1
00:00:05,800 --> 00:00:08,720
Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm Pim Fox.

2
00:00:08,760 --> 00:00:11,520
Speaker 1: Along with my co host Lisa Bramowitz. Each day we

3
00:00:11,640 --> 00:00:15,120
Speaker 1: bring you the most important, noteworthy, and useful interviews for

4
00:00:15,200 --> 00:00:17,840
Speaker 1: you and your money, whether you're at the grocery store

5
00:00:17,960 --> 00:00:20,720
Speaker 1: or the trading floor. Find the Bloomberg P M L

6
00:00:20,840 --> 00:00:34,160
Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Humana

7
00:00:34,400 --> 00:00:37,519
Speaker 1: has joined together with TPG and Welsh Carson and a

8
00:00:37,600 --> 00:00:42,199
Speaker 1: four point one billion dollar bid for Kindred. It is

9
00:00:42,320 --> 00:00:47,040
Speaker 1: a healthcare and hospice and various medical service provider. Here

10
00:00:47,080 --> 00:00:50,040
Speaker 1: to explain more and better than I could is Max Neeson,

11
00:00:50,120 --> 00:00:53,760
Speaker 1: who covers the biotech, farma and healthcare industries for us

12
00:00:53,760 --> 00:00:56,720
Speaker 1: here at Bloomberg gad Fly and always has fantastic insights

13
00:00:57,360 --> 00:01:02,480
Speaker 1: into these worlds. So give us your take on this transaction. Sure,

14
00:01:02,560 --> 00:01:05,920
Speaker 1: So it's some kind of pretty interesting and complex transaction.

15
00:01:05,920 --> 00:01:08,319
Speaker 1: They're gonna take this business, which is, you know, the

16
00:01:08,319 --> 00:01:11,280
Speaker 1: combination of those home care and hospice assets and then

17
00:01:11,400 --> 00:01:14,360
Speaker 1: specialty hospitals and kind of splitting them in half. So

18
00:01:14,440 --> 00:01:17,120
Speaker 1: those those private equity companies will run a new special

19
00:01:17,360 --> 00:01:20,959
Speaker 1: specialty hospital company, and human Uh is gonna enter into

20
00:01:21,080 --> 00:01:23,679
Speaker 1: joint venture with them on the home care stuff. And

21
00:01:23,920 --> 00:01:26,119
Speaker 1: the reason that Human had got involved is, um, they're

22
00:01:26,120 --> 00:01:30,120
Speaker 1: really big into Medicare, Medicare advantage, and um, you know

23
00:01:30,160 --> 00:01:33,640
Speaker 1: they want these kind of home care assets in order

24
00:01:33,640 --> 00:01:37,000
Speaker 1: to basically care for more people at home, prevent them

25
00:01:37,040 --> 00:01:40,199
Speaker 1: from getting to the hospital, and generally find ways to

26
00:01:40,200 --> 00:01:43,200
Speaker 1: to bring costs down because once you get into the hospital,

27
00:01:43,440 --> 00:01:45,720
Speaker 1: as anyone who's ever made it their nos, it gets

28
00:01:45,760 --> 00:01:49,400
Speaker 1: really really expensive. Quickly, can you comment on this idea

29
00:01:49,480 --> 00:01:53,360
Speaker 1: that Medicare which obviously available to people over the age

30
00:01:53,360 --> 00:01:57,040
Speaker 1: of sixty and in some cases younger than sixty, But

31
00:01:58,040 --> 00:02:03,640
Speaker 1: if Medicare is going to cover certain kinds of hospitalization

32
00:02:03,800 --> 00:02:07,800
Speaker 1: but not certain types of home care, is that going

33
00:02:07,840 --> 00:02:09,919
Speaker 1: to have to change in order to make this merger

34
00:02:10,000 --> 00:02:13,880
Speaker 1: make any sense? This combination. Yeah, so so reimbursement with

35
00:02:13,880 --> 00:02:17,280
Speaker 1: with Medicare is always pretty tricky, but I imagined Human

36
00:02:17,639 --> 00:02:21,240
Speaker 1: had that in mind. You know, certain things that at

37
00:02:21,240 --> 00:02:22,720
Speaker 1: the end of the day, even if they have to

38
00:02:22,760 --> 00:02:25,600
Speaker 1: cover more of the costs themselves, the cost of paying

39
00:02:25,639 --> 00:02:28,560
Speaker 1: for some of the home care relative to being built

40
00:02:28,560 --> 00:02:31,280
Speaker 1: at the hospital is probably so vast that they'll they'll

41
00:02:31,280 --> 00:02:34,600
Speaker 1: take that any day, I want to ask you about

42
00:02:34,639 --> 00:02:38,720
Speaker 1: this concept that Humanna as an insurance provider, is getting

43
00:02:38,840 --> 00:02:42,720
Speaker 1: into the healthcare business directly. I mean, we kind of

44
00:02:42,760 --> 00:02:48,080
Speaker 1: saw that, um with the CVS merger, but this is

45
00:02:48,120 --> 00:02:50,840
Speaker 1: a whole new ball game, right, I mean, what's the

46
00:02:50,880 --> 00:02:54,160
Speaker 1: what's the logic here? Um, So this is the logic

47
00:02:54,240 --> 00:02:56,640
Speaker 1: that that particularly United Health has been following for a

48
00:02:56,680 --> 00:02:59,960
Speaker 1: long time. Basically, when you have kind of this integrat

49
00:03:00,000 --> 00:03:03,240
Speaker 1: aided model where you're both to insure and the provider, UM,

50
00:03:03,280 --> 00:03:05,920
Speaker 1: you can direct people to to your kind of in

51
00:03:06,040 --> 00:03:09,639
Speaker 1: house providers, which you know, it's it's a lower cost option.

52
00:03:09,919 --> 00:03:12,280
Speaker 1: They're not taking, you know, an extra bit of profit.

53
00:03:12,360 --> 00:03:15,680
Speaker 1: It's all the same company, and UM, they're gonna basically

54
00:03:15,720 --> 00:03:19,200
Speaker 1: do the the procedures that you want in the order

55
00:03:19,240 --> 00:03:21,240
Speaker 1: you want them, for the people you want. I also

56
00:03:21,320 --> 00:03:24,880
Speaker 1: provide you a lot of data about your enrollees and um,

57
00:03:24,919 --> 00:03:27,600
Speaker 1: you know, the marketplace in general, so you can provide

58
00:03:27,639 --> 00:03:30,720
Speaker 1: care at a lower cost and price your insurance products better.

59
00:03:31,480 --> 00:03:34,040
Speaker 1: Are there any big insurance companies that haven't made a

60
00:03:34,080 --> 00:03:36,960
Speaker 1: move like this that you expect to at some point

61
00:03:36,960 --> 00:03:39,280
Speaker 1: in the near future. I mean, I I've been expecting

62
00:03:39,440 --> 00:03:41,920
Speaker 1: that this from human or from another company for for

63
00:03:42,080 --> 00:03:45,280
Speaker 1: some time, basically because you just look at how successful

64
00:03:45,440 --> 00:03:47,840
Speaker 1: United Health has been. UM. I think I have a

65
00:03:47,920 --> 00:03:51,480
Speaker 1: chart in my latest column. Their optim unit alone books

66
00:03:51,520 --> 00:03:54,920
Speaker 1: more revenue than UM or just about as much as

67
00:03:54,960 --> 00:03:57,560
Speaker 1: one bit more than most of the other large insurance

68
00:03:57,560 --> 00:04:00,080
Speaker 1: companies in the United States. And also they've written the

69
00:04:00,160 --> 00:04:02,880
Speaker 1: kind of cost savings and analytic benefits of that to

70
00:04:03,360 --> 00:04:06,360
Speaker 1: becoming the largest health insurer in the United States. It's

71
00:04:06,360 --> 00:04:08,480
Speaker 1: worked incredibly well for them. I'm a little surprised to

72
00:04:08,560 --> 00:04:11,440
Speaker 1: taken other insurers so long to emulate them, and now

73
00:04:11,480 --> 00:04:14,280
Speaker 1: you finally have you know, the big and a CVS deal,

74
00:04:14,360 --> 00:04:16,960
Speaker 1: which which is an interesting step, and and then HUMANO

75
00:04:17,040 --> 00:04:20,039
Speaker 1: were just taking kind of a narrower targeted approach aimed

76
00:04:20,080 --> 00:04:22,800
Speaker 1: at a particular market medicare in this case. Is this

77
00:04:22,880 --> 00:04:27,920
Speaker 1: good or bad for hospitals? Uh, this is bad for hospitals. UM.

78
00:04:28,000 --> 00:04:32,280
Speaker 1: You know they're not going to say, I need to

79
00:04:32,279 --> 00:04:35,279
Speaker 1: think this is terrific for them. So you know, any

80
00:04:35,360 --> 00:04:39,840
Speaker 1: time when insure, you know, has UM more leverage, is

81
00:04:39,920 --> 00:04:42,960
Speaker 1: doing more of the hospital's job themselves, that that's not good.

82
00:04:43,320 --> 00:04:44,520
Speaker 1: I mean, part of the reason that you had such

83
00:04:44,560 --> 00:04:48,680
Speaker 1: aggressive hospital consolidation. You know two reasons. One to kind

84
00:04:48,680 --> 00:04:51,360
Speaker 1: of fight back about against insures that are ever larger

85
00:04:51,360 --> 00:04:53,760
Speaker 1: and more powerful and have you know, can push back

86
00:04:53,760 --> 00:04:57,799
Speaker 1: on reimbursement. And also to kind of prevent patient leakage,

87
00:04:58,000 --> 00:05:00,800
Speaker 1: so patients from leaving your health her system to go

88
00:05:00,920 --> 00:05:04,000
Speaker 1: somewhere else. Um. You know, if if you own everything

89
00:05:04,040 --> 00:05:06,120
Speaker 1: in area, they can't go anywhere else. That's why you

90
00:05:06,120 --> 00:05:08,880
Speaker 1: have this consultation. But now if ensures own you know,

91
00:05:08,920 --> 00:05:12,080
Speaker 1: their own providers and are actively pushing people there that

92
00:05:12,080 --> 00:05:15,760
Speaker 1: that's pretty bad for prospitals. And just quickly, what about

93
00:05:15,800 --> 00:05:20,480
Speaker 1: for people that are not necessarily in these insurance plans? Um,

94
00:05:20,520 --> 00:05:23,159
Speaker 1: you know, that gets a little trickier for them. You

95
00:05:23,160 --> 00:05:26,240
Speaker 1: you don't get the same kind of discount or or

96
00:05:26,279 --> 00:05:28,400
Speaker 1: synergy when you're when you're trying to, you know, use

97
00:05:28,440 --> 00:05:31,920
Speaker 1: a human owned product and you're on another company's insurance,

98
00:05:32,640 --> 00:05:35,320
Speaker 1: probably gonna be a little more expensive. All right, Thanks

99
00:05:35,400 --> 00:05:38,520
Speaker 1: very much. Max Neeson are Bloomberg gadfly when it comes

100
00:05:38,520 --> 00:05:41,719
Speaker 1: to all things related to healthcare. I encourage you to

101
00:05:42,160 --> 00:05:46,160
Speaker 1: read his columns on Bloomberg dot com. Max Neison, thanks

102
00:05:46,200 --> 00:05:50,200
Speaker 1: very much for being here. It's really fascinating combination, and

103
00:05:50,279 --> 00:05:52,800
Speaker 1: Humana is known as the number two seller of private

104
00:05:52,800 --> 00:05:55,040
Speaker 1: health coverage plans for the elder lace. This is a

105
00:05:55,120 --> 00:05:58,719
Speaker 1: Medicare advantage program, so it sort of explains their focus

106
00:05:58,720 --> 00:06:17,000
Speaker 1: here him, I have been struck by the degree of

107
00:06:17,200 --> 00:06:20,880
Speaker 1: consensus when it comes to US stocks next year and

108
00:06:20,920 --> 00:06:25,839
Speaker 1: frankly stocks globally in eighteen. Everyone seems to think it

109
00:06:25,880 --> 00:06:29,560
Speaker 1: will be a great year, another banner year for equities.

110
00:06:29,600 --> 00:06:32,159
Speaker 1: Here to tell us what he thinks is Alberto Gallo,

111
00:06:32,279 --> 00:06:36,560
Speaker 1: portfolio manager and head of macro strategies at Algebra Algebra Investments,

112
00:06:36,760 --> 00:06:39,640
Speaker 1: and he joins us now. Alberto, thank you so much

113
00:06:39,680 --> 00:06:42,640
Speaker 1: for being with us. Good morning. So are you as

114
00:06:42,680 --> 00:06:45,880
Speaker 1: bullish as everybody else in the world is. I think

115
00:06:45,920 --> 00:06:48,599
Speaker 1: there is a lot of consensus both for equities to

116
00:06:48,640 --> 00:06:51,440
Speaker 1: go higher in the US and also non US equities,

117
00:06:51,520 --> 00:06:54,400
Speaker 1: as well as for interest rates to gradually move up

118
00:06:54,440 --> 00:06:56,919
Speaker 1: in an orderly path. There's a lot of things that

119
00:06:56,960 --> 00:06:59,800
Speaker 1: can go wrong. We are coming from nine years of

120
00:07:00,120 --> 00:07:03,479
Speaker 1: QUEI with central banks holding the hands of markets, and

121
00:07:03,680 --> 00:07:06,600
Speaker 1: I'm not sure the transition to a world with less

122
00:07:06,640 --> 00:07:08,760
Speaker 1: QUEI is going to be so orderly. So we could

123
00:07:08,839 --> 00:07:11,679
Speaker 1: have basically we have three risks. One is a sharper

124
00:07:11,680 --> 00:07:14,600
Speaker 1: return of inflation rock in the market. A second one

125
00:07:14,640 --> 00:07:17,120
Speaker 1: is central bankers are getting a bit more hawkish and

126
00:07:17,160 --> 00:07:20,480
Speaker 1: worried about financial stability across the world. And then the

127
00:07:20,480 --> 00:07:24,800
Speaker 1: third one is geopolitics with North Korea, with Iran and

128
00:07:25,080 --> 00:07:27,960
Speaker 1: Saudi Arabia and a lot of other hotspots in the world.

129
00:07:28,720 --> 00:07:32,360
Speaker 1: And we feel the market is underprising all the risks

130
00:07:32,440 --> 00:07:35,240
Speaker 1: and still living in a goldilocks world. And that's a

131
00:07:35,280 --> 00:07:39,800
Speaker 1: little bit. It's a red it's a red flag for us.

132
00:07:39,800 --> 00:07:42,680
Speaker 1: One of the title of one of your most recent reports,

133
00:07:42,880 --> 00:07:46,680
Speaker 1: The Silver Bullet, is irrational complacency. Then how do you

134
00:07:46,760 --> 00:07:52,040
Speaker 1: invest for irrational complacency? It is It is a conundrum

135
00:07:52,080 --> 00:07:54,960
Speaker 1: for a portfolio manager to construct a portfolio in an

136
00:07:55,080 --> 00:07:58,800
Speaker 1: environment where there is a lot of assets which are overvalued.

137
00:07:58,880 --> 00:08:02,120
Speaker 1: You have to try to distinguish assets that are overvalued

138
00:08:02,280 --> 00:08:06,160
Speaker 1: versus bubbles. And I think the behavior of investors is

139
00:08:06,240 --> 00:08:10,800
Speaker 1: very important. Where you see assets where you have flipping,

140
00:08:10,840 --> 00:08:13,640
Speaker 1: where you have financial engineering, where you have investors have

141
00:08:13,720 --> 00:08:17,720
Speaker 1: never invested in their lives going in, then you're looking

142
00:08:17,760 --> 00:08:22,080
Speaker 1: at the bubble. Other assets are simply a little bit overvalued,

143
00:08:22,120 --> 00:08:25,600
Speaker 1: but may have more room to run. So we are UM.

144
00:08:25,720 --> 00:08:29,240
Speaker 1: We don't know when the crisis, when the next correction

145
00:08:29,320 --> 00:08:33,520
Speaker 1: will will strike, but we're trying to construct our portfolios

146
00:08:33,600 --> 00:08:40,840
Speaker 1: with less exposure to UM downside and buying upside exposure

147
00:08:40,960 --> 00:08:44,559
Speaker 1: through options by limiting potential downside by investing a limited

148
00:08:44,640 --> 00:08:50,000
Speaker 1: premium in UH upside optionality, but having a limited loss

149
00:08:50,040 --> 00:08:53,080
Speaker 1: if things go south. Because we have we've come from

150
00:08:53,120 --> 00:08:56,920
Speaker 1: an environment of very, very low volatility. Let's let's remember

151
00:08:56,960 --> 00:08:59,320
Speaker 1: q not only moved us the prices higher, but also

152
00:08:59,320 --> 00:09:03,840
Speaker 1: pushed investors to sell volatility. Alberto, you said that you

153
00:09:03,920 --> 00:09:08,240
Speaker 1: are concerned about financial stability and at the risk of

154
00:09:08,320 --> 00:09:11,040
Speaker 1: some kind of threat to it next year could be

155
00:09:11,240 --> 00:09:14,360
Speaker 1: more significant than the markets are currently pricing in. What

156
00:09:14,559 --> 00:09:19,760
Speaker 1: asset class is particularly vulnerable in some sort of disruption

157
00:09:19,760 --> 00:09:23,240
Speaker 1: to financial stability right now? I would say there is

158
00:09:23,240 --> 00:09:27,480
Speaker 1: a pyramid of asset classes that have been distorted by QUEI.

159
00:09:27,640 --> 00:09:31,600
Speaker 1: At the bottom you have rates markets bonds, so you've

160
00:09:31,640 --> 00:09:34,880
Speaker 1: got eleven trillion of bonds globally that have negative interest

161
00:09:35,000 --> 00:09:38,960
Speaker 1: rates as central bankers normalized interest rates. These are are vulnerable.

162
00:09:39,040 --> 00:09:41,360
Speaker 1: Then there is a middle section of the pyramid, which

163
00:09:41,640 --> 00:09:44,400
Speaker 1: is the assets that people bought because they couldn't find

164
00:09:44,440 --> 00:09:47,400
Speaker 1: yield in government bonds. So these are high yield bonds

165
00:09:47,480 --> 00:09:50,719
Speaker 1: or investment greate debt. There's eight trillion of them, and

166
00:09:50,760 --> 00:09:53,559
Speaker 1: they are not a negative interest rates, but they are

167
00:09:53,720 --> 00:09:56,840
Speaker 1: very very low credit spreads. Then the tip of the

168
00:09:56,880 --> 00:10:02,080
Speaker 1: pyramid is strategies that are designed to sell volatility. Basically,

169
00:10:02,080 --> 00:10:05,240
Speaker 1: they bet that tomorrow the market that will be as

170
00:10:05,360 --> 00:10:09,040
Speaker 1: quiet as good as today, and this is something that

171
00:10:09,080 --> 00:10:12,560
Speaker 1: we estimate to be around two point one trillion dollars. Now,

172
00:10:12,640 --> 00:10:15,840
Speaker 1: to put this into context, subprime was two point four

173
00:10:16,000 --> 00:10:20,200
Speaker 1: trillion dollars when the credit crisis struck in two dozen

174
00:10:20,280 --> 00:10:23,240
Speaker 1: and eight. So two point one trillion dollars in short

175
00:10:23,320 --> 00:10:27,720
Speaker 1: volatility strategies is a substantial amount um and it could

176
00:10:27,800 --> 00:10:31,520
Speaker 1: cause a risk to financial stability. So if investors tomorrow

177
00:10:32,280 --> 00:10:35,320
Speaker 1: um realized that the future is not going to be

178
00:10:35,360 --> 00:10:37,760
Speaker 1: as calm as it has been for the last nine years,

179
00:10:38,040 --> 00:10:41,440
Speaker 1: then these strategies may be unwound more quickly than the

180
00:10:41,440 --> 00:10:44,760
Speaker 1: market is expecting today. So we are we are worried

181
00:10:44,760 --> 00:10:47,680
Speaker 1: about this, this pyramid of trades, at the bottom of

182
00:10:47,679 --> 00:10:50,480
Speaker 1: which there is kewy. Okay, So this these two point

183
00:10:50,520 --> 00:10:55,559
Speaker 1: one trillion dollars of short volatility funds? Are these hedge funds,

184
00:10:55,559 --> 00:10:58,120
Speaker 1: are these mutual funds? What are the forms that you

185
00:10:58,160 --> 00:11:01,000
Speaker 1: see them in and who are the biggest asset managers involved?

186
00:11:02,000 --> 00:11:06,640
Speaker 1: But there's a variety of strategies. Some directly sell volatility,

187
00:11:06,800 --> 00:11:10,200
Speaker 1: so shorting futures, and we are talking about a small

188
00:11:10,240 --> 00:11:13,880
Speaker 1: amount in the range of a billion. But there's also

189
00:11:13,920 --> 00:11:18,760
Speaker 1: strategies that are more institutional and larger and UM routinely

190
00:11:18,840 --> 00:11:23,199
Speaker 1: sell volatility for yield or strategies that reliab alatility to

191
00:11:23,320 --> 00:11:28,280
Speaker 1: stay low UH to perform. So there's a variety of

192
00:11:28,559 --> 00:11:32,360
Speaker 1: UM of strategies we we we UH don't have an

193
00:11:32,360 --> 00:11:36,480
Speaker 1: exact estimate, but it is an amount large enough to

194
00:11:36,520 --> 00:11:40,200
Speaker 1: create a problem for financial stability. Generally, I wouldn't go

195
00:11:40,280 --> 00:11:43,000
Speaker 1: into specifics on on the asset managers, but I would

196
00:11:43,000 --> 00:11:45,560
Speaker 1: say that regulators in two thousands and eight and following

197
00:11:45,559 --> 00:11:48,880
Speaker 1: the crisis have been focusing on banks, have been regulating banks,

198
00:11:48,920 --> 00:11:52,880
Speaker 1: increasing capital requirements. But in the meantime, asset managers have

199
00:11:52,920 --> 00:11:55,600
Speaker 1: been taken more and more risk to justify their fees

200
00:11:56,200 --> 00:11:59,240
Speaker 1: as yields have gone lower. And we think that today

201
00:11:59,320 --> 00:12:03,240
Speaker 1: the asset management industry has and also, both passive and

202
00:12:03,280 --> 00:12:07,520
Speaker 1: active has more risks than UM UH than the banks.

203
00:12:07,640 --> 00:12:11,320
Speaker 1: Bank risks have moved from banks to to UH, to

204
00:12:11,440 --> 00:12:14,480
Speaker 1: the by side, to the asset management industry. And another

205
00:12:14,520 --> 00:12:17,480
Speaker 1: phenomenon that comes with this is there's been a an

206
00:12:17,520 --> 00:12:20,920
Speaker 1: increase in passive investing and hurting, so everyone going for

207
00:12:21,080 --> 00:12:24,760
Speaker 1: the same trade. Alberto, I'm gonna put you on the

208
00:12:24,840 --> 00:12:28,240
Speaker 1: spot here because in November I read an article in

209
00:12:28,280 --> 00:12:32,640
Speaker 1: the Financial Times about your boss, Davide Sarah, the head

210
00:12:32,640 --> 00:12:35,760
Speaker 1: of Algebras, and he's quoted as saying, I have an

211
00:12:35,840 --> 00:12:40,760
Speaker 1: Italian heart but a British brain. What what does that mean,

212
00:12:40,840 --> 00:12:46,760
Speaker 1: at least to you? Well, I think the team. I

213
00:12:46,760 --> 00:12:50,679
Speaker 1: think what we try to do is to have a

214
00:12:50,800 --> 00:12:56,200
Speaker 1: very organized UM risk management UH culture here. While you know,

215
00:12:56,280 --> 00:13:01,440
Speaker 1: investing in very risky sectors UM are DNA comes from

216
00:13:01,480 --> 00:13:05,440
Speaker 1: investing in risky bonds, like how your debt, you have

217
00:13:05,559 --> 00:13:09,320
Speaker 1: to have very strong I think the Italian UM part

218
00:13:09,400 --> 00:13:12,520
Speaker 1: comes in having strong views on the market, but you

219
00:13:12,600 --> 00:13:15,880
Speaker 1: have to also combine them with UH, you know, with

220
00:13:16,040 --> 00:13:19,720
Speaker 1: numbers and risk management. And it's a bit of a stereotype,

221
00:13:19,720 --> 00:13:22,240
Speaker 1: but that's what we're trying to do here. We're going

222
00:13:22,240 --> 00:13:24,760
Speaker 1: in a very sky market, we have to have strong

223
00:13:24,840 --> 00:13:29,040
Speaker 1: views to outperform on Um countries and names that have

224
00:13:29,200 --> 00:13:31,480
Speaker 1: done well. We've you know, we've done very well this year,

225
00:13:31,559 --> 00:13:35,240
Speaker 1: like Greece or Portugal, or Ecuador or Argentina. But going

226
00:13:35,280 --> 00:13:38,240
Speaker 1: into next year, we have to couple that with some

227
00:13:38,440 --> 00:13:41,720
Speaker 1: risk management. Thanks very much for being with us. Alberto

228
00:13:41,800 --> 00:13:47,400
Speaker 1: Gallo is portfolio manager ahead of macro Strategies at Algebra's Investments.

229
00:13:47,600 --> 00:14:05,480
Speaker 1: Joining us from London, I am so excited for this

230
00:14:05,559 --> 00:14:08,840
Speaker 1: next segment. Joining us as Ethereum co founder Joseph Lubin.

231
00:14:08,960 --> 00:14:12,720
Speaker 1: He is uh one of the founders of the Global

232
00:14:13,000 --> 00:14:16,599
Speaker 1: Blockchain of Ethereum, but also he is a founder of

233
00:14:16,640 --> 00:14:19,360
Speaker 1: global blockchain Specialist Consensus, and he joins us here in

234
00:14:19,400 --> 00:14:22,080
Speaker 1: our eleven three studios. Joseph, thank you so much for

235
00:14:22,160 --> 00:14:24,840
Speaker 1: being here. Thanks for having me. I want to start

236
00:14:25,000 --> 00:14:28,360
Speaker 1: with energy consumption because there have been a number of

237
00:14:28,400 --> 00:14:33,200
Speaker 1: articles talking about how bitcoin consumes so much energy that

238
00:14:33,240 --> 00:14:37,720
Speaker 1: it's equal to the entire output of Denmark currently and

239
00:14:37,760 --> 00:14:40,880
Speaker 1: that it will just surge continually. I know Ethereum consumes

240
00:14:41,000 --> 00:14:42,640
Speaker 1: less energy, but what do you say to people who

241
00:14:42,680 --> 00:14:46,120
Speaker 1: say bitcoin is killing our earth? So I'm not sure

242
00:14:46,160 --> 00:14:48,760
Speaker 1: that statistic is true. UM. There are lots of people

243
00:14:48,800 --> 00:14:54,480
Speaker 1: who who are a little hyperbolic about that issue. UM,

244
00:14:54,520 --> 00:14:59,880
Speaker 1: but U Bitcoin and our network ethereum do indeed burn

245
00:15:00,000 --> 00:15:02,400
Speaker 1: a lot of electricity. They do that in order to

246
00:15:02,560 --> 00:15:09,360
Speaker 1: establish trust in these infrastructures. UM. The traditional financial industry

247
00:15:09,480 --> 00:15:12,720
Speaker 1: also burns a lot of electricity and occupies a lot

248
00:15:12,760 --> 00:15:16,880
Speaker 1: of real estate. And uh um it uh I would

249
00:15:16,960 --> 00:15:20,600
Speaker 1: argue as many orders of magnitude less efficient than UM

250
00:15:20,640 --> 00:15:25,320
Speaker 1: these systems. The theorem itself is actually aware of this issue,

251
00:15:25,360 --> 00:15:27,760
Speaker 1: has been aware right from the start. We intended to

252
00:15:27,840 --> 00:15:31,680
Speaker 1: move from the inefficient proof of work system, which burns

253
00:15:31,720 --> 00:15:34,120
Speaker 1: a lot of electricity. Hold on, let's back up proof

254
00:15:34,160 --> 00:15:37,520
Speaker 1: of work. You mean basically this idea that any change

255
00:15:37,680 --> 00:15:40,760
Speaker 1: in the blockchain is uploaded at the same time to

256
00:15:41,040 --> 00:15:45,040
Speaker 1: every system, uh, every network that is kind of in

257
00:15:45,240 --> 00:15:49,080
Speaker 1: the in the sphere. So trust is achieved by having

258
00:15:49,160 --> 00:15:53,080
Speaker 1: massive redundancy among a lot of nodes on this peer

259
00:15:53,080 --> 00:15:56,200
Speaker 1: to peer network UM. In order to keep them in sync,

260
00:15:56,400 --> 00:16:00,280
Speaker 1: you need some sort of consensus formation mechanism. And in

261
00:16:00,320 --> 00:16:02,800
Speaker 1: these consensus mechanisms, you have to elect a leader, and

262
00:16:02,840 --> 00:16:04,760
Speaker 1: you have to have people follow on behind the leader.

263
00:16:04,840 --> 00:16:07,040
Speaker 1: So a proof of work system which burns a lot

264
00:16:07,040 --> 00:16:11,000
Speaker 1: of electricity is what enables the election of that leader

265
00:16:11,120 --> 00:16:14,520
Speaker 1: or the the winning of the leading position. That's true

266
00:16:14,520 --> 00:16:17,320
Speaker 1: in bitcoin, that's true and Ethereum currently the theorem is

267
00:16:17,360 --> 00:16:22,480
Speaker 1: moving away from expensive hardware, burning of electricity, a lot

268
00:16:22,480 --> 00:16:25,720
Speaker 1: of wasteful computation to a system called proof of steak

269
00:16:25,800 --> 00:16:30,080
Speaker 1: which replaces all of that waste with a system that

270
00:16:30,720 --> 00:16:34,360
Speaker 1: is facilitated by an economic bond basically money that you

271
00:16:34,400 --> 00:16:37,320
Speaker 1: place in a smart contract on the blockchain in order

272
00:16:37,760 --> 00:16:42,320
Speaker 1: to enable um YouTube probabilistically be selected to be a

273
00:16:42,440 --> 00:16:46,840
Speaker 1: leader for a next round. Joseph Luban, I'm gonna just

274
00:16:47,480 --> 00:16:50,440
Speaker 1: sort of take a off ramp for just a second

275
00:16:50,520 --> 00:16:53,560
Speaker 1: because I need and just to mention as the founder

276
00:16:53,640 --> 00:16:57,760
Speaker 1: of consensus, Uh, you're working in a variety of different

277
00:16:57,880 --> 00:17:01,680
Speaker 1: kind of areas of related to block chain. What how

278
00:17:01,720 --> 00:17:04,240
Speaker 1: would you describe or is there a good analogy that

279
00:17:04,320 --> 00:17:06,679
Speaker 1: you can offer so we can understand what is a

280
00:17:06,840 --> 00:17:13,560
Speaker 1: distributed application platform and why is that relevant to understanding

281
00:17:13,720 --> 00:17:18,920
Speaker 1: all of this conversation about bitcoin or blockchain technology. So

282
00:17:18,960 --> 00:17:24,440
Speaker 1: Ethereum is a platform that enables decentralized applications. UM we

283
00:17:24,600 --> 00:17:26,920
Speaker 1: like to think of it as one element of becoming

284
00:17:27,000 --> 00:17:30,000
Speaker 1: decentralized Worldwide Web or the Web three point oh. It

285
00:17:30,040 --> 00:17:34,399
Speaker 1: will be the infrastructure for trusted transactions, for automated agreements.

286
00:17:34,400 --> 00:17:38,320
Speaker 1: There are other elements of decentralizing technology like decentralized storage,

287
00:17:38,320 --> 00:17:44,200
Speaker 1: decentralized bandwidth, decentralized high throughput compute, UM and UH. These

288
00:17:44,240 --> 00:17:46,960
Speaker 1: sort of elements will enable us to move away from

289
00:17:47,000 --> 00:17:51,600
Speaker 1: a business versus consumer kind of infrastructure for delivering services

290
00:17:52,400 --> 00:17:57,880
Speaker 1: to infrastructures on protocol driven open platforms that have lots

291
00:17:57,880 --> 00:18:01,280
Speaker 1: of different actors in different roles in insided markets and

292
00:18:01,359 --> 00:18:06,840
Speaker 1: basically emerging ecosystems that offer sets of services to consumers.

293
00:18:06,920 --> 00:18:10,600
Speaker 1: So none of those will there be um an actor

294
00:18:10,640 --> 00:18:14,320
Speaker 1: that's overly controlling or overly monetizing. So, for example, let's

295
00:18:14,320 --> 00:18:18,680
Speaker 1: say you wanted to make a purchase of a product overseas.

296
00:18:19,440 --> 00:18:23,520
Speaker 1: The bank or banking institutions, whether they be with the

297
00:18:23,560 --> 00:18:28,280
Speaker 1: buyer and the seller, they currently are in between the

298
00:18:28,440 --> 00:18:33,600
Speaker 1: two intermediaries to intermediaries, right, So you what you're saying

299
00:18:33,720 --> 00:18:37,119
Speaker 1: is that this new platform is a step in the

300
00:18:37,160 --> 00:18:42,120
Speaker 1: direction of getting rid of those banks in between, so

301
00:18:42,160 --> 00:18:46,560
Speaker 1: that now you can in a trusted way transact business

302
00:18:46,920 --> 00:18:51,000
Speaker 1: financial business directly between the buyer and seller with knowing

303
00:18:51,080 --> 00:18:54,359
Speaker 1: to me absolutely. So we've stood up a bunch of

304
00:18:54,400 --> 00:18:57,000
Speaker 1: different platforms. They're in different states of maturities. Some of

305
00:18:57,040 --> 00:19:00,640
Speaker 1: them are launched on the Ethereum blockchain already. Um they

306
00:19:00,800 --> 00:19:04,200
Speaker 1: enable certain intermediaries to be squeezed out of the situation,

307
00:19:04,400 --> 00:19:08,480
Speaker 1: or certain amounts of value that intermediaries pull from the

308
00:19:08,520 --> 00:19:12,440
Speaker 1: infrastructure to be right sized because there's less friction less,

309
00:19:12,520 --> 00:19:16,240
Speaker 1: less rent seeking possible. So we built platforms for prediction

310
00:19:16,280 --> 00:19:20,800
Speaker 1: markets or wisdom markets. We built an adjacent music industry platform.

311
00:19:20,840 --> 00:19:24,200
Speaker 1: We've built a supply chain platform. We've built a fixed

312
00:19:24,240 --> 00:19:26,880
Speaker 1: income reference data platform. So we're kind of all over

313
00:19:26,920 --> 00:19:29,399
Speaker 1: the map. We've got about twenty five different projects along

314
00:19:29,440 --> 00:19:32,080
Speaker 1: those lines. You're gonna have to spend more time with us,

315
00:19:32,160 --> 00:19:37,160
Speaker 1: because I'm just slightly beginning to understand and that's dangerous,

316
00:19:37,200 --> 00:19:39,720
Speaker 1: as I'm sure you know. Thank you very much for

317
00:19:39,800 --> 00:19:42,960
Speaker 1: being here. Joseph Luban is the founder of a Consensus

318
00:19:43,320 --> 00:19:46,520
Speaker 1: and he can be followed on Twitter at Ethereum Joseph,

319
00:19:46,680 --> 00:19:51,080
Speaker 1: or at Ethereum project or at Consensus. Thank you welcome

320
00:20:04,320 --> 00:20:07,639
Speaker 1: a burger that doesn't have any meat in it that

321
00:20:07,680 --> 00:20:10,199
Speaker 1: doesn't require killing an animal that tastes as good as

322
00:20:10,280 --> 00:20:14,400
Speaker 1: one that does. Impossible or perhaps the impossible Burger? Would

323
00:20:14,400 --> 00:20:17,199
Speaker 1: you would you think of that him? He's really his eyes. No,

324
00:20:17,359 --> 00:20:22,119
Speaker 1: I'm smiling. I like the Impossible Food enjoining us to

325
00:20:22,200 --> 00:20:26,840
Speaker 1: talk about the impossible foods. The Impossible Burger is David Lee,

326
00:20:27,080 --> 00:20:32,480
Speaker 1: chief operating officer and chief financial officer of Impossible Food. So, David,

327
00:20:32,600 --> 00:20:37,199
Speaker 1: what is the impossible Burger? Well, the impossible Burger is

328
00:20:37,240 --> 00:20:40,800
Speaker 1: the only plant based burger that half the time hardcore

329
00:20:40,920 --> 00:20:44,359
Speaker 1: meat eaters prefer blind versus a burger from a cow.

330
00:20:44,440 --> 00:20:48,919
Speaker 1: It's it's this miracle burger that uses less land and

331
00:20:49,080 --> 00:20:52,000
Speaker 1: only a quarter of the water and releases a fraction

332
00:20:52,040 --> 00:20:54,399
Speaker 1: of the greenhouse gases. What's it made out of? So

333
00:20:54,480 --> 00:20:57,400
Speaker 1: this burger is entirely made out of plants. And what's

334
00:20:57,440 --> 00:21:00,560
Speaker 1: interesting about it is it's four major ingredients are designed

335
00:21:00,560 --> 00:21:03,760
Speaker 1: to be affordable and accessible at scale, and they're natural.

336
00:21:04,200 --> 00:21:06,960
Speaker 1: So there's nothing synthetic or strange about this burger. It's

337
00:21:06,960 --> 00:21:09,040
Speaker 1: it just makes for a craveable burger for a meat

338
00:21:09,080 --> 00:21:11,879
Speaker 1: eater entirely made out of plants. Okay, let's let's just

339
00:21:11,960 --> 00:21:14,840
Speaker 1: talk a little bit about the science if we can. Uh.

340
00:21:14,880 --> 00:21:20,199
Speaker 1: This was founded in by Patrick Brown right at the

341
00:21:20,359 --> 00:21:26,560
Speaker 1: Stanford Okay. And what is the process by which you

342
00:21:26,720 --> 00:21:31,800
Speaker 1: create the impossible uh burger? I want to get to

343
00:21:31,880 --> 00:21:35,800
Speaker 1: this idea of using hem as a term. And it

344
00:21:35,920 --> 00:21:39,720
Speaker 1: is an iron compound and iron based compound that hemoglobin

345
00:21:39,960 --> 00:21:42,480
Speaker 1: is the way I understand right. So so Pat Brown

346
00:21:42,760 --> 00:21:45,720
Speaker 1: to your point. Six years ago, working very hard over

347
00:21:45,760 --> 00:21:49,640
Speaker 1: a period of four years, with a number of great scientists, discovered,

348
00:21:49,680 --> 00:21:52,639
Speaker 1: among other things, what makes me taste and feel and

349
00:21:52,760 --> 00:21:56,080
Speaker 1: smell like meat. And it turns out this magic molecule

350
00:21:56,240 --> 00:21:59,160
Speaker 1: hem h E m E is the only thing that

351
00:21:59,200 --> 00:22:02,800
Speaker 1: can make eat seem meaty to a meat eater. Um.

352
00:22:02,840 --> 00:22:05,760
Speaker 1: And then not only did he discover this, he discovered that,

353
00:22:05,800 --> 00:22:07,520
Speaker 1: you know, he is a building block of life. It's

354
00:22:07,520 --> 00:22:10,040
Speaker 1: in my globe, boom and animals, it's in hem global

355
00:22:10,119 --> 00:22:14,119
Speaker 1: in us, but it's also in plants. Um. Lastly, he

356
00:22:14,200 --> 00:22:18,520
Speaker 1: figured out a way, using a great industrial process, fermentation,

357
00:22:18,960 --> 00:22:22,960
Speaker 1: to make this magic molecule originally found in a plant,

358
00:22:23,400 --> 00:22:27,160
Speaker 1: scalable and affordable and at high quality. And that's how

359
00:22:27,200 --> 00:22:30,399
Speaker 1: that's how this burger is delicious for meat eaters. So

360
00:22:30,560 --> 00:22:35,679
Speaker 1: Impossible Foods is still currently just selling it's uh me

361
00:22:35,840 --> 00:22:38,680
Speaker 1: to put in quotes h two restaurants, Is that correct,

362
00:22:38,720 --> 00:22:40,679
Speaker 1: It's not sort of in the grocery storage. Yeah. For

363
00:22:40,760 --> 00:22:43,160
Speaker 1: now we are serving that half of the US ground

364
00:22:43,160 --> 00:22:46,440
Speaker 1: beef market, which is sold through food service and restaurants.

365
00:22:46,480 --> 00:22:48,600
Speaker 1: So I just want to talk about the vision here

366
00:22:48,640 --> 00:22:51,520
Speaker 1: because I know that Bill Gates is an investor in

367
00:22:51,720 --> 00:22:55,879
Speaker 1: the company. Of course, Bill Gates known from founding Microsoft. Um,

368
00:22:55,960 --> 00:22:58,679
Speaker 1: what's the sort of ambition, what's the sort of longer

369
00:22:58,800 --> 00:23:02,320
Speaker 1: term plan here for hospital fits? Well, our investors are

370
00:23:02,320 --> 00:23:05,800
Speaker 1: aligned to the very large ambition we have. We want

371
00:23:05,840 --> 00:23:08,240
Speaker 1: our impact to be seen from outer space. We want

372
00:23:08,280 --> 00:23:12,119
Speaker 1: every meat eater on the planet to happily choose an

373
00:23:12,119 --> 00:23:15,840
Speaker 1: impossible version of meat made entirely out of plants. Because

374
00:23:15,840 --> 00:23:17,840
Speaker 1: if we can do that, then we can use a

375
00:23:17,840 --> 00:23:21,920
Speaker 1: fraction of the world's resources while providing that delicious, cravable

376
00:23:21,920 --> 00:23:23,879
Speaker 1: taste that we all know meat eaters are not going

377
00:23:23,920 --> 00:23:26,960
Speaker 1: to forego. That's the ambition of the company, and I

378
00:23:26,960 --> 00:23:29,200
Speaker 1: would imagine the ambition is also to make some money,

379
00:23:29,200 --> 00:23:31,800
Speaker 1: because you've raised more than a quarter billions so far

380
00:23:31,880 --> 00:23:34,600
Speaker 1: in venture capital. I believe, like two hundred and fifty

381
00:23:34,760 --> 00:23:38,600
Speaker 1: seven millions that well, our investor base goes beyond venture capital.

382
00:23:38,720 --> 00:23:41,840
Speaker 1: It certainly does include great vcs like CoA, STLA, but

383
00:23:41,840 --> 00:23:46,520
Speaker 1: it now includes sovereign wealth funds Singapore. Right, that's right,

384
00:23:46,560 --> 00:23:49,000
Speaker 1: and on our investor base to your point, they're terribly

385
00:23:49,080 --> 00:23:52,040
Speaker 1: interested in the size of business we're building, and we

386
00:23:52,080 --> 00:23:55,320
Speaker 1: believe this financial engine that we're creating, to your point,

387
00:23:55,720 --> 00:23:58,440
Speaker 1: is what's required to fund the mission. So absolutely we're

388
00:23:58,440 --> 00:24:03,119
Speaker 1: interested in business in return. What's the cost of impossible

389
00:24:03,480 --> 00:24:08,439
Speaker 1: meat in quotes relative to uh similar grade of beef.

390
00:24:08,880 --> 00:24:11,600
Speaker 1: So we like to point out that since our burger

391
00:24:11,720 --> 00:24:15,600
Speaker 1: uses you know, less land and only a quarter of

392
00:24:15,600 --> 00:24:19,520
Speaker 1: the water, that small amount of resources translates into a

393
00:24:19,840 --> 00:24:23,120
Speaker 1: burger that can be extremely cost competitive. Um. So, while

394
00:24:23,160 --> 00:24:26,560
Speaker 1: we aren't releasing actual figures, the reality is we wouldn't

395
00:24:26,600 --> 00:24:29,720
Speaker 1: be successful as a business or for our mission if

396
00:24:29,760 --> 00:24:33,679
Speaker 1: we can't serve the globe extremely cost efficiently as or

397
00:24:33,720 --> 00:24:37,040
Speaker 1: below the cost of commodity ground beef at scale. David,

398
00:24:37,640 --> 00:24:40,919
Speaker 1: you're you've got a production facility that's being constructed, I

399
00:24:40,960 --> 00:24:43,520
Speaker 1: believe in Oakland right now. It's actually for the last

400
00:24:43,520 --> 00:24:46,200
Speaker 1: two months pump and running. Okay, if we went there,

401
00:24:46,280 --> 00:24:49,199
Speaker 1: what would we see? What would we smell? First, you

402
00:24:49,240 --> 00:24:52,240
Speaker 1: are welcome to come. Here's what you wouldn't see or smell.

403
00:24:52,359 --> 00:24:55,200
Speaker 1: You wouldn't see a slaughterhouse. You wouldn't see the expense

404
00:24:55,240 --> 00:24:58,280
Speaker 1: associated with shipping animals. What you would see is an

405
00:24:58,320 --> 00:25:04,280
Speaker 1: extremely clean, of efficient, simple finished goods manufacturing facility. One

406
00:25:04,359 --> 00:25:07,960
Speaker 1: by the way, that reused in existing bakery of all things.

407
00:25:08,280 --> 00:25:10,000
Speaker 1: Because our mission is to make sure that we do

408
00:25:10,119 --> 00:25:12,960
Speaker 1: things as sustainably and cost efficiently as possible. Right, But

409
00:25:13,040 --> 00:25:14,639
Speaker 1: what what would we see? I mean? What is it

410
00:25:14,680 --> 00:25:20,040
Speaker 1: a production line? Is it a huge extruding machines? What

411
00:25:20,200 --> 00:25:23,720
Speaker 1: kind of it's nearly seventy square feet it you'll see

412
00:25:23,760 --> 00:25:27,000
Speaker 1: produced off the line up to one point four million

413
00:25:27,040 --> 00:25:29,679
Speaker 1: pounds a month when we're at capacity today, you know

414
00:25:29,680 --> 00:25:31,920
Speaker 1: we're ramping up. It's only been open for two months,

415
00:25:32,000 --> 00:25:34,720
Speaker 1: but you would see real product being shipped off the

416
00:25:34,760 --> 00:25:37,680
Speaker 1: line to two more and more customers. So is the

417
00:25:37,760 --> 00:25:42,880
Speaker 1: idea or is the possibility here simply ground beef or

418
00:25:42,920 --> 00:25:46,879
Speaker 1: could there be some kind of replica of different cuts

419
00:25:46,920 --> 00:25:51,360
Speaker 1: and sort of The more intact slices of beef are

420
00:25:51,440 --> 00:25:54,040
Speaker 1: are you know, our mission and ambition goes way beyond

421
00:25:54,119 --> 00:25:56,800
Speaker 1: impossible burger. You know, we have the technology to do

422
00:25:56,840 --> 00:26:02,920
Speaker 1: plant based chicken, plant based fish, pork, even a dairy platform. Um.

423
00:26:02,960 --> 00:26:07,080
Speaker 1: I've seen prototypes of whole cuts of steak, of prototypes

424
00:26:07,119 --> 00:26:10,440
Speaker 1: of eggs um. We've already seen the products served quite

425
00:26:10,480 --> 00:26:14,040
Speaker 1: well in Asia in the form of dumplings or abow um.

426
00:26:14,080 --> 00:26:17,639
Speaker 1: This is a technology that spans multiple geographies and products.

427
00:26:17,960 --> 00:26:20,240
Speaker 1: What's the biggest headwind for you right now? You know,

428
00:26:20,280 --> 00:26:22,760
Speaker 1: I like to say that technology has now been eliminated

429
00:26:22,800 --> 00:26:25,720
Speaker 1: as a headwind, and it's all about good old fashioned execution.

430
00:26:25,920 --> 00:26:27,760
Speaker 1: You know, with the amount of growth and the amount

431
00:26:27,760 --> 00:26:30,600
Speaker 1: of demand that's ahead of us, we have to continuously

432
00:26:30,640 --> 00:26:33,200
Speaker 1: grow at high quality, and that's what we're focused on.

433
00:26:33,320 --> 00:26:36,840
Speaker 1: What has been the reaction by the Food and Drug Administration,

434
00:26:36,880 --> 00:26:39,199
Speaker 1: because I understand that you want them to confirm that

435
00:26:39,280 --> 00:26:43,160
Speaker 1: it's safe to eat, but they've expressed concerns mainly because

436
00:26:43,560 --> 00:26:46,760
Speaker 1: this stuff has not really been consumed by human beings

437
00:26:46,760 --> 00:26:50,080
Speaker 1: in any quantity and might even be an allergy or

438
00:26:50,119 --> 00:26:52,919
Speaker 1: an allergen for some people. Well, actually, we've been generally

439
00:26:52,920 --> 00:26:56,439
Speaker 1: recognized as safe since and we have been working with

440
00:26:56,480 --> 00:26:58,879
Speaker 1: the FDA for the last several years and and really

441
00:26:58,920 --> 00:27:01,840
Speaker 1: a gold standard of safety that very very few food

442
00:27:01,840 --> 00:27:05,240
Speaker 1: companies seek. Um in what's breaking news in in the

443
00:27:05,320 --> 00:27:07,520
Speaker 1: last couple of weeks, it's actually public. We believe in

444
00:27:07,600 --> 00:27:10,800
Speaker 1: radical transparency, so any consumer it can go read the

445
00:27:10,840 --> 00:27:14,680
Speaker 1: over thousand page filing we recently provided the FDA, having

446
00:27:14,680 --> 00:27:17,720
Speaker 1: complied with every possible test we could think of to

447
00:27:17,800 --> 00:27:20,520
Speaker 1: convince the world just how safe this product is. I

448
00:27:20,600 --> 00:27:23,560
Speaker 1: like to think this product maybe the most well tested

449
00:27:23,600 --> 00:27:28,320
Speaker 1: food product you'll ever come across. Soy leg hemoglobin that's

450
00:27:28,520 --> 00:27:30,960
Speaker 1: technical term, that's right. I mean what it really means

451
00:27:31,040 --> 00:27:32,840
Speaker 1: is heam the same heame that you see in a

452
00:27:32,960 --> 00:27:35,960
Speaker 1: burger from a cow, but sourced from a leg, you

453
00:27:36,400 --> 00:27:39,280
Speaker 1: a plant. Well, we look forward to giving it a try.

454
00:27:39,400 --> 00:27:42,639
Speaker 1: Thanks very much. David Lee is the chief operating officer

455
00:27:42,720 --> 00:27:47,160
Speaker 1: and the chief financial officer of Impossible Foods, all about

456
00:27:47,200 --> 00:27:57,359
Speaker 1: their plant based burgers. Thanks for listening to the Bloomberg

457
00:27:57,400 --> 00:28:00,560
Speaker 1: P and L podcast. You can subscribe and listen interviews

458
00:28:00,560 --> 00:28:04,600
Speaker 1: at Apple Podcasts, SoundCloud, or whatever podcast platform you prefer.

459
00:28:05,040 --> 00:28:08,600
Speaker 1: I'm pim Fox. I'm on Twitter at pim Fox. I'm

460
00:28:08,640 --> 00:28:11,920
Speaker 1: on Twitter at Lisa Abramo wits one before the podcast.

461
00:28:11,960 --> 00:28:14,560
Speaker 1: You can always catch us worldwide on Bloomberg Radio