WEBVTT - Bloomberg Businessweek Weekend - New Year's Special 0:00:01.080 --> 0:00:05.440 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business, finance and tech news as it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.919 Stinovic on Bloomberg Radio. Hi everyone, Happy New Year. Welcome 0:00:21.960 --> 0:00:25.720 too into the latest weekend edition of Bloomberg Business Week. 0:00:25.760 --> 0:00:28.280 We hope you had a great and safe celebration everyone, 0:00:28.320 --> 0:00:30.240 And as we turn the page and start fresh on 0:00:30.280 --> 0:00:33.520 the calendar, we're dedicating this holiday program to our entire 0:00:33.560 --> 0:00:37.840 Bloomberg Business Week team. We are indeed one news cycled churn, 0:00:37.920 --> 0:00:40.600 perhaps more rapidly than ever before in the magazine. Was 0:00:40.680 --> 0:00:43.080 there each and every week to capture all the key 0:00:43.159 --> 0:00:47.080 storylines in business and finance, politics, technology, economics, and so 0:00:47.200 --> 0:00:49.839 much more. Over the next two hours, we'll be reflecting 0:00:49.920 --> 0:00:52.479 on some of the very best Bloomberg News coverage. We're 0:00:52.479 --> 0:00:53.880 also going to bring you the best when it comes 0:00:53.920 --> 0:00:57.160 to travel, Auto's food, all to get you primed for 0:00:58.000 --> 0:01:00.680 two with our friends at Bloomberg Pursuit that's coming up 0:01:00.680 --> 0:01:02.920 a little bit later on. We begin though this hour 0:01:03.000 --> 0:01:05.800 with the editor of Bloomberg Business Week magazine Joel Weber 0:01:06.240 --> 0:01:08.600 until this past year got started with a bang for 0:01:08.680 --> 0:01:10.600 your team. You were all set to publish an issue, 0:01:10.680 --> 0:01:12.880 and then came the riot at the US Capital on 0:01:13.000 --> 0:01:16.120 January six. To take us back there, well, it's always 0:01:16.240 --> 0:01:19.400 an especially difficult issue because you're coming straight out of 0:01:19.440 --> 0:01:21.919 the out of the holidays, you've got a cold start, 0:01:22.080 --> 0:01:24.840 and then all of a sudden, January six happens. And 0:01:25.720 --> 0:01:30.640 we typically transmit a cover um and cover story about 0:01:30.720 --> 0:01:34.160 three pm on a Wednesday, which is more or less 0:01:34.200 --> 0:01:37.680 about when everything took a turn for the worst in Washington, 0:01:37.800 --> 0:01:41.440 d C. And at that moment, I just looked at 0:01:41.520 --> 0:01:45.080 the cover that we were about to transmit and realized 0:01:45.680 --> 0:01:49.120 that we couldn't and really let that when go into 0:01:49.160 --> 0:01:51.520 the wild, knowing that something was happening at that point, 0:01:51.600 --> 0:01:55.400 we we still didn't totally understand what. So began our 0:01:55.440 --> 0:01:59.760 own crazy little wild dance to try and figure out 0:02:00.040 --> 0:02:03.920 how to actually say something about January six. As the 0:02:04.040 --> 0:02:07.240 clock was ticking um as the printer was like, where 0:02:07.520 --> 0:02:10.679 where's your cover, where's your cover story? It was just 0:02:10.800 --> 0:02:13.280 a little bit of a magazine making feet in and 0:02:13.360 --> 0:02:16.000 of itself, and one that I'm so grateful to have 0:02:16.120 --> 0:02:20.160 a talented staff for because we managed to pull it together. Well, 0:02:20.200 --> 0:02:22.720 how did you handle something like that from a storytelling perspective, 0:02:22.720 --> 0:02:24.720 because if you think about where we are now, almost 0:02:24.760 --> 0:02:28.160 a year later, we're still learning about what happened on 0:02:28.280 --> 0:02:31.880 January six, We're learning about text messages that people that 0:02:32.000 --> 0:02:36.280 lawmakers sent. So I often think about the secret to 0:02:36.360 --> 0:02:38.480 what we do is trying to take what we know 0:02:38.600 --> 0:02:41.120 and then also tell you why it matters and what 0:02:41.200 --> 0:02:43.880 it could mean going forward, which was, I will tell 0:02:44.080 --> 0:02:46.680 tell you straight up, almost impossible at that moment um. 0:02:47.160 --> 0:02:50.679 So what we did was rearranged a few things in 0:02:50.720 --> 0:02:53.840 the magazine, put that cover story and that cover on 0:02:53.919 --> 0:02:56.000 the shelf, just put it away, stop thinking about it, 0:02:56.520 --> 0:02:59.440 and and actually just started to think about how do 0:02:59.480 --> 0:03:02.639 we mark the moment? And that's a really significant way 0:03:02.680 --> 0:03:05.639 that that I think, um, when all else fails, just 0:03:05.760 --> 0:03:08.280 say this, something's happening here, how do we mark that 0:03:08.400 --> 0:03:11.720 moment um? Because we actually the timing of the way 0:03:11.760 --> 0:03:13.919 the magazines come together. You actually have to transmit that 0:03:14.000 --> 0:03:16.720 cover before you have to transmit the stories. So that 0:03:16.840 --> 0:03:19.760 was an example. We actually did a cover. You had 0:03:19.760 --> 0:03:22.200 to put the cart before the horse exactly. And and 0:03:22.280 --> 0:03:25.040 it was called it said New Low. It was a 0:03:25.160 --> 0:03:29.839 shot um of the capitol um with the basically mid 0:03:30.120 --> 0:03:33.919 mid insurrection and Uh. Once we had that out of 0:03:33.960 --> 0:03:36.720 the way, then it was sort of attempting to account 0:03:36.800 --> 0:03:39.760 for everything that we could actually say in the magazine, UM, 0:03:39.960 --> 0:03:42.440 which we we kept the pages open as late as 0:03:42.480 --> 0:03:45.640 we possibly could. UM. I think by the time it 0:03:45.720 --> 0:03:47.600 was all done, I think we're transmitting the story at 0:03:47.600 --> 0:03:51.320 about eleven PM, which allowed us to basically uh know 0:03:51.560 --> 0:03:54.240 that the capital by that point had become secure and 0:03:54.560 --> 0:03:58.280 that in the not too distant future, uh, lawmakers were 0:03:58.280 --> 0:04:00.280 going to come back into the capital and I actually 0:04:00.560 --> 0:04:02.880 do what they had set out to do. Um. And 0:04:03.240 --> 0:04:05.560 so what we did really was just try and put 0:04:05.640 --> 0:04:07.880 together a timeline of of what we knew of what 0:04:08.080 --> 0:04:11.520 had happened at that moment in time. UM. And it 0:04:11.720 --> 0:04:13.880 was a first draft of history, which is sometimes what 0:04:14.000 --> 0:04:16.800 journalism looks like, and that's what it was. But but 0:04:16.920 --> 0:04:18.640 we had the foresight enough to know it was a 0:04:18.720 --> 0:04:22.800 new Low, uh, and we stitched together truly. Like the 0:04:22.880 --> 0:04:25.160 most remarkable part was just working at Bloomberg News. We 0:04:25.240 --> 0:04:27.760 had we had people there in the capital who were 0:04:28.160 --> 0:04:31.480 affected by this and also UM covering covering what happened 0:04:31.800 --> 0:04:34.799 outside the building. So we had a lot of material 0:04:34.880 --> 0:04:36.719 to pull on and obviously there are plenty of people 0:04:36.800 --> 0:04:39.839 coming from all over the place, UM, just just pitching 0:04:39.880 --> 0:04:42.400 in with stuff. So it became a huge team sport. 0:04:42.440 --> 0:04:44.960 We actually just used you know, the Bloomberg version of 0:04:45.560 --> 0:04:48.400 of a zoom called NEXTI, and we just were the 0:04:48.560 --> 0:04:51.440 magazine group was just huddled in an exci trying to 0:04:51.480 --> 0:04:53.919 figure out and we're all looking at layouts, UM putting 0:04:53.960 --> 0:04:56.520 it together in real time. It was really compelling. So 0:04:56.640 --> 0:04:59.480 politics and where we started, but as one went on, 0:04:59.600 --> 0:05:01.800 it became clear that the financial world would also find 0:05:01.839 --> 0:05:04.320 itself and uncharted warders as well. Let's bring in Bloomberg 0:05:04.320 --> 0:05:06.800 Business Week Markets and Finance editor Pat right near to 0:05:06.880 --> 0:05:09.080 help us put us to help with that in perspective, 0:05:09.120 --> 0:05:11.280 and I know one of the December cover stories kind 0:05:11.279 --> 0:05:14.000 of summed it up so well, investings wildest year. It 0:05:14.240 --> 0:05:16.880 was nuts. I'd even go so far to say it 0:05:17.000 --> 0:05:20.640 was investing weirdest year. UM. I've been through a few 0:05:20.800 --> 0:05:23.279 bull markets in my life, UM, and I've never seen 0:05:23.320 --> 0:05:26.240 anything like this. People reach for comparisons to the Dot 0:05:26.279 --> 0:05:30.120 com Era. That was my first professional bull market. UM. 0:05:30.400 --> 0:05:35.520 But I actually think that this was uh stranger involved UM, 0:05:36.080 --> 0:05:39.840 a wider group of people, a younger group of people, UM, 0:05:40.120 --> 0:05:42.680 different kinds of assets that I think people hadn't really 0:05:42.720 --> 0:05:45.840 had a chance to think about any before. UM. And 0:05:46.640 --> 0:05:49.800 UH we have just tried to watch it and we've 0:05:49.839 --> 0:05:52.800 seen it change. You know. This Uh, to to get 0:05:52.839 --> 0:05:55.800 into the making of this cover package was something that UM, 0:05:55.880 --> 0:05:59.720 we started to conceive of in some ways, UM all 0:05:59.760 --> 0:06:02.680 the way back in summer after the sort of the 0:06:02.760 --> 0:06:05.760 Reddit and game Stop affairs which we covered, and we 0:06:05.880 --> 0:06:07.400 were kind of thinking, like, we want to talk about 0:06:07.440 --> 0:06:09.560 how it seems like everybody we know is becoming a 0:06:09.640 --> 0:06:11.960 kind of a trader. And then you know, the meme 0:06:12.080 --> 0:06:14.760 stocks kind of went off the boil for a little bit. Um. 0:06:15.520 --> 0:06:17.120 You haven't made a lot of money on the meme 0:06:17.200 --> 0:06:20.280 stocks after that point, and we thought, well, okay, so 0:06:20.400 --> 0:06:23.960 maybe that moment was over and it wasn't. UM, you know, 0:06:24.320 --> 0:06:26.840 Mike Reagan described it, This hasn't been so much an 0:06:26.839 --> 0:06:30.160 inflating bubble as a series of waves that just keep 0:06:30.279 --> 0:06:32.520 coming and crashing on the shore, just to be followed 0:06:32.560 --> 0:06:36.640 by another. UM. And now we're really looking at crypto 0:06:36.839 --> 0:06:40.480 and not just bitcoin, in fact, not even primarily bitcoin. Well, 0:06:40.480 --> 0:06:43.080 the way you guys have covered everything throughout when it 0:06:43.160 --> 0:06:45.840 comes to markets and just our changing investment themes has 0:06:45.880 --> 0:06:48.560 been just pretty incredible. Thanks to Bloomberg Business Week Markets 0:06:48.560 --> 0:06:51.440 and Finance editor Pat right Near as well as Joe Weber. 0:06:51.440 --> 0:06:52.920 He's gonna stick around with us. We're gonna take a 0:06:52.920 --> 0:06:55.080 look coming up next, some of the areas the markets 0:06:55.120 --> 0:06:58.080 burned down by that pandemic, especially big pharma and the 0:06:58.200 --> 0:07:01.080 race to develop a COVID vaccine. You're listening to Bloomberg 0:07:01.120 --> 0:07:13.200 Business Week. This is Bloomberg. This is Bloomberg Business Week 0:07:13.360 --> 0:07:17.120 with Carol Messer and Bloomberg Quick Takes Tim Stinovik from 0:07:17.240 --> 0:07:22.280 Bloomberg Radio. Was defined by the emergence of COVID N 0:07:23.400 --> 0:07:26.600 one was dominated by headlines about vaccines. You know, pharmaceutical 0:07:26.640 --> 0:07:29.080 companies all engaging in a race to develop those life 0:07:29.240 --> 0:07:31.920 saving shots at a breakneck pace. Well, to help us 0:07:31.960 --> 0:07:34.360 understand some of the past year's biggest business themes, we 0:07:34.480 --> 0:07:37.560 welcome in Bloomberg Business Week Assistant Managing editor Jim Ellis 0:07:37.760 --> 0:07:40.080 and the editor of the magazine, Joel Weber. Who's also 0:07:40.160 --> 0:07:41.840 still with us. So, Joel, what was some of the 0:07:41.880 --> 0:07:44.280 conversations that you guys were having in the newsroom about, like, 0:07:44.480 --> 0:07:46.600 how do we, you know, cover COVID this year? I 0:07:46.600 --> 0:07:49.640 mean it really was largely about vaccines, right, and if 0:07:49.720 --> 0:07:53.200 you if you rewin the clock to late December, we 0:07:53.320 --> 0:07:57.400 actually did a good business cover story called Miracle on Ice, 0:07:57.600 --> 0:07:59.960 which was, um, you know, at that point, we're trying 0:08:00.880 --> 0:08:05.080 transmitting and transporting um, all the RNA is on dry ice, 0:08:05.160 --> 0:08:08.360 which was a feat and of itself, um, just to 0:08:08.440 --> 0:08:13.000 get the first you know, waves of Americans vaccinated, and 0:08:13.720 --> 0:08:17.760 slowly but surely we saw an amazing rollout UM and 0:08:18.360 --> 0:08:21.840 millions upon millions of Americans of course of the year, 0:08:22.400 --> 0:08:25.720 uh get vaccinated, and obviously many many more around the world, um, 0:08:26.040 --> 0:08:29.760 of all different types of the vaccines. That is an 0:08:29.800 --> 0:08:33.520 amazing accomplishment and of itself, like the science to get 0:08:33.640 --> 0:08:37.120 that vaccine made within a year, and then to have 0:08:38.040 --> 0:08:42.000 so many people around the world actually protected, um, that 0:08:42.440 --> 0:08:45.959 in of itself just huge, huge, huge feet UM. What 0:08:46.120 --> 0:08:48.760 we've also just been all over as a newsroom, I 0:08:48.800 --> 0:08:52.040 think is is just covering these companies, um and what 0:08:52.240 --> 0:08:54.559 they're doing and how well the science is going to 0:08:54.640 --> 0:08:57.360 hold up against the boosters UM. And you know, I 0:08:57.400 --> 0:09:00.439 think we've been very focused on the fives in the 0:09:01.000 --> 0:09:03.880 Madernas and the the J and j's and maybe do 0:09:03.920 --> 0:09:05.920 a lesser extent, at least here in New York, like 0:09:06.080 --> 0:09:08.199 focusing on on the ones that are international. But I 0:09:08.280 --> 0:09:11.280 think that that international part has actually been a huge 0:09:11.320 --> 0:09:15.000 part of the story. UM. Geopolitically, there's the soft power 0:09:15.320 --> 0:09:18.080 struggle with China, and China is trying to get its 0:09:18.200 --> 0:09:23.199 vaccines a lot of places. UM. The nonprofit KOVACS has 0:09:23.200 --> 0:09:26.480 actually struggled to really get a lot of vaccines to 0:09:26.760 --> 0:09:30.400 merging corners of the of the world. That remains a 0:09:30.520 --> 0:09:33.880 huge issue because you know, most recently here with the 0:09:33.920 --> 0:09:37.520 omicron like, we're going to continue to see variants UM, 0:09:37.640 --> 0:09:40.319 and they will probably come from other places, right. And 0:09:40.960 --> 0:09:44.480 the nature of of COVID is that it can morph 0:09:44.520 --> 0:09:47.880 and mutate very quickly, and as we're seeing now, this 0:09:48.040 --> 0:09:51.679 is highly transmissible, maybe less lethal, but highly transmissible UM. 0:09:52.000 --> 0:09:55.240 And you know, against it all, we've got to we've 0:09:55.240 --> 0:09:58.559 got vaccines that that seemed to work well. Jim, come 0:09:58.600 --> 0:10:00.200 on in here and talk a little bit abo out 0:10:00.679 --> 0:10:03.280 one of the stories that I remember from the past year, 0:10:03.360 --> 0:10:08.240 which was the changing view of pharmaceutical companies because I 0:10:08.280 --> 0:10:10.600 think for a lot of people are certainly politicians, they 0:10:10.640 --> 0:10:14.200 were seen as sort of boogeymen punching bags throughout many 0:10:14.280 --> 0:10:16.360 of the past years. But there's sort of this changing 0:10:16.400 --> 0:10:21.800 public perception associated with vaccine makers. Yeah. I mean one 0:10:21.840 --> 0:10:25.679 of the things that you know, uh, this definitely did 0:10:25.880 --> 0:10:28.760 was changed the views that a lot of people had 0:10:29.040 --> 0:10:33.719 of big format as, basically being that big companies that 0:10:34.200 --> 0:10:37.000 were all out to um make a lot of money 0:10:37.120 --> 0:10:41.000 off of essentially the health of other people. And I 0:10:41.160 --> 0:10:43.439 think that when we had a crisis where all of 0:10:43.520 --> 0:10:46.640 a sudden we were dependent on formative sort of come 0:10:46.760 --> 0:10:49.800 up with a solution in record time, I think it 0:10:49.920 --> 0:10:53.360 actually bolstered the view that most people have of them. 0:10:53.559 --> 0:10:56.719 I mean, it's a true, true, sort of a sort 0:10:56.760 --> 0:10:59.240 of success story here. I mean typically, you know, any 0:10:59.280 --> 0:11:03.319 kind of formacy cutical is developed over the course of years, 0:11:03.480 --> 0:11:06.160 years of you know, sometimes in years of lab work, 0:11:06.240 --> 0:11:10.119 then years of going through trials and trying to get approvals, 0:11:10.360 --> 0:11:12.439 and this was done licked the split. I mean, a 0:11:12.520 --> 0:11:14.760 lot of this work was done in the course of 0:11:14.800 --> 0:11:17.240 a year, and then we sort of uh, you know, 0:11:17.640 --> 0:11:20.920 we were able to fast forward through the normal approval 0:11:21.040 --> 0:11:23.439 process because even though people have to talk about approvals, 0:11:23.520 --> 0:11:26.200 most of these drugs were basically just authorized. They were 0:11:26.240 --> 0:11:28.360 just you know, fast tracked to get out there and 0:11:28.440 --> 0:11:31.040 get out. But that's also been one of the things 0:11:31.120 --> 0:11:34.240 that causes a challenge for them going forward, which is 0:11:34.360 --> 0:11:37.280 that a lot of anti vaxers and people who just 0:11:37.440 --> 0:11:40.120 want to complain about, you know, the restrictions that go 0:11:40.280 --> 0:11:44.280 along with um masking vaccines whatever, are saying, well, these 0:11:44.320 --> 0:11:46.040 aren't real. I mean, look at you know, the fast 0:11:46.080 --> 0:11:48.400 forwarding that happened here, look at the fact that they're 0:11:48.440 --> 0:11:51.080 authorized but not approved and whatever. But in the end, 0:11:51.520 --> 0:11:54.440 there was very very good science. And this is science 0:11:54.440 --> 0:11:57.560 that has been actually reviewed probably more than almost any 0:11:57.640 --> 0:12:00.760 drug prior to this, and certainly it's been used by 0:12:00.920 --> 0:12:03.800 you know, most of the world now with very good results. 0:12:03.880 --> 0:12:06.600 And so this is quite an amazement for an industry 0:12:06.679 --> 0:12:08.679 that used to take it on the chint as being 0:12:08.720 --> 0:12:12.040 sort of greedy and non public based. Yeah, I remember 0:12:12.040 --> 0:12:14.600 a great cover story when it comes to vaccine passports. 0:12:14.760 --> 0:12:16.280 Um I want to shift gears a little bit, no 0:12:16.400 --> 0:12:18.680 pun intended, but you guys did a lot of coverage 0:12:19.200 --> 0:12:22.160 about what's going on in the auto sector electric vehicles 0:12:22.480 --> 0:12:25.920 in particular and Tesla, but also the other players. Jim, 0:12:26.000 --> 0:12:28.200 how did you think about the strategy about that because 0:12:28.200 --> 0:12:31.040 there was so much going on. I mean, this was 0:12:31.240 --> 0:12:34.959 definitely the year when UM, I guess a lot of 0:12:35.080 --> 0:12:38.480 investors as well as regular people suddenly started to take 0:12:38.640 --> 0:12:41.920 the e V business seriously. You've certainly seen it in 0:12:42.000 --> 0:12:46.920 the UH market values that have gone on to UM. 0:12:47.160 --> 0:12:49.880 You know a lot of new EV startups that you know, 0:12:50.000 --> 0:12:52.240 it's sort of hard to imagine it. Rivan, which is 0:12:52.360 --> 0:12:57.640 a truck maker that's a competitor. I guess you could see. 0:12:57.679 --> 0:13:00.240 I think it's a competitor a long term to test flaw, 0:13:00.640 --> 0:13:02.920 you know, has a market value is bigger than General Motors. 0:13:03.080 --> 0:13:05.760 I mean, this is a company that even this year 0:13:06.360 --> 0:13:10.960 UM only planned to produce twelve hundred units that's it trucks, 0:13:11.160 --> 0:13:12.760 and they're not even gonna make that. I mean they 0:13:12.760 --> 0:13:15.000 announced that they this today, but they're not going to 0:13:15.120 --> 0:13:17.800 make that yet. They've got these you know, sort of 0:13:18.040 --> 0:13:23.000 multi multibillion dollar valuations because investors are convinced that you know, 0:13:23.200 --> 0:13:25.800 this is there's a change of foot here that you know, 0:13:25.880 --> 0:13:29.480 the internal combustion engine is going to go away, and 0:13:29.600 --> 0:13:32.360 everybody wants to be in the ground floor hoping that 0:13:32.400 --> 0:13:35.400 they're going to get the next Tesla. Now, I would 0:13:35.400 --> 0:13:39.360 probably say that's very unlikely, simply because Tesla came into 0:13:39.440 --> 0:13:43.040 a market that was not there, and Tesla got a 0:13:43.160 --> 0:13:46.240 lot of attention and people jumped in because they figured 0:13:46.320 --> 0:13:50.480 it was the only way. Nowadays, um, the traditional car 0:13:50.600 --> 0:13:55.080 companies are jumping in very aggressively. Look at people like UM, 0:13:55.559 --> 0:13:58.720 Look at people like Volkswagen with it's I D line, 0:13:58.720 --> 0:14:01.640 which is not only success well, um, it's becoming successful 0:14:01.640 --> 0:14:05.240 in China, which had been a pretty much a Tesla market, 0:14:05.640 --> 0:14:09.000 and it's becoming successful in Europe. Certainly not a big 0:14:09.160 --> 0:14:12.040 big deal here, but there's a lot of changes that 0:14:12.080 --> 0:14:13.640 are going to happen in the next up of years, 0:14:13.679 --> 0:14:17.280 as truck makers get into evs and truck makers are 0:14:17.400 --> 0:14:19.240 it's gonna be a really big deal here in the US. 0:14:19.360 --> 0:14:23.120 Because the US companies make their money making trucks and SUVs. 0:14:23.360 --> 0:14:26.360 They do not make money making cars, and so therefore 0:14:26.440 --> 0:14:29.000 they've been willing to let Tesla do its thing. But 0:14:29.200 --> 0:14:31.960 now that Tesla wants to get into trucks and riving 0:14:32.040 --> 0:14:34.520 in and all these other companies are popping up, you know, 0:14:34.840 --> 0:14:37.920 all of a sudden, we're gonna see the real competition here. 0:14:37.960 --> 0:14:39.760 We're gonna talk with Hannah Elliot little bit later on 0:14:39.840 --> 0:14:43.080 to certainly the luxury space. You're seeing an explosion as well. Alright, guys, 0:14:43.120 --> 0:14:44.880 we get a round. Thank you so much, Bloomberg Business 0:14:44.880 --> 0:14:47.640 Week Assistant Managing editor Jim Ellis and the editor of 0:14:47.680 --> 0:14:50.480 Business Week Magazine, of course, Joe Weber. Thanks you guys 0:14:50.520 --> 0:14:52.440 for joining us. Happy New Year to both of you, 0:14:52.680 --> 0:14:55.040 and we're looking forward to uh, talking a lot more 0:14:55.120 --> 0:14:58.400 in two. We'll still ahead. On this special holiday weekend 0:14:58.480 --> 0:15:01.040 edition of Bloomberg Business Week, we dive deeper into the 0:15:01.160 --> 0:15:04.040 biggest economics stories that are sure to follow us into 0:15:04.080 --> 0:15:06.120 the new year. You know them well by now, the 0:15:06.200 --> 0:15:11.000 eye word, inflation, supply chains, also the Great Resignation. Yeah, 0:15:11.280 --> 0:15:16.240 all that and more ahead. This is Bloomberg broadcasting from 0:15:16.280 --> 0:15:20.000 the financial capital of the world, Bloomberg eleven Frio in 0:15:20.120 --> 0:15:24.600 New York to Washington, d C. Bloomberg to Boston, Bloomberg 0:15:24.680 --> 0:15:27.840 one O six one to San Francisco, Bloomberg nine sixty 0:15:27.960 --> 0:15:31.160 to the country Sirius XM Chado one nineteen and around 0:15:31.200 --> 0:15:34.760 the globe, the Bloomberg Business app and Bloomberg Radio dot Com. 0:15:35.360 --> 0:15:39.640 This is Bloomberg Business Week as the US and really 0:15:39.680 --> 0:15:41.960 the world of transition from the depths of the pandemic 0:15:42.040 --> 0:15:45.000 to an economic recovery. Over the past twelve months, three 0:15:45.280 --> 0:15:47.560 themes have emerged that appear to be sticking with us 0:15:47.840 --> 0:15:51.800 for the foreseeable future. Rising prices, supply chain congestion, and 0:15:51.840 --> 0:15:54.360 a labor forcet has left a record number of jobs 0:15:54.440 --> 0:15:57.960 on the table. Bloomberg Business Week Economics editor Christina Lindbladd 0:15:58.040 --> 0:16:00.720 is here to help put the past year in some context. 0:16:01.160 --> 0:16:04.120 So back in November, Christina the magazine did a takeover section. 0:16:04.600 --> 0:16:07.480 It really centered around a surge in prices not seen 0:16:07.640 --> 0:16:10.720 in America in decades. How should we think about this 0:16:10.920 --> 0:16:13.080 as the Federal Reserve gets ready to end its asset 0:16:13.120 --> 0:16:17.200 purchases and look likely hike interest rates come next year. 0:16:17.440 --> 0:16:21.920 This year, well, the good news is almost everyone expects 0:16:22.040 --> 0:16:25.800 prices to moderate next year. The question is how fast. 0:16:26.040 --> 0:16:30.320 I mean. Powell formally retired the word transitory in November, 0:16:30.400 --> 0:16:33.120 which I think was a relief to everybody. There are 0:16:33.200 --> 0:16:35.800 still questions though about kind of the balance of what 0:16:36.080 --> 0:16:40.200 is like this, you know, supply chain factors and demand shock, 0:16:40.760 --> 0:16:44.040 and maybe once some of the supply chain stuff starts, 0:16:44.200 --> 0:16:47.560 you know, kind of receding, we'll get a better sense 0:16:47.840 --> 0:16:51.160 of sort of how much the consumer is driving this. 0:16:51.880 --> 0:16:54.200 And one of the my favorite stories that we did 0:16:54.280 --> 0:16:57.440 this year was the story about this training that they 0:16:57.560 --> 0:17:00.280 do at m I T called the Beer Game, which 0:17:00.400 --> 0:17:03.000 talked about this sort of bullwhip effect that you haven't 0:17:03.040 --> 0:17:07.760 supply chains when people start panic buying. And now, for example, 0:17:07.880 --> 0:17:10.280 in recent weeks, people have started saying there might be 0:17:10.359 --> 0:17:14.280 a bull whip effect in semiconductor supply chains because you know, 0:17:14.400 --> 0:17:17.040 companies maybe putting in two or three orders because they 0:17:17.040 --> 0:17:19.120 don't know which ones are actually going to come through. 0:17:20.280 --> 0:17:23.920 I feel like still there's like dust settling, and you know, 0:17:24.040 --> 0:17:27.080 like you don't have total clarity on what's happening. But 0:17:27.520 --> 0:17:31.720 clearly the FED in its most recent policy meeting, did 0:17:31.800 --> 0:17:34.920 a very clear pivot and in saying that they're just 0:17:35.000 --> 0:17:37.800 going to speed up the taper, they're basically they're freeing 0:17:37.840 --> 0:17:40.600 the runway to be able to start to lift off rates. 0:17:40.640 --> 0:17:43.320 I always think though about your coverage and your team's coverage. 0:17:43.320 --> 0:17:45.000 It's you know, and Tim and I talked about all 0:17:45.040 --> 0:17:47.399 the time, like inflation, it's a global problems and supply 0:17:47.520 --> 0:17:50.680 chain disruptions are a global situation. You guys, you know, 0:17:50.800 --> 0:17:52.960 had to be obviously focusing. We talked a lot about 0:17:52.960 --> 0:17:54.240 the U S and what's going on, but it really 0:17:54.320 --> 0:17:57.240 is a global, you know, situation with global central bankers 0:17:57.280 --> 0:17:59.760 having to deal with it, right, and some countries are 0:17:59.840 --> 0:18:02.760 very much ahead of this in the US and tightening 0:18:03.240 --> 0:18:06.679 many in Latin America already have started started much earlier 0:18:06.760 --> 0:18:10.320 in the year trying to get a group on this. Politically, 0:18:10.320 --> 0:18:11.920 you know, we think about the political coverage of this, 0:18:12.280 --> 0:18:15.159 right and the idea that that politics and in this 0:18:15.320 --> 0:18:18.680 case the economy is so intertwined. Josh Green had a 0:18:18.720 --> 0:18:21.800 story earlier this year that talked about the idea of 0:18:21.880 --> 0:18:24.680 inflation being if even if it isn't President Biden's fault 0:18:24.720 --> 0:18:26.920 and look around the world that central banks around the 0:18:26.960 --> 0:18:29.560 world and Europe are dealing with this, He's still gonna 0:18:29.600 --> 0:18:33.119 get blamed for it politically, he is. It's going to 0:18:33.200 --> 0:18:35.919 be very tough to outrun that in a year when 0:18:35.960 --> 0:18:38.560 we're gonna have mid terms, right, Yeah, Um, I mean 0:18:38.640 --> 0:18:42.240 they're talking a lot. I mean, they're responding. They're out 0:18:42.280 --> 0:18:45.040 there talking about how you know, these task force for 0:18:45.160 --> 0:18:48.600 shipping for example, what you know they're they're they're shouting 0:18:48.640 --> 0:18:51.600 from the rooftops whenever they see an improvement. But it 0:18:51.960 --> 0:18:54.800 hasn't you know, some of the measures they are taking, 0:18:54.880 --> 0:18:58.680 for example, their efforts to get more domestic capacity to 0:18:58.840 --> 0:19:03.520 build semi conduct those are gonna take years to yield fruit. Um. 0:19:03.920 --> 0:19:07.359 So yeah, I mean, I think, but you know, let's 0:19:07.400 --> 0:19:11.040 see if prices are raging at this level as we 0:19:11.200 --> 0:19:14.960 get to November. You know, the thing about the inflation story, 0:19:15.160 --> 0:19:19.400 it has obscured some, you know, some of the good 0:19:19.520 --> 0:19:22.760 news story about the economy. I mean, if you compare 0:19:22.880 --> 0:19:25.800 this recovery to the last one, this is amazing. I Mean, 0:19:26.359 --> 0:19:29.400 at the FED policy meeting, they basically said we could 0:19:29.440 --> 0:19:33.480 get to full employment like sometime next year. You know. 0:19:34.080 --> 0:19:38.800 In the last recovery, twenty fifteen was when we started 0:19:38.880 --> 0:19:41.600 lifting off rates. You know, that was when the FED 0:19:41.680 --> 0:19:45.040 decided we had gotten back to full employment. Yeah. Hey, listen, 0:19:45.080 --> 0:19:47.120 one of the things we want to just talk about 0:19:47.160 --> 0:19:50.440 it is you oversaw a special New Economy issue the 0:19:50.520 --> 0:19:53.800 magazine in the fall a bunch of folks, you know, 0:19:54.119 --> 0:19:57.520 providing you and all of us really with some startling 0:19:57.640 --> 0:20:00.600 numbers from the youngest members of the global workforce. We're 0:20:00.680 --> 0:20:02.800 not just having labor problems in the United States. It's 0:20:02.800 --> 0:20:06.560 happening everywhere. Yeah, I think there's a segment, especially we 0:20:07.440 --> 0:20:10.880 we put a finger on on sort of a demographic effect, 0:20:11.040 --> 0:20:14.520 you know, with the young people which had been overrepresented 0:20:14.560 --> 0:20:17.159 in the sectors that got slammed by the lockdowns and 0:20:17.480 --> 0:20:21.040 the pandemic in general being um, you know, they were 0:20:21.119 --> 0:20:24.119 just thrown off course. Really, you know, people who were 0:20:24.240 --> 0:20:27.200 starting their careers or were a sort of in you know, 0:20:27.600 --> 0:20:29.920 had accumulated a certain number of years on a job 0:20:30.000 --> 0:20:33.280 and thought they were going somewhere and just completely thrown 0:20:33.320 --> 0:20:35.120 off track. I have a feeling, well, we're talking about 0:20:35.119 --> 0:20:37.639 the great resignation inflational lot and supply chain. Still, what 0:20:37.680 --> 0:20:39.960 are they going to call it? I don't know. I'm 0:20:40.000 --> 0:20:43.600 ready to have some new new names for new phenomenon 0:20:43.800 --> 0:20:46.920 about no more pandemic, that would be nice. Fingers crossed 0:20:46.960 --> 0:20:49.080 wants to know what people slip up and say, like now, 0:20:49.320 --> 0:20:51.000 you know, now in the end of the pandemic, and 0:20:51.040 --> 0:20:57.000 you're like, what yeah, exactly. Our big thanks to Bloomberg 0:20:57.040 --> 0:20:59.840 business Week Economics editor Christina Lynn Blad for joining us. 0:21:00.040 --> 0:21:03.399 As always, the major macroeconomic issues will paying close attention 0:21:03.440 --> 0:21:05.359 to in the coming weeks and in the coming months, 0:21:05.760 --> 0:21:08.320 as we always do on Bloomberg. You're listening to Bloomberg 0:21:08.359 --> 0:21:11.560 Business Week, our first broadcast of two Up. Next, we're 0:21:11.600 --> 0:21:14.320 gonna look at some of the favorite feature stories from 0:21:14.359 --> 0:21:17.439 the year that we're in the magazine. We are listening 0:21:17.640 --> 0:21:28.000 to Bloomy. You're listening to Bloomberg Business Week with Carol 0:21:28.040 --> 0:21:32.240 Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. 0:21:33.720 --> 0:21:35.840