Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happen. Sloomberg
Speaker 1: Business Week with Carol Messer and Tim Stenebec on Bloomberg Radio. Hi, everyone,
Speaker 1: Welcome to the weekend edition of Bloomberg Business Week. Call
Speaker 1: at the Wall Street Churn. This past week, as FED
Speaker 1: Chair J. Powell spent two days up on Capitol Hill
Speaker 1: taking questions on the economy and monetary policy, reiterating that
Speaker 1: officials are likely to take rates higher than previously anticipated
Speaker 1: and could move at a faster pace if needed. Based
Speaker 1: on Friday's Mix Jobs report, investors now move their focus
Speaker 1: to this week's CPI report, and that's not the only
Speaker 1: risk for investors. More in a moment. Also, I have
Speaker 1: this CEO of Hpe, Antonio Nari on tech spending, Claire
Speaker 1: Hughes Johnson, former CEO at Stripe on a company's most
Speaker 1: important asset, and Priceline CEO Brett Keller with a global
Speaker 1: travel post. All of that to come. We begin with
Speaker 1: a story in this week's Finance section of the magazine.
Speaker 1: It was also a Bloomberg Big Take It details a
Speaker 1: looming risk that investors simply don't want to consider. We're
Speaker 1: talking about the US debt ceiling and what a default
Speaker 1: on federal debt would actually mean for markets. Bloomberg's Liz McCormick,
Speaker 1: Eric Wasson, Josh Wingrove, and Mike Dorning joined forces to
Speaker 1: bring us both the Wall Street and Washington perspectives. Liz
Speaker 1: is Bloomberg News chief correspondent for Global macro markets. She
Speaker 1: and Bloomberg Business Week editor Joe Webber join us with more.
Speaker 1: We in January hit that debt ceiling in which they
Speaker 1: had set a bit ago. Now the Treasury departments, using
Speaker 1: extraordinary measures kind of a special accounting moves to stay
Speaker 1: under it because they can't go above it. This is
Speaker 1: only going to get worse because there is, of course
Speaker 1: a limit to how long Treasury Secretary Janet Yellen and
Speaker 1: her team can do these maneuvers and stay under the
Speaker 1: debt limits, So they really need Congress to raise it
Speaker 1: or resuspend it, which they do many times. I feel
Speaker 1: like part of the problem, though, is that, you know,
Speaker 1: we come up against the seas ceiling and then we
Speaker 1: always figure something out. What's different this time around. Potentially, Well,
Speaker 1: I think this time around, and you know the gentleman
Speaker 1: on the story with me are the you know, Washington
Speaker 1: politics experts, but that you know, Eric Wason will tell
Speaker 1: you that we have a very contentious situation here where
Speaker 1: both sides you know, are jockeying. You know, the Republicans
Speaker 1: don't want a clean death sailing rays, which means that
Speaker 1: we just raise it. They want to kind of jockey
Speaker 1: for some future spending cuts, and President Biden and his
Speaker 1: team is saying, no, we don't want to do that,
Speaker 1: and you know, they seem pretty entrenched, and it kind
Speaker 1: of hearkens to twenty eleven where we had a very
Speaker 1: contentions death sailing episode that they eventually did come to
Speaker 1: something in the final hour, but it was such a
Speaker 1: messy process that the US for the first time ever
Speaker 1: by SMP got there rating downgraded from triple A, and
Speaker 1: you know that had a sting, even though we didn't
Speaker 1: see rates jump up sharply. Then you know, the stock
Speaker 1: market went down and it was a tumultuous time. So
Speaker 1: I think that's what people think this time it's going
Speaker 1: to go down to the wire. So that that story
Speaker 1: that Eric wasn't did about Brendan Boyle of Pennsylvania Representative,
Speaker 1: top democrat on the budget community. When I read our
Speaker 1: story and then I read that story, I was like,
Speaker 1: oh boy, this is scary. This got scarier all of
Speaker 1: a sudden, right because he's basically saying like, we're not
Speaker 1: going to back down. You know. It's funny, Joel, because
Speaker 1: everyone thinks, which we came to in our story, that
Speaker 1: of course they'll come to something. We've seen this movie before.
Speaker 1: It's a headache, we hate it, but well they'll do it.
Speaker 1: But when you know, you look at some of this
Speaker 1: stuff like Eric's laying out, it's really troublesome, and you know,
Speaker 1: like we hope, you know, cooler heads will prevail. No
Speaker 1: one would jeopardize the US treasuries as the world's safe
Speaker 1: haven security, which some people say. People may not realize
Speaker 1: if there's a default, be it short, you know, because
Speaker 1: they'll say, oh, well it'll be short, you know, but
Speaker 1: that doesn't matter. You know, the US doesn't default on
Speaker 1: their debt, and if they do, it could have repercussions
Speaker 1: for years and years. Okay, so x date, we don't
Speaker 1: know when that is what's our best sense of not
Speaker 1: a new dating app is it's not well. Janet Yellen
Speaker 1: says they have at least until like June. It seems
Speaker 1: like most of Wall Street is saying it probably goes
Speaker 1: until August. But it's very unclear because you know, it's
Speaker 1: kind of coming at the worst time. We're in tax season,
Speaker 1: right and the government doesn't know exactly how tax flows
Speaker 1: are going. I know I want a refund. They're trying
Speaker 1: to figure out of a we didn't get our refunds.
Speaker 1: I know, I know, I mean, that will happen, but
Speaker 1: they don't know how the flows are going to be,
Speaker 1: how much you know, the cash flows are going to go,
Speaker 1: how much refunds they're gonna have to pay out, how
Speaker 1: much inflows people paying their taxes. So it's very hard
Speaker 1: for the Treasury to kind of have a good timing of,
Speaker 1: you know, when we'll run out of these maneuvers didn't
Speaker 1: help if I was getting a refund and I said,
Speaker 1: why don't you guys just sit on it until August,
Speaker 1: and like it's like Social Security a little bit and
Speaker 1: maybe I get a little bonus. Wow, you're the man,
Speaker 1: And I'm just thinking he's got of I don't think
Speaker 1: I'll give mine whatever fund I'm giving nowhere near what
Speaker 1: we need want, Yeah, exactly exactly. So that's made it harder.
Speaker 1: That's why, you know, we know in past times, what
Speaker 1: a lot of the traders do is say, hey, listen,
Speaker 1: I'm not buying any Treasury bills or bonds that have
Speaker 1: coupon payments, which is this semi annual interest that's coming
Speaker 1: around that crazy X day time. But now this X
Speaker 1: date range is so wide that it's kind of murky
Speaker 1: in the market. Right. People are like, I don't know
Speaker 1: yet what debt to avoid, right, So maybe maybe that
Speaker 1: will become more clear as a troublesome when we get
Speaker 1: a better date. You know, maybe we'll get an update
Speaker 1: from the Treasury of when that X date is going
Speaker 1: to be. If the wheels start coming off this car
Speaker 1: ahead of that X date, do we have any sense
Speaker 1: what's going to break? Well, you know, after twenty eleven,
Speaker 1: a lot of the called parties that be that oversee
Speaker 1: the treasury market did a lot They were like, we
Speaker 1: don't want to go through this again with having no idea,
Speaker 1: So they did a lot of backup plans like if
Speaker 1: like maybe Treasury says, well, we'll delay the maturities a day.
Speaker 1: You know they can deal with that because you have
Speaker 1: to remember there's the repurchase agreement market that uses treasuries
Speaker 1: as collateral. So there's a lot of things that you know,
Speaker 1: what if it couldn't even function. So there's been some
Speaker 1: backup plans, but even those officials say, but we're not sure.
Speaker 1: You know, we haven't been through this before. You hope
Speaker 1: the treasury market will function. But Chairman Palell has also said,
Speaker 1: don't expect that the FED can swoop in and make
Speaker 1: a cure all evils. That it would be repercussions on
Speaker 1: the economy for a long time. It may sting borrowing
Speaker 1: costs for years and years or slaying that to me
Speaker 1: that if indeed we get that default, I mean, if
Speaker 1: somehow then there's a fix, quick fix after it, list
Speaker 1: would we still have that long term impact well the economy.
Speaker 1: That's what a lot of people say. Of course, we
Speaker 1: don't know till it happens. But you know, some very
Speaker 1: smart people have said in various stories we've done that
Speaker 1: it could be cured very fast. But you have to think.
Speaker 1: Some big investors say, I might add that I need
Speaker 1: a little cushion because you know, the US has defaulted, right,
Speaker 1: you know, so you would say there might be some
Speaker 1: premium added to yields, not just for a day or
Speaker 1: two maybe maybe small, but as a baseline for a
Speaker 1: long time, because it's totally different dynamic. You know, Yeah,
Speaker 1: what do we think on the Republican side, are they
Speaker 1: Is there any cracks anywhere in the in the in
Speaker 1: the wall that may be exposed here that may lead
Speaker 1: you know, a small group of people to say, you
Speaker 1: know what, we're not standing with McCarthy anymore. Well, not yet.
Speaker 1: There's a few strongholds. Remember McCarthy took so many votes
Speaker 1: to get him in as speaker, and he had to
Speaker 1: cut some deals, and you know that's made it harder
Speaker 1: because they also can kind of, let's just say, in
Speaker 1: light terms, spike him as the speaker. They have that option,
Speaker 1: So he has a lot to kind of payback to,
Speaker 1: do you know. Eric was saying that maybe you know,
Speaker 1: McCarthy in the end, you know, will do the best
Speaker 1: for the country and say, you know, I'll followed by
Speaker 1: sword and you know, we'll make a bipartisan deal. You know,
Speaker 1: so that it may go that way. But again, I
Speaker 1: think it comes down to markets getting ginned. Up stock
Speaker 1: selling off, and that being in the front of the
Speaker 1: local papers and things that policymakers may realize, oh this
Speaker 1: is bad, and you know, we'll come up with a deal.
Speaker 1: So it's just hard for me to believe that they won't.
Speaker 1: But like you know, one investor said to me, I
Speaker 1: don't know, never say never, you know, don't know. You know, Okay,
Speaker 1: So why throughout all of this and whatever may come
Speaker 1: yet Mark has been kind of singling like everything seems
Speaker 1: like it's not quite registered that this could go awry. Well,
Speaker 1: I think there's a few things. One is, like we said,
Speaker 1: they can't kind of know yet exactly when we'll hit
Speaker 1: that wall. Number two, there's a lot of other problems, right,
Speaker 1: you know, inflation is going to be sticky, you know,
Speaker 1: not to minimize traders, but there's only so many things
Speaker 1: they can worry about at once, right, So the deaths
Speaker 1: they're kind of you have far away a little bit.
Speaker 1: We have seen US credit default swaps, which is insurance
Speaker 1: against a default in the US. They're not a huge
Speaker 1: product here and they're not that liquid, but those you know,
Speaker 1: rates have gone up, so there is a few people
Speaker 1: buying some hedges against a default, right so I guess
Speaker 1: there's a little concern, but I think we need to
Speaker 1: get some more clarity. And you know, when this we
Speaker 1: could hit this wall from Marcus to really kind of
Speaker 1: like sell treasuries at that point in etc. Have we
Speaker 1: heard anything from the biggest holders of US treasuries at
Speaker 1: this point? And I think about whether it's to Japan.
Speaker 1: We always think about China when you talk about maybe
Speaker 1: ultimately in the future if we do get a default,
Speaker 1: they a lot more in terms of holding them. But
Speaker 1: have we heard anything from global investors on that front, well,
Speaker 1: sovereign nation, Yeah, no, they haven't. I think they don't
Speaker 1: want to get in the middle of this fight. I'm
Speaker 1: sure if it gets down to the wire, you know,
Speaker 1: we've gone through this before. You know, China's a little
Speaker 1: bit and they still hold a lot, but they're a
Speaker 1: little bit less of a player. US has a lot
Speaker 1: more domestic investors than they ever had, so we're not
Speaker 1: getting into that political jockeying. And I don't think they
Speaker 1: would speak beforehand. But you do have private investors saying like,
Speaker 1: I'm worried, Like I think I had some story saying, oh,
Speaker 1: there's not gonna be too much volatility ahead, and one
Speaker 1: investor emailed me, Liz, the debt ceiling. You know, so
Speaker 1: there are a lot of the private investors that are
Speaker 1: concerned that this could be you know, a lot of havoc.
Speaker 1: And even if we don't get a default, if it
Speaker 1: goes down to the wire and there's real concern, you
Speaker 1: might see just see more selling of treasures. Again, we
Speaker 1: have a backdrop of rates rising, inflation being sticky. There's
Speaker 1: a lot of concern out there. Anyway, That was Bloomberg
Speaker 1: News Chief correspondent for Global macro Markets Liz McCormick, along
Speaker 1: with the editor of Bloomberg Business Week, Joel Webber. Joe
Speaker 1: will be back a little bit later on coming up
Speaker 1: Hewlett Packard Enterprise CEO Antonio Nary on his company's strong quarter.
Speaker 1: You're listening to Bloomberg Business Week. This is Bloomberg. Please
Speaker 1: sees Bloomberg Business Week with Harold Messer and Tim Stenebec
Speaker 1: from Bloomberg Radio. So one way we've been trying to
Speaker 1: figure out what happens next in the global economy and
Speaker 1: financial markets is by listening to what CEOs are saying
Speaker 1: as they report earnings. With this quarter winding down, among
Speaker 1: the last major companies reporting was HPE Hewlett Packard Enterprise,
Speaker 1: which last week gave a strong forecast for the current
Speaker 1: quarter and boosted its annual outlook. The company's results of
Speaker 1: jest corporations are still upgrading their technology infrastructures, even in
Speaker 1: an uncertain economy. Antonio'nery is president CEO of HPE. He
Speaker 1: joined me and Bloomberg News Deputy team leader for US
Speaker 1: Equities Jess Benten to dig into the company's numbers. That
Speaker 1: the it spent is resilient, that it spent obviously shifting
Speaker 1: in different areas, but overall, I will say, continue to
Speaker 1: be a top priority for any enterprise of any size.
Speaker 1: And last week I actually I was in Europe talking
Speaker 1: to customers in France and Northern Europe, and they all
Speaker 1: very clear with me it will continue to be a
Speaker 1: top priority for them, whether it's to improve the resiliency
Speaker 1: of the company, or whether it's to mind data through
Speaker 1: the analytics portion of the investment, or whether it is
Speaker 1: to also digitize their business. So overall, I will say
Speaker 1: is good. There is some unevenness in some aspects, but overall,
Speaker 1: you know, when I think about r Q one performance,
Speaker 1: which was recro setting for the company on every metric
Speaker 1: you look at it, revenue, operating profit, and EPs. And
Speaker 1: the fact that we have a very solid order book,
Speaker 1: you give us the confidence to raise the outlook for
Speaker 1: both revenue and EPs, I will say, and I had
Speaker 1: a conversation with our Bloomberg intelligence analyst Wu Jenhoe, who said,
Speaker 1: you know, they were still a result and you did
Speaker 1: raise your outlook. You know, we also went through Dells
Speaker 1: report last night and your outlook was very different in
Speaker 1: contrast to Dells, which was much more dour. Why do
Speaker 1: you think there is that disparity that we're seeing in
Speaker 1: the industry because it's tough for us as we see
Speaker 1: you guys over port and talk about it. We listen
Speaker 1: to the c suite similar companies having so different outcomes.
Speaker 1: I think it's because people just look names and that
Speaker 1: they kind of put all together in the same back end.
Speaker 1: But the fact of the matter is we have a
Speaker 1: complete different portfolio. Obviously, Hewlett Packer Enterprise does a now
Speaker 1: participate in the PC business. That's our former pattern company
Speaker 1: in them now is independent HP Inc. But we have
Speaker 1: a unique diversified portfolio which makes us very different than Dell.
Speaker 1: We have an intelligence connected business which Dell doesn't not have.
Speaker 1: We have an AI business a scale that Dell doesn't
Speaker 1: not have, So you have to look at the portfolio
Speaker 1: and that's why it makes us very different. But also
Speaker 1: we have a different strategy because our strategy is to
Speaker 1: offer everything that we develop inside the company. Where is
Speaker 1: edge cloud NAI in a platform oriented approach, not swelling
Speaker 1: systems or commodity hardwork. And that's where it is so different.
Speaker 1: That's why customers and investors need to learn more about that,
Speaker 1: and that's why we are a little bit more polish
Speaker 1: than they are. We certainly have seen a fundamental trade
Speaker 1: of specific stories just right, And I'm glad you brought
Speaker 1: up Antonio when it comes to the cloud. You did
Speaker 1: announce how you do have that definitive agreement to acquire
Speaker 1: access security and that could help push you deeper into
Speaker 1: that space. What are you expecting to come out of
Speaker 1: that and are you expecting to have any more potential
Speaker 1: acquisitions on the horizon. Well, over the last eight weeks,
Speaker 1: we acquire four different assets always in this three domains
Speaker 1: edge cloud NAI. The first one was a company called
Speaker 1: packing There that allows us to do data pipeline automation
Speaker 1: for deploying AIA scale. So we have a unique asset
Speaker 1: with supercomputing that now becomes a kind of the old
Speaker 1: tech becomes the new tech in many ways because you
Speaker 1: need supercomputing power to trend these very large models and
Speaker 1: one of the challenge the customers have is to train
Speaker 1: those models in a very large scale data pipeline. The
Speaker 1: second answer we bought was a company that does software
Speaker 1: defined compute for in memory wordloads. Think about those workloads
Speaker 1: like database that needs a law of memory. We can
Speaker 1: now do that a cloud scale. The third one was
Speaker 1: Private five G. So when we think about the edge,
Speaker 1: the ability to provide a ubiquitous connectivity layer from Wi
Speaker 1: Fi to land to software define what they're a network.
Speaker 1: Now we are bolted into the same architecture the Private
Speaker 1: five G because Wi Fi and priv five G are
Speaker 1: very complementary. And that's a company called Athonet. And last
Speaker 1: one unless the one you mentioned, which is access security,
Speaker 1: because you need to wrap all that connectivity layer with
Speaker 1: a secure access secure edge, and we will have the
Speaker 1: most complete portfolio on the connecting intelligent edge. And that's
Speaker 1: an opportunity to continue to growth in the adjustance market.
Speaker 1: But ultimate customer want and integrated secure solution. You've also
Speaker 1: been tied to new Tanics. Is something likely to happen there?
Speaker 1: We always we don't comment on speculation. I will say
Speaker 1: we always look for assets that accelerates our journey into
Speaker 1: the three domains. You know, for us, it's all about
Speaker 1: accelerate accelerated momentum with hp green Lake. Hpeagreen Lake is
Speaker 1: a flagship product and one of the metrics are quoted
Speaker 1: yesterday is that with the HPI green Lake and the
Speaker 1: total as a service business in two twenty one Q
Speaker 1: one twenty twenty one, our total control value was five
Speaker 1: billion dollars. At the end of Q one twenty twenty three,
Speaker 1: a total contra value in the balance sheet is ten
Speaker 1: billion dollars, so we double the business. And obviously we
Speaker 1: look at all these assets that accelerate the strategy, particularly
Speaker 1: in the software the findes kind of a layer as
Speaker 1: well as automation. What about a larger strategic deal. Is
Speaker 1: that something that could happen? You know, we look at
Speaker 1: all a type of assets. But one of the things
Speaker 1: I might CEFO and I hold ourselves accountable to is
Speaker 1: a discipline, return based investment. And you know, with the
Speaker 1: last four acquisitions. I have now done more than three
Speaker 1: acquisitions in the last six years or so, and all
Speaker 1: of them fits in that consistent framework where we bring
Speaker 1: unique ip and talent that we can scale to our
Speaker 1: go to market. And obviously, as valuation come down from
Speaker 1: their highs and multiples that were in some cases not justifiable,
Speaker 1: we look at all of them, but again we stay
Speaker 1: strict to that framework. Yeah, one of the criticisms came
Speaker 1: to the guidance and your momentum moving forward and how
Speaker 1: that momentum could actually slow in the second half of
Speaker 1: the year. Is that something that's more of a potentially
Speaker 1: conservative estimate and something that might be we could see
Speaker 1: some revisions. They're happening depending on how obviously the business
Speaker 1: outlook changes in the macro outlook as well. You know,
Speaker 1: I have to tell you sometimes I'll understand some of
Speaker 1: these questions because when you think about it, you know,
Speaker 1: at the end of QUE four twenty twenty two, which
Speaker 1: we at an outstanding quarterer, we guided for the full
Speaker 1: year two to four percent year over year revenue growth
Speaker 1: for twenty twenty three. With the new guidance, we are
Speaker 1: doubling that revenue from the midpoint three to now five
Speaker 1: to seven million, midpoint six. So Alont call that conservative.
Speaker 1: You know, when you double the revenue guidance. Alont called
Speaker 1: that conservative. And in addition to that, let's remind ourselves,
Speaker 1: we're also raising the earnest per share guidance by another sixpennies.
Speaker 1: Now we stand that we have a massive headwind on currency.
Speaker 1: You know our eighteen percent year over year revenue growth
Speaker 1: that we just posted. Yeah, the five hundred and fifty
Speaker 1: basis points head winds. So we are prudent, you know.
Speaker 1: And this is why, which is early in the year.
Speaker 1: That was Antonio Nary, president CEO of HPE. You joined
Speaker 1: me and Bloomberg News Deputy team leader for US Equities,
Speaker 1: Jess Metton. Jess will be back in the next hour.
Speaker 1: Still ahead on Bloomberg Business Week, a decorated tech executive
Speaker 1: explains the most important building block of a successful company.
Speaker 1: If you're not investing in yourself as a leader and manager,
Speaker 1: or in your talent, you're gonna have a problem because
Speaker 1: you need more out of them, and you can't let
Speaker 1: growth paper over challenges. I mean, I do think the
Speaker 1: pandemic cause more disconnection. So if you're not reconnecting, it's
Speaker 1: going to get worse. There seems to be something soft
Speaker 1: in saying people investment or people matter, when in fact,
Speaker 1: I think the best places, the best managers and leaders
Speaker 1: have very high standards but also deep devotion. Right. It's
Speaker 1: the marriage of the caring and the expectations. And I
Speaker 1: worry people were like, well, we've got to just take
Speaker 1: our foot off the gas, because yeah, there was a pandemic.
Speaker 1: Terrible things have happened in this country and around the world,
Speaker 1: and it is very hard and people are tired. But
Speaker 1: you know what, we want to be inspired. We want
Speaker 1: to be inspired by where we work and the people
Speaker 1: we work with. And if you don't have a high
Speaker 1: standard coupled with that empathy and that devotion and that investment,
Speaker 1: you're not doing your job and you're not going to
Speaker 1: get the results. Stripe executive and Silicon Valley veteran Claire
Speaker 1: Hughes Johnson provides her playbook, Look for Better Business Practices
Speaker 1: in Any Industry. This is Bloomberg Broadcasting from the Financial
Speaker 1: Capital of the World Bloomberg eleven Frio in New York
Speaker 1: to Washington, d C. Bloomberg ninety nine one to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: sixty to the country, Sirius XM Chado one nineteen and
Speaker 1: around the globe, the Bloomberg Business app and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Business Week with Carol Masser
Speaker 1: and Tim Stenebec from Bloomberg Radio. Okay, so you know,
Speaker 1: we've had lots of conversations with heads of companies and
Speaker 1: organizations of all sizes. One common denominator the fight for
Speaker 1: workers in today's tight labor market. We got another read,
Speaker 1: as you know, on the US employment picture with the
Speaker 1: monthly data released on Friday. Well, our next guest knows
Speaker 1: a lot about people management and building a company thanks
Speaker 1: to its people. Claire Hughes Johnson spent ten years at
Speaker 1: Google oversaw some key projects. She is a corporate officer
Speaker 1: and advisor to Stripe. Was COO It's Stripe. She's got
Speaker 1: a new book out, Scaling People, Tactics for Management and
Speaker 1: Company Building. She explained some common pitfalls of today's business leaders.
Speaker 1: What we've probably done is thought that just people management
Speaker 1: will come naturally to us. But I do think it's learnable.
Speaker 1: I mean, I think a lot about scaling people is
Speaker 1: just like, let's break down some of the stuff that
Speaker 1: happens in private, the one on ones, the performance conversations.
Speaker 1: Let's expose what happens, but actually do the work. If
Speaker 1: you're not investing in yourself as a leader and manager,
Speaker 1: or in your talent, you're gonna have a problem because
Speaker 1: you need more out of them, and you can't let
Speaker 1: growth paper over challenges. I mean, I do think the
Speaker 1: pandemic caused more disconnection, so if you're not reconnecting, it's
Speaker 1: going to get worse. And that doesn't change when we
Speaker 1: get into a softer labor market. I think the best
Speaker 1: companies make this investment no matter what. Okay, I do
Speaker 1: think though in a softer labor market, sure people start
Speaker 1: taking some things for granted. One of the things that
Speaker 1: bothers me often is companies Obviously they're obsessed with their business,
Speaker 1: with their product, with their growth, but your people, for
Speaker 1: a lot of companies are what's producing all of that.
Speaker 1: And the whole hypothesis of scaling people is you want
Speaker 1: great results, this is the investment you make because in
Speaker 1: the long term, that's what's going to produce them. What
Speaker 1: are use though, The biggest mistake that people kind of make.
Speaker 1: There are two things that I think often happen. One
Speaker 1: is thinking you need everyone to like you and you're
Speaker 1: not your team's best friend. I'm sorry. And the other
Speaker 1: is not you need to manage different people differently. And
Speaker 1: I think a lot of people take the Golden rule. Well,
Speaker 1: I'm going to manage people the way I like to
Speaker 1: be managed. But guess what, they're different than you. It's
Speaker 1: like the opposite of the Golden rule. What motivates them,
Speaker 1: what kind of challenge? How do they take feedback? You
Speaker 1: need to be studying your team and yourself to understand
Speaker 1: how to adapt and adjust. And I actually think it's
Speaker 1: very doable. But maybe the third mistake is not taking
Speaker 1: the time to do it well. It's interesting too, And
Speaker 1: I think about as you were helping Stripe, as you
Speaker 1: were working at Google, right, building out these incredible companies, right,
Speaker 1: but at some point it's probably crazy. You're running after
Speaker 1: a million different things. The last thing you're like, all right,
Speaker 1: what is Joe need or what is Jay need? In
Speaker 1: terms of an employee? But it's really important, it is.
Speaker 1: It is at the end of I think the longest
Speaker 1: chapter in the book is about hiring. Yeah, and at
Speaker 1: the end of the chapter, I found myself because it's true.
Speaker 1: I've been in very high growth environments. I've been part
Speaker 1: of building to you know, arguably pretty definitional companies Google
Speaker 1: certainly and Stripe we hope to be. And at the
Speaker 1: end of the chapter, I found myself writing, if you've
Speaker 1: gotten to this point, you probably think I'm insane for
Speaker 1: recommending all of these things that you need to build
Speaker 1: and want to build into your hiring and your onboarding process.
Speaker 1: And it's very tactical. They're they're like specific steps, right,
Speaker 1: and how to interview and teach interviewing. I said, but
Speaker 1: you know, if you believe talent is everything you know,
Speaker 1: or that hiring is everything, then talent is everything and
Speaker 1: you're hiring has to reflect that. Well. It's interesting because
Speaker 1: I do feel like in part of the narrative, the
Speaker 1: corporate narratives, certainly coming off the pandemic right, certainly coming
Speaker 1: off of George Floyd and everything, it's people, you all matter,
Speaker 1: and so on and so forth, and you know, the
Speaker 1: working from home, do what you need to do. But
Speaker 1: I do feel like I wonder if the narrative, maybe
Speaker 1: the narratives there, but the actions aren't. And what are
Speaker 1: you seeing or what do you think does it just
Speaker 1: does something change? Here's what I worry about in that,
Speaker 1: which is there seems to be something soft in saying
Speaker 1: people investment or people matter, when in fact, I think
Speaker 1: the best places, the best managers and leaders have very
Speaker 1: high standards but also deep devotion. Right, It's the marriage
Speaker 1: of the caring and the expectations. And I worry people
Speaker 1: were like, well, we've got to just take our foot
Speaker 1: off the gas, because yeah, there was a pandemic. Terrible
Speaker 1: things have happened in this country and around the world,
Speaker 1: and it is very hard and people are tired. But
Speaker 1: you know what, we want to be inspired. We want
Speaker 1: to be inspired by where we work and the people
Speaker 1: we work with. And if you don't have a high
Speaker 1: standard coupled with that empathy and that devotion and that investment,
Speaker 1: you're not doing your job and you're not going to
Speaker 1: get the results. All right, So, because you're here and
Speaker 1: you have this incredible background, I only have a couple
Speaker 1: of minutes left, So you have to promise you if
Speaker 1: you're going to come back, because I would talk to you,
Speaker 1: But tell me about some of the interesting trends that
Speaker 1: are going on. We're talking so much about aim what
Speaker 1: is it that you find it you're at Google, I
Speaker 1: mean the Moon's like, you know, there's just so much stuff.
Speaker 1: What is it that you find interesting? I love working
Speaker 1: with founders, and I love all of the new things
Speaker 1: that are happening. You're absolutely right, it's you just turn
Speaker 1: around and there's an exciting project happening in any lots
Speaker 1: of companies of all sizes. I think AI is real.
Speaker 1: It is incredibly innovative. But what's really interesting about it
Speaker 1: to me is it's less of a technology that is
Speaker 1: like there's one or two winners, Yeah, kind of a thing, right,
Speaker 1: like an Android and an Apple. Right. This is much
Speaker 1: more fragmented and dispersed, and it's very accessible to a
Speaker 1: lot of different companies. It'll be very interesting to see
Speaker 1: how pele how companies sort of innovate around AI as
Speaker 1: part of their core business. And I think a lot
Speaker 1: of the best companies will Is it a conversation you
Speaker 1: guys are having about I think every company. I'm on
Speaker 1: bunch of boards too. I'm on the board of HubSpot,
Speaker 1: every company is having that conversation. Really really fascinating. I
Speaker 1: have a million more questions working from home, is it
Speaker 1: here going to go away. I think some version of
Speaker 1: it is here, but it means you have to be
Speaker 1: in person on some regular basis. In my opinion, that's
Speaker 1: Claire Hugh's Johnson Corporate Officer and Adviser to stripe. Her
Speaker 1: new book just out. It's called Scaling People, Tactics for
Speaker 1: Management and Company Building. So Claire is scaling people, while
Speaker 1: our next guest is helping to scale up The Everyday Feminist.
Speaker 1: As we marked International Women's Day this past Wednesday, Latania
Speaker 1: map Fret is the President CEO of Global Fund for Women.
Speaker 1: She's a former executive director of Planned Parenthood Global and
Speaker 1: UNICEF Human Rights officer who also spent a decade with
Speaker 1: the United States Agency for International Development. Patania's new book,
Speaker 1: entitled The Everyday Feminist, The Key to Sustainable Social Impact,
Speaker 1: driving movements we need now more than ever. It came
Speaker 1: out on International Women's Day, which he joined me and
Speaker 1: Bloomberg Market Senior editor Mike Reagan to talk about her
Speaker 1: organization's work. Global Fund for Women has been around for
Speaker 1: about thirty five years, and it started with the concept
Speaker 1: that we should just fund women period. That's, you know,
Speaker 1: because because because there's so many different reasons why we
Speaker 1: need it to do that. And back then, honestly, thirty
Speaker 1: five years ago, it seemed a little bit groundbreaking that
Speaker 1: you should fund a woman to do the business of
Speaker 1: supporting the community. We're so we're talking about the mid eighties, right, yeah, yeah,
Speaker 1: about eighty seven, So it was very difficult to get
Speaker 1: funds to women, particularly in the international setting. I mean,
Speaker 1: but Stevens still, you know, we're struggling with so much
Speaker 1: of this. But it is just women who don't fit
Speaker 1: a scenario. And we have some real biases in our
Speaker 1: cultures and our communities around women who are doing just
Speaker 1: everything but yet are undervalued, overlooked, and when it comes
Speaker 1: to getting them resources, people just feel uncomfortable just giving
Speaker 1: them money to do these things that are quite entrepreneurial, innovative. Okay,
Speaker 1: so let me just start with some of the you know,
Speaker 1: then one of the first grants from Global Fund for
Speaker 1: Women went to Lima Goobowie and Lima Goobowie, as many
Speaker 1: of you know, Pray the Devil back from the Disney documentary,
Speaker 1: actually just was a woman who wanted to want it
Speaker 1: peace in her country after three civil wars. She was
Speaker 1: tired of the actual table of peacemakers being all men,
Speaker 1: she thought, and she felt seriously about the fact that
Speaker 1: maybe we should have some women at that table and
Speaker 1: women that are living these real experiences that are going
Speaker 1: on in Liberia. So Global Fund for Womber gave her
Speaker 1: ten million dollars I'm sorry, ten thousand. Ratchet that back
Speaker 1: ten thousand, very different. Probably felt like it's a business show.
Speaker 1: So ten thousand dollars, I mean, of course they did.
Speaker 1: And she didn't have an organization, she wasn't registered, you know,
Speaker 1: she didn't have a bank account. We gave her ten
Speaker 1: thousand to get buses to take women from Liberia to
Speaker 1: a cross to Ghana, to chain themselves around a building
Speaker 1: where they were holding peace talks with all these men,
Speaker 1: both the opposition and the government and other actors, international actors,
Speaker 1: and they would not let them come out until they
Speaker 1: had a peace accord signed. And that's what they did.
Speaker 1: And that's the kind of money we're talking about. The
Speaker 1: Global Fund for Women does. And this is this long
Speaker 1: term social change that we keep talking about that is
Speaker 1: so valuable, but yet that we don't get behind, you know.
Speaker 1: And so that's because we talk too much and we
Speaker 1: don't actually put the money to what a rhetoric. It's
Speaker 1: a lot of sort of cultural understanding of what women
Speaker 1: should do and what they should ask for when they
Speaker 1: do it, and maybe they should just be able to
Speaker 1: do it without asking, you know. So it's this kind
Speaker 1: of thinking that really is the emphasis behind The Everyday Feminist.
Speaker 1: That's Latonia map Fret, Presidency of Global Fund for Women.
Speaker 1: More from her conversation is coming up, including her response
Speaker 1: to the backlash against critical gender equality initiatives. You're listening
Speaker 1: to Bloomberg Business Week. This is Bloomberg. You're listening to
Speaker 1: Bloomberg Business Week with Carol Messer and Tim Stenevec from
Speaker 1: Bloomberg Radio. All right, so let's get back to our
Speaker 1: conversation with Latania map Fret. She's the Presidency of Global
Speaker 1: Fund for Women, which provides feminist funding for grassroots organizations
Speaker 1: around the world. Her new book, The Everyday Feminist, The
Speaker 1: Key to Sustainable Social Impact, driving movements we need now
Speaker 1: more than ever. Latani joined Bloomberg Market Senior editor Mike
Speaker 1: Reagan and me and shared that almost anyone can contribute
Speaker 1: to the cause. These are ordinary women. I mean, of course,
Speaker 1: we love the jscentas and the Kamalas of the world.
Speaker 1: Who are you stepping up in amazing ways and breaking
Speaker 1: the glass ceiling. But don't forget about the women who
Speaker 1: are the headed at bta's, the nurses who are taking
Speaker 1: care of your elderly parents and pushing back. What's different
Speaker 1: about feminism outside the US versus like a developed country.
Speaker 1: So well, let me just say, I think that the
Speaker 1: word has gotten to be so um taken out of context.
Speaker 1: It's you know, I mean feminist. You know, these are
Speaker 1: people who believe that many women are equal and should
Speaker 1: be able to proceed likewise in our culture. But there
Speaker 1: is um, you know, there's a sort of background to feminism,
Speaker 1: especially in the North, the global North. I mean, my
Speaker 1: grandmother when I was a little told me she is
Speaker 1: no feminist. That's white, rich women who have time to
Speaker 1: think about gender all day. But yet in the book
Speaker 1: you'll see she's probably one of the biggest feminist I
Speaker 1: know who stand out when women are you know, need
Speaker 1: to be stood up for um. And so I think
Speaker 1: the you know, there's this new renaissance among feminisms. So
Speaker 1: the word can now be used and business, It can
Speaker 1: be used in sports, it can be used in our homes,
Speaker 1: in ways that I think we're just now getting again
Speaker 1: to get acquainted with the word. So I'm happy about that.
Speaker 1: So do we let the guy speak or Okay, go ahead, Mike,
Speaker 1: I'm sorry with you. I was gonna say, I have
Speaker 1: three daughters, so I'm very familiar with funding women. I
Speaker 1: guess we'll give them. But let's tell you, you know
Speaker 1: you can't help, but worry about this backlash that's going
Speaker 1: on politically to UH inclusion diversity programs among some of
Speaker 1: the far right politicians out there, is that affecting the
Speaker 1: Global Fund at all or is actually invigorating donations and
Speaker 1: sort of the enthusiasm for it. Well, let me just
Speaker 1: start with I do get a little worried. I just
Speaker 1: saw OECD data. You know, so this is the money
Speaker 1: that's coming from mainly Global North countries and the assistance
Speaker 1: that they give into UM Global South spaces. UM week
Speaker 1: track that every year there's a report that comes out
Speaker 1: on gender equality UM. In twenty twenty one, we started
Speaker 1: seeing a backlash. So the report has not come out
Speaker 1: for twenty twenty two, of course, but we saw the
Speaker 1: numbers actually decline when in other spaces of grant making,
Speaker 1: charity and other um, you know, things had gone up.
Speaker 1: It was the COVID area, of course, and it was
Speaker 1: also a time when women were experiencing more violence at
Speaker 1: home than they did it anytime. So yet the money
Speaker 1: going directly to grassroots groups women's groups was actually lower.
Speaker 1: So I am a little bit worried about those numbers.
Speaker 1: So I'll start there, but I'll say for Global Fund
Speaker 1: for Women, we are constantly in conversation with and building
Speaker 1: new ways of getting money to local organizations around the world,
Speaker 1: and in particularly these women's groups that are doing this work.
Speaker 1: So we start partnering with where at the Resilience Fund,
Speaker 1: which is a group of fashion industry. It's the guccies,
Speaker 1: it's the Amazons, the gaps, h and ms and so
Speaker 1: forth and starting, and I shouldn't be naming them, I'm sure.
Speaker 1: I'm sorry, too late, it's too late, right, it's out there.
Speaker 1: But they're actually they're working with women's funds to fund women,
Speaker 1: trust women, to let them do work in the factories
Speaker 1: where they work, to make sure that their rights are met.
Speaker 1: It's a new way of thinking about it, and I'm
Speaker 1: excited about that piece of it. So even if the
Speaker 1: total money is going downs, we're getting money to let
Speaker 1: women do what they do best in their countries, in
Speaker 1: their sectors, in the way that makes sense. That's Latanya
Speaker 1: map Fret, President CEO of Global Fund for Women, her
Speaker 1: new book, The Everyday Feminist, The Key to sustainable social
Speaker 1: impact driving movements we need now more than ever. Bloomberg's
Speaker 1: micree Can sticking around for a next segment that reps
Speaker 1: up the first hour of the weekend edition of Bloomberg
Speaker 1: Business Week from Bloomberg Radio. Ahead. In our next hour,
Speaker 1: we take look the global travel business with the CEO
Speaker 1: of Priceline, Brett Keller. Plus Ferrari's first ever suv, although
Speaker 1: they kind of refuse to call it that. You'll hear
Speaker 1: more on that in a moment. And we've got to
Speaker 1: look at Google scramble to catch up on AI. We're
Speaker 1: talking a code red kind of scramble. They are just
Speaker 1: so terrified of being leap fraud in a field that
Speaker 1: they really helped to lay the foundation for when it
Speaker 1: comes to generative AI. This is Bloomberg Business Week. I'm
Speaker 1: Carol Masser. Stay with us. Today's top stories and global
Speaker 1: business headlines are coming up right now. This is Bloomberg
Speaker 1: Business Week inside from the reporters and editors who bring
Speaker 1: you America's most trusted business magazine, plus global business, finance
Speaker 1: and tech news as it happened Sloomberg Business Week with
Speaker 1: Carol Messer and Tim Stenebec on Bloomberg Radio plenty head
Speaker 1: in our second hour of the weekend edition of Bloomberg
Speaker 1: Business Week, including Priceline CEO on travelers running off to
Speaker 1: catch planes and travel deals, We're jumping on the Pony
Speaker 1: Express aka Ferrari's suv, the first they've ever made, and
Speaker 1: who is in the market for those global multimillion dollar homes.
Speaker 1: First up this hour, though Google's plan to chat GPT
Speaker 1: the open AI chatbot is all the rage, And with
Speaker 1: that we turned to the technology section of the new
Speaker 1: issue of Bloomberg Business Week and a story that opens
Speaker 1: up with the following line. Artificial intelligence was supposed to
Speaker 1: be Google's thing, and yet we have spent a lot
Speaker 1: of the last few weeks talking about Microsoft's narrative changing
Speaker 1: and ipop ten billion dollar investment into chat GPT. So
Speaker 1: why does a tech titan that's been involved in AI
Speaker 1: for years now appear to be behind the curve. With
Speaker 1: more on that, Bloomberg Market Senior Editor Mike Reagan, and
Speaker 1: I turned to Julia Love, Bloomberg News tech reporter, who
Speaker 1: co wrote the piece with Davy Alba. Julia joins us
Speaker 1: along with the editor of the magazine, Joel Weber and
Speaker 1: BusinessWeek Technology editor Joshua Brustin. AI has been a long
Speaker 1: running theme of Silicon Valley coverage for quite some time,
Speaker 1: and throughout the newsroom. You know, we saw Google as
Speaker 1: one of the companies that was pretty far ahead. It
Speaker 1: had a reputation for building you know, products like the
Speaker 1: like the Auto Complete and emails, just building it kind
Speaker 1: of into everything. But I think everyone was a little
Speaker 1: bit stunned by just the reaction to chat GPT sort
Speaker 1: of how much it showed a glimpse at what could
Speaker 1: be the future and how much it seems to change everything.
Speaker 1: And so we set out to see, like, well Google,
Speaker 1: who did not get who suddenly doesn't seem like they're
Speaker 1: far out ahead? Like how were they reacting? And Julia
Speaker 1: and Davey found that they were reacting pretty pretty significantly.
Speaker 1: On the stands. Julia, come on in give us some
Speaker 1: color about what was going on at Google. Sure, so
Speaker 1: it's really a fascinating moment at Google because they are
Speaker 1: just so terrified of being leap fraud in a field
Speaker 1: that they really helped to lay the foundation for when
Speaker 1: it comes to generative AI. And so we learned through
Speaker 1: sources that the company's senior leadership has issued a directive
Speaker 1: that all the company's most important products must incorporate generative
Speaker 1: AI in the coming months. We have also heard that
Speaker 1: CEO assumed our Pachai is getting his hands dirty and
Speaker 1: diving into minute details of product development. That's the type
Speaker 1: of work that normally would be handled three or four
Speaker 1: layers below him in the organization. And you know, in general,
Speaker 1: employees feel like working on generative AI is something that
Speaker 1: can you know, raise their profile within the organization. But
Speaker 1: there's also a lot of anxiety in the company right now.
Speaker 1: They just really don't want to fall behind what I
Speaker 1: was interested in among other things. Here is just the
Speaker 1: tension within the company. So, Julie, what'd you learn as
Speaker 1: you reported? You know, what, what are people comparing this too?
Speaker 1: People outside of the company are worried that this experience,
Speaker 1: you know, the declaration of the code read risks repeating doodal,
Speaker 1: plus the ill fated social networks that some of you
Speaker 1: we do circles. Oh, I forgot about that, you know.
Speaker 1: It's it's the parallel that people see is that normally
Speaker 1: doodle is a pretty um, you know, bottom up place.
Speaker 1: Employees and different teams have a lot of freedom to
Speaker 1: you know, sort of chart their own course. But goodal
Speaker 1: plus was one of the last time so that Panie
Speaker 1: said every product must have a social component, and it
Speaker 1: didn't turn out well. So some faults now that seeing
Speaker 1: the company do something similar with this generative AI code
Speaker 1: read are worried about seeing history repeat itself. What was
Speaker 1: the biggest thing that you learned while you were working
Speaker 1: on this, Julia. I think for me, you know, we
Speaker 1: had been hearing a lot about the code read, but
Speaker 1: we had imagined we'd envisioned into something that was really
Speaker 1: impacting the artificial intelligence researchers, the search team. What are
Speaker 1: reporting over the past few weeks showed me was that
Speaker 1: this is something that is on every single doodler's mind
Speaker 1: and that for many people, more and more people is
Speaker 1: starting to influence their workflow. Joshua, come on back in here.
Speaker 1: Google not alone to be fair me. Meta has also
Speaker 1: been scrambling salesforce VC. They're putting some money. I mean,
Speaker 1: everybody is kind of figuring out where they need to
Speaker 1: be in this. Is that a fair assessment? Oh yeah,
Speaker 1: we're in like full on Silicon Valley hypes. I goal
Speaker 1: right now. I feel like overnight all of our inboxes,
Speaker 1: which had been filled with pitches for blockchain companies, just
Speaker 1: seamlessly switched to chatbot companies. Everyone's trying to figure out,
Speaker 1: like where you know, where there space is in it.
Speaker 1: One little tidbit in this piece, which I think will
Speaker 1: hopefully be grispher for further reporting down the road, is
Speaker 1: that the company formerly known as Facebook, which you might
Speaker 1: remember changed its name because the metaverse was everything, is
Speaker 1: apparently now focused increasingly on this kind of AI and
Speaker 1: maybe like eyes wandering away from the metaverse a bit.
Speaker 1: So it's definitely a thing that you know, everyone is
Speaker 1: thinking is existential now AI verse get ready? I mean
Speaker 1: to be real here, like that what Google has already
Speaker 1: is an incredible product that has dominated for decades metaverse definitely,
Speaker 1: you know nascent. Let's say everybody uses Google, not everybody
Speaker 1: uses meta for Google. Here, I think that the risk
Speaker 1: becomes like could do they mess it up along the way?
Speaker 1: And what kind of reality? Uh? And what kind of
Speaker 1: conversations are happening within the company about about that tension. Yeah,
Speaker 1: you know, Doodal executives have said over and over again
Speaker 1: that they take very response, very seriously the responsibility that
Speaker 1: they have as the world's tea provider of information. You know,
Speaker 1: these large language models frequently hallucinate, meaning they will deliver
Speaker 1: incorrect information with conviction. And while chat GPT might be
Speaker 1: able to get away with that and sort of a
Speaker 1: new final final product that we're all playing around with
Speaker 1: the states, they're much higher when it's Toodal and also
Speaker 1: not even just hallucinate. You know, their stories when being
Speaker 1: introduced a beta version of its new chat bot. You know,
Speaker 1: there's a New York Times reporter who had a very
Speaker 1: alarming exchange with the chat bot where the chatbot tried
Speaker 1: to convince him to leave us, fall in love, fall
Speaker 1: in love, and leave his wife. So it seems to
Speaker 1: me like we're almost and you know, the backlash stage
Speaker 1: to the new technologies is hitting before it's even off
Speaker 1: the ground. You know, there is there a risk there,
Speaker 1: do you think, I mean, is there any concern at
Speaker 1: least about a risk that everyone's moving too fast with
Speaker 1: this technology? Yes? You know it's funny. I did speak
Speaker 1: with one former Doodler who told me that he was
Speaker 1: a little bit surprised that Doodle sort of put its
Speaker 1: foot to the gas after this um announcement of chat
Speaker 1: gpt UM. He said that he felt like if the
Speaker 1: company had just waited a few weeks around months that
Speaker 1: you know, being Church would have self emolated in his words,
Speaker 1: and I think that, yeah, Goodle had been acting cautiously
Speaker 1: and Natasha's approach me maybe the wise one in the
Speaker 1: long run. Josh I thought the way that the story
Speaker 1: ends was also really poignant though, because bringing the Xerox reference. Yeah, so,
Speaker 1: for those who don't know, Xerox Park was a research
Speaker 1: lab that did a lot of the foundational research that
Speaker 1: led to the creation of what we think of as
Speaker 1: the modern PC, the sort of graphical interfaces, the mouse,
Speaker 1: and they had this, They had a lot of this stuff.
Speaker 1: It was being shown in demos some people who came
Speaker 1: to look at it. Steve Jobs, Microsoft and those two companies,
Speaker 1: which are each now worth a trillion dollars, really built
Speaker 1: something out of that in Xerox Park, which less to say,
Speaker 1: is not worth a trillion dollars, did not commercialize and
Speaker 1: you know, Google does have something of a reputation of
Speaker 1: being better at the early stages of tech developments than
Speaker 1: the final polished products, and I think it's something that
Speaker 1: people at Google are somewhat self conscious about and aware of,
Speaker 1: and they really don't want to be the Xerox Park
Speaker 1: of AI chatbots. Well, you know what I find fascinating
Speaker 1: is we keep calling this company Google when, as we
Speaker 1: all know, they changed their name several years ago to Alphabet,
Speaker 1: which was meant to reflect all those other investments they
Speaker 1: were making besides the search engine. So Chilia, that seemed
Speaker 1: like a very sort of unfocused, scattershot strategy to sort
Speaker 1: of invest in a million different projects in a lot
Speaker 1: of different areas. Does this feel like that they're getting
Speaker 1: away from that and kind of focusing now more strictly
Speaker 1: on AI. Yes, you know, I think that AI is
Speaker 1: something that is present across the Alphabet portfolio. Certainly Waymo
Speaker 1: the self driving car unit as a different expression of
Speaker 1: artificial intelligence. But nevertheless, the two adds still make up
Speaker 1: something like eighty percent of alphabets revenue. And so I think,
Speaker 1: especially in these past financial times, there is a recognition
Speaker 1: in the company that this is our bread and butter,
Speaker 1: and we need to make sure that we don't know
Speaker 1: squander any momentum in this race. You know the self
Speaker 1: of the lifeblood of the company. Our thanks to Julia Love,
Speaker 1: Bloomberg News Tech reporter, Bloomberg BusinessWeek Technology editor Joshua Breustein,
Speaker 1: and the editor of Bloomberg BusinessWeek Magazine Joel Webber. Bloomberg's
Speaker 1: might reek in with us as well. You're listening to
Speaker 1: Bloomberg Business Week. Up next, well Spring is near right.
Speaker 1: You can feel that at travelers they are definitely looking
Speaker 1: to hit the road. Families are really prioritizing travel this year,
Speaker 1: more so than last year, and most of them are
Speaker 1: heading to beaches and resort destinations. So if you want
Speaker 1: to go to one of those destinations, you can expect
Speaker 1: to find a lot of people traveling. Priceline CEO Brett
Speaker 1: Keller is up next. This is Bloomberg. Please see is
Speaker 1: Bloomberg Business Week with Carol Messer and Tim Stenovic from
Speaker 1: Bloomberg Radio shares The booking holdings are up more than
Speaker 1: twenty five percent so far this year. The company recently
Speaker 1: gave an earnings update that was last week, beating both
Speaker 1: on the top and bottom lines among the online travel
Speaker 1: companies brands price Line. Priceline CEO Brett Keller has been
Speaker 1: with the company for more than twenty years. He joined
Speaker 1: me and Bloomberg's just met and with a positive outlook
Speaker 1: for a Priceline and the broader industry. Things are actually
Speaker 1: very good if you're in travel right now. Obviously a
Speaker 1: very tough you know, twenty twenty and twenty twenty one,
Speaker 1: twenty twenty two started to show some really nice signs,
Speaker 1: and for the last couple of quarters, the consumer has
Speaker 1: really demonstrated that they're prioritizing travel right now. And if
Speaker 1: you mentioned earlier, you know, we recently came out with
Speaker 1: our fourth quarter results and it's showing real strength across
Speaker 1: especially across the US, but really across all markets around
Speaker 1: the world. And I'm really excited with Spring coming up,
Speaker 1: Carol and Brett, I was curious about what does the
Speaker 1: travel demand look like as we head into spring. Should
Speaker 1: we expect this strength to continue? I mean, when I
Speaker 1: think back to the holiday travel, there was a little
Speaker 1: bit of chaos when you thought about the airlines and
Speaker 1: some of that in the bookings. But what are you
Speaker 1: expecting for spring travel right now? Sure? Well, consumers have
Speaker 1: essentially kind of fallen back into their typical booking patterns,
Speaker 1: meaning they're traveling on the busiest days of the year,
Speaker 1: so they're going to pack those spring break weeks, especially
Speaker 1: families when children have time off from school. Families are
Speaker 1: really prioritizing travel this year more so than last year,
Speaker 1: and most of them are heading to beaches and resort destinations.
Speaker 1: So if you want to go to one of those destinations,
Speaker 1: you can expect to find a lot of people traveling.
Speaker 1: I think the airlines have largely recovered and are operating
Speaker 1: at a pretty good scale now, but they still have
Speaker 1: limited capacity, which means planes will be very, very full.
Speaker 1: There's not really any slack in thatstry at this time.
Speaker 1: Gotta say, bright, you know, I get that. You know,
Speaker 1: if you try to book a flight right now for
Speaker 1: business or otherwise, Man, those flights are expensive. We're still
Speaker 1: kind of, you know, blown away by how expensive it is.
Speaker 1: Does that continue? Because I'm thinking about the inflationary side
Speaker 1: of this story. What do you see in terms of
Speaker 1: costs for flights for lodging, How is it playing out? Sure?
Speaker 1: You know, when we look at forward bookings at the
Speaker 1: spring break time frame, which is really you know, most
Speaker 1: of March in April. What we're seeing as flight prices
Speaker 1: are up about twenty five percent over last year, so
Speaker 1: very expensive. If you're trying to travel overseas, which a
Speaker 1: lot of people are now heading out to Europe, you're
Speaker 1: going to see prices up to forty percent over what
Speaker 1: you would be what you were paying last year. On
Speaker 1: the hotel side, not so challenging. Hotel prices are about
Speaker 1: four or five percent, so a little easier to consume those.
Speaker 1: But on the if you try to fly, you're going
Speaker 1: to pay a lot of money. So I think you'll
Speaker 1: see quite a few consumers in the US choosing to
Speaker 1: drive fly and they'll get to their hotel destination that way.
Speaker 1: But it's a lot to consume right now, and consumers
Speaker 1: so far are inhaling those prices. We haven't seen either
Speaker 1: the hotel industry or the airlines really pull back on
Speaker 1: a lot of their price increases, and so as long
Speaker 1: as demand is there, we can expect those prices to
Speaker 1: stay rather high. Right any sign that capacity increased capacity
Speaker 1: comes into the airline industry, I mean, they've gotten so
Speaker 1: smart at taking out excess capacity that was pre pandemic.
Speaker 1: We saw that in a big way. They're great about
Speaker 1: charging for everything once you get on a flight, or
Speaker 1: even on your way to that flight. Is there any
Speaker 1: signs or any indications that you're hearing that we get
Speaker 1: an increase in airline capacity. Well, I think there's some
Speaker 1: early signs. I know all of the airlines would love
Speaker 1: to build up capacity. What they've been challenged with, of course,
Speaker 1: is hiring enough pilots and staff and ground crew to
Speaker 1: support the oncoming flow of equipment. There've been a number
Speaker 1: of new orders put in for planes, and so I
Speaker 1: think over the next couple of ye years we'll see
Speaker 1: that start to ease. But you know, getting us through
Speaker 1: the summer, I think what we have today on the
Speaker 1: market is pretty much what we're living with, which means
Speaker 1: a very stressed environment when it comes to uh, you know,
Speaker 1: finding an airline ticket that is reasonably priced to a
Speaker 1: great destination. There are still deals to be found. You
Speaker 1: can still find reasonable locations to travel to, but you
Speaker 1: might have to be flexible if money is a really
Speaker 1: tight concern for you right now, Britt, Where exactly are
Speaker 1: the most affordable deals for spring break, whether it's to
Speaker 1: the US or maybe even internationally. Sure, you know, if
Speaker 1: you're if you're looking for a nice, warm beach destination
Speaker 1: for Lauderdale, always a good option Myrtle Beach, you know,
Speaker 1: not not the Miami Beach, but provide the same type
Speaker 1: of experience in some ways, especially for families. Puerto Rico
Speaker 1: is very popular right now. Obviously Dominican REPUBLICANMAKA. So the
Speaker 1: Caribbean continues to be a reasonably affordable place to go overseas.
Speaker 1: You know, if you're trying to travel to the big
Speaker 1: cities like London and Paris, you're going to pay. If
Speaker 1: you are a little bit flexible and I want to
Speaker 1: try something new, you can try something like Lisbon, Athens, Munich,
Speaker 1: even Naples. You know, those destinations. You'll pay maybe a
Speaker 1: touch less on the flight, but you're really going to
Speaker 1: say when it comes to your hotel and the average
Speaker 1: price you're going to pay there as well as it's
Speaker 1: just a little cheaper to travel in some of those markets,
Speaker 1: especially in Greece. A beautiful destination and much more reasonable
Speaker 1: when it comes to the daily expenses for a consumer.
Speaker 1: Sign me up, We're ready. Hey listen, Brett. What I
Speaker 1: do wonder too, is the window that you guys see globally.
Speaker 1: What are you seeing globally in terms of where there's
Speaker 1: lots of activity travel wise? Is it mostly Is it
Speaker 1: largely the US? I know here in New York City,
Speaker 1: as I walk the streets of New York, I'm seeing
Speaker 1: a lot more international travelers back on the streets. Yeah.
Speaker 1: You know, the US recovered first, and that was mostly
Speaker 1: due to domestic travel. The US borders opened up a
Speaker 1: little sooner than some of the European boards, and especially
Speaker 1: the Asian borders, and so we saw a number of
Speaker 1: international travelers begin to pour into the US. But Europe
Speaker 1: came back very strong in twenty twenty two and is
Speaker 1: now moving at a very fast pace and catching up
Speaker 1: to the US. Asia was the longest, they took the
Speaker 1: longest coming out of COVID to really start to recover,
Speaker 1: But they are now ramping up very very quickly, and
Speaker 1: I think in some countries we're seeing demand outpacing two nineteen.
Speaker 1: Because the travel was so constrained for so long, people
Speaker 1: are just desperate to go out and take vacations, visit
Speaker 1: friends and family, and just see the world. Something else
Speaker 1: I thought was interesting in a survey that y'all had
Speaker 1: was looking at how spring breakers are basically split between
Speaker 1: going someplace new versus returning to a favorite destination. Why
Speaker 1: do you think that is? Well, you know, travel is
Speaker 1: one of those things that if you've had a great experience,
Speaker 1: you want to repeat it. And a lot of consumers,
Speaker 1: you know, when they find a favorite hotel or a
Speaker 1: favorite location, they know they can bank on that head
Speaker 1: and count on that and if they can get the
Speaker 1: price that they want, they're going to return to that destination.
Speaker 1: We see that a lot with Priceline customers, right they
Speaker 1: come back and repeat and stay many times at the
Speaker 1: same hotel. And I think that's just you know, when
Speaker 1: you've had a poor travel experience, it just reminds you
Speaker 1: how much you love the good ones. And so I
Speaker 1: think people are just a little bit of a creature
Speaker 1: of habit there you're going to return to where you
Speaker 1: where you feel most comfortable, you know the area, etc.
Speaker 1: But there's always a mix of people who want to
Speaker 1: try something new every time they head out. And with
Speaker 1: the world now really opening up, I think it's much
Speaker 1: more possible to do that now, you know. The UN
Speaker 1: World Tourism Organization came out with a stat that said
Speaker 1: over nine hundred million tourists traveled in twenty twenty two.
Speaker 1: That's still only sixty three percent of where we were
Speaker 1: in twenty nineteen. But this year that number could get
Speaker 1: as high as ninety five percent, so almost back to
Speaker 1: a fully worldwide travel recovery. I gotta tell you, I'm
Speaker 1: one of those people. There's a few places I know,
Speaker 1: I know, I'm gonna love it, and I go back. Hey, listen,
Speaker 1: Brett just got about twenty five seconds here. Lots of
Speaker 1: geopolitical concerns. Doctor's remindus were still not over COVID completely.
Speaker 1: What is it that you worry about most when you
Speaker 1: look at the outlook? You know, I think our primary
Speaker 1: concern obviously is the longstanding impact of inflation on consumer's wallet.
Speaker 1: I think that really is the primary concern now. I
Speaker 1: think consumers are largely over concerns about health as they travel,
Speaker 1: and it's now really more about the pocketbook. And you know,
Speaker 1: that's what we do here at Priceline. We try to
Speaker 1: help you get a great deal and get you where
Speaker 1: you want to go. That was Priceline CEO Brett Keller,
Speaker 1: along with Bloomberg's jessmenton still to come on. Bloomberg Business Week,
Speaker 1: we speak with someone who's always on the move. We're
Speaker 1: talking about Bloomberg Pursuits autocolumnist Hannah Elliott. She's back from
Speaker 1: the snowy mountains of Italy to share her drive with
Speaker 1: a Ferrari first an suv. It really did drive like
Speaker 1: a Ferrari. It has the signature V twelve engine, It
Speaker 1: sounds like a Ferrari, and they were very proud to
Speaker 1: have me drive it across snow and ice and off
Speaker 1: rote terrain. So it is an suv. Even if we
Speaker 1: don't use that word for it, it certainly remains true
Speaker 1: to the brand. This is Bloomberg Broadcasting from the financial
Speaker 1: capital of the World Bloomberg eleven Rio in New York
Speaker 1: to Washington, d C. Bloomberg ninety nine one to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: sixty to the country Sirius XM Chado one nineteen and
Speaker 1: around the globe the Bloomberg Business app and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Business Week with Carol Massier
Speaker 1: and Tim Stenovec from Bloomberg Radio in the Pursuit section
Speaker 1: of the magazine. This week, our Globe trotting auto columnist
Speaker 1: Hannah Elliott explains that Ferrari has pretty much everything, sold out,
Speaker 1: order books and records, sales last year, margins the key
Speaker 1: rivals such as Porsche and Mercedes Benz can't touch, and
Speaker 1: even a line of what she calls quote rioting hybrid supercars.
Speaker 1: The one thing the Italian automaker never had done, Da
Speaker 1: Da da an suv. That is until now. Ferrari's preparing
Speaker 1: to release a four hundred thousand dollars model that it
Speaker 1: previously swore it would never never make. Let's bring in
Speaker 1: Hannah and Bloomberg Pursuits editor Chris Rouser to tell us
Speaker 1: about it. Chris, Ferrari and an suv. They said it
Speaker 1: would never happen, never, never, never, and yet we have it. Yes,
Speaker 1: I mean, Hannah and I have been doing this a
Speaker 1: long time, and they have told Bloomberg that they're not
Speaker 1: going to make an suv. And then you know, Aston
Speaker 1: Martin made one, Lamborghini most importantly made one, Rolls Royce
Speaker 1: Bentley and the pressure was just on and the margins
Speaker 1: were just the profits were just possibly too high, so
Speaker 1: that they finally caved. And of course, when it came
Speaker 1: time to test drive it. We wanted to send Hannah.
Speaker 1: All right, so Hannah tell us about it? Were you
Speaker 1: crazy about it? I really liked it. I have to
Speaker 1: say I didn't really know what to expect. This is
Speaker 1: the first. Not only is this the first SUV Ferrari's
Speaker 1: ever made, it's the first four door vehicle period it's
Speaker 1: ever made. So I wasn't quite sure what to expect,
Speaker 1: but I have to say I was pleasantly surprised. Ferrari
Speaker 1: has done a couple other four seat vehicles before, the
Speaker 1: GTCS Forloso and the FF, and this kind of looks
Speaker 1: like those, maybe blown up a bit. I think I
Speaker 1: was happy with the looks. And of course it really
Speaker 1: did drive like a Ferrari. It has the signature V
Speaker 1: twelve engine, It sounds like a Ferrari. It certainly remains
Speaker 1: true to the brand. We should note Ferrari does not
Speaker 1: like to use the word suv to describe this vehicle.
Speaker 1: They want to say it's like a sporty, agile car
Speaker 1: with larger volumes. Sounds like an SUV to me. Yeah,
Speaker 1: and let's not forget it does have multiple driving mode.
Speaker 1: It's got all wheel drive, it's got a clearance that
Speaker 1: can lift to allow for uneven terrain, and they were
Speaker 1: very proud to have me drive it across snow and
Speaker 1: ice and off road terrain. So it is of an suv,
Speaker 1: even if we don't use that word for it, and
Speaker 1: and I have to say, you're right, it's smaller than like, um,
Speaker 1: some of the subs you might see moms driving to
Speaker 1: the soccer game. It does have a lower roofline certainly,
Speaker 1: but yeah, it's an suv. So okay, take us through
Speaker 1: some of the dynamics of it and the different modes
Speaker 1: of driving. You got wet mode, slip control, ice mode,
Speaker 1: you've got comfort mode. I'm all in Orte doesn't so
Speaker 1: tell us about this trip, you tech exactly. So one
Speaker 1: surprise of the trip that we didn't actually anticipate because
Speaker 1: of weather conditions, we weren't sure if we'd be able
Speaker 1: to do it, but we did take this. We rode
Speaker 1: a ski lift through this high alpine snow track that
Speaker 1: Ferrari had cut into the mountains and the alt and
Speaker 1: the Italian album and um, we drove it on snow
Speaker 1: and it was fantastic. I started out in what's called
Speaker 1: wet mode, which is sort of a softer mode that
Speaker 1: makes UM the suspension softer and the steering softer to
Speaker 1: try to smooth out everything UM when you're driving, which
Speaker 1: was great. That's something that you might use, like if
Speaker 1: you're driving to your ski chalet, for instance, or the
Speaker 1: hotel where you're going to stay where you're skiing. Yeah,
Speaker 1: Chris and I were doing that last week. Yeah, exactly,
Speaker 1: this is this is what we all really need. UM.
Speaker 1: And then you can switch, for instance, I switched into
Speaker 1: ice mode, which sort of tightens everything up. It's a
Speaker 1: lot stiffer. Um, you're going to feel the bumps and
Speaker 1: the jolts in the road more, but it's also quicker
Speaker 1: or make it can be potentially quicker if you're really
Speaker 1: on it. UM and Ferrari was it great. They had
Speaker 1: actually a professional rally driver with me in the passenger
Speaker 1: seat who was really coaching me through the drive modes
Speaker 1: and how to get the most out of the car.
Speaker 1: And it's it's pretty incredible. It was really surreal to
Speaker 1: hear this roaring Ferrari engine that you're used to hearing,
Speaker 1: you know, on a track or or on the on
Speaker 1: the freeway in California, to hear that in these alps
Speaker 1: um it was pretty it was very cool. I mean
Speaker 1: this one, this was one of the ones where I
Speaker 1: was very jealous of you have. I got to say, well,
Speaker 1: can I ask you anna? Can I just ask you?
Speaker 1: Though it sounds like it was incredible, Um, but tell
Speaker 1: us about the door handle. So yeah, you know, there
Speaker 1: are a few things that we should say about the person. Yeah,
Speaker 1: the door. The rear doors open and reverse. It's considered
Speaker 1: a carriage style, so they open um in reverse and
Speaker 1: to open them you pull a little lever thing. It's
Speaker 1: it's a little smaller than a credit card, and it's
Speaker 1: positioned um on the pillar of the door, on the door,
Speaker 1: but it's sort of hidden with the door pillars. It's
Speaker 1: really hard to explain. You don't even really see it, though.
Speaker 1: The intent is that when you look at the car
Speaker 1: the sides, you don't you can't see any door handles.
Speaker 1: They're totally hidden. When you get close to the door,
Speaker 1: then you see this little handle that you pull and
Speaker 1: it opens and closes the door. Now, the thing about
Speaker 1: those is they are sort of partially automated, which is
Speaker 1: meant to be more convenient because then it makes the
Speaker 1: door lighter to open. It'll slowly close itself, but The
Speaker 1: thing is, we're so used to just opening and closing
Speaker 1: and slamming doors really quickly. It takes a little bit
Speaker 1: of time to get used to this sort of partially
Speaker 1: automated door. And you can, of course override it and
Speaker 1: just push the door closed. But which is what you did, right? Yes? Yes,
Speaker 1: because I'm so impatient. You know, you just get out
Speaker 1: and you just want to slam the door close it
Speaker 1: once you're sitting inside. There's a button inside that you
Speaker 1: could push that will automatically close the door. But again,
Speaker 1: you know, it takes a lot longer to sort of
Speaker 1: slowly close the door by a button rather than just
Speaker 1: yanking it shut. In comparison to the other high hand
Speaker 1: supercar SUVs that are out there, this one holds its own.
Speaker 1: This one certainly holds its own. I would say that
Speaker 1: really the key that everyone's asking about and wondering about
Speaker 1: is does it beat the Lamborghini Urus that was such
Speaker 1: a fantastic vehicle when it first debuted, And I have
Speaker 1: to say it doesn't. It's very very good, but it's
Speaker 1: also one hundred thousand dollars more than the Lamborghini suv
Speaker 1: and it's really not any better. It's it's very good.
Speaker 1: But the Eurus it just is so striking. It's really
Speaker 1: really true to Lamborghini design heritage. It drives possibly even
Speaker 1: better than the Lamborghini. I you know, some people might
Speaker 1: hate me for saying that it's just a better value proposition.
Speaker 1: The Lamborghini is great too, but I don't think it. Sorry,
Speaker 1: the Ferrari's great too, but I don't think it beats
Speaker 1: the Lamborghini. All right, Well, there's no chance I'm buying
Speaker 1: either of those SUVs. Just FYI, we just have about
Speaker 1: a minute lap, Chris. I just want to get to
Speaker 1: one other thing that's in pursuits. It's a fun section
Speaker 1: because I'm more likely to go to Sweden's Arctic retreat
Speaker 1: than buy one of these high end SUVs. Just quickly,
Speaker 1: just tell us about this. I mean, you may remember
Speaker 1: recently that a pilot made headlines for doing a three
Speaker 1: hundred and sixty three turn on his flight so that
Speaker 1: his passengers could see the northern lights. And suddenly everybody
Speaker 1: was like, oh my god, I gotta go see the
Speaker 1: northern lights. And you kind of think of the northern
Speaker 1: lights as like standing in a field, which I have seen,
Speaker 1: like standing in a field, having your toes freeze. Like
Speaker 1: then you're like, okay, I saw the northern lights and
Speaker 1: then you're like, all right, now I'm in Swedish Lapland,
Speaker 1: do I do? And we wanted to do a story
Speaker 1: about how much how much other stuff there is to do,
Speaker 1: what other things to see in nature, what other zany
Speaker 1: activities to do. You can go mushing, you can go
Speaker 1: ice fishing, you can do lots of different things. And
Speaker 1: the Arctic tweet is this really great, really small place
Speaker 1: in Swedish Lapland where you can go and just see
Speaker 1: amazing things and do amazing things. I have to say,
Speaker 1: it just looks like so much fun. It looks like
Speaker 1: you were so out in nature. And I feel like,
Speaker 1: like I said, I can't afford the Ferraria suv, but
Speaker 1: I think I can afford this. Read more, folks. It's
Speaker 1: in the pursuit section, along with another also along with
Speaker 1: a really fun story about a reality show. When it
Speaker 1: comes to artists, there is actually an art reality show.
Speaker 1: Who knew, right, Yes, there's a reality show competition show
Speaker 1: for artists. And as you'll be shocked to know that,
Speaker 1: our famous arts writer James Army was not a fan.
Speaker 1: He no, he didn't like it. He was nutshy about that. Chris,
Speaker 1: thank you as always, and our thanks to Hannah Elliott.
Speaker 1: Always so much fun when we get to check in
Speaker 1: with you guys. The editor of Pursuits of course, Chris
Speaker 1: Rouser and our unrivaled auto columnist Hannah Elliott, thank you
Speaker 1: again both for joining us. You're listening to Bloomberg Business Week.
Speaker 1: Coming up. From elite driving to elite dwellings. We look
Speaker 1: at the market seven, eight and even nine figure homes.
Speaker 1: That's next. This is Bloomberg. You're listening to Bloomberg Business
Speaker 1: Week with Carol Messer and Tim Stenovic from Bloomberg Radio.
Speaker 1: Underway a broader shift among America's ultra rich and powerful
Speaker 1: in the wake of the COVID nineteen pandemic. There moves
Speaker 1: away from places such as New York's Upper East Side
Speaker 1: and San Francisco's nob Hill to warmer, less dense regions
Speaker 1: of Florida and Texas have lifted real estate prices in
Speaker 1: some locales while leaving other neighborhoods behind. Now, among the
Speaker 1: Bloomberg analysis findings, New York City falls as Florida gains
Speaker 1: in a shift of the most expensive areas to live
Speaker 1: in the United States. Our next guest is seeing this
Speaker 1: trend as well. Bonnie Stone Cellars is co founder and
Speaker 1: chair of Forbes Global Properties. It's a consortium of global
Speaker 1: firms and brokers that deal in luxury properties around the world.
Speaker 1: Bunny stop, I'd explain what's hot, what's not, and why
Speaker 1: prices have remained high despite the fact that there's a
Speaker 1: slowdown in the volume of sales. We're seeing a shortage
Speaker 1: of supply and that's bolts forring the prices. And it's
Speaker 1: true that there are new places where the top sales
Speaker 1: are arising. In fact, pomp Beach had the highest price
Speaker 1: sale in twenty twenty two at one hundred and seventy
Speaker 1: three million, so the price is still high. Slow down
Speaker 1: in sales it makes sense, right, if there are not
Speaker 1: enough properties coming out of the market basic supply and demand,
Speaker 1: you're going to see those prices stay high. But it's
Speaker 1: also ultimately because the supplies in there, it's going to
Speaker 1: bring down the volume. Do you see any of that
Speaker 1: changing anytime soon? Well, I mean if you just kind
Speaker 1: of look at the trophy sales in twenty twenty two,
Speaker 1: I think you would say that we wouldn't see that
Speaker 1: changing soon. The top twenty the top twenty five sales
Speaker 1: and twenty twenty two range from seventy three million to
Speaker 1: one hundred seven d three million. These were higher prices
Speaker 1: in many locations than we've ever seen before, and many
Speaker 1: of these are purchased by people where a softer economy
Speaker 1: a higher interest rate will have no effect the billionaires
Speaker 1: around the world. By all of the homes this year,
Speaker 1: the more than fifty percent were in the United States.
Speaker 1: I think partially that's because the international buyers are weren't
Speaker 1: as fluid during COVID as we hope they will be
Speaker 1: in twenty twenty three. And just to put a fine
Speaker 1: point on it, kind of interesting, but South Florida had
Speaker 1: the most top trophy sales in the United States and
Speaker 1: that was followed by Los Angeles, And then it didn't
Speaker 1: happen until we got to Hong Kong that we had
Speaker 1: an international city in the top three of the top
Speaker 1: sales trophy sales. What is it that's going on in Florida?
Speaker 1: Is it like, what are you seeing in the time
Speaker 1: that you've done this how many years? Is there something
Speaker 1: really distinct going on in Florida right now? Well, I
Speaker 1: wouldn't think I think there's anything in particular about Florida
Speaker 1: other than the fact that there were no taxes here. Yeah,
Speaker 1: but that's not new, right, right, that's not new. But
Speaker 1: I would suggest that a lot of the amenities that
Speaker 1: the top buyers are looking for happen to be found
Speaker 1: in homes here, and those amenities number one for twenty
Speaker 1: twenty two, based on our research, or outdoor space. It
Speaker 1: turns out that people are now investing in entertaining again
Speaker 1: and being with other people, and they want that outdoor
Speaker 1: space and a lot of it with which to interact.
Speaker 1: The second item is being close to amenities that they
Speaker 1: like to spend time with. Vacation where you live and
Speaker 1: the beach in Florida is a strong factor as well.
Speaker 1: That was Bonnie stone Seller's co founder and chair of
Speaker 1: Forbes Global Properties. Check out that full interview. You can
Speaker 1: find it on our podcast feed, and that raps up
Speaker 1: the weekend edition of Bloomberg Business Week from Bloomberg Radio.
Speaker 1: Thanks so much for joining us, and a big thank
Speaker 1: you to Bloomberg colleagues Jes Metten and Mike Regan for
Speaker 1: sharing some co hosting duties while Tim is on leave.
Speaker 1: Be sure to tune into Bloomberg Business Week Monday through Friday,
Speaker 1: starting at three pm Wall Street Time on Bloomberg Radio.
Speaker 1: You can also watch our daily broadcast on YouTube. Just
Speaker 1: search Bloomberg Global News and check out our Bloomberg Business
Speaker 1: Week podcasts. Find that at Bloomberg dot com, Apple, or
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Speaker 1: on newstands now at Bloomberg dot com, Slash BusinessWeek, and
Speaker 1: always on the Bloomberg terminal, and you can also see
Speaker 1: us on Bloomberg Originals, available on Bloomberg dot com, Slash Originals,
Speaker 1: and streaming platforms including Roku, Amazon, Fire TV, Samsung TV
Speaker 1: Plus and more. Have a good and safe weekend, everybody.
Speaker 1: I'm Carol Masser. Stay with us. Today's top stories and
Speaker 1: global business headlines are coming up right now