WEBVTT - Bloomberg Businessweek Weekend - May 23rd, 2020 0:00:02.200 --> 0:00:07.360 This is Bloomberg Business Week from Bloomberg Radio. Hi Jason 0:00:07.400 --> 0:00:09.840 Kelly and I'm Carol Masser. Welcome to the weekend edition 0:00:09.840 --> 0:00:12.360 of Bloomberg Business Week. This week we'll bring you some 0:00:12.400 --> 0:00:15.920 of the most important and informative coronavirus conversations we've had 0:00:15.960 --> 0:00:18.400 throughout the week on our daily radio show. And I 0:00:18.440 --> 0:00:21.960 was thinking, Jason, here we are week ten. When we 0:00:22.000 --> 0:00:25.840 began working from home, spring was just getting underway, and 0:00:25.920 --> 0:00:28.480 now here we are kind of the unofficial start to 0:00:28.560 --> 0:00:32.519 summer Memorial Day weekend. Yeah, it's really fascinating to think 0:00:32.560 --> 0:00:36.400 about and the whole notion of ten weeks of doing this. 0:00:36.479 --> 0:00:39.120 I mean, what was last week and last time, rather 0:00:39.360 --> 0:00:43.600 you did something for ten weeks you know, something really uh, 0:00:43.680 --> 0:00:49.200 supremely and radically different. Our world has changed, and that 0:00:49.320 --> 0:00:51.520 is for sure, right, And this week involved so many 0:00:51.560 --> 0:00:53.880 conversations over what is turning out to be one of 0:00:53.880 --> 0:00:56.400 the most difficult questions of our time. It's about reopening 0:00:56.440 --> 0:00:59.040 the economy. Do we do it too soon or too late? 0:00:59.080 --> 0:01:02.320 And what will be the call of either decision? That 0:01:02.360 --> 0:01:04.800 in fact is our cover story of the magazines double 0:01:04.840 --> 0:01:06.560 issue this week. We'll have more on that a little 0:01:06.600 --> 0:01:09.080 bit later on, well, and we heard from some really 0:01:09.120 --> 0:01:12.679 interesting people, some very familiar names, folks you've heard on 0:01:12.760 --> 0:01:15.959 our air before, and some new voices. Klaus Zelmer he's 0:01:16.000 --> 0:01:21.440 the president CEO of Porsche Cars North America. Also Ian Shreeger, Yeah, 0:01:21.520 --> 0:01:24.560 Ian traeger Man. When it comes to hospitality and innovation 0:01:24.600 --> 0:01:27.479 in hotels and really living overall, this is the guy. 0:01:27.880 --> 0:01:30.240 He has been at it for fifty years. So we 0:01:30.319 --> 0:01:33.000 caught up with him about the impact and really what 0:01:33.280 --> 0:01:35.960 everything is going to look like, especially for big cities, right, 0:01:36.280 --> 0:01:38.840 what it looks like. Later on, we also heard from 0:01:38.880 --> 0:01:42.880 Facebook's Cheryl Sandberg, author of Lean In, and we felt 0:01:42.920 --> 0:01:45.440 like we were leaning in to this notion of what's 0:01:45.440 --> 0:01:48.320 going to happen to small businesses that is one of 0:01:48.360 --> 0:01:51.720 the biggest questions facing the US economy. First up, though, 0:01:51.920 --> 0:01:54.960 we spoke with Dr Bill Hasletine. He is the chairman 0:01:55.000 --> 0:01:59.840 and president of Access Health International. Incredibly well known in 0:01:59.880 --> 0:02:02.040 the world of medicine. He has worked on some of 0:02:02.080 --> 0:02:05.240 the biggest medical questions of our time. Right, He's now 0:02:05.280 --> 0:02:07.440 got a nonprofit, but let's not forget he found in 0:02:07.480 --> 0:02:10.880 more than a dozen companies, including Human Genome Sciences. He 0:02:11.040 --> 0:02:14.760 reminds us that testing, tracing and strict isolation will be 0:02:14.840 --> 0:02:18.480 the only way we really beat the virus. I see 0:02:18.480 --> 0:02:23.600 it as a small step forward and a lot of hype. Interesting, 0:02:23.720 --> 0:02:26.600 tell us more, Yeah, explain why? Well, there are eight 0:02:26.639 --> 0:02:30.120 pages that they reported. The data is not public, we 0:02:30.160 --> 0:02:33.880 can evaluate it. We don't know what actually happened, and 0:02:33.919 --> 0:02:39.480 there are other reports of published papers by scientists around 0:02:39.480 --> 0:02:42.120 the world who have uh done thet least what they've 0:02:42.120 --> 0:02:45.480 done and perhaps more so. That's why I say it's 0:02:45.560 --> 0:02:47.400 a little bit of news and a lot of hype. 0:02:47.639 --> 0:02:51.760 And so when you look at that, is this just people, really, 0:02:52.200 --> 0:02:55.200 the market in particular, and maybe us just as human 0:02:55.240 --> 0:02:58.840 beings looking and grabbing onto to some sliver of hope 0:02:58.880 --> 0:03:05.280 here Dr hazeltine. You know, hope has been the handmaid 0:03:05.440 --> 0:03:10.079 of scoundrels for generations. It's what allows us to be conned. 0:03:11.000 --> 0:03:14.800 We need hope, but hope is also dangerous. We have 0:03:14.840 --> 0:03:18.079 to be careful with it. I'm not saying that that 0:03:18.160 --> 0:03:21.959 vaccine won't work. I'm just saying it's a very slender 0:03:22.040 --> 0:03:28.600 thread to move on the market. Well, having said, go ahead, no, no, no, 0:03:28.639 --> 0:03:30.240 well you know what, let me just because we want 0:03:30.240 --> 0:03:32.360 to continue this line of thought, we did. They catch up. 0:03:32.480 --> 0:03:35.440 Our Bloomberg News team on the TV side caught up 0:03:35.440 --> 0:03:39.280 at the Modernity CEO Stefan bontell Um and talked about 0:03:39.480 --> 0:03:42.040 Phase three the trial, specifically that they expect by July. 0:03:42.160 --> 0:03:44.480 Let's just listen to a snippet of that interview. We 0:03:44.520 --> 0:03:47.640 are finalizing the protocol for a Phase three, which is 0:03:47.640 --> 0:03:51.960 the last clinical study before Provolo, which we are hoping 0:03:52.040 --> 0:03:55.880 to stop in July of this year. Of the study 0:03:55.960 --> 0:04:01.160 will be several thousand, has the subjects across many contries. 0:04:01.840 --> 0:04:03.960 We are finalizing the post code as we speak with 0:04:04.080 --> 0:04:07.400 the v and we're hoping that people can start in July. 0:04:07.560 --> 0:04:11.120 As these all plans. So Phase three, as we know, 0:04:11.480 --> 0:04:15.840 and you certainly know, Dr Hazeltine is an important process. 0:04:15.960 --> 0:04:19.760 But but it reminds us that there's still a lot 0:04:19.920 --> 0:04:23.720 to be known, right, There's a lot to be known. No, 0:04:24.040 --> 0:04:27.120 as far as we know, there's been no real challenge 0:04:27.120 --> 0:04:29.719 and a human being. And I can say that I've 0:04:29.720 --> 0:04:35.680 been reviewing the literature of vaccine efforts over many years, 0:04:36.760 --> 0:04:41.360 first with Stars, then with MERSU and other coronaviruses. This 0:04:41.440 --> 0:04:45.479 is not a simple problem. Um. There are a number 0:04:45.520 --> 0:04:48.200 of different attempts that have been made, there are results 0:04:48.240 --> 0:04:51.560 that look at least as good as these results from 0:04:51.680 --> 0:04:55.920 two other laboratories. Uh, and so it's it's very premature. 0:04:56.040 --> 0:04:57.760 Doesn't mean it's not gonna work. I don't want to 0:04:57.800 --> 0:05:00.080 say that I have any information about whether it's at 0:05:00.240 --> 0:05:03.240 work or not. All I can say is the kinds 0:05:03.240 --> 0:05:08.920 of signals they're getting are expected at this stage. They 0:05:08.960 --> 0:05:14.279 don't necessarily mean that the vaccine will protect anybody, or 0:05:14.320 --> 0:05:17.320 if they do protect it, how long they will protect them. 0:05:17.400 --> 0:05:19.920 There's a lot of questions that remain to be done, 0:05:20.160 --> 0:05:23.960 and eight people is a far too small study, you know, 0:05:24.080 --> 0:05:28.599 whether it's even safe. So you know, I think making 0:05:28.640 --> 0:05:32.680 a big announcement that moves the market on a first 0:05:32.720 --> 0:05:35.839 in human study for a people is an extraordinary event 0:05:36.960 --> 0:05:41.800 in biomedical science. It just doesn't happen. Uh. The fact 0:05:41.880 --> 0:05:45.920 that this has happened puts I think we all understand 0:05:46.000 --> 0:05:49.760 why we're all desperate to see an end to this disease. 0:05:49.839 --> 0:05:53.880 We have friends, we have children and grandchildren were deeply 0:05:53.880 --> 0:05:58.880 worried about. UH. We're all upset about the economy and 0:05:58.920 --> 0:06:00.920 the way this has changed our lives, and we are 0:06:00.920 --> 0:06:03.880 hoping for an act, but hope is not the answer. 0:06:04.480 --> 0:06:08.960 Really hard data is the answer to what's what we 0:06:09.000 --> 0:06:11.919 need and we haven't seen that yet. And that's Dr 0:06:11.960 --> 0:06:17.080 Bill Hazeltine, Chairman, President of Access Health International, that historical perspective, 0:06:17.160 --> 0:06:20.440 but also hearkening back to our theme last week, Carol, 0:06:20.640 --> 0:06:22.800 a little bit of a reality check. We caught up 0:06:22.839 --> 0:06:25.280 with him, and it's important to note, you know, these 0:06:25.320 --> 0:06:29.040 were conversations that we taped throughout the week. We were 0:06:29.040 --> 0:06:31.080 talking to him on a day where the market was 0:06:31.200 --> 0:06:36.760 a bulliant over the Maderna vaccine results as very early results. 0:06:36.800 --> 0:06:39.599 And I liked what he said because it made us, 0:06:39.640 --> 0:06:42.560 I think, take a much more realistic view. And the 0:06:42.600 --> 0:06:44.440 week really pour that out well, and I love what 0:06:44.480 --> 0:06:46.520 he said, Hope is not the answer. We need real 0:06:46.640 --> 0:06:49.840 hard data. Ultimately, that is what we need to get 0:06:49.880 --> 0:06:52.320 ahead of this virus. All right, you're listening to Bloomberg 0:06:52.360 --> 0:06:55.039 Business Week coming up a conversation about small business with 0:06:55.120 --> 0:06:58.039 Facebook CEO Cheryl Sandberg and the survey that they have 0:06:58.160 --> 0:07:00.960 done that shows one third of small businesses they have 0:07:01.040 --> 0:07:04.400 stopped operating a bleak landscape. For sure. This is Bloomberg. 0:07:09.600 --> 0:07:13.120 This is Bloomberg Business Week with Carol Masser and Jason 0:07:13.200 --> 0:07:16.640 Kelly from Bloomberg Radio. Well, today we're bringing you some 0:07:16.680 --> 0:07:19.240 of the most important, we hope informative conversations we had 0:07:19.520 --> 0:07:22.760 on our daily Bloomberg Business Week radio show this week. 0:07:23.160 --> 0:07:27.720 We're talking about an economy reopening, but we're also talking 0:07:27.720 --> 0:07:32.040 about an economy Carol, that is totally and fundamentally and 0:07:32.160 --> 0:07:35.240 maybe permanently changed. Yeah, and nowhere do you see that 0:07:35.240 --> 0:07:37.800 more starkly than with small business. Facebook, in fact, had 0:07:37.800 --> 0:07:41.120 some news Jason this week about a recommitment to commerce 0:07:41.120 --> 0:07:43.400 with small business. They announced a new digital storefront, it's 0:07:43.440 --> 0:07:46.320 called Shops. They also released the results of a survey 0:07:46.400 --> 0:07:49.600 about the viruses impact on small business and for that, Jason, 0:07:49.640 --> 0:07:52.440 we caught up with Facebook CEO Cheryl Sandberg. We heard 0:07:52.440 --> 0:07:54.840 more about the survey results, and she brought along a 0:07:54.840 --> 0:07:58.280 small business owner, Seemi at Abajo, owner of Eco. They 0:07:58.280 --> 0:08:01.800 both joined us from the West coast. Survey is quite devastating, 0:08:02.000 --> 0:08:05.160 you know. We started working on this actually before coronavirus 0:08:05.200 --> 0:08:07.400 with a small business round people and we thought we'd 0:08:07.440 --> 0:08:09.160 put a survey out, you know, the state of small 0:08:09.200 --> 0:08:12.760 business and it would be very very positive. Right. Unemployment 0:08:12.800 --> 0:08:17.360 a historically low levels entrepreneurship thriving, and then coronavirus hit 0:08:17.400 --> 0:08:19.480 and the picture we got back was sobering. But I 0:08:19.520 --> 0:08:21.960 think even more important, more than a third of small 0:08:22.000 --> 0:08:27.360 businesses have stopped operating entirely expects to fail if things 0:08:27.400 --> 0:08:29.720 don't change within the next few months. And the stat 0:08:29.800 --> 0:08:32.120 that really hit me was more than half of small 0:08:32.160 --> 0:08:34.240 business owners don't think they're going to be able to 0:08:34.240 --> 0:08:37.600 rehire their employees. Absolutely. So, see me, you had this 0:08:37.760 --> 0:08:42.480 exact experience, so help us understand exactly what happened. I mean, 0:08:42.559 --> 0:08:45.640 your story has something of a happy ending, But that 0:08:45.679 --> 0:08:48.560 devastation that that Cheryl talked about, I mean you experienced 0:08:48.559 --> 0:08:51.680 it firsthand right off the bat. Um. Yeah, so I 0:08:51.760 --> 0:08:54.680 experienced the first time because one deful thing hit. I 0:08:54.800 --> 0:08:57.079 had to let both my whole team and shut down 0:08:57.160 --> 0:09:02.079 my business for the first three before we UM. And 0:09:02.160 --> 0:09:04.680 it's not of me, I guess all restaurant owners and 0:09:04.760 --> 0:09:08.479 small businesses in San Francisco, especially because of the overhead 0:09:08.520 --> 0:09:11.680 that comes with being a business in the city. Um, 0:09:11.800 --> 0:09:15.480 once you have one week, two weeks without customers or 0:09:15.520 --> 0:09:20.200 your usual stream of revenue, you are hemorrhaging funds. UM. 0:09:20.320 --> 0:09:23.360 And I saw very quickly. My restaurant is located in 0:09:23.400 --> 0:09:27.040 the so my neighborhood. UM. Once my business closed, I 0:09:27.080 --> 0:09:29.920 started to see all the other restaurants and corner stores 0:09:29.960 --> 0:09:34.640 around starting to take the same lead. UM. Fortunately for me, 0:09:34.880 --> 0:09:38.760 I connected to an organization that's a nonprofit that's feeding 0:09:39.360 --> 0:09:42.880 the homeless and the elderly and generally vulnerable populations in 0:09:42.880 --> 0:09:45.760 the city right now. So I was able to within 0:09:45.800 --> 0:09:49.720 the past two weeks rehire my cord team. UM. And 0:09:49.760 --> 0:09:52.760 you know, that's a positive story. But UM, that's not 0:09:52.800 --> 0:09:56.439 going to be the case for many small businesses UM 0:09:56.480 --> 0:09:59.280 who are just not gonna be able to rehire their 0:09:59.320 --> 0:10:03.480 course BA another issue, or maybe it's not an issue, 0:10:03.520 --> 0:10:07.280 but one main problem that small business owners are having 0:10:07.320 --> 0:10:10.920 getting their teams back lies within the fact that, UM, 0:10:11.200 --> 0:10:16.240 the employes are sometimes making more unemployment than they would 0:10:16.280 --> 0:10:20.480 be making coming to work, especially now which California is 0:10:20.480 --> 0:10:24.920 a different six dollar payment. UM, there's really no incentive 0:10:25.000 --> 0:10:27.080 for them to go back for work. So it's a 0:10:27.120 --> 0:10:30.640 tough time all around the small businesses right now. So, Cheryl, 0:10:30.679 --> 0:10:33.040 when you see the results of the Facebook survey, and 0:10:33.080 --> 0:10:35.240 we've been talking often a lot about you know, what 0:10:35.360 --> 0:10:37.680 needs to be done especially for small business We just 0:10:37.720 --> 0:10:41.560 came off a conversation you know about you know, our 0:10:41.600 --> 0:10:44.560 backbone is small businesses and it's going to be tough 0:10:44.600 --> 0:10:47.839 for them to resist going back. So what do you 0:10:47.920 --> 0:10:50.800 see as kind of the necessary components to protecting our 0:10:50.840 --> 0:10:53.920 small business community, making them safe so that they can 0:10:54.040 --> 0:10:59.600 come back safely when the environment changes. So look, you know, 0:11:00.000 --> 0:11:03.240 of it is bridging until we get there. So obviously 0:11:03.280 --> 0:11:06.640 the government loans matter. We put a hundred million dollars 0:11:06.640 --> 0:11:09.920 to work and just gramps small businesses all around the world. 0:11:10.400 --> 0:11:13.120 We hearmarked forty million of that for the United States 0:11:13.160 --> 0:11:16.960 and half of that for women, minority and veteran owned businesses. 0:11:17.320 --> 0:11:19.640 Because we all know that when crisis hits, the most 0:11:19.720 --> 0:11:22.960 vulnerable get hit the hardest, and so we all need 0:11:23.000 --> 0:11:25.240 to do everything we can to bridge. We're working on 0:11:25.320 --> 0:11:28.480 more products that helps small businesses go online if they 0:11:28.520 --> 0:11:31.560 weren't online before to the extent they can. They need 0:11:31.600 --> 0:11:34.800 to do more online. Were reaching customers online. We're providing 0:11:34.840 --> 0:11:38.720 services online and then once they come back to work, 0:11:39.040 --> 0:11:42.600 how do we do that safely? We see curb side checkouts, 0:11:42.640 --> 0:11:46.880 we see people doing art classes online. There's an amazing 0:11:46.960 --> 0:11:51.560 story of a bookstore that um located in University City, Missouri. 0:11:51.920 --> 0:11:54.360 They're called I See Me and they're really for black 0:11:54.440 --> 0:11:59.120 children to discover world models and learn about African American history. 0:11:59.240 --> 0:12:01.600 But it's very much community based thing where everyone went 0:12:01.640 --> 0:12:06.480 there in person. They're now doing those same storylines online. 0:12:06.720 --> 0:12:08.600 Local businesses are going to have to be able to 0:12:08.640 --> 0:12:12.960 morph to do more things online, and that's what we're seeing. So, Cheryl, 0:12:12.960 --> 0:12:15.880 I wonder what you make Especially given your background you 0:12:15.880 --> 0:12:18.840 worked at the Treasury Department. You understand the inner workings 0:12:18.880 --> 0:12:22.000 of government really well, the balance between the public and 0:12:22.040 --> 0:12:24.720 the private. What does the government need to do in 0:12:24.760 --> 0:12:28.520 the short and mid term to ensure that private efforts 0:12:28.559 --> 0:12:31.920 like the one that you just described can be successful 0:12:32.040 --> 0:12:33.640 in the long term. What do we need from the 0:12:33.640 --> 0:12:36.720 government at this point? Well, when you ask that question, 0:12:36.760 --> 0:12:38.719 I feel like it's really all hands on, Jack. When 0:12:38.720 --> 0:12:42.120 we need local government, state government, national government to be 0:12:42.200 --> 0:12:45.920 helping bridge for companies, which they are, but also helping 0:12:46.000 --> 0:12:48.600 us keep safe. You know, as we open up, how 0:12:48.640 --> 0:12:51.160 do we do it to protect everyone, make sure our 0:12:51.200 --> 0:12:54.800 hospitals don't don't get overrun, make sure that information is 0:12:54.880 --> 0:12:57.880 clear and flowing. I think you know We've been through 0:12:57.920 --> 0:13:00.360 a lot, but there is a lot at us and 0:13:00.400 --> 0:13:03.120 it has to again be everyone doing their part. And 0:13:03.240 --> 0:13:05.840 I do think about what's interesting is this is a time, 0:13:06.200 --> 0:13:08.520 as you know, I feel like the tech industry was 0:13:08.640 --> 0:13:11.920 largely on everyone's radar, a lot of scrutinyous happening. Do 0:13:12.040 --> 0:13:15.240 you see this time, you know, you talk about the 0:13:15.280 --> 0:13:16.840 things that you guys are doing to help bridge the 0:13:16.880 --> 0:13:19.160 gaps for small businesses? Is this a time to kind 0:13:19.160 --> 0:13:22.840 of potentially, you know, improve your image. You know, the 0:13:22.880 --> 0:13:26.440 government has been looking and and you politicians, I'm just 0:13:26.480 --> 0:13:29.200 curious how you see that. So we've been trying to 0:13:29.240 --> 0:13:32.439 do the right thing all along, and when we've made mistakes, 0:13:32.440 --> 0:13:34.880 were hard to correct them and prevent them next time. 0:13:35.440 --> 0:13:37.560 You know. Right now, we're just rolling up our sleeves 0:13:37.600 --> 0:13:40.960 and doing everything we can to help small businesses get 0:13:40.960 --> 0:13:44.320 through it. Roll up products that can help them, you know, 0:13:44.880 --> 0:13:47.920 things like fundraisers for small business. You know, we had 0:13:47.960 --> 0:13:52.000 fundraisers for nonprofits, we had fundraisers for you know, people, 0:13:52.080 --> 0:13:54.320 but we never would have rolled up fundraisers for small 0:13:54.320 --> 0:13:57.880 business until this crisis. We are just focused on putting 0:13:57.880 --> 0:14:00.520 our efforts to what can help and believe that we 0:14:00.600 --> 0:14:03.160 do the right thing, people will figure that out and 0:14:03.200 --> 0:14:06.480 believe that we are over time. That's Facebook CEO Cheryl 0:14:06.559 --> 0:14:09.080 Sandberg and small business owners see me at a bajo, 0:14:09.640 --> 0:14:14.040 owner of Eco talking really about small businesses, what's going 0:14:14.080 --> 0:14:17.080 on and what needs to happen to help them stay 0:14:17.120 --> 0:14:19.520 alive and come back. I have to say, you know, 0:14:19.560 --> 0:14:22.160 I was thinking back over that conversation, and I think 0:14:22.240 --> 0:14:24.680 you mentioned this later on in the week. You know, 0:14:24.760 --> 0:14:26.880 this notion that you know, Cheryl Sandberg, we talked with 0:14:26.880 --> 0:14:29.880 her about the personal effect. You know, she has been 0:14:29.960 --> 0:14:33.359 sheltered in place like so many people, and yet her 0:14:33.400 --> 0:14:38.520 fiance's family, part of her family, you know, frontline healthcare workers. 0:14:38.520 --> 0:14:41.080 So she has a sense, as many of us do, 0:14:41.200 --> 0:14:44.440 about what it's like beyond our you know, sort of 0:14:44.560 --> 0:14:47.560 cocted worlds that we are fortunate to live in, that 0:14:47.600 --> 0:14:51.280 there are people really fighting this every day. And certainly 0:14:51.520 --> 0:14:54.520 that goes back to small businesses who many in many 0:14:54.560 --> 0:14:57.479 cases if you're talking about restaurants and even some retailers, 0:14:57.600 --> 0:14:59.360 they're on the front lines as well. Yeah, no doubt 0:14:59.360 --> 0:15:01.080 about it. And by in line, she said in terms 0:15:01.080 --> 0:15:02.680 of small business is more than we're going to have 0:15:02.720 --> 0:15:05.280 to morph and go online to really survive. You're listening 0:15:05.320 --> 0:15:07.600 to Bloomberg this week. Coming up staying with tech, we 0:15:07.640 --> 0:15:10.800 hear about a new e commerce app that just launched 0:15:10.880 --> 0:15:14.560 this week, Gets Bold. Yeah, absolutely, coming into a rough environment. 0:15:14.720 --> 0:15:20.920 This is Bloomberg. This is Bloomberg Business Week with Carol 0:15:21.000 --> 0:15:25.280 Masser and Jason Kelly from Bloomberg Radio. We'll bring you 0:15:25.320 --> 0:15:27.720 some of the most important and informative conversations we had 0:15:27.760 --> 0:15:29.680 throughout the week on our daily radio show. And of 0:15:29.720 --> 0:15:32.760 course we have to remind everybody news was happening constantly 0:15:32.800 --> 0:15:35.920 crossing the Bloomberg So all of this happening in real 0:15:36.040 --> 0:15:40.120 time well, and a reminder Carol that business marches on 0:15:40.400 --> 0:15:44.800 and also in times of crisis and in times of disruption, 0:15:45.200 --> 0:15:47.920 some of the biggest ideas emerged. We caught up with 0:15:48.040 --> 0:15:51.840 Julie Bornstein. She launched her new e commerce eports called 0:15:51.960 --> 0:15:55.320 The Yes this week. They delayed it back in March. 0:15:55.600 --> 0:15:59.000 She has an incredible history in the world of retail 0:15:59.160 --> 0:16:01.600 and eco comer. She worked at Nordstrom. She was the 0:16:01.640 --> 0:16:04.920 CEO of stitch Fixed. Check it Out CS is a 0:16:04.920 --> 0:16:09.200 new shopping platform that makes shopping for women's fashion more 0:16:09.840 --> 0:16:14.120 fun easier and smarter than anything that exists today. So 0:16:14.160 --> 0:16:17.200 the idea is it's an app that is tuned to 0:16:17.280 --> 0:16:20.160 each user. You come onto the app and you fill 0:16:20.200 --> 0:16:23.080 out a profile that's a fun Q and A, and 0:16:23.120 --> 0:16:28.080 then you see brands and themes and styles that you 0:16:28.120 --> 0:16:30.800 like in your own home feed, and everybody's home feed 0:16:30.880 --> 0:16:33.640 is different, and you can search on anything that you're 0:16:33.640 --> 0:16:36.760 looking for. You can discover new brands. We always recommend 0:16:36.840 --> 0:16:40.760 what size you should get, and it's free shipping both ways, 0:16:40.800 --> 0:16:43.280 so to buy and to return. We're going to talk 0:16:43.280 --> 0:16:44.720 a little bit more about it, but I just curious 0:16:44.720 --> 0:16:47.040 about the launch. Did you think about holding off or 0:16:47.080 --> 0:16:49.000 did you feel like this was an ideal time because 0:16:49.040 --> 0:16:51.280 there are so many people home at this point. We 0:16:51.320 --> 0:16:53.720 actually did hold off, were originally planning to lodge in 0:16:53.800 --> 0:16:58.160 late March because of COVID hitting, we needed to step 0:16:58.160 --> 0:17:01.240 back and reevaluate, and then we kind of watched what happened. 0:17:01.280 --> 0:17:05.280 But we were noticing that obviously, UM with retail closing, 0:17:05.359 --> 0:17:08.320 a lot of our brands were losing sales that they 0:17:08.320 --> 0:17:11.159 would have gotten otherwise. And we have small brands and 0:17:11.200 --> 0:17:14.400 big brands UM and their cancel their orders were being 0:17:14.440 --> 0:17:17.160 canceled UM for the fall, and so we really felt 0:17:17.200 --> 0:17:19.119 like we wanted to step in and help. And the 0:17:19.119 --> 0:17:21.440 truth is people need a little levity in their life 0:17:21.480 --> 0:17:23.200 and it's a really fun app to play with. So 0:17:23.600 --> 0:17:27.000 we did decide to make a donation for every download 0:17:27.240 --> 0:17:30.960 to Good Plus Foundation to help families in need UM 0:17:31.000 --> 0:17:33.959 but we decided that this time was as good as 0:17:34.040 --> 0:17:37.200 any given how crazy the world has become. Our guest 0:17:37.200 --> 0:17:40.400 at this hour is Julie Bornstein. She is someone who 0:17:40.440 --> 0:17:43.840 understands the retail industry. Former chief operating officer of stitch Fists, 0:17:43.960 --> 0:17:46.720 former chief digital officer. It's a flora uh, and she 0:17:46.960 --> 0:17:50.919 just launched today her e commerce startup. It's called The 0:17:51.119 --> 0:17:54.160 Yes And you know, Julie, we were just getting into 0:17:54.200 --> 0:17:57.119 it and and it's tailor made experiences and you use 0:17:57.160 --> 0:18:01.040 sophistic sophisticated algorithms. How exactly does it work on the 0:18:01.080 --> 0:18:04.440 back end? What's happened is we've built um UH, an 0:18:04.440 --> 0:18:08.399 algorithm that really understands fashion deeply. So we built a 0:18:08.560 --> 0:18:12.880 very deep taxonomy to understand every dimension of fashion, which 0:18:12.920 --> 0:18:15.479 includes all the style elements and the price and the 0:18:15.520 --> 0:18:19.080 brand and the construction UM And so we've started to 0:18:19.320 --> 0:18:22.680 understand fashion in a way that we can train data 0:18:22.720 --> 0:18:25.840 models to understand. And then we spent time learning about 0:18:25.880 --> 0:18:29.560 customers and we ended up building a tool that is 0:18:29.640 --> 0:18:32.919 ultimately kind of what Spotify is to you for music 0:18:33.000 --> 0:18:36.000 and so UM, the consumer can come on, they answer 0:18:36.040 --> 0:18:38.200 some Q and A, and then they have a home 0:18:38.240 --> 0:18:41.240 feed that is really built around them. And the more 0:18:41.320 --> 0:18:44.840 that you yes and no items in the home feed 0:18:44.880 --> 0:18:47.640 and in your search results, then you tune the app 0:18:47.720 --> 0:18:50.320 to you. So it really creates this very great and 0:18:50.520 --> 0:18:54.359 very hyper personal experience. UM. And of course we need 0:18:54.400 --> 0:18:56.199 a very large assortment of brand so we have over 0:18:56.240 --> 0:18:58.680 a hundred and fifty of the best fashion brands, from 0:18:58.920 --> 0:19:01.359 very high end to jim Me to and Ralph Lauren 0:19:01.720 --> 0:19:05.080 to kind of great everyday brands like Levis and made Well, 0:19:05.440 --> 0:19:07.520 so you can shop high and low or however you like. 0:19:07.800 --> 0:19:09.800 So what's the biggest lesson? I mean, what what do 0:19:09.840 --> 0:19:12.479 you take from all of that experience that that Carol 0:19:12.680 --> 0:19:16.040 laid out about sort of the shopper and and especially 0:19:16.040 --> 0:19:21.760 synthesizing in uh, Julie, sort of what's going on now 0:19:21.840 --> 0:19:24.840 with our behavior and our sort of whole world's being 0:19:25.000 --> 0:19:28.320 upside down? How do you pun intended sort of stitch 0:19:28.400 --> 0:19:32.479 all that together, um into something new. It's a great question. 0:19:32.720 --> 0:19:34.879 This is something we've been working on for two years, 0:19:34.960 --> 0:19:38.520 primarily because, as we've all seen, as e commerce grows, 0:19:38.640 --> 0:19:42.520 the more product that's sold online, the more websites there are, 0:19:42.560 --> 0:19:46.000 the more overwhelming shopping because and I think now in 0:19:46.320 --> 0:19:48.399 you know, this moment in time when we can't go 0:19:48.480 --> 0:19:52.320 to stores yet, um, we are more reliant on shopping 0:19:52.320 --> 0:19:55.320 online than ever, and the experience for most users is 0:19:55.400 --> 0:19:59.840 very overwhelming, especially in a category like fashion that's so nuan. 0:20:00.080 --> 0:20:02.960 Then there's so many options, and so really our goal 0:20:03.119 --> 0:20:05.720 was how do we help each user kind of cut 0:20:05.760 --> 0:20:09.400 through the clutter and surface the relevant product for them, 0:20:09.400 --> 0:20:12.040 whether it's things they know and love, or it's new 0:20:12.080 --> 0:20:14.280 brands they may never have heard of. And that's Julie 0:20:14.280 --> 0:20:17.280 Born seen from the Yes. My only disappointment Carol is 0:20:17.320 --> 0:20:19.960 that they're only selling women's clothes right now. As we 0:20:20.160 --> 0:20:22.399 jatted with her about joked with her about like I 0:20:22.480 --> 0:20:25.160 need a new place to buy my T shirts and jeans. Yeah, 0:20:25.200 --> 0:20:27.480 exactly what I thought was great about this conversation. There 0:20:27.520 --> 0:20:29.920 was a lot of retail news this week. Overall, we 0:20:30.080 --> 0:20:34.040 heard from the retailers across the nation. What she said, Ultimately, 0:20:34.240 --> 0:20:36.600 she doesn't think brick and mortar is going to go away, 0:20:36.680 --> 0:20:39.000 but some stores will not make it. But she thinks 0:20:39.119 --> 0:20:41.920 ultimately e commerce is going to get better as a 0:20:41.960 --> 0:20:45.680 result of the virus. Well, and this whole notion that 0:20:45.920 --> 0:20:48.639 one of the things we love about going shopping is 0:20:48.680 --> 0:20:51.800 that sort of serendipity, that discover ability and if you 0:20:51.840 --> 0:20:55.800 can figure out from an artificial intelligence perspective, essentially how 0:20:55.840 --> 0:20:58.560 to teach a machine to surprise you, I feel like 0:20:58.600 --> 0:21:00.840 that's kind of cool. It is cool. You're listening to 0:21:00.880 --> 0:21:02.960 Bloomberg Business Week. Coming up, we catch up with the 0:21:03.000 --> 0:21:06.240 president and CEO Porsche Cars North America. Class Selmore back 0:21:06.280 --> 0:21:08.879 with us. He reminded us Jason of our time with 0:21:08.960 --> 0:21:12.040 him last fall. Remember when he brought porches first fully 0:21:12.080 --> 0:21:15.639 electric sports car to our offices, the Takon Man. That 0:21:15.720 --> 0:21:18.639 seems like a decade ago, it really does. It's a 0:21:18.640 --> 0:21:21.879 cool car and they're actually selling out of them. This 0:21:21.920 --> 0:21:28.760 is Bloomberg. This is Bloomberg Business Week with Carol Masser 0:21:28.840 --> 0:21:32.560 and Jason Kelly from Bloomberg Radio. Well, today we'll bring 0:21:32.600 --> 0:21:35.960 you some of our favorite conversations from our Bloomberg Business 0:21:35.960 --> 0:21:40.000 Week daily radio show from this week real time news 0:21:40.080 --> 0:21:44.680 obviously Carol and the theme certainly is reopening. It is reopening, 0:21:44.720 --> 0:21:47.479 and with that in mind, we caught up with Klaus Selmore, 0:21:47.520 --> 0:21:50.000 the presidency of Porsche Cars North America. He liked most 0:21:50.040 --> 0:21:52.680 of us and his team. It is his tenth week 0:21:52.760 --> 0:21:55.280 from working from home and yet most of their dealers 0:21:55.440 --> 0:21:58.399 are back in March. Beginning of March we had a 0:21:58.400 --> 0:22:01.320 big event of Media Island, which classic cars and lots 0:22:01.320 --> 0:22:04.480 of fun, and then there's crisis hit us. So I'm 0:22:04.480 --> 0:22:07.560 personally now in my tenth week working from home, with 0:22:08.400 --> 0:22:11.480 the whole of port Car's North America basically working from home. 0:22:12.280 --> 0:22:15.160 The good thing is that our dealers are now back 0:22:15.280 --> 0:22:19.120