WEBVTT - Airbnb Sees High Travel Demand and Uber, Lyft Stocks Sink 0:00:02.240 --> 0:00:05.520 From the heart of where innovation, money and power Colli 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.520 Emily Jay. I'm Emily Check in San Francisco, and this 0:00:27.520 --> 0:00:29.800 is Bloomberg Technology. Coming up. In the next hour, the 0:00:29.880 --> 0:00:34.199 Fed unleashes its most aggressive policy in decades to combat 0:00:34.240 --> 0:00:37.160 soaring inflation. Will talk with Liz Young of Sophi about 0:00:37.159 --> 0:00:41.400 what it means for the economy, consumers and tech plus 0:00:41.400 --> 0:00:44.599 substantial demand for travel that is the message from airbnbco 0:00:44.640 --> 0:00:47.839 Brian Chesky after a much better than expected earnings report. 0:00:48.040 --> 0:00:50.400 They'll join me live to talk about how tourism is 0:00:50.600 --> 0:00:54.960 rebounding and that provocative tweet about big changes to Airbnb 0:00:55.240 --> 0:00:59.920 coming and one third of list market cap wipe out 0:01:00.080 --> 0:01:03.160 in a single session. Uber releasing its results early to 0:01:03.200 --> 0:01:06.600 prevent investor dragging them down to still Uber shares taking 0:01:06.640 --> 0:01:10.039 a smaller lugdown even after beating estimates. We're gonna speak 0:01:10.040 --> 0:01:13.280 with Lift president John Zimmer about the market reaction and 0:01:13.319 --> 0:01:15.960 what's next. All of that in a moment, but first 0:01:16.000 --> 0:01:17.360 I want to get a look at the markets and 0:01:17.440 --> 0:01:20.400 a big day for the US economy. The Federal Reserve 0:01:20.480 --> 0:01:24.119 has voted unanimously to raise a benchmark interest rate by 0:01:24.120 --> 0:01:28.600 half a percentage point, stock soaring, bonds rising during FED 0:01:28.600 --> 0:01:31.640 share j Pal's press conference. Bloomberg's Ed Ludlow is here 0:01:31.840 --> 0:01:34.119 with the reaction. I take it away. Yeah, the SMP 0:01:34.240 --> 0:01:37.360 five hundred, the main gauge of US equities rising by 0:01:37.400 --> 0:01:41.000 three percent. It's biggest jump since May really accelerating those 0:01:41.040 --> 0:01:43.520 gains throughout that press conference, as we discussed, and that's 0:01:43.560 --> 0:01:46.560 that one by more than three percent. We saw yields 0:01:46.560 --> 0:01:49.920 pull back, especially the benchmark ten year treasury yield, off 0:01:50.000 --> 0:01:52.440 five pound four basis points to two point nine four percent, 0:01:52.480 --> 0:01:55.080 and it was interesting to see bitcoin also get caught 0:01:55.160 --> 0:01:56.960 up in this kind of risk on sentiment. We saw 0:01:56.960 --> 0:02:00.400 in markets back above thirty nine thousand, pushing towards forty 0:02:00.760 --> 0:02:04.200 dollars per token, caught up as eguties are rising. Now 0:02:04.280 --> 0:02:07.000 come means by Bloombog terminal producer Marguerite points out to 0:02:07.040 --> 0:02:09.880 me that this is the biggest jump in interest rates 0:02:09.919 --> 0:02:12.799 since two thousand. But here's the thing, the focus is 0:02:12.919 --> 0:02:16.000 very much on inflation. The increase the f o m 0:02:16.040 --> 0:02:18.720 c's target federal funds rate takes us to a range 0:02:18.720 --> 0:02:21.560 of zero point five to one. You remember we got 0:02:21.560 --> 0:02:25.200 that quarter percentage point hike in March, but for much 0:02:25.240 --> 0:02:27.760 of the last two years, rates have been near zero 0:02:27.760 --> 0:02:30.400 because the FED was trying to prop up the U 0:02:30.440 --> 0:02:33.400 S economy cushion U S economy from the immediate impacts 0:02:33.440 --> 0:02:37.320 of the COVID nineteen pandemic globally, but the gap between 0:02:37.440 --> 0:02:39.360 rates and where we see inflation, which is at its 0:02:39.440 --> 0:02:42.320 highest level since the eighties, is the most on record, 0:02:42.480 --> 0:02:45.360 the spread between those two measures that we track in 0:02:45.400 --> 0:02:47.800 the US economy and FED power was saying that he 0:02:47.919 --> 0:02:51.000 envisages fifty basis point hikes. At the next couple of meetings, 0:02:51.000 --> 0:02:52.919 he got asked, well, could we see a seventy five 0:02:52.919 --> 0:02:55.480 basis point hike. He said that that was not currently 0:02:55.520 --> 0:02:58.160 being considered by the f O m C. Not the 0:02:58.200 --> 0:03:00.720 only story of the day. M Of course, Lift and 0:03:01.000 --> 0:03:06.160 Uber two very different stories, but similar market reaction. Lift 0:03:06.240 --> 0:03:09.359 off by thirty biggest drop on record, a huge chunk 0:03:09.400 --> 0:03:11.720 of its market cap lost after he gave a pretty 0:03:11.720 --> 0:03:13.960 weak outlook, and there are concerns that it's gonna have 0:03:13.960 --> 0:03:16.840 to spend heavy on driver incentives, which is going to 0:03:16.880 --> 0:03:20.480 weigh on profit. Uber actually showed some strength interesting ebit 0:03:20.560 --> 0:03:23.800 DAR forecast, but again the stock suffering in conjunction with 0:03:23.880 --> 0:03:27.280 its industry peer lift. Big questions now about how these 0:03:27.320 --> 0:03:29.760 two companies and bride Sharing stand on their own two 0:03:29.760 --> 0:03:32.880 feet in this post pandemic world. Then all right, add 0:03:32.919 --> 0:03:35.800 thank you lots to digest today. The Federal Reserve, as 0:03:35.840 --> 0:03:39.080 i'd saying, giving a much needed boost to tech stocks 0:03:39.120 --> 0:03:41.720 by ruling out a more aggressive rate hype path and 0:03:41.760 --> 0:03:45.400 reassuring the US economy will stay strong. As you mentioned, 0:03:45.520 --> 0:03:49.800 NASDAC nearly three biggest one day jump in a week. 0:03:50.160 --> 0:03:52.600 Liz Young, head of investment Strategy, it's so far joined 0:03:52.760 --> 0:03:55.720 us now, So look, lot's going on here. What do 0:03:55.760 --> 0:03:57.760 you think the ripple effects of this are really going 0:03:57.800 --> 0:04:00.000 to be on the macro environment over the next few 0:04:00.040 --> 0:04:04.440 months and the next couple of years. Well, the reality 0:04:04.480 --> 0:04:07.240 of it is that this is the first of probably 0:04:07.280 --> 0:04:10.200 a few larger hikes that we're going to see. It 0:04:10.240 --> 0:04:13.080 was important to get this first big fifty basis point 0:04:13.200 --> 0:04:16.359 hike behind us, because I think the anticipation was really 0:04:16.760 --> 0:04:20.320 killing us as far as investor sentiment goes. But we're 0:04:20.440 --> 0:04:22.680 probably still going to see another fifty in June. We 0:04:22.800 --> 0:04:26.320 may see again another fifty in July. The ripple effects 0:04:26.400 --> 0:04:31.919 of those together should hopefully damp in demand to a 0:04:31.960 --> 0:04:35.040 point that some of this supply demand stuff becomes more 0:04:35.080 --> 0:04:39.400 imbalanced and we see concurrently a rollover in inflation. The 0:04:39.520 --> 0:04:42.200 issue here, and I heard you guys just talking about 0:04:42.240 --> 0:04:45.520 the spread between the tenure Treasury UH and CPI and 0:04:45.760 --> 0:04:48.080 the spread between CPI and where the Fed Funds rate is. 0:04:48.520 --> 0:04:50.839 It's not that we're trying to get the Fed funds 0:04:50.920 --> 0:04:54.560 rate and the CPI rate to meet anytime soon. It's 0:04:54.600 --> 0:04:56.920 that as the Fed funds rate moves up, we want 0:04:56.920 --> 0:04:58.960 CPI to move down, and we want to see that 0:04:59.000 --> 0:05:02.080 move down, hope fully with a quick pace, because that's 0:05:02.080 --> 0:05:04.560 what's biting into the consumer. But the issue that we're 0:05:04.560 --> 0:05:06.600 probably going to face through summer is that we're sitting 0:05:06.640 --> 0:05:08.680 at an eight and a half percent c p I number. 0:05:08.960 --> 0:05:10.960 Even if this is the peak, it's not as if 0:05:11.000 --> 0:05:12.640 it's going to fall from eight and a half percent 0:05:12.720 --> 0:05:15.280 down to three percent overnight, So there's going to be 0:05:15.400 --> 0:05:20.280 a gradual reduction. We're just hopeful that as we raise rates, 0:05:20.279 --> 0:05:22.600 hopefully for fifty basis points, and we go at it 0:05:22.640 --> 0:05:25.279 with a heavy enough hammer, that CPI comes back a 0:05:25.279 --> 0:05:28.520 little faster than the Fed funds rate has to go up. 0:05:29.279 --> 0:05:31.599 So look, tech equities are among many stocks that have 0:05:31.680 --> 0:05:35.440 taken a giant hit this year. What does this mean 0:05:35.520 --> 0:05:39.880 for tech stocks in particular? So tech stocks, if we 0:05:40.000 --> 0:05:42.680 just use the nasdack to represent tech stocks, the Nasdaq 0:05:42.800 --> 0:05:45.920 is in bear market territory. Maybe after today it's narrowly 0:05:46.040 --> 0:05:50.520 out of bear market territory, but it probably should have been. 0:05:50.600 --> 0:05:54.240 And given where evaluations were before we started to really 0:05:54.240 --> 0:05:57.599 worry about Fed rate hikes and monetary policy tightening, some 0:05:57.760 --> 0:06:00.240 of that needed to come out of the system. Some 0:06:00.320 --> 0:06:02.960 of that bloat needed to come out of the system. 0:06:03.200 --> 0:06:05.160 So the correction that tech stocks have seen to this 0:06:05.279 --> 0:06:08.919 point I think makes sense given the inflated valuations that 0:06:08.960 --> 0:06:11.960 we're at. Also, when you look though at some of 0:06:12.000 --> 0:06:15.480 those tech stocks, they're still at pretty high valuation. So 0:06:15.839 --> 0:06:17.680 I wouldn't sit here and say that they're not going 0:06:17.720 --> 0:06:19.840 to go down further and that there isn't more risk 0:06:19.920 --> 0:06:23.280 in the system. But long term, if we look back 0:06:23.320 --> 0:06:25.840 on this time period, let's say five years from now, 0:06:26.080 --> 0:06:27.880 we're probably gonna look at it and say, you know what, 0:06:28.040 --> 0:06:31.359 some of those names were really good bargains at those levels. 0:06:31.640 --> 0:06:34.640 So this isn't okay. Time to be looking at tech 0:06:34.839 --> 0:06:37.640 as a longer term holding, and longer term here I'm 0:06:37.680 --> 0:06:40.920 talking about two years, three years, five years, looking at 0:06:40.920 --> 0:06:43.359 it as a long term holding, and looking for the 0:06:43.360 --> 0:06:46.240 companies that are high quality, that are still offering you 0:06:46.360 --> 0:06:50.200 growth prospects, and that aren't over levered or aren't trading 0:06:50.240 --> 0:06:53.279 at unreasonable valuations given where we are in the cycle. 0:06:53.520 --> 0:06:56.400 So I think it's okay, just come towing back in. Okay, 0:06:56.440 --> 0:06:58.039 how do you look at a company like Lift though 0:06:58.120 --> 0:07:02.760 losing of its value, Ubers earnings, We're a different story, 0:07:02.800 --> 0:07:06.000 but we're also seeing them take a slight leg down today. 0:07:06.120 --> 0:07:08.640 Investors are looking at you know, both of these companies 0:07:08.680 --> 0:07:13.160 as a gauge of the health of the consumer, right well, 0:07:13.320 --> 0:07:14.760 and I think there's a lot of different ways to 0:07:14.760 --> 0:07:17.080 look at the gauge of the health of the consumer. 0:07:17.120 --> 0:07:19.560 I think what we're seeing is that, because as I mentioned, 0:07:19.560 --> 0:07:21.720 a lot of that bloat came out of the system. 0:07:21.760 --> 0:07:25.000 Now you're seeing companies actually react in the stock market 0:07:25.160 --> 0:07:29.040 based on fundamentals. So we've gotten not as much of 0:07:29.040 --> 0:07:32.200 a tail wind from low rates, and you see earnings 0:07:32.200 --> 0:07:35.160 come out and companies are reacting to that. Generally speaking, 0:07:35.200 --> 0:07:37.960 the market overreacts in the short term. I also happened 0:07:38.000 --> 0:07:40.120 to think that this big rally we saw after the 0:07:40.120 --> 0:07:43.000 FED meeting today was a slight overreaction and we probably 0:07:43.040 --> 0:07:45.760 end up giving some of that back. So it's possible 0:07:45.800 --> 0:07:48.160 that we just need the dusk to settle on some 0:07:48.240 --> 0:07:50.160 of these companies that have drawn down quite a bit 0:07:50.200 --> 0:07:53.320 more after earnings reports. But frankly, I want to see 0:07:53.360 --> 0:07:55.520 the market react to earnings. I want to see the 0:07:55.560 --> 0:07:59.440 market actually paying attention to fundamentals and wanting to get 0:07:59.480 --> 0:08:02.320 what it paid is for and holding companies more accountable 0:08:02.320 --> 0:08:05.360 from a fundamental perspective instead of just relying on the 0:08:05.360 --> 0:08:08.400 macro backdrop to drive prices. On the other hand, I'm 0:08:08.440 --> 0:08:12.360 about to talk to Airbnb CEO Brian Chesky. Airbnb seeing 0:08:12.440 --> 0:08:15.920 substantial demand through the rest of the year. They say, 0:08:16.280 --> 0:08:17.920 you know, are you at all concerned that some of 0:08:17.960 --> 0:08:20.840 the demand companies are seeing is pent up demand coming 0:08:20.920 --> 0:08:23.000 out of the pandemic and that we're going to see 0:08:23.040 --> 0:08:29.320 another reordering as we move into next year. Well, depending 0:08:29.400 --> 0:08:31.760 on the sector that we're talking about, I think the 0:08:31.800 --> 0:08:34.480 travel sector is still seeing some of that pent up 0:08:34.640 --> 0:08:38.680 demand that people had been waiting to unleash once they could. 0:08:39.160 --> 0:08:41.200 The problem that the travel sector is going to face 0:08:41.280 --> 0:08:44.160 in this inflationary environment is that prices are going up. 0:08:44.280 --> 0:08:47.400 Flights are more expensive, hotels are more expensive. All of 0:08:47.400 --> 0:08:50.040 the experiences that we were hoping to have are more 0:08:50.080 --> 0:08:51.959 expensive than they were a year ago. So I think 0:08:51.960 --> 0:08:54.560 people are going to start to make different decisions on 0:08:54.640 --> 0:08:57.840 that front. As far as pent up demand, as like 0:08:57.880 --> 0:09:00.800 if we're looking at goods companies, looking at consumers actually 0:09:00.800 --> 0:09:04.360 buying things in stores or things online, I think a 0:09:04.360 --> 0:09:07.119 lot of that pent up demand has already been unleashed, 0:09:07.360 --> 0:09:09.440 and now we're in a place where we can see 0:09:09.480 --> 0:09:11.559 steady demand. But I don't know that we're going to 0:09:11.640 --> 0:09:15.640 see again that huge surgeon demand that we saw when 0:09:15.679 --> 0:09:17.640 things started to open back up for the first time. 0:09:18.360 --> 0:09:21.800 All right, Liz Young sopha ahead of Investment Strategy. Great 0:09:21.800 --> 0:09:33.880 to have you back here on the show. Thank you everyone, 0:09:34.120 --> 0:09:37.120 it seems wants to get away. Travel experts expect this 0:09:37.160 --> 0:09:39.760 summer to be one of the best the industry has 0:09:39.800 --> 0:09:44.240 seen after two years of pandemic lockdown. If Airbnb's earnings 0:09:44.320 --> 0:09:46.920 or any indication it will be a busy summer indeed, 0:09:46.960 --> 0:09:51.240 with CEO Brian Chesky seeing quote higher than historical demand, 0:09:51.320 --> 0:09:53.880 joining us now to talk about that more. Airbnb CEO 0:09:53.960 --> 0:09:56.400 and co founder Brian Chesky himself Grime. Great to have 0:09:56.520 --> 0:09:59.800 you back on the show as always. I know some 0:10:00.040 --> 0:10:04.040 of the trends you're seeing surpassed even your internal expectations. 0:10:04.120 --> 0:10:08.280 What surprised you most about the demand you're seeing? Well, 0:10:08.320 --> 0:10:10.480 I think what surprised me maybe the most, was that 0:10:10.520 --> 0:10:13.440 I was expecting last year to be the biggest traveler 0:10:13.520 --> 0:10:15.920 rebound that we had probably ever seen in a century. 0:10:15.960 --> 0:10:18.880 You've never seen so much pent up demand, and I 0:10:18.920 --> 0:10:21.600 think that that surprised me is we're seeing potentially even 0:10:21.640 --> 0:10:24.760 more pent up demand this year, and maybe that's not surprising. 0:10:24.760 --> 0:10:27.360 I think people weren't quite comfortable crossing borders, and yet 0:10:27.400 --> 0:10:29.880 the delta strained, and I think you're gonna see this 0:10:30.000 --> 0:10:33.520 summer travel season unlike we've ever seen before. And the 0:10:33.520 --> 0:10:35.920 thing about travel is there are some things when they're 0:10:35.960 --> 0:10:37.959 taken away from you, you kind of don't want to 0:10:38.000 --> 0:10:39.880 do them again. I don't think that's travel. I think 0:10:39.920 --> 0:10:41.920 the longer people can't travel, the more they want to travel. 0:10:41.920 --> 0:10:44.840 The morning bushes they get, so you use the words 0:10:44.920 --> 0:10:47.360 pent up demand there. And I'm curious how you think 0:10:47.440 --> 0:10:50.720 this summer might compare to next summer. For example, are 0:10:50.760 --> 0:10:53.280 you expecting the growth rate to slow down after people 0:10:53.520 --> 0:10:57.320 get this out of their system a little bit? Um No, 0:10:57.440 --> 0:10:59.960 I don't think so. I mean, number one, Asia probably 0:11:00.040 --> 0:11:02.800 won't recover right away. It's going to take some time. 0:11:02.920 --> 0:11:05.120 And you know that's where the large percent of the 0:11:05.120 --> 0:11:07.880 world population lives. So I think that next year you're 0:11:07.880 --> 0:11:10.000 going to see a huge amount of growth coming from Asia. 0:11:10.040 --> 0:11:11.920 It's gonna be a little slower this year. We have 0:11:11.960 --> 0:11:14.240 a lot of pent up demand for Europe and North America. 0:11:14.559 --> 0:11:17.240 The thing Emily that would just say is this, there 0:11:17.280 --> 0:11:20.679 are new use cases that are here to stay. People 0:11:20.720 --> 0:11:23.920 traveling to rural areas, people staying longer, people staying at 0:11:24.000 --> 0:11:26.680 me for a month or longer. But then our bread 0:11:26.679 --> 0:11:29.280 and butter historically has been cross border and urban and 0:11:29.320 --> 0:11:32.480 that is now back at or above two thou levels. 0:11:32.520 --> 0:11:35.240 So we're seeing a combination of the old trends coming 0:11:35.280 --> 0:11:38.560 back plus new trends sustaining. That's going to continue, and 0:11:38.559 --> 0:11:40.960 then eventually you're gonna have other geographies like Asia comes 0:11:41.000 --> 0:11:43.800 So I'm pretty bullish the next couple years. How strong 0:11:43.880 --> 0:11:46.839 is the consumer in your opinion, because obviously, with inflation, 0:11:47.600 --> 0:11:49.720 the cost of flights are going up, the cost of 0:11:49.720 --> 0:11:52.319 travel more broadly is going up, And I wonder if 0:11:52.320 --> 0:11:55.160 you think is there a point where inflation catches up 0:11:55.440 --> 0:11:59.720 with the consumer and overwhelmed that pent up demand. I 0:11:59.760 --> 0:12:03.080 think that it could affect travel more broadly, but I 0:12:03.080 --> 0:12:06.000 think it's very important for me to distinguish our business. 0:12:06.480 --> 0:12:09.640 You know, during the pandemic, we recovered faster than any 0:12:09.640 --> 0:12:12.960 travel company. That's clear. I don't think that's a controversial statement. 0:12:12.960 --> 0:12:15.880 And why is that. It's because we have nearly every 0:12:15.880 --> 0:12:18.400 type of space and nearly every community at nearly every 0:12:18.400 --> 0:12:21.520 price point. So when people feel like they can't fly 0:12:21.840 --> 0:12:23.959 they can't afford to fly, they can still get in 0:12:24.000 --> 0:12:25.960 a car and book an air nearby. And I do 0:12:26.000 --> 0:12:27.320 think a lot of people still want to go to 0:12:27.360 --> 0:12:30.240 the house. Airbing b's are typically still cheaper than a hotel, 0:12:30.600 --> 0:12:33.200 and so we're pretty resilient no matter how changing travel 0:12:33.280 --> 0:12:37.880 the man occurs. Lift meantime is getting pummeled today investors 0:12:37.920 --> 0:12:42.160 not excited about their outlook. Obviously a different company, but 0:12:42.280 --> 0:12:45.880 another sort of measure of consumer sentiment, and I wonder 0:12:46.000 --> 0:12:48.839 how you read that, you know, given that people need 0:12:48.920 --> 0:12:51.600 this kind of transportation to get from place to place airbing, 0:12:51.640 --> 0:12:55.920 b or not. I think that every company is different, 0:12:56.000 --> 0:12:58.480 and so I think that, Um, I think that the 0:12:58.600 --> 0:13:01.880 phenomenon of how people we're moving within cities is pretty 0:13:01.960 --> 0:13:06.080 distinct from the phenomenon of people traveling. And yes, people 0:13:06.120 --> 0:13:09.000 do need uh you know, transportation within markets. But the 0:13:09.040 --> 0:13:11.240 thing I would just know is about half our business 0:13:11.320 --> 0:13:13.600 are for stays outside of cities, right, so we have 0:13:13.600 --> 0:13:16.720 a lot of vacation rentals rural areas where ridesharing would 0:13:16.760 --> 0:13:20.160 not be very prolific. Well, on that note, you are 0:13:20.160 --> 0:13:22.680 saying huge demand for homes, and I wonder how that's 0:13:22.679 --> 0:13:25.680 translating into demand for urban travel. When do you think 0:13:26.000 --> 0:13:30.440 tourism in cities will fully rebound. Well, it's already fully 0:13:30.520 --> 0:13:33.920 I mean it's already above at this very moment with Airbnb. 0:13:34.400 --> 0:13:36.680 I can't say it's above for everyone. I don't know 0:13:36.679 --> 0:13:39.200 if hotels are back to twenteen levels, but we are, 0:13:39.280 --> 0:13:41.720 so I think it's already back. I think the summer 0:13:41.760 --> 0:13:44.640 it will be back. But Emily, here's the difference. Before 0:13:44.679 --> 0:13:48.360 the pandemic really our business was dominated by urban areas 0:13:48.480 --> 0:13:50.600 and the way people travel. They would go to Vegas 0:13:50.720 --> 0:13:54.360 or Los Angeles, or Rome or Paris. Now they're consideration 0:13:54.440 --> 0:13:57.800 set involves hundreds thousand places all over the world. They're 0:13:57.840 --> 0:14:00.120 open to national parks, They're going to rural area to 0:14:00.160 --> 0:14:02.480 go into small towns, so there's just a lot wider 0:14:02.480 --> 0:14:06.559 options now. Asking about the Apack region, the Apack region 0:14:06.880 --> 0:14:10.119 still struggling with COVID, what steps are you taking their 0:14:10.200 --> 0:14:13.160 to use your financial resources widely in that region where 0:14:13.160 --> 0:14:16.560 there isn't much demand. Do you see things improving there? 0:14:17.280 --> 0:14:21.400 But they are gradually improving. But money can't fix the problem. 0:14:21.560 --> 0:14:23.480 People just need to get comfortable traveling and you need 0:14:23.520 --> 0:14:27.160 to start crossing borders again. That is inevitable. People will 0:14:27.200 --> 0:14:30.360 eventually cross borders and travel in Asia more than they 0:14:30.400 --> 0:14:33.360 ever have before. But until they're comfortable, that's not something 0:14:33.400 --> 0:14:35.360 we can fix with money. The best thing we can 0:14:35.400 --> 0:14:37.560 do is wait for that market to be ready. It 0:14:37.600 --> 0:14:39.920 will certainly start coming back this year. I think you're 0:14:39.920 --> 0:14:43.640 gonna see a much bigger rebound for Asia probably next year. 0:14:43.680 --> 0:14:46.360 But again that those questions are kind of beyond me. 0:14:46.400 --> 0:14:49.080 This is really more a matter of where the recovery 0:14:49.120 --> 0:14:51.720 is for the pandemic in those countries. Okay, So let's 0:14:51.720 --> 0:14:54.040 talk about something that's not beyond you, and that is 0:14:54.120 --> 0:14:58.800 your work from Anywhere policy. You've announced that Airbnb employees 0:14:58.840 --> 0:15:02.520 can work from anywhere, and I'm curious how you think 0:15:02.600 --> 0:15:07.200 that will impact recruiting and impact hiring. Well, I can. 0:15:07.560 --> 0:15:11.920 I'll give you one stat So we announced last thursday, 0:15:12.200 --> 0:15:16.280 um it was April that you know, employees of Airbnb 0:15:16.400 --> 0:15:19.360 can now work, live and work anywhere in the world. 0:15:19.760 --> 0:15:22.120 If you move within the country you work, We're not 0:15:22.120 --> 0:15:24.120 going to reduce your pay. A lot of companies do 0:15:24.240 --> 0:15:26.880 location based pay. We don't do that. Within the country. 0:15:27.080 --> 0:15:28.920 You can go to a hundred and seventy different countries, 0:15:28.960 --> 0:15:31.840 live for nine days at a time. Since that announcement, 0:15:32.280 --> 0:15:35.200 more than a hundred thousand visits have come to our 0:15:35.320 --> 0:15:38.000 Jobs and Careers page. A hundred thousand. So I think 0:15:38.080 --> 0:15:40.400 that gives you a sense. What it tells me is 0:15:40.440 --> 0:15:44.400 that flexibility is the future. After compensation, Flexibly will be 0:15:44.440 --> 0:15:48.480 the most important benefit employers can offer. The best people 0:15:48.480 --> 0:15:50.600 aren't just in Silken Valley. They're not just in New York. 0:15:50.640 --> 0:15:53.400 The best people are now everywhere in any company that 0:15:53.480 --> 0:15:56.080 limits their talent pool to a commuting radius around their 0:15:56.120 --> 0:16:00.640 office will be at a disadvantage. You justin now an 0:16:00.680 --> 0:16:05.480 anti party crackdown, tightening up restrictions around Memorial Day and 0:16:05.600 --> 0:16:09.440 July fourth. You know, still given despite the moves that 0:16:09.480 --> 0:16:12.400 AIRBNBA has been making, we've seen people evade the rules. 0:16:12.440 --> 0:16:14.680 We saw what happened in Pittsburgh and is shooting at 0:16:14.720 --> 0:16:19.200 an Airbnb that's sadly uh, you know, killed two teenagers. Um, 0:16:19.200 --> 0:16:22.560 what more steps do you think Airbnb could take in 0:16:22.600 --> 0:16:26.280 this arena to make sure that people are always safe 0:16:26.400 --> 0:16:29.640 when they're staying at an Airbnb. Yeah, well number one, Emily, 0:16:29.960 --> 0:16:31.680 you just said it. We want to make sure that 0:16:31.720 --> 0:16:34.480 people always feel safe when they're an Airbnb. And the 0:16:34.560 --> 0:16:36.280 name of the game is we can always do more, 0:16:36.320 --> 0:16:38.400 and we're always trying to do more than we've done before. 0:16:38.760 --> 0:16:42.520 So what we've done is we background check everyone United States, 0:16:42.560 --> 0:16:46.760 every guest and host. We have a risky reservation system 0:16:46.800 --> 0:16:50.720 where where we put reservations on high alert during certain holidays. 0:16:50.760 --> 0:16:53.080 So this Memorial Day and this July we're going to 0:16:53.160 --> 0:16:56.000 be very much on high alert about parties. We've banned 0:16:56.040 --> 0:16:59.200 party houses, meaning you can't get an Airbnb for more 0:16:59.240 --> 0:17:01.680 than sixteen people in a house that's deemed a party. 0:17:01.920 --> 0:17:03.920 And so we're doing a lot of things. We're gonna 0:17:03.960 --> 0:17:06.720 continue to get more and more aggressive. Um. The good 0:17:06.720 --> 0:17:09.600 news is the incident rate has steadily been going down 0:17:09.720 --> 0:17:13.080 over time. The bad news is one incident is always 0:17:13.080 --> 0:17:15.040 one too many, so we have to continue to work 0:17:15.040 --> 0:17:18.480 really hard. So you tweeted that you will be announcing 0:17:18.480 --> 0:17:22.280 the biggest change to Airbnb in a decade next week. 0:17:22.320 --> 0:17:24.320 We're all on the edge of our seats. What more 0:17:24.320 --> 0:17:27.240 can you tell us? Yeah, you want me to say 0:17:27.280 --> 0:17:30.879 it right now, I'll just I'll just yeah, I'll just 0:17:30.920 --> 0:17:33.840 say this. Number One, I'm really excited because we have 0:17:34.000 --> 0:17:36.720 the biggest updates to our product in ten years. We've 0:17:36.760 --> 0:17:38.840 been thinking about this for a very long period of time. 0:17:39.240 --> 0:17:40.560 I can't say a lot, but I'll just give a 0:17:40.640 --> 0:17:42.760 couple of clues. Number One, there will be a whole 0:17:42.760 --> 0:17:44.960 new way to search on Airbnb, and this new way 0:17:45.000 --> 0:17:46.280 to search, it's going to be a new way to 0:17:46.320 --> 0:17:49.359 find really interesting homes. And then the second thing is 0:17:49.400 --> 0:17:52.200 we're gonna have a big step change to our service 0:17:52.280 --> 0:17:54.760 level and the kind of customer service we offer. You'll 0:17:54.800 --> 0:17:57.240 see a number of updates next week. I'm really excited 0:17:57.280 --> 0:18:00.359 about it. It's May eleven, nine A M. E. Stern 0:18:00.520 --> 0:18:02.680 Right on our homepage. There will be a small video, 0:18:02.720 --> 0:18:04.399 a short video, and you can get all the updates. 0:18:04.400 --> 0:18:07.159 Then we will be watching. I got to ask you 0:18:07.160 --> 0:18:10.120 about crypto payments. I know that was a top suggestion 0:18:10.680 --> 0:18:13.200 from your users. What progress have you made on that? 0:18:14.240 --> 0:18:17.800 We've We've We've been steadily making progress, um in so 0:18:17.960 --> 0:18:20.480 far that we've certainly researched it. We've looked at a 0:18:20.560 --> 0:18:23.960 number of ways that crypto could be used. Obviously, it's 0:18:24.000 --> 0:18:26.960 a popular request for people to all pay with crypto 0:18:27.119 --> 0:18:29.840 or be receiving money with crypto. But that's all about 0:18:29.880 --> 0:18:32.560 all I can say right now. So look, you know, 0:18:32.600 --> 0:18:35.200 I know you've also been tweeting about web three and 0:18:35.320 --> 0:18:38.440 you know, curious about what it does and does not mean. 0:18:38.880 --> 0:18:41.280 How do you see, you know, web three or crypto 0:18:41.400 --> 0:18:44.399 opening up new possibilities for innovation or are some of 0:18:44.440 --> 0:18:50.119 these technologies potentially overhyped? Well? I think both are very possible, right. 0:18:50.160 --> 0:18:53.880 I mean, I was not around during the dot com days. 0:18:53.920 --> 0:18:57.000 I was in design school at the time, but um, 0:18:57.160 --> 0:18:59.520 most of the companies during the dot Com era aren't around. 0:18:59.720 --> 0:19:02.480 That being said, almost all the ideas from dot Com 0:19:02.480 --> 0:19:06.639 that didn't work now work in some later incarnation, So 0:19:06.840 --> 0:19:09.520 I think that's the technology is really exciting. I think 0:19:09.560 --> 0:19:12.000 the idea of empowering people over the world is really 0:19:12.000 --> 0:19:14.720 exciting as well. But I also do think that, like 0:19:14.880 --> 0:19:17.560 any new emerging technology, the vast majority companies will probably 0:19:17.600 --> 0:19:19.600 not be around the future, but the ones that will 0:19:19.640 --> 0:19:21.560 be around could be really really large. Look at the 0:19:21.600 --> 0:19:24.240 dot com bubble, Amazon emerged from that. It was a 0:19:24.320 --> 0:19:26.440 huge company. So I do think there will be really 0:19:26.520 --> 0:19:29.440 large companies emerging. But just like you know, there's a 0:19:29.440 --> 0:19:33.960 lot of speculation. All right, Well, looking forward to next week. 0:19:34.240 --> 0:19:37.879 Brian open to speak with you again then May eleven. 0:19:37.920 --> 0:19:41.280 Brian Chesky, CEO of air VnB. As always, thank you 0:19:41.400 --> 0:19:46.159 for taking the time today. Coming up, why father? That 0:19:46.280 --> 0:19:49.480 is a question being asked inside Twitter right now ahead 0:19:49.520 --> 0:19:51.560 of an impending sale that Elon Musk. More on what 0:19:51.560 --> 0:19:56.639 the company is doing to motivate staffers next, This is Bloomberg. 0:20:14.680 --> 0:20:17.240 A few other stories were continuing to watch Twitter doing 0:20:17.280 --> 0:20:20.679 its best to quell concerns employees ahead of the Elon 0:20:20.760 --> 0:20:24.800 Musk pending acquisition. At an internal meeting, Twitter's VP of 0:20:24.840 --> 0:20:28.000 product tried to appeal to worker sense of community, saying 0:20:28.040 --> 0:20:31.119 they have a responsibility to each other. This according to 0:20:31.160 --> 0:20:35.320 people familiar with the matter. Twitter, which employs more than people, 0:20:35.520 --> 0:20:39.000 warned about a possible staff exodus and a regulatory filing 0:20:39.040 --> 0:20:43.159 this week. Musk has suggested cutting costs, including layoffs, as 0:20:43.200 --> 0:20:46.440 part of his plan to grow Twitter. The Securities and 0:20:46.480 --> 0:20:52.040 Exchange Commission is investigating Deity's chaotic debut in New York. 0:20:52.280 --> 0:20:55.600 That is, when the ridehailing giant raised four point four 0:20:55.840 --> 0:21:00.480 billion dollars days before revelations of China's probe into data 0:21:00.560 --> 0:21:05.960 security tank The stock before today DEDE had fallen since 0:21:06.040 --> 0:21:10.119 last summer's I P O, and the White House is 0:21:10.160 --> 0:21:13.320 boosting support for quantum computing is trying to pours billions 0:21:13.320 --> 0:21:16.640 into the next generation technology. President Biden signing a couple 0:21:16.680 --> 0:21:21.040