks 0:48:15.600 --> 0:48:18.399 and we had no and that's at eighteen stations. Uh, 0:48:18.440 --> 0:48:22.640 It's truly amazing, absolutely continuing to grow. Tap to pay 0:48:23.160 --> 0:48:26.160 has grown hugely around the world, with the exception of 0:48:26.160 --> 0:48:28.360 the United States. Interesting enough, Well, I was going to 0:48:28.440 --> 0:48:30.000 ask you about that because we've done a lot of 0:48:30.000 --> 0:48:32.640 work in the magazine about the adoption of those sorts 0:48:32.680 --> 0:48:37.040 of systems, especially in Asia, especially mobile payments, all of 0:48:37.080 --> 0:48:39.719 these things. What is it about the United States, which 0:48:39.760 --> 0:48:43.600 is usually pretty innovative in many ways and early adopting 0:48:43.680 --> 0:48:46.440 in terms of technologies. Why is the US lagging? The 0:48:46.520 --> 0:48:49.200 US is lagging because it first it goes back. You 0:48:49.239 --> 0:48:51.239 have to go back about six or seven years at least, 0:48:51.280 --> 0:48:54.319 where the US was much slower to adapt chip in 0:48:54.360 --> 0:48:58.200 the car, and they it took so long to adopt 0:48:58.280 --> 0:49:00.319 chip at that point in time, people around the rest 0:49:00.320 --> 0:49:04.040 of the world, we're moving past actually just dipping the 0:49:04.120 --> 0:49:08.760 car to actually tapping. And the reality is that the 0:49:09.040 --> 0:49:11.440 other countries have moved hugely ahead of us. You have 0:49:11.440 --> 0:49:14.719 countries like Poland and Hungry that are over tap to 0:49:14.719 --> 0:49:17.319 pay in the face to face world. In the US, 0:49:17.360 --> 0:49:20.319 we have a very interesting situation. The vast majority of 0:49:20.360 --> 0:49:23.640 the businesses are set and plumbed to be able to 0:49:23.680 --> 0:49:27.560 facilitate tap to pay. It's replacing the hundreds and hundreds 0:49:27.560 --> 0:49:30.759 of millions of cards, and the banks rightly so want 0:49:30.800 --> 0:49:33.200 to do it on their normal cycle. So by the 0:49:33.280 --> 0:49:35.720 end of this year, we'll have over a hundred million 0:49:35.840 --> 0:49:38.400 cards in the United States that will be tapped to 0:49:38.440 --> 0:49:41.759 pay uh Enable and by the end of next year 0:49:41.760 --> 0:49:43.879 will be over three d million. So this will take 0:49:43.880 --> 0:49:45.360 a little time. Right now, tap to pay in the 0:49:45.400 --> 0:49:48.120 United States is about two percent penetration. I think we'll 0:49:48.120 --> 0:49:50.239 get to five or six next year, and then based 0:49:50.280 --> 0:49:52.640 on our experience around the world, it will really take off. 0:49:52.680 --> 0:49:56.080 That's Al Kelley, no relation, the CEO of Visa, guy 0:49:56.120 --> 0:49:58.759 who's been around this business for quite some time. So 0:49:58.880 --> 0:50:02.160 getting his PERSPECTI TV on the consumer. You think about 0:50:02.200 --> 0:50:06.280 the data that they have access to, the spending pattern 0:50:06.960 --> 0:50:10.360 where people are shopping, what they're buying, pretty remarkable, right. 0:50:10.360 --> 0:50:12.520 Their payments network is vast, So when you think about 0:50:12.560 --> 0:50:15.040 vantage points on what's going on in the global economy, 0:50:15.040 --> 0:50:17.920 what's going on with consumers, this is the guy you 0:50:17.960 --> 0:50:24.680 want to talk to. Every new watch is like a 0:50:24.719 --> 0:50:26.680 new piece of lot. The Italian wines as a whole 0:50:26.800 --> 0:50:30.800 really speak to that quintessential need is the most powerful 0:50:30.840 --> 0:50:34.279 car made in the US period. You get the beautiful interior, 0:50:34.320 --> 0:50:40.879 the iconic designs, very chic and posh. So let's check 0:50:40.880 --> 0:50:43.000 out this week's pursuits section. There's a lot of fun stuff. 0:50:43.000 --> 0:50:45.080 It all has to do with travel. The editor pursuits 0:50:45.239 --> 0:50:47.799 with us Chris rouser I love the opener. Let's talk 0:50:47.800 --> 0:50:50.560 about this piece. Brand Impressor again doing a story. He 0:50:50.600 --> 0:50:52.880 worked at L a X. How does he do this? 0:50:53.160 --> 0:50:55.879 How does he do this? Last time we've talked about him, 0:50:55.880 --> 0:50:58.960 he was working at Nobu, right yea So Brand Impressor's 0:50:58.960 --> 0:51:01.239 specialty for us as he gropes behind the scenes of 0:51:01.280 --> 0:51:04.160 works undercover at all these fabulous, fancy places. So he's 0:51:04.200 --> 0:51:06.640 done it at Nobu. He was a butler at the Plaza. 0:51:06.719 --> 0:51:09.920 He was a ski instructor at Aspen, And every time 0:51:10.000 --> 0:51:13.239 we're always surprised that people agree to let him do it. 0:51:13.480 --> 0:51:15.759 So l a X and like even security or like yeah, 0:51:15.800 --> 0:51:18.000 come on in, Yes, l a X was very excited 0:51:18.040 --> 0:51:20.279 about this. They offered him access to T s A, 0:51:20.719 --> 0:51:23.600 to the private suite the the v I P terminal. 0:51:23.880 --> 0:51:26.920 They offered him access to the mail center to the 0:51:26.920 --> 0:51:30.760 food service, to the private lounges like the business class lounges. Everything. 0:51:30.800 --> 0:51:32.680 He went behind the scenes for a week and learned 0:51:32.680 --> 0:51:35.200 about how it all works. All right, So let's start 0:51:35.800 --> 0:51:37.719 with T. S A. I want to end with the 0:51:37.800 --> 0:51:41.520 luxury if we can, but let's start with T. S A. 0:51:41.680 --> 0:51:45.239 Because I definitely learned some things, some slightly horrifying things 0:51:45.320 --> 0:51:48.319 about what people do. I mean, there's just scenes in 0:51:48.360 --> 0:51:50.239 here that are hard to get out of your head. 0:51:50.280 --> 0:51:54.399 What did he learn? So basically, people are constantly sort 0:51:54.440 --> 0:51:57.719 of accidentally trying to bring things through T. S A 0:51:57.840 --> 0:52:00.399 that they don't know our contrabands, So you know, people 0:52:00.400 --> 0:52:02.640 bring up for studo or something or a plant. It's 0:52:02.880 --> 0:52:06.160 very common. But all day, every day there's stuff that's 0:52:06.200 --> 0:52:10.000 really wild, um, including one time that one of the 0:52:10.040 --> 0:52:13.080 people that he worked with actually encountered a dead body 0:52:13.280 --> 0:52:15.759 trying to get through security. A family, as you know, 0:52:15.760 --> 0:52:17.640 a father and a family had died and they were 0:52:17.640 --> 0:52:19.400 trying to get him back to Mexico to his family 0:52:19.440 --> 0:52:22.239 for a burial, and instead of shipping a coffin, which 0:52:22.280 --> 0:52:25.040 is actually expensive, they bought a one way ticket. And 0:52:25.200 --> 0:52:30.320 you cannot take a dead body of basically full weekend 0:52:30.320 --> 0:52:34.160 at Bernie's and they you know, they got stopped, you know, 0:52:34.239 --> 0:52:37.960 Dad's sleeping, like exactly, that's what happened. And actually it's 0:52:38.000 --> 0:52:41.799 not it's not uncommon. I was going to go to 0:52:41.840 --> 0:52:44.120 the guy who like had all the birds on us. Yes, well, 0:52:44.200 --> 0:52:45.799 if you read the New York Post, this is really 0:52:45.800 --> 0:52:50.160 a thing. Actually, there are songbird competitions in New York, 0:52:50.160 --> 0:52:51.960 in the New York area actually, and so people have 0:52:52.040 --> 0:52:54.520 to smuggle in songbirds. So this guy had dozens of 0:52:54.560 --> 0:52:58.360 songbirds in toilet paper rolls, little rubber bands around their beaks, 0:52:58.400 --> 0:53:01.760 strapped to his body, flying with them. Yeah, and underneath 0:53:01.800 --> 0:53:04.879 like you just wore underneath, going through and thinking, hey, 0:53:04.920 --> 0:53:08.120 no problem. Yep. And one time they found us cobra 0:53:08.320 --> 0:53:14.719 in a Pringles cam. Can you imagine opening up now? Uh, 0:53:14.960 --> 0:53:18.840 let's talk about lost and found, because I have lost 0:53:18.880 --> 0:53:22.920 things at airports, uh and found them in many cases. 0:53:23.000 --> 0:53:26.319 That famously left one of my jackets at heath Row 0:53:26.560 --> 0:53:30.680 and they tracked it down. But what the size and 0:53:30.880 --> 0:53:36.640 scope of the l a X operation cost? At any 0:53:36.680 --> 0:53:39.600 given time, they have about six thousand laptops and you know, 0:53:39.600 --> 0:53:41.880 if you've ever left an laptop at T S A 0:53:41.920 --> 0:53:44.400 they're actually pretty good about tracking you down and getting 0:53:44.400 --> 0:53:46.239 it back to you because it happens all the time. 0:53:46.719 --> 0:53:48.759 But they have stuff where you're like, how did you 0:53:48.840 --> 0:53:51.360 even lose that? Like a surfboard or a set of 0:53:51.360 --> 0:53:53.560 bongo drums or a chainsaw, which you wouldn't have been 0:53:53.560 --> 0:53:55.320 able to get on a plane, but like, oh, you 0:53:55.440 --> 0:53:58.600 just left your chainsaw somewhere in the airport. It is nuts. 0:53:58.680 --> 0:54:01.279 I mean they talk about they estimate that seventy people 0:54:01.280 --> 0:54:04.560 a day lose a computer. That's nuts. It's like an 0:54:04.600 --> 0:54:06.880 Apple store in there. So one of the things he 0:54:06.960 --> 0:54:10.359 also addresses is, and this is a very bloomberg thing 0:54:10.400 --> 0:54:14.440 to do, essentially, why things cost so much at the airport, 0:54:14.480 --> 0:54:18.920 And it's because the infrastructure is really expensive. This is 0:54:18.920 --> 0:54:21.879 an expensive proposition to run where whether you're talking about 0:54:21.880 --> 0:54:25.360 security or retail, everything in just getting everybody in everything 0:54:25.520 --> 0:54:27.319 in Yeah, l a X. You you might have noticed 0:54:27.360 --> 0:54:28.960 that the food is expensive at L a X. There's 0:54:28.960 --> 0:54:31.880 no McDonald's. It's all these kind of like upscale places, 0:54:31.920 --> 0:54:34.440 and it's because there's no storage really there, so they 0:54:34.440 --> 0:54:37.320 have to bring in everything every day. They can't stalk. Also, 0:54:37.560 --> 0:54:39.600 staff has to be really highly paid because it takes 0:54:39.600 --> 0:54:41.400 an hour for staff to get in and out just 0:54:41.440 --> 0:54:43.479 to even get in and out of the airport. Um, 0:54:43.560 --> 0:54:45.880 so they're paying a lot. So there's a huge premium 0:54:46.200 --> 0:54:48.319 on prices there over like what you would pay on 0:54:48.360 --> 0:54:51.319 the street, whereas like the Portland Airport there's a zero 0:54:51.400 --> 0:54:53.600 percent markup. Actually, but they do talk about the outposts 0:54:53.600 --> 0:54:55.600 that are there in terms of restaurants and sow and stuff, 0:54:55.600 --> 0:54:58.960 where they do really well. Sometimes they're the most most 0:54:59.320 --> 0:55:02.280 profit making enterprises that these companies have. I have to admit, 0:55:02.360 --> 0:55:03.920 I go to an airport and I do I get 0:55:04.000 --> 0:55:05.560 kind of excited if there are a good restaurants that 0:55:05.760 --> 0:55:06.840 I know I'm going to be stuck there for a 0:55:06.840 --> 0:55:08.400 while because you kind of have to get there earlier. 0:55:08.400 --> 0:55:10.320 They're off in delays. Right, we've been in, you know, 0:55:10.600 --> 0:55:13.560 kind of get excited about the bad restaurants. It's the 0:55:13.600 --> 0:55:17.040 only time it's okay to eat it too, yea a 0:55:17.120 --> 0:55:19.279 sinnabon all of a sudden it can be dinner, all right. 0:55:19.320 --> 0:55:22.200 So speaking of paying up, of course it's l a 0:55:22.440 --> 0:55:26.160 So of course, uh, there is a premium, a super 0:55:26.200 --> 0:55:29.440 premium experience. The v I P s can sort of 0:55:29.680 --> 0:55:31.880 do it in a totally different way. Tell us about them. 0:55:32.120 --> 0:55:34.279 So l a X has a private terminal, which is 0:55:34.360 --> 0:55:38.439 that there's a year fee to join it. And really 0:55:38.480 --> 0:55:41.200 what you're getting there is they basically take you from 0:55:41.239 --> 0:55:45.360 your car to the plane and so you miss standard security. 0:55:45.440 --> 0:55:47.600 It's just like people are breezing through. But and to 0:55:47.680 --> 0:55:50.160 be clear, this isn't to fly private, this is to 0:55:50.360 --> 0:55:54.680 fly on a commercial. You're just basically going in a 0:55:54.760 --> 0:55:58.400 different door, having a totally different experience on the way in. 0:55:58.920 --> 0:56:01.880 And as you say, of eating all of the Sterman 0:56:02.000 --> 0:56:06.480 drang of just l Ax is famous for photographers. And 0:56:06.840 --> 0:56:08.719 you know, if you actually go and hang out there, 0:56:08.760 --> 0:56:10.400 you can have it with every visit up to two 0:56:10.480 --> 0:56:13.640 thousand dollars in minibar amenities for free. You can get 0:56:13.800 --> 0:56:15.880 free massages, a free hair appointment, all the stuff. And 0:56:15.920 --> 0:56:18.200 nobody does it because they're just going right through. They 0:56:18.239 --> 0:56:19.520 just want to get on the plane, not there for 0:56:19.680 --> 0:56:22.160 very long ultimately, right, they talked about Megan Markle's right 0:56:22.320 --> 0:56:26.160 en route to the wedding, right she she went there. Yeah, 0:56:26.160 --> 0:56:27.680 I mean imagine how people were trying to get a 0:56:27.680 --> 0:56:29.960 picture of her on that day. And that's just that 0:56:30.040 --> 0:56:31.719 this is the best way. But it's not just celebrities, 0:56:31.719 --> 0:56:34.640 it's also business folks, right that are using these Yeah, 0:56:34.680 --> 0:56:37.359 they're paying for the efficiency. Yeah, it's CEO s it's 0:56:37.480 --> 0:56:39.319 it's business leader all right. Talked to us to about 0:56:39.320 --> 0:56:43.320 the social tears in the lounges the airline, because I 0:56:43.400 --> 0:56:44.920 have to say I've been there, because I don't go 0:56:45.000 --> 0:56:47.680 to loungees a ton a lot of times. I'm just raising, seriously, 0:56:47.719 --> 0:56:50.360 I'm racing and like you do you do that, like 0:56:50.480 --> 0:56:54.120 you spin around you like restaurant anyway, So there are 0:56:54.360 --> 0:56:56.200 So when he worked on a lounge, she noticed that 0:56:56.360 --> 0:56:58.279 he was. The people who worked there told him they 0:56:58.280 --> 0:56:59.680 were like you can always tell the first time or 0:56:59.680 --> 0:57:01.359 when they walk into the lounge and they do the 0:57:01.440 --> 0:57:03.560 whole lap of the lounge to look at where to sit, 0:57:03.680 --> 0:57:06.399 where the food is, which I absolutely dent do every 0:57:06.440 --> 0:57:08.960 time I go into the love. Yeah. And they actually 0:57:09.000 --> 0:57:12.800 they stock food differently depending on where planes where flights 0:57:12.800 --> 0:57:15.040 are coming from. So if there's flights from Asia, they 0:57:15.040 --> 0:57:17.800 actually stock it with more instant ramen. Jason Kelly's in town. 0:57:17.800 --> 0:57:22.480 It's kobaby and they've got you know, they have celebrities 0:57:22.480 --> 0:57:24.760 that are used to dealing with of course, so you know, 0:57:24.880 --> 0:57:28.120 one Charlie's Angels Starr, they have to have red Bull 0:57:28.120 --> 0:57:30.240 available for her to just grab from the bar when 0:57:30.280 --> 0:57:34.600 she's there. See, I don't know, I gotta ask Brandon, um, 0:57:34.640 --> 0:57:36.880 you know. And and then's actually one celebrity actually gives 0:57:36.920 --> 0:57:39.200 Christmas presents to all of the staff that work in 0:57:39.240 --> 0:57:42.320 the lounge, which is he's a hero. Lovely. There are 0:57:42.360 --> 0:57:44.240 some good tips in here about sort of how to 0:57:44.280 --> 0:57:47.480 act like you've been there before. I love love love this. Um, 0:57:47.520 --> 0:57:49.000 I want to work it. Wouldn't you like to just 0:57:49.040 --> 0:57:52.200 do that? Would glass? Alright? So one of the places 0:57:52.360 --> 0:57:55.200 that I think people might be going apparently more and 0:57:55.240 --> 0:58:00.880 more is Gonacra amazing. I mean, the the layout of 0:58:00.920 --> 0:58:05.040 the city and the airport is nothing I knew about before. 0:58:05.160 --> 0:58:07.000 Tell us about it. So the reason we're writing about 0:58:07.000 --> 0:58:10.120 Akera now is because last year there was a renovation. 0:58:10.240 --> 0:58:12.080 There was a new terminal built there, which actually has 0:58:12.120 --> 0:58:13.960 cleaned up a lot of the issues that used to 0:58:13.960 --> 0:58:15.920 be a problem with flying in and out of Acara. 0:58:16.000 --> 0:58:17.560 There were a huge delays. You kind of had to 0:58:17.640 --> 0:58:21.160 sometimes pride people, um, and now that's much more efficient. 0:58:21.360 --> 0:58:23.560 And this is one of those stories where you know, 0:58:23.560 --> 0:58:26.040 we always write about fabulous places to go, but everyone 0:58:26.040 --> 0:58:28.280 on our team was like, we really want to go here. 0:58:28.360 --> 0:58:31.000 This sounds so fun. Uh. It's you know, they say 0:58:31.040 --> 0:58:33.640 it's the most friendly city in Africa, that people are 0:58:33.640 --> 0:58:36.960 super welcoming. Um. It's the capital of Ghana. And you 0:58:37.000 --> 0:58:39.440 know the area around the airport is actually the most 0:58:39.480 --> 0:58:42.960 fabulous place to live because the traffic is so bad 0:58:43.040 --> 0:58:45.120 when you're there, so people love to be where you 0:58:45.120 --> 0:58:46.560 can get in and out and that's kind of the 0:58:46.560 --> 0:58:49.280 cool scene. So unusual, right because anywhere else, like in 0:58:49.320 --> 0:58:51.720 our country, you don't want to be living near the airport. 0:58:51.760 --> 0:58:54.000 So it's interesting that it is that it makes sense there. Yeah, 0:58:54.040 --> 0:58:57.040 and you know there's a big artistic cultural culture there 0:58:57.120 --> 0:59:00.000 so uh, you know, our writer went and she visit 0:59:00.000 --> 0:59:02.280 did it all these different artists. She visited this guy 0:59:02.280 --> 0:59:06.040 who makes these fantastic coffins. His funerals are big parties 0:59:06.040 --> 0:59:07.680 in Okera and they you know, you can make a 0:59:07.680 --> 0:59:10.800 coffin that's a giant Nike sneaker, one that's a tree. Um. 0:59:10.840 --> 0:59:13.240 And she actually got caught up in a funeral party 0:59:13.240 --> 0:59:15.400 and she said, literally everything in Okera as a party. 0:59:15.480 --> 0:59:20.040 Hey listen. Also this week UM Pursuits hosted the Year 0:59:20.080 --> 0:59:22.320 Ahead in Luxury, Yes, and thank you for your help 0:59:22.320 --> 0:59:25.400 with that. UM. You know, we started doing the Year 0:59:25.440 --> 0:59:27.840 Ahead in Luxury last year, which is a spinoff of 0:59:27.880 --> 0:59:30.360 our year Head franchise UM. And it's a half a 0:59:30.440 --> 0:59:33.200 day conference and we just get leaders from all different 0:59:33.200 --> 0:59:35.480 aspects of stuff we cover, so from food and wine 0:59:35.760 --> 0:59:40.000 to travel to fashion, two cars. So we had Alessandro Bugliolo, 0:59:40.080 --> 0:59:43.000 the CEO of Tiffany, come in. We had Brunello Cucinelli, 0:59:43.040 --> 0:59:45.240 the designer come in and talk about this community that 0:59:45.280 --> 0:59:49.040 he's built around the village where they make all the clothes. UM. 0:59:49.040 --> 0:59:51.280 We had Klaud Selmer from Porsche com and talk about 0:59:51.520 --> 0:59:55.240 electrification UM. And then Steven Star the Restaurant Tour came 0:59:55.280 --> 0:59:57.280 which is very cool talking about you know, what we 0:59:57.320 --> 0:59:59.400 can expect in food next year. So it was really 0:59:59.400 --> 1:00:01.880 fun day UM and we're very excited to be able 1:00:01.920 --> 1:00:03.720 to do this every year. That's the editor of Pursuits, 1:00:03.760 --> 1:00:06.680 Chris Rouser, and I love talking with Chris about the 1:00:06.720 --> 1:00:09.720 section this week because it was all about flying UH. 1:00:09.760 --> 1:00:12.160 Some of the highlights and in particular I love getting 1:00:12.160 --> 1:00:16.120 the details from Chris on Brandon pressor's story, Brandon goes undercover, 1:00:16.240 --> 1:00:18.520 not really undercover. I mean, we all know the companies 1:00:18.520 --> 1:00:20.320 that he goes to knows he's doing it. He does 1:00:20.320 --> 1:00:21.920 it at restaurants, but he did at L a X. 1:00:21.960 --> 1:00:24.040 He worked there, and so he really got the inside 1:00:24.040 --> 1:00:25.960 perspective of what goes on at one of the world's 1:00:25.960 --> 1:00:29.080 busiest airports, well, from what you might find in the 1:00:29.120 --> 1:00:32.680 security line to what your bottle of water costs and 1:00:32.800 --> 1:00:36.880 why some really really great stuff. It's a fantastic issue 1:00:36.920 --> 1:00:39.080 of the magazine, a double issue. As you said at 1:00:39.080 --> 1:00:41.480 the top of the show, we're gonna have more coming 1:00:41.560 --> 1:00:45.000 up next week. We're going to talk about warby Parker. 1:00:45.120 --> 1:00:47.760 We're going to talk a little bit about Amtrak as well, 1:00:47.880 --> 1:00:51.200 and Google generals. Google getting together with really the U. S. 1:00:51.240 --> 1:00:54.800 Defense Department because they want some of those contracts. And 1:00:54.840 --> 1:00:57.880 that wraps up this week's edition of the Bloomberg Business 1:00:57.880 --> 1:01:00.160 Week Weekend Podcast. Thanks so much for joining us. I'm 1:01:00.240 --> 1:01:02.360 Jason Kelly and I'm Carol Masser. Be sure to tune 1:01:02.360 --> 1:01:05.320 into Bloomberg Business Week Radio Live Monday through Friday starting 1:01:05.320 --> 1:01:07.320 at two pm Wall Street Time, and if you can't 1:01:07.320 --> 1:01:10.840 catch us live, get us via podcast. Download that at 1:01:10.880 --> 1:01:13.640 bloomberg dot com or wherever you get your podcasts. And 1:01:13.640 --> 1:01:16.040 of course you can get this week's edition of the magazine. 1:01:16.080 --> 1:01:18.600 It's a double issue and it's on newsstands now. We'll 1:01:18.640 --> 1:01:21.120 be right back here next week at the same time. 1:01:21.280 --> 1:01:22.440 This is Bloomberg