WEBVTT - Bloomberg Businessweek Weekend-August 22, 2020 0:00:00.960 --> 0:00:04.480 This is Bloomberg Business Week with Carol Masser and Jason 0:00:04.559 --> 0:00:08.559 Kelly from Bloomberg Radio. I'm Jason Kelly and I'm Carol Masser. 0:00:08.640 --> 0:00:11.080 Welcome to the weekend edition of Bloomberg Business Week. Over 0:00:11.080 --> 0:00:12.800 the next couple of hours, we're gonna bring you news 0:00:12.800 --> 0:00:15.160 of the week, insights from the magazine and more. And Jason, 0:00:15.240 --> 0:00:18.079 it was week working from home, although I did go 0:00:18.160 --> 0:00:20.680 to the office for the first time this week since March. 0:00:20.720 --> 0:00:24.000 So our world is slowly reopening with starts and stops, 0:00:24.000 --> 0:00:26.480 as we know, especially if you look at our schools 0:00:26.480 --> 0:00:28.600 and colleges and universities. We're going to talk about that. 0:00:28.840 --> 0:00:31.440 A lot of backtracking, as you know. But you also 0:00:31.480 --> 0:00:33.560 are back from vacation. You got on a plane. I 0:00:33.600 --> 0:00:35.760 got on a plane and came right back into quarantine. 0:00:35.880 --> 0:00:39.840 So a couple of steps forwards and a few steps back. Uh. Yeah, 0:00:40.080 --> 0:00:42.000 it's sort of an amazing world that we're living in 0:00:42.120 --> 0:00:45.600 right now. You can move around to a point, and 0:00:45.680 --> 0:00:47.720 we talked about all of that with so many of 0:00:47.720 --> 0:00:50.520 our guests across the show this week. What we've seen 0:00:51.200 --> 0:00:56.240 is the confluence of two pandemics. More House College President 0:00:56.320 --> 0:00:59.320 David Thomas, he talked to us about the dual crises 0:00:59.360 --> 0:01:02.000 facing this kind tree and why his school is going 0:01:02.120 --> 0:01:05.360 all online for the fall, plus how Carnival is navigating 0:01:05.360 --> 0:01:08.440 the financial waves caused by the pandemic. We begin with 0:01:08.480 --> 0:01:11.600 this week's issue, a double issue, the vaccine issue. Bloomberg 0:01:11.640 --> 0:01:14.720 News Markets and E t F reporter Claire Balantine and 0:01:14.720 --> 0:01:16.920 the editor of the magazine, Joel Webber, joined us to 0:01:16.959 --> 0:01:19.480 talk about Wall Street's view on what a vaccine could 0:01:19.480 --> 0:01:22.360 do to markets. Joe kicks it off. We put all 0:01:22.360 --> 0:01:26.319 of our muscle on into this vaccine issue double issue, 0:01:26.840 --> 0:01:29.039 and one of the things that you know is just 0:01:29.160 --> 0:01:32.399 uniquely Bloomberg I think, is is you know, bringing it 0:01:32.440 --> 0:01:35.319 back to the markets. And one of the questions that 0:01:35.319 --> 0:01:37.720 we sort of put to the equities team was sort 0:01:37.760 --> 0:01:40.200 of like, okay, well, if there is a vaccine at 0:01:40.240 --> 0:01:43.480 some point, um, what does that mean? What what what 0:01:43.520 --> 0:01:46.640 will that do for for markets? Would there be a 0:01:46.720 --> 0:01:49.480 bump or would that bump be short lived or or 0:01:49.480 --> 0:01:51.520 would there be no bump um? And that was sort 0:01:51.520 --> 0:01:53.160 of where we left it. It was just an open 0:01:53.280 --> 0:01:56.920 ended invite to the equities team, and Claire kind of 0:01:56.920 --> 0:01:59.720 picked that that up and and Claire like you came 0:01:59.800 --> 0:02:02.800 up with a couple of scenarios that UM, that people 0:02:03.200 --> 0:02:05.960 thought could be likely. What what were they? The first 0:02:06.040 --> 0:02:09.520 is sort of a new taper tantrum UM, with the 0:02:09.600 --> 0:02:13.480 idea that the stead which has really stepped in and 0:02:13.560 --> 0:02:18.080 helped UM stabilized markets, begins to slowly kind of draw back. 0:02:18.680 --> 0:02:20.960 That really worries people. And we see sort of the 0:02:21.000 --> 0:02:26.360 new taper tantrum UM, which would obviously be be very negative. 0:02:27.040 --> 0:02:31.120 UM could see stocks and bonds falling. UM. That's sort 0:02:31.160 --> 0:02:36.080 of you know, uh maybe worst case, what else could happen? 0:02:36.400 --> 0:02:39.000 So Claire, just let me interrupt if I can't remind 0:02:39.040 --> 0:02:41.000 us what a taper tantrum really is, because we've seen 0:02:41.040 --> 0:02:44.360 this before, and just remind us what that looks like 0:02:44.400 --> 0:02:46.760 to to an everyday investor, and not to be confused 0:02:46.800 --> 0:02:49.040 a temper tantrum that helped you with with some of 0:02:49.040 --> 0:02:52.400 our bosses or spouses or whatever, my two year old 0:02:52.560 --> 0:02:55.080 or you're a two year old. Well yeah, they have 0:02:55.160 --> 0:03:01.600 they have some similarities, true, some some fear um. You know, 0:03:01.680 --> 0:03:05.000 because the set has really supportive markets. You know what 0:03:05.080 --> 0:03:08.000 happens when they take away that helping hand, and a 0:03:08.040 --> 0:03:11.120 lot of it isn't driven by what has actually happened. 0:03:11.120 --> 0:03:14.200 It's more just the fear of that. UM. So in 0:03:14.240 --> 0:03:18.079 that case, could see stocks and bonds falling in tandem 0:03:18.120 --> 0:03:22.120 a possibility, you know, not definitely, not inevitable or anything 0:03:22.160 --> 0:03:25.639 like that. So what I think and I love number two, UM, 0:03:25.720 --> 0:03:28.800 because I feel like, if anything, the fet isn't going 0:03:28.840 --> 0:03:31.720 to rush away anytime soon. But talk to us a 0:03:31.720 --> 0:03:35.520 little bit about the second scenario here. Yeah, so we 0:03:35.600 --> 0:03:38.080 sort of um that came up with the phrase to 0:03:38.120 --> 0:03:41.440 call this the supercharge status quo. So this means that 0:03:42.000 --> 0:03:45.640 you know, a vaccine is successfully introduced, the markets very 0:03:46.000 --> 0:03:50.480 happy about that, and you know, market goes up um, 0:03:50.600 --> 0:03:52.680 and people are saying that that you know, could happen 0:03:52.680 --> 0:03:55.600 for obvious reasons, but also because the FED isn't gonna 0:03:55.640 --> 0:04:01.040 necessarily step away from these huge stimulus efforts right away. UM. 0:04:01.080 --> 0:04:02.880 A lot of it is because like what we saw 0:04:02.920 --> 0:04:05.320 with the Taper tan turn back in teen, it's very 0:04:05.320 --> 0:04:08.800 hard to undo this quantine of easing. So in that case, 0:04:08.840 --> 0:04:11.880 the market goes up. Also, everything just gets more expensive. 0:04:14.680 --> 0:04:20.520 And so behind door number three is what lea. Well, 0:04:20.560 --> 0:04:22.960 this is the idea that some of these value stocks 0:04:22.960 --> 0:04:26.520 that have really been beaten down in this UM post 0:04:26.600 --> 0:04:29.800 COVID world means that maybe those can start to do well. 0:04:30.320 --> 0:04:33.800 So some of those areas that have really UM been 0:04:33.880 --> 0:04:38.760 hurt hard, like the airlines, UM cyclicals, small caps, those 0:04:38.800 --> 0:04:41.359 could start to outperform UM. And that would be the 0:04:41.360 --> 0:04:43.880 case of a broad named market. You know, we've seen 0:04:44.279 --> 0:04:46.680 the tech stocks do well, but with a vaccine, that 0:04:46.720 --> 0:04:50.360 could be the gateway to many other sectors also doing well. 0:04:50.680 --> 0:04:52.200 And I gotta say, can I just you know, Jill, 0:04:52.240 --> 0:04:55.280 like you look at something like UM United is down 0:04:56.400 --> 0:04:58.320 this year, you know, when things start to get better, 0:04:58.480 --> 0:05:00.520 you know, these are the kinds of name times that 0:05:00.640 --> 0:05:04.839 ultimately will take off. I mean that in in theory, 0:05:05.000 --> 0:05:08.760 right in theory. The airline the airline industry is obviously 0:05:08.760 --> 0:05:10.919 one that I think a lot of people UM have 0:05:11.240 --> 0:05:13.719 focused on. And you know, I think Claire has written 0:05:13.760 --> 0:05:15.920 about the E T F jets, which has become this 0:05:16.000 --> 0:05:20.640 really interesting one of and it's just like basically a record, 0:05:21.080 --> 0:05:24.599 uh set a record for inflows because so many people 0:05:24.720 --> 0:05:26.920 were like trying to call the bottom. And then you know, 0:05:27.000 --> 0:05:29.560 even now though we you know, we still don't have 0:05:29.600 --> 0:05:33.480 a recovery, that is meaningful for that industry. So but 0:05:33.520 --> 0:05:36.960 you know, value, Claire, is something that gets kicked around 0:05:36.960 --> 0:05:39.760 a lot, is something that like, it's just this revival 0:05:39.880 --> 0:05:42.000 is always just around the corner. What why would have 0:05:42.080 --> 0:05:48.200 vaccine in particular help value stocks? Yeah, so value stocks, 0:05:48.200 --> 0:05:50.760 we're talking about shares that are sort of trading at 0:05:50.960 --> 0:05:55.400 low prices. Were their assets UM and so a lot 0:05:55.440 --> 0:05:59.800 of the UM has really been hurt by the fact that, 0:06:00.040 --> 0:06:02.680 you know, we've all been locked down and so you know, 0:06:02.720 --> 0:06:05.920 we can't go out to shopping malls and restaurants things 0:06:05.960 --> 0:06:10.080 like that. So some of these UM areas, with a vaccine, 0:06:10.160 --> 0:06:12.599 people might be able to to get out more to 0:06:12.680 --> 0:06:16.320 give small businesses UM their money, and that could help 0:06:16.320 --> 0:06:19.880 get things more back to a more normal economy. And 0:06:19.920 --> 0:06:22.840 that was Bloomberg Business Week editor Joel Webber joined with 0:06:23.080 --> 0:06:25.520 Claire Ballentine, author of what I thought was one of 0:06:25.560 --> 0:06:27.919 the most important stories this week, because it starts to 0:06:27.960 --> 0:06:30.960 answer the question, Carol, what is this next normal look 0:06:31.000 --> 0:06:33.599 like when it comes to the markets? Gotta say, getting 0:06:33.640 --> 0:06:36.679 back to normal? That would certainly be nice. You're listening 0:06:36.720 --> 0:06:39.000 to Bloomberg Business Week. Coming up, Jason, we head to 0:06:39.040 --> 0:06:40.960 your home state. That's right back to the A T. 0:06:41.120 --> 0:06:43.960 L We're going to hear from Morehouse College President David Thomas, 0:06:44.240 --> 0:06:48.479 why his school, world renowned, is going all online this fault, 0:06:48.480 --> 0:06:51.120 and what it's like to be in Atlanta right now 0:06:51.200 --> 0:06:54.840 facing these many crises. He has been ahead of the 0:06:54.880 --> 0:07:04.200 academic pack. This is Bloomberg. This is Bloomberg Business Week 0:07:04.279 --> 0:07:08.520 with Carol Masser and Jason Kelly from Bloomberg Radio. Welcome 0:07:08.560 --> 0:07:11.240 back to Bloomberg Business Week. This week, we're focusing a 0:07:11.280 --> 0:07:14.120 lot Carol on what it's like to get back to 0:07:14.240 --> 0:07:17.960 business and most notably back to school right and simply 0:07:18.000 --> 0:07:21.040 put Jason, it's not easy. One incredibly thoughtful voice on 0:07:21.080 --> 0:07:24.480 this is Morehouse College President David Thomas. We caught up 0:07:24.480 --> 0:07:27.200 with him in our own Bloomberg News higher education finance 0:07:27.240 --> 0:07:30.760 reporter Janet Lauren. Janet began by giving us the big picture. 0:07:30.920 --> 0:07:33.920 A lot of schools have sent kids home because of 0:07:34.040 --> 0:07:38.720 higher test rates of coronavirus. We saw on earlier this week, 0:07:38.800 --> 0:07:41.880 the University of North Carolina said students should go home 0:07:42.040 --> 0:07:45.160 because a lot of kids were testing positive. Notre Dame 0:07:45.200 --> 0:07:48.760 had eighties students test positive in one day, and they 0:07:48.800 --> 0:07:52.240 decided to pause in person activity for two weeks and 0:07:52.280 --> 0:07:55.600 see what happens in Michigan State said that they would 0:07:55.600 --> 0:07:59.120 they would not be having on campus program. Right, Yeah, 0:07:59.160 --> 0:08:01.880 that's our back draw. Let's bring in David Thomas. He's 0:08:01.920 --> 0:08:06.400 President Morehouse College. He joins us on the phone from 0:08:06.520 --> 0:08:09.600 Atlanta on this Wednesday long. Of course, as you just 0:08:09.640 --> 0:08:14.120 heard with Jenna Lauren, our higher education finance reporter, President Thomas, 0:08:14.200 --> 0:08:16.960 so nice to have you here with us. You know, 0:08:17.080 --> 0:08:20.720 there's a lot on the plate of our countries, colleges 0:08:20.720 --> 0:08:26.640 and universities, the virus, reopening, virtual learning, the cost of education, inequalities. 0:08:26.960 --> 0:08:30.960 What's top of mind for you right now? Well, top 0:08:30.960 --> 0:08:35.840 of top of minds for me is one making sure 0:08:35.920 --> 0:08:39.839 that the quality of what we offer online this semester 0:08:40.800 --> 0:08:43.880 far exceeds what we were able to do last semester, 0:08:44.800 --> 0:08:50.240 and that we're also able to create community in this 0:08:50.440 --> 0:08:54.440 virtual environment, because that's one of the things that draw 0:08:54.679 --> 0:09:00.360 students to more House College. UM, and so we've fired 0:09:00.480 --> 0:09:03.320 all of our faculty who are going to teach UH 0:09:03.559 --> 0:09:08.079 this semester to be certified in online education because one 0:09:08.120 --> 0:09:10.640 of the things we learned is that there's a difference 0:09:10.720 --> 0:09:17.160 between online education and remote instruction. Remote instruction is where 0:09:17.200 --> 0:09:21.000 you essentially do what you do in an in person classroom, 0:09:21.040 --> 0:09:25.640 you just being taked or delivering it on Zoom or 0:09:25.720 --> 0:09:31.640 some other video platform, whereas online education there's actually a 0:09:31.640 --> 0:09:34.440 pedagogy to it that makes it much more dynamics. So 0:09:34.520 --> 0:09:37.720 we've invested in that. And the other thing that you 0:09:37.800 --> 0:09:42.040 know keeps me awake at night is you know whether 0:09:42.160 --> 0:09:44.480 or not we'll be able to bring our students back 0:09:44.640 --> 0:09:49.360 for the spring semester given what we're seeing happen with 0:09:49.480 --> 0:09:54.880 the virus, in particular in the state of Georgia, where 0:09:54.920 --> 0:10:02.400 our positivity rates testing rates are in double digits right now. Well, 0:10:02.559 --> 0:10:05.920 you made the decision quite early on among colleges that 0:10:05.960 --> 0:10:08.559 you could not do in person because there was too 0:10:08.640 --> 0:10:11.520 much risk for everybody, not only the students but also 0:10:11.640 --> 0:10:14.959 the other people working on campus. Now other schools are 0:10:14.960 --> 0:10:17.480 seeing their decisions may not have been such a great 0:10:17.520 --> 0:10:21.200 idea to invite students onto campus, and they're having to 0:10:21.280 --> 0:10:23.800 pivot at a very late date when kids are already there. 0:10:24.120 --> 0:10:27.240 Can you talk about what went into your decision? Yeah, 0:10:27.280 --> 0:10:31.840 it was it was very um, very straightforward. We very 0:10:31.880 --> 0:10:36.800 early on decided that the number one priority for us 0:10:37.120 --> 0:10:42.960 would be keeping our students and our staff and faculty 0:10:43.360 --> 0:10:48.319 say from a health and wellness perspective, and then our 0:10:48.360 --> 0:10:51.240 second priority was ensuring the quality of what we could 0:10:51.240 --> 0:10:57.000 provide educationally. And the last, the third priority was what 0:10:57.280 --> 0:11:00.040 what's going to be the financial impact, because we have 0:11:00.160 --> 0:11:04.720 to stay viable financially, and being clear about that made 0:11:04.720 --> 0:11:11.280 it pretty straightforward for us to move through our decision 0:11:11.440 --> 0:11:16.240 tree and to wind up being among the first schools 0:11:16.280 --> 0:11:20.240 to say that we would be fully remote, especially in 0:11:20.280 --> 0:11:25.400 the context of Georgia, where we also faced a very 0:11:25.400 --> 0:11:30.480 confusing political environment where literally at one point we had 0:11:30.520 --> 0:11:35.240 the governor suing the mayor over whether mass could be 0:11:35.320 --> 0:11:39.800 mandated in the city of Atlanta because the governor was 0:11:39.840 --> 0:11:41.959 not going to allow that to happen in the state 0:11:42.000 --> 0:11:45.480 of Georgia, and we were going to mandate MASK on 0:11:45.520 --> 0:11:50.400 our campus. And it's hard to enforce a rule, you know, 0:11:50.559 --> 0:11:53.719 when students might raise the question, well, that's that's not 0:11:53.840 --> 0:11:55.880 legal in the state. If the mayor can do it, 0:11:55.960 --> 0:11:59.719 how can the college do it? So so that just 0:12:00.000 --> 0:12:04.880 at us on a decision tree, and when we saw 0:12:04.960 --> 0:12:09.800 the rate of positive tests going up, that led us 0:12:09.840 --> 0:12:13.199 to reverse our earlier decision, which was that we would 0:12:13.200 --> 0:12:20.240 be in a low density hybrid format um and uh, 0:12:20.280 --> 0:12:22.720 but it was, you know, in many ways, it was 0:12:22.760 --> 0:12:27.560 pretty straightforward because we just got very clear about, you know, 0:12:27.760 --> 0:12:31.480 what our priorities were in our principles. You may also 0:12:31.559 --> 0:12:34.680 know that we were the first school, first scholarship granting 0:12:34.720 --> 0:12:40.600 school to cancel fall h football in the country, and 0:12:40.640 --> 0:12:44.240 we did that almost three months ago. Uh, and we're 0:12:44.320 --> 0:12:48.880 using the same set of principles. What we've seen is 0:12:49.360 --> 0:12:55.400 the confluence of two pandemics. The first is the COVID 0:12:55.480 --> 0:13:04.960 pandemic and the second is the pandemic of institutionalized racism 0:13:05.120 --> 0:13:12.160 in our institutions and organizations. And you know, if we 0:13:12.240 --> 0:13:19.320 look at COVID, it's revealed just stark inequities in health 0:13:19.400 --> 0:13:23.920 outcomes along lines of race. And then if we look 0:13:23.960 --> 0:13:28.320 at the pandemic of institutionalized racism, what it brings our 0:13:28.360 --> 0:13:32.120 attention to is the fact that there are still policies 0:13:32.160 --> 0:13:38.160 and practices that give license to the conscious and unconscious 0:13:38.200 --> 0:13:46.439 biases that devalue black, black lives and brown lives. That's 0:13:46.480 --> 0:13:49.560 more House College President David Thomas, along with Bloomberg News 0:13:49.600 --> 0:13:54.120 Higher Ed Finance reporter Janet Lauren, those biases and institutionalized 0:13:54.400 --> 0:13:57.599 racism that President Thomas talked about are really, Jason, the 0:13:57.679 --> 0:13:59.760 root of our problems and what struck us as how, 0:13:59.760 --> 0:14:02.920 He's said that well known leaders are now talking about 0:14:03.000 --> 0:14:06.160 it openly and that gives him some hope for some changes. 0:14:06.320 --> 0:14:08.920 And check out that entire conversation on our podcast feed. 0:14:08.920 --> 0:14:11.840 Coming up, How do you think about making sure that 0:14:11.920 --> 0:14:15.960 you're developing a resilient supply chain across a lot of 0:14:16.000 --> 0:14:18.160 different areas. We're going to hear from the President and 0:14:18.200 --> 0:14:28.680 CEO Blue Apron, Linda Kaslowski. This is Bloomberg. This is 0:14:28.720 --> 0:14:32.680 Bloomberg Business Week with Carol Masser and Jason Kelly from 0:14:32.760 --> 0:14:35.720 Bloomberg Radio. So, Jason, food has been a theme, you 0:14:35.760 --> 0:14:37.480 know that we returned to a lot in our show, 0:14:37.520 --> 0:14:40.440 including this week big changes as a result of the virus. 0:14:40.680 --> 0:14:43.680 We're all cooking and eating at home more than ever before. 0:14:43.760 --> 0:14:46.200 No one knows that more than Blue Apron President and 0:14:46.240 --> 0:14:49.720 CEO Linda Kozlowski, who has learned to adapt her business 0:14:49.920 --> 0:14:53.200 and as a leader as things have evolved. You know, obviously, 0:14:53.280 --> 0:14:57.280 when when COVID first hit, it was uncertain, you know, 0:14:57.400 --> 0:14:59.320 when things were going to change, how things were going 0:14:59.360 --> 0:15:02.800 to change, how people's behavior and reactions would adjust as 0:15:03.200 --> 0:15:05.680 as things move forward. And what we are seeing is 0:15:05.720 --> 0:15:09.200 we are seeing continued demand for the products UM as 0:15:09.840 --> 0:15:13.040 as people sort of grapple with the new reality and 0:15:13.160 --> 0:15:15.080 think about how much time they want to spend at 0:15:15.120 --> 0:15:17.240 home versus how much time they want to you know, 0:15:17.360 --> 0:15:20.480 want to be out even as things open again. UM. 0:15:20.600 --> 0:15:22.840 There's a lot of new information out in the in 0:15:22.880 --> 0:15:26.720 the world about about continuing to be cautious and continuing 0:15:26.760 --> 0:15:31.200 to UM to sort of stay inside when possible, and 0:15:31.200 --> 0:15:33.840 and how to safely have contacts with other people. But 0:15:33.960 --> 0:15:36.360 we are seeing sort of the manifestation of the trend 0:15:36.480 --> 0:15:39.200 that we talked about in early May, which is the 0:15:39.240 --> 0:15:42.960 fact that people are telling us that no matter what happens, UM, 0:15:43.040 --> 0:15:46.880 they are starting to plan on cooking at home more. UM. 0:15:46.960 --> 0:15:49.400 This is a habit that they've really started to form. 0:15:49.680 --> 0:15:53.000 UM Again, internal and external researches all pointing pointing to 0:15:53.120 --> 0:15:55.880 the same thing that no matter what happens, as things 0:15:55.880 --> 0:15:58.400 start to ease up and restaurants open, what have you, 0:15:58.920 --> 0:16:01.120 that people have gotten what more confident in the kitchen 0:16:01.120 --> 0:16:02.960 and they plan on continuing to cook at home and 0:16:03.280 --> 0:16:06.360 they want interesting solutions to help them think about how 0:16:06.360 --> 0:16:09.440 to make that time more connected to family and less 0:16:09.440 --> 0:16:13.120 focused on preparation and planning. So we're continuing to see 0:16:13.120 --> 0:16:15.440 that trend. I do wonder landed too. You know, when 0:16:15.440 --> 0:16:17.680 you think about scenario planning, right, you think about those 0:16:17.720 --> 0:16:19.640 things that you know out of the box that could 0:16:19.720 --> 0:16:22.400 happen in the pandemic is certainly one of those things. 0:16:22.400 --> 0:16:25.200 But I do think as you look down the road, 0:16:25.240 --> 0:16:29.360 I think you know, when normal returns, you know, what 0:16:29.400 --> 0:16:32.080 are you doing though, and are you thinking about, you know, 0:16:32.200 --> 0:16:35.640 managing and an inevitable fall off in your business? Do 0:16:35.680 --> 0:16:40.160 you anticipate that? Well, I think that's a little bit 0:16:40.200 --> 0:16:43.280 of what UM, what I was referring to earlier. UM, 0:16:43.320 --> 0:16:45.160 you know, there's always going to be ebbs and flows 0:16:45.200 --> 0:16:48.400 as people have different needs. But what we're planning for 0:16:48.720 --> 0:16:51.160 is staying on the thing strategy we wrong before. So 0:16:51.280 --> 0:16:54.080 before we actually got into the pandemic, we had a 0:16:54.120 --> 0:16:57.320 growth strategy that was obviously not based on a pandemic. 0:16:57.360 --> 0:17:01.360 It was based on product improvements, marketing improvements, and audience expansions, 0:17:01.720 --> 0:17:05.280 and we already thought that come together into one UM. 0:17:05.359 --> 0:17:08.679 And now we're continuing to see that those products improvements, 0:17:08.680 --> 0:17:11.159 which we are continuing to do as we sort of 0:17:11.160 --> 0:17:14.760 ease out of the pandemic. Um are engaging people and 0:17:14.760 --> 0:17:18.640 and keeping them involved with the product. So it's there 0:17:18.640 --> 0:17:20.720 will always be ebbs and flows to the business. And 0:17:20.800 --> 0:17:24.080 again there's seasonality trends um when we return to whatever 0:17:24.119 --> 0:17:26.840 that new normal is. But we're more focused on the 0:17:26.920 --> 0:17:29.880 longer term growth potential of some of the product improvements 0:17:29.880 --> 0:17:33.880 that we're putting in around variety, flexibility, healthier options, and 0:17:34.000 --> 0:17:37.720 continuing to drive new ways to create that variety in 0:17:37.760 --> 0:17:41.440 our business, while also managing the complexity and being able 0:17:41.480 --> 0:17:44.920 to expand our operations without having to put significant capital 0:17:44.960 --> 0:17:48.120 at that operations given we already have so much ability 0:17:48.160 --> 0:17:49.760 to do that now. We we made a lot of 0:17:49.760 --> 0:17:52.520 investments early on that are now paying off in in 0:17:52.600 --> 0:17:56.480 automation and the and the ability to um to scale 0:17:56.520 --> 0:17:59.920 with labor essentially. So Linda talk to us about sort 0:18:00.280 --> 0:18:02.920 the supply chain and the logistics side of this, were 0:18:02.920 --> 0:18:05.680 there are things that you had to sort of resolve 0:18:05.720 --> 0:18:09.040 along the way. I mean, you've got folks obviously working physically, 0:18:09.040 --> 0:18:12.159 but you've got other folks working remotely. You're dealing with 0:18:12.160 --> 0:18:15.439 different suppliers. Talk to us about that process of maybe 0:18:15.440 --> 0:18:19.720 solving some of those issues. Yes, so I think the 0:18:19.720 --> 0:18:21.639 the initial thing that we did was very similar to 0:18:21.680 --> 0:18:23.760 what a lot of people did, which is, how do 0:18:23.840 --> 0:18:28.520 you think about making sure that you're developing a resilient 0:18:28.640 --> 0:18:32.560 supply chain across across a lot of different areas at 0:18:32.600 --> 0:18:36.119 the same time. Simplicity is key when faced with UM 0:18:36.440 --> 0:18:39.639 rapidly changing environments. So early on we did make some 0:18:39.680 --> 0:18:43.119 modifications to our menu to to simplify and streamline some 0:18:43.280 --> 0:18:46.440 of the recipe availability, to make it faster and easier 0:18:46.560 --> 0:18:49.480 to pack and to manage logistics than Over time, we 0:18:49.600 --> 0:18:52.160 reintroduced that complexity back in and then it can again 0:18:52.200 --> 0:18:55.480 continued to evolve the products itself with new product offerings 0:18:55.920 --> 0:18:58.480 UM as we were able to manage some of those 0:18:58.480 --> 0:19:00.960 ebbs and flows and continue you to bring labor into 0:19:01.000 --> 0:19:03.919 the facility. So UM a lot of people had to 0:19:03.920 --> 0:19:07.360 streamline their their menus and and look at ways to 0:19:07.359 --> 0:19:10.560 to to avoid some complexity early on, and we're really 0:19:10.600 --> 0:19:13.199 happy that we're able to start bringing that complexity back in. 0:19:13.280 --> 0:19:15.840 We're already back up the full service on our our 0:19:15.880 --> 0:19:20.160 family menu and UM and very close to full variety 0:19:20.240 --> 0:19:22.720 on our two person menu, and so we're going to 0:19:22.800 --> 0:19:25.640 continue to do that along with introducing the new products 0:19:25.640 --> 0:19:28.360 and variety that we have into play. On the supply 0:19:28.440 --> 0:19:30.679 chain side, that's some a scenario where we've had an 0:19:30.720 --> 0:19:33.440 advantage for quite some time because we've worked so closely 0:19:33.480 --> 0:19:36.760 with the producers and because UM we have really really 0:19:36.800 --> 0:19:40.520 high quality standards for our ingredients. UM, we've always had 0:19:40.720 --> 0:19:44.320 really great relationships with our suppliers. We can considit move 0:19:44.440 --> 0:19:47.359 very quickly depending on supply, and we also have the 0:19:47.400 --> 0:19:49.639 ability to substitute and swap out if there's ever a 0:19:49.720 --> 0:19:52.920 challenge UM because of the nature of how our recipes 0:19:52.920 --> 0:19:55.480 are built, and so we're able to really flex that 0:19:55.600 --> 0:19:57.359 supply chain to make sure that we don't have to 0:19:57.400 --> 0:20:00.080 sacrifice any quality during this time where we continue need 0:20:00.119 --> 0:20:02.840 to ramp volume. And that's Blue Apron President and CEO 0:20:02.960 --> 0:20:06.240 Linda Kozlowski back with us. One of the things we're learning, Carol, 0:20:06.480 --> 0:20:09.200 we're gonna be acting differently going forward, and we're gonna 0:20:09.200 --> 0:20:11.679 be eating and cooking more at home, no doubt about that. 0:20:11.720 --> 0:20:14.480 You're listening to Bloomberg Business Week coming up. No one 0:20:15.080 --> 0:20:19.919 wants thousands of people. Carnival Corporation CEO and president Arnold 0:20:19.920 --> 0:20:23.160 Donald on how Carnival is getting back to the high seas. 0:20:23.200 --> 0:20:31.000 This is Bloomberg. This is Bloomberg Business Week with Carol 0:20:31.040 --> 0:20:35.280 Masser and Jason Kelly from Bloomberg Radio. Well, Carol, while 0:20:35.320 --> 0:20:38.840 I was on vacation, I was not notably on a cruise, 0:20:38.960 --> 0:20:43.600 but you got to look at the future of that business. Wow. Yeah, exactly. 0:20:43.640 --> 0:20:47.280 An exclusive interview we caught up with Carnival Corporations Arnold Donald. 0:20:47.320 --> 0:20:49.639 We know the cruise industry is one of the hardest 0:20:49.720 --> 0:20:53.000 hit because of the virus, so many issues at play. 0:20:53.040 --> 0:20:56.280 They're losing money, they're raising billions more, they're selling off ships. 0:20:56.480 --> 0:20:59.639 Bottom line though, it's all about getting passengers back to 0:20:59.680 --> 0:21:04.359 see First of all, you know, our primary responsibilities and 0:21:04.359 --> 0:21:08.600 therefore our top priority is always compliance, environmental protection and 0:21:08.600 --> 0:21:11.840 the health, safety and well being of our guests, of 0:21:11.920 --> 0:21:13.800 the people in the places we go, and of course 0:21:14.200 --> 0:21:17.960 our Carnival family, our shipboard and short side personnel. So 0:21:18.320 --> 0:21:20.840 you know, the interests of public health is always in 0:21:20.840 --> 0:21:22.600 the forefront for us. And how do we get people 0:21:22.640 --> 0:21:27.159 back on ships when there's some social gathering and society 0:21:27.320 --> 0:21:31.840 has developed the compensating measures that is comfortable with that 0:21:31.880 --> 0:21:36.040 we have effectively mitigated the spread of COVID nineteen, and 0:21:36.080 --> 0:21:37.679 then we'll be able to cruise again. And there are 0:21:37.680 --> 0:21:39.680 a lot of people, as you know, Caro, who are 0:21:39.680 --> 0:21:42.720 ready to cruise right now. And in fact, we're looking 0:21:42.760 --> 0:21:45.880 at starting up in Europe where the spread has been 0:21:46.280 --> 0:21:49.919 mitigated substantially, in places like Germany and Italy, and we're 0:21:49.920 --> 0:21:52.440 looking at starting up in September there and a few 0:21:52.840 --> 0:21:55.399 um cruise lines have but there's a lot of pin 0:21:55.520 --> 0:21:58.119 up demand, you know, for travel in general, and especially 0:21:58.160 --> 0:22:00.800 for cruise. Well, and when I wonder, Arnold, though, can 0:22:00.840 --> 0:22:02.359 you kind of drill down a little bit what are 0:22:02.400 --> 0:22:04.320 some of the specific protocols that you might put in 0:22:04.359 --> 0:22:07.080 place to get ships safely back at sea. I've been reading, 0:22:07.520 --> 0:22:09.560 you know, about different folks and what they might be 0:22:09.600 --> 0:22:13.440 considering different cruise lines. They're talking about no buffets, constant 0:22:13.640 --> 0:22:18.440 um temperature checks, constant testing, maybe no excursions. What specific 0:22:18.440 --> 0:22:21.200 protocols will you be putting in place? Well, again, as 0:22:21.200 --> 0:22:23.240 you well know, we we have a lot of measures 0:22:23.240 --> 0:22:27.760 in place already on cruise that often short side destinations 0:22:27.840 --> 0:22:30.359 don't already have or didn't have prior to COVID nineteen. 0:22:30.400 --> 0:22:33.600 We do medical screens. We were already doing temperature checks 0:22:33.600 --> 0:22:37.359 in many cases. UM, we had hand sanitizers throughout the 0:22:37.359 --> 0:22:39.920 ship and signs all over about washing your hands because 0:22:39.960 --> 0:22:42.400 we've had to deal with viruses and the over seven 0:22:42.800 --> 0:22:45.960 ports and destinations we go to annually for many years now. 0:22:45.960 --> 0:22:49.520 Of course, CORVID nineteen is especially unique because the whole 0:22:49.560 --> 0:22:52.120 world is shut down, and because of that, there's still 0:22:52.160 --> 0:22:54.760 a lot of learning around COVID nineteen. As you know 0:22:55.119 --> 0:22:58.480 from all the scientists, they're still a line around epidemiology, 0:22:58.480 --> 0:23:00.880 they're lying around testing, their a line around the role 0:23:00.920 --> 0:23:05.960 of testing. The one thing everybody right now is aligned on, though, 0:23:06.440 --> 0:23:09.520 is that you know, good personal care in terms of 0:23:09.560 --> 0:23:13.680 wearing a mask, washing your hands, um, using hand sanitizers, 0:23:14.119 --> 0:23:16.840 you know, physical distancing at appropriate times, but wearing a 0:23:16.920 --> 0:23:20.280 mask is a great way to mitigate the spread. So 0:23:20.480 --> 0:23:23.920