Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news. As it happened Sloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes Tim
Speaker 1: Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend
Speaker 1: edition of Bloomberg Business Week. It was a week full offense,
Speaker 1: speakers and investors passing through every last word to figure
Speaker 1: out what's next for the economy and the financial markets.
Speaker 1: I mean, speaking of markets, the oddities that make up
Speaker 1: today's trading environment continued, Carol to be front and center.
Speaker 1: Things like meme stocks, also Reddit fueled rallies, and then
Speaker 1: we're talking spacks. Heard of them, special purpose acquisition companies,
Speaker 1: nothing new but still in vogue exactly and kind of
Speaker 1: a frenzy this year in particular. And that brings us
Speaker 1: to Peter Atwater at William and Mary, who you will
Speaker 1: hear from and who writes about the age of scrutiny.
Speaker 1: That's s c R E w U T I N
Speaker 1: Y and what he says will be the third major
Speaker 1: financial betrayal in twenty years. Also this hour It's been
Speaker 1: a busy year for Global I p o s. One
Speaker 1: that went public this week is dox Simity. We caught
Speaker 1: up with the company's CFO, and then a panel of
Speaker 1: real estate heavyweights Brookfield's Bruce Flat, Rob Spire of Tishman Spire,
Speaker 1: and Shake Khalid, head of Qatar's real estate investment company,
Speaker 1: with a reality check on office use post pandemic. All
Speaker 1: of that to come. We begin, though, with this week's
Speaker 1: domestic cover story. It's all about a short history of
Speaker 1: shorts and the people who hate them. And by shorts, Carol,
Speaker 1: we're talking different kinds of shorts, right, Yeah, But if
Speaker 1: you check out the cover image, which I highly recommend
Speaker 1: go to Bloomberg dot com picking up at the news
Speaker 1: stand because uh it's a fun cover image, provocative, I think, yes,
Speaker 1: I would go so far to say that. Well. We
Speaker 1: were joined by Bloomberg Business Week editor Joel Weber also
Speaker 1: Bloomberg Finance editor Pat Regnier. Shorts into the equation of people,
Speaker 1: uh you know, who have a reason to look even
Speaker 1: without actually owning the share and money, uh by by
Speaker 1: taking a heartless um then without ever having been involved
Speaker 1: in the bet. So people who look at this say
Speaker 1: like what shorts they bring you know, who do you
Speaker 1: use the market? They bring new information to the market,
Speaker 1: and they also can kind of surface things that uh,
Speaker 1: you know, people who are bulls on the stock might
Speaker 1: not want to talk about another people who don't have
Speaker 1: a speak in the company might not have a reason
Speaker 1: to go um sniffing around to look at. That's not
Speaker 1: to say that it's not like a lot of Wall Street,
Speaker 1: but sometimes burkey business. Uh, but that's that's that's how
Speaker 1: it works on Wall Street. Let's not forget first of all,
Speaker 1: it's the other side of the equation, right there are
Speaker 1: people who talk about stocks that they like, and we're
Speaker 1: all kind of comfortable with that. This is people who's
Speaker 1: talk about stocks that they have concerned about. It's the
Speaker 1: other side of the trade and pat shorts and short
Speaker 1: investors they can often be right basically kind I mean.
Speaker 1: The classic example of that that often comes up is
Speaker 1: you know, Enron, it was a short who was uh
Speaker 1: you know, speaking to journalists you know about like, you know,
Speaker 1: you know something something doesn't look right here. Um, you know,
Speaker 1: We've had whats lots more examples. Sometimes the specific things
Speaker 1: that they bring up aren't right, but they create enough
Speaker 1: smoke that people start kind of looking for fire. Um
Speaker 1: and that and and that can be an important role. Um,
Speaker 1: they are interested actors, you know. I think you know,
Speaker 1: journalists have kind of a soft spot for shorts, and
Speaker 1: we have to be careful because that can be a
Speaker 1: little bit of a trap. Right, Short's been great stories.
Speaker 1: They have a reason to What journalists have to remember
Speaker 1: is like, you know, we just like great stories. Shorts
Speaker 1: like great stories. That makes them money and you've got
Speaker 1: to remember that book. Pat. You also get into the
Speaker 1: concept of naked shorting, which is getting a lot of
Speaker 1: attention right now, and it's something that's really misunderstood. What
Speaker 1: did the data tell us about something that is actually
Speaker 1: not allowed that people think is happening. So the idea
Speaker 1: of naked shorting is that you're going short, but you're
Speaker 1: not doing the shole thing that you're supposed to do
Speaker 1: when you're shorting a stock, which is you actually have
Speaker 1: to borrow the stock before you sell it to somebody.
Speaker 1: So you're basically doing the tread and telling somebody that
Speaker 1: you have this stock that you're selling to them, but
Speaker 1: maybe you haven't actually borrowed it, which would be an
Speaker 1: abusive practice. It is being legal, and you can get
Speaker 1: in a lot of trouble for doing it. Um. You know,
Speaker 1: some people appointed to the fact that, um, there has
Speaker 1: been a lot of orternoon is sales to deliver on
Speaker 1: some heavily shorted companies when they say like that that
Speaker 1: looks suspicious to them. UM. You know the SEC that's
Speaker 1: kind of a standard disclaimer when they release that data
Speaker 1: saying like, you know, this could be a number of
Speaker 1: different things, not necessarily evidence of naked shorting. You know,
Speaker 1: I think it's something that always needs to be looked at.
Speaker 1: Markets are big and complicated and you know, and increasingly
Speaker 1: okay in a lot of ways. UM, but there's no
Speaker 1: opening set cases that naked shorting is is happening at all.
Speaker 1: You know. The other the thing that I think the
Speaker 1: timing of the story was was great for it is
Speaker 1: the fact that Hendenburgh has sort of been in the
Speaker 1: headlines of late um Lordstown obviously being one example of
Speaker 1: that DraftKings Um being another. And I'm wondering how um,
Speaker 1: pat you know, as somebody who's who's covered all of
Speaker 1: this before and and the ecosystem, what what stands out
Speaker 1: to you about the Hendenburgh examples what's so interesting there
Speaker 1: is like there you have a case where that that
Speaker 1: is a company that's doing research and there's why would
Speaker 1: you that they're short? Right, So they're giving you the
Speaker 1: information to know, like I am an interested party there.
Speaker 1: And you know, in the Lordstown case, they're raising a lot.
Speaker 1: They were raising a lot of concerns about some of
Speaker 1: the re orders that Wordstown has. Now Wardstown how said,
Speaker 1: like we went and we looked and they they actually said, yeah,
Speaker 1: there was some problems with some of the statements we
Speaker 1: made there. They've denied some of the other allegations that
Speaker 1: were made. But again it was sort of like, hey,
Speaker 1: we're gonna trying to light on this and we're gonna
Speaker 1: look at it. Uh, and then you just have to
Speaker 1: kind of you know, judges this person who's just remember
Speaker 1: doing the trade and needs you know, and and has
Speaker 1: in putting the break down. They're going to be pointing
Speaker 1: it is, but you know, are they are they going
Speaker 1: to hit everything just right? Probably not? And they're an
Speaker 1: interesting party. That was Bloomberg Business Week Finance editor Pat
Speaker 1: mcneer along with the Bloomberg Business Week editor Joel Webber,
Speaker 1: like this story, we are talking so much about the
Speaker 1: Reddit fueled rally and so much of what's going on
Speaker 1: our short position short squeezes, And they actually did a
Speaker 1: primer on what it's all about efficient markets. Yeah, exactly,
Speaker 1: people take long positions, people take short positions. Coming up
Speaker 1: from short selling to the age of scrutiny, William and marries.
Speaker 1: Peter Atwater, who coined the term case shaped recovery, has
Speaker 1: another idea that's getting a lot of attention. He's coming
Speaker 1: up next. You're listening to Bloomberg Business Week. This is Bloomberg.
Speaker 1: This is bloom Bird Business Week with Carol Messer and
Speaker 1: Bloomberg Quick Takes. Tim Stinovik from Bloomberg Radio. Alright, Tim,
Speaker 1: I lost count of how many FED speakers this week.
Speaker 1: There were a lot of them. There were a lot
Speaker 1: of them, and that included FED Chief J. Powell. He
Speaker 1: was up on Capitol Hill before a House subcommittee. He
Speaker 1: was talking about the impact of the coronavirus. Job gains
Speaker 1: should pick up in coming months as vaccinations rise, easing
Speaker 1: some of the pandemic related factors currently weighing them down.
Speaker 1: Someone who looks at today's world through both an economic
Speaker 1: and Wall Street lenses, Peter Atwater adject professor of economics
Speaker 1: at William and Mary. Now you might recall that he
Speaker 1: coined the term K shaped recovery. He also writes about
Speaker 1: the age of scrutiny. The stuff he writes about Israeli
Speaker 1: provocative and the age of scrutiny that is spelled s
Speaker 1: c r e w t I n Y. What he says, Tim,
Speaker 1: is that he's writing about the third major financial betrayal
Speaker 1: in twenty years. That's what he's writing about. He says,
Speaker 1: after the dot com debacle, in the housing crisis, the
Speaker 1: investment crowd will not take kindly to yet another bubble
Speaker 1: bursts our conversation. I've been watching, as I always do,
Speaker 1: human behavior, and it's been fascinating to see in this cycle,
Speaker 1: particularly in the last eighteen twenty four months, where attention
Speaker 1: getting has been sort of the principal objective, whether you
Speaker 1: are a spack partner or a meme stock um that
Speaker 1: that the whole focus has moved to what I call illusion.
Speaker 1: That our our business leaders are now trying to captivate
Speaker 1: an audience. And and this is a very different cycle phenomenon,
Speaker 1: and it and it concerns me because at the same
Speaker 1: time you have all of these very charismatic um. You know,
Speaker 1: very powerful leaders talking about the promise and EA v
Speaker 1: S and the promise in space and the promise in
Speaker 1: all of this futuristic technology. You're starting to see companies
Speaker 1: where that illusion was false. You saw that with Luck
Speaker 1: and Coffee and wire Card and greensill And and Nicola
Speaker 1: and and most recently we were seeing this being brought
Speaker 1: forth at Lordstown Motor where the crowd is beginning to
Speaker 1: wonder what was real and what was fake. But the age,
Speaker 1: the coming age of scrutiny, it feels like in some ways, Peter,
Speaker 1: it's a good thing. And it's interesting how I feel like,
Speaker 1: in terms of cycles, market cycles, when there's things going wrong,
Speaker 1: investors are kind of quick to get the bad news
Speaker 1: and kind of pushed for the bad news to be
Speaker 1: out there, whether via an activist investors or the retail investor.
Speaker 1: Like it feels like we get to it much more quickly.
Speaker 1: Is that fair? Yeah? But but I think so far
Speaker 1: the crowd has shaken off any sense there is a
Speaker 1: systemic issue. We've we've treated each of these as if
Speaker 1: they're independent. But I think we're rapidly approaching a tipping
Speaker 1: point where it feels like there's too many of these
Speaker 1: happening at once, and and that then raises a question
Speaker 1: as to what is real and what is illusion? Much
Speaker 1: more broadly, what happens or what's the outcome. I mean,
Speaker 1: we've gone through the financial crisis, We've gone through the
Speaker 1: tech bubble, We've gone through certainly the pandemic. Each of
Speaker 1: those crises and the impact on either markets and or
Speaker 1: the economy very different. Where does this all go? So
Speaker 1: we love illusion when we're watching a magic act, but
Speaker 1: but illusion is inherently predatory, and so I'm fearful that
Speaker 1: if people now see that they've been duped, then then
Speaker 1: that raises a broader question by whom. And it's one
Speaker 1: thing to think that they've been duped by um, you know,
Speaker 1: startup companies where you know, okay, you've got very aggressive
Speaker 1: entrepreneurs touting the future. But but I think that there
Speaker 1: is a sense that, hey, I've been duped too many times.
Speaker 1: I was duped with the dot com bubble, I've been
Speaker 1: duped with a housing bubble. And I think there's a
Speaker 1: real likelihood that the crowd says that they're angry about this,
Speaker 1: that that that there that they want something done. You know,
Speaker 1: how could this happen again? And that's why I use
Speaker 1: the term scrutiny because I think people are going to
Speaker 1: feel like they've been really really abused in this. So
Speaker 1: who do you blame in this process? Is it regulatory
Speaker 1: lack of oversight, or is it you know, money moves quickly,
Speaker 1: you know this through the financial system, and the financial
Speaker 1: system markets in particular are always looking for I'm not
Speaker 1: going to say how to game the system, but for
Speaker 1: that new opportunity, you know, and sometimes all of the
Speaker 1: transparency about some new opportunity it hasn't yet been revealed.
Speaker 1: And I think that, yeah, there will be questions as
Speaker 1: to who to blame, and sadly, Carol, that the list
Speaker 1: will belong because when confidence is high, scrutiny is low.
Speaker 1: We don't pay attention, we don't regulate as much as
Speaker 1: we might otherwise. There's a there's a whole social phenomenon
Speaker 1: um and and with this one especially great because it's
Speaker 1: become almost cultural because we have this, this entire universe
Speaker 1: of influencers on social media who are in some ways
Speaker 1: portraying themselves and in a in a masquerade as well.
Speaker 1: Do you think that's all dangerous? The retail investor Crawd.
Speaker 1: I think that retail inevitably shows up late. That's what
Speaker 1: all of the research shows they are. They are drawn
Speaker 1: into it after an enormous amount of money has been made,
Speaker 1: and then they get very aggressive, very quickly. And so
Speaker 1: I watch meme stocks as a as a sort of
Speaker 1: a parallel to other market peaks, and I think that
Speaker 1: it should be more cautionary than exciting to um to
Speaker 1: the retail investor, Peter. Before we move on a little bit,
Speaker 1: I do want to dis continue with your writing about
Speaker 1: the coming age of scrutiny and how you talk specifically
Speaker 1: about what ahead will be a third major betrayal in
Speaker 1: twenty years and that specifically it would be more than
Speaker 1: just a pause orible pullback. So what do you think
Speaker 1: investors or how do you see it that investors what
Speaker 1: they should be preparing themselves for. I think I think
Speaker 1: investors need to be prepared for far greater um reevaluation
Speaker 1: of risk, both in the credit markets and in especially
Speaker 1: in the equity market. Um you know when Archigos failed
Speaker 1: THEE and was what would happen next? And you're starting
Speaker 1: to see a credit sweez, it's pulling back, it's lending
Speaker 1: to other similar entrepreneurs and and you know big investors.
Speaker 1: And I think that that seat change is likely to continue.
Speaker 1: And so investors who have taken great advantage of of
Speaker 1: ample liquidity and rising markets should should be prepared for
Speaker 1: a reversal of trends, both on the equity end credit side.
Speaker 1: That was Peter Atwater, adjunct professor of economics that William
Speaker 1: and Mary. I was like talking with him Tim because
Speaker 1: he does look at what's going on in financial markets
Speaker 1: with an economic perspective as well as with someone who
Speaker 1: understands Wall Street, and so it all comes together in
Speaker 1: a really smart way. Yeah, it really does. Always a
Speaker 1: great guest when he joins us on Bloomberg Business Week Radio,
Speaker 1: we'll still ahead on Bloomberg Business Week. A trend that
Speaker 1: picked up momentum during the pandemic digital medicine. We're gonna
Speaker 1: hear from doximitys CFO on this week's I p O.
Speaker 1: This is Bloomberg broadcasting from the financial capital of the World,
Speaker 1: Bloomberg eleven Frio in New York to Washington, d C.
Speaker 1: Bloomberg to Boston, Bloomberg one oh six one does San
Speaker 1: Francisco Bloomberg nine sixty to the country, Sirius XM Chado
Speaker 1: one nineteen and around the globe, the Bloomberg Business app
Speaker 1: and Bloomberg Radio dot com. This is Bloomberg Business Week.
Speaker 1: It went public this week, doubling in its first day
Speaker 1: of trading. We're talking about the healthcare platform dox Simity.
Speaker 1: For more on the i p O and the company's business,
Speaker 1: we caught up with Doximity chief financial officer Anna Bryson.
Speaker 1: We're really really proud and happy that we had a
Speaker 1: positive outcome for our physicians who participated in the i
Speaker 1: p O. We had over ten thousand physicians participating in
Speaker 1: the IPO and and that's more important to us than
Speaker 1: any additional funds for for our company. Explain what you
Speaker 1: mean by that, because increasingly we are seeing companies offer
Speaker 1: shares when they do go public to groups of people
Speaker 1: who traditionally don't get to participate in ip O. So
Speaker 1: explain what you did. Yeah, So we did a directed
Speaker 1: shares program for our physicians which enabled them to participate
Speaker 1: in the i p O at the offer price. And
Speaker 1: it was critical for us because the physician is at
Speaker 1: the court of the mission. Physician first is our guiding
Speaker 1: principle and the physicians really the reason that we've been
Speaker 1: able to build this leading digital platform for medical professionals.
Speaker 1: So they're the reason we're here. So it's very, very
Speaker 1: important for us to have them participate in the IPO.
Speaker 1: I understand as you've got one point eight million verified
Speaker 1: members on the platform. Of those one point eight million,
Speaker 1: how many did actually participate in the directed shares program.
Speaker 1: We had over ten thousand physicians participate in the directed
Speaker 1: Shares program. Alright, good to know. So tell us about
Speaker 1: the metrics going forward. I mean, you've got multiple tiers.
Speaker 1: One is free, You've got what almost twenty dollars a
Speaker 1: month as a provider that you can tap into, and
Speaker 1: then hospitals are also tapping into it. Um, that's the
Speaker 1: that's how you that's the financial model going forward. Yes,
Speaker 1: so we actually sell almost all of our offerings are
Speaker 1: free for our physicians. So all of our tools are
Speaker 1: free for our physicians. We do have a premium feature
Speaker 1: of our telehealth tool that we we do sell to
Speaker 1: our physicians for as you mentioned about twenty dollars a month,
Speaker 1: But the main way we monetize is by selling into
Speaker 1: the healthcare space, and healthcare is an industry that's long
Speaker 1: been very under index on digital spend and it's in
Speaker 1: the midst of a digital transformation. And we currently work
Speaker 1: with twenty of the top twenty hospitals and twenty of
Speaker 1: the top twenty pharmaceutical companies. And that's the main way
Speaker 1: I monetize. So r M is never to make to
Speaker 1: make money out of doctor's pockets, but but to focus
Speaker 1: on on the healthcare is and industry. All right, so
Speaker 1: what does the health care space get out of it?
Speaker 1: Uh and and I'm assuming that that's the bulk of
Speaker 1: your revenues in terms of percentage wise, that's correct. UM.
Speaker 1: So health health systems customer would use us in order
Speaker 1: to in gender referrals. So we allow them to potentially
Speaker 1: connect with a colleague or a key opinion leader in
Speaker 1: order to give share brand awareness about what's happening at
Speaker 1: that hospital or what's the new the new therapy they're
Speaker 1: they're focusing on in order to engender referrals. How did
Speaker 1: it grow during the pandemic because the doctors who I've
Speaker 1: spoken to have talked a lot about how UH it
Speaker 1: offers telehealth and it gave them an opportunity to also
Speaker 1: contact their patients, not just through telehealth, but also by
Speaker 1: calling them from their cell phones but making it look
Speaker 1: like you could actually we're calling from the office. Yeah, yeah,
Speaker 1: that's that's one of our one of our favorite features. Uh.
Speaker 1: You know that during the pandemic, these positions have have
Speaker 1: long been using our tools for for a multitude of years,
Speaker 1: you know, we've been in place for um and during
Speaker 1: the pandemic, they when physicians couldn't see any of their
Speaker 1: patients face to face, they started using our telehealth tools
Speaker 1: dramatically at a much much faster pace. And we're really
Speaker 1: proud to do our part in the pandemic and give back.
Speaker 1: And we actually didn't even start charging for any of
Speaker 1: the telehealth features at all, even to our health systems
Speaker 1: until January one, so we really gave it away for
Speaker 1: free for those first eight or nine months of the pandemic,
Speaker 1: and that was really really critical for us. We were
Speaker 1: very proud to do that. It sounds like an ultimately
Speaker 1: I think about companies that outsourced back office operations or
Speaker 1: customer service operations, and it feels like, in many ways,
Speaker 1: you guys are looking to do that for the medical community,
Speaker 1: doctors specifically, and the doctor communities at major hospitals is
Speaker 1: that what it's ultimately about. That's exactly right. We have
Speaker 1: a multitude of ways in which physicians can use us,
Speaker 1: but we want to enable them to collaborate with their colleagues,
Speaker 1: stay up to date the latest medical news and research.
Speaker 1: They could manage their careers, they could conduct virtual patient visits.
Speaker 1: We're replacing that that that fax machine and some of
Speaker 1: the more anequated technology that that they've been using for
Speaker 1: so long. And um, we're trying to be a smartphone
Speaker 1: hub really for them. Listen, research is a tricky one.
Speaker 1: How do you how do you stay ahead and make
Speaker 1: sure you do have the latest and greatest research for
Speaker 1: those members on the platform we do physician summits. We
Speaker 1: are constantly connecting with our physician members and getting feedback
Speaker 1: from them in order to grow our product suite for them,
Speaker 1: so they are directly involved in our product groom up.
Speaker 1: How big can this company become? I'm just wondering because
Speaker 1: it sounds like you guys have a lot more revenue
Speaker 1: streams that you can pursue. I think we have a
Speaker 1: tremendous organic opportunity ahead of us. As I mentioned healthcare
Speaker 1: as and industry that is in the midst of a
Speaker 1: digital transformation, and we look forward to continuing on this
Speaker 1: journey and seeing where it can go. And I'll get
Speaker 1: back to you on that one. That's Anna bryceon Doximity,
Speaker 1: chief financial Officer, talking about the company going public this week.
Speaker 1: You're listening to Bloomberg Business Week. Still ahead, the world
Speaker 1: increasingly going digital. We saw it at work during the pandemic,
Speaker 1: with everyone working from home. So what does that really
Speaker 1: mean when it comes to demand for commercial realistic I
Speaker 1: feel like it's one of the great debates of our
Speaker 1: time right now, not just here in New York City,
Speaker 1: but throughout the world exactly working from hybrid going back
Speaker 1: to the office. Time will tell. Coming up next, We've
Speaker 1: got a dream team in the commercial real estate space.
Speaker 1: They weigh in. This is Bloomberg. You're listening to Bloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes. Tim
Speaker 1: Stinovik from Bloomberg Radio. There was a lot going on
Speaker 1: in real estate, uh this week, Tim, There always seems
Speaker 1: to be, And that included Blackstone Buying Home Partners of America.
Speaker 1: That's a rental company that owns more than seventeen thousand homes.
Speaker 1: Also a bloomberg big take on how the world's financial
Speaker 1: centers are struggling to get employees back to their offices.
Speaker 1: Workplace activity in London, New York, and San Francisco, Well,
Speaker 1: it's still fifty percent below its normal level. That's according
Speaker 1: to mobility data from Google. Carol Well. This week from
Speaker 1: the Qatar Economic Forum that Bloomberg participated in, I moderated
Speaker 1: a panel on real estate in a virtual world. On it,
Speaker 1: his excellency Khalid bin Khalifa, He's chairman of Qatar DR
Speaker 1: that's the Quatari real Estate investment company. Also Bruce Flat,
Speaker 1: CEO Brookfield Asset Management and Rob Spire, president CEO of
Speaker 1: Tishman Spire. They were a dream team. Here's some of
Speaker 1: that conversations. Let me start with you, is it a
Speaker 1: case that we're not going to go back to our office?
Speaker 1: Or if I look around New York, it feels like
Speaker 1: a lot of people have already moved back. Look, it's
Speaker 1: life is about phases. People have to adjust. They're all
Speaker 1: coming back to the office. Um, it's just inevitable and
Speaker 1: but but people have to do it in phases. They
Speaker 1: thought they weren't, they couldn't come back. Then they thought
Speaker 1: they were going to partly work from home. Eventually they're
Speaker 1: all going to be back to the office. We're seeing
Speaker 1: it everywhere in the world. You can see it in
Speaker 1: the cities that are reopening already across the world. And uh,
Speaker 1: it's just happening at a slower pace in some places.
Speaker 1: But but look, everything's opening up where the vaccine you're working,
Speaker 1: Shall it come on in on this? Do you agree
Speaker 1: you're seeing everybody come back or do you feel like
Speaker 1: that there might still be some dramatic changes when it
Speaker 1: comes to real estate generally, I do al what Bruce said.
Speaker 1: I think on phases as we have a planned also
Speaker 1: here and and and cutter. Many of the company's agencies
Speaker 1: organizations are coming back into phases and I see I
Speaker 1: see with the with the vaccine, people getting vaccinated, even
Speaker 1: a larger pool of people getting together in terms of meetings, events,
Speaker 1: what have you. I think we cannot get away from
Speaker 1: the concept of the working space. The concept of working
Speaker 1: space is for many occupier is to to pull talent
Speaker 1: and to promote collaboration and innovation. So this concept we
Speaker 1: see in utterly dr where where I am a chairman
Speaker 1: of we don't see a change from that I think
Speaker 1: we're getting back to normal. I think as a growing
Speaker 1: company like Utterly d R, it's important that we maintain
Speaker 1: the the attracting talented people. And in the same time,
Speaker 1: as a growing company, we are developed gun training national
Speaker 1: to as a successor for the future, and we kind
Speaker 1: of do that remotely. Rob is it three for three?
Speaker 1: Do you agree that people are coming back from from
Speaker 1: the office or just does something change a little bit
Speaker 1: in terms of how we look at the office space,
Speaker 1: maybe how we use it or how much we use
Speaker 1: it and where we are using it. Companies are really
Speaker 1: struggling to define what a hybrid workplace means and how
Speaker 1: to implement that in an equitable way. Does it mean
Speaker 1: that nobody works Mondays and Fridays? Doesn't mean is one
Speaker 1: big company is doing? You tell people which three days
Speaker 1: they come to the office based on a computer algorithm?
Speaker 1: Do you give every employee their own choice? How does
Speaker 1: that work? So? I think companies approaches have been very
Speaker 1: fluid um depending on seasonality month by month, and it
Speaker 1: has been a real struggle if it's not remote or
Speaker 1: in the office, and it's a balance of the to
Speaker 1: how to actually execute. But I'd give you a fact
Speaker 1: point from our kind of on the ground experience, we
Speaker 1: were lucky enough to buy a building in Sunny Vale
Speaker 1: a couple of months ago at a fifty percent five
Speaker 1: percent discount to the pre COVID value. Within thirty days
Speaker 1: of closing, we have two tech companies who are looking
Speaker 1: at potentially taking the whole campus. Now, six months ago,
Speaker 1: the whole world was writing off the Bay Area. Everybody
Speaker 1: was moving out, moving elsewhere. And the facts on the
Speaker 1: ground are most of the big tech companies have added
Speaker 1: extraordinary numbers to their workforce and they need places to
Speaker 1: put them. Nobody's making the bet in actuality that they're
Speaker 1: not bringing people back to the workplace. Well, that's what
Speaker 1: I want to get to and kind of make some
Speaker 1: sense out of, because we've done a lot of stories,
Speaker 1: certainly here at Bloomberg about people leaving Silicon Valley that
Speaker 1: the big tech companies are saying, you can kind of
Speaker 1: work anywhere. Bruce, who is it that's going to be
Speaker 1: in demand for office space? Is it the same as
Speaker 1: it was pre pandemic in terms of what we see
Speaker 1: post pandemic? What what signs are you saying? Look, I
Speaker 1: think the one thing that people have forgotten about when
Speaker 1: they think of office space is normally workforces, the GDP
Speaker 1: of the world grows and you need more space to
Speaker 1: house people. And what happens when you have a slowdown
Speaker 1: is that nobody built buildings and there really hasn't been
Speaker 1: anything globally launched for eighteen months, which means that this
Speaker 1: the the amount of buildings coming on is just getting
Speaker 1: less and less. And over time, what you're going to
Speaker 1: see is demand come back, uh and the amount of
Speaker 1: supply diminish, which means that you're going to have a
Speaker 1: whole cycle start over again. And there's our Our view
Speaker 1: is that, um, you know, this is very positive for
Speaker 1: real estate longer term. Uh and and we're continuing to
Speaker 1: invest globally and you can see it in each of
Speaker 1: the markets that open up. You start to see cap
Speaker 1: rates come down because people understand that the boxes are
Speaker 1: going to be full again. And uh And if you
Speaker 1: don't understand the business or people aren't in the business,
Speaker 1: that it's maybe hard to understand. But but that is
Speaker 1: really what's going on at the ground level. Say Colin,
Speaker 1: what are you seeing Like the other two on the panel,
Speaker 1: you have exposure obviously to the office space lusal I
Speaker 1: think about your massive development that you guys have been
Speaker 1: working on since so five, What are you seeing in
Speaker 1: terms of office demand? Who needs it? Who doesn't? Because
Speaker 1: there are certainly lots of stories about you know, open
Speaker 1: office space UH in Doha specifically, well I can rephrase
Speaker 1: it in macro and micro if I will talk macro,
Speaker 1: I think the office space demand will continue, especially for
Speaker 1: big cooperation big co operations, technology firms as said by
Speaker 1: by Rob and also for the professional services that rely
Speaker 1: on a law large talent to pool UH for and
Speaker 1: looking for also best locations business space. If I talk
Speaker 1: about micro here here on cut we have we went
Speaker 1: through I think a surplus of of offices space because
Speaker 1: it has to do with the with the with the demographic,
Speaker 1: with the planning, what have you. But I think but
Speaker 1: that's also has a benefit of reducing the cost per
Speaker 1: square meter, which is also encouraging tenant to move in.
Speaker 1: And looking also for more of the smart cities I
Speaker 1: would say or smart offices that's where the technology is
Speaker 1: being upgraded and has more sustainable and will being UH
Speaker 1: location for for the employee to to move in. So
Speaker 1: basically best locations, best offices where we may and as
Speaker 1: as as a high flyer. Take how it for works
Speaker 1: are so important to guitar. We know that. Are you
Speaker 1: hopeful in terms of, you know, immigration policies, are you
Speaker 1: counting on that really changing demographics to help also fill
Speaker 1: those buildings in the demand there well, definitely, and we've
Speaker 1: seen we've seen a change on the on the on
Speaker 1: the on the policies for immigrants to move in and
Speaker 1: to give more of of leverage to the to the
Speaker 1: business here in terms of the doing business or residency. Definitely,
Speaker 1: that's that's helping certain cities, certain location within within the
Speaker 1: state of Patar And and we've seen that going towards
Speaker 1: the the the that right that right way, so to speak.
Speaker 1: Ru I know, gateway cities are certainly you know on
Speaker 1: your radar and you still see strength and gateway cities.
Speaker 1: Is there anything to the argument that some of the
Speaker 1: secondary cities, because of companies that do offer now as
Speaker 1: a perk kind of flexible working, that there will we
Speaker 1: will see kind of more investment going into those secondary
Speaker 1: tertiary cities. Look look at all of them. Are all
Speaker 1: of the above are good. There are smaller cities that
Speaker 1: are highly attractive. Nashville, Austin UM where people want to
Speaker 1: be in. They're growing. Um. But just to put it
Speaker 1: in perspective, we're building a major complex in downtown Nashville.
Speaker 1: It's the office, residential, retail, a big mixed use development,
Speaker 1: but it has four square feet of office. Um. We
Speaker 1: ourselves owned sixty million square feet of space in New
Speaker 1: York City. So it's just the quantums. And as Rob
Speaker 1: said earlier, to get the people, and as Jake Khalid said,
Speaker 1: to to get the amount of numbers, you need to
Speaker 1: be in these big cities. So Facebook, Google and many
Speaker 1: of the tech companies are in New York City because
Speaker 1: it's the only place that they can get the mass
Speaker 1: of talent. And that's not to say that nationalism will
Speaker 1: be important, but it's just it's just the quantums are
Speaker 1: different us. Well, I have you. I want to talk
Speaker 1: a little bit about retail specifically. You guys have big exposure.
Speaker 1: You bought g g P back in the timing on that.
Speaker 1: Did it cause you pause? Certainly over the pandemic year. Look,
Speaker 1: we started buying it in two thousand and nine. We
Speaker 1: bought it four four parts of it and the last
Speaker 1: part we completed in eighteen so um. But yeah, look,
Speaker 1: retail was not great. When they shut down your business
Speaker 1: and it goes to zero for a couple of months,
Speaker 1: it's not it's not fun. But if you take it today,
Speaker 1: numbers are coming back strong. If you have great centers
Speaker 1: in great cities, um, people are strong and actually sales
Speaker 1: and many of them are above where they were pre pandemic.
Speaker 1: So retails are sales are coming back. And yes there
Speaker 1: was a little bit of a pause. But those that
Speaker 1: are wealth and to live through these periods of time
Speaker 1: and and we're all trained to do that. In the
Speaker 1: real estate business. That was Shaped Colored, chairman of Qatari
Speaker 1: dr that's the Quatari Real Estate Investment Company. Also Bruce Flatt,
Speaker 1: CEO Brookfield Asset Management, and Rob Spire, president CEO of
Speaker 1: Tishman Spire here that entire panel. Just go to Bloomberg
Speaker 1: Live dot com. Well, it's gonna wrap up the first
Speaker 1: hour of the weekend edition of Bloomberg Business Week from
Speaker 1: Bloomberg Radio. I'm Tim Stanovick and I'm Carol Masster. Coming
Speaker 1: up in our next hour, Peloton working out deals in
Speaker 1: the corporate wellness space, an Indian princess on the pandemics
Speaker 1: impact on her home country, plus the cinematic tale of
Speaker 1: real world drama that captured our attention. We've got the
Speaker 1: inside story of ever Given. It's the massive ship. Of course,
Speaker 1: they got stuck in the Suez Canal and caused global
Speaker 1: shipping to come to a halt earlier this year. It's
Speaker 1: got to be one of my favorite stories in the magazine.
Speaker 1: This week it is a deep dive. Yeah, totally. Speaking
Speaker 1: of diving, how about going diving for lobsters? All the
Speaker 1: rage which you believe during the pandemic. Who knew? We're
Speaker 1: going to talk to the founder and CEO of Get
Speaker 1: Me a Lobster. That's all ahead in the next hour.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week inside from
Speaker 1: the reporters and editors who bring you America's most trusted
Speaker 1: business magazine, plus global business, finance and tech news as
Speaker 1: it happened. Sloomberg Business This Week with Carol Messer and
Speaker 1: Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Hi am
Speaker 1: Carol Masser and I'm Tim Stanovick of Bloomberg. Quick Take.
Speaker 1: Plenty ahead in our second hour of the weekend edition
Speaker 1: of Bloomberg Business Week, including Pelatant stepping into the corporate
Speaker 1: wellness world. Yes indeed, plus our Royal Princess j Navi
Speaker 1: Kumari of Muar on our home country of India and
Speaker 1: managing through the pandemic and get ready to pay more
Speaker 1: for your lobster this summer. We're going to hear from
Speaker 1: the founder and CEO of Get Main Lobster. You've already
Speaker 1: had a lobster roll. I've had my first summer lobster.
Speaker 1: Not a lobster rollo Oh, I thought for you. It
Speaker 1: was yummy. First up this hour the international cover story
Speaker 1: in Bloomberg business Week magazine this week. It is about
Speaker 1: something that we were all mesmerized by for one week
Speaker 1: back in March, when global shipping came to a halt
Speaker 1: when the ever given got stuck in the Suez Canal.
Speaker 1: How it happened? Tim Bloomberg's Kitchell at a team of
Speaker 1: reporters to get the inside story and tell this cinematic tale.
Speaker 1: He joined us along with the Business Week editor Joel Weber.
Speaker 1: One of the things that we learned was that the
Speaker 1: captain actually got conflicting information, um and and what how
Speaker 1: did that transpire? According to the reporting that you guys
Speaker 1: were able to get. So what we do know about
Speaker 1: what happened on the bridge when the ship crashed was
Speaker 1: there was a chaotic situation these these pilots had boarded
Speaker 1: the ship, Egyptian pilots whose job it is to steer
Speaker 1: giant ship through the canal. They spoke mainly in Arabit
Speaker 1: and on the bridge also was the captain who was
Speaker 1: an Indian gentleman, and his crewman who spoke mainly in English.
Speaker 1: And there was this situation where there are dispute emerged
Speaker 1: about whether it was too windy to enter and then
Speaker 1: once they were inside the canal, how to keep the
Speaker 1: ship on a straight keel. And the argument became quite
Speaker 1: forceful and the pilots threatened to leave. And while all
Speaker 1: this was, while this was going on, they lost control
Speaker 1: of the vessel when it crashed. So what about now?
Speaker 1: Because I think, as Joel said, and I think people
Speaker 1: were obsessed with this story for six days and then
Speaker 1: so many people, like we do with with with big stories.
Speaker 1: I think as as consumers, we move on. And I
Speaker 1: think people were really surprised to find it have been
Speaker 1: really really surprised to find that, Hey, the status of
Speaker 1: the ever gifting right now is kind of still up
Speaker 1: in the air. Yeah, I think most people just assumed
Speaker 1: the ship had sailed out about its business, but no,
Speaker 1: it was. It was seized shortly afterwards. It never left
Speaker 1: the Sewers Canal. It's in fact still there because the
Speaker 1: Egyptian government is seeking a billion dollars or so in
Speaker 1: compensation from the ship owner and really the only leverage
Speaker 1: that the Egyptian authorities had with the ship itself, so
Speaker 1: they refused to let it leave, and the crew and
Speaker 1: the captains found themselves almost as pawned in this, in
Speaker 1: this big money game, um and they're still there. Just
Speaker 1: this week, it looks like there's going to be a settlement,
Speaker 1: that they've reached a tentative settlement, and the crew and
Speaker 1: captain will be hoping they can leave in the next
Speaker 1: few weeks. But you know, there are there are stories
Speaker 1: of sailors who have been stranded on vessels in the
Speaker 1: Stewers Canal over legal dispute and stayed there for years.
Speaker 1: So it's a really bad situation for the crew in particular. Well,
Speaker 1: and what's interesting is, and you really shed a lot
Speaker 1: of light, um Kit on this, is that there's a
Speaker 1: lot of parties involved in these massive ships. There's the
Speaker 1: owner of the ship. There's companies that provide the people
Speaker 1: who are on the ship, and then you've got the
Speaker 1: Egyptian pilots who come on and help it through the canal.
Speaker 1: And there's a lot of finger pointing, it sounds like
Speaker 1: at this point because from what I understand and you're
Speaker 1: reporting to, those pilots were bickering while they were going
Speaker 1: through the canal, and they were bickering when they came
Speaker 1: off the ship as well. Yeah, the modern shipping is
Speaker 1: really complicated. Things get messy whenever there's legal dispute because
Speaker 1: you've got the owner of the ship, the crew of
Speaker 1: the ship, the owners of the cargo. There were seventeen
Speaker 1: thousand containers on board the ship holding things like Nike
Speaker 1: shoes and Lenovo laptops. You got the insurers involved, ultimately
Speaker 1: are going to pay the bill. We've got the Egyptian government.
Speaker 1: All these different parties have different interests and it gets
Speaker 1: really complicated. My other favorite scene in the story kit
Speaker 1: is the court scene that that went down, and what
Speaker 1: can you tell us about what transparreed there? It was
Speaker 1: this amazing day in the court in this Mailia, which
Speaker 1: is almost exclusively for shipping disputes. That happened in the
Speaker 1: canal um, and we just we were we were fortunate
Speaker 1: to happen to be there when the ship owner suddenly
Speaker 1: pulled out a new legal strategy. Until that point, the
Speaker 1: conversations had been very civil and looked like they were
Speaker 1: working towards the settlements. When we were in court, that
Speaker 1: all changed and they suddenly played their their wild card,
Speaker 1: which was to say it wasn't halful this crash. The
Speaker 1: Egyptian authorities, in the Egyptian pilots bear some of the blame.
Speaker 1: And we have this audio from the bridge that proved
Speaker 1: upsit um. So it was actually he was very dramatic importance,
Speaker 1: very tense, and it was a remarkable scene. The ship's
Speaker 1: kit are getting bigger. The Suez Canal is so important
Speaker 1: to global trade. I was so surprised after reading this
Speaker 1: that this hasn't happened many times in the past. It
Speaker 1: to me seems just like a matter of time until
Speaker 1: this happens again. Considering that, well, the ships are getting bigger.
Speaker 1: So here's an interesting thing. The day before the canal
Speaker 1: was completed in the nineteenth century, just before they were
Speaker 1: about to hold the first ceremonial flow, tiller of vessels
Speaker 1: along it. They had an incident the night before and
Speaker 1: a ship got stuck and blocked the canal, and it's
Speaker 1: got the more night to free it. You know, it's
Speaker 1: it's a narrow channel. It's two hundred meters wide in
Speaker 1: places that sounds like a lot that wasn't container ships
Speaker 1: are so enormous, but there's not a lot of rooms.
Speaker 1: And in a way it is amazing this hasn't happened before.
Speaker 1: You know, fifty ships going through each and every day,
Speaker 1: and it really is only time before ones of really
Speaker 1: big ones get stuck again. That's Bloomberg's Kitch shell l
Speaker 1: along with Business Week editor Joel Webber. You're listening to
Speaker 1: Bloomberg Business Week. Still to come. Demand for its products
Speaker 1: surge while everyone was working at home, and now that
Speaker 1: people are heading back to the office, Peloton is too.
Speaker 1: We'll explain This is Bloomberg. This is Bloomberg Business Week
Speaker 1: with Carol Masser and Bloomberg Quick Takes Tim Stinovik from
Speaker 1: Bloomberg Radio. This week some news. Peloton Interactive said it's
Speaker 1: looking to expand beyond its bikes and treadmills. Shares traded
Speaker 1: higher on news that the company is stepping up jim
Speaker 1: rivalry by entering the corporate wellness business. They are launching
Speaker 1: a discount program for company employees, much like Jim's have
Speaker 1: offered for years now. That same day, Carol Bloomberg exclusively
Speaker 1: reporting that the company is working on any digital heart
Speaker 1: rate arm band, taking a big step into the competitive
Speaker 1: wearables market. For more on the moves, we checked in
Speaker 1: with Cassidy Rouse, general manager of Corporate Wellness and Peloton. Yeah,
Speaker 1: we're really excited. We obviously unveiled our new corporate wellness product,
Speaker 1: which is a new way for organizations to offer Peloton
Speaker 1: into their wellness programs. See, these companies are spending sixty
Speaker 1: billion dollars globally on wellness products and programs. This is
Speaker 1: not including insurance. But we hear the same things over
Speaker 1: and over again. They want results, they want stronger engagement,
Speaker 1: they want measurable outcomes, and these are all native to
Speaker 1: what Peloton delivers. So we're really excited to extend those
Speaker 1: benefits into the workplace today and really please with the
Speaker 1: with the overwhelming um Well, Cassie, unpack it a little
Speaker 1: bit for us. I mean, have you signed up companies already?
Speaker 1: How many companies are you talking to give us a
Speaker 1: little bit if you can, on the size and scope
Speaker 1: on the potential for this business for Peloton. Absolutely, we're
Speaker 1: really excited about the potential. We we did name a
Speaker 1: few launch partners, so we're working with companies likes of
Speaker 1: the SAP, Wayfare, sky in the UK Center, Interactive, Samsung,
Speaker 1: so large innovative organizations and obviously in um in deep
Speaker 1: conversations with many more. But um, yeah, we're we're really excited. Ultimately,
Speaker 1: this is about improving the health and happiness of employees
Speaker 1: and increasing accessibility for our product. So we're really proud
Speaker 1: to come to market with some really respected organizations today. Well,
Speaker 1: full disclosure, I've got a Peloton, so I totally get it,
Speaker 1: and I can see why I happing into the corporate market.
Speaker 1: I've had it for several years. Um, but how does
Speaker 1: it move the needle in terms of revenues you guys
Speaker 1: are looking at I don't know. I'm looking at some
Speaker 1: of the forecasts of about four billion in revenue for
Speaker 1: one year. So how big a business could this potentially
Speaker 1: come for you? And and it's a business that I
Speaker 1: would go as far to say, and I'm curious if
Speaker 1: you concur is that it will provide a fairly predictable
Speaker 1: and reliable revenue stream. Yeah, we're really optimistic about it. Really,
Speaker 1: how we we think about this business is we see
Speaker 1: organizations on average companies are spending nearly five million dollars
Speaker 1: per company on product to build healthier and happier workplaces. UM.
Speaker 1: But again, as I said, they want results and they
Speaker 1: look at Peloton is powering our connective finess products are
Speaker 1: powering twenty six workouts a month. We see an opportunity
Speaker 1: to come in and solve a real problem in corporate
Speaker 1: wellnesses that companies don't really know or have a strong
Speaker 1: idea of the r o I they're getting from their
Speaker 1: spin and we see it as a way to team
Speaker 1: up with them to offer a completely accessible UM wellness offering.
Speaker 1: Across our digital product portfolio are connected finess products, and
Speaker 1: we think if we can do that, if we can
Speaker 1: come in and integrate with companies to build healthy and
Speaker 1: happier workplaces, it's ultimately going to drive membership for us
Speaker 1: and the again, the growth and the financial results will
Speaker 1: take care of themselves. Will most corporate programs be similar
Speaker 1: in terms of a discount program for your digital app
Speaker 1: as well as discounts for the actual hardware, whether it's
Speaker 1: a treadmill or a bike. That's a great question, Carol.
Speaker 1: We we've architected this to be streamly flexible. We want
Speaker 1: to be able to work with organizations of all sizes,
Speaker 1: regardless of your goals or your budget um. And so
Speaker 1: we can go as big or we can go as
Speaker 1: you at the entry levels we need to be, but
Speaker 1: it will be. The key theme here is that there
Speaker 1: is absolutely something for everyone in your organization. For those
Speaker 1: of you who may not have room in their house
Speaker 1: for equipment, or don't have prim in their schedule for it,
Speaker 1: or however, it's it's the Peloton app um and the
Speaker 1: power of Peloton in your pocket. For those of you
Speaker 1: who want the most of your experience, it is subsidized
Speaker 1: pricing on the hardware. And for those existing members like you, Carol,
Speaker 1: who are all access members, it's reimbursements and subsidies on
Speaker 1: their all access membership. Really interesting, how but how big
Speaker 1: a business? I mean, what have been? And I know
Speaker 1: you're not gonna you can't peel back all the layers
Speaker 1: and give me all the numbers. I understand, um, But
Speaker 1: as I said, you're you know a company that's projected
Speaker 1: to do about four billion in revenue. Is this potentially
Speaker 1: a billion dollar business? Is that half a billion dollar business?
Speaker 1: Can you give me any indications of size and scope?
Speaker 1: Would it be something significant or is this just a
Speaker 1: nice add on? Yeah, we think about it in terms
Speaker 1: of membership growth. So if you look at UM again,
Speaker 1: I think our leadership has been very transparent and embush
Speaker 1: on our ability to reach a hundred million memvers globally.
Speaker 1: And if you look at people who are yeah employees
Speaker 1: and have access to subsidize health benefits of all kind,
Speaker 1: that is a massive service or addressable market for us.
Speaker 1: And for Peloton to be able to integrate within organizations
Speaker 1: and deliver value back to the company UM and reach
Speaker 1: a highly incriminal new audience for us, we think it
Speaker 1: could can really power growth of our community and UM
Speaker 1: inforged tight of relationships with our members. Hey Cassie, why
Speaker 1: are you guys doing it now? Is it because we've
Speaker 1: gotten on the other side of the pandemic and I'm
Speaker 1: just curious? Yeah, that's also a great question, Carol. We
Speaker 1: we feel like there's never been a better time to
Speaker 1: help drive innovation up at wellness. So if you think
Speaker 1: about the challenges that companies and benefits managers and UM
Speaker 1: chief people offices are dealing with. The future of work
Speaker 1: is very uncertain. There are a lot of question marks.
Speaker 1: The only thing that is certain is that uh, they're
Speaker 1: going to have to support a more distributed workforce and
Speaker 1: a more flexible workforce. And it's really hard to put
Speaker 1: together a package of health and wellness benefits to serve
Speaker 1: different people in different locations with different schedules, and they
Speaker 1: really a lot of the support for Peloton is that
Speaker 1: it can work around your schedule and also it can
Speaker 1: help you build community in a more distributed workforce. We're
Speaker 1: seeing a lot of our early partners UM. It's pretty
Speaker 1: remarkable when when you look at what's happened, people are
Speaker 1: actually holding meetings and tam get togethers through Peloton rides
Speaker 1: and walks and working out for the app, which is
Speaker 1: we love to see that. It's so we think it's
Speaker 1: much more than UM. It's much more than a you know,
Speaker 1: plug in place fitness solution. This is about integrating within
Speaker 1: your company and helping people stay connected and healthier and happier.
Speaker 1: We think there's never been a better time, right and
Speaker 1: you guys listen have always have stressed community. I've been
Speaker 1: at a homecoming here in New York City and and
Speaker 1: I kind of get that why there might be meetings
Speaker 1: together on a on a Peloton platform. Hey, one last question,
Speaker 1: our Mark German, a scoop Peloton working on a digital
Speaker 1: heart rate arm band, which would be the company's biggest
Speaker 1: move beyond stationary fitness equipment. Really, you know, Cassidy moving
Speaker 1: into the competitive wearables market, does this kind of fit
Speaker 1: into also maybe you know, getting more entrenched to incorporate
Speaker 1: wellness and just quickly just got about thirty seconds. Yeah,
Speaker 1: Our our hardware team are our R and D team
Speaker 1: is always hard at work and nothing to announce with
Speaker 1: corporate wellness. Our goal is to offer increased access and
Speaker 1: availability to all of our products, but nothing to do enough. Unfortunately,
Speaker 1: that's Cassidys, general manager of corporate Wellness at Peloton. Still
Speaker 1: to come on Bloomberg Business Week, How India is managing
Speaker 1: through the pandemic From her Royal Princess to Navi Kumari
Speaker 1: of Moore. This is Bloomberg broadcasting from the financial capital
Speaker 1: of the world, Bloomberg eleven Frio in New York to Washington.
Speaker 1: D c. Bloomberg to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg nine sixty to the country Sirius
Speaker 1: XM Chado one nine and around the globe the Bloomberg
Speaker 1: Business app and Bloomberg Radio dot Com. This is Bloomberg
Speaker 1: Business Week. India is home to more than a billion people,
Speaker 1: you know that, and emerging and developing economy that has
Speaker 1: been on the front lines of the coronavirus health pandemic.
Speaker 1: Things are getting better. The v shaped economic recovery that
Speaker 1: India's policymakers obsessed over did eventually materialize this year. It's
Speaker 1: a different story. We got up with someone who has
Speaker 1: a close up view of the latest public health developments
Speaker 1: on the subcontinent, her Royal Princess naviy Kumari of Moore.
Speaker 1: She joined us from johb Per, India and shared her
Speaker 1: account of her homeland struggle with COVID nineteen and her
Speaker 1: hopes for how we can prevent the next global health crisis.
Speaker 1: The problem that India space in the past fifteen months
Speaker 1: is that our policy making via the government has lacked
Speaker 1: some level of certification and execution of it and um
Speaker 1: if we were to talk about the responsibilities that lie
Speaker 1: with the leaders of resination. I would have to look
Speaker 1: at it from a balanced perspective. I think India has
Speaker 1: been suffering from a significant absence of investment, or let's
Speaker 1: put it under investing in the public health care that
Speaker 1: which of course has amplified the issues that in their
Speaker 1: spacing today it's been a death dealing crisis. There's been
Speaker 1: a lack of proactiveness on the government's part when there
Speaker 1: was the opportunity to do so in the early and
Speaker 1: comprehensive lockdown that we had last year. And unfortunately the
Speaker 1: problems have just been compounded by the fact that our
Speaker 1: public health there infrastructure is not just wasn't ready for it,
Speaker 1: or legislative system just wasn't ready for it. Well, pritis
Speaker 1: comar I guess at this point, do you think that
Speaker 1: things are better post pandemic, that that the government's learned
Speaker 1: something about the policies that need to be in place,
Speaker 1: or do you think that once we get on the
Speaker 1: other side of this for India, we kind of just
Speaker 1: move on with getting back to things as they were.
Speaker 1: What we need moving forward as first and foremost that
Speaker 1: we cannot we absolutely must not let the wisdom of
Speaker 1: experience be wasted on us. We've got to find a
Speaker 1: way to work together. It has to be um, it
Speaker 1: has to be a collective action to solve the global
Speaker 1: not only the global pandemic, but the problems of it
Speaker 1: that the world is facing course pandemic. So if I
Speaker 1: was to break it down, I would say, politically, we
Speaker 1: need better global governments, we need collective action, we need
Speaker 1: a new global coalition. We need a new form of internationalism,
Speaker 1: or let's call it an awkraw internationalism, because what we
Speaker 1: have today is internationalism that it's completely outwarded for the
Speaker 1: needs of the present day and the future. UM. What
Speaker 1: I've also, well, do you think, well, if I may,
Speaker 1: if I may follow Princess Kamara, do you feel that
Speaker 1: the developed world has really failed the developing world, especially
Speaker 1: when it comes to the health crisis. I wouldn't say
Speaker 1: it's been an entire failure. I mean, if you if
Speaker 1: you look at how the US and India have collaborated
Speaker 1: during the course of this crisis. I mean the Biden administrations,
Speaker 1: you know, support of the intellectional property, where whereas the
Speaker 1: WT or it's come to India's aid with medical resources,
Speaker 1: raw materials, and and and at this time of need.
Speaker 1: It's exaccinly nation. So I wouldn't say it's an entire
Speaker 1: and it's been an entire failure. I would definitely say
Speaker 1: that that's just two people nations acting together. What we
Speaker 1: need is collective action. What you need is countries and
Speaker 1: nation states working together to promote and regulate proper global
Speaker 1: government and also facilitate some accountability at large, because what
Speaker 1: we're seeing is some push back to some extent of
Speaker 1: a couple of arguments. So I'm saying the global supply
Speaker 1: chain is here to stay. There's no way to undo it.
Speaker 1: But at the same time, you did see those nationalistic
Speaker 1: forces certainly kick into high gear during the pandemic, and
Speaker 1: companies and leaders rethinking, wait a minute, should I have
Speaker 1: my supply Chaine also closer to home. Karen, You're absolutely right,
Speaker 1: I think um uh, as I was about to say earlier,
Speaker 1: the fault lines have been observed and they are being addressed.
Speaker 1: But are they being addressed and effective fashion is my
Speaker 1: question in today, because the global supply chain, of course,
Speaker 1: isn't going to go anyway it is. Um what we've
Speaker 1: seen is a significantly integrated global economic infrastructure that cannot
Speaker 1: be undone anymore. But what we can do moving forward
Speaker 1: is re engineer and restructure these global supply chains with
Speaker 1: the objective of the objective of an incentivizing engagement that
Speaker 1: promotes that shared values. Um UM. It facilitates more accountability.
Speaker 1: It means that of you know, uh, these natured think um.
Speaker 1: It allows us to um to create a new economic infrastructure,
Speaker 1: more effective economic infrastructure that's not called the hostage of
Speaker 1: the nations are the democratic nations. That was the Royal
Speaker 1: Princess Junavi Kumari of Moore who joined us on the
Speaker 1: phone from job for City, India. You're listening to Bloomberg
Speaker 1: Business Week coming up. We're gonna finish on a lighter note. Well,
Speaker 1: unless you're consider the lobster. As David Foster Wallace wrote
Speaker 1: years ago, the faunter and CEO of Get Main Lobster
Speaker 1: on why You'll be paying more this summer. This is Bloomberg.
Speaker 1: You're listening to Bloomberg Business Week with Carol Messer and
Speaker 1: Bloomberg Quick Takes Tim Stinovik from Bloomberg Radio. All Right,
Speaker 1: it's lobster season. And when I think of lobster, I
Speaker 1: think of Maine, which accounts for nearly all of America's
Speaker 1: total lobster harvest. It is an approximately five million dollar
Speaker 1: year industry for that state. And that's where we headed
Speaker 1: to Maine and to Mark Morrell, the founder and CEO
Speaker 1: of Get Main Lobster. It's seven online delivery service of
Speaker 1: lobsters and more for you look at the upcoming season.
Speaker 1: And as our listeners know, we often like to first
Speaker 1: ask our guests about managing through the pandemic. That's where
Speaker 1: we began with Mark, and it turns out we wanted
Speaker 1: lobsters during Lockdown's figure we had the benefit of you know,
Speaker 1: food service and casinos and cruise ships, right they were
Speaker 1: no longer big lobster customers. So we had plenty of
Speaker 1: lobster available for quite a long time for you know,
Speaker 1: a good eight ten months. We didn't have to fight resourcing.
Speaker 1: Um that's changed today. You know. It's interesting, you know, Mark,
Speaker 1: we talked to a lot of folks and they say,
Speaker 1: you know, initially we thought our business we were doomed.
Speaker 1: Was it like that for you guys initially or was
Speaker 1: it no? People were saying okay, because they quickly moved online.
Speaker 1: They just were ordering more and more, which one was it.
Speaker 1: So my financial advisors said, hey, we have to have
Speaker 1: the talk. You need to get prepared just in case.
Speaker 1: And I said, yes, that would be the responsible thing
Speaker 1: for us to do. Let's do that. I said. However,
Speaker 1: what I'm noticing is higher than normal velocity with orders,
Speaker 1: and so I think we're going to have the opposite effect. Um,
Speaker 1: you know we did. We grew. It's pretty wild. That
Speaker 1: is crazy. Wow. During the pandemic um and as you said,
Speaker 1: like so many of us and so many companies, big, small,
Speaker 1: middle size just kind of being able to tap the
Speaker 1: supply chain that they needed. Um. And that's even with
Speaker 1: as you said, the cruise industry, they weren't there anymore, right, Yeah,
Speaker 1: they're no longer customers. So think about a large purveyor
Speaker 1: and they have stocked in their freezers that are you know,
Speaker 1: the size of small homes, and they're preparing to release
Speaker 1: that you know in the off season. Well, all of
Speaker 1: their customers left overnight, so they were freaking out. Um.
Speaker 1: But then there was companies like mine that said, hey,
Speaker 1: I need to fill my freezer. Can I take yours?
Speaker 1: So so it shifted, right, and then that was great
Speaker 1: and plus you know some of them you know, turned
Speaker 1: around and thirty days later they were sailing online as well.
Speaker 1: So good for them for being able to pivot. You know,
Speaker 1: we were designed perfectly for an instance. So what are
Speaker 1: you seeing right now? Demand is still very very high. However,
Speaker 1: supply is extremely low. You know, the catch has been low. Um,
Speaker 1: that's typical this time of year. There's less traps in
Speaker 1: the water here in Maine. Um. I think they're waiting
Speaker 1: until um, you know, the lobster's get a little bit
Speaker 1: closer to shore. You know, they're migrating right now, head
Speaker 1: into you know, cooler waters, better environment for them to
Speaker 1: begin to shed their shell. And yeah, it's an interesting time.
Speaker 1: It's Uh, sourcing is very very difficult. We don't have
Speaker 1: access to the what I call hero products. You know
Speaker 1: that people love larger tales and things like that. Yeah,
Speaker 1: so okay, as you said, the catch is low this
Speaker 1: time of year, Supply is very low. So how much
Speaker 1: is my lobster going to cost me? I've never seen
Speaker 1: it this high this time of year. And you know,
Speaker 1: really the live lobster isn't too crazy, but you know
Speaker 1: it's when you converted into lobster meat, you know. I'm
Speaker 1: sure he saw in the New York Times thirty four
Speaker 1: dollar lobster roll. I mean that's real and uh. The
Speaker 1: interesting thing though is, you know consumers are are being
Speaker 1: understanding and they really want lobster. Demand it's still really high, um,
Speaker 1: you know, so I won't see the price moving much
Speaker 1: unless the catch increases dramatically, which it is supposed to. Um.
Speaker 1: Even then, I don't know if they'll be a drastic
Speaker 1: drop or not. I haven't seen anything like this before.
Speaker 1: We'll tell me a little about because you guys, I know,
Speaker 1: think about and are involved with sustainable fisheries in terms
Speaker 1: of getting your seafood, I think we just take for
Speaker 1: granted fish or lobsters or shrimp or scallops or whatever. Oysters.
Speaker 1: I spend time in the Long Island Sound, so I
Speaker 1: see the lobster traps. You know, we have to dodge them.
Speaker 1: What's involved in farming when it comes to fish specifically,
Speaker 1: and how do you do it in a in a
Speaker 1: healthy way, sustainable way. Well, it's released to lobster, and
Speaker 1: we can't catch anything that's blow point nine pounds, nothing
Speaker 1: above four. And if we catch our pregnant female, we
Speaker 1: mark them by cutting a v notch and more of
Speaker 1: their fins, and then we put her back in right,
Speaker 1: and she's going to help breed a whole bunch of
Speaker 1: more lobsters. And everything's still done by hands. And lobster
Speaker 1: men are independent. They're very much committed and have been
Speaker 1: since the industry started with sustainability. I mean, it's a
Speaker 1: huge markets remain. We need to keep it going. And
Speaker 1: same thing with main scouts. Right, the season is not
Speaker 1: very long. We're always very thoughtful about any kind of
Speaker 1: species that we're fishing to make sure that it's not
Speaker 1: overfish has plenty of time to recoup. You know, Pea
Speaker 1: food industries feap food consumption is increased dramatically in the
Speaker 1: last two so you know, we really have to as consumers,
Speaker 1: we really should be thinking about diversifying a palette, not
Speaker 1: just focusing on one particular species extent your favorite. You know,
Speaker 1: venture out, try some new things. Restaurants are always bringing
Speaker 1: new things to market. We just started selling a trout
Speaker 1: that comes out of upstate New York steelhead trout and
Speaker 1: it's a beautiful, farmed, clean fish. Well, you know, we
Speaker 1: talk a lot about food on this broadcasting on air specifically,
Speaker 1: and we talk a lot about sustainable farming generally and
Speaker 1: kind of feeding the world. What's and also about innovation
Speaker 1: within the food space. What's the innovation in your space
Speaker 1: or is it you know, the way you gather it's
Speaker 1: very similar to how it was done ten years ago,
Speaker 1: twenty years ago, fifty years ago. Yeah. I think the
Speaker 1: innovation wise with how can us consumers are evolving in
Speaker 1: we feel busier. I don't know if we are, but
Speaker 1: we feel busier. Right. So, um, my particular business, we're
Speaker 1: focused on ready to ready to heat. So how can
Speaker 1: I design because the technology is there? Restaurant five star
Speaker 1: quality meals that are flash frozen twitter to your doorstep,
Speaker 1: put them in the oven. Twenty minutes later you're having
Speaker 1: this amazing meal, like a lobster risotto with a teragon butter.
Speaker 1: Sounds good, you know. We Yeah, we put together a
Speaker 1: topino and uh, send everybody the ingredients and I had
Speaker 1: to do a little bit of work. But you know,
Speaker 1: we have a lot of home chefs now because of
Speaker 1: last year, so it's kind of neat being able to
Speaker 1: get more creative with the demand is there. Well, it's
Speaker 1: interesting to what you said that how people have to
Speaker 1: kind of expand their palette and one of the things
Speaker 1: that's enabled people to kind of go in a completely
Speaker 1: different places all of the plant based food and there's
Speaker 1: plant based shrimp. We're seeing it go into the seafood
Speaker 1: market as well. What do you think about that? You know,
Speaker 1: it's funny you mentioned that because it's part of our
Speaker 1: expansion plant is to get into you know, more plant
Speaker 1: and land. Right, we want to be able to serve
Speaker 1: anyone and everyone based upon their dietary preferences. We're even
Speaker 1: coming out with a new summer box that includes some
Speaker 1: vegan burgers. But as it relates to designing you know,
Speaker 1: vegan shrimp and vegan tuna and even this crazy stuff
Speaker 1: that's going in labs where they're building a chicken breast
Speaker 1: from nothing. Um, that one's peculiar to me. I don't
Speaker 1: know how people are going to feel about it, but
Speaker 1: plant based is a big thing, and we should be
Speaker 1: designing the flavors that people love so that they can
Speaker 1: feel like they're not missing out. Right, it's a big thing,
Speaker 1: and am I missing out if I become plant based?
Speaker 1: And um, it's kind of neat that people can engineer flavors,
Speaker 1: uh and textures for those people. So I'm all about
Speaker 1: it well. I love to hear that. Um, we've just
Speaker 1: got about forty fifty seconds left here. What kind of
Speaker 1: summer do you think it's going to be when it
Speaker 1: comes to sales, when all of a sudden and done
Speaker 1: just quickly. Yeah, yeah, I'm confidence gonna be great. I'm
Speaker 1: excited that. Um, the local main businesses are going to
Speaker 1: be very, very busy this summer, So that's exciting. Um,
Speaker 1: And I know that people are going to want me
Speaker 1: to ship them some lobsters, and you know, we love that.
Speaker 1: I think the catch is going to increase. I just
Speaker 1: think we're a couple. We're delayed by a couple of weeks,
Speaker 1: and slowly but surely everything will kind of get back
Speaker 1: to normal. You know, the price may or may not change.
Speaker 1: Some people are telling me it's not going to change.
Speaker 1: Some people are saying, yeah, it's going to go down.
Speaker 1: So you know, we just kind of watch and we
Speaker 1: try to, you know, create value and write be transparent.
Speaker 1: That was Mark Morrell, founder and CEO of Get Maine.
Speaker 1: Lobster Like lobster I do. I went to college in Maine.
Speaker 1: Did you eat a lot? No? So, I actually I
Speaker 1: grew up in California. I've never had a lobster until
Speaker 1: I went to college. And did you like it that
Speaker 1: when you had it? Yeah? I did like it, and
Speaker 1: you know, I don't eat it frequently, but um, but yeah,
Speaker 1: it's the type of thing I could eat it once
Speaker 1: a year. The tail or, everything, everything. Okay, let's cool.
Speaker 1: Go for the clause at all. Yeah, lobster rolls too
Speaker 1: a lot easier. Impressive, impressive. All right, that reps up
Speaker 1: that we can addition in a Bloomberg business Week from
Speaker 1: Bloomberg Radio. Thanks so much for joining us. Everyone. I'm
Speaker 1: Carol Masso and I'm Tim stead of k Be sure
Speaker 1: to tune into our Bloomberg business Week daily show Monday
Speaker 1: through Friday. It starts at two pm Wall Street Time
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Speaker 1: and have some lobster. This is Bloomberg.