WEBVTT - Bloomberg Businessweek Weekend - October 4th, 2024

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<v Speaker 1>This is Bloomberg business Week Inside from the reporters and

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<v Speaker 1>editors who bring you America's most trusted business magazine, plus

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<v Speaker 1>global business, finance and tech news. The Bloomberg Business Week

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<v Speaker 1>Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

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<v Speaker 2>Hi, everyone, Welcome to the Bloomberg Business Week Weekend Podcast.

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<v Speaker 2>Well lots of big news this week. The conflict in

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<v Speaker 2>the Middle East entered a dangerous new phase. Jd Vance

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<v Speaker 2>and Tim Walls squared off in what is likely the

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<v Speaker 2>final debate of the twenty twenty four campaign. Dock workers

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<v Speaker 2>along the US East and Gulf coasts went on strike

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<v Speaker 2>for the first time since nineteen seventy seven, as the

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<v Speaker 2>union took a hardline stance against automation found at other

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<v Speaker 2>ports around the world.

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<v Speaker 3>All topped off with the September jobs report on Friday

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<v Speaker 3>that followed comments earlier in the week by fed share

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<v Speaker 3>Jay Powell about a solid labor market but noting that

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<v Speaker 3>conditions have quote clearly cooled over.

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<v Speaker 4>The past year.

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<v Speaker 3>Check out the latest on everything from the economy, to

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<v Speaker 3>the presidential campaigns to geopolitics on the Bloomberg Terminal or

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<v Speaker 3>at Bloomberg dot Com.

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<v Speaker 2>This hour we tackled geopolitics and the US political divide

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<v Speaker 2>thanks to two new books. One gets into the psychological

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<v Speaker 2>roots of tribalism and how the things that keep us

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<v Speaker 2>apart can actually bring us closer together. The other book,

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<v Speaker 2>Timely Considering the escalating tensions of the Middle East, takes

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<v Speaker 2>us back to nineteen twenty nine and Ghosts of a

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<v Speaker 2>Holy War.

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<v Speaker 3>Plus this week we got our own read on the

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<v Speaker 3>consumer when we caught up with Josh Weinstein, the CEO

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<v Speaker 3>of Carnival. All of that to come, we begin with

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<v Speaker 3>the escalating conflict in the Middle East. This coming week

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<v Speaker 3>marks the one year anniversary of Hamas's attack on Israel.

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<v Speaker 2>Much has happened, including this past week Iran's ballistic missile

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<v Speaker 2>attack on Israel. As we recorded this, the world was

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<v Speaker 2>awaiting a possible Israeli response against Iran. One conversation we

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<v Speaker 2>had on the conflict took us back to nineteen twenty

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<v Speaker 2>nine and came courtesy of your Denna Schwartz, an Award

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<v Speaker 2>winning journalist and Emmy nominated producer her new book, Ghosts

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<v Speaker 2>of a Holy War. Teen twenty nine massacre in Palestine

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<v Speaker 2>that ignited the Arab Israeli conflict.

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<v Speaker 5>The events we're seeing today in which there is already

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<v Speaker 5>this broader war against Israel by Iran and its proxies

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<v Speaker 5>in the region, really shows us that this is not

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<v Speaker 5>a conflict about land as it has been treated for decades.

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<v Speaker 5>This is a holy war, as I argue in my book,

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<v Speaker 5>and it needs to be looked at as such. And

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<v Speaker 5>we see that very clearly now in which this war

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<v Speaker 5>is not just between Israelis and Palestinians, it is between

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<v Speaker 5>Iran and its proxies in Yemen, Lebanon, Syria, Iraq. For

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<v Speaker 5>the last year, this didn't just start as you said,

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<v Speaker 5>you know, yesterday or last week. It's been going on

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<v Speaker 5>one century ago with a massacre and what was then

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<v Speaker 5>British mandate Palestine.

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<v Speaker 2>Well take us back to nineteen twenty nine, because it

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<v Speaker 2>does feel like we need to understand the history, and

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<v Speaker 2>I feel like we continue to be kind of on

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<v Speaker 2>a history life, and for those of us not either

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<v Speaker 2>from the region, born in the region, lived in the region,

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<v Speaker 2>or have some personal impact from it, you know, we're

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<v Speaker 2>constantly kind of studying to understand the complicated nature. Somebody

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<v Speaker 2>said very simplistically to me, well, it's kind of like

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<v Speaker 2>gang wars to some extent because you have so many

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<v Speaker 2>different groups. How do you see it and how does

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<v Speaker 2>going back to nineteen twenty nine take us back there

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<v Speaker 2>in terms of what happened.

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<v Speaker 5>Yeah, so, so many people begin their conversations around the

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<v Speaker 5>origins of this war with years like nineteen sixty seven

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<v Speaker 5>or nineteen forty eight, but this conflict began long before that,

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<v Speaker 5>actually two decades before.

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<v Speaker 6>We see the emerging.

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<v Speaker 5>Of the driving forces behind this conflict today, and those

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<v Speaker 5>forces our religion, as I said before, but also disinformation,

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<v Speaker 5>and it was a campaign of disinformation that led to

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<v Speaker 5>this horrific massacre of one of the world's most ancient

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<v Speaker 5>Jewish communities in Hebron in what was then British and

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<v Speaker 5>Date Palestine in nineteen twenty nine. And my book Elucidates

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<v Speaker 5>and Gripping detail the parallels between that massacre one century

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<v Speaker 5>ago and the massacre of October seventh.

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<v Speaker 3>Why do you think so many modern conversations about the

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<v Speaker 3>history of the region, at least the modern history, start

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<v Speaker 3>in nineteen forty eight and don't go back to nineteen

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<v Speaker 3>twenty nine.

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<v Speaker 5>Yeah, that's an excellent question, And I think it comes

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<v Speaker 5>down to people not really being able to wrap their

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<v Speaker 5>heads around what is really complicated and a conflict that

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<v Speaker 5>has such a long history, and so they try to

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<v Speaker 5>look at it in the simplest way possible.

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<v Speaker 6>And it makes sense then to begin.

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<v Speaker 5>That story in nineteen forty eight, But that's like beginning

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<v Speaker 5>a story in the middle, because you see the emergence

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<v Speaker 5>of what has become a very prominent lie that is

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<v Speaker 5>told around alak samosque it is the third holiest site

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<v Speaker 5>in Islam, and it sits upon the ruins of the

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<v Speaker 5>ancient Jewish temples in Jerusalem, and that the temple is

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<v Speaker 5>the holiest site in Judaism, and that kind of tells

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<v Speaker 5>you why religion plays such a big role in this conflict.

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<v Speaker 5>But the rumor that is still told by Muslim leaders

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<v Speaker 5>today is that the Jews of what was then Palestine

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<v Speaker 5>were planning to conquer Al Alczamosk. That was the lie

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<v Speaker 5>that led to the massacre of nineteen twenty nine, and

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<v Speaker 5>that lie continues to be told today by groups like

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<v Speaker 5>Hamas the Iitola of Iran Hezbadah. And you can just

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<v Speaker 5>look at the name that Hamas gave to its operation

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<v Speaker 5>on October seventh. It was called Alaksa flood because this

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<v Speaker 5>lie about the Jews of Palestine in nineteen twenty nine

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<v Speaker 5>or today Israel. This lie that they're trying to conquer

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<v Speaker 5>all Okzamosk to rebuild the ancient Jewish Temple is such

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<v Speaker 5>a powerful force, a galvanizing force in the region, and

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<v Speaker 5>corrupt leaders like the leader of Palestinian Muslims under British

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<v Speaker 5>rule in nineteen twenty nine, have managed to distract criticism

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<v Speaker 5>of corruption, nepotism, misappropriation of funds. For the last century.

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<v Speaker 5>They've been able to distract their people from their own

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<v Speaker 5>failures by holding on to this lie that is so powerful.

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<v Speaker 3>Yodana, I know the book focuses on nineteen twenty nine,

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<v Speaker 3>but I want to go back even earlier than that

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<v Speaker 3>and sort of understand how the seeds for this were planted,

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<v Speaker 3>maybe even during the British occupation of the area earlier

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<v Speaker 3>in the century.

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<v Speaker 5>Yeah, so we're talking about British Mandate Palestine. This was

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<v Speaker 5>a mandate given to the British Empire to rule over

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<v Speaker 5>what it had just conquered from the Ottoman Empire, which

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<v Speaker 5>had ruled that territory for more than four hundred years,

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<v Speaker 5>and before the Ottoman Empire conquered the region. It was

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<v Speaker 5>a province of a rotating cast of foreign powers, going

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<v Speaker 5>back to the Romans, the Greeks, the Crusaders. It was

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<v Speaker 5>actually the Romans who gave Palestine its name. It had

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<v Speaker 5>been known as the Kingdom of Israel and the Kingdom

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<v Speaker 5>of Judea, and when the Jews of Judea carried out

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<v Speaker 5>a rebellion against the Romans, they punished them by renaming

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<v Speaker 5>the land after the Israelites' ancient enemies, the Philistines.

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<v Speaker 2>Well, and I guess that's what I'm wondering is you know,

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<v Speaker 2>you go back to, as we said, the early nineteen

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<v Speaker 2>hundreds and the role of colonialism the UK specifically, you know,

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<v Speaker 2>in establishing a national home for the Jewish people in Palestine,

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<v Speaker 2>which was against the wishes of the indigenous Arab population.

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<v Speaker 2>You do also wonder how that kind of set the

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<v Speaker 2>stage in addition to what you were talking about, which

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<v Speaker 2>led to the Hebron massacre, that there was more going

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<v Speaker 2>on that made for a very volatile environment between these

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<v Speaker 2>two populations.

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<v Speaker 5>Absolutely, Yeah, the conflict didn't just begin out of nowhere

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<v Speaker 5>in nineteen two twenty nine. Of course, the tensions between

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<v Speaker 5>Palestine's Jewish minority and its Arab majority had been simmering

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<v Speaker 5>for years and had already claimed dozens of lives by

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<v Speaker 5>nineteen twenty nine, but the massacre in Hebron and the

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<v Speaker 5>riots that engulfed Palestine that week in August of nineteen

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<v Speaker 5>twenty nine really became the first mass casualty event of

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<v Speaker 5>this conflict and kind of set the formula for every

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<v Speaker 5>eruption of violence that we have seen since.

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<v Speaker 3>You lived in Israel for more than a decade, and

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<v Speaker 3>as we've been speaking with our reporters on the ground there,

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<v Speaker 3>they've shared with us this feeling that people in Israel

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<v Speaker 3>right now do feel like that the conflict they are

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<v Speaker 3>fighting is one that is indeed existential. And I'm wondering

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<v Speaker 3>if you think, given what's going on there today, the

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<v Speaker 3>actual existence of Israel in the future is threatened.

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<v Speaker 5>Absolutely understanding that really helps to explain the actions Israel

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<v Speaker 5>has taken since October seventh. You know, there's talk of disproportionality,

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<v Speaker 5>and we heard this from Biden today, but I think

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<v Speaker 5>if you are in Israel and you see your country

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<v Speaker 5>being attacked from seven fronts, and you see a world

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<v Speaker 5>that doesn't really understand that the only reason we're not

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<v Speaker 5>seeing mass casualties yesterday and today as a result of

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<v Speaker 5>Iran's ballistic missile attack is a result of Israel's defense systems.

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<v Speaker 5>I mean, you don't just have the Iron Dome intercepting

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<v Speaker 5>some of those rockets, but you also are many of

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<v Speaker 5>those rockets, I should say, but you also have the

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<v Speaker 5>government investing in bomb shelters for israelis something that I wish,

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<v Speaker 5>you know, other countries would do. If imagine if Gozans

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<v Speaker 5>had bomb shelters or Lebanese civilians had bomb shelters that

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<v Speaker 5>could protect them from the terror groups that are embedding

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<v Speaker 5>themselves within civilian populations. And you know, Israel really is

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<v Speaker 5>fighting a war not just against the Palestinians, it's against Hamas,

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<v Speaker 5>but it's also against Hesbalah. And you know, like I

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<v Speaker 5>said earlier, we really should be looking at the names

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<v Speaker 5>of these organizations because they tell us everything. I mean,

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<v Speaker 5>Hezbalah's name means the.

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<v Speaker 6>Party of God.

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<v Speaker 5>Hamas's name is the Islamic Resistance Movement in English. You know,

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<v Speaker 5>so much of what these organizations say themselves we're not

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<v Speaker 5>hearing in the West. And what they're saying is they

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<v Speaker 5>desire to destroy the state of Israel and Israel israelis

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<v Speaker 5>hear that, but I think a lot of us here

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<v Speaker 5>don't understand that.

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<v Speaker 2>So in your thinking about the region and the way forward,

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<v Speaker 2>we assume we fingers cross that we get to a

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<v Speaker 2>better place at some point. Although it's hard to see

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<v Speaker 2>right now, does a two states solution in some ways

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<v Speaker 2>help the situation, specifically in Israel and with the Palestinians.

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<v Speaker 5>So I do believe that a two state solution is

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<v Speaker 5>the only solution to this conflict. And just going back

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<v Speaker 5>to the history here, I began writing this book nearly

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<v Speaker 5>six years ago. You know, I didn't just pick up

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<v Speaker 5>and start writing this after October seventh. I was writing

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<v Speaker 5>about this massacre well before October seventh. The reason I

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<v Speaker 5>did was because there was this family in Memphis, Tennessee

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<v Speaker 5>that I was introduced to that had found this box

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<v Speaker 5>of letters in their attic, containing hundreds of pages of

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<v Speaker 5>letters from their late uncle who was murdered in the

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<v Speaker 5>massacre in nineteen twenty nine, and his letters painted this

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<v Speaker 5>beautiful portrait of peaceful coexistence in Hebron that preceded the massacre.

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<v Speaker 5>And what really captured me and reading these letters was

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<v Speaker 5>that I had never known, and many people didn't know

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<v Speaker 5>or don't know that Hebron was once a beacon of

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<v Speaker 5>coexistence in Palestine, and today, if you're familiar with Hebron,

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<v Speaker 5>it is the antithesis of peaceful co existence. And I

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<v Speaker 5>think understanding how that happened really can tell us how

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<v Speaker 5>we can find a way out and work towards peace,

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<v Speaker 5>because really, if you look the last century, a two

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<v Speaker 5>state solution has been on the table since at least

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<v Speaker 5>nineteen thirty seven. Right and Palasan leaders have rejected every

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<v Speaker 5>single two state solution since then. I mean, Palestine could

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<v Speaker 5>have been independent and free for the first time in

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<v Speaker 5>history in nineteen forty seven had Palestinian leaders and Arab

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<v Speaker 5>leaders accepted that solution, and instead they declared war on

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<v Speaker 5>the unborn Jewish state.

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<v Speaker 2>And in the meantime, many innocent lives have been lost

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<v Speaker 2>and continue to do. So You're Donna, thank you so much.

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<v Speaker 2>Appreciate getting some time with you, your Danish Schwartz, journalist and author.

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<v Speaker 2>New book is Ghosts of a Holy War, the nineteen

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<v Speaker 2>twenty nine massacre in Palestine that ignited the Arab Israeli conflict.

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<v Speaker 2>So we appreciate getting some time with her.

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<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

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<v Speaker 3>Okay, Carol, you know I was out in Colorado. I

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<v Speaker 3>was biking last month with my dad. I went all

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<v Speaker 3>over the state. I saw in some situations neighbors dueling

0:13:17.200 --> 0:13:20.280
<v Speaker 3>with each other when it came to political signs across

0:13:20.280 --> 0:13:23.000
<v Speaker 3>the street, next door, neighbors literally calling each other out,

0:13:23.040 --> 0:13:25.199
<v Speaker 3>depending on where I was A few times. It was

0:13:25.280 --> 0:13:27.280
<v Speaker 3>kind of funny out there, but it reminded me of

0:13:27.320 --> 0:13:30.359
<v Speaker 3>the deep divide that we see in the American political landscape.

0:13:30.800 --> 0:13:32.320
<v Speaker 3>Not that I need to be reminded of it, because

0:13:32.320 --> 0:13:34.720
<v Speaker 3>out there in the media, it's there each and every day.

0:13:35.120 --> 0:13:37.400
<v Speaker 3>It's not just our imaginations though. A report from the

0:13:37.400 --> 0:13:41.040
<v Speaker 3>Pew Research Center this summer said, quote, Republicans and Democrats

0:13:41.400 --> 0:13:45.400
<v Speaker 3>are more divided along ideological lines, and partisan antipathy is

0:13:45.440 --> 0:13:47.840
<v Speaker 3>deeper and more extensive than at any point in the

0:13:47.920 --> 0:13:48.959
<v Speaker 3>last two decades.

0:13:49.040 --> 0:13:51.000
<v Speaker 2>Well, we feel it, right. We talk about it constantly.

0:13:51.040 --> 0:13:54.360
<v Speaker 2>This division that we're seeing, whether it's across party lines

0:13:54.559 --> 0:13:55.439
<v Speaker 2>or elsewhere.

0:13:55.520 --> 0:13:58.920
<v Speaker 3>Oftentimes folks out there use division and the word tribes

0:13:58.960 --> 0:14:01.320
<v Speaker 3>to sort of describe the It's often looked at in

0:14:01.360 --> 0:14:04.040
<v Speaker 3>a pejorative way, just another thing that kind of pushes

0:14:04.120 --> 0:14:06.960
<v Speaker 3>us apart, and it makes us separate from one another. Yet,

0:14:07.000 --> 0:14:10.720
<v Speaker 3>Michael Morris argues in a new book that perhaps rather paradoxically,

0:14:11.040 --> 0:14:13.960
<v Speaker 3>what keeps us apart can actually bring us closer together.

0:14:14.280 --> 0:14:15.479
<v Speaker 2>Kind of love that idea.

0:14:15.559 --> 0:14:18.720
<v Speaker 3>Michael Morris is Professor of Leadership at Columbia Business School.

0:14:18.760 --> 0:14:21.360
<v Speaker 3>His new book is out Tribal How the cultural instincts

0:14:21.360 --> 0:14:23.040
<v Speaker 3>that divide us can help bring us together.

0:14:23.200 --> 0:14:24.480
<v Speaker 4>He joins us from New York.

0:14:24.560 --> 0:14:26.280
<v Speaker 2>Michael, so great to have you here with us, so

0:14:26.440 --> 0:14:29.560
<v Speaker 2>relevant in terms of here we are in an election year.

0:14:29.680 --> 0:14:32.000
<v Speaker 2>So talk to us a little bit about, first of all,

0:14:32.320 --> 0:14:36.240
<v Speaker 2>just kind of general concept of what divides us can

0:14:36.240 --> 0:14:38.680
<v Speaker 2>bring us together. Why did you think we needed you

0:14:38.760 --> 0:14:40.920
<v Speaker 2>needed to write this book and bring it bring it

0:14:40.920 --> 0:14:41.400
<v Speaker 2>to people.

0:14:41.680 --> 0:14:44.000
<v Speaker 7>Well, thank you for having me. This is a book

0:14:44.000 --> 0:14:47.080
<v Speaker 7>that I've been working on for almost ten years. I'm

0:14:47.120 --> 0:14:50.600
<v Speaker 7>a behavioral scientist, you know, a research psychologist, and my

0:14:51.040 --> 0:14:54.960
<v Speaker 7>specialty is cultural psychology, which is the study of the

0:14:54.960 --> 0:14:58.680
<v Speaker 7>cultural frames in our heads that guide our thinking, guide

0:14:58.680 --> 0:15:02.160
<v Speaker 7>our actions and decisions, and what activates them and how

0:15:02.200 --> 0:15:06.920
<v Speaker 7>they change. And I've been teaching at top business schools

0:15:06.960 --> 0:15:10.760
<v Speaker 7>for decades at Columbia Business School, formerly at Stanford Business School,

0:15:11.520 --> 0:15:14.960
<v Speaker 7>So I've developed a toolkit for thinking about how to

0:15:15.520 --> 0:15:20.880
<v Speaker 7>use the cultural forces that shape people's thinking to create

0:15:21.040 --> 0:15:24.880
<v Speaker 7>unity in a group, or to create change in a

0:15:25.040 --> 0:15:28.680
<v Speaker 7>society or in an organization. And that's the reason that

0:15:28.760 --> 0:15:31.280
<v Speaker 7>I started writing this book sort of to create a

0:15:31.280 --> 0:15:38.320
<v Speaker 7>playbook for activists, leaders, managers, high school teachers, coaches, anybody

0:15:38.640 --> 0:15:45.120
<v Speaker 7>who has to orchestrate a group into a productive direction.

0:15:45.320 --> 0:15:47.320
<v Speaker 2>Well, and what's interesting is you hear the word tribe

0:15:47.360 --> 0:15:49.680
<v Speaker 2>or tribalism, and you might get a little i don't know,

0:15:50.560 --> 0:15:52.800
<v Speaker 2>maybe put off a little bit or think one way.

0:15:53.120 --> 0:15:55.960
<v Speaker 2>But you say, when we think of tribes, it's countries,

0:15:56.000 --> 0:15:59.160
<v Speaker 2>it's churches, it's political parties, it's companies, it could be families, right,

0:16:00.440 --> 0:16:02.320
<v Speaker 2>groups that we deal with all the time.

0:16:02.600 --> 0:16:06.800
<v Speaker 7>Yeah, tribes, you know, from a from an evolutionary standpoint

0:16:06.960 --> 0:16:10.640
<v Speaker 7>or from a you know, classic anthropology standpoint, it just

0:16:10.720 --> 0:16:16.080
<v Speaker 7>refers to the distinctively human form of social organization, which

0:16:16.120 --> 0:16:20.680
<v Speaker 7>is large communities that are united by shared culture as

0:16:20.680 --> 0:16:24.640
<v Speaker 7>opposed to being united by blood relations or being united

0:16:24.720 --> 0:16:29.000
<v Speaker 7>by you know, diadic bonds between people. And that's you know,

0:16:29.040 --> 0:16:32.120
<v Speaker 7>that's how we differ from other primates. We can you

0:16:32.160 --> 0:16:35.120
<v Speaker 7>could never have a Chimpanzee Manhattan. You know, once, once

0:16:35.160 --> 0:16:38.080
<v Speaker 7>they get more than fifty individuals in a group, it

0:16:38.120 --> 0:16:41.520
<v Speaker 7>starts to break apart because they depend on either being

0:16:41.520 --> 0:16:46.200
<v Speaker 7>related or having a direct personal bond of trust. We

0:16:46.240 --> 0:16:49.680
<v Speaker 7>can trust total strangers because we share culture with them,

0:16:49.760 --> 0:16:52.560
<v Speaker 7>so we can we can understand them, and we can

0:16:52.600 --> 0:16:55.240
<v Speaker 7>predict their movements, and we can predict what they will do,

0:16:55.320 --> 0:16:59.080
<v Speaker 7>so we can trust them. So, yeah, tribalism is mostly

0:16:59.120 --> 0:17:01.480
<v Speaker 7>a good thing. It's made us human. It's what got

0:17:01.520 --> 0:17:04.399
<v Speaker 7>us where we are now. I think what's really interesting is,

0:17:04.520 --> 0:17:07.639
<v Speaker 7>you know, over the past ten years while I've been

0:17:07.680 --> 0:17:10.879
<v Speaker 7>writing this book, there's been kind of a trope of

0:17:11.280 --> 0:17:15.119
<v Speaker 7>toxic tribalism that has emerged among the pundit class and

0:17:15.160 --> 0:17:18.480
<v Speaker 7>has been picked up by politicians and business leaders. And

0:17:18.520 --> 0:17:23.000
<v Speaker 7>the idea is that somehow, a deeply evolved drive to

0:17:23.840 --> 0:17:28.800
<v Speaker 7>hate each other has somehow reawakened, and now we're screwed

0:17:28.960 --> 0:17:31.480
<v Speaker 7>because we don't talk to each other anymore, and there's

0:17:31.480 --> 0:17:33.680
<v Speaker 7>no way to get the genie back into the bottle anymore.

0:17:34.240 --> 0:17:37.920
<v Speaker 7>And this makes for colorful articles, and maybe it makes

0:17:37.960 --> 0:17:42.360
<v Speaker 7>for you know, riveting speeches, but it's a kind of despairing,

0:17:42.600 --> 0:17:46.040
<v Speaker 7>fatalistic take on the conflicts of our time. I don't

0:17:46.080 --> 0:17:48.640
<v Speaker 7>think it's a helpful way to think, and I don't

0:17:48.640 --> 0:17:51.439
<v Speaker 7>think it's an accurate way to think. It's not a

0:17:51.480 --> 0:17:56.159
<v Speaker 7>way of talking about tribal instincts that any evolutionary scholar

0:17:56.400 --> 0:17:59.760
<v Speaker 7>or any behavioral scientists would recognize. So I think we've

0:18:00.119 --> 0:18:04.000
<v Speaker 7>kind of talked ourselves into this take on tribalism that's

0:18:04.040 --> 0:18:06.720
<v Speaker 7>not scientifically founded and not helpful.

0:18:07.040 --> 0:18:10.400
<v Speaker 3>Well, Professor Morris, would you dispute the idea that we're

0:18:10.440 --> 0:18:13.440
<v Speaker 3>more divided now, like the Pew research says, than we

0:18:13.480 --> 0:18:16.159
<v Speaker 3>are at least politically, and then we have been in

0:18:16.480 --> 0:18:19.320
<v Speaker 3>previous decades for the last twenty years. Does that seem

0:18:19.440 --> 0:18:21.080
<v Speaker 3>not necessarily accurate to you?

0:18:21.080 --> 0:18:24.440
<v Speaker 7>You know, perhaps in the last twenty years, but certainly

0:18:24.480 --> 0:18:26.800
<v Speaker 7>not the claim that I hear more often, which is

0:18:26.840 --> 0:18:31.120
<v Speaker 7>that the American people have never been this divided. You know,

0:18:30.800 --> 0:18:35.320
<v Speaker 7>if you read history in eighteen sixty Abraham Lincoln became president.

0:18:35.480 --> 0:18:37.880
<v Speaker 7>He had less than forty percent of the popular vote.

0:18:38.320 --> 0:18:41.639
<v Speaker 7>Seven states seceded before he was even inaugurated. The Civil

0:18:41.720 --> 0:18:45.080
<v Speaker 7>War breaks out. A few weeks afterwards, four more states secede.

0:18:45.280 --> 0:18:51.400
<v Speaker 7>Now that's that's a crisis. That's that's a legitimacy crisis

0:18:51.440 --> 0:18:55.200
<v Speaker 7>for a president, and that's a big rift to heal.

0:18:55.720 --> 0:18:58.280
<v Speaker 7>But Lincoln was one of the leaders, and there are

0:18:58.320 --> 0:19:02.800
<v Speaker 7>many throughout history and business leaders who they had faith

0:19:03.000 --> 0:19:08.080
<v Speaker 7>that the best way to heal a divide was tribal memory.

0:19:08.160 --> 0:19:11.240
<v Speaker 7>It was it was appealing to our common ancestors, appealing

0:19:11.280 --> 0:19:14.680
<v Speaker 7>to our common past. You know, Lincoln had that famous,

0:19:15.000 --> 0:19:19.680
<v Speaker 7>mysterious line in his first inauguration that the the mystic

0:19:19.800 --> 0:19:23.600
<v Speaker 7>chords of memory shall yet swell the chorus of the Union.

0:19:24.119 --> 0:19:26.879
<v Speaker 7>You know what was he talking about. Well, he thought

0:19:26.880 --> 0:19:30.040
<v Speaker 7>of himself as a storyteller in chief, and he made

0:19:30.080 --> 0:19:34.240
<v Speaker 7>all of these wonderful speeches like the Gettysburg Address that

0:19:34.520 --> 0:19:37.639
<v Speaker 7>you know, made reference to the sacrifices of our common

0:19:37.640 --> 0:19:41.359
<v Speaker 7>ancestors and the common ideals that you know. You know,

0:19:41.480 --> 0:19:43.919
<v Speaker 7>even people in the South were moved by that speech.

0:19:45.920 --> 0:19:49.200
<v Speaker 7>One holiday we have coming up as Thanksgiving and We

0:19:49.400 --> 0:19:53.560
<v Speaker 7>often associate Thanksgiving with the Pilgrims, but it was really

0:19:53.600 --> 0:19:58.600
<v Speaker 7>Abraham Lincoln who started Thanksgiving as a national holiday. And

0:19:58.680 --> 0:20:01.080
<v Speaker 7>he did it because he thought that we need we

0:20:01.160 --> 0:20:08.560
<v Speaker 7>needed a national ritual of gratitude and memory. Uh and

0:20:08.600 --> 0:20:13.760
<v Speaker 7>that and that, more than anything else, could bring people together. So,

0:20:14.000 --> 0:20:18.080
<v Speaker 7>you know, we may think of nostalgia and sentimentality about

0:20:18.080 --> 0:20:21.240
<v Speaker 7>the past as a you know, as a silly, irrational

0:20:21.320 --> 0:20:24.639
<v Speaker 7>way of thinking, but it's it's a deep part of

0:20:24.680 --> 0:20:28.840
<v Speaker 7>our tribal wiring and one that can be used for inclusiveness,

0:20:28.880 --> 0:20:32.240
<v Speaker 7>not not just for divisiveness. You know, we see, you know,

0:20:32.280 --> 0:20:36.720
<v Speaker 7>we see a brand of populist politics nowadays where the

0:20:36.800 --> 0:20:39.480
<v Speaker 7>story is, you know, things used to be great, but

0:20:39.600 --> 0:20:42.280
<v Speaker 7>now we have all these immigrants and things are are

0:20:42.359 --> 0:20:47.600
<v Speaker 7>going to hell. Well that's that's a divisive form of populism.

0:20:47.640 --> 0:20:52.000
<v Speaker 7>But there have been many leaders who practiced inclusive forms

0:20:52.000 --> 0:20:56.040
<v Speaker 7>of populism. And I think we need to understand tribalism

0:20:56.480 --> 0:20:58.520
<v Speaker 7>and understand all the ways that we can use it

0:20:58.800 --> 0:21:01.400
<v Speaker 7>At a time like this.

0:21:00.440 --> 0:21:02.480
<v Speaker 2>This is fascinating, I guess I want to ask you

0:21:02.560 --> 0:21:05.280
<v Speaker 2>about what's going on in our culture where so many

0:21:06.080 --> 0:21:10.160
<v Speaker 2>younger white men are pretty angry and feel left behind.

0:21:11.000 --> 0:21:15.040
<v Speaker 7>What's happened, Well, they used to have a not automatic,

0:21:15.359 --> 0:21:19.840
<v Speaker 7>but a relatively easy path to success in social standing

0:21:19.960 --> 0:21:23.760
<v Speaker 7>because they were from the favored group, the group that

0:21:23.840 --> 0:21:26.720
<v Speaker 7>was sort of the prototype of who should have positions

0:21:26.720 --> 0:21:31.439
<v Speaker 7>of power and responsibility and affluence, and that is declining.

0:21:31.520 --> 0:21:36.440
<v Speaker 7>It's certainly not over, but it's diminishing, and so they

0:21:36.480 --> 0:21:39.359
<v Speaker 7>feel like people are cutting ahead in line, you know,

0:21:39.359 --> 0:21:42.600
<v Speaker 7>people are taking the places that should be theirs. And

0:21:43.520 --> 0:21:46.320
<v Speaker 7>you know, it's not completely new. I mean, there's been

0:21:46.359 --> 0:21:50.720
<v Speaker 7>resentments about affirmative action for decades, but I think now

0:21:51.560 --> 0:21:56.200
<v Speaker 7>it's not just affirmative action. It's that we've had waves

0:21:56.200 --> 0:21:59.760
<v Speaker 7>of very talented immigrants coming into the country, you know,

0:21:59.800 --> 0:22:03.800
<v Speaker 7>for the past twenty years, and that means that a

0:22:03.840 --> 0:22:08.680
<v Speaker 7>lot of our you know, native born, white male good

0:22:08.720 --> 0:22:12.320
<v Speaker 7>old boys are not you know, are not getting those promotions.

0:22:12.359 --> 0:22:17.119
<v Speaker 7>You know, it's it's it's Russians and you know, Brazilians

0:22:17.240 --> 0:22:20.960
<v Speaker 7>and you know, Nigerians who are getting those promotions, and

0:22:21.920 --> 0:22:25.399
<v Speaker 7>not necessarily because of any DEEI policies, just because we

0:22:25.520 --> 0:22:28.320
<v Speaker 7>have so many talented people from all around the world

0:22:28.359 --> 0:22:29.160
<v Speaker 7>who've arrived.

0:22:29.240 --> 0:22:31.680
<v Speaker 3>Have you seen anecdotally. Have you seen anecdotally that show

0:22:31.760 --> 0:22:33.600
<v Speaker 3>up in your business school classes in the decades that

0:22:33.640 --> 0:22:35.440
<v Speaker 3>you've been teaching, Have they become more diverse?

0:22:36.000 --> 0:22:36.560
<v Speaker 8>Very much so.

0:22:37.000 --> 0:22:43.480
<v Speaker 7>The MBA population has changed dramatically. I had a class

0:22:43.840 --> 0:22:48.000
<v Speaker 7>last spring, a class of fifty people, and I had

0:22:48.160 --> 0:22:51.800
<v Speaker 7>seven Nigerian students. You know, some of them Nigerian Americans,

0:22:52.040 --> 0:22:55.000
<v Speaker 7>but they were all you know, students who were Nigerian,

0:22:55.119 --> 0:22:57.199
<v Speaker 7>you know, by identity, and that's you know, Nigeria is

0:22:57.200 --> 0:22:58.919
<v Speaker 7>one of the most populous countries in the world, so

0:22:58.960 --> 0:23:02.120
<v Speaker 7>we shouldn't be surprised. But it wasn't the case when

0:23:02.119 --> 0:23:05.000
<v Speaker 7>you were in the business school classroom. We weren't recruiting

0:23:05.080 --> 0:23:08.960
<v Speaker 7>from Africa and the African diaspora in the same way.

0:23:09.160 --> 0:23:11.359
<v Speaker 7>It's good for the world that we are your.

0:23:11.240 --> 0:23:16.040
<v Speaker 2>Advice to folks who where we see so much division,

0:23:16.359 --> 0:23:18.919
<v Speaker 2>but you say in your book it can bring us together.

0:23:19.240 --> 0:23:22.120
<v Speaker 2>What are tools we can do? Piece of advice, Well.

0:23:22.040 --> 0:23:24.840
<v Speaker 7>What we need to do is understand what tribal psychology

0:23:24.880 --> 0:23:27.040
<v Speaker 7>really is. And there are three parts to it, what

0:23:27.160 --> 0:23:30.800
<v Speaker 7>I call the peer instinct, the hero instinct, and the

0:23:30.880 --> 0:23:34.200
<v Speaker 7>ancestor instinct. The idea that we were driven to kind

0:23:34.200 --> 0:23:38.240
<v Speaker 7>of imitate our peer group, were driven to emulate our heroes,

0:23:38.560 --> 0:23:41.760
<v Speaker 7>and were driven to perpetuate the ways of our ancestors

0:23:41.800 --> 0:23:45.119
<v Speaker 7>and maintain traditions, and all of those things can be

0:23:45.240 --> 0:23:48.400
<v Speaker 7>positive forces for unity. And what we need to do

0:23:48.520 --> 0:23:54.040
<v Speaker 7>is understand the levers for invoking these forces. They're inside

0:23:54.119 --> 0:23:58.320
<v Speaker 7>every person, but there are triggers that bring them to

0:23:58.359 --> 0:24:02.800
<v Speaker 7>the four that are invisible to us because they operate unconsciously.

0:24:03.240 --> 0:24:06.560
<v Speaker 7>And so I've tried to explain what we've learned from

0:24:06.600 --> 0:24:10.280
<v Speaker 7>lots of research about what those triggers are that a teacher,

0:24:10.480 --> 0:24:14.520
<v Speaker 7>or a manager or a politician can use. And then

0:24:14.560 --> 0:24:18.199
<v Speaker 7>over the longer term, cultures are malleable, and we have

0:24:18.320 --> 0:24:21.240
<v Speaker 7>to understand what are the signals that we can send

0:24:21.280 --> 0:24:25.720
<v Speaker 7>to help evolve the culture. Culture is not a fixed

0:24:25.760 --> 0:24:27.880
<v Speaker 7>thing that we're stuck with. It's something that we can

0:24:27.920 --> 0:24:28.960
<v Speaker 7>mold good.

0:24:29.119 --> 0:24:31.679
<v Speaker 2>That's a great way to wrap it up. Michael Morris,

0:24:31.680 --> 0:24:34.320
<v Speaker 2>thank you so much of Columbia Business School. His new

0:24:34.320 --> 0:24:37.439
<v Speaker 2>book out today, Tribal How the cultural instincts that divide

0:24:37.520 --> 0:24:40.040
<v Speaker 2>us can help bring us together. You're listening and watching

0:24:40.160 --> 0:24:41.200
<v Speaker 2>Bloomberg Business Week.

0:24:44.440 --> 0:24:48.320
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Listen live

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0:24:57.840 --> 0:25:01.440
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0:25:02.480 --> 0:25:05.280
<v Speaker 2>Cruise line Giant Carnival dropped earnings this past week with

0:25:05.359 --> 0:25:08.160
<v Speaker 2>the profit beat, and yet the stock fell initially after

0:25:08.160 --> 0:25:10.760
<v Speaker 2>the company announced adjusted EBITDA for the fourth quarter that

0:25:10.840 --> 0:25:14.080
<v Speaker 2>was slightly below consensus and a weaker outlook for net

0:25:14.160 --> 0:25:17.399
<v Speaker 2>yields in the current quarter. So investors were a little

0:25:17.400 --> 0:25:18.840
<v Speaker 2>concerned initially.

0:25:18.480 --> 0:25:21.359
<v Speaker 3>And yet several analysts raised their price targets on the stock.

0:25:21.600 --> 0:25:23.720
<v Speaker 3>For the latest on Carnival's business, we caught up with

0:25:23.760 --> 0:25:27.400
<v Speaker 3>the Carnival president and CEO who's also the chief climate Officer,

0:25:27.480 --> 0:25:30.200
<v Speaker 3>Josh Weinstein. He joined us just after FED chair j

0:25:30.320 --> 0:25:34.159
<v Speaker 3>Powell speech Monday at the National Association of Business Economics.

0:25:34.480 --> 0:25:37.720
<v Speaker 9>I don't usually follow the FED chairman. This is a

0:25:37.800 --> 0:25:39.920
<v Speaker 9>big this is a big thrill to go check out

0:25:40.000 --> 0:25:40.960
<v Speaker 9>Jack White.

0:25:41.160 --> 0:25:42.240
<v Speaker 8>Jack White in Nashville.

0:25:42.960 --> 0:25:45.879
<v Speaker 9>Well, we'll talk about the third quarter first, and as

0:25:45.920 --> 0:25:48.160
<v Speaker 9>I've been able to say for the last several quarters,

0:25:48.200 --> 0:25:51.679
<v Speaker 9>it's record you know, we just hit a record for revenues,

0:25:51.760 --> 0:25:57.520
<v Speaker 9>for revenue yields, for operating income, customer deposits, bookings two

0:25:57.640 --> 0:26:01.640
<v Speaker 9>years out, so right up and down our business, it's

0:26:02.119 --> 0:26:03.639
<v Speaker 9>records and strong demand.

0:26:03.720 --> 0:26:07.160
<v Speaker 8>So we ended the third quarter up about eight.

0:26:06.960 --> 0:26:11.240
<v Speaker 9>Point seven percent in our yield year over year, which

0:26:11.320 --> 0:26:15.240
<v Speaker 9>was strong, and the same time, we held our cost flat,

0:26:15.280 --> 0:26:17.080
<v Speaker 9>which was which is also good to note, and that

0:26:17.160 --> 0:26:20.920
<v Speaker 9>resulted in, like I said, a record quarter, and as

0:26:20.920 --> 0:26:23.720
<v Speaker 9>we were able to adjust our full year guidance. We

0:26:23.760 --> 0:26:26.760
<v Speaker 9>did that for the third time this year, and it's

0:26:26.800 --> 0:26:29.360
<v Speaker 9>going to take us up to about six billion dollars

0:26:29.359 --> 0:26:33.000
<v Speaker 9>of EBITDA, which again, to use a broken record word,

0:26:33.200 --> 0:26:36.440
<v Speaker 9>it's a record, and so we're expecting much more as

0:26:36.440 --> 0:26:38.639
<v Speaker 9>we get into the fourth quarter and then beyond.

0:26:39.000 --> 0:26:41.400
<v Speaker 2>In terms of macro, what matters in terms of FED

0:26:41.440 --> 0:26:43.159
<v Speaker 2>policy for you, and what's going on in terms of

0:26:43.160 --> 0:26:45.520
<v Speaker 2>the interest rate environment. He did also talk about the

0:26:45.560 --> 0:26:49.080
<v Speaker 2>savings rate, suggesting consumers can continue spending, which we want

0:26:49.119 --> 0:26:51.199
<v Speaker 2>to get into too in terms of it seems like

0:26:51.280 --> 0:26:54.399
<v Speaker 2>consumers are certainly still spending on cruises. But give us macro,

0:26:54.560 --> 0:26:57.120
<v Speaker 2>give us consumer spending. How you would describe it all?

0:26:57.480 --> 0:27:00.280
<v Speaker 9>Well, For us, the word's going to be robust, you know.

0:27:00.320 --> 0:27:03.200
<v Speaker 9>I mean, we've been living through this cycle with everybody else.

0:27:03.240 --> 0:27:05.240
<v Speaker 9>We've lived through the high inflation, We've lived in the

0:27:05.320 --> 0:27:08.680
<v Speaker 9>high interest rate environment, and now we see inflation down,

0:27:08.800 --> 0:27:12.159
<v Speaker 9>we see the Fed taking action to start reducing that

0:27:12.200 --> 0:27:15.280
<v Speaker 9>interest rate environment. And through all of it, what we've

0:27:15.320 --> 0:27:19.080
<v Speaker 9>been seeing is robust demand. And because of our business,

0:27:19.160 --> 0:27:21.280
<v Speaker 9>you know, first of all, it's a global business. As

0:27:21.280 --> 0:27:23.479
<v Speaker 9>you know, we have a portfolio of brands that are

0:27:23.480 --> 0:27:27.280
<v Speaker 9>really world class all over all over the world. And

0:27:27.760 --> 0:27:31.280
<v Speaker 9>what we see is strong demand depending no matter how

0:27:31.280 --> 0:27:35.200
<v Speaker 9>you slice it, whether it's geographic, whether it's contemporary versus

0:27:35.200 --> 0:27:39.119
<v Speaker 9>more premium. We're seeing that strength and we see it

0:27:39.200 --> 0:27:42.159
<v Speaker 9>in the results. We see it in the onboard spending levels.

0:27:42.400 --> 0:27:44.480
<v Speaker 9>You know, as part of our third quarter results. It's

0:27:44.520 --> 0:27:47.040
<v Speaker 9>not just about the ticket revenue which was taken anywhere

0:27:47.080 --> 0:27:49.800
<v Speaker 9>from you know, six months to up to two years

0:27:49.800 --> 0:27:52.760
<v Speaker 9>in advance, but what's the actual onboard spending environment, which

0:27:52.800 --> 0:27:55.320
<v Speaker 9>is much more real time. And the fact is our

0:27:55.400 --> 0:27:59.160
<v Speaker 9>onboard spending for this past quarter was up over six

0:27:59.240 --> 0:28:03.600
<v Speaker 9>percent year over year, and that's actually an acceleration because

0:28:03.640 --> 0:28:05.480
<v Speaker 9>in the second quarter it was up closer to four

0:28:05.560 --> 0:28:08.879
<v Speaker 9>percent year over year. So what we're seeing is is

0:28:08.920 --> 0:28:12.680
<v Speaker 9>consumers that are healthy, that still want to spend on experiences.

0:28:12.920 --> 0:28:15.639
<v Speaker 9>And as you've probably heard me say before, we are

0:28:15.680 --> 0:28:19.720
<v Speaker 9>an unparalleled value, right, we are a better value to land.

0:28:19.720 --> 0:28:21.720
<v Speaker 9>I remember being in the offices with you in December

0:28:21.800 --> 0:28:26.240
<v Speaker 9>talking about my hotel stay. Not only are we unparalleled

0:28:26.240 --> 0:28:29.320
<v Speaker 9>in the value, we are unparalleled in the experience that

0:28:29.400 --> 0:28:32.159
<v Speaker 9>we give to people. You get value for what you

0:28:32.280 --> 0:28:35.240
<v Speaker 9>pay for, and we deliver on that guest experience like

0:28:35.280 --> 0:28:35.800
<v Speaker 9>nobody else.

0:28:35.960 --> 0:28:39.000
<v Speaker 3>So, Josh, are you seeing any weakness across any part

0:28:39.120 --> 0:28:42.280
<v Speaker 3>of the portfolio of brands right now from any segment.

0:28:41.920 --> 0:28:42.560
<v Speaker 4>Of the consumer?

0:28:43.680 --> 0:28:47.840
<v Speaker 8>Now, we're really not no pullback whatsoever, now, you know.

0:28:47.920 --> 0:28:49.280
<v Speaker 9>I mean, as a matter of fact, if you look

0:28:49.320 --> 0:28:53.320
<v Speaker 9>at our twenty twenty five booked position, it's higher in

0:28:53.440 --> 0:28:55.960
<v Speaker 9>price and occupancy than it's ever been at the same

0:28:55.960 --> 0:28:58.720
<v Speaker 9>point in time. When you look at twenty twenty five,

0:28:58.840 --> 0:29:02.720
<v Speaker 9>we're higher in every single quarter price and occupancy. So

0:29:02.800 --> 0:29:06.440
<v Speaker 9>things are, things are moving in continuing to move in

0:29:06.520 --> 0:29:08.960
<v Speaker 9>the right direction. And I think it's I think you know,

0:29:09.040 --> 0:29:12.240
<v Speaker 9>cruises cruises tiny Right at the end of the day,

0:29:12.280 --> 0:29:14.479
<v Speaker 9>we're the biggest cruise company in the world, but if

0:29:14.520 --> 0:29:16.760
<v Speaker 9>you take the whole cruise industry, it's only about two

0:29:16.800 --> 0:29:19.840
<v Speaker 9>percent of the overall vacation market. So we are a

0:29:19.960 --> 0:29:24.200
<v Speaker 9>very tiny segment in a huge market with a lot

0:29:24.240 --> 0:29:26.520
<v Speaker 9>of room to grow. Because we're getting the word out,

0:29:26.880 --> 0:29:30.360
<v Speaker 9>we are being more effective in communicating the value and

0:29:30.400 --> 0:29:35.160
<v Speaker 9>communicating the experience and really deferent differentiating our brands so

0:29:35.200 --> 0:29:37.360
<v Speaker 9>that they get a cut through and it means something

0:29:37.360 --> 0:29:39.560
<v Speaker 9>to people, and that's paying dividends.

0:29:39.640 --> 0:29:41.280
<v Speaker 2>Talk to us about the cost side of the equation,

0:29:41.400 --> 0:29:43.400
<v Speaker 2>as you just said, and I read too that nearly

0:29:43.440 --> 0:29:45.920
<v Speaker 2>half of twenty twenty five bookings are done at record

0:29:45.960 --> 0:29:49.840
<v Speaker 2>ticket prices. The cost equation, You guys are a floating

0:29:49.880 --> 0:29:52.920
<v Speaker 2>city once you're at on the water. Food, you know,

0:29:53.080 --> 0:29:55.600
<v Speaker 2>meals labor. Tell us what you're seeing in terms of

0:29:55.600 --> 0:29:57.200
<v Speaker 2>the cost side of the equation, Josh.

0:29:57.080 --> 0:29:59.560
<v Speaker 9>Yeah, So it's good news there too. You know, we

0:29:59.600 --> 0:30:03.560
<v Speaker 9>are seeing that deacceleration of deceleration part of me of inflation,

0:30:04.160 --> 0:30:06.480
<v Speaker 9>and we were actually just today able to take our

0:30:06.520 --> 0:30:10.320
<v Speaker 9>cost guidance for the full year down from up four

0:30:10.360 --> 0:30:12.520
<v Speaker 9>and a half percent on a unit basis to up

0:30:12.640 --> 0:30:15.280
<v Speaker 9>three and a half percent on a unit basis, so

0:30:15.320 --> 0:30:17.880
<v Speaker 9>we're making good progress there. We are seeing the benefit

0:30:17.960 --> 0:30:20.880
<v Speaker 9>of a lot of hundreds and hundreds of activities that

0:30:20.920 --> 0:30:24.600
<v Speaker 9>we're doing across our brands, taking little bits of efficiency,

0:30:25.040 --> 0:30:27.720
<v Speaker 9>better sourcing savings when we can, and it adds up

0:30:27.760 --> 0:30:31.080
<v Speaker 9>given our scale. So all things are starting to move

0:30:31.120 --> 0:30:33.600
<v Speaker 9>in the right direction on the cost side, which is

0:30:33.720 --> 0:30:36.320
<v Speaker 9>very different obviously than what we've been experiencing along with

0:30:36.400 --> 0:30:39.000
<v Speaker 9>everybody else as we went through that inflationary cycle.

0:30:39.240 --> 0:30:42.000
<v Speaker 3>Speaking of the inflationary cycle, I'm wondering about the pricing

0:30:42.040 --> 0:30:44.400
<v Speaker 3>power from your perspective. If you're going to be able

0:30:44.480 --> 0:30:47.760
<v Speaker 3>to continue to raise prices in your view next year

0:30:47.800 --> 0:30:48.760
<v Speaker 3>and year after year.

0:30:49.000 --> 0:30:50.360
<v Speaker 8>You know, that's certainly the goal.

0:30:50.440 --> 0:30:52.719
<v Speaker 9>You know, at the beginning of this year, when we

0:30:52.720 --> 0:30:55.360
<v Speaker 9>were talking about our guidance for the first time, there

0:30:55.400 --> 0:30:57.000
<v Speaker 9>were a lot of folks that were saying, oh, yeah,

0:30:57.000 --> 0:30:58.560
<v Speaker 9>but you know, when you get to the fourth quarter

0:30:58.840 --> 0:31:01.480
<v Speaker 9>of twenty twenty four. You took your pricing up in

0:31:01.520 --> 0:31:04.440
<v Speaker 9>twenty twenty three ten and a half percent, that was

0:31:04.480 --> 0:31:06.040
<v Speaker 9>our results last fourth quarter.

0:31:07.040 --> 0:31:08.280
<v Speaker 8>You're not going to be able to top that.

0:31:08.480 --> 0:31:10.280
<v Speaker 9>And we just came out with guidance today for the

0:31:10.280 --> 0:31:12.800
<v Speaker 9>fourth quarter where our yields are going to be up

0:31:13.120 --> 0:31:16.640
<v Speaker 9>five percent, the majority of which is more price. So

0:31:17.200 --> 0:31:19.239
<v Speaker 9>we feel very good about what we're doing in our

0:31:19.280 --> 0:31:22.920
<v Speaker 9>ability to manage the booking curve, increase our demand profile,

0:31:23.040 --> 0:31:25.200
<v Speaker 9>and ultimately deliver on board as we always do.

0:31:25.520 --> 0:31:30.640
<v Speaker 2>What keeps you up at night barring another global pandemic? No,

0:31:30.840 --> 0:31:34.000
<v Speaker 2>but seriously, you've been rosy for a while, and I'm

0:31:34.040 --> 0:31:36.680
<v Speaker 2>just curious. It does sound like some really strong metrics.

0:31:36.680 --> 0:31:38.960
<v Speaker 2>And I said, reading some of the analysts commentary, they

0:31:39.000 --> 0:31:41.520
<v Speaker 2>feel the same way. But I'm just curious. What's the

0:31:41.560 --> 0:31:44.040
<v Speaker 2>difficult part of what you guys do. I mean, you're

0:31:44.160 --> 0:31:46.880
<v Speaker 2>ordering new ships, you're adding to that. Tell us Josh, like,

0:31:46.960 --> 0:31:49.280
<v Speaker 2>where is it that you get a little concerns? Is

0:31:49.320 --> 0:31:51.480
<v Speaker 2>it the election outcome? I'm just curious.

0:31:51.800 --> 0:31:53.920
<v Speaker 8>No, I think those types of things are temporal.

0:31:54.080 --> 0:31:56.720
<v Speaker 9>And you know, I mean, truthfully, after living through what

0:31:56.800 --> 0:31:57.760
<v Speaker 9>we lived through.

0:31:57.640 --> 0:32:00.040
<v Speaker 8>In twenty twenty and twenty twenty one and get.

0:32:00.600 --> 0:32:04.680
<v Speaker 9>Getting back from literally a pause to where we are today,

0:32:05.800 --> 0:32:09.320
<v Speaker 9>there's really not much that that keeps me up at night. Truthfully,

0:32:09.360 --> 0:32:11.720
<v Speaker 9>that's within our control. I mean, at the end of

0:32:11.800 --> 0:32:14.160
<v Speaker 9>the day, you know, in a two year period, we

0:32:14.240 --> 0:32:18.840
<v Speaker 9>went from negative EBITDA to up over six billion in

0:32:18.960 --> 0:32:19.360
<v Speaker 9>EVA DA.

0:32:20.040 --> 0:32:22.440
<v Speaker 8>So so I don't see much.

0:32:22.800 --> 0:32:26.000
<v Speaker 9>Within our control that we can we can't push forward,

0:32:26.360 --> 0:32:28.080
<v Speaker 9>and you know that showing I mean just just in

0:32:28.120 --> 0:32:31.080
<v Speaker 9>this year alone. We came out with guidance in December

0:32:31.120 --> 0:32:32.880
<v Speaker 9>for the first time, and we said our yields will

0:32:32.880 --> 0:32:34.800
<v Speaker 9>be up about eight and a half percent. Now we're

0:32:34.840 --> 0:32:37.080
<v Speaker 9>saying up close to ten and a half percent. We

0:32:37.080 --> 0:32:38.840
<v Speaker 9>said costs would be up four and a half percent,

0:32:38.920 --> 0:32:40.960
<v Speaker 9>now they're going to be up three and a half percent.

0:32:41.040 --> 0:32:43.240
<v Speaker 9>We said our return on investing capital will be up

0:32:43.360 --> 0:32:45.440
<v Speaker 9>nine percent, and now we're saying, no, it's ten and

0:32:45.440 --> 0:32:48.080
<v Speaker 9>a half percent, which is a five point improvement year

0:32:48.120 --> 0:32:51.200
<v Speaker 9>over year. So I think we're making real good decisions.

0:32:51.240 --> 0:32:54.360
<v Speaker 9>We've got an amazing team all over the world with

0:32:54.440 --> 0:32:57.400
<v Speaker 9>all of our world class brands really driving the business forward,

0:32:57.800 --> 0:32:59.959
<v Speaker 9>and you know, I just think we were just starting

0:33:00.080 --> 0:33:03.840
<v Speaker 9>to scratch that potential. We are really focused on just

0:33:03.960 --> 0:33:07.400
<v Speaker 9>doing the basics better and better, and it's working.

0:33:07.520 --> 0:33:11.120
<v Speaker 3>Hey, Josh, you're also chief Climate Officer at Carnival Corporation.

0:33:11.600 --> 0:33:13.600
<v Speaker 3>You mentioned things that we're in your control. One thing

0:33:13.600 --> 0:33:17.680
<v Speaker 3>that's not in your control is the weather is the climate.

0:33:17.920 --> 0:33:20.520
<v Speaker 3>The connection between weather and climate. The two are not

0:33:20.560 --> 0:33:24.480
<v Speaker 3>the same, but the two are certainly linked. Many Americans,

0:33:24.520 --> 0:33:28.120
<v Speaker 3>millions of Americans are still cleaning up after Helene in

0:33:28.200 --> 0:33:30.600
<v Speaker 3>multiple states. It's killed more than one hundred people. Many

0:33:30.680 --> 0:33:33.200
<v Speaker 3>are still missing at this point. How do you think

0:33:33.240 --> 0:33:35.800
<v Speaker 3>about climate change in your role? How do you think

0:33:35.840 --> 0:33:38.000
<v Speaker 3>about planning for an uncertain future?

0:33:38.400 --> 0:33:41.760
<v Speaker 9>Well, first of all, our heart, our sympathy goes out

0:33:41.800 --> 0:33:44.320
<v Speaker 9>to all those impacted by Helene. I mean, it is

0:33:44.360 --> 0:33:47.720
<v Speaker 9>a tragedy unfolding, and we have a lot of connections

0:33:47.720 --> 0:33:49.120
<v Speaker 9>to a lot of those local communities.

0:33:49.200 --> 0:33:51.400
<v Speaker 8>So that's first and foremost.

0:33:51.800 --> 0:33:54.240
<v Speaker 9>As far as the bigger picture goes, you know, we

0:33:54.320 --> 0:33:58.000
<v Speaker 9>understand that the world is evolving rapidly. We need to

0:33:58.040 --> 0:34:00.160
<v Speaker 9>do our part, and we need to plan for the future.

0:34:00.360 --> 0:34:02.520
<v Speaker 9>And when it comes to doing our part, we are

0:34:02.800 --> 0:34:07.040
<v Speaker 9>we are steadfast in our in our in our drive

0:34:07.200 --> 0:34:10.600
<v Speaker 9>to reduce our own carbon footprint and do what we

0:34:10.680 --> 0:34:13.120
<v Speaker 9>can to make the world a better place.

0:34:13.320 --> 0:34:14.359
<v Speaker 8>We have.

0:34:14.520 --> 0:34:17.359
<v Speaker 9>We are thirty five percent bigger today than we were

0:34:17.360 --> 0:34:20.839
<v Speaker 9>in twenty eleven, and we admit this year we will

0:34:20.880 --> 0:34:25.080
<v Speaker 9>emit ten percent less absolute greenhouse gas emissions than we

0:34:25.120 --> 0:34:27.479
<v Speaker 9>did in twenty eleven, even though we are thirty five

0:34:27.520 --> 0:34:30.799
<v Speaker 9>percent bigger today. It's because we understand the importance of

0:34:31.080 --> 0:34:34.400
<v Speaker 9>doing what we can to drive that sustainability agenda. And

0:34:34.440 --> 0:34:37.560
<v Speaker 9>as far as preparing for the future, that goes into

0:34:37.560 --> 0:34:39.600
<v Speaker 9>all of our decision making. You know, when we're talking

0:34:39.600 --> 0:34:42.000
<v Speaker 9>about the ships that we're building, when we're talking about

0:34:42.040 --> 0:34:44.520
<v Speaker 9>the destinations that we develop, how can we develop them

0:34:44.520 --> 0:34:48.080
<v Speaker 9>in a way that they can deal with whatever that

0:34:48.200 --> 0:34:53.000
<v Speaker 9>environmental landscape is not five years from now, but twenty

0:34:53.080 --> 0:34:55.560
<v Speaker 9>years from now, in thirty years from now, And keep

0:34:55.640 --> 0:34:58.560
<v Speaker 9>leaning into technology, keep doing our part to figure out

0:34:58.600 --> 0:35:01.239
<v Speaker 9>how we can we can and we can reduce our

0:35:01.280 --> 0:35:02.879
<v Speaker 9>consumption every single year.

0:35:02.960 --> 0:35:03.480
<v Speaker 8>That's the goal.

0:35:03.560 --> 0:35:06.040
<v Speaker 2>And I'm assuming that's incorporating to when you guys build

0:35:06.040 --> 0:35:07.959
<v Speaker 2>out whether it was Grand Turk or I'm thinking about

0:35:07.960 --> 0:35:10.880
<v Speaker 2>Celebration Key right, that opens up in summer of twenty

0:35:10.920 --> 0:35:14.120
<v Speaker 2>twenty five. Just the revenue and cost impact of that

0:35:14.280 --> 0:35:17.200
<v Speaker 2>debut tell us at bit about the dynamics around that one.

0:35:17.400 --> 0:35:19.200
<v Speaker 9>Yeah, it is going to be It is going to

0:35:19.239 --> 0:35:22.319
<v Speaker 9>be pretty special, you know, twenty twenty five. We open

0:35:22.440 --> 0:35:24.759
<v Speaker 9>up in July of twenty twenty five, and then we

0:35:24.800 --> 0:35:27.640
<v Speaker 9>outse go through a ramp up phase as we as

0:35:27.680 --> 0:35:30.040
<v Speaker 9>we learn and we figure out what works, what doesn't work,

0:35:30.040 --> 0:35:32.040
<v Speaker 9>and how we tweak, and it really is going to

0:35:32.080 --> 0:35:34.879
<v Speaker 9>bear fruit in a significant way in twenty twenty six

0:35:34.960 --> 0:35:38.680
<v Speaker 9>when we have nineteen Carnival Cruise Line ships that are

0:35:38.719 --> 0:35:42.080
<v Speaker 9>going to be a reaching celebration key from I think

0:35:42.120 --> 0:35:45.359
<v Speaker 9>about ten different home ports in the United States. So

0:35:45.440 --> 0:35:46.920
<v Speaker 9>not only is that going to be a boost to

0:35:47.360 --> 0:35:49.239
<v Speaker 9>our ticket revenue, is going to be a boost to

0:35:49.280 --> 0:35:51.799
<v Speaker 9>the spending in the destination. And then to the point

0:35:51.840 --> 0:35:54.920
<v Speaker 9>we were just talking about, the proximity to the United

0:35:54.920 --> 0:35:59.680
<v Speaker 9>States is phenomenal from a fuel spend and carbon emission standpoint.

0:35:59.719 --> 0:36:01.960
<v Speaker 9>Because it's so close, we can go slower and shorter

0:36:02.040 --> 0:36:05.280
<v Speaker 9>distances to get there. So we are very much looking

0:36:05.320 --> 0:36:06.960
<v Speaker 9>forward to its introduction.

0:36:07.320 --> 0:36:09.239
<v Speaker 2>All right, great stuff, as Aways, You're a gem for

0:36:09.320 --> 0:36:12.839
<v Speaker 2>being so patient, So appreciated, Josh, look forward to next time.

0:36:12.920 --> 0:36:15.960
<v Speaker 2>Josh Weinstein. He's the President, CEO, and Chief Climate Officer

0:36:16.000 --> 0:36:20.000
<v Speaker 2>of Carnival Corporation. Joining us from Carnival's headquarters in Miami.

0:36:25.160 --> 0:36:28.680
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

0:36:28.719 --> 0:36:31.960
<v Speaker 1>live weekday afternoons from two to five pm Easter Listen

0:36:32.000 --> 0:36:34.160
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0:36:34.200 --> 0:36:37.600
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0:36:38.800 --> 0:36:40.759
<v Speaker 2>Plenty ahead in our second hour of the weekend edition

0:36:40.760 --> 0:36:44.040
<v Speaker 2>of Bloomberg Business Week, including the actor and comedian who

0:36:44.120 --> 0:36:48.080
<v Speaker 2>is now an investor bringing South Asian culture into the mainstream,

0:36:48.160 --> 0:36:50.440
<v Speaker 2>One smooth, spicy Chai at a time.

0:36:50.440 --> 0:36:52.799
<v Speaker 3>Plus why the best air fresheners for your car are

0:36:52.840 --> 0:36:57.440
<v Speaker 3>also the most expensive spoiler alert, it's not those little

0:36:57.480 --> 0:37:03.680
<v Speaker 3>trees seeing at the guests. Also later on the Dracula,

0:37:03.719 --> 0:37:07.080
<v Speaker 3>watch Tom Brady's eleven million dollar auction and Ai Judy

0:37:07.120 --> 0:37:09.480
<v Speaker 3>Garland reading you the Wizard of Oz.

0:37:09.520 --> 0:37:10.200
<v Speaker 4>That's all in.

0:37:10.320 --> 0:37:13.040
<v Speaker 2>Pursuits first up this hour, we're not talking metaverse in

0:37:13.120 --> 0:37:16.160
<v Speaker 2>high tech, not talking geopolitics or the state of the world.

0:37:16.880 --> 0:37:19.520
<v Speaker 2>Rather something simpler and closer to our hearts.

0:37:19.880 --> 0:37:22.440
<v Speaker 3>Mac and cheese and building a dream from it. That's

0:37:22.480 --> 0:37:24.960
<v Speaker 3>what Aaron Wade did, leaving her job as a corporate

0:37:25.040 --> 0:37:27.560
<v Speaker 3>lawyer to start a mac and cheese restaurant, write a

0:37:27.560 --> 0:37:30.440
<v Speaker 3>cookbook and manual on how to start and run a business.

0:37:30.880 --> 0:37:33.160
<v Speaker 3>She came up with a blueprint for a really serious

0:37:33.200 --> 0:37:34.480
<v Speaker 3>problem in her industry.

0:37:34.520 --> 0:37:36.759
<v Speaker 2>Yeah, She's did a lot of stuff. Aerin is author

0:37:36.800 --> 0:37:38.759
<v Speaker 2>of the book The Mac and Cheese Millionaire, Building a

0:37:38.760 --> 0:37:42.000
<v Speaker 2>Better business by Thinking outside the box. She joined me

0:37:42.040 --> 0:37:45.279
<v Speaker 2>alongside Bloomberg Daybreak Europe co anchor Stephen Carroll, who was

0:37:45.320 --> 0:37:46.440
<v Speaker 2>recently in for Tim.

0:37:46.920 --> 0:37:49.960
<v Speaker 6>I began my career with a huge passion for food

0:37:50.040 --> 0:37:53.239
<v Speaker 6>and had cooked in restaurants, but found that it was

0:37:53.280 --> 0:37:56.279
<v Speaker 6>a really dead end job. The pay is low, the

0:37:56.440 --> 0:37:58.959
<v Speaker 6>treatment is not great. So I just did not see

0:37:58.960 --> 0:38:01.279
<v Speaker 6>a future for myself. So I decided to go to

0:38:01.320 --> 0:38:03.840
<v Speaker 6>law school and do what you know, generations of lost

0:38:03.880 --> 0:38:06.120
<v Speaker 6>people with no direction have done and become a lawyer.

0:38:08.040 --> 0:38:11.760
<v Speaker 6>But I didn't. I didn't love it, so I actually

0:38:11.800 --> 0:38:15.360
<v Speaker 6>got fired. Turns out you're not good at what you

0:38:15.360 --> 0:38:18.360
<v Speaker 6>don't like doing. And I decided I wanted to create

0:38:18.400 --> 0:38:20.920
<v Speaker 6>the restaurant that I wish that I could have worked at.

0:38:21.120 --> 0:38:24.480
<v Speaker 6>So not just was it a love of family, my

0:38:24.520 --> 0:38:27.080
<v Speaker 6>family recipe of mac and cheese, and wanting to bring

0:38:27.080 --> 0:38:29.000
<v Speaker 6>that to the market, because I just didn't see that

0:38:29.120 --> 0:38:32.200
<v Speaker 6>being filled anywhere. You know, there's like pizza restaurants, barbecue,

0:38:32.760 --> 0:38:35.680
<v Speaker 6>but not mac and cheese. But I really want to

0:38:35.719 --> 0:38:38.440
<v Speaker 6>focus on how do I create the kind of workplace

0:38:38.680 --> 0:38:40.520
<v Speaker 6>that I wish, the kind of restaurant that I could

0:38:40.520 --> 0:38:42.360
<v Speaker 6>have worked in, and what do I need to do

0:38:42.440 --> 0:38:42.799
<v Speaker 6>to do that?

0:38:43.000 --> 0:38:45.719
<v Speaker 2>So, what in particular did you want in terms of

0:38:45.760 --> 0:38:47.839
<v Speaker 2>making it the place that you wanted to work at?

0:38:47.920 --> 0:38:49.440
<v Speaker 2>What was it that needed to be different?

0:38:49.800 --> 0:38:51.120
<v Speaker 6>You know, my book is filled with a lot of

0:38:51.120 --> 0:38:52.840
<v Speaker 6>trial and error. I think the truth is I didn't know.

0:38:52.920 --> 0:38:54.719
<v Speaker 6>I knew what I didn't want to do right, but

0:38:54.800 --> 0:38:57.279
<v Speaker 6>sometimes it's harder when you haven't had the example set

0:38:57.360 --> 0:39:00.359
<v Speaker 6>of what you do want to do. So I found

0:39:00.360 --> 0:39:02.920
<v Speaker 6>that it really came down to three things, which was

0:39:03.320 --> 0:39:08.120
<v Speaker 6>you know, communication, collaboration, and collective success and having to

0:39:08.120 --> 0:39:10.359
<v Speaker 6>give you examples of you know, ways that we did

0:39:10.400 --> 0:39:12.839
<v Speaker 6>all those three things. But that I found was really

0:39:12.880 --> 0:39:15.880
<v Speaker 6>the secret to our success. And you know, not only

0:39:16.000 --> 0:39:20.000
<v Speaker 6>in an industry where the average tenure is you know,

0:39:20.080 --> 0:39:22.040
<v Speaker 6>less than ninety days. Our average tenure is two and

0:39:22.080 --> 0:39:24.200
<v Speaker 6>a half years. But our profitability was in the top

0:39:24.320 --> 0:39:27.440
<v Speaker 6>one percent of restaurants. So I'm really proud of what

0:39:27.440 --> 0:39:28.000
<v Speaker 6>we achieved.

0:39:28.080 --> 0:39:30.680
<v Speaker 10>Yeah, because look, it's a difficult business to get into,

0:39:30.760 --> 0:39:32.320
<v Speaker 10>and I think if you know, if you're going to

0:39:32.360 --> 0:39:34.640
<v Speaker 10>make a leap of faith into something new. You didn't

0:39:34.640 --> 0:39:38.359
<v Speaker 10>perhaps pick the clearest or the easiest path to do that.

0:39:38.800 --> 0:39:41.920
<v Speaker 10>Talk us about getting getting the first the first homeroom started.

0:39:42.200 --> 0:39:44.520
<v Speaker 6>I think that's why actually it makes for such a

0:39:44.520 --> 0:39:47.880
<v Speaker 6>great business book, because you know, if we were using

0:39:47.920 --> 0:39:51.840
<v Speaker 6>these techniques successfully, I mean, it is the hardest industry

0:39:51.840 --> 0:39:53.640
<v Speaker 6>to make it, so, you know, I really think they

0:39:53.680 --> 0:39:56.600
<v Speaker 6>can these ideas can work anywhere. But yeah, I mean

0:39:56.800 --> 0:39:59.520
<v Speaker 6>it's it's crazy. I mean, banks won't even give you

0:39:59.640 --> 0:40:02.040
<v Speaker 6>loans because it's considered you know, your your odds are

0:40:02.040 --> 0:40:05.520
<v Speaker 6>better and less Vegas than investing in a restaurant. But

0:40:05.880 --> 0:40:08.040
<v Speaker 6>I do think that with sort of you know, by

0:40:08.120 --> 0:40:10.200
<v Speaker 6>using these techniques, I think people in all kinds of

0:40:10.200 --> 0:40:12.040
<v Speaker 6>businesses can can beat the odds.

0:40:12.200 --> 0:40:14.600
<v Speaker 10>Tolk us through the first few months of that business, though,

0:40:14.760 --> 0:40:17.440
<v Speaker 10>at what point did you know that you hot you

0:40:17.480 --> 0:40:19.600
<v Speaker 10>were onto something and that you that was going to

0:40:19.640 --> 0:40:22.200
<v Speaker 10>take off into something that of course it became a hit.

0:40:22.960 --> 0:40:27.040
<v Speaker 6>Luckily we were packed from you know, day one, and

0:40:27.360 --> 0:40:31.560
<v Speaker 6>I really credit it to frankly, just having an exceptionally

0:40:31.760 --> 0:40:35.279
<v Speaker 6>good quality product. So you know, at most restaurants, if

0:40:35.320 --> 0:40:37.000
<v Speaker 6>they have mac and cheese at all, it is a

0:40:37.040 --> 0:40:39.279
<v Speaker 6>side dish it's something that is not paid very much

0:40:39.280 --> 0:40:41.919
<v Speaker 6>attention to, and for us, this is really the main thing.

0:40:42.040 --> 0:40:43.759
<v Speaker 6>So you know, we made each one to order, We

0:40:43.920 --> 0:40:47.279
<v Speaker 6>used my family recipe. We put nearly a quarter pound

0:40:47.320 --> 0:40:50.280
<v Speaker 6>of cheese in each portion, so you know, it's incredibly cheesy,

0:40:50.280 --> 0:40:54.239
<v Speaker 6>it's fresh, it's it's made with love and care, and

0:40:54.600 --> 0:40:57.000
<v Speaker 6>you know, and that makes a huge difference versus sitting

0:40:57.000 --> 0:40:59.120
<v Speaker 6>in a vat somewhere. So I think people were very,

0:40:59.200 --> 0:41:02.520
<v Speaker 6>very obsessed with the products from day one. But frankly,

0:41:02.600 --> 0:41:04.800
<v Speaker 6>I think also what we did is like created tremendous

0:41:04.880 --> 0:41:07.080
<v Speaker 6>value surrounding the experience. Because I had worked a lot

0:41:07.120 --> 0:41:09.759
<v Speaker 6>in fine dining, but something that I thought was really

0:41:09.840 --> 0:41:12.719
<v Speaker 6>lacking in a more casual setting is like, you know,

0:41:13.040 --> 0:41:15.560
<v Speaker 6>great design and great service. Those things don't need to

0:41:15.680 --> 0:41:18.560
<v Speaker 6>cost more, they just need someone to care more. And so,

0:41:18.960 --> 0:41:21.120
<v Speaker 6>you know, I think that people's perception of value of

0:41:21.120 --> 0:41:24.320
<v Speaker 6>getting to sit in this really beautifully designed space, getting

0:41:24.800 --> 0:41:26.920
<v Speaker 6>you know, some of the best service that they've had

0:41:26.960 --> 0:41:29.959
<v Speaker 6>in a restaurant while eating you know, the best version

0:41:30.000 --> 0:41:31.600
<v Speaker 6>of mac and cheese they've ever had. It's just a

0:41:31.600 --> 0:41:32.280
<v Speaker 6>winning combo.

0:41:32.400 --> 0:41:34.400
<v Speaker 2>I have to say, there's a restaurant in our neighborhood,

0:41:34.400 --> 0:41:38.480
<v Speaker 2>a local, one family run and they have an incredible

0:41:38.520 --> 0:41:40.239
<v Speaker 2>mac and cheese and we will go there just for

0:41:40.280 --> 0:41:41.600
<v Speaker 2>the mac and cheese. And it used to be a

0:41:41.600 --> 0:41:44.000
<v Speaker 2>place downtown. I don't even know if it exists, but

0:41:44.040 --> 0:41:46.160
<v Speaker 2>that's all it did and great, you know, cast iron

0:41:46.239 --> 0:41:49.280
<v Speaker 2>skillets and any kind of like varieties of mac and cheese.

0:41:49.360 --> 0:41:52.239
<v Speaker 2>It is like just that food that we just love.

0:41:52.280 --> 0:41:54.680
<v Speaker 2>We just love. What's one of the biggest I don't

0:41:54.680 --> 0:41:57.120
<v Speaker 2>know what was one of the biggest moments in this process.

0:41:57.200 --> 0:41:59.360
<v Speaker 2>I feel like everybody who started a business, especially in

0:41:59.400 --> 0:42:01.279
<v Speaker 2>the restaurant in history, we've all seen the bear and

0:42:01.320 --> 0:42:04.279
<v Speaker 2>loved it. But I do wonder where you were. I

0:42:04.280 --> 0:42:07.680
<v Speaker 2>don't know. It was either just a huge learning experience,

0:42:07.760 --> 0:42:10.680
<v Speaker 2>whether from your team, from your workers, I don't know.

0:42:10.840 --> 0:42:13.879
<v Speaker 6>Tell us you know. I have to say we used

0:42:13.920 --> 0:42:16.600
<v Speaker 6>a lot of like really interesting techniques to engage people

0:42:16.600 --> 0:42:19.120
<v Speaker 6>in the business. For instance, we're an open book company

0:42:19.200 --> 0:42:22.160
<v Speaker 6>and so share financials and teach financial literacy, and I

0:42:22.160 --> 0:42:24.879
<v Speaker 6>think that was a huge aha, right, It like really

0:42:25.040 --> 0:42:28.680
<v Speaker 6>unlocks people's like potential and power to understand business in

0:42:28.719 --> 0:42:30.799
<v Speaker 6>a deep way and to feel like they're part of

0:42:30.800 --> 0:42:33.279
<v Speaker 6>something that's bigger than themselves versus just showing up every

0:42:33.360 --> 0:42:35.719
<v Speaker 6>day to cook. So, you know, I'd say that's one

0:42:35.760 --> 0:42:39.160
<v Speaker 6>moment that I'm incredibly proud of. But you know, another

0:42:39.520 --> 0:42:41.920
<v Speaker 6>is that we used all these techniques of you know,

0:42:42.600 --> 0:42:47.000
<v Speaker 6>we had a lot of different tools to be communicating, collaborating,

0:42:47.120 --> 0:42:51.120
<v Speaker 6>and we actually came up with a solution to sexual

0:42:51.160 --> 0:42:55.399
<v Speaker 6>harassment which our staff was experiencing, and it I wrote

0:42:55.400 --> 0:42:58.279
<v Speaker 6>a viral piece in the Washington Post about it, it

0:42:58.320 --> 0:43:01.239
<v Speaker 6>got adopted by the EEO. I went to Washington to

0:43:01.280 --> 0:43:03.560
<v Speaker 6>go testify about it, and it's now used by restaurants

0:43:03.560 --> 0:43:05.960
<v Speaker 6>and bars all around the world. So, you know, I

0:43:05.960 --> 0:43:08.279
<v Speaker 6>think that also, frankly, when you tap into the power

0:43:08.360 --> 0:43:10.200
<v Speaker 6>of a workforce. You know, we were just a small

0:43:10.239 --> 0:43:12.799
<v Speaker 6>restaurant but made a difference on a global scale, and

0:43:13.000 --> 0:43:14.239
<v Speaker 6>I'm incredibly proud of that.

0:43:14.719 --> 0:43:16.200
<v Speaker 2>But talk to us a little bit more about that,

0:43:16.400 --> 0:43:19.160
<v Speaker 2>like how you came to realize it's something needed to

0:43:19.160 --> 0:43:20.080
<v Speaker 2>be done differently.

0:43:20.400 --> 0:43:22.840
<v Speaker 6>Well, I was approached by a number of female servers

0:43:22.840 --> 0:43:25.360
<v Speaker 6>at the restaurant who all were complaining, and honestly, they

0:43:25.400 --> 0:43:27.719
<v Speaker 6>said they'd worked at a ton of places and this

0:43:27.760 --> 0:43:29.960
<v Speaker 6>had happened everywhere this was just the first time that

0:43:30.000 --> 0:43:32.279
<v Speaker 6>they thought maybe someone would actually do something about it.

0:43:32.360 --> 0:43:35.719
<v Speaker 6>And so I did what I usually did when someone

0:43:35.760 --> 0:43:38.719
<v Speaker 6>brings up a problem, which is include them in the

0:43:38.760 --> 0:43:42.960
<v Speaker 6>solution to it. So, you know, we came up with

0:43:43.000 --> 0:43:46.439
<v Speaker 6>a system that our entire staff that wanted to participate

0:43:46.800 --> 0:43:49.760
<v Speaker 6>did participate in creating it. And I think the reason

0:43:49.800 --> 0:43:53.600
<v Speaker 6>it's so effective is that, honestly, it really sort of

0:43:53.640 --> 0:43:56.840
<v Speaker 6>honors people wherever they are. It's like basically a color

0:43:56.880 --> 0:44:02.360
<v Speaker 6>coded system, and when someone experienced is something with that color,

0:44:02.400 --> 0:44:04.600
<v Speaker 6>they just report the color and an action is taken.

0:44:04.920 --> 0:44:08.239
<v Speaker 6>So you know, for instance, a yellow is just you

0:44:08.280 --> 0:44:11.120
<v Speaker 6>get a bad vibe at a table. You just say hey,

0:44:11.120 --> 0:44:13.800
<v Speaker 6>I've got a yellow at table two, and a manager

0:44:14.600 --> 0:44:16.920
<v Speaker 6>will take it over for you. And an orange is

0:44:16.920 --> 0:44:19.719
<v Speaker 6>you have a bad feeling. Plus let's say an ambiguous

0:44:19.719 --> 0:44:23.320
<v Speaker 6>comment something like I like your shirt. You know, depending

0:44:23.320 --> 0:44:24.879
<v Speaker 6>on who says that to you and how they say

0:44:24.920 --> 0:44:28.000
<v Speaker 6>it to you, it might feel totally benign or aggressive.

0:44:28.840 --> 0:44:30.719
<v Speaker 6>And so same deal. Someone just goes to a manager

0:44:30.760 --> 0:44:32.359
<v Speaker 6>and says, hey, I've got an orange at table too,

0:44:32.480 --> 0:44:35.520
<v Speaker 6>and the manager takes it over. And with a red,

0:44:35.680 --> 0:44:39.360
<v Speaker 6>that's someone saying something overtly sexual or touching a staff member,

0:44:39.400 --> 0:44:41.719
<v Speaker 6>and in that case, again the staff member just says

0:44:41.719 --> 0:44:43.600
<v Speaker 6>the color and then the manager's required to kick the

0:44:43.640 --> 0:44:46.359
<v Speaker 6>person out. And you know, I think what's so cool

0:44:46.360 --> 0:44:49.359
<v Speaker 6>about the system is that you know, guests honestly don't

0:44:49.400 --> 0:44:51.400
<v Speaker 6>know is being used on them, so it's very customer

0:44:51.440 --> 0:44:54.160
<v Speaker 6>friendly it. You know, staff members are going to have

0:44:54.200 --> 0:44:56.719
<v Speaker 6>all kinds of different experiences, and some people are going

0:44:56.760 --> 0:44:59.480
<v Speaker 6>to find certain things threatening and other ones won't, and

0:44:59.520 --> 0:45:01.680
<v Speaker 6>so it allows allow us to meet staff where they

0:45:01.680 --> 0:45:04.600
<v Speaker 6>are and take action and it's really easy for managers

0:45:04.600 --> 0:45:07.279
<v Speaker 6>to use. And what we found is amazing. As we

0:45:07.320 --> 0:45:09.360
<v Speaker 6>thought it would just be a way of coping with

0:45:09.480 --> 0:45:11.600
<v Speaker 6>harassment and just giving us a way to deal with it,

0:45:11.680 --> 0:45:14.319
<v Speaker 6>but actually what it did is it really nearly eliminated

0:45:14.360 --> 0:45:17.279
<v Speaker 6>the worst forms of it, because very few people walk

0:45:17.320 --> 0:45:19.840
<v Speaker 6>into a restaurant and like stick their hand of someone's shirt.

0:45:19.880 --> 0:45:22.319
<v Speaker 6>But you know, they will usually start with lower level

0:45:22.320 --> 0:45:24.680
<v Speaker 6>things like checking them out or making low level comments,

0:45:24.719 --> 0:45:27.200
<v Speaker 6>and then once things are tolerated, they escalate their behavior.

0:45:27.320 --> 0:45:31.240
<v Speaker 6>So it just really sort of stopped the problem from happening,

0:45:31.440 --> 0:45:33.839
<v Speaker 6>and in a way that I think is really respectful

0:45:34.239 --> 0:45:37.960
<v Speaker 6>to people, you know, no matter if their customer, staff manager.

0:45:38.080 --> 0:45:40.120
<v Speaker 10>I think what I find really interesting about this, this

0:45:40.160 --> 0:45:42.759
<v Speaker 10>Color Code of Conduct is you're giving people language to

0:45:42.760 --> 0:45:45.680
<v Speaker 10>be able to talk about how they feel and how

0:45:45.680 --> 0:45:48.120
<v Speaker 10>they feel affected by it. And it's a model that's

0:45:48.160 --> 0:45:51.080
<v Speaker 10>been taken up by businesses elsewhere as well. Talk to

0:45:51.160 --> 0:45:53.279
<v Speaker 10>us a little bit about how you're seeing. You know,

0:45:53.560 --> 0:45:55.880
<v Speaker 10>what you've heard about how the Color Code of conducts

0:45:55.960 --> 0:45:58.320
<v Speaker 10>being used outside of your business.

0:45:58.640 --> 0:46:01.800
<v Speaker 6>Yeah, I mean I've gotten like from just fabulous feedback.

0:46:01.840 --> 0:46:03.640
<v Speaker 6>And actually, you know, one of the most fun parts

0:46:03.680 --> 0:46:05.040
<v Speaker 6>is there's plenty of people that use it that I'll

0:46:05.080 --> 0:46:06.879
<v Speaker 6>never know. But I'll walk into a bar and I'll

0:46:06.920 --> 0:46:09.080
<v Speaker 6>find like one of our posters on the wall. Or

0:46:09.920 --> 0:46:12.080
<v Speaker 6>I went to speak at a conference and it was

0:46:12.160 --> 0:46:15.640
<v Speaker 6>like all these you know, bar owners from like across

0:46:16.280 --> 0:46:20.080
<v Speaker 6>America and the globe. And I was so surprised because

0:46:20.080 --> 0:46:22.719
<v Speaker 6>at the end of my session, I didn't, you know,

0:46:23.280 --> 0:46:24.920
<v Speaker 6>I wasn't getting a ton of questions, and I was like,

0:46:24.920 --> 0:46:27.279
<v Speaker 6>what's happening here? And then I asked people to raise

0:46:27.280 --> 0:46:28.920
<v Speaker 6>their hand if they had known of the system or

0:46:28.920 --> 0:46:30.440
<v Speaker 6>if they use it in their bar, and like everyone

0:46:30.520 --> 0:46:33.239
<v Speaker 6>raised their hand and I was like, okay, cool. So

0:46:34.440 --> 0:46:35.760
<v Speaker 6>I wonder doesn't help people.

0:46:36.680 --> 0:46:39.040
<v Speaker 10>This is an industry where there's a huge staff turnover, right,

0:46:39.239 --> 0:46:42.160
<v Speaker 10>I wonder how much that's helped towards staff retention at

0:46:42.160 --> 0:46:43.600
<v Speaker 10>a time. You know, we talk so much about the

0:46:43.640 --> 0:46:45.920
<v Speaker 10>tight labor markets, and we know that hospitality is one

0:46:45.960 --> 0:46:48.279
<v Speaker 10>sector really affected by that. Has it helped you to

0:46:48.440 --> 0:46:51.040
<v Speaker 10>keep people good people on your staff?

0:46:51.280 --> 0:46:51.440
<v Speaker 8>Oh?

0:46:51.440 --> 0:46:53.399
<v Speaker 6>I got one hundred percent. I mean to my point

0:46:53.440 --> 0:46:55.160
<v Speaker 6>about sort of all the tools in the book, right,

0:46:55.239 --> 0:46:57.759
<v Speaker 6>if we can use them, then anyone can. Because I

0:46:57.800 --> 0:47:00.480
<v Speaker 6>think you know, something really missing from the converse right

0:47:00.520 --> 0:47:03.239
<v Speaker 6>now about the labor market and what to do is that,

0:47:03.680 --> 0:47:07.640
<v Speaker 6>in my experience, the most meaningful things actually don't cost money.

0:47:07.680 --> 0:47:10.800
<v Speaker 6>They just take time and care. Right Like, we are constrained.

0:47:10.800 --> 0:47:12.719
<v Speaker 6>There's only so much we can pay people when we're

0:47:12.800 --> 0:47:15.040
<v Speaker 6>charging folks ten dollars for mac and cheese, right, Like,

0:47:15.080 --> 0:47:17.920
<v Speaker 6>It's just that's just true. It's not going to be

0:47:18.000 --> 0:47:21.200
<v Speaker 6>the most highly paid job of someone's life, probably, But

0:47:21.560 --> 0:47:23.480
<v Speaker 6>you know, there's so much you can do that makes

0:47:23.560 --> 0:47:27.640
<v Speaker 6>work an enjoyable place to come to and meaningful and purposeful.

0:47:27.680 --> 0:47:30.360
<v Speaker 6>And I think those are the things, honestly that you know,

0:47:31.080 --> 0:47:32.080
<v Speaker 6>make life worth living.

0:47:32.239 --> 0:47:33.920
<v Speaker 10>One of the things that I really liked about your

0:47:33.920 --> 0:47:36.000
<v Speaker 10>book and your own story as well as You're talking

0:47:36.000 --> 0:47:39.600
<v Speaker 10>about wanting to fall in love with work, and do

0:47:39.640 --> 0:47:41.359
<v Speaker 10>you think that we need to be in love with

0:47:41.360 --> 0:47:43.360
<v Speaker 10>what we do in order to succeed.

0:47:43.920 --> 0:47:46.400
<v Speaker 6>I mean, in my experience, yes, I mean, you know,

0:47:46.520 --> 0:47:48.319
<v Speaker 6>I'm really smart and I was working as a lure

0:47:48.360 --> 0:47:50.280
<v Speaker 6>and I got fired. And I don't think it's an accident.

0:47:51.040 --> 0:47:53.080
<v Speaker 6>I found it very hard to be good at something

0:47:53.120 --> 0:47:56.920
<v Speaker 6>that I didn't like doing, you know, versus something I'm

0:47:56.960 --> 0:48:01.360
<v Speaker 6>passionate about. You know, my my worst days as an

0:48:01.480 --> 0:48:04.160
<v Speaker 6>entrepreneur have been better than my best days as a lawyer.

0:48:04.320 --> 0:48:06.640
<v Speaker 6>But you know, I think, I think it's a real gift,

0:48:06.880 --> 0:48:08.960
<v Speaker 6>you know, to wake up and enjoy going to work.

0:48:09.000 --> 0:48:11.480
<v Speaker 6>And it's one I didn't, you know, previous to starting

0:48:11.520 --> 0:48:13.920
<v Speaker 6>my own restaurant think was possible. So I guess I

0:48:14.000 --> 0:48:16.000
<v Speaker 6>just wanted to communicate people to people that I do

0:48:16.040 --> 0:48:18.960
<v Speaker 6>think it's possible, and I try to give them tips

0:48:18.960 --> 0:48:21.080
<v Speaker 6>and tools for, you know, how to find that passion

0:48:21.120 --> 0:48:23.600
<v Speaker 6>within yourself, how to pursue it, how to create spaces

0:48:23.640 --> 0:48:27.200
<v Speaker 6>where other people can't to Because I think Honestly, we

0:48:27.280 --> 0:48:29.240
<v Speaker 6>spend more of our lives at work than in almost

0:48:29.239 --> 0:48:31.839
<v Speaker 6>anything else, and we don't enjoy it. Like what are

0:48:31.840 --> 0:48:32.399
<v Speaker 6>we doing here?

0:48:32.560 --> 0:48:34.520
<v Speaker 2>I would certainly say yes. It's one of the pieces

0:48:34.520 --> 0:48:36.600
<v Speaker 2>of advice my dad Kate gave to me growing up, like,

0:48:36.680 --> 0:48:38.680
<v Speaker 2>find something you love to do. And I remember my

0:48:38.719 --> 0:48:40.400
<v Speaker 2>first job in journalism. I had to be in it,

0:48:40.520 --> 0:48:43.400
<v Speaker 2>like the wee hours made maybe fourteen fifteen thousand dollars,

0:48:43.840 --> 0:48:47.400
<v Speaker 2>had to borrow money from my father and mother to

0:48:47.440 --> 0:48:49.840
<v Speaker 2>buy a car. Use car for four thousand dollars, I

0:48:49.880 --> 0:48:52.000
<v Speaker 2>can get into New York City because there was no

0:48:52.120 --> 0:48:55.080
<v Speaker 2>mass transportation, but it was I knew It's what I

0:48:55.120 --> 0:48:57.120
<v Speaker 2>wanted to do, and it's amazing. Like right, when you

0:48:57.160 --> 0:48:59.719
<v Speaker 2>find something you want to do. Having said that, you

0:48:59.760 --> 0:49:02.560
<v Speaker 2>also a right to create anything new of value. You

0:49:02.600 --> 0:49:04.879
<v Speaker 2>always have to be willing to fail upward, to make

0:49:04.920 --> 0:49:07.400
<v Speaker 2>mistakes and get a little better every time. This philosophy

0:49:07.719 --> 0:49:10.600
<v Speaker 2>had worked for you, for me, you with everything from

0:49:10.640 --> 0:49:14.759
<v Speaker 2>adding new menu items to refining management philosophies. But something

0:49:14.760 --> 0:49:17.600
<v Speaker 2>about experimenting with people's safety at work felt too important

0:49:17.600 --> 0:49:18.520
<v Speaker 2>to fail upward.

0:49:19.000 --> 0:49:22.560
<v Speaker 6>That's important, Yeah, I mean most of the book is

0:49:22.800 --> 0:49:25.160
<v Speaker 6>sort of ridiculous stories about you know, what are the

0:49:25.200 --> 0:49:27.560
<v Speaker 6>ways that we felt before we found systems that worked.

0:49:27.600 --> 0:49:30.000
<v Speaker 6>And I was pretty terrified of doing that with our

0:49:30.080 --> 0:49:32.520
<v Speaker 6>harassment system. But the truth is, there is no other

0:49:32.560 --> 0:49:35.879
<v Speaker 6>way to create something that doesn't yet exist. So we did,

0:49:35.960 --> 0:49:38.799
<v Speaker 6>and I tried to put in our mistakes so that

0:49:38.840 --> 0:49:40.399
<v Speaker 6>other people don't need to make them too.

0:49:40.840 --> 0:49:43.879
<v Speaker 10>I really, I really enjoyed how honest you were about this, because,

0:49:43.920 --> 0:49:46.040
<v Speaker 10>you know, having when you have a non linear career

0:49:46.040 --> 0:49:48.400
<v Speaker 10>path moving out of things, that can be difficult to

0:49:48.440 --> 0:49:50.320
<v Speaker 10>be honest about the stuff that doesn't work. You know,

0:49:50.400 --> 0:49:52.560
<v Speaker 10>when you've invested, for example, a lot of money and

0:49:52.600 --> 0:49:56.759
<v Speaker 10>going to law school, you know that's got to hurt, right,

0:49:56.800 --> 0:49:58.800
<v Speaker 10>And I wonder do you take things from your legal

0:49:58.800 --> 0:50:01.040
<v Speaker 10>career into what you're doing now? Are there elements of

0:50:01.040 --> 0:50:03.400
<v Speaker 10>what you learned in law school and maybe what you

0:50:03.480 --> 0:50:05.839
<v Speaker 10>learned from working in the industry as well, that are

0:50:05.880 --> 0:50:07.439
<v Speaker 10>relevant to your job now?

0:50:07.760 --> 0:50:09.520
<v Speaker 6>You know, Actually, one of the most helpful things that

0:50:09.560 --> 0:50:12.480
<v Speaker 6>I took from my legal career into being an entrepreneur

0:50:12.600 --> 0:50:17.000
<v Speaker 6>was actually how we deal with discipline. I had been

0:50:17.040 --> 0:50:19.040
<v Speaker 6>really interested in this question because I feel like it's

0:50:19.080 --> 0:50:23.600
<v Speaker 6>pretty ineffective in most workplaces. And I had worked all

0:50:23.600 --> 0:50:26.960
<v Speaker 6>through law school at a district attorney's office, actually Kamala

0:50:27.000 --> 0:50:29.960
<v Speaker 6>Harris's office when she was d of San Francisco. But

0:50:31.000 --> 0:50:33.080
<v Speaker 6>so I was very interested in, like what are different,

0:50:34.680 --> 0:50:37.239
<v Speaker 6>you know, ways that we approach punishment. And we ended

0:50:37.320 --> 0:50:40.640
<v Speaker 6>up at my restaurant, Homeroom adopting a system that I

0:50:40.640 --> 0:50:44.040
<v Speaker 6>had seen used in the criminal justice system called restorative justice. So,

0:50:44.719 --> 0:50:47.120
<v Speaker 6>you know, most stuff at work, when someone screws up,

0:50:47.280 --> 0:50:49.360
<v Speaker 6>you just get punished, You maybe get a write up,

0:50:49.400 --> 0:50:51.680
<v Speaker 6>you maybe get doct shifts, you know, things like that.

0:50:51.880 --> 0:50:54.600
<v Speaker 6>And with restorative justice, the idea is actually it's not

0:50:54.640 --> 0:50:56.600
<v Speaker 6>to punish people, but to make it right. And so

0:50:57.400 --> 0:50:59.960
<v Speaker 6>we started shifting from like punishing people when they screw

0:51:00.239 --> 0:51:04.200
<v Speaker 6>up to you know, walking them through this restorative model

0:51:04.400 --> 0:51:06.560
<v Speaker 6>of figuring out how to make it right with staff,

0:51:06.640 --> 0:51:10.319
<v Speaker 6>you know, like how to you know, apologize, like do

0:51:10.440 --> 0:51:13.520
<v Speaker 6>nice things, fix it with the customer, you know, help

0:51:13.560 --> 0:51:16.120
<v Speaker 6>your manager, like really make it right with all the

0:51:16.160 --> 0:51:19.759
<v Speaker 6>people affected by their behavior. And it was a real

0:51:19.800 --> 0:51:22.240
<v Speaker 6>sea change for us, you know, it was really helpful.

0:51:22.280 --> 0:51:24.759
<v Speaker 2>Aaron, you dropped something like an elephant in the living room.

0:51:24.800 --> 0:51:26.480
<v Speaker 2>We have to ask you so you worked with Kamala

0:51:26.520 --> 0:51:28.920
<v Speaker 2>Harris or it sounds like you have some experience what

0:51:28.920 --> 0:51:31.920
<v Speaker 2>what would you what do you think some our audience

0:51:32.480 --> 0:51:34.680
<v Speaker 2>in your experience with with working with her or dealing

0:51:34.680 --> 0:51:36.680
<v Speaker 2>with her or talking with her that you think is

0:51:36.719 --> 0:51:37.320
<v Speaker 2>worth sharing.

0:51:37.560 --> 0:51:39.960
<v Speaker 6>Oh gosh, I mean I do think you know she was.

0:51:40.520 --> 0:51:42.239
<v Speaker 6>I mean I had worked for her because I was

0:51:42.280 --> 0:51:44.279
<v Speaker 6>really drawn to she was doing stuff that at the

0:51:44.320 --> 0:51:49.359
<v Speaker 6>time was considered pretty out there, and you know, so yeah,

0:51:49.400 --> 0:51:52.880
<v Speaker 6>I have tremendous, tremendous respect for her, and you know

0:51:53.040 --> 0:51:55.480
<v Speaker 6>fun that she's running for president right now. So I

0:51:56.040 --> 0:51:58.759
<v Speaker 6>guess I just say I think I really respect that

0:51:58.800 --> 0:52:01.560
<v Speaker 6>she has tried things other people weren't willing to do. Frankly,

0:52:01.600 --> 0:52:03.480
<v Speaker 6>at the time, I don't think she gets much credit

0:52:03.520 --> 0:52:06.680
<v Speaker 6>for that, but she's an innovative prosecutor and she's good

0:52:06.680 --> 0:52:07.200
<v Speaker 6>at what she did.

0:52:07.280 --> 0:52:07.480
<v Speaker 8>Well.

0:52:07.480 --> 0:52:09.400
<v Speaker 2>Be sure to keep us up to date on what

0:52:09.440 --> 0:52:12.359
<v Speaker 2>you do with Homeroom, especially if you expanded out and grow.

0:52:12.400 --> 0:52:15.200
<v Speaker 2>And we love talking to certainly small business owners. But

0:52:15.280 --> 0:52:17.520
<v Speaker 2>your path has really been an interesting one and thanks

0:52:17.560 --> 0:52:21.040
<v Speaker 2>for sharing it. Aaron Wade, chef and entrepreneur. I guess

0:52:21.040 --> 0:52:24.120
<v Speaker 2>I can say also lawyer her former lawyer. Her book

0:52:24.160 --> 0:52:26.320
<v Speaker 2>is The Mac and Cheese Millionaire, Building a Better Business

0:52:26.320 --> 0:52:34.640
<v Speaker 2>by Thinking Outside the Box. Joining us from Oakland, California.

0:52:35.080 --> 0:52:38.919
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Listen live

0:52:39.040 --> 0:52:41.839
<v Speaker 1>each weekday starting at two pm Eastern on Apple Car

0:52:41.960 --> 0:52:44.920
<v Speaker 1>Play and Android Auto with the Bloomberg Business App. You

0:52:44.960 --> 0:52:48.239
<v Speaker 1>can also listen live on Amazon Alexa from our flagship

0:52:48.280 --> 0:52:52.080
<v Speaker 1>New York station, Just Say Alexa Play Bloomberg eleven thirty.

0:52:53.080 --> 0:52:55.200
<v Speaker 2>When it comes to foreign policy, the United States has

0:52:55.200 --> 0:52:57.840
<v Speaker 2>sought to cultivate a deeper partnership with India as a

0:52:57.880 --> 0:53:01.600
<v Speaker 2>bulwark against a more assertive China. Well, India has sought

0:53:01.600 --> 0:53:05.960
<v Speaker 2>greater US investment and deeper cooperation and technology sharing and defense.

0:53:06.520 --> 0:53:09.520
<v Speaker 3>It makes sense considering they're about four point eight million

0:53:09.560 --> 0:53:12.319
<v Speaker 3>Indian Americans in the US. That's according to data from

0:53:12.320 --> 0:53:15.800
<v Speaker 3>the US Census Bureau. Indian Americans account for twenty percent

0:53:15.800 --> 0:53:19.319
<v Speaker 3>of the nation's Asian American population overall, and about two

0:53:19.400 --> 0:53:22.680
<v Speaker 3>thirds of Indian Americans are immigrants, while thirty four percent

0:53:22.880 --> 0:53:26.279
<v Speaker 3>are US born. Also, around half of Indian Americans live

0:53:26.280 --> 0:53:30.439
<v Speaker 3>in just four states California, Texas, New Jersey, and New York.

0:53:30.560 --> 0:53:32.960
<v Speaker 2>Well, reaching out to this community, one smooth cup of

0:53:33.040 --> 0:53:36.400
<v Speaker 2>chai at a time. Are actor and comedian Hassan Minaj

0:53:36.560 --> 0:53:40.120
<v Speaker 2>along with Any Sanyel, who co founded Kolkata Chai, along

0:53:40.120 --> 0:53:42.920
<v Speaker 2>with his brother Ion Bloomberg's Matt Miller joining me in

0:53:42.920 --> 0:53:44.120
<v Speaker 2>this conversation as well.

0:53:44.560 --> 0:53:47.000
<v Speaker 11>Yeah, so five years ago, my brother and I decided

0:53:47.040 --> 0:53:50.280
<v Speaker 11>to do the craziest thing possible, which is bring authentic

0:53:50.360 --> 0:53:52.920
<v Speaker 11>chai to America. We grew up being able to travel

0:53:52.960 --> 0:53:55.160
<v Speaker 11>back to India a lot, and you know, New York City,

0:53:55.200 --> 0:53:57.960
<v Speaker 11>you can find anything you want to eat and drink,

0:53:58.000 --> 0:53:59.480
<v Speaker 11>but it was really hard to find a good cup

0:53:59.480 --> 0:54:01.719
<v Speaker 11>of chai. So that's where we started. We opened six

0:54:01.760 --> 0:54:04.760
<v Speaker 11>months before the pandemic. We bootstrapped our first cafe location,

0:54:04.840 --> 0:54:08.000
<v Speaker 11>which I don't recommend, but five years later we are

0:54:08.000 --> 0:54:10.040
<v Speaker 11>at three locations. We just brought on, you know, one

0:54:10.080 --> 0:54:13.560
<v Speaker 11>of the more generational talents in this country to join

0:54:13.600 --> 0:54:14.920
<v Speaker 11>the business, and we're super excited.

0:54:14.920 --> 0:54:16.520
<v Speaker 2>How said, how did you get involved in it?

0:54:16.600 --> 0:54:18.600
<v Speaker 12>So funny enough, I had heard about the cafe for

0:54:18.640 --> 0:54:21.759
<v Speaker 12>a long time. Getting a great cup of chai is

0:54:22.440 --> 0:54:24.760
<v Speaker 12>kind of a somewhat of a secret in our community.

0:54:24.800 --> 0:54:26.919
<v Speaker 12>You talk about where you can get a great cup.

0:54:27.520 --> 0:54:30.359
<v Speaker 12>I had heard about the cafe over in Nolita, and then,

0:54:30.440 --> 0:54:33.319
<v Speaker 12>funny enough, my wife put me onto it. I get

0:54:33.320 --> 0:54:35.279
<v Speaker 12>back home, I opened one of our drawers and it's

0:54:35.280 --> 0:54:38.520
<v Speaker 12>full filled with KCC. Seriously, yeah, she goes, have you

0:54:38.560 --> 0:54:41.160
<v Speaker 12>had Colcutta chain? And I go, yeah, I've heard about it?

0:54:41.239 --> 0:54:44.160
<v Speaker 12>Is it the real deal? And it became Bena approved

0:54:44.200 --> 0:54:46.520
<v Speaker 12>and therefore it became Hasan approved. And then I went

0:54:46.560 --> 0:54:49.520
<v Speaker 12>down to the location their location, they're celebrating their five

0:54:49.560 --> 0:54:51.920
<v Speaker 12>year anniversary this week, but I went down to the

0:54:51.960 --> 0:54:54.959
<v Speaker 12>Nolita location and I saw the community that they've built.

0:54:54.960 --> 0:54:57.360
<v Speaker 12>They now have three cafes, and of course I wass

0:54:57.360 --> 0:54:59.760
<v Speaker 12>have the incredible DDC business and they've built this amazing

0:55:00.000 --> 0:55:04.440
<v Speaker 12>omnichannel platform. You know, Annie got to chatting and a

0:55:04.480 --> 0:55:07.279
<v Speaker 12>lot of times, you know, celebrities, we get asked to

0:55:07.320 --> 0:55:12.080
<v Speaker 12>participate and hey, you should endorse this product. And what

0:55:12.120 --> 0:55:14.160
<v Speaker 12>they'll do is they'll they'll use your name and likeness

0:55:14.160 --> 0:55:17.440
<v Speaker 12>and they'll white label you with some commodity tequila sneakers

0:55:17.480 --> 0:55:18.399
<v Speaker 12>T shirts and that's great.

0:55:18.920 --> 0:55:20.919
<v Speaker 13>Or you like drink it on the Patriot Act, sure,

0:55:21.080 --> 0:55:23.520
<v Speaker 13>or yeah yeah, show yeah, or you talk about the

0:55:23.560 --> 0:55:25.600
<v Speaker 13>Samsung Galaxy Z Full three by Frizon five G the

0:55:25.640 --> 0:55:26.920
<v Speaker 13>fastest five G network available.

0:55:27.000 --> 0:55:30.879
<v Speaker 12>Right, I've done that commercial, but this is different. This

0:55:30.920 --> 0:55:35.120
<v Speaker 12>is something where I genuinely loved the brand. I loved

0:55:35.120 --> 0:55:39.080
<v Speaker 12>what they had been building, and I wanted to authentically

0:55:39.280 --> 0:55:42.560
<v Speaker 12>tell our story through t is one of the largest

0:55:42.560 --> 0:55:45.560
<v Speaker 12>markets that's growing right now, and getting a great cup

0:55:45.600 --> 0:55:48.640
<v Speaker 12>of chai has been something that in our community we've

0:55:48.640 --> 0:55:51.600
<v Speaker 12>always wanted and they really cracked the code, not only

0:55:51.600 --> 0:55:53.640
<v Speaker 12>just from their brick and mortar business, but the fact

0:55:53.680 --> 0:55:56.400
<v Speaker 12>that they broke the code with the massolid chi concentrate.

0:55:56.760 --> 0:55:58.680
<v Speaker 12>So when I was having that great cup of tea

0:55:59.560 --> 0:56:01.640
<v Speaker 12>at their location and Nolita, I was like, wait, this

0:56:01.760 --> 0:56:04.239
<v Speaker 12>same cup can be here in New York City. I

0:56:04.239 --> 0:56:06.239
<v Speaker 12>can have it in the Midwest, you know, you can

0:56:06.280 --> 0:56:08.799
<v Speaker 12>have it wherever across the country. Which is which was like?

0:56:08.880 --> 0:56:09.600
<v Speaker 12>That was?

0:56:09.480 --> 0:56:14.000
<v Speaker 13>That was My good friend Kritty Gupta used to make

0:56:14.080 --> 0:56:17.759
<v Speaker 13>me chy and bring it into work, and then unfortunately

0:56:17.800 --> 0:56:20.400
<v Speaker 13>she was transferred to London. So now like I'm in

0:56:20.400 --> 0:56:24.080
<v Speaker 13>the market, what is the secret to making it really

0:56:24.120 --> 0:56:24.720
<v Speaker 13>truly authentic?

0:56:24.880 --> 0:56:26.120
<v Speaker 12>H what's the coca cola recipe?

0:56:26.280 --> 0:56:26.480
<v Speaker 8>Yeah?

0:56:26.560 --> 0:56:28.760
<v Speaker 11>I wish I could no the secret is is my brother.

0:56:28.800 --> 0:56:30.960
<v Speaker 11>He's the head chef, and he's figured out the perfect

0:56:30.960 --> 0:56:33.280
<v Speaker 11>blend of tea, spice and a little bit of sugar

0:56:33.560 --> 0:56:36.400
<v Speaker 11>to get that sweet and spicy balance. We sourced all

0:56:36.440 --> 0:56:39.240
<v Speaker 11>of our tea from legacy tea estates in Assam in India.

0:56:39.320 --> 0:56:42.200
<v Speaker 11>So this is where one hundred years ago they planted

0:56:42.200 --> 0:56:44.320
<v Speaker 11>t two hundred years ago they started planting tea, and

0:56:44.360 --> 0:56:46.960
<v Speaker 11>so all of our our product is coming from that region.

0:56:47.040 --> 0:56:50.680
<v Speaker 11>So we're talking about the most authentic, you know, unfiltered

0:56:50.680 --> 0:56:51.640
<v Speaker 11>product that you can find.

0:56:51.800 --> 0:56:53.840
<v Speaker 12>What Paris is for fashion, I would say Assam is

0:56:53.880 --> 0:56:54.360
<v Speaker 12>for tea.

0:56:54.800 --> 0:56:55.480
<v Speaker 4>Would you agree with that?

0:56:55.600 --> 0:56:55.839
<v Speaker 14>Honey?

0:56:55.880 --> 0:56:57.719
<v Speaker 2>How big is the market? I have a daughter who

0:56:57.760 --> 0:57:00.840
<v Speaker 2>loves it. Was in Tanzania, brought it back, loved it,

0:57:00.920 --> 0:57:02.759
<v Speaker 2>loved it, loved it. So tell me how big the

0:57:02.840 --> 0:57:04.440
<v Speaker 2>market is and tell us a little bit about the business.

0:57:04.600 --> 0:57:04.839
<v Speaker 7>Yeah.

0:57:04.840 --> 0:57:07.560
<v Speaker 11>So in the US, the package teap business market is

0:57:07.600 --> 0:57:11.040
<v Speaker 11>about a fifteen billion dollar category, but it's growing slowly

0:57:11.080 --> 0:57:13.239
<v Speaker 11>because tea is a little bit sleepy. However, you have

0:57:13.320 --> 0:57:15.880
<v Speaker 11>these modern formats like macha, which is actually growing at

0:57:15.880 --> 0:57:18.680
<v Speaker 11>a ten percent kagger and so we see ourselves as

0:57:18.680 --> 0:57:20.960
<v Speaker 11>that next iteration of Macha. You mentioned, you know, the

0:57:21.080 --> 0:57:24.480
<v Speaker 11>growing Asian American population in this country, and that is

0:57:24.560 --> 0:57:26.840
<v Speaker 11>fueling this need for people to want to have the

0:57:26.880 --> 0:57:29.320
<v Speaker 11>real thing. We don't want to go to you know,

0:57:29.400 --> 0:57:31.680
<v Speaker 11>the takeout spots, to the fast food spots. We want

0:57:31.760 --> 0:57:34.800
<v Speaker 11>that real, authentic from the source product. And so that's

0:57:34.840 --> 0:57:37.480
<v Speaker 11>really where we're excited about chai as a new category

0:57:37.920 --> 0:57:40.840
<v Speaker 11>and our business. So we've grown three hundred percent year

0:57:40.880 --> 0:57:43.000
<v Speaker 11>over year, so we are on a rocket ship right now.

0:57:43.160 --> 0:57:46.120
<v Speaker 11>Revenue upline revenue, and that's accelerated by our direct to

0:57:46.160 --> 0:57:47.920
<v Speaker 11>consumer business and our e commerce products.

0:57:47.960 --> 0:57:49.880
<v Speaker 2>So we do is that where most of the businesses

0:57:49.880 --> 0:57:50.560
<v Speaker 2>and that's where the.

0:57:50.680 --> 0:57:52.320
<v Speaker 11>That is where most of the revenue is yep. So

0:57:52.360 --> 0:57:55.720
<v Speaker 11>we use our brick and mortar locations as community building

0:57:55.840 --> 0:57:59.240
<v Speaker 11>and product introduction to the market since Child's relatively new,

0:57:59.440 --> 0:58:01.800
<v Speaker 11>and then we celebrate that growth on direct to consumer.

0:58:01.920 --> 0:58:04.600
<v Speaker 11>And so we have a best in class chai mix

0:58:04.600 --> 0:58:06.640
<v Speaker 11>which is like a tea and spice mix, and we

0:58:06.760 --> 0:58:09.560
<v Speaker 11>do a liquid concentrate product which Hussin alluded to as well,

0:58:09.600 --> 0:58:11.680
<v Speaker 11>and you can make chai in thirty seconds at home.

0:58:11.720 --> 0:58:12.640
<v Speaker 11>So we're gonna get you right.

0:58:13.040 --> 0:58:14.960
<v Speaker 12>But what you guys were talking about was exactly the

0:58:15.000 --> 0:58:17.120
<v Speaker 12>problem that they solved. Hey, I had a colleague that

0:58:17.160 --> 0:58:18.600
<v Speaker 12>put me onto this great cup of chi. You know,

0:58:18.640 --> 0:58:20.240
<v Speaker 12>my daughter came back. He give me this great cup

0:58:20.240 --> 0:58:22.640
<v Speaker 12>of chie. And the difficulty has always been is how

0:58:22.640 --> 0:58:25.640
<v Speaker 12>do you pack a package and product this great experience

0:58:25.640 --> 0:58:28.600
<v Speaker 12>that you had somewhere in Tanzania or somewhere in Delhi

0:58:28.720 --> 0:58:31.440
<v Speaker 12>or Mumbai or in Assam, and how do you get.

0:58:31.320 --> 0:58:33.360
<v Speaker 4>It to the break room?

0:58:33.440 --> 0:58:35.280
<v Speaker 13>Yeah, when that had out to go, you don't want

0:58:35.280 --> 0:58:36.960
<v Speaker 13>to go to Starbucks and get the chai tea latte.

0:58:37.040 --> 0:58:39.000
<v Speaker 12>I'm not here to throw in any other places. But

0:58:40.520 --> 0:58:43.000
<v Speaker 12>but what cacc has also done, which is historical, is

0:58:43.000 --> 0:58:47.920
<v Speaker 12>they're the first storefront location for a chai cafe. So

0:58:48.000 --> 0:58:50.840
<v Speaker 12>this this thing that is different. Yeah, that's that's that

0:58:50.880 --> 0:58:54.280
<v Speaker 12>has a deep resonance in our culture. It was usually

0:58:54.320 --> 0:58:56.520
<v Speaker 12>relegated to like a side item that you would get

0:58:56.520 --> 0:58:59.040
<v Speaker 12>at a restaurant. But this is like a true brick

0:58:59.080 --> 0:59:01.760
<v Speaker 12>and mortar store front and an omni channel business.

0:59:01.800 --> 0:59:03.520
<v Speaker 2>What do you do to grow it? So what's the plans?

0:59:03.680 --> 0:59:05.320
<v Speaker 2>Is it more stores, is it more.

0:59:06.600 --> 0:59:07.800
<v Speaker 7>Bring him on to grow right?

0:59:08.480 --> 0:59:10.800
<v Speaker 2>Or do you also like it ends with us.

0:59:10.840 --> 0:59:12.760
<v Speaker 12>It ends with us break a cup of tea in it.

0:59:12.840 --> 0:59:16.120
<v Speaker 12>Yeah yeah, yeah, number one movie in the box office.

0:59:15.400 --> 0:59:18.280
<v Speaker 2>But also like bringing it into other big retail.

0:59:18.080 --> 0:59:18.960
<v Speaker 8>Yeah, no, you nailed it.

0:59:19.000 --> 0:59:20.880
<v Speaker 11>I think right now our growth is happening on direct

0:59:20.880 --> 0:59:22.800
<v Speaker 11>the consumer and e commerce. So that's really where we're

0:59:22.800 --> 0:59:25.360
<v Speaker 11>dialing in new product formats, you know, new ways of

0:59:25.400 --> 0:59:28.040
<v Speaker 11>advertising and telling that story. I think having Huston, you know,

0:59:28.160 --> 0:59:32.240
<v Speaker 11>generational storyteller, bringing Chi to mainstream America through that type

0:59:32.240 --> 0:59:34.720
<v Speaker 11>of format, through that pop culture format, that's what we're

0:59:34.760 --> 0:59:36.840
<v Speaker 11>really excited about. And then to your point about retail

0:59:36.880 --> 0:59:39.600
<v Speaker 11>expansion being in grocery stores, that's the next step for us.

0:59:39.600 --> 0:59:41.400
<v Speaker 11>We want to be accessible to all Americans.

0:59:41.600 --> 0:59:45.680
<v Speaker 12>For me personally, it was about a healthier caffeine alternative

0:59:45.760 --> 0:59:50.320
<v Speaker 12>to coffee. No caffeine, there's no caffeine, but you know, yeah,

0:59:50.320 --> 0:59:52.520
<v Speaker 12>not to get too scientific, but there's l fianine in it,

0:59:52.560 --> 0:59:56.000
<v Speaker 12>which is almost like a like a cleaner, kind of

0:59:56.040 --> 0:59:59.720
<v Speaker 12>healthier sort of kick that you get from Chi. So

0:59:59.840 --> 1:00:03.280
<v Speaker 12>it and also for people who were if coffee's giving

1:00:03.280 --> 1:00:04.680
<v Speaker 12>you a little bit of a rumble in the tumble,

1:00:04.800 --> 1:00:07.200
<v Speaker 12>it's messing with your tummy a little bit chai is

1:00:07.200 --> 1:00:09.480
<v Speaker 12>a great alternative to that, and so for me, I

1:00:09.480 --> 1:00:12.080
<v Speaker 12>think people really want the real thing and they want

1:00:12.120 --> 1:00:14.880
<v Speaker 12>a healthier alternative to coffee or espresso.

1:00:14.960 --> 1:00:17.080
<v Speaker 13>And do you give did you give something to Blake Lively?

1:00:17.160 --> 1:00:19.640
<v Speaker 13>I mean you passing it on to people who aren't Indian.

1:00:19.720 --> 1:00:25.120
<v Speaker 12>You want to me, chai fundamentally is about community, family commiseration.

1:00:25.280 --> 1:00:31.320
<v Speaker 12>It's like intrinsically linked to joy in being together and

1:00:31.360 --> 1:00:34.040
<v Speaker 12>so like to me, the X factor to me was

1:00:34.240 --> 1:00:38.440
<v Speaker 12>why isn't this having it's yerbamate or macha moment? And

1:00:38.480 --> 1:00:40.000
<v Speaker 12>I think it really is about to have that.

1:00:40.040 --> 1:00:41.640
<v Speaker 2>All right, this was almost perfect. It would have been

1:00:41.640 --> 1:00:43.280
<v Speaker 2>perfect if you had brought us a cup.

1:00:43.360 --> 1:00:45.000
<v Speaker 12>But did you want a cup? We could have plugged it.

1:00:45.040 --> 1:00:48.960
<v Speaker 2>I'm just saying, hausin minhaz and anis Sanyelle, thank you

1:00:49.000 --> 1:00:51.280
<v Speaker 2>so much, really appreciate it. Called Katta Chai company. This

1:00:51.400 --> 1:00:51.920
<v Speaker 2>is Bloomberg.

1:00:52.600 --> 1:00:56.160
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

1:00:56.200 --> 1:00:59.400
<v Speaker 1>live weekday afternoons from two to five pm Eastern Listen

1:00:59.440 --> 1:01:01.560
<v Speaker 1>on a book, our play and and broud Auto with

1:01:01.560 --> 1:01:05.800
<v Speaker 1>a Bloomberg Business at or watch us live on YouTube.

1:01:06.080 --> 1:01:08.040
<v Speaker 2>All right, she is definitely one of my all time

1:01:08.040 --> 1:01:10.240
<v Speaker 2>favorite people here, no doubt about it. I know, Matt,

1:01:10.280 --> 1:01:13.720
<v Speaker 2>you think it's you, but it's really Hannah Elliott. She's

1:01:13.720 --> 1:01:17.400
<v Speaker 2>Bloomberg Pursuit's auto columnist who's also a MATS co host

1:01:17.440 --> 1:01:20.120
<v Speaker 2>on the Hot Pursuit podcast. And we've got a lot

1:01:20.160 --> 1:01:20.760
<v Speaker 2>to talk about.

1:01:21.000 --> 1:01:22.000
<v Speaker 8>Yes, where do you want to start?

1:01:22.040 --> 1:01:23.720
<v Speaker 13>I go go because I don't know where do you

1:01:23.760 --> 1:01:26.680
<v Speaker 13>want to start? We had a great time yesterday. We

1:01:26.720 --> 1:01:29.840
<v Speaker 13>record our podcast yesterday, we put it out tomorrow, and

1:01:29.920 --> 1:01:32.720
<v Speaker 13>we talked about a number of things from a car

1:01:32.800 --> 1:01:36.080
<v Speaker 13>show they went to over the weekend, a big a

1:01:36.120 --> 1:01:39.960
<v Speaker 13>big land yacht that I was driving, the Infinity QX eighty,

1:01:40.320 --> 1:01:42.080
<v Speaker 13>and also air fresheners.

1:01:42.440 --> 1:01:43.920
<v Speaker 2>I really want to get to that, but go do

1:01:44.040 --> 1:01:45.520
<v Speaker 2>cars first, Let's talk start.

1:01:45.680 --> 1:01:50.560
<v Speaker 13>Let's talk first about the giant suv that I was driving,

1:01:50.560 --> 1:01:53.600
<v Speaker 13>which I really liked. The Infinity QX eighty. It's all new,

1:01:54.600 --> 1:01:58.520
<v Speaker 13>the twenty twenty five model year, and Hannah's going to

1:01:58.600 --> 1:02:01.160
<v Speaker 13>get it next week. What do you think about these

1:02:01.200 --> 1:02:02.920
<v Speaker 13>giant three row SUVs? Hannah?

1:02:02.960 --> 1:02:03.920
<v Speaker 2>How big is too big?

1:02:04.640 --> 1:02:06.440
<v Speaker 15>I was going to say, I didn't want to interrupt you,

1:02:06.480 --> 1:02:08.760
<v Speaker 15>but I can ask you plenty of questions about it. Matt,

1:02:09.960 --> 1:02:12.640
<v Speaker 15>You know my my question is, and this is going

1:02:12.680 --> 1:02:15.400
<v Speaker 15>off of our conversation that we had on our podcast.

1:02:15.920 --> 1:02:19.320
<v Speaker 15>You mentioned that you thought it looked great and then

1:02:19.360 --> 1:02:24.080
<v Speaker 15>you kind of compared the interior to a Chevy and

1:02:24.200 --> 1:02:26.560
<v Speaker 15>I know that, and I know that this suv costs

1:02:26.560 --> 1:02:31.040
<v Speaker 15>about one hundred thousand dollars. So my question to you

1:02:31.240 --> 1:02:33.760
<v Speaker 15>is is it worth it? Would you spend if you

1:02:33.800 --> 1:02:37.080
<v Speaker 15>had one hundred grand to spend on a big, big suv,

1:02:37.800 --> 1:02:40.080
<v Speaker 15>would you buy this one's sheet?

1:02:40.360 --> 1:02:42.280
<v Speaker 14>So no, I mean it's a good point.

1:02:42.400 --> 1:02:45.560
<v Speaker 13>What I meant was that the infotainment system is a

1:02:45.640 --> 1:02:50.040
<v Speaker 13>Google based system. Okay, so that's a platform that they used,

1:02:50.080 --> 1:02:54.800
<v Speaker 13>and Chevy also had that in my Silverado. And but

1:02:54.880 --> 1:02:58.680
<v Speaker 13>I would compare this more to Chevy's Cadillac brand and

1:02:58.720 --> 1:03:02.040
<v Speaker 13>their Escalade. So this is an Escalade range Rover competitor.

1:03:02.920 --> 1:03:04.960
<v Speaker 13>If I was looking at one of those cars in

1:03:05.000 --> 1:03:08.880
<v Speaker 13>the same price, I might consider this as an alternative.

1:03:09.360 --> 1:03:12.200
<v Speaker 13>The problem is that you can get a range Rover

1:03:12.480 --> 1:03:14.760
<v Speaker 13>with a V eight, You can get an Escalade with

1:03:14.800 --> 1:03:17.480
<v Speaker 13>a V eight. You cannot get the QX eighty with

1:03:17.480 --> 1:03:19.280
<v Speaker 13>a V eight. It only comes with a twin turbo

1:03:19.640 --> 1:03:23.200
<v Speaker 13>V six, and it's the same problem that Ford and

1:03:23.240 --> 1:03:26.600
<v Speaker 13>Lincoln have. They just don't put out big V eight's

1:03:26.600 --> 1:03:29.240
<v Speaker 13>in their giant trucks anymore. And in something that weighs

1:03:29.280 --> 1:03:32.800
<v Speaker 13>like eight pounds, you really need V power for me

1:03:32.880 --> 1:03:33.520
<v Speaker 13>to enjoy it.

1:03:34.160 --> 1:03:36.240
<v Speaker 15>I have to say, I don't know if it's a

1:03:36.240 --> 1:03:40.480
<v Speaker 15>problem for them, Matt, because they're saving emissions, they're probably

1:03:40.520 --> 1:03:43.760
<v Speaker 15>getting a little bit better fuel efficiency. And frankly, I

1:03:43.800 --> 1:03:46.880
<v Speaker 15>don't know if you know the mom's buying these family hollers,

1:03:46.920 --> 1:03:48.840
<v Speaker 15>do they care that it's a V eight Because if

1:03:48.920 --> 1:03:52.200
<v Speaker 15>I don't think I would.

1:03:51.160 --> 1:03:53.280
<v Speaker 2>The seats comfy? Can I put the kids in the

1:03:53.320 --> 1:03:56.040
<v Speaker 2>back and well, this thing pack them in for soccer?

1:03:56.120 --> 1:03:58.280
<v Speaker 13>Not only do I think it looks beautiful, but the

1:03:58.320 --> 1:04:02.400
<v Speaker 13>interior is very comfortable, and the leather is super nice,

1:04:02.440 --> 1:04:03.840
<v Speaker 13>and the color, the design.

1:04:03.640 --> 1:04:05.120
<v Speaker 2>Is what's the mileage on that puppy?

1:04:05.200 --> 1:04:09.840
<v Speaker 13>It's sixteen city nineteen highway, so it is one mile

1:04:09.960 --> 1:04:12.760
<v Speaker 13>per gallon better than the V eight that they had

1:04:12.840 --> 1:04:15.840
<v Speaker 13>last year, which doesn't matter to you, but I guess

1:04:16.080 --> 1:04:18.720
<v Speaker 13>if they sell, you know, one hundred thousand of them.

1:04:18.560 --> 1:04:18.920
<v Speaker 2>Then it does.

1:04:19.000 --> 1:04:21.920
<v Speaker 15>Here's another question for you, Matt. How did you feel

1:04:22.000 --> 1:04:25.240
<v Speaker 15>pulling into sort of a posh event in the Hamptons

1:04:25.760 --> 1:04:28.040
<v Speaker 15>in an infinity, did you feel like you were sort

1:04:28.080 --> 1:04:31.160
<v Speaker 15>of on par with the Ferraris and Lamborghinis or no.

1:04:31.320 --> 1:04:35.000
<v Speaker 13>No, obviously not on par with the Ferraris and Lamborghinis.

1:04:35.000 --> 1:04:36.760
<v Speaker 13>There were a ton of them at the bridge, which

1:04:36.800 --> 1:04:40.640
<v Speaker 13>is the show Carsho. I went to, you know, everybody

1:04:41.040 --> 1:04:43.520
<v Speaker 13>like a Rolls Royster or Maserati. But you know other

1:04:43.560 --> 1:04:46.959
<v Speaker 13>people were driving in the Defenders and the Broncos, and yes,

1:04:47.080 --> 1:04:51.640
<v Speaker 13>in the big Escalades and range Rovers. I did feel okay,

1:04:51.720 --> 1:04:55.320
<v Speaker 13>you know, it looks the part, so it didn't bother me.

1:04:56.280 --> 1:04:58.160
<v Speaker 13>It also smelled pretty good.

1:04:58.480 --> 1:05:02.440
<v Speaker 2>Nice, thank you. Well, can we talk about these air fresheners,

1:05:02.480 --> 1:05:05.080
<v Speaker 2>because I do care about I have something that I

1:05:05.120 --> 1:05:06.760
<v Speaker 2>spray in my car like every time I go in.

1:05:06.840 --> 1:05:08.040
<v Speaker 2>It's like some organics.

1:05:08.160 --> 1:05:11.440
<v Speaker 13>Also, Carol smells delicious right now, I will tell you.

1:05:12.000 --> 1:05:14.000
<v Speaker 15>I believe it.

1:05:14.000 --> 1:05:18.280
<v Speaker 2>It's actually a brand that you to fatigue, which I'd

1:05:18.320 --> 1:05:19.920
<v Speaker 2>never heard of before I read your story.

1:05:20.280 --> 1:05:20.600
<v Speaker 8>Hannah.

1:05:20.680 --> 1:05:23.400
<v Speaker 13>So your point on air fresheners is the cheap ones

1:05:23.440 --> 1:05:26.400
<v Speaker 13>are the worst, right, but the expensive wonder wait, the

1:05:26.440 --> 1:05:27.479
<v Speaker 13>hanging tree is.

1:05:27.400 --> 1:05:31.480
<v Speaker 15>Not good, you know, what news flash, the hanging tree

1:05:31.640 --> 1:05:34.959
<v Speaker 15>is not good and anything you buy in your gas

1:05:35.040 --> 1:05:38.040
<v Speaker 15>station is probably not going to be good. And there's

1:05:38.080 --> 1:05:40.960
<v Speaker 15>a specific and very real reason for that, which is

1:05:42.120 --> 1:05:46.400
<v Speaker 15>they those are made with the least expensive materials and

1:05:46.440 --> 1:05:51.320
<v Speaker 15>with the least expensive chemicals. And what we found we

1:05:52.120 --> 1:05:58.000
<v Speaker 15>hear At Pursuits, tested ten different air fresheners for the car,

1:05:58.680 --> 1:06:01.200
<v Speaker 15>and we did found that find there's a direct correlation

1:06:01.280 --> 1:06:05.360
<v Speaker 15>between price and quality, and the more you pay, you're

1:06:05.360 --> 1:06:10.240
<v Speaker 15>going to tend to get a better, less nauseating air freadare.

1:06:11.720 --> 1:06:14.360
<v Speaker 15>But the bigger thing that I found with this story,

1:06:14.400 --> 1:06:16.680
<v Speaker 15>which to me was really interesting, because we all have

1:06:16.920 --> 1:06:19.840
<v Speaker 15>very specific ideas about what kind of smell we want

1:06:19.880 --> 1:06:23.160
<v Speaker 15>in our car. I think everybody wants the new car smell,

1:06:23.240 --> 1:06:27.560
<v Speaker 15>of course, and then once that wears off, it's like

1:06:27.760 --> 1:06:32.040
<v Speaker 15>you don't want curry or fish or like like smells

1:06:32.040 --> 1:06:34.720
<v Speaker 15>that are great to eat but not necessarily to drive. With.

1:06:36.800 --> 1:06:40.160
<v Speaker 15>The idea is this is a really big open space

1:06:40.240 --> 1:06:44.360
<v Speaker 15>that automakers and large fragrance brands haven't really attacked in

1:06:44.440 --> 1:06:48.760
<v Speaker 15>the past, but they're starting to very smart and yes

1:06:48.840 --> 1:06:53.080
<v Speaker 15>they're smart. It's so there are ten including some offerings

1:06:53.120 --> 1:06:57.160
<v Speaker 15>from Diptique, some offerings from Frederick mal some offerings from

1:06:57.200 --> 1:07:00.440
<v Speaker 15>Aqua to Parma. There are these known fragrance companies that

1:07:00.480 --> 1:07:03.880
<v Speaker 15>are starting to develop freshnurs for your car. But also

1:07:03.920 --> 1:07:06.439
<v Speaker 15>they could double. A lot of them could double as

1:07:06.560 --> 1:07:13.320
<v Speaker 15>great like things to put in your closet, your linen closet, drawers, handbags,

1:07:13.360 --> 1:07:14.000
<v Speaker 15>that's sort of name.

1:07:14.120 --> 1:07:15.880
<v Speaker 2>I love it, one called sex wax, but we're going

1:07:15.960 --> 1:07:18.520
<v Speaker 2>to leave it on that new mister. Don't touch it.

1:07:18.560 --> 1:07:20.000
<v Speaker 2>Don't touch it, Matthew Miller.

1:07:20.040 --> 1:07:23.960
<v Speaker 15>No, no, no, and that thinks. So many people recommended

1:07:24.040 --> 1:07:24.440
<v Speaker 15>it to me.

1:07:25.280 --> 1:07:26.800
<v Speaker 4>Yeah, and it's bad.

1:07:26.840 --> 1:07:29.320
<v Speaker 2>We got to run. Hanna Elliott, you're the best, Matt Miller,

1:07:29.360 --> 1:07:30.600
<v Speaker 2>thank you so much. We'll see you tomorrow.

1:07:30.800 --> 1:07:32.640
<v Speaker 13>Tune into our podcast Hot Pursuit.

1:07:35.120 --> 1:07:38.640
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

1:07:38.680 --> 1:07:41.920
<v Speaker 1>live weekday afternoons from two to five pm. Easter Listen

1:07:41.960 --> 1:07:42.640
<v Speaker 1>on Apple.

1:07:42.440 --> 1:07:45.160
<v Speaker 4>Car Play and then brought Auto with a Bloomberg.

1:07:44.680 --> 1:07:48.280
<v Speaker 1>Business app, or watch us live on YouTube.

1:07:49.040 --> 1:07:51.720
<v Speaker 2>The Goat selling watches and watching a coffin and dead

1:07:51.760 --> 1:07:54.320
<v Speaker 2>celebrities working again thanks to AI. I guess there's a

1:07:54.360 --> 1:07:55.000
<v Speaker 2>theme there.

1:07:55.160 --> 1:07:56.880
<v Speaker 4>Okay, wait, I'll wait.

1:07:58.560 --> 1:08:01.080
<v Speaker 3>All from our Bloomberg Proceeds Team, a new issue out

1:08:01.120 --> 1:08:03.440
<v Speaker 3>featuring some of the latest and greatest. Here to talk

1:08:03.480 --> 1:08:06.160
<v Speaker 3>about all of it all is the editor of Bloomberg Pursuits,

1:08:06.200 --> 1:08:09.520
<v Speaker 3>Chris Rouser, along with Bloomberg Pursuits columnists who heads up

1:08:09.600 --> 1:08:13.200
<v Speaker 3>our arts and culture coverage, James Tarmi, both joining us

1:08:13.520 --> 1:08:16.679
<v Speaker 3>in the studio. Chris, I gotta tell you, I don't

1:08:16.720 --> 1:08:19.160
<v Speaker 3>think Carol actually believes Tom Brady's the goat.

1:08:19.600 --> 1:08:22.520
<v Speaker 4>And I, okay, I also have like a little.

1:08:22.280 --> 1:08:24.759
<v Speaker 2>You know, there's more than one goat, is my point.

1:08:25.160 --> 1:08:28.200
<v Speaker 2>Serena Williams is a goat, of course, Yeah yeah, yeah, yeah, okay,

1:08:28.280 --> 1:08:29.920
<v Speaker 2>So I didn't were we.

1:08:29.920 --> 1:08:32.320
<v Speaker 16>Operating under the presumption that there was only one goat?

1:08:32.920 --> 1:08:34.160
<v Speaker 4>Carol's across all fields.

1:08:34.200 --> 1:08:36.240
<v Speaker 3>Let's just say Carol doesn't sound like a huge Tom

1:08:36.280 --> 1:08:36.840
<v Speaker 3>Brady fan.

1:08:37.479 --> 1:08:39.559
<v Speaker 14>Get ready for a lot of man.

1:08:40.760 --> 1:08:44.200
<v Speaker 2>He's fine, He's fine, He's fine. All right, moving on,

1:08:44.320 --> 1:08:45.719
<v Speaker 2>moving on, what's up to Chris?

1:08:46.439 --> 1:08:49.200
<v Speaker 16>Well, Tom Brady is selling a lot of his memorabilia

1:08:49.840 --> 1:08:53.519
<v Speaker 16>that is game warn jerseys, helmets.

1:08:53.160 --> 1:08:54.360
<v Speaker 2>And which do they smell like?

1:08:54.439 --> 1:08:54.679
<v Speaker 8>Tom?

1:08:57.200 --> 1:08:58.840
<v Speaker 16>People will pay Actually.

1:08:58.400 --> 1:08:59.960
<v Speaker 2>We just went down a weird street, but go ahea

1:09:00.920 --> 1:09:02.000
<v Speaker 2>and of.

1:09:01.920 --> 1:09:04.479
<v Speaker 16>A special interest to me. He's also selling a bunch

1:09:04.560 --> 1:09:06.200
<v Speaker 16>of very expensive watches.

1:09:06.600 --> 1:09:08.040
<v Speaker 2>He's got quite a collection.

1:09:08.320 --> 1:09:10.880
<v Speaker 3>This do this Nadal watch is pretty cool.

1:09:11.600 --> 1:09:14.320
<v Speaker 16>Yeah, so he has a baby Nadal, which is a

1:09:14.400 --> 1:09:18.240
<v Speaker 16>watch that was made in partnership with Raphael Nadal and

1:09:18.439 --> 1:09:22.000
<v Speaker 16>Reshard Meal. And they're not to everyone's taste, but the

1:09:22.080 --> 1:09:25.799
<v Speaker 16>Reshart Meal watches are. People call them the billionaire's handshake.

1:09:26.200 --> 1:09:29.040
<v Speaker 16>And this one's estimated to sell between three hundred and

1:09:29.120 --> 1:09:32.639
<v Speaker 16>five hundred thousand. It was a colorful kind of watch.

1:09:32.760 --> 1:09:34.160
<v Speaker 2>The one that I really thought is kind of in

1:09:34.200 --> 1:09:36.920
<v Speaker 2>your face is the one that's like Tom Brady like.

1:09:36.920 --> 1:09:40.519
<v Speaker 14>On the dial, well, it literally says Tom Brady in

1:09:40.760 --> 1:09:44.639
<v Speaker 14>diamonds and then there's a seven also on the dial

1:09:45.200 --> 1:09:49.000
<v Speaker 14>to symbolize his seven Super Bowl victories. And that's yours

1:09:49.040 --> 1:09:51.160
<v Speaker 14>for a mere four hundred to eight hundred thousand.

1:09:51.600 --> 1:09:53.599
<v Speaker 16>I think it'll go for more. I mean it's it's

1:09:53.600 --> 1:09:57.439
<v Speaker 16>a custom made royal oak from Odemar Pigue. There are

1:09:57.479 --> 1:10:00.800
<v Speaker 16>like internal chats on the Bloomberg terminal where people talk

1:10:00.840 --> 1:10:04.840
<v Speaker 16>about watches, and they exploded about this because everybody thinks

1:10:04.840 --> 1:10:08.559
<v Speaker 16>it's really horrible and everybody wants to watch to own it. Wow,

1:10:08.840 --> 1:10:14.479
<v Speaker 16>he wore it during his roast his famous Netflix roads. Yeah,

1:10:14.520 --> 1:10:17.519
<v Speaker 16>but it's not clear to me whether he commissioned it

1:10:17.640 --> 1:10:19.240
<v Speaker 16>or someone gave it to him or the company gave it.

1:10:19.600 --> 1:10:21.639
<v Speaker 3>I'm actually surprised Carol wasn't up there roasting him.

1:10:24.720 --> 1:10:26.440
<v Speaker 14>My understanding security.

1:10:26.520 --> 1:10:28.760
<v Speaker 2>Now he commissioned it, commissioned it?

1:10:29.040 --> 1:10:29.200
<v Speaker 5>Yes?

1:10:29.400 --> 1:10:30.120
<v Speaker 2>What does that say?

1:10:30.200 --> 1:10:30.400
<v Speaker 8>Hey?

1:10:30.400 --> 1:10:32.800
<v Speaker 2>What's the market though? For these kinds of watches right now?

1:10:33.000 --> 1:10:37.559
<v Speaker 16>So the watch market at auction and across memorilia generally

1:10:37.640 --> 1:10:41.519
<v Speaker 16>everything is softening, and just secondhand watches in general, which

1:10:41.520 --> 1:10:45.320
<v Speaker 16>were so so hot during the pandemic. Sothebies, who's auctioning

1:10:45.360 --> 1:10:49.160
<v Speaker 16>off this stuff, says that the single owner sales, like

1:10:49.240 --> 1:10:52.200
<v Speaker 16>celebrity owned sales, are still doing well for them, and

1:10:52.240 --> 1:10:56.040
<v Speaker 16>Sylvester Stallone sold some really crazy watches for many millions

1:10:56.080 --> 1:10:59.519
<v Speaker 16>of dollars earlier this year, So this is kind of

1:10:59.560 --> 1:11:02.280
<v Speaker 16>These are special cases that it's really hard to put

1:11:02.280 --> 1:11:05.360
<v Speaker 16>them in the context of the broader collectibles market because

1:11:05.360 --> 1:11:08.240
<v Speaker 16>people love Tom Brady so much, and I honestly think

1:11:08.240 --> 1:11:11.000
<v Speaker 16>these estimates, which are three hundred and five hundred thousand, yeah,

1:11:11.000 --> 1:11:11.559
<v Speaker 16>I think they're low.

1:11:11.640 --> 1:11:14.080
<v Speaker 2>They're also coming straight from him it's not like somebody

1:11:14.080 --> 1:11:16.879
<v Speaker 2>else owned them and they're putting the collection up for sale.

1:11:17.160 --> 1:11:18.439
<v Speaker 4>Why is he getting rid of this stuff?

1:11:18.640 --> 1:11:22.680
<v Speaker 14>Well, I asked that question, and first of all, they

1:11:22.680 --> 1:11:25.720
<v Speaker 14>didn't give me a straight answer. Secondly, there is some

1:11:25.920 --> 1:11:29.439
<v Speaker 14>speculation out there that he is kind of thoughtfully timing

1:11:29.479 --> 1:11:29.960
<v Speaker 14>the market.

1:11:30.120 --> 1:11:31.360
<v Speaker 4>That this is.

1:11:31.880 --> 1:11:35.200
<v Speaker 14>You are actually seeing an uptick, as Chris says, in

1:11:35.320 --> 1:11:38.599
<v Speaker 14>demand for these single owner memorabilia sales, but you're also

1:11:38.640 --> 1:11:43.080
<v Speaker 14>seeing a continued softening of the memorabilia market. So if

1:11:43.080 --> 1:11:45.760
<v Speaker 14>he's able to time this right, I mean, let's put

1:11:45.800 --> 1:11:49.439
<v Speaker 14>it this way. This is not the only watches that

1:11:49.479 --> 1:11:51.880
<v Speaker 14>he has. Yeah, and also these are not the only

1:11:51.960 --> 1:11:54.519
<v Speaker 14>jerseys and helmets that he has. So I think if

1:11:54.520 --> 1:11:58.559
<v Speaker 14>he's able to again this is pure speculation, but kind

1:11:58.560 --> 1:12:00.400
<v Speaker 14>of time the market in a nice way and clean

1:12:00.479 --> 1:12:04.559
<v Speaker 14>ups to the tune of eleven or more million dollars.

1:12:04.720 --> 1:12:06.559
<v Speaker 2>Yeah, one mariecondo, right, Like.

1:12:08.200 --> 1:12:10.559
<v Speaker 16>It's just the time. I think it's like that's why

1:12:10.560 --> 1:12:12.920
<v Speaker 16>I think a sliced salone also sold his watches.

1:12:13.360 --> 1:12:17.160
<v Speaker 2>All right, let's talk about a watch with a coffin.

1:12:17.680 --> 1:12:23.400
<v Speaker 16>Oh yes, so this in Business Week in this last issue,

1:12:23.400 --> 1:12:26.000
<v Speaker 16>we featured a company which I've always thought is very interesting.

1:12:26.120 --> 1:12:29.840
<v Speaker 16>Is called Chrono Swiss and it's an independent Swiss watchmaking brand,

1:12:30.400 --> 1:12:32.600
<v Speaker 16>and it was started in nineteen eighty three during the

1:12:32.640 --> 1:12:36.040
<v Speaker 16>Courtz crisis, which is when battery powered watches began killing

1:12:36.080 --> 1:12:38.840
<v Speaker 16>off all mechanical watches because they were seen as more

1:12:38.880 --> 1:12:41.960
<v Speaker 16>accurate and just more efficient and much more inexpensive. And

1:12:42.040 --> 1:12:44.680
<v Speaker 16>this guy who was working for Hoyer, which is a

1:12:44.680 --> 1:12:46.920
<v Speaker 16>big company, was going to get laid off and the

1:12:46.960 --> 1:12:50.559
<v Speaker 16>company couldn't afford to pay him in his last paycheck,

1:12:50.720 --> 1:12:52.080
<v Speaker 16>and so he said, you know what, just give me

1:12:52.120 --> 1:12:54.639
<v Speaker 16>a bunch of those old mechanical movements, which are the little,

1:12:54.800 --> 1:12:56.720
<v Speaker 16>you know, the engine of a watch, because you don't

1:12:56.720 --> 1:12:59.160
<v Speaker 16>want them anymore. They're they're basically worthless. You're going to

1:12:59.200 --> 1:13:01.759
<v Speaker 16>switch to courts. And so they paid his last paycheck

1:13:01.800 --> 1:13:03.519
<v Speaker 16>in these movements and he went off and started this

1:13:03.560 --> 1:13:05.880
<v Speaker 16>company in his garage in Munich with his wife in

1:13:05.920 --> 1:13:09.320
<v Speaker 16>nineteen eighty three called Chronoswiss, and it was basically focused

1:13:09.320 --> 1:13:13.760
<v Speaker 16>on keeping mechanical watches alive. Now, mechanical watches all these

1:13:13.840 --> 1:13:17.360
<v Speaker 16>years later are very big and they're very brightly colored.

1:13:17.400 --> 1:13:18.000
<v Speaker 4>They're really cool.

1:13:18.080 --> 1:13:21.160
<v Speaker 16>They use all these old watchmaking techniques like yo'she which

1:13:21.200 --> 1:13:26.760
<v Speaker 16>are these like hand carved metal dials, but like bright colors,

1:13:27.640 --> 1:13:32.080
<v Speaker 16>really high tech new chemical vapor deposition to get really

1:13:32.080 --> 1:13:36.880
<v Speaker 16>great color and metallic finishings. And so they make these

1:13:36.920 --> 1:13:40.200
<v Speaker 16>wild watches. And they had a Dracula watch that came

1:13:40.240 --> 1:13:43.120
<v Speaker 16>out this year which I thought was so funny. It's

1:13:43.160 --> 1:13:48.120
<v Speaker 16>eighteen carrot gold, it's grand faux enamel, and if you

1:13:48.240 --> 1:13:50.080
<v Speaker 16>order it, it arrives in a.

1:13:50.040 --> 1:13:52.040
<v Speaker 4>Coffin, like an actual coffin.

1:13:53.200 --> 1:13:54.160
<v Speaker 16>It's a watch size cars.

1:13:54.200 --> 1:13:55.120
<v Speaker 4>Okay, just making sure.

1:13:55.520 --> 1:13:57.800
<v Speaker 3>I just want to make sure before we get to

1:13:57.840 --> 1:14:00.439
<v Speaker 3>some real estate. There's another watch story that I want

1:14:00.439 --> 1:14:04.080
<v Speaker 3>to hit social media. Kind of all over social media

1:14:04.439 --> 1:14:08.160
<v Speaker 3>in recent weeks was the former president and current Republican

1:14:08.200 --> 1:14:12.639
<v Speaker 3>nominee Donald Trump selling one hundred thousand dollars watches, which makes.

1:14:12.439 --> 1:14:14.320
<v Speaker 2>Me wonder if Tom Brady might buy one, because aren't

1:14:14.320 --> 1:14:14.879
<v Speaker 2>they buds?

1:14:15.240 --> 1:14:15.799
<v Speaker 14>No comment?

1:14:15.920 --> 1:14:19.519
<v Speaker 3>Okay, okay, what's up with these watches?

1:14:20.040 --> 1:14:23.320
<v Speaker 16>So Donald Trump? Donald Trump is actually a watch collector.

1:14:23.360 --> 1:14:25.920
<v Speaker 16>He has some nice watches, Vastrond Constantine. I think he

1:14:25.920 --> 1:14:30.200
<v Speaker 16>has a Rolex Protect Philips, and you know he whenever

1:14:30.240 --> 1:14:33.040
<v Speaker 16>he sells stuff, that's kind of like feels like something

1:14:33.080 --> 1:14:36.800
<v Speaker 16>he would wear or do his fans buy it. So

1:14:36.920 --> 1:14:41.360
<v Speaker 16>he started with an independent company. He started he basically

1:14:41.360 --> 1:14:43.880
<v Speaker 16>licensed his name, and they're making a couple of lower

1:14:43.880 --> 1:14:46.479
<v Speaker 16>price watch lines for like five hundred dollars, seven hundred dollars,

1:14:46.720 --> 1:14:49.280
<v Speaker 16>and then some higher price watches for one hundred thousand

1:14:49.280 --> 1:14:52.120
<v Speaker 16>dollars which are solid gold. You can get them in

1:14:52.200 --> 1:14:55.680
<v Speaker 16>rows or yellow gold. And they have a turbion complication,

1:14:55.760 --> 1:14:59.280
<v Speaker 16>which is as a thing that helps the accuracy of timekeeping.

1:14:59.320 --> 1:15:02.840
<v Speaker 16>It's an expense complication to make on a watch. I

1:15:02.880 --> 1:15:05.720
<v Speaker 16>went through and did some comps and it it's not

1:15:06.960 --> 1:15:10.040
<v Speaker 16>it's overpriced probably for what it is, but I really

1:15:10.080 --> 1:15:12.160
<v Speaker 16>think people are people will buy them. There's only they're

1:15:12.160 --> 1:15:14.519
<v Speaker 16>only making like one hundred and forty seven reference to

1:15:14.600 --> 1:15:16.880
<v Speaker 16>him being the going to be one hundred of the

1:15:16.920 --> 1:15:17.959
<v Speaker 16>forty seventh presidents.

1:15:18.920 --> 1:15:20.639
<v Speaker 4>Why why do one hundred and forty seven?

1:15:20.800 --> 1:15:23.280
<v Speaker 14>Yeah, doesn't I sign them?

1:15:23.640 --> 1:15:25.639
<v Speaker 16>He signs them on the back, yep. And they've become

1:15:25.760 --> 1:15:28.400
<v Speaker 16>they all come with a personalized message. And I heard

1:15:28.400 --> 1:15:31.840
<v Speaker 16>from some of our readers that people will definitely be

1:15:31.880 --> 1:15:32.280
<v Speaker 16>buying them.

1:15:32.320 --> 1:15:36.040
<v Speaker 3>Okay, all right, how about from watches to a thirty

1:15:36.160 --> 1:15:40.120
<v Speaker 3>million dollar house a beach front in the oil Nut

1:15:40.160 --> 1:15:46.280
<v Speaker 3>Bay development on Virgin Gorda James because just talking about

1:15:46.400 --> 1:15:51.400
<v Speaker 3>beach Shack at one point it was yeah she she missus.

1:15:51.439 --> 1:15:54.559
<v Speaker 3>Mac was not so happy with the home when they

1:15:54.600 --> 1:15:54.880
<v Speaker 3>bought it.

1:15:54.920 --> 1:15:55.960
<v Speaker 4>Give us the give us the store.

1:15:56.000 --> 1:16:01.080
<v Speaker 14>So this house is currently owned by Mac the former

1:16:01.280 --> 1:16:05.559
<v Speaker 14>chief executive officer of Morgan Stanley, and his wife Christy,

1:16:05.840 --> 1:16:11.120
<v Speaker 14>and they spent a really, really really long time renovating

1:16:11.160 --> 1:16:14.439
<v Speaker 14>this house and they spent a huge amount of money.

1:16:14.520 --> 1:16:18.800
<v Speaker 14>They told me that they spent eighteen million dollars renovating

1:16:18.920 --> 1:16:21.240
<v Speaker 14>the house after they bought it. And it was a

1:16:21.280 --> 1:16:24.560
<v Speaker 14>spec house. It's it's it.

1:16:24.840 --> 1:16:25.080
<v Speaker 8>Yeah.

1:16:25.320 --> 1:16:27.320
<v Speaker 14>So so the houses.

1:16:27.160 --> 1:16:29.479
<v Speaker 2>Was it gut? Did they build what they did gout?

1:16:29.680 --> 1:16:34.040
<v Speaker 14>No? No, they kept the total footprint, They kept the roof,

1:16:34.200 --> 1:16:37.160
<v Speaker 14>and they kept the walls more exterior walls more or less,

1:16:37.560 --> 1:16:40.840
<v Speaker 14>and they just did the inside and really got it

1:16:40.880 --> 1:16:42.840
<v Speaker 14>and they moved windows, they moved doors.

1:16:42.560 --> 1:16:44.400
<v Speaker 3>And while they were doing that, a hurricane came through

1:16:44.400 --> 1:16:46.360
<v Speaker 3>and ripped everything apart and they had to do it again.

1:16:46.439 --> 1:16:50.120
<v Speaker 14>They said to me they had to do reconstruction. Of

1:16:50.160 --> 1:16:53.280
<v Speaker 14>the reconstruction, but you know, it has a lot going

1:16:53.320 --> 1:16:56.719
<v Speaker 14>for it. It's on the beach, it is right near

1:16:57.120 --> 1:17:01.280
<v Speaker 14>this very very exclusive oil Nut Bay development clubs, so

1:17:01.320 --> 1:17:03.040
<v Speaker 14>you have the amenities of it. You can just go

1:17:03.080 --> 1:17:05.680
<v Speaker 14>to the gym, you can play tennis. But it is

1:17:06.160 --> 1:17:10.400
<v Speaker 14>now on sale and you can buy it, or I

1:17:10.439 --> 1:17:14.639
<v Speaker 14>can't buy it, but one can buy it for twenty

1:17:14.720 --> 1:17:16.200
<v Speaker 14>nine point five million dollars.

1:17:16.360 --> 1:17:18.480
<v Speaker 2>Do they make any money on this puppy.

1:17:18.240 --> 1:17:23.120
<v Speaker 14>Well, you know, honestly, I don't think so, because it's

1:17:23.160 --> 1:17:27.920
<v Speaker 14>gonna have cost them basically twenty eight to twenty nine

1:17:27.960 --> 1:17:31.639
<v Speaker 14>million dollars all in and they're selling it for twenty

1:17:31.760 --> 1:17:33.400
<v Speaker 14>nine and a half million dollars. So I think they're

1:17:33.439 --> 1:17:35.040
<v Speaker 14>really just trying to get their money out of it.

1:17:35.200 --> 1:17:37.400
<v Speaker 2>This was not a good flip. I'm just gonna say.

1:17:37.680 --> 1:17:39.559
<v Speaker 14>You know, I don't get the impression that it actually

1:17:39.600 --> 1:17:39.840
<v Speaker 14>was a.

1:17:39.800 --> 1:17:40.400
<v Speaker 4>Flip, you know.

1:17:40.439 --> 1:17:42.599
<v Speaker 2>I think I think they're really.

1:17:42.400 --> 1:17:47.120
<v Speaker 14>Trying to kind of marie condo their own lives from

1:17:47.160 --> 1:17:50.000
<v Speaker 14>a super rich level and getting rid of one of

1:17:50.080 --> 1:17:52.559
<v Speaker 14>what they told me was severalification homes.

1:17:52.680 --> 1:17:54.760
<v Speaker 3>But it does seem like there was some nice flexibility

1:17:54.760 --> 1:17:57.280
<v Speaker 3>with the home, like they wanted it for sort of

1:17:57.320 --> 1:17:58.240
<v Speaker 3>every purpose.

1:17:58.000 --> 1:17:58.439
<v Speaker 4>Under the sun.

1:17:58.479 --> 1:18:00.559
<v Speaker 3>You could imagine a home here being used for.

1:18:00.600 --> 1:18:04.479
<v Speaker 14>Completely and it can have it can easily accommodate twelve

1:18:04.479 --> 1:18:07.679
<v Speaker 14>guests more than that. But also, you know, it's actually

1:18:07.720 --> 1:18:10.559
<v Speaker 14>not such a sprawling house that you're going to feel

1:18:10.600 --> 1:18:13.640
<v Speaker 14>like you're alone in a castle. If you've just you

1:18:13.760 --> 1:18:14.960
<v Speaker 14>and a friend or you and.

1:18:14.920 --> 1:18:18.280
<v Speaker 2>A spouse, everything customed to in it, which is pretty amazing.

1:18:18.400 --> 1:18:20.080
<v Speaker 3>Chris Setti heard from folks who are going to buy

1:18:20.120 --> 1:18:22.280
<v Speaker 3>the Trump Watch. Have you heard from the readers who

1:18:22.360 --> 1:18:23.320
<v Speaker 3>are planning to buy this?

1:18:23.600 --> 1:18:26.960
<v Speaker 14>Interestingly, I have not. And sometimes when we do publish

1:18:27.000 --> 1:18:31.000
<v Speaker 14>these listings, we either we find out immediately that someone

1:18:31.000 --> 1:18:32.040
<v Speaker 14>has read cell houses.

1:18:32.160 --> 1:18:35.040
<v Speaker 3>Yeah, yeah, yeah, that's incredible.

1:18:35.080 --> 1:18:35.400
<v Speaker 8>It is.

1:18:35.479 --> 1:18:38.160
<v Speaker 14>It is kind of and we find out immediately that

1:18:38.240 --> 1:18:40.800
<v Speaker 14>these these things have sold off off of articles that we.

1:18:40.840 --> 1:18:42.720
<v Speaker 16>Because James talks to the brokers for the story and

1:18:42.720 --> 1:18:44.679
<v Speaker 16>then they call and they'll be like, yeah, that ten

1:18:44.680 --> 1:18:47.160
<v Speaker 16>million dollars house in Montalk, someone read the story about it.

1:18:47.600 --> 1:18:48.760
<v Speaker 2>There's a side revenue street.

1:18:48.760 --> 1:18:50.840
<v Speaker 16>We do not get the cuts.

1:18:52.040 --> 1:18:53.920
<v Speaker 2>Well, you know who's going to be starting to get

1:18:53.960 --> 1:18:57.800
<v Speaker 2>cuts a dead celebrities thanks to the eye. Oh yeah,

1:18:57.880 --> 1:18:58.519
<v Speaker 2>what's going on?

1:18:58.920 --> 1:19:03.960
<v Speaker 16>This is big. So basically when a celebrity has two

1:19:04.200 --> 1:19:07.519
<v Speaker 16>ways of making money they can. It's personal services, which

1:19:07.560 --> 1:19:11.479
<v Speaker 16>is them performing, them doing concerts, readings, writing books. And

1:19:11.520 --> 1:19:15.280
<v Speaker 16>then there's their intellectual property basically, and so when a

1:19:15.320 --> 1:19:18.280
<v Speaker 16>celebrity dies, their personal services income goes away because they

1:19:18.280 --> 1:19:22.040
<v Speaker 16>can no longer produce work, but their intellectual property continues

1:19:22.080 --> 1:19:25.320
<v Speaker 16>to exist. And celebrities have estates. For example, Michael Jackson

1:19:26.080 --> 1:19:28.360
<v Speaker 16>was five hundred million dollars in debt when he died.

1:19:28.400 --> 1:19:31.559
<v Speaker 16>Now his estate over two billion. Has made over two

1:19:31.560 --> 1:19:35.160
<v Speaker 16>billion dollars through this Broadway Show, through other like app

1:19:35.360 --> 1:19:40.000
<v Speaker 16>posthumous albums, and generally that's not usual. Generally, like a

1:19:40.040 --> 1:19:44.280
<v Speaker 16>celebrity's net value decreases about ten percent per year after

1:19:44.320 --> 1:19:48.320
<v Speaker 16>they die. Now with AI they can create new work,

1:19:48.600 --> 1:19:51.760
<v Speaker 16>and so they're not creating new work, but computers are

1:19:51.760 --> 1:19:55.200
<v Speaker 16>creating anywhere. So there's this company called eleven Labs which

1:19:55.200 --> 1:19:57.519
<v Speaker 16>has a reader app which is an example of how

1:19:57.520 --> 1:20:00.839
<v Speaker 16>you can do this, and basically, Judy Garland, Lawrence Olivier,

1:20:00.880 --> 1:20:04.679
<v Speaker 16>Burt Reynolds, all their estates have signed with this app

1:20:04.760 --> 1:20:07.400
<v Speaker 16>and they can they'll read books for you. James Dean

1:20:07.479 --> 1:20:09.439
<v Speaker 16>can read you The Legend of Sleepy hollow and you

1:20:09.479 --> 1:20:11.759
<v Speaker 16>can put in your own stuff. So literally, Judy Garland

1:20:11.840 --> 1:20:13.320
<v Speaker 16>could read your tax returns.

1:20:13.439 --> 1:20:14.120
<v Speaker 2>That's pretty cool.

1:20:14.240 --> 1:20:16.360
<v Speaker 3>If they can do this for dead celebrities, they can

1:20:16.400 --> 1:20:18.800
<v Speaker 3>do this for people who are alive right now. And

1:20:18.840 --> 1:20:20.200
<v Speaker 3>this has huge implications.

1:20:20.280 --> 1:20:22.800
<v Speaker 16>Yeah, oh yeah, yeah. I mean deep fake technology is

1:20:23.520 --> 1:20:26.880
<v Speaker 16>a problem, and you know we Taylor Swift has been

1:20:26.880 --> 1:20:30.000
<v Speaker 16>a victim of stuff, like politicians. I mean, that's a

1:20:30.000 --> 1:20:34.120
<v Speaker 16>big issue. And some people who managed dead celebrities of

1:20:34.120 --> 1:20:36.120
<v Speaker 16>states say this is this is not good, like we

1:20:36.160 --> 1:20:38.519
<v Speaker 16>should not be doing it. The guy who owned like

1:20:38.680 --> 1:20:41.360
<v Speaker 16>represents Jim Morrison's a state, Dennis Joplin, He's like, these

1:20:41.479 --> 1:20:44.960
<v Speaker 16>artists will never make any more work. They're gone, Like

1:20:45.120 --> 1:20:47.439
<v Speaker 16>this isn't what it's for. Pressure what they did right,

1:20:47.560 --> 1:20:50.720
<v Speaker 16>Like a lot of other people are going for it.

1:20:51.080 --> 1:20:54.960
<v Speaker 14>I mean, can I just say that I recognize the criticisms,

1:20:55.280 --> 1:20:57.800
<v Speaker 14>but you know, there's pictures of Audrey Hepburn next to

1:20:57.840 --> 1:20:59.920
<v Speaker 14>a pearl necklace that Tiffany's is selling or whatever. You know,

1:21:00.360 --> 1:21:03.479
<v Speaker 14>people use dead celebrities licenses all the time. To me,

1:21:03.680 --> 1:21:07.040
<v Speaker 14>this doesn't as long as it's clearly labeled as like

1:21:07.080 --> 1:21:10.439
<v Speaker 14>an AI version of it, it doesn't seem that much

1:21:10.479 --> 1:21:11.120
<v Speaker 14>of a bridge.

1:21:11.640 --> 1:21:12.400
<v Speaker 8>Yeah, I think.

1:21:12.240 --> 1:21:14.720
<v Speaker 16>People just worry about, yeah, the gray areas where it's

1:21:14.720 --> 1:21:18.479
<v Speaker 16>not clearly labeled. So like, there's a show called Elvis

1:21:18.520 --> 1:21:21.040
<v Speaker 16>Evolution which is premiering in London. It's an in person

1:21:21.120 --> 1:21:24.680
<v Speaker 16>show and they're going to have Elvis through Ai performing

1:21:25.000 --> 1:21:27.519
<v Speaker 16>for the first time in forty five years, and it's

1:21:27.520 --> 1:21:28.960
<v Speaker 16>just going to be a big test of like whether

1:21:28.960 --> 1:21:30.639
<v Speaker 16>people actually want to go see that or whether they're

1:21:30.640 --> 1:21:33.040
<v Speaker 16>creeped out by it. Ab A Voyage, which is sort

1:21:33.040 --> 1:21:35.960
<v Speaker 16>of a hologram version of the same kind of thing,

1:21:35.960 --> 1:21:38.559
<v Speaker 16>but abba all of those members are alive and they

1:21:38.560 --> 1:21:40.960
<v Speaker 16>were part of it, is actually quite popular, So maybe

1:21:40.960 --> 1:21:41.800
<v Speaker 16>this could be a thing.

1:21:43.360 --> 1:21:45.479
<v Speaker 2>Yeah, you know, I don't know. It's kind of cool.

1:21:45.520 --> 1:21:47.719
<v Speaker 2>Hey listen before we go, just real quickly, James Ptarmi,

1:21:47.960 --> 1:21:50.439
<v Speaker 2>you have an article about the best movies, books, TV

1:21:50.520 --> 1:21:52.639
<v Speaker 2>and exhibitions coming in October. Can you pick just one

1:21:52.680 --> 1:21:53.000
<v Speaker 2>for us?

1:21:54.560 --> 1:21:59.519
<v Speaker 14>You know, I can this for Contacts. We did a

1:21:59.520 --> 1:22:05.000
<v Speaker 14>big culture issue and culture preview, and one of the

1:22:05.040 --> 1:22:10.360
<v Speaker 14>many recommendations that I put out, I'm really really excited

1:22:10.400 --> 1:22:16.080
<v Speaker 14>for the Louisiana Museum. Outside of Nice Copenhagen. They in Denmark.

1:22:16.360 --> 1:22:23.439
<v Speaker 14>They have this huge, extremely unconventional show about the ocean

1:22:23.960 --> 1:22:27.920
<v Speaker 14>and it's artworks, it's science, it's history, and it's quite

1:22:28.000 --> 1:22:31.760
<v Speaker 14>unusual for this day and age, both thematically and also conceptually.

1:22:31.840 --> 1:22:34.880
<v Speaker 14>And I know a lot of people who are going

1:22:34.920 --> 1:22:36.760
<v Speaker 14>out of their way to see it, and I am

1:22:36.800 --> 1:22:38.120
<v Speaker 14>going to do my best to do the same.

1:22:38.560 --> 1:22:40.879
<v Speaker 16>And Linn Manuel Miranda is coming out with a concept

1:22:40.920 --> 1:22:44.200
<v Speaker 16>album for what could possibly be his next show. It's

1:22:44.200 --> 1:22:45.920
<v Speaker 16>called The Warriors. It has all these hip hop stars,

1:22:45.920 --> 1:22:47.519
<v Speaker 16>all these Broadway stars. It's going to be amazing.

1:22:47.560 --> 1:22:49.200
<v Speaker 2>I saw that. I was curious about that. All right,

1:22:49.200 --> 1:22:52.360
<v Speaker 2>cool stuff. Guys always always appreciate all that you guys

1:22:52.360 --> 1:22:52.720
<v Speaker 2>do to you.

1:22:52.800 --> 1:22:56.559
<v Speaker 3>Guys who can never ever be replaced by Ai Bloomberg

1:22:56.600 --> 1:22:59.200
<v Speaker 3>Pursuits columnist James Carmon, who oversees.

1:22:58.960 --> 1:23:03.680
<v Speaker 14>Sounds like a threat our coverage, and the editor of

1:23:03.680 --> 1:23:05.439
<v Speaker 14>Bloomberg Pursuits, Chris Rouser.

1:23:05.479 --> 1:23:06.280
<v Speaker 4>Here in our studio.

1:23:06.680 --> 1:23:11.320
<v Speaker 1>This is the Bloomberg Business Week podcast, available on Apple, Spotify,

1:23:11.439 --> 1:23:15.160
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1:23:15.200 --> 1:23:18.799
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1:23:18.840 --> 1:23:22.160
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1:23:22.200 --> 1:23:25.160
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