WEBVTT - Bloomberg Businessweek Weekend - May 22nd, 2021 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business, finance and tech news as it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.439 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.600 --> 0:00:23.799 edition of Bloomberg Business Week. This week we talked a 0:00:23.800 --> 0:00:26.599 lot about the world post pandemic. It's all part of 0:00:26.640 --> 0:00:29.520 the How To issue of the magazine, everything from how 0:00:29.520 --> 0:00:31.800 to be a better tipper and land amission on Mars 0:00:32.040 --> 0:00:35.280 to creating an innovative culture and making a great tequila. 0:00:35.440 --> 0:00:37.000 You can read more about all of that in the 0:00:37.040 --> 0:00:39.560 current issue of Bloomberg Business Week. I've been thinking about 0:00:39.600 --> 0:00:41.199 how to land a mission on Mars. I wanted to 0:00:41.240 --> 0:00:43.919 know how do that get practicing. You can also hear 0:00:43.960 --> 0:00:46.000 some of the highlights from our live virtual event this 0:00:46.080 --> 0:00:49.080 week called the Bloomberg Business Week that complimented the issue, 0:00:49.159 --> 0:00:53.440 including the turnaround at we work with Executive Chairman Marcello Chlorae. 0:00:53.720 --> 0:00:57.120 Also Atlanta Fed President Raphael Bostick on the US Central 0:00:57.160 --> 0:01:00.520 Bank kind of maybe sort of thinking of the policy 0:01:00.560 --> 0:01:03.840 shift he also talked about bitcoin. He did, as did 0:01:03.960 --> 0:01:06.920 Kathy Wood, an in depth conversation with the Ark invest 0:01:06.959 --> 0:01:09.920 founder CEO c i O in the midst of a 0:01:09.959 --> 0:01:13.360 wild week for cryptocurrency. We'll also hear from Brian Brooks, 0:01:13.400 --> 0:01:16.800 the CEO of Finance It's the largest cryptocurrency exchange in 0:01:16.840 --> 0:01:19.039 the world. That company also in the news as of 0:01:19.120 --> 0:01:22.560 late and then later on Dallas Mavericks CEO Cynthia Marshall, 0:01:22.680 --> 0:01:25.160 and singer songwriter Nick Jonas, who's working on a new 0:01:25.200 --> 0:01:28.200 to Kill a venture with John Varvados. That's a fun one, yes, 0:01:28.240 --> 0:01:31.000 it was. Let's get things started this hour with more 0:01:31.080 --> 0:01:33.360 on the How To issue from the features editor behind 0:01:33.400 --> 0:01:36.080 it all, Brett Began, who joined us along with Bloomberg 0:01:36.120 --> 0:01:39.480 Business Week editor Joel Weber. It is a forty page 0:01:40.080 --> 0:01:44.160 takeover of the of the future, well we call it UM. 0:01:44.200 --> 0:01:48.320 Brett is the mastermind of the issue UM and and 0:01:48.360 --> 0:01:51.000 Brett just talk to me about how you approach what 0:01:51.080 --> 0:01:53.400 a good how To story is. I think you think 0:01:53.440 --> 0:01:57.200 about the issue as a whole. So while we are 0:01:57.200 --> 0:01:59.680 going to want to hit a lot of the topics 0:01:59.720 --> 0:02:02.440 that were hitting weekend and week out, UM, like how 0:02:02.480 --> 0:02:05.240 to make good investments and things like that. Um, you 0:02:05.320 --> 0:02:07.400 have to also sort of uh think a little bit 0:02:07.480 --> 0:02:10.280 more broadly, so you might get a pitch on something 0:02:11.040 --> 0:02:15.280 that for a regular issue might not make too much sense, 0:02:15.520 --> 0:02:18.040 like let's say, had a shop for a classic car 0:02:18.520 --> 0:02:22.600 outside of their pursuit section, but suddenly within um, the 0:02:22.800 --> 0:02:26.079 how two issues starts to make total sense because it's 0:02:26.080 --> 0:02:28.160 great for them makes you really want people to come 0:02:28.840 --> 0:02:32.119 to the issue and really get that sense of serendipity 0:02:32.200 --> 0:02:35.760 that they're stumbling upon something that they didn't think would 0:02:35.800 --> 0:02:37.600 be that interesting to them and it turns out to 0:02:37.600 --> 0:02:40.040 be pretty fascinating. So you're telling me in normal times 0:02:40.040 --> 0:02:44.200 to compile a post pandemic karaoke playlist that Joel wouldn't 0:02:44.200 --> 0:02:48.359 be like, yeah, yeah, okay, cover story. I mean, I'm 0:02:48.400 --> 0:02:50.400 all if Joel wants to put that on the cover up, 0:02:50.480 --> 0:02:55.040 I'm all for karaoke takeover issues totally. Um. But yeah, 0:02:55.080 --> 0:02:57.079 but you're right, Carol, I mean, that's that's the one 0:02:57.120 --> 0:03:00.480 where you know, we looked at okay, how you know 0:03:00.760 --> 0:03:03.840 if the pandemic is over? For you, right, And for 0:03:03.919 --> 0:03:06.520 Sam Robard it was, Hey, when I can do karaoke? 0:03:06.760 --> 0:03:09.800 We figured one up it together The ideal post pandemic 0:03:09.840 --> 0:03:13.360 karaoke playlist. I'm gonna say nice to know, not not 0:03:13.919 --> 0:03:17.600 need to know, but as part of a mix, it 0:03:17.639 --> 0:03:19.840 makes a lot of sense. Tim, what was something that 0:03:20.280 --> 0:03:22.640 jumped out to you when you sell all the stories? 0:03:22.840 --> 0:03:26.200 For me, it was it had to do with the 0:03:26.320 --> 0:03:30.280 vaccinations and really the idea of what works when it 0:03:30.320 --> 0:03:34.000 comes to messaging for vaccinations, Brett, because it really surprised 0:03:34.000 --> 0:03:36.760 me and you guys spoke to an expert about messaging 0:03:36.800 --> 0:03:39.120 and what did she tell you? It was pretty striving 0:03:39.160 --> 0:03:42.200 to me too. It turned out that, you know, basically 0:03:42.720 --> 0:03:47.960 all of the more subtle approaches and approaches that appealed 0:03:47.960 --> 0:03:54.480 more to emotion um didn't work. People just wanted unbridled enthusiasm. 0:03:54.600 --> 0:03:58.960 And the ad that was most impactful was basically getting 0:03:58.960 --> 0:04:01.680 a bunch of cheerleaders to doesn't do a number of 0:04:01.840 --> 0:04:03.800 like give me a V I mean a give you 0:04:03.840 --> 0:04:06.200 a C C I and so UM. I was a 0:04:06.240 --> 0:04:08.160 bit surprised by that. I thought there'd be more new 0:04:08.200 --> 0:04:11.040 month to it. But this is as opposed to showing 0:04:11.080 --> 0:04:13.560 images from a hospital or showing a lot of us 0:04:13.600 --> 0:04:15.560 have been familiar with over the last fourteen months. Right, 0:04:16.000 --> 0:04:18.400 that's right, that's right. Yeah, it was just give me 0:04:18.520 --> 0:04:22.280 unbridled enthusiasm, make me feel happy, and then I'll be 0:04:22.279 --> 0:04:27.400 more likely to get vaccinated. Unbridled happiness and and optimism. 0:04:27.520 --> 0:04:29.560 You know, the world just needs a little bit more 0:04:29.560 --> 0:04:32.840 of that. So so Brett, you know, the the thing 0:04:32.880 --> 0:04:35.120 that I think was there's a craft to how we 0:04:35.160 --> 0:04:38.440 approached these stories. And some of them are actually quite short, 0:04:38.480 --> 0:04:40.200 but in general, one of the things that we're trying 0:04:40.240 --> 0:04:44.280 to give people it's something actionable. Um, and I'm wondering, 0:04:44.400 --> 0:04:48.040 having spent now, you know, kind of like weeks working 0:04:48.080 --> 0:04:50.559 on these, talk to me about some of the most 0:04:50.600 --> 0:04:53.960 actionable pieces of advice that that you liked. We did 0:04:54.000 --> 0:04:56.320 these all in the as toole to style. As you know, 0:04:56.440 --> 0:04:59.200 we're basically interviewed and expert and let that expert just 0:04:59.279 --> 0:05:01.480 sort of talk to so you know, I mean I 0:05:01.520 --> 0:05:06.120 actually found that about how to meet deadlines very Uh 0:05:06.520 --> 0:05:09.280 it's a great Oh yeah, that is a good way 0:05:09.320 --> 0:05:12.240 to do it. You know, we're basically are our experts said, 0:05:12.680 --> 0:05:14.640 you know, this is so simple, but you really need 0:05:14.680 --> 0:05:16.760 to start at the end and then work your way back. 0:05:16.839 --> 0:05:19.640 It's so often that we're getting we get caught up 0:05:19.680 --> 0:05:21.800 in the task at hand and we forget to actually 0:05:21.800 --> 0:05:24.560 work backwards. So you know, I thought that that was 0:05:24.760 --> 0:05:27.719 pretty uh. I thought that was pretty helpful. So I'm 0:05:27.760 --> 0:05:33.240 sad that Brett didn't mention my own. I was waiting. 0:05:33.760 --> 0:05:36.000 I was waiting for you to do it. Oh well, okay, 0:05:36.040 --> 0:05:38.960 I was waiting for you to tell me my favorite too. 0:05:38.960 --> 0:05:41.719 You wanted me to just say whatever, it was really good. 0:05:42.120 --> 0:05:47.839 Our favorite was Joel's tipping. So this is actually um 0:05:48.160 --> 0:05:50.880 from my younger days when you know, it seems so 0:05:50.960 --> 0:05:52.800 long ago now when when you used to go to 0:05:52.839 --> 0:05:56.280 bars and like interact with people. But that but a 0:05:56.320 --> 0:05:58.839 friend of a friend had gave me this great tip once, 0:05:58.880 --> 0:06:02.200 which is before you go out um on your for 0:06:02.320 --> 0:06:04.440 your weekend, you know, on Friday, go to the bank 0:06:04.839 --> 0:06:07.840 and basically buy as many two dollar bills from the 0:06:07.880 --> 0:06:11.400 bank as you can right get your deposit, and you're 0:06:11.440 --> 0:06:15.320 gonna find that, um, the quantity of two dollar bills 0:06:15.520 --> 0:06:18.880 like your grandma bought them for your birthday cards long ago, 0:06:19.000 --> 0:06:22.520 there's not that many in circulation, UM. So you basically 0:06:22.560 --> 0:06:26.520 take whatever the bank gives you, and UM, automatically, when 0:06:26.520 --> 0:06:29.960 you start tipping a bartender, you are tipping twice as 0:06:30.000 --> 0:06:31.920 much as the person next to you who's only tipping 0:06:31.920 --> 0:06:34.600 with a buck, So you are you are gold to 0:06:34.680 --> 0:06:37.520 bartenders with two dollar bills. That was the features editor 0:06:37.560 --> 0:06:40.200 for the magazine, Brett Vegan and ar Joel Weber with 0:06:40.240 --> 0:06:43.120 an overview of the how to issue coming up. SoftBank's 0:06:43.160 --> 0:06:46.159 Marcello Clauree says we Work is well positioned for post 0:06:46.240 --> 0:06:49.039 pandemic life in more ways than one. Look at the 0:06:49.040 --> 0:06:51.640 future of office space and rental payments. You're listening to 0:06:51.640 --> 0:07:03.200 Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business 0:07:03.320 --> 0:07:07.000 Week with Carol Masser and Bloomberg Quick Takes, Tim Stinnovan 0:07:07.240 --> 0:07:11.800 from Bloomberg Radio technd Transformation. It is one of the 0:07:11.880 --> 0:07:15.280 verticals of Bloomberg Business Week magazine, and at the business 0:07:15.320 --> 0:07:17.880 Week Live virtual event this week, we heard from a 0:07:17.920 --> 0:07:20.239 voice that knows a lot about that we're talking about, 0:07:20.240 --> 0:07:23.480 Marcelo Chloe, executive chairman at we Work. He's also CEO 0:07:23.520 --> 0:07:27.280 of soft Bank Group International and CEO SoftBank Group. We 0:07:27.320 --> 0:07:29.679 Work has come quite a way since it's failed attempt 0:07:29.680 --> 0:07:32.560 at an I p O back in and Clara tells 0:07:32.560 --> 0:07:35.360 Bloomberg's Ad Hammond that the company is uniquely positioned to 0:07:35.440 --> 0:07:38.200 enjoy a renaissance even as the commercial real estate market 0:07:38.240 --> 0:07:40.960 struggles to find its footing coming off of COVID. I 0:07:41.000 --> 0:07:44.200 think this is we works time because the value proposition 0:07:44.240 --> 0:07:47.760 of we work how so we've been flexibility, and what 0:07:47.840 --> 0:07:50.720 the world is looking now is for a flexible workspace. 0:07:51.040 --> 0:07:53.200 There are so many different ways in which people are 0:07:53.240 --> 0:07:56.160 going to work. But what we're hearing from people is, 0:07:56.280 --> 0:07:58.280 first of all, employees want to go back to the 0:07:58.320 --> 0:08:01.200 office right night out of and employees say I want 0:08:01.200 --> 0:08:02.640 to go back to the office. They don't want to 0:08:02.680 --> 0:08:04.640 go back the same way. They don't want to go 0:08:04.720 --> 0:08:08.240 back to one headquarters and red. Some say you want 0:08:08.280 --> 0:08:09.760 to be there three days a week, Some say they 0:08:09.800 --> 0:08:11.280 want to be two days a week, Some say four 0:08:11.320 --> 0:08:13.600 days a week. Some says I don't want to drive 0:08:13.640 --> 0:08:16.520 to headquarters. I want to work close to home. So 0:08:16.760 --> 0:08:19.000 there's going to be so many different business models. But 0:08:19.160 --> 0:08:21.840 what I do know is that companies are not looking 0:08:21.880 --> 0:08:25.520 forward to going back to the traditional way of signing 0:08:25.520 --> 0:08:29.280 a twenty years list as setting up this non flexible headquarters. 0:08:29.440 --> 0:08:32.520 That's that the office is very different today. You know, 0:08:32.559 --> 0:08:34.960 the biggest or most of our larger customers are the 0:08:34.960 --> 0:08:38.439 world most valuable companies who basically are sending those their 0:08:38.440 --> 0:08:41.640 employees because they don't know, you know, how many days 0:08:41.640 --> 0:08:43.120 they are going to be working, because they don't know 0:08:43.120 --> 0:08:45.320 where their business is going to grow. And when you're 0:08:45.320 --> 0:08:47.199 sitting in the only company in the world that has 0:08:47.200 --> 0:08:51.439 over a thousand buildings in pretty much most important cities 0:08:51.440 --> 0:08:55.520 around the world, they demand for we Work space today 0:08:55.960 --> 0:08:59.040 is higher than it was prior to the pandemic. So 0:08:59.080 --> 0:09:01.959 what the pandemical we Work allowed to re embed itself. 0:09:02.040 --> 0:09:04.520 It allowed to learn how to operate on a mosque 0:09:05.640 --> 0:09:08.920 cost flexible basis, and now you have it. We worked that. 0:09:09.240 --> 0:09:11.920 Like I said before, you know, we Work should be 0:09:11.920 --> 0:09:14.440 a profitable company by the end of this year or 0:09:14.440 --> 0:09:17.880 by the beginning of next year's latest. I'm demand for 0:09:17.920 --> 0:09:20.560 this type of flexible of space is higher than ever 0:09:21.200 --> 0:09:23.640 and I think the world is going to really fine 0:09:23.679 --> 0:09:27.400 in terms of work. Flexibility becomes the most important part 0:09:27.679 --> 0:09:30.840 that the company could offer its employees. I gotta go 0:09:30.920 --> 0:09:33.480 there with the crypto question. Obviously we worked last month 0:09:33.559 --> 0:09:36.040 and else that it would be accepting payment in the 0:09:36.080 --> 0:09:38.320 form of cryptocurrencies, not to be bitcoin. It also said 0:09:38.320 --> 0:09:40.480 it would hold some on its balance sheet. We saw 0:09:40.559 --> 0:09:42.800 Elon must come out and say Tesla would no longer 0:09:42.840 --> 0:09:46.280 be taking bitcoin over concerns about the impact it has 0:09:46.320 --> 0:09:49.880 on the environment. Obviously, the environmental impact on mining bitcoin 0:09:49.960 --> 0:09:52.600 has has gone up significantly over the past few months. 0:09:53.240 --> 0:09:54.959 Is that the right move? Is that something we're like, 0:09:55.000 --> 0:09:56.880 you see we work follower. Is that just a sort 0:09:56.920 --> 0:10:00.760 of reaction to to a short term No. I mean, 0:10:00.840 --> 0:10:04.760 the reason why we decided to accept cryptocurrencies, what's because 0:10:04.760 --> 0:10:07.760 our customers were asking for it. We know. One of 0:10:07.760 --> 0:10:09.520 the things that we do with sun Deep is we 0:10:09.640 --> 0:10:11.599 listen to our customers a lot and we have to 0:10:11.679 --> 0:10:14.199 write it tells the type of office they're looking, They 0:10:14.240 --> 0:10:17.400 tell us the type of setups that they want, and 0:10:17.400 --> 0:10:20.280 and the crypto. The work came out a lot more 0:10:20.320 --> 0:10:22.679 employees say, you know, we would like to pay encrypto. 0:10:22.760 --> 0:10:26.360 We have accumulated a significant amount of wealth in crypto 0:10:26.440 --> 0:10:28.240 that we would like to use it to pay for rent. 0:10:28.280 --> 0:10:31.120 As brint becomes an important part of many companies, so 0:10:31.200 --> 0:10:34.280 we decided to basically seb crypto and at the same time, 0:10:34.480 --> 0:10:36.520 you know, as people pay us in crypto, it to 0:10:36.600 --> 0:10:38.920 us is just another currency. It's like we're holding too. 0:10:39.200 --> 0:10:41.600 We have used dollars, we've got euros, we've got pounds, 0:10:41.600 --> 0:10:44.520 we've got crypto, we've got Japanese ends, we got it end. 0:10:44.559 --> 0:10:46.800 So to us, it makes no difference. And on our 0:10:46.800 --> 0:10:50.000 customers ask from reimbursement in crypto, we're paying crypto and 0:10:50.040 --> 0:10:51.720 we have. You know, we've had some of our customers 0:10:51.720 --> 0:10:54.520 who are payings and cryptocurrencies and we have some ladders 0:10:54.520 --> 0:10:55.920 who said, look, I would like you to pay me 0:10:55.960 --> 0:10:59.320 in cryptocurrencies. So you know, the way we work looks 0:10:59.360 --> 0:11:01.120 at it. You know, we are we're gonna listen to 0:11:01.120 --> 0:11:03.960 our customers want from us, and if they demanded that 0:11:04.040 --> 0:11:05.880 they wanted to pay in crypto, that's how we do 0:11:05.960 --> 0:11:08.120 crypto as a form of payment. And you have a 0:11:08.200 --> 0:11:10.319 level that you'll be comfortable going to in terms of 0:11:10.320 --> 0:11:13.080 your sort of total money going in and out in 0:11:13.080 --> 0:11:15.080 the form of cryptome. I mean today is a very 0:11:15.080 --> 0:11:17.800 small part of our business. I think is the beginning. 0:11:17.800 --> 0:11:19.960 I think crypto is a mega trend. I think crypto 0:11:20.040 --> 0:11:23.120 cannot be ignored, and you know it's going to grow 0:11:23.120 --> 0:11:26.360 according to whatever customers want. For customers want by paying 0:11:26.400 --> 0:11:29.280 crypto more, you know, we're gonna accept crypto. Customers want 0:11:29.280 --> 0:11:31.920 to pay on traditional currency, We're gonna accept form of 0:11:31.960 --> 0:11:34.880 payment as as traditional currency. So to us, this was 0:11:34.920 --> 0:11:38.199 nothing more than a move to basically help or customers 0:11:38.200 --> 0:11:40.320 satisfied some of the needs that our customers who are 0:11:40.360 --> 0:11:43.160 asking from. Obviously a first customer and a large one. 0:11:43.160 --> 0:11:45.440 What's coin base Not a lot of people know, but 0:11:45.720 --> 0:11:47.920 you know the headquarters and most of the real estate 0:11:47.960 --> 0:11:51.040 and coin bage uses is we work and being them 0:11:51.120 --> 0:11:55.200 the largest exchange of cryptocurrency, they know they had. They 0:11:55.200 --> 0:11:57.640 were the first customers to pay us in cryptocurrency. They 0:11:57.720 --> 0:12:01.720 pay purely in cryptocurrency. I think the combination combination. I 0:12:01.880 --> 0:12:05.040 not not exactly, but they were the first customer that 0:12:05.480 --> 0:12:09.280 actually wanted to payankrypto. Massa son has proved himself to 0:12:09.320 --> 0:12:12.640 be a highly successful investor through good times, through bad times. 0:12:12.640 --> 0:12:17.760 Obviously through this recent pandemic. In terms of key man risk, 0:12:17.840 --> 0:12:20.000 who is the right person to take over shoot? He 0:12:20.040 --> 0:12:23.240 stepped down as obviously yourself and Rage Mrs sort of 0:12:23.240 --> 0:12:25.640 both fairly close to the top of the organization. You 0:12:25.679 --> 0:12:28.280 know what I mean, that's that's a subject that only 0:12:28.360 --> 0:12:32.559 Massa knows the answer. I mean, Massa is incredibly active. 0:12:33.200 --> 0:12:37.240 Massa is a hands on manager. Massa meets with every 0:12:37.240 --> 0:12:40.640 single one of the entrepreneurs that we invest and we 0:12:40.720 --> 0:12:43.480 hold you know, daily minutes with Massa in which you know, 0:12:43.480 --> 0:12:46.040 we're always trying to figure out how we can make 0:12:46.040 --> 0:12:49.720 our entrepreneurs work together, how they can leverage the ecosystem, 0:12:49.760 --> 0:12:52.080 and we're close off. I would say two hundred and 0:12:52.160 --> 0:12:56.679 forty of the biggest disruptors sit within the SOPA ecosystem. 0:12:56.760 --> 0:13:00.120 So it's fascinating to see more entrepreneurs are found is 0:13:00.200 --> 0:13:02.760 engaged with each other, help each other, and Massa is 0:13:02.880 --> 0:13:06.440 incredibly active in that. So that answer only Massa Olson, 0:13:06.480 --> 0:13:08.600 and he hasn't shared it with anybody. And when I 0:13:08.640 --> 0:13:11.679 think of the sort of the different characters inside, you know, 0:13:12.160 --> 0:13:17.040 Mr Mysteries is often cast as the sort of soft, 0:13:17.400 --> 0:13:21.280 curdly side of it, you know, the friendly face of 0:13:21.320 --> 0:13:24.559 soft Bank Investing. You're more the operations guy. Obviously you 0:13:24.720 --> 0:13:28.520 fixed the T mobile situation, you're now fixing the we 0:13:28.640 --> 0:13:32.840 work situation. Is that a fair characterization of the two 0:13:32.840 --> 0:13:35.280 of you and the roles that you fell within the organization. 0:13:35.640 --> 0:13:37.559 I mean, I think there's so much to do in 0:13:37.559 --> 0:13:40.880 in soft Bank that we all divide and conquer, right, 0:13:40.920 --> 0:13:43.680 anytime there's a big issue with the company, you know, 0:13:43.880 --> 0:13:47.240 I'm usually the one that gets sent to the get center. 0:13:47.720 --> 0:13:50.480 I had a personal attachment to Latin Americans, so that's 0:13:50.480 --> 0:13:52.800 what we launched a five billion Latin American fund. That 0:13:52.880 --> 0:13:55.800 was soft Bank Group CEO, and we worked Executive Chairman 0:13:55.840 --> 0:13:59.480 Marcello Clare with Bloomberg Deals reporter at Hammond talking about 0:13:59.480 --> 0:14:01.640 succession plans. Listen, we always want to know when there's 0:14:01.640 --> 0:14:05.240 an iconic company, an iconic individual behind that company, you 0:14:05.280 --> 0:14:08.080 know who comes next. Yeah, and soft Bank is, of 0:14:08.120 --> 0:14:10.720 course among the biggest. Yeah, totally. And the we work 0:14:10.760 --> 0:14:12.679 story this is when we've been following for the last 0:14:12.760 --> 0:14:15.120 year or so, a couple of years, so excited about 0:14:15.120 --> 0:14:18.280 the build up, its growth, the expected ip O that 0:14:18.400 --> 0:14:20.760 ultimately didn't happen, and then all of it kind of 0:14:20.800 --> 0:14:24.560 seemed to come crumbling down a bunch and they really retrenched, 0:14:24.600 --> 0:14:26.760 although they sound like now they're building back up, even 0:14:26.760 --> 0:14:29.520 though it's a tough market for commercial real estate given 0:14:29.760 --> 0:14:31.880 the way that people are going to be going back 0:14:31.920 --> 0:14:34.960 to work in a hybrid hybrid method. Yeah, exactly. Plenty 0:14:34.960 --> 0:14:36.960 more ahead on Bloomberg Business Week and our special how 0:14:37.000 --> 0:14:39.960 to issue and the Bloomberg Business Week Live Virtual event. 0:14:40.040 --> 0:14:42.520 We're going to hear from Atlanta Fed President Raphael Bostic 0:14:42.960 --> 0:14:45.600 and the original test La Bowl, Arc invest founder and 0:14:45.680 --> 0:14:48.840 CEO Kathy Wood and later the business of Sports with 0:14:48.960 --> 0:14:53.000 the CEO of the NBA Playoff Bound Dallas Mavericks, Cynthia Marshall. 0:14:53.240 --> 0:15:01.640 This is Bloomberg broadcasting from the financial capital of the world, Bloomberg. 0:15:01.720 --> 0:15:04.480 He Love in Frio in New York, to Washington, d C. 0:15:04.680 --> 0:15:09.400 Bloomberg to Boston, Bloomberg one oh six one to San Francisco, 0:15:09.480 --> 0:15:12.920 Bloomberg nine sixty to the country Sirius xm Chado one 0:15:13.000 --> 0:15:16.160 nineteen and around the globe the Bloomberg Business app and 0:15:16.200 --> 0:15:21.760 Bloomberg Radio dot Com. This is Bloomberg Business Week. Funding 0:15:21.800 --> 0:15:24.240 is an economics It's another important vertical of the magazine, 0:15:24.320 --> 0:15:26.640 something we also covered at the live virtual event the 0:15:26.640 --> 0:15:30.000 Bloomberg Business Week, and two voices covered it for us, 0:15:30.240 --> 0:15:32.880 both well known to our audience. Our convest Kathy would 0:15:32.880 --> 0:15:35.920 will hear from her shortly. Another individual very familiar to 0:15:36.000 --> 0:15:39.080 our listeners is Raphael Boston. He's president and CEO the 0:15:39.080 --> 0:15:42.320 Federal Reserve Bank of Atlanta are Bloomberg TV and Radio. 0:15:42.440 --> 0:15:46.000 International Economics and Policy Corps sponent Mike McKee caught up 0:15:46.000 --> 0:15:48.520 with him as part of our Business Week Live Summit. 0:15:48.720 --> 0:15:51.880 I'm expecting a fair amount of volatility through the summertime, 0:15:52.240 --> 0:15:55.720 and I think businesses are going to be really evaluating 0:15:55.720 --> 0:15:59.680 their experiences as we see the stimulus payments spent now, 0:15:59.760 --> 0:16:03.920 as we see families uh, really go through that pent 0:16:04.040 --> 0:16:06.800 up demand period. Everyone is really looking to get out 0:16:06.880 --> 0:16:08.840 and be engaged in the economy and all that kind 0:16:08.840 --> 0:16:11.320 of stuff. UM. Once we get that settled down, once 0:16:11.320 --> 0:16:13.080 the kids are back to school, once we start to 0:16:13.120 --> 0:16:16.240 see how families are allocating their their labor and work 0:16:16.240 --> 0:16:18.360 for us UM, then I think we will start to 0:16:19.320 --> 0:16:23.440 get signals from business leaders about UM, how they're thinking 0:16:23.440 --> 0:16:26.000 about their strategies. So I'm going to continue to ask 0:16:26.080 --> 0:16:28.880 as we go through the summer. I'm expecting they're gonna say, well, 0:16:28.920 --> 0:16:32.280 you know, there's a lot going on here, UM, hold on. 0:16:32.640 --> 0:16:35.160 But you know, starting in September and moving in through 0:16:35.200 --> 0:16:37.600 the fall into the wintertime, I think I'll start to 0:16:37.640 --> 0:16:40.320 get some signals that will allow me to answer that question. 0:16:41.120 --> 0:16:43.440 I'm looking forward to coming to the next Atlanta Fed 0:16:43.480 --> 0:16:45.720 Financial Markets conference. But I'm not sure if you're going 0:16:45.760 --> 0:16:48.760 to have Larry Summers come back. He told your conference 0:16:48.840 --> 0:16:51.480 that the fed's new framework policy is a mistake, it's 0:16:51.520 --> 0:16:54.800 too mechanical, and you need to focus on overheating is 0:16:54.880 --> 0:16:57.240 the main risk to the economy. Can you tell me 0:16:57.800 --> 0:17:01.160 where and why you might think he's row So, you know, 0:17:01.240 --> 0:17:04.200 I actually think that what we said in our statement 0:17:04.280 --> 0:17:06.479 is that we're going to let experience be our guide 0:17:07.000 --> 0:17:10.040 and we're not going to be preemptive or proactive to 0:17:10.440 --> 0:17:12.480 stop things that may or may not happen. What we've 0:17:12.480 --> 0:17:15.960 seen over the last ten years is that, um, you know, 0:17:16.040 --> 0:17:20.240 that expectation that inflation was just going to emerge didn't happen, 0:17:20.680 --> 0:17:23.800 and so policy could have a sort of an inappropriate 0:17:24.119 --> 0:17:28.879 or unintended impact on the trajectory of the economy. I 0:17:28.920 --> 0:17:31.280 don't think that the framework says that we're not worried 0:17:31.320 --> 0:17:34.040 about overheating. I think for me, when I see the 0:17:34.040 --> 0:17:36.399 framework and I looked at the words, what it told 0:17:36.440 --> 0:17:39.160 me was that, um, we're going to look for evidence 0:17:39.160 --> 0:17:43.959 of overheating before we move definitively. Uh. And so in 0:17:43.960 --> 0:17:46.720 that regard, I don't think that that Larry is saying 0:17:46.800 --> 0:17:49.600 something that different than us. I think, you know, he 0:17:49.640 --> 0:17:52.880 has his own style of communicating, which is very Larry Summers. 0:17:52.920 --> 0:17:55.680 And you know, I'm not even gonna try to replicate that, 0:17:56.400 --> 0:17:59.080 but but I think people just should understand that for me, 0:17:59.160 --> 0:18:03.719 I actually do worry about both sides of economic performance 0:18:04.119 --> 0:18:07.119 to make sure that UM we are policy is deployed 0:18:07.160 --> 0:18:09.840 in a way that allows us to have a stable, 0:18:10.320 --> 0:18:16.520 predictable and UH and prosper prosperous trajectory for growth. Well, 0:18:16.560 --> 0:18:19.760 Alan Blinder, who you know served at the FED, said 0:18:19.760 --> 0:18:24.200 today he's not entirely unsympathetic to Professor Summers because he says, 0:18:24.480 --> 0:18:26.879 there is a hell of a lot of aggregate demand 0:18:26.880 --> 0:18:31.119 out there chasing less aggregate supply. Do you feel you 0:18:31.160 --> 0:18:33.760 have a good handle on both sides of that enough 0:18:33.840 --> 0:18:37.159 to know whether overheating is taking place in time to 0:18:37.240 --> 0:18:39.399 do something about it? So I actually do. You know, 0:18:39.440 --> 0:18:41.880 one of the things that's been very interesting about this uh, 0:18:41.920 --> 0:18:45.720 this this pandemic UH, and it's actually was evident very 0:18:45.760 --> 0:18:49.919 early on, is that demand has responded much faster to 0:18:50.000 --> 0:18:53.240 the marketplace than supply has. It has taken supply time 0:18:53.320 --> 0:18:55.639 to sort of catch up, and we're seeing this in 0:18:55.920 --> 0:18:58.119 a number of different ways, to whether it be the 0:18:58.119 --> 0:19:02.959 semi conductor is or UH, lumber response for housing, you know, 0:19:03.160 --> 0:19:06.920 or even appliances and their availability for families that are 0:19:06.960 --> 0:19:10.000 looking to upgrade at their homes. Um, the question is 0:19:10.040 --> 0:19:13.880 not whether there's that imbalance that happens initially, is whether 0:19:13.920 --> 0:19:17.000 that persists over time. And as I've talked to business leaders, 0:19:17.040 --> 0:19:19.159 what they've said is that for many of these things, 0:19:19.200 --> 0:19:23.200 they're not expecting them to really last for an extended period, 0:19:23.880 --> 0:19:26.000 so that the dynamic that we're seeing now is not 0:19:26.280 --> 0:19:29.960 that new steady state dynamic. Uh. And so so there's 0:19:29.960 --> 0:19:32.800 a reason to be less concerned. But I do want 0:19:32.800 --> 0:19:35.399 to emphasize again, you know, this is why we talk 0:19:35.480 --> 0:19:37.639 to people on a repeated basis. I want to know 0:19:37.760 --> 0:19:41.040 whether their views on this are changing, because if they 0:19:41.080 --> 0:19:43.399 are changing, then that will lead me to have to 0:19:43.960 --> 0:19:46.520 rethink sort of my approach to where our policy should be. 0:19:46.840 --> 0:19:49.640 You put in place and twy billion dollars a month 0:19:49.680 --> 0:19:52.959 of quantitative easy bond buying a year ago as an 0:19:52.960 --> 0:19:57.200 emergency action, Uh, do we still need that much money? 0:19:57.240 --> 0:20:00.879 Markets are functioning? Bank lending is actually word than it was, 0:20:01.000 --> 0:20:05.200 so it doesn't seem to be adding anything to stimulus 0:20:05.280 --> 0:20:08.240 at this point. Uh, could we do with less than 0:20:08.359 --> 0:20:10.920 that and still have the economy on the same track 0:20:10.960 --> 0:20:13.240 it is today, So that I think that's a fair question, 0:20:13.280 --> 0:20:15.600 and it's something that I'm talking about with my team 0:20:15.680 --> 0:20:18.639 internally right now. I would say I've not come to 0:20:18.960 --> 0:20:21.720 a clear view on this. I do think that as 0:20:21.960 --> 0:20:25.480 we continue to move forward, we continue to see progress 0:20:25.480 --> 0:20:28.560 in the labor market, we see inflation at or above 0:20:28.600 --> 0:20:30.800 our target. Um, this is a question that we're really 0:20:30.800 --> 0:20:33.399 going to have to uh sort of ground ground ourselves. 0:20:33.640 --> 0:20:35.920 That was Dr Raphael Bostick of the Atlanta Fit, a 0:20:36.000 --> 0:20:38.159 voice we listened to very closely. It'll be interesting to 0:20:38.200 --> 0:20:41.320 watch how the central bank strategy develops in the coming months. 0:20:41.680 --> 0:20:44.640 You're listening to Bloomberg business Week. Up next, someone who 0:20:44.720 --> 0:20:46.600 also keeps an eye on what's going on in the 0:20:46.640 --> 0:20:49.800