WEBVTT - Bloomberg Businessweek Weekend - August 8th, 2020 0:00:00.960 --> 0:00:04.480 This is Bloomberg Business Week with Carol Masser and Jason 0:00:04.600 --> 0:00:08.440 Kelly from Bloomberg Radio. Hi. I'm Jason Kelly and I'm 0:00:08.480 --> 0:00:11.399 Carol Masser. Welcome to the weekend edition of Bloomberg Business Week. 0:00:11.440 --> 0:00:13.080 Over the next couple of hours, we're going to bring 0:00:13.080 --> 0:00:15.400 you news of the week, insights from the magazine, and more. 0:00:15.440 --> 0:00:17.960 And Jason, let's not forget it's week twenty one, dog 0:00:18.040 --> 0:00:21.079 days of summer, and yet an incredibly busy week on 0:00:21.120 --> 0:00:23.640 many fronts. We talked a lot about the virus and vaccine. 0:00:24.000 --> 0:00:25.920 We're going to cover that over the next couple of hours, 0:00:26.040 --> 0:00:28.760 and a lot of talk about education and what they're 0:00:28.840 --> 0:00:32.080 ultimately going to do this fall. And I think it's 0:00:32.120 --> 0:00:36.040 safe to say that the virus and its economic, social 0:00:36.200 --> 0:00:41.760 cultural effects have really started to embed themselves broadly in 0:00:41.840 --> 0:00:44.080 the world. And the cover story this week it's all 0:00:44.120 --> 0:00:47.520 about Google's push into healthcare. How it's a case study 0:00:47.600 --> 0:00:52.040 on how tech giants dominate small businesses. And again, this 0:00:52.159 --> 0:00:56.360 is partially and largely, i should say, related to the pandemic. Yeah, 0:00:56.360 --> 0:00:58.800 and also related to the pandemic sports and we got 0:00:58.840 --> 0:01:00.400 to check in with the owner of the sack Gramento 0:01:00.560 --> 0:01:03.360 Kings what they are doing. He's actually in the bubble 0:01:03.720 --> 0:01:06.440 in Disney World, so we talked to him about playing 0:01:06.480 --> 0:01:08.920 sports in a pandemic. We also talked with him about 0:01:09.000 --> 0:01:12.240 upping his bet on something that's become Wall Street's favorite 0:01:12.240 --> 0:01:15.319 new toy. We're talking about SPACs. That's right, those blank 0:01:15.360 --> 0:01:19.039 check companies. It feels like anyone who's anyone has got 0:01:19.160 --> 0:01:22.080 one of those these days. Raising money going public in 0:01:22.080 --> 0:01:25.720 a slightly different way. First, we spoke with Dr Joanne Roberts, 0:01:25.760 --> 0:01:29.360 the Chief value officer over at Providence St. Joseph Health. Remember, 0:01:29.400 --> 0:01:31.520 and I know you know this girl, but let's remind 0:01:31.560 --> 0:01:34.600 everybody this was the first health system in the United 0:01:34.640 --> 0:01:39.200 States with a confirmed case of coronavirus back earlier in 0:01:39.240 --> 0:01:42.560 the year, so they have seen this all along the way. Yeah, 0:01:42.640 --> 0:01:44.800 from day one. It's a massive health care system. So 0:01:44.840 --> 0:01:47.960 we checked in with her about the virus, about the 0:01:48.040 --> 0:01:50.400 race to get a vaccine and all those treatments to 0:01:50.440 --> 0:01:53.600 really get control of COVID nineteen. What we're seeing in 0:01:53.760 --> 0:02:00.160 Providence is our hospitalizations remain relatively high, but they are 0:02:00.240 --> 0:02:03.960 leveling off. What we are seeing in the community, however, 0:02:04.200 --> 0:02:08.519 is an increasing number of positive tests in the community, 0:02:08.720 --> 0:02:11.400 um uh, pretty much up and down the West coast, 0:02:11.520 --> 0:02:15.359 especially in the Pacific Northwest. So we are by no 0:02:15.480 --> 0:02:18.840 means out of the woods yet, even though we are 0:02:18.880 --> 0:02:24.560 happy about the leveling off of the hospitalizations. So Dr Roberts, 0:02:24.639 --> 0:02:28.080 as you look across the country and having had the experience, 0:02:28.120 --> 0:02:31.000 as we often point out when we have guests from 0:02:31.080 --> 0:02:33.400 your institution, you guys had the first US case that 0:02:33.440 --> 0:02:38.320 the coronavirus confirmed. You have seen this develop from essentially 0:02:38.360 --> 0:02:41.040 start to finish the United States. What's the biggest mistake 0:02:41.120 --> 0:02:43.480 people are making when it comes to reopening? Well, I 0:02:43.480 --> 0:02:46.080 think we we hear it uh and and all of 0:02:46.080 --> 0:02:49.919 our from all of our scientists. It is the distancing 0:02:50.480 --> 0:02:55.320 the masks, avoiding crowds, and maintaining good hand hygiene. If 0:02:55.360 --> 0:02:58.160 we could stick to those four things, I think we 0:02:58.200 --> 0:03:01.920 could get to an opening faster with some of the 0:03:02.000 --> 0:03:06.760 institutions in our in our country. But since not everybody 0:03:07.120 --> 0:03:10.440 is abiding by that, what does it mean? I mean, 0:03:10.480 --> 0:03:13.440 do we need to shut down again in order to 0:03:13.480 --> 0:03:16.760 get control of this? Gosh? You know, I I look 0:03:16.800 --> 0:03:20.280 at the news shows myself and I tell myself, I'm 0:03:20.320 --> 0:03:23.280 glad I'm a doctor and not a policymaker, these are 0:03:23.360 --> 0:03:27.960 difficult choices for our country to make. Um. What I 0:03:28.040 --> 0:03:33.079 can say is, if we exercise those four things, we 0:03:33.120 --> 0:03:37.839 would probably be able to open school safely, maybe some 0:03:37.960 --> 0:03:43.160 other institutions safely, but maybe not bars um, maybe not 0:03:43.240 --> 0:03:46.600 you know, maybe not sports events yet. But we could 0:03:46.680 --> 0:03:49.840 move faster than we are moving. But we haven't all 0:03:49.880 --> 0:03:52.440 come together, as you said, on just those four for 0:03:53.400 --> 0:03:56.160 so we need to do so. Dr Arwards talked to 0:03:56.240 --> 0:03:59.360 us about schools. It's top of mind for both Carol 0:03:59.480 --> 0:04:01.560 and me having school aged kids. I know for a 0:04:01.600 --> 0:04:04.200 lot of our listeners it's the thing that they think 0:04:04.240 --> 0:04:07.160 about all the time, both on behalf of their kids, 0:04:07.160 --> 0:04:10.200 but also behalf on behalf of themselves, because it affects 0:04:10.240 --> 0:04:13.320 where you can work, if you can work, etcetera. What 0:04:13.400 --> 0:04:16.160 are the main things, you know, sort of taking those 0:04:16.200 --> 0:04:20.160 four things as givens, how do you execute that at 0:04:20.200 --> 0:04:22.640 a school, at an elementary school or a high school 0:04:22.640 --> 0:04:27.520 where proximity is baked in? How do you actually do 0:04:27.560 --> 0:04:31.479 it mechanically and logistically. I think every school has to 0:04:31.520 --> 0:04:34.040 figure out their own solutions for this, or at least 0:04:34.040 --> 0:04:37.880 every district, And and maybe that's one of the blessings 0:04:38.000 --> 0:04:42.440 of having so many districts, because the other factor when 0:04:42.480 --> 0:04:46.279 it comes to schools that's really crucial is what the 0:04:46.320 --> 0:04:51.719 prevalence of infection rate is in your community. If the 0:04:51.760 --> 0:04:56.040 prevalence rate is very, very low, then it's much it's 0:04:56.080 --> 0:05:00.200 relatively safer to open up based to face schools the 0:05:00.200 --> 0:05:04.599 prevalence is very high, probably not, and I think so 0:05:04.720 --> 0:05:07.560 each district test it has to gauge that. So let 0:05:07.560 --> 0:05:10.719 me go one level down on you with you on this, 0:05:10.880 --> 0:05:13.880 because it is you know, what we've heard from the 0:05:13.880 --> 0:05:16.920 Mayor of New York City is three percent is sort 0:05:16.920 --> 0:05:19.640 of the threshold in terms of an infection rate. I 0:05:19.640 --> 0:05:22.680 believe it gets above three percent, then you can't open 0:05:23.680 --> 0:05:28.160 Is that just owing to the nature of the spread. 0:05:28.279 --> 0:05:31.040 I'm just trying to understand this from a layman's perspective 0:05:31.040 --> 0:05:33.000 as to sort of what the magic numbers are here. 0:05:33.040 --> 0:05:36.680 If there are magic numbers, there probably isn't a magic number. 0:05:36.880 --> 0:05:39.640 I mean, in our in our institution, we we often 0:05:39.800 --> 0:05:43.920 use one percent as a guide, but there's no perfect number. 0:05:44.640 --> 0:05:49.279 But the issue is that the risk goes up exponentially 0:05:50.000 --> 0:05:53.720 as the rate of infection goes up. So just if 0:05:53.760 --> 0:05:56.760 you have one in five kids who is infected in 0:05:56.800 --> 0:06:00.560 the classroom, the rate of infection that they're going to 0:06:00.680 --> 0:06:05.320 spread is much much higher than I, say, one in 0:06:06.640 --> 0:06:08.760 And that's Dr Joe and Roberts, the Chief Value Officer 0:06:08.839 --> 0:06:11.760 Providence St. Joseph Health. Really, you know, we have this 0:06:11.960 --> 0:06:14.480 small stable, even very fortunate, Carol, to have this small 0:06:14.480 --> 0:06:17.240 stable of go to voices, and the folks at Providence St. 0:06:17.279 --> 0:06:20.039 Joseph Health they've seen it literally from the beginning here 0:06:20.040 --> 0:06:23.240 in the United States, and they're keeping a very close 0:06:23.279 --> 0:06:25.680 eye along with their colleagues. It's a big healthcare system, 0:06:25.680 --> 0:06:27.960 but they're also talking to folks all across the country. Yeah, 0:06:27.960 --> 0:06:29.680 and one of the next hurdles, you know that really 0:06:29.760 --> 0:06:32.200 jumped out for me and our conversation was making sure 0:06:32.920 --> 0:06:36.039 um that we have enough vaccines, production and allocation of 0:06:36.080 --> 0:06:38.839 them and making sure we protect the people that need 0:06:38.839 --> 0:06:40.640 it the most and get them out in a really 0:06:40.680 --> 0:06:42.719 fast way. By the way, that entire interview can be 0:06:42.720 --> 0:06:45.480 found on our Bloomberg Business Week podcast, so check that out. 0:06:45.800 --> 0:06:48.680 Another obstacle Jason to overcome that we are minded about 0:06:48.760 --> 0:06:51.240 daily because of the virus is the problems with our 0:06:51.360 --> 0:06:54.920 overall healthcare system. What needs to change to get it right. 0:06:54.920 --> 0:06:58.000 That conversation with Dr Vivian Lee, president of health Platforms 0:06:58.000 --> 0:07:01.080 at Verily Life Sciences, that's coming up. This is Bloomberg. 0:07:04.960 --> 0:07:08.480 This is Bloomberg Business Week with Carol Masser and Jason 0:07:08.600 --> 0:07:12.360 Kelly from Bloomberg Radio. Today we're being some most important 0:07:12.360 --> 0:07:15.160 and informative conversations we had on our daily Bloomberg Business 0:07:15.200 --> 0:07:17.920 Week radio show this week, and Carol spent a lot 0:07:17.960 --> 0:07:20.600 of time with doctors, as we tend to do every week. Yeah, 0:07:20.600 --> 0:07:23.080 and that included Jason. Dr Vivian Lee. She's president of 0:07:23.120 --> 0:07:26.200 health Platforms at Verily Life Sciences. She's the former CEO 0:07:26.240 --> 0:07:29.240 of the University of Utah Health System. She's also written 0:07:29.240 --> 0:07:32.240 a book, The Long Fix, Solving America's healthcare crisis with 0:07:32.320 --> 0:07:34.480 strategies that work for everyone. So we talked with her 0:07:34.960 --> 0:07:38.080 about the healthcare systems and also opening up schools. You know, 0:07:38.120 --> 0:07:41.760 we're pretty much struggling on almost all fronts except for one, 0:07:41.800 --> 0:07:43.680 which is I have to say that I think that 0:07:43.760 --> 0:07:48.920 the heroic measures that are frontline healthcare workers have been demonstrating. 0:07:48.960 --> 0:07:51.000 I think that that is something that we should all 0:07:51.320 --> 0:07:54.280 continue to celebrate. But in terms of the system itself, 0:07:54.560 --> 0:07:56.960 I think we we are seeing, as you say, so 0:07:57.000 --> 0:07:59.120 many of its flaws right now. All right, so let'sten 0:07:59.280 --> 0:08:01.680 vision that we have a strategy session right of all 0:08:01.680 --> 0:08:05.280 the great minds in the medical community, global medical community 0:08:05.280 --> 0:08:08.080 for that matter, and we can make this system better. 0:08:08.160 --> 0:08:10.440 What would be the three things you would change from 0:08:10.560 --> 0:08:15.000 day one? Well, for the for to start with, we 0:08:15.040 --> 0:08:18.720 have to really change how we're paying for health care 0:08:18.720 --> 0:08:20.880 and what we're paying for. Right now, we are paying 0:08:21.400 --> 0:08:23.480 in a fee for service model for things to be 0:08:23.560 --> 0:08:27.040 done to us regardless of whether they make us healthier 0:08:27.120 --> 0:08:29.800 or not. And that fee for service kind of model 0:08:30.320 --> 0:08:33.480 means that our health care systems just live from fee 0:08:33.480 --> 0:08:35.560 to fee, and as you can see with COVID, as 0:08:35.600 --> 0:08:38.720 many of them have been having, you know, empty clinics 0:08:38.720 --> 0:08:41.920 and empty hospitals, they're actually being forced to shut down 0:08:42.000 --> 0:08:44.440 or even lay off people in so many in so 0:08:44.520 --> 0:08:46.800 many different parts of the country, especially rule parts of 0:08:46.800 --> 0:08:49.079 the country. So first as we really have to change 0:08:49.080 --> 0:08:51.599 the way in which we are paying for healthcare. The 0:08:51.640 --> 0:08:54.920 second thing is we really have to um take advantage 0:08:54.960 --> 0:08:58.840 of the new technologies. Telehealth is one example. We're seeing 0:08:58.880 --> 0:09:02.400 a lot greater use of that more digital health solutions 0:09:02.440 --> 0:09:04.920 so that people can look after their own health in 0:09:05.000 --> 0:09:08.199 their homes, in their in their workplace environments for example. 0:09:08.440 --> 0:09:11.040 But those have to again be used in a way 0:09:11.080 --> 0:09:14.800 in which they're paid for generating better health, not just 0:09:14.920 --> 0:09:17.240 for doing more things to people. So take advantage of 0:09:17.280 --> 0:09:19.520 more of the technology. And then the third is I 0:09:19.520 --> 0:09:23.160 think we need a lot more transparency about what it 0:09:23.240 --> 0:09:25.160 is we're going to have to pay for, how much 0:09:25.160 --> 0:09:27.520 it's going to cost, why it cost, what it does, 0:09:28.040 --> 0:09:30.719 so that we can really start to link up the 0:09:30.760 --> 0:09:35.320 costs with what we're actually getting for those dollars. And so, 0:09:35.720 --> 0:09:38.640 dr Lee part of what you're talking about. A lot 0:09:38.640 --> 0:09:41.720 of what you're talking about, especially in that description, goes 0:09:41.760 --> 0:09:45.960 against some very entrenched economic interest. There are a lot 0:09:46.000 --> 0:09:50.720 of folks, especially big companies on the managed care side, 0:09:50.960 --> 0:09:53.800 on the health care system side, on the pharmaceutical side, 0:09:54.240 --> 0:09:57.840 they and maybe they wouldn't admit this in the cold 0:09:57.920 --> 0:10:00.000 light of day, they kind of like the way it were. 0:10:00.200 --> 0:10:03.720 They're making a lot of money. How do you essentially 0:10:03.800 --> 0:10:07.760 make the case to policy officials, many of whom hear 0:10:07.840 --> 0:10:11.800 from these companies through lobbying. How do you sort of 0:10:12.000 --> 0:10:14.320 make this change? How do you break the system in 0:10:14.320 --> 0:10:16.840 a way that people might be okay with. Well, there's 0:10:16.840 --> 0:10:19.080 no question that change is hard, but I think you'd 0:10:19.080 --> 0:10:23.960 be surprised at how much support there is for change, 0:10:24.280 --> 0:10:27.400 especially right now. So when you talk about managed care, 0:10:27.440 --> 0:10:31.640 companies are insurers, they actually really want people to stay healthy. 0:10:31.679 --> 0:10:34.440 The healthier people are, the less they have to pay out, 0:10:34.559 --> 0:10:38.360 and the better they do. Most health care systems, most 0:10:38.559 --> 0:10:42.679 people who come into healthcare, physicians, nurses, therapists, we want 0:10:42.720 --> 0:10:45.640 our patients to be healthy. We are not hoping for 0:10:45.679 --> 0:10:48.120 them to be sick. But what we want to do 0:10:48.360 --> 0:10:51.760 is to have just better alignment. So we're paid for 0:10:51.800 --> 0:10:53.680 them to be healthier. You know, right now, we just 0:10:53.720 --> 0:10:55.720 have the wrong incentives, right we are only paid if 0:10:55.760 --> 0:10:59.080 they're sick. But actually, in some cases, like some clinics 0:10:59.080 --> 0:11:02.840 that are welling in a Medicare advantage model, and there 0:11:02.880 --> 0:11:04.680 are these clinics that are all over the country where 0:11:04.679 --> 0:11:06.760 they're just paid a fixed amount of money to keep 0:11:06.840 --> 0:11:09.960 their UH seniors healthy, and they get paid that fixed 0:11:09.960 --> 0:11:13.440 amount no matter what happens. They actually are are doing 0:11:13.520 --> 0:11:16.640 much better. They're actually spending more time with patients, there's 0:11:16.760 --> 0:11:21.120 less burnout, the patients are hospitalized much less and so 0:11:21.160 --> 0:11:23.719 they actually do better. So there really are some some 0:11:23.840 --> 0:11:27.880 strong incentives right now for moving to what we call 0:11:27.920 --> 0:11:31.440 it paying for better health or paying for outcomes model, 0:11:31.480 --> 0:11:33.000 But we just have to get it all aligned at 0:11:33.040 --> 0:11:35.960 the same time so that we all make that transition together. 0:11:36.080 --> 0:11:37.880 We do want to bring you a little piece of 0:11:37.920 --> 0:11:40.720 an interview that are David Weston did with Dr Anthony Fauci. 0:11:40.840 --> 0:11:44.360 Check it out. Everybody, if you're talking about a medical question, 0:11:45.120 --> 0:11:49.120 listen to the medical experts. That's the advice, and you 0:11:49.160 --> 0:11:53.240 won't get it. You will not get a conflicting message 0:11:53.760 --> 0:11:58.360 from the medical experts about things like hydroxy chloroquine, about 0:11:58.440 --> 0:12:01.400 what the results of the vaccine trial aw or what 0:12:01.520 --> 0:12:04.480 the results of monoclonal anybody. So when it comes to 0:12:04.640 --> 0:12:08.600 pure public health medical things, listen to what the medical 0:12:08.640 --> 0:12:12.400 experts say. So, Dr Lee, you are a medical expert, 0:12:12.480 --> 0:12:15.640 I'm assuming you agree with what we heard from Dr Fauci. 0:12:15.760 --> 0:12:18.440 What would you say, then, is the right thing to 0:12:18.480 --> 0:12:23.000 do when it comes to reopening schools and colleges and universities. 0:12:23.440 --> 0:12:26.199 You know, we are in such a difficult situation right 0:12:26.200 --> 0:12:29.600 now because we need to keep our economy going. We 0:12:29.640 --> 0:12:31.720 actually need to invest in our future, which is I 0:12:31.760 --> 0:12:33.920 think a big part of why we need to get 0:12:33.920 --> 0:12:38.280 our universities back up this fall. Those students need to 0:12:38.320 --> 0:12:41.360 continue study because there are future And at the same time, 0:12:41.840 --> 0:12:45.320 we have this massive upswing in COVID across the country 0:12:45.360 --> 0:12:46.920 and we have to keep healthy. We have to keep 0:12:46.960 --> 0:12:50.199 everyone healthy, so there's a tension. I think it's pretty 0:12:50.200 --> 0:12:55.360 clear that wearing masks, social distancing, handwashing, making sure that 0:12:55.400 --> 0:12:58.720 if you're sick or have been exposed, that you isolate. UM, 0:12:58.760 --> 0:13:04.080 that these precautions or these measures do work. UM for 0:13:04.320 --> 0:13:08.120 college campuses. We actually just put out a paper last 0:13:08.160 --> 0:13:12.320 week recommending putting forward a series of four recommendations for 0:13:12.440 --> 0:13:15.720 reopening our college campuses, and I'm happy to just go 0:13:15.800 --> 0:13:18.640 through those very quickly. UM. The first is that we're 0:13:18.640 --> 0:13:21.000 really recommending that on top of all of the social 0:13:21.040 --> 0:13:24.840 discipue mask and everything, this is specifically around COVID nineteen testing. 0:13:25.480 --> 0:13:29.840 It's recognizing that so many people, especially and including college 0:13:29.840 --> 0:13:33.520 aged kids, um, are asymptomatic, even though they may be 0:13:33.679 --> 0:13:36.559 COVID nineteen positive and may be able to infect other people, 0:13:36.760 --> 0:13:40.720 and so as a result, testing is really central to 0:13:41.120 --> 0:13:43.720 our strategies. So first, we're recommending that everyone get tested 0:13:44.320 --> 0:13:47.160 before they really engage back in the college campus, so 0:13:47.200 --> 0:13:51.000 either before they arrived back or right after they arrive. Secondly, 0:13:51.040 --> 0:13:53.599 we're recommending that they get tested about a week afterwards 0:13:53.679 --> 0:13:55.600 to pick up those people who might have gotten sick 0:13:55.640 --> 0:13:59.280 along the way or whose tests were inaccurate, because there 0:13:59.280 --> 0:14:01.839 are sometimes people may have the exposure but the test 0:14:01.920 --> 0:14:04.520 might not be positive. Then we recommend everyone who does 0:14:04.600 --> 0:14:08.640 become symptomatic get tested of course. And then finally we're 0:14:08.679 --> 0:14:11.960 also recommending that at least a subset of people who 0:14:11.960 --> 0:14:16.679 are asymptomatic get tested regularly throughout the semester. So those 0:14:16.679 --> 0:14:19.080 are some of our recommendation. That's Dr Vivian Lee, the 0:14:19.080 --> 0:14:22.560 president of Health Platforms at Verily Life Sciences, and Jason. 0:14:22.560 --> 0:14:25.880 Many things stuck with me, especially our conversation around opening 0:14:25.960 --> 0:14:27.920 up schools, what needs to be done, and that we 0:14:27.960 --> 0:14:30.680 need to get them opened up because those students at 0:14:30.800 --> 0:14:34.000 colleges and universities they are our future. So check out 0:14:34.000 --> 0:14:36.600 that full conversation it's on our podcast speed Well. And 0:14:36.680 --> 0:14:39.600 obviously this is the big question for everyone. I mean, 0:14:39.640 --> 0:14:42.120 the schools sit at the center of the entire economy. 0:14:42.160 --> 0:14:44.920 I think we've really come to realize that as we've 0:14:44.920 --> 0:14:47.280 talked about what reopening looks like and what getting the 0:14:47.320 --> 0:14:50.000 economy back on track really looks like. You're listening to 0:14:50.040 --> 0:14:53.200 Bloomberg Business Week, Well, as we try to figure out 0:14:53.280 --> 0:14:55.400 what happens X, we're spending more time at home and 0:14:55.480 --> 0:14:57.640 probably listening to some music. We're going to hear from 0:14:57.640 --> 0:15:00.400 the president and CEO of Sonos, Patrick Spence. Yeah, they 0:15:00.440 --> 0:15:03.360 reported earnings and the stock moved on that report that's 0:15:03.400 --> 0:15:10.640 coming up. This is Bloomberg. This is Bloomberg Business Week 0:15:10.720 --> 0:15:14.840 with Carol Masser and Jason Kelly from Bloomberg Radio. We'll 0:15:14.840 --> 0:15:17.120 bring you some of the most important and informative conversations 0:15:17.160 --> 0:15:19.280 we had on our daily radio show throughout the week. 0:15:19.280 --> 0:15:21.680 And Jason would like to remind everybody this was happening 0:15:21.680 --> 0:15:24.520 in real time as news continued to evolve across the 0:15:24.520 --> 0:15:27.080 Bloomberg terminal. Well, that's absolutely true. And one of the 0:15:27.120 --> 0:15:28.640 things that we've been in the midst of over the 0:15:28.640 --> 0:15:31.240 past few weeks is earnings, and we're starting to get 0:15:31.240 --> 0:15:35.240 a window into what different companies are experiencing in this 0:15:35.360 --> 0:15:38.560 very uncertain time. That's certainly true at Sons. We caught 0:15:38.640 --> 0:15:41.560 up with that company's president and CEO of Patrick Spence. 0:15:41.720 --> 0:15:45.560 We were ahead of an expectations both on top and 0:15:45.840 --> 0:15:49.560 bottom line, and we actually re established guidance for for 0:15:49.840 --> 0:15:52.200 Q four, our next quarter as well, which is also 0:15:52.240 --> 0:15:55.240 ahead of guidance. So we're feeling very good about what 0:15:55.360 --> 0:15:58.040 we've been able to achieve UM in the face of 0:15:58.040 --> 0:16:00.920 the pandemic and in the face of so many retail closures. 0:16:00.920 --> 0:16:03.360 I think that's the story to me, is really the 0:16:03.400 --> 0:16:05.960 adaptability and resilience of the team. Our our team has 0:16:06.000 --> 0:16:10.320 done an amazing job this quarter to really refocus on 0:16:10.400 --> 0:16:13.840 direct to consumer and to launch three new products UM 0:16:13.880 --> 0:16:15.920 in a different way. Given everything that was happening at 0:16:15.920 --> 0:16:18.920 the pandemic, we couldn't do our usual type of big 0:16:18.960 --> 0:16:21.600 product launch in person, couldn't meet with all the reviewers, 0:16:21.640 --> 0:16:24.200 couldn't give them, you know, an ability to look at 0:16:24.360 --> 0:16:27.120 and here our products. But I'm sure hasn't stopped customers 0:16:27.160 --> 0:16:29.480 from buying a lot of them. Yeah, including us. We 0:16:29.840 --> 0:16:32.080 picked up a couple of the move UM because we're 0:16:32.120 --> 0:16:35.000 spending more time in our backyard. You're welcome, Uh, you know, 0:16:35.160 --> 0:16:38.440 I really do think that focus Patrick on everybody's homes. 0:16:38.480 --> 0:16:40.800 I think we're seeing it play out in multiple ways 0:16:41.240 --> 0:16:43.320 with some of the companies that we talked to. I 0:16:43.360 --> 0:16:44.880 do want to take a step back. Tell me what 0:16:44.960 --> 0:16:48.320 life has been like for you all, um, you know, 0:16:48.440 --> 0:16:51.720 your team, your company, and then really for you, for 0:16:51.800 --> 0:16:55.520 you personally since since really mid March. Yeah, it's been 0:16:55.800 --> 0:16:57.240 a lot of time at home. You know, a lot 0:16:57.240 --> 0:16:59.160 of people talk about working from home, but we're also 0:16:59.280 --> 0:17:02.120 living at work, as I said to UH to my team, right, 0:17:02.160 --> 0:17:05.119 and so it's been challenging, UH in terms of doing that. 0:17:05.200 --> 0:17:07.840 I think there's been a lot of adrenaline quite frankly, 0:17:07.880 --> 0:17:10.960 that has carried us through and everybody wanted to be 0:17:11.000 --> 0:17:14.359 able to step in and figure this all out. Thankfully, 0:17:14.520 --> 0:17:19.119 we've always been distributed across Santa Barbara, Boston, Seattle, Amsterdam, China, 0:17:19.240 --> 0:17:22.119 so we we we already were using to have like 0:17:22.280 --> 0:17:25.040 Zoom and slack um, but we've really had to up 0:17:25.080 --> 0:17:28.360 the communication. And then for us, since we build hardware, 0:17:28.800 --> 0:17:31.840 you know, it's it's actually quite difficult because we need 0:17:31.880 --> 0:17:35.679 people that are actually working and testing products in some 0:17:35.800 --> 0:17:38.280 of our physical locations. So we've had to put some 0:17:38.480 --> 0:17:41.240 really strict measures in place to ensure their safety because 0:17:41.560 --> 0:17:43.600 you know, the primary thing through all of this has 0:17:43.640 --> 0:17:46.680 had to been you know, really keeping our people safe 0:17:46.720 --> 0:17:49.200 and healthy. And so we do have a few people 0:17:49.560 --> 0:17:52.760 in some of our offices that that need access to 0:17:52.760 --> 0:17:55.600 certain equipment and those types of things. So we've really 0:17:55.640 --> 0:17:58.400 put a lot into making sure that we can do that. Um. 0:17:58.400 --> 0:18:02.240 And I'm so proud of the team and grateful quite frankly, 0:18:02.280 --> 0:18:04.480 giving everything going on in the world, that most of 0:18:04.480 --> 0:18:08.280 our people can work from home, and so it's been challenging. 0:18:08.760 --> 0:18:12.200 People have really stepped up, right. Yeah, we were certainly 0:18:12.600 --> 0:18:15.480 I think starting to to see that, I mean candidly 0:18:15.520 --> 0:18:18.879 among colleagues and friends and neighbors and everybody. I mean, 0:18:18.920 --> 0:18:20.560 you're starting to see the stress and strain, I think 0:18:20.680 --> 0:18:24.360 especially so exactly. I can see it. I can see 0:18:24.359 --> 0:18:26.359 it on the video gun right now. Oh wait, I'm 0:18:26.400 --> 0:18:30.200 looking in the mirror. Um. Sorry, Patrick, you know, speaking 0:18:30.200 --> 0:18:32.639 of physical space, I mean, I do wonder you know 0:18:32.800 --> 0:18:36.359 what it has meant to really have to shift, you know, 0:18:36.440 --> 0:18:41.440 almost exclusively or certainly primarily to an online direct to 0:18:41.520 --> 0:18:46.320 consumer channel versus retail stores. How does that change how 0:18:46.359 --> 0:18:48.280 you sell? How does it change how you spend money? 0:18:48.320 --> 0:18:50.280 How does it change how you sort of get to 0:18:50.280 --> 0:18:54.720 those customers? That's exactly the thing that we've basically you know, 0:18:54.840 --> 0:18:57.880 faced this whole quarter. And so, um, if you had 0:18:58.040 --> 0:19:00.679 asked me back in March April, if we would have 0:19:00.680 --> 0:19:02.680 been able to live at the quarter we just did, 0:19:02.720 --> 0:19:05.440 given the closures we saw across the board, I would 0:19:05.440 --> 0:19:07.800 have I would have thought that would be nearly impossible. 0:19:07.800 --> 0:19:10.199 I mean it was incredible to watch how quickly the 0:19:10.240 --> 0:19:13.679 team throughout the existing playbook and was able then to pivot. 0:19:13.720 --> 0:19:16.159 And we look, our product has been made for this period. 0:19:16.160 --> 0:19:18.600 We could bring a little bit of extra joy to 0:19:18.640 --> 0:19:20.800 people that are stuck at home. That's a good thing 0:19:20.880 --> 0:19:22.879 and that's what we do. And so we said, you 0:19:22.920 --> 0:19:25.920 know what, let's launch this campaign. We launched and at 0:19:25.960 --> 0:19:27.960 home with onners campaign. We gave people some tips and 0:19:28.000 --> 0:19:31.320 tricks on um how to use products. We reintroduced kind 0:19:31.320 --> 0:19:33.240 of move to them as well. So to Carol's point 0:19:33.280 --> 0:19:35.440 and buying that product, that products has been selling out 0:19:35.480 --> 0:19:39.960 like crazy. UM, so it's meant a lot of adapting, right, 0:19:40.080 --> 0:19:42.080 and that's meant, you know, just a lot of change, 0:19:42.119 --> 0:19:45.040 which again is harder when you're distributed. Um, it's put 0:19:45.080 --> 0:19:47.560 stress on the system in terms of you know that 0:19:47.560 --> 0:19:50.800 three year year growth. It's hard at any point to 0:19:51.320 --> 0:19:53.800 be able to support that when you're not together. Just 0:19:53.960 --> 0:19:57.639 things like additional customer service people right that need be 0:19:57.680 --> 0:20:00.760 able to take those calls, putting pressure on the distribution 0:20:00.840 --> 0:20:03.280 channel in terms of getting product out to people on time. 0:20:03.640 --> 0:20:06.160 All of the things that come with that have been 0:20:06.160 --> 0:20:08.760 a challenge that we've had to step up to UM 0:20:08.800 --> 0:20:11.640 and then I do think it's changed, that is something 0:20:11.640 --> 0:20:14.520 that will carry on from here. So I have been 0:20:15.280 --> 0:20:18.199 pleasantly surprised by the willingness of customers to purchase some 0:20:18.240 --> 0:20:20.000 of our new products. You know, our ur is eight 0:20:20.080 --> 0:20:24.560 hundred dollars um site and sound unseen right on soas 0:20:24.600 --> 0:20:27.200 dot com and so that that gives me a lot 0:20:27.200 --> 0:20:29.560 of confidence in the brand and the trust that our 0:20:29.600 --> 0:20:32.600 customers have in the brand UM and so that's been 0:20:32.640 --> 0:20:35.080 a pleasant surprise of silver lining, if you will, through 0:20:35.119 --> 0:20:38.200 all of this. And that so no CEO Patrick spends 0:20:38.359 --> 0:20:41.679 joining us. We're both very familiar with their systems and 0:20:42.119 --> 0:20:45.200 obviously it's a tough market right now for a lot 0:20:45.240 --> 0:20:48.320 of folks, even though we're all nested at home, so 0:20:48.560 --> 0:20:51.239 some uneven things going on in that business. To sit 0:20:51.320 --> 0:20:53.480 the least, Yeah, full transparency We've got a bunch of 0:20:53.480 --> 0:20:55.159 Sona's products in our homes, and I do want to 0:20:55.160 --> 0:20:57.520 point out Sona's is price target was raised by Morgan 0:20:57.600 --> 0:21:01.280 Stanley following their earnings reports, So Wall Street definitely weighing in. Alright, 0:21:01.320 --> 0:21:04.000 come up next tracking how to raise bold, courageous and 0:21:04.040 --> 0:21:06.439 resilient women. It's a subject of a book by a 0:21:06.440 --> 0:21:09.040 former U. S. Naval officer and senior advisor to the 0:21:09.080 --> 0:21:12.040 Obama White House, a topic very familiar to you and me. 0:21:12.280 --> 0:21:18.639 This is Bloomberg. This is Bloomberg Business Week with Carol 0:21:18.680 --> 0:21:22.720 Masser and Jason Kelly from Bloomberg Radio. Well, we're bringing 0:21:22.720 --> 0:21:24.919