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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is Wall Street Week. I'm David Weston, bringing you

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Speaker 2: stories of capitalism. Last summer, we took you to Jackson Hole,

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Speaker 2: the wealthiest place in the country. Now we head east

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Speaker 2: to Arkansas and Michigan to see what drives the most

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Speaker 2: charitable counties in the US. President Trump came to office

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Speaker 2: promoting a swing away from green energy, but given the

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Speaker 2: exploding energy demand from those AI data centers, has all

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Speaker 2: of the above won what was a battle between fossil

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Speaker 2: fuels and renewables. As the Formula One season draws to

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Speaker 2: a close, we spend time with the man who has

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Speaker 2: already won. Zach Brown brings us the remarkable story of

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Speaker 2: his personal journey from rebellious high schooler in California to

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Speaker 2: the pinnacle of auto racing as head of McLaren Racing.

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Speaker 2: But we start with the big visit this week of

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Speaker 2: Crown Prince Mohammed bin salmana the Kingdom of Saudi Arabia

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Speaker 2: to the White House, a symbol of a potential shift

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Speaker 2: for investors from looking to the kingdom as a source

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Speaker 2: of capital to a destination for Western investment. Deborah Lair

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Speaker 2: of Baslina has been working on the transition, so Devora.

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Speaker 2: The Crown Prince of Saudi Arabia, Mohammed bin Selman, came

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Speaker 2: to Washing this week. As far as you know, what

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Speaker 2: was his agenda.

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Speaker 3: Well, just the arrival and the welcoming ceremony already has

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Speaker 3: been a great success for the Crown Prince. To be

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Speaker 3: welcomed in an unprecedented way to the White House with

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Speaker 3: this military band, military on horseback escorting him into the

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Speaker 3: White House and the flyover the President personally walking him

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Speaker 3: through already shows both the respect that the President has

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Speaker 3: for him and the partnership that the United States is

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Speaker 3: demonstrating with the Kingdom. Under Vision twenty thirty. The Crown

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Speaker 3: Prince has put a priority on diversifying the economy. This year,

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Speaker 3: for the first time ever, fifty five percent of GDP

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Speaker 3: actually comes from the non oil sector. So as they

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Speaker 3: look to attract data centers, for example, they just don't

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Speaker 3: want to be host to them. They want to build

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Speaker 3: out a whole infrastructure around data centers, to be an

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Speaker 3: electricity and cheap energy supplier, to building out the whole

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Speaker 3: AI network, to attracting AI networks, to being the world's

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Speaker 3: leader in eGames. One of the benefits that Saudi Arabia

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Speaker 3: has is obviously it's one of the largest countries in

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Speaker 3: the Middle East, and so they can provide space for

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Speaker 3: manufacturing data centers to provide that technology. There's low cost

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Speaker 3: energy for building up the AI infrastructure, so they've been

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Speaker 3: in discussions to build out their own AI infrastructure. They

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Speaker 3: have their own domestic champions that they're building out, like Humane,

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Speaker 3: but also they're looking to be the eest sports and

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Speaker 3: e gaming capital of the world, and so they've spent

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Speaker 3: a lot building out that infrastructure, in part because they

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Speaker 3: have such a young population, but also it's an opportunity

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Speaker 3: for them to show their own technological capabilities.

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Speaker 2: CE is a wealthy country at the same time, maybe

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Speaker 2: not quite as wealthy as it was before because the

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Speaker 2: price of oil is somewhat suppressed. That's where it gets

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Speaker 2: a lot of its revenue. Form doesn't have to cut

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Speaker 2: back at all on its investment ambitions given where its

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Speaker 2: fiscal situation is.

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Speaker 3: Well, that's an excellent point, and clearly their revenues are

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Speaker 3: still highly dependent on the price of oil, and we

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Speaker 3: have seen it cut back in recent years on some

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Speaker 3: of the mega projects. So we've seen that in the

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Speaker 3: case of NEOM, where they've cut back on the grand

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Speaker 3: ambitions and slim down the project, but also then focused

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Speaker 3: in on other things like the Saudi Expo, where they

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Speaker 3: are putting a lot of money in capital into that project.

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Speaker 3: I think they're also being smarter about how they're spending

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Speaker 3: their money. Originally, they brought in a lot of outside

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Speaker 3: consultants and spent millions and millions of dollars on plans

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Speaker 3: and strategies and ideas of how to build or how

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Speaker 3: to make these megaprojects successful. They're not so dependent on

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Speaker 3: those outside consultants anymore. We've seen really a move to

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Speaker 3: much more specialty insights that they're seeking from outside experts

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Speaker 3: and taking a lot on themselves.

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Speaker 2: The conference, as you say, set out a very ambitious

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Speaker 2: agenda for twenty thirty. Do they have enough of a

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Speaker 2: track record yet to know whether they're on track for

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Speaker 2: where they need to get to?

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Speaker 3: Some vision twenty thirty was a very ambitious all of

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Speaker 3: nation plan, one of the most ambitious transformations in the world,

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Speaker 3: and it was a very aggressive timeline. When we look

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Speaker 3: at some of the indicators, for example attracting foreign investment,

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Speaker 3: what they've had to do is transform their regulatory structure

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Speaker 3: that even though it is moving forward, they've been able

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Speaker 3: to streamline a lot of the regulations. They've opened up

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Speaker 3: sectors to one hundred percent ownership by foreign firms.

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Speaker 2: It's not one sided. Western investors are responding to the

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Speaker 2: friendlier tone and are at least dipping their toes into

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Speaker 2: the kingdom. In the past year, tech companies like Tesla

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Speaker 2: and Scale Ai have moved operations and offices there. Stephen

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Speaker 2: Cook of the Council on Foreign Relations says Saudi Arabia

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Speaker 2: is opening up with some limits.

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Speaker 4: Saudi Arabia is now open for business. Of course, there

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Speaker 4: are restrictions. This is Saudi Arabia after all. But the

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Speaker 4: Saudis are interested in bringing the world to Saudi Arabia.

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Speaker 4: They look at its location. They see it as an

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Speaker 4: important center for culture, sports, tourism, technology and logistics. I

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Speaker 4: think the Saudis are kind of opening the door to

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Speaker 4: all of these companies who have expressed a tremendous amount

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Speaker 4: of interest in coming to Saudi Arabia. But there is

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Speaker 4: issues related to kind of from what I understand, related

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Speaker 4: to what the Treasury Department and what the Commerce Department

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Speaker 4: will allow a company of like Google or Apple to

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Speaker 4: do in a place like Saudi Arabia.

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Speaker 2: What about countries other the United States as possible investors.

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Speaker 2: You're seeing, for example from Europe.

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Speaker 4: Yeah, you're seeing general interest in the quote unquote new

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Speaker 4: Saudi Arabia from Prince Mohammad bin Salman. His mantra has

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Speaker 4: been to make Saudi Arabia a normal country. Now, he

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Speaker 4: is not a democrat, he's not a liberal. This is

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Speaker 4: all top down reform. But I think what he sees

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Speaker 4: is most Saudis are eighteen to fifty years old, and

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Speaker 4: if you're going to make your country prosperous, and you're

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Speaker 4: going to want to have that cohort staying and making

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Speaker 4: their lives there. And so he's been inviting investment from

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Speaker 4: all over the world into the kingdom so that people

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Speaker 4: can work and live and enjoy their lives like they

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Speaker 4: would if they were in the United States or Europe.

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Speaker 2: One of the areas of potential investment is real estate,

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Speaker 2: commercial and residential. What is the level of investment in

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Speaker 2: real estate right now going on in Jedda.

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Speaker 4: Well, I mean, the only way to really answer this,

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Speaker 4: David is to say that the most off cited bird

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Speaker 4: in Saudi Arabia, especially in those two cities, is the

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Speaker 4: construction crane. I mean, I don't think there are enough

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Speaker 4: construction cranes in Saudi Arabia to satisfy all the building

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Speaker 4: that is going on. They've had to bring them in

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Speaker 4: from other places.

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Speaker 2: In terms of real estate, who's doing the investing in

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Speaker 2: all this construction with all these cranes you talk about,

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Speaker 2: where's that money coming from?

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Speaker 4: Well, a lot of this is driven by the government,

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Speaker 4: but you know, they've encouraged private firms to engage in

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Speaker 4: the development of cities and so on and so forth.

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Speaker 4: So there are authorities that the government has established that

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Speaker 4: have partnered with private firms in terms of the development

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Speaker 4: in Jinda of the old city and the development of

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Speaker 4: hotels there and tourist attractions there. But a lot of

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Speaker 4: this is top down driven by the government.

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Speaker 2: But there is private money coming out. We've heard about

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Speaker 2: Trump developments both Jida and read. Adam Newman has a

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Speaker 2: flow project in Riad as well. That's private money going in.

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Speaker 2: And do they partner with Saudi How does that work?

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Speaker 5: Well?

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Speaker 4: Yeah, so there has been a recent change in how

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Speaker 4: foreigners can invest in real estate. It's in certain areas,

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Speaker 4: and it has to be in partnership with a Saudi entity.

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Speaker 4: But it is less restrictive than it was where previously

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Speaker 4: it was much much harder for foreigners to invest in

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Speaker 4: real estate in Saudi Arabia.

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Speaker 2: Right now, AI is all the rage right in the

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Speaker 2: United States and elsewhere. There's a lot of concerned about

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Speaker 2: maybe a bubble over investing in AI. Is there a

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Speaker 2: danger of overinvesting in, for example, real estate in Saudi Arabia?

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Speaker 4: Absolutely, I mean I think that that's certainly the case. Again,

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Speaker 4: there is a build it and they will come aspect

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Speaker 4: to what they're doing. The Saudis, when you press them

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Speaker 4: on this, will say that you know, they've done the

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Speaker 4: hard work and know that there's demand for all of this.

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Speaker 4: But if you just look at the scale of the

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Speaker 4: projects that they're doing, these they're not even called mega projects,

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Speaker 4: they're giga projects. They're enormous, brillion dollar bet on a country.

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Speaker 4: You have to wonder whether the demand and supply will

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Speaker 4: come together on this. And again we've seen this before

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Speaker 4: where the Saudis have you know, there had this grand

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Speaker 4: vision for new cities and and they've never come, they've

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Speaker 4: never come to fruition look neo, which is something that

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Speaker 4: the Crown Princess talked a lot about it in many

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Speaker 4: ways as his baby. They've had to scale that back

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Speaker 4: over and over and over again. Part of it is

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Speaker 4: engineering and the idea that what he envisions it is

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Speaker 4: extremely difficult to do. But at the other end of

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Speaker 4: it is just putting a city down in a place

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Speaker 4: where one didn't exist before. Not only has engineering challenges,

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Speaker 4: but you have to wonder if there wasn't a city

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Speaker 4: there before, why would there need to be a city

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Speaker 4: there now. So it's those kinds of flights of fancy

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Speaker 4: that I think people need to be worried about when

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Speaker 4: it comes to Saudi.

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Speaker 2: Arabia coming up. We hear a lot about economic inequality

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Speaker 2: in the United States, but not nearly as much about

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Speaker 2: how much wealth and time is given away age here

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Speaker 2: as we head into this Thanksgiving holiday in the US,

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Speaker 2: we'll go to the two most charitable places in the nation,

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Speaker 2: Northwest Arkansas and Western Michigan. This is a story about

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Speaker 2: giving back, and in particular, the single place in America

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Speaker 2: that does it better than anyone else. Earlier this year,

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Speaker 2: we brought you the story of the wealthiest spot in

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Speaker 2: the country, the residents of Teeton County, Wyoming, have an

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Speaker 2: average annual income of around a half a million dollars.

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Speaker 2: They also donate more per person than anyone else. But

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Speaker 2: then it's easy to give more when you have more.

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Speaker 2: So who gives the most as a proportion of how

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Speaker 2: much they make? That's another story altogether. It's a chilly

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Speaker 2: autumn morning in western Michigan and today, like every Sunday,

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Speaker 2: people here are heading to church.

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Speaker 5: It's a small town.

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Speaker 3: I mean, we have what two lights, maybe you know,

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Speaker 3: not very big, but I do know that they're very giving.

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Speaker 6: We genuinely do care about the people that are right

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Speaker 6: next door to us. You know your neighbors, you know

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Speaker 6: the people that your kids go to school with.

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Speaker 1: You see them on a daily basis.

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Speaker 2: Of all the cities, towns, and communities across the United States,

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Speaker 2: building stands apart when it comes to lending a helping hand.

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Speaker 2: But to understand why, we have to think about the

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Speaker 2: nature of.

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Speaker 6: Giving GENEROSSI is more than just money. It's being a family,

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Speaker 6: it's being part.

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Speaker 7: Of the community.

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Speaker 2: Community is something Pastor Ryan Snyder and his congregation think

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Speaker 2: about a lot, even more so when we told them

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Speaker 2: what we had found after years of research, Harvard economist

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Speaker 2: Rod Shetty and his team joined the US Census Bureau

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Speaker 2: to create the Opportunity Atlas, a project analyzing billions of

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Speaker 2: data points to learn about the economic fabric of America.

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Speaker 2: Among the factors they studied was volunteerism, in this case,

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Speaker 2: the share of people in a given place who are

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Speaker 2: members of a volunteer group. And there is one town,

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Speaker 2: one single zip code that stands above the rest. You

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Speaker 2: guessed it.

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Speaker 8: We're just y in town.

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Speaker 1: I mean, we don't Belding.

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Speaker 9: Are you kidding here?

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Speaker 1: We have nothing famous.

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Speaker 6: I know that Belding has its falls, just like everybody

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Speaker 6: else does. But one thing I can say about building

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Speaker 6: is that building is willing to support when support is necessary.

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Speaker 10: Anytime that there's a need, everybody will always step up,

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Speaker 10: no doubt.

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Speaker 2: According to the Opportunity Atlas, about seven percent of people

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Speaker 2: nationwide are part of a volunteering group. In building zip

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Speaker 2: code four eight eighth nine, that figure is fifty six percent.

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Speaker 6: I was born and raised in Belding. I lived here

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Speaker 6: for a long time and I'm still in this community.

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Speaker 6: Community isn't just you being in your house and you

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Speaker 6: happen to live next to others. Community is that you're

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Speaker 6: willing to help others, regardless of your beliefs, regardless of

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Speaker 6: your political stances, regardless of what they look like.

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Speaker 8: Generosity is an individual act, but it also is an

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Speaker 8: act that responds to the social and environ.

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Speaker 2: Kevin Fitzpatrick is the director of the Community and Family

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Speaker 2: Institute at the University of Arkansas.

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Speaker 8: Whether it's an individual characteristic or something that our family

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Speaker 8: always did, or now it's something that our church does,

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Speaker 8: I mean people are brought to generosity through a lot

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Speaker 8: of mechanisms.

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Speaker 2: Although building might have an especially strong community, it's just

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Speaker 2: one remarkable place in a particularly remarkable state. Take a

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Speaker 2: look at membership and volunteer groups across the country as

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Speaker 2: a whole, and the competition isn't close. Michigan is in

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Speaker 2: a league of its own. We asked Michigan native and

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Speaker 2: former Blackstone vice chairman Tony James why that might be.

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Speaker 5: I was born in Lyondott As you point out, not

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Speaker 5: many people actually know that. No one's heard of it.

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Speaker 5: But now my real connection is I have a summer

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Speaker 5: home in northern Michigan, and people say, do you have

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Speaker 5: a house in near Hampton's You have a place in Nantucket.

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Speaker 5: Now I go to northern Michigan. I love northern Michigan.

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Speaker 5: It's absolutely beautiful. There aren't many New Yorkers there.

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Speaker 2: If I told you that of all the states in

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Speaker 2: the Michigan ranked at that top in terms of volunteering,

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Speaker 2: would you be surprised.

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Speaker 5: I was very surprised, honestly, having said that, that whole

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Speaker 5: Midwestern Bible Belt area was pretty much the same green color.

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Speaker 5: So it got me thinking about why. And I think

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Speaker 5: what distinguishes that part of the country is small towns,

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Speaker 5: not really rural like the American West, where there's lots

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Speaker 5: of empty space, and certainly not urban, but small towns

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Speaker 5: and towns that have been struggling, I guess economically for

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Speaker 5: the last twenty five or fifty years, shrinking manufacturing base

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Speaker 5: and so on. So I think those towns have certain

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Speaker 5: common factors like strong church, strong social institutions, the four

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Speaker 5: H Club, the Boy Scouts, the Elks Club, the VFW,

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Speaker 5: a lot of engagement with kids' schools, and so I

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Speaker 5: think the communities know we each other.

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Speaker 2: James retired from Blackstone in twenty twenty two after two

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Speaker 2: decades at the firm. His deep commitment to philanthropy came

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Speaker 2: not so much from his time in Michigan as from

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Speaker 2: his experience in New York and on Wall Street.

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Speaker 5: At some point, I realized that the people in finance

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Speaker 5: that I most admired weren't just successful in their careers

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Speaker 5: and ran big companies. They added community service to it.

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Speaker 5: And it got to the point where the leaders in

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Speaker 5: our industry, if they had the capability of making a

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Speaker 5: difference and the financial resources to make a difference and

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Speaker 5: weren't doing anything. I started to lose respect for him.

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Speaker 5: So I decided that there's a message there and that

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Speaker 5: I should start leaning into getting involved with philanthropy. And

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Speaker 5: I think people are inherently generous. They do give to

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Speaker 5: the church or to the United Way or something, but

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Speaker 5: until you start leaning in, you don't realize how much

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Speaker 5: impact you can have and how many opportunities there are

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Speaker 5: to make a difference.

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Speaker 2: Americans spent about five billion hours volunteering in twenty twenty three,

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Speaker 2: valued at around one hundred and sixty seven billion dollars.

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Speaker 2: But in the richest country in the world, it comes

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Speaker 2: as no surprise that much of our giving is financial.

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Speaker 2: The US donated almost six hundred billion dollars last year,

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Speaker 2: and New York has the highest total contributions. Titan County,

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Speaker 2: home of Jackson Hole, generally gives away the highest amount

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Speaker 2: per capita, but the people who donate the most as

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Speaker 2: a proportion of their income live about halfway in between

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Speaker 2: New York and Wyoming, in a place that happens to

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Speaker 2: be Professor Fitzpatrick's backyard.

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Speaker 8: If you look at philanthropy across northwest Arkansas, we would

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Speaker 8: see that over the last several decades, as the large

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Speaker 8: philanthropic organizations have responded, so too has the individual.

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Speaker 2: Here in Benton County, Arkansas, the average annual charitable deduction

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Speaker 2: is about fifteen percent of residence income. That's well above

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Speaker 2: the figure for Teetan County and several times higher than

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Speaker 2: the national average. So what makes this area so unique?

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Speaker 2: We asked a local philanthropist.

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Speaker 11: I moved to northwest Arkansas in two thousand and two

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Speaker 11: with a little bit of a life transition and started

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Speaker 11: working for a small family business for an hourly rate

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Speaker 11: and worked my way up through that company and ultimately

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Speaker 11: was able to buy it from the founder.

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Speaker 2: Aaron Marshall ran the firm for eight years before selling it,

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Speaker 2: starting his own nonprofit and building housing for hundreds of

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Speaker 2: homeless residents on a site where they had been living intents.

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Speaker 2: He called it New Beginnings, and although Marshall stepped away

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Speaker 2: from his business to spend more time and money on

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Speaker 2: those around him, he still says the businesses of Northwest

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Speaker 2: Arkansas could be the secret to the area's generosity. Three

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Speaker 2: businesses in particular.

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Speaker 11: There's something special about Northwest Arkansas. It's a unique place

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Speaker 11: where the home of Walmart Tyson, JB.

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Speaker 7: Hunt.

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Speaker 11: You know, those families with names that almost anyone would

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Speaker 11: recognize have not only set a tone by their business

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Speaker 11: success and entrepreneurship, but they also set a tone for

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Speaker 11: charitable giving and building the community and making it better

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Speaker 11: over the last thirty years.

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Speaker 2: For Marshall, giving goes a long way back. He donated

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Speaker 2: two dollars of the very first twenty he ever earned.

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Speaker 2: But he also thinks it helps to see firsthand the

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Speaker 2: charity of others and the way that business success and

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Speaker 2: philanthropy can go hand in hand.

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Speaker 11: I would say that's inspired a whole nother tier of

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Speaker 11: people like me who were running small businesses in support

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Speaker 11: of some of those larger companies or the other companies

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Speaker 11: from around the country. That support them, And I think

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Speaker 11: that there's hundreds of people like me who live here

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Speaker 11: whose names you'll never hear and wouldn't recognize, that are

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Speaker 11: doing work quietly behind the scenes to make Northwest Arkansas

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Speaker 11: one of the best places to live in our country.

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Speaker 8: In the context of big giving, there oftentimes is medium

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Speaker 8: and small and tiny giving. I mean, it's an energy

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Speaker 8: and it's an atmosphere of generosity that gets created. We

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Speaker 8: have these corporate giants that have done such an amazing

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Speaker 8: job in responding to the needs of not only the

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Speaker 8: local community, but the regional and state communities that it's

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Speaker 8: really inspired a whole generation of givers.

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Speaker 2: Perhaps the legendary investor and philanthropist Warren Buffett put it

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Speaker 2: best in his note this month to Berkshire Hathaway shareholders.

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Speaker 2: In the letter, he described his plans to step away

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Speaker 2: from the firm and give away over a billion dollars,

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Speaker 2: writing quote, when you help someone in any of thousands

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Speaker 2: of ways you help the world, kindness is costless but

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Speaker 2: also priceless. Whether you are religious or not, It's hard

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Speaker 2: to beat the Golden rule as a guide to behavior.

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Speaker 2: Back in Michigan, pastor Schnyder agrees love.

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Speaker 6: Your neighbor as yourself, and it's like just being a brother,

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Speaker 6: just being there for someone, regardless of whether or not

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Speaker 6: they've been there for you. You're okay to just jump

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Speaker 6: in and health, You're okay being there for other people.

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Speaker 5: What makes America unique in this world is the way

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Speaker 5: private Americans give so generously. You don't see that anywhere

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Speaker 5: else in.

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Speaker 1: The whole world.

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Speaker 5: And our government doesn't support a lot of these charities

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Speaker 5: the way they do. I think of the museum world,

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Speaker 5: the British Museum to live, they live off government sport.

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Speaker 5: The Metropol Museum is one hundred percent supported by private

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Speaker 5: flancery and private giving of ours, nothing from the government.

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Speaker 5: If we shrink that private philanthropy, I think we'll see

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Speaker 5: it a lot of places in the community, and I

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Speaker 5: think it would be a terrible thing. So I think

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Speaker 5: that's a really important pillar of American society and unique,

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Speaker 5: and we should be grateful for it, not threatening.

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Speaker 2: Whether it's New York City building or Bentonville. There are

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Speaker 2: many different ways of looking at giving and of doing it.

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Speaker 2: Michigan and Arkansas are exceptional, though hardly unique, but in

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Speaker 2: both cases the lessons are clear. Community matters Generosity is contagious,

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Speaker 2: and giving back can yield unexpected results. Through your long

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Speaker 2: history of charitable giving, what have you learned what about

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Speaker 2: it has changed in your mind from what you thought originally.

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Speaker 11: The most satisfaction I've had in my life has not

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Speaker 11: been the business success, the year over year growth, or

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Speaker 11: selling for more than I purchased a company for. It's

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Speaker 11: walking around the hallways and the sidewalks of new beginnings,

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Speaker 11: talking to somebody who a year ago was unsheltered in

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Speaker 11: the woods, didn't know where their next meal was going

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Speaker 11: to come from, and now they're in a safe environment

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Speaker 11: and they have a plan for permanent housing. The satisfaction

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Speaker 11: level that comes from giving and investing when you have

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Speaker 11: the ability to do so for people that don't is

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Speaker 11: ten or one hundred x any other experience of my life.

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Speaker 2: A remarkable return and investment, not in dollars, but in fulfillment.

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Speaker 2: Generosity pays dividends all its own.

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Speaker 5: Up.

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Speaker 2: Next, President Biden wanted more green energy. President Trump wants

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Speaker 2: more fossil fuels. We examine whether they both may be right.

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Speaker 2: This is a story about false choices. Washington can often

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Speaker 2: seem like a split screen with one party or administration

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Speaker 2: simply taking the other side in endless debates. We've seen

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Speaker 2: this with energy policy and the back and forth over

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Speaker 2: fossil fuels versus so called green energy. But on this one,

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Speaker 2: could they both be right?

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Speaker 11: I sign the most significant climate and clean energy law

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Speaker 11: ever ever in the history of the world.

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Speaker 7: Do you know what it is? We have a policy.

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Speaker 7: It's called Drill, Baby, Drill. That's our policy.

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Speaker 2: Two visions now bound by the same reality. An industry

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Speaker 2: under pressure.

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Speaker 12: We expect demand for electricity in the United States to

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Speaker 12: grow by about twenty five percent.

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Speaker 2: Racing to power our ever growing digital appetite.

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Speaker 13: What we know now is that the nation the country

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Speaker 13: is short of electrons, while millions of Americans are already

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Speaker 13: feeling the strain.

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Speaker 1: And they just said, Mary, you sold us peace of mind.

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Speaker 2: When you look at the last few decades, electricity demand

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Speaker 2: in the US is a three part story. From the

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Speaker 2: early nineteen nineties through about two thousand and five, demand

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Speaker 2: rose steadily as the economy grew and the grid expanded

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Speaker 2: with it. Then, from two thousand and five to twenty twenty,

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Speaker 2: the trend flattened, efficiency improved, and industries modernized. But starting

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Speaker 2: around twenty twenty, the pattern shifted again for the first

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Speaker 2: time in more than a decade. Electricity demand renewed its

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Speaker 2: upward march, and the projections for the future only climb

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Speaker 2: from there.

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Speaker 12: AI is affecting really everything across the board in the

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Speaker 12: electricity generation sector at the moment.

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Speaker 2: Ethan Zindler is the head of Country and Policy research

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Speaker 2: at Bloomberg New Energy Finance. Having served as climate counselor

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Speaker 2: to Treasury Secretary Janet Yellen, he sees efforts by the

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Speaker 2: Trump administration to cut back on green energy as running

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Speaker 2: up against the overall demand for more.

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Speaker 12: Energy when it comes to the zero carbon or lower

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Speaker 12: carbon energy technology companies. In some ways, it's the best

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00:26:19,960 --> 00:26:22,960
Speaker 12: of times and worst of times. Worst of times in

443
00:26:23,000 --> 00:26:28,000
Speaker 12: the sense that some major important subsidies have been removed

444
00:26:28,080 --> 00:26:31,280
Speaker 12: or in the process of being removed through actions from Congress.

445
00:26:31,560 --> 00:26:35,000
Speaker 7: The bill as amended is past, but the best.

446
00:26:34,720 --> 00:26:38,119
Speaker 12: Of times aspect of it is the demand for electricity,

447
00:26:38,280 --> 00:26:41,959
Speaker 12: after essentially being flat for about two decades, is now

448
00:26:42,080 --> 00:26:46,040
Speaker 12: quite quickly rising. So this is a real substantial change

449
00:26:46,080 --> 00:26:49,200
Speaker 12: and something that is providing a good deal of uplift

450
00:26:49,480 --> 00:26:50,280
Speaker 12: to the industry.

451
00:26:51,000 --> 00:26:53,720
Speaker 2: Markets are voting with their wallets as they always do,

452
00:26:54,000 --> 00:26:57,280
Speaker 2: betting on anything that can build fastest and connect first,

453
00:26:57,600 --> 00:27:02,080
Speaker 2: green or not. The engage tracking clean energy is up

454
00:27:02,119 --> 00:27:06,000
Speaker 2: about fifty percent this year, but behind the boom. Most

455
00:27:06,000 --> 00:27:09,040
Speaker 2: of the power supporting that AI growth still comes from

456
00:27:09,080 --> 00:27:11,920
Speaker 2: gas and coal, as they are set to shoulder much

457
00:27:11,960 --> 00:27:14,520
Speaker 2: of the next decade's growth in electricity demand.

458
00:27:15,320 --> 00:27:18,720
Speaker 13: We've largely solved the production side of energy. We know

459
00:27:18,760 --> 00:27:20,960
Speaker 13: how to produce natural gas, we know how to produce oil,

460
00:27:21,240 --> 00:27:24,200
Speaker 13: We know how to produce electrons. Our challenge in America

461
00:27:24,240 --> 00:27:27,120
Speaker 13: today has become getting that product to market.

462
00:27:27,119 --> 00:27:30,359
Speaker 2: A challenge. Dan Briett knows well. He led the Energy

463
00:27:30,400 --> 00:27:34,040
Speaker 2: Department in President Trump's first administration, so it wasn't that

464
00:27:34,080 --> 00:27:36,600
Speaker 2: long ago. All the talk was about energy independence and

465
00:27:36,600 --> 00:27:40,879
Speaker 2: now seems to be energy sufficiency from whatever source it comes.

466
00:27:41,160 --> 00:27:45,000
Speaker 2: What are we doing to make sure we have sufficient energy?

467
00:27:45,080 --> 00:27:48,119
Speaker 13: Beginning with at the federal level, what they're looking at

468
00:27:48,160 --> 00:27:51,479
Speaker 13: are things like permitting. One of the challenges to building

469
00:27:51,560 --> 00:27:55,199
Speaker 13: projects here in America has been the permitting process. We

470
00:27:55,280 --> 00:27:57,520
Speaker 13: have a deer mutual friend, and he's the CEO of

471
00:27:57,560 --> 00:28:01,080
Speaker 13: a major pipeline company. He has said bluntly, he said,

472
00:28:01,080 --> 00:28:02,960
Speaker 13: it takes me longer to get the permit than it

473
00:28:02,960 --> 00:28:05,680
Speaker 13: does to build the pipeline, and that's a problem.

474
00:28:05,880 --> 00:28:08,880
Speaker 2: When President Trump returned to office, he said some things

475
00:28:08,880 --> 00:28:10,960
Speaker 2: that some people interpreted saying, we want to go back

476
00:28:10,960 --> 00:28:14,119
Speaker 2: to favoring fossil fuels more. Has there been a shift

477
00:28:14,160 --> 00:28:15,640
Speaker 2: back towards fossil fuels.

478
00:28:16,160 --> 00:28:18,720
Speaker 13: You know, there's been a shift towards the realism that

479
00:28:18,840 --> 00:28:21,240
Speaker 13: is necessary in energy production. I think for years and

480
00:28:21,320 --> 00:28:24,520
Speaker 13: years and years, you know, perhaps as many as ten years,

481
00:28:24,680 --> 00:28:28,200
Speaker 13: the United States look at energy policy almost exclusively through

482
00:28:28,240 --> 00:28:31,000
Speaker 13: the lens of environmental policy or environmental science.

483
00:28:31,160 --> 00:28:33,160
Speaker 7: And we're going to put the miners back to work.

484
00:28:33,640 --> 00:28:36,000
Speaker 13: But when you think about energy and it's importance to

485
00:28:36,040 --> 00:28:39,360
Speaker 13: our economy, you cannot look at it exclusively through this

486
00:28:39,480 --> 00:28:40,880
Speaker 13: environmental science lens.

487
00:28:41,160 --> 00:28:44,080
Speaker 2: You mentioned oil and natural gas. There are also alternative

488
00:28:44,320 --> 00:28:48,120
Speaker 2: sources of energy, some called renewables or green energy. What

489
00:28:48,320 --> 00:28:50,560
Speaker 2: is that balance looking like and is it shifting?

490
00:28:50,880 --> 00:28:53,040
Speaker 13: It's not shifting very much. I mean, what we're seeing

491
00:28:53,040 --> 00:28:55,560
Speaker 13: are more and more renewables being put onto the grid.

492
00:28:55,600 --> 00:28:59,240
Speaker 13: That's certainly true, but that's largely capacity, you know, the

493
00:28:59,280 --> 00:29:02,120
Speaker 13: capacity of ability to make energy. It's not the production

494
00:29:02,240 --> 00:29:05,400
Speaker 13: of energy. Those are two different concepts. You know, although

495
00:29:05,440 --> 00:29:08,000
Speaker 13: we see a lot of renewable technologies like solar and

496
00:29:08,040 --> 00:29:10,760
Speaker 13: wind being put onto the grid, it's important to remember

497
00:29:10,800 --> 00:29:13,560
Speaker 13: that they only produce the energy about thirty to thirty

498
00:29:13,600 --> 00:29:16,000
Speaker 13: five maybe forty percent of the time. But it's going

499
00:29:16,040 --> 00:29:17,760
Speaker 13: to take all forms of energy that much.

500
00:29:17,800 --> 00:29:18,240
Speaker 7: We do know.

501
00:29:19,120 --> 00:29:22,760
Speaker 2: According to Bloomberg New Energy Finance data, centers could consume

502
00:29:22,800 --> 00:29:26,440
Speaker 2: about four point four percent of global electricity by twenty

503
00:29:26,480 --> 00:29:32,000
Speaker 2: thirty five, and companies representing both sides of the debate

504
00:29:32,200 --> 00:29:36,200
Speaker 2: race to increase energy production. There's another build out taking place,

505
00:29:36,440 --> 00:29:39,320
Speaker 2: one that doesn't depend on the grid for distribution, one

506
00:29:39,520 --> 00:29:43,320
Speaker 2: that is closer to home. We have a big increase

507
00:29:43,360 --> 00:29:45,840
Speaker 2: in the demand for energy. What is your company doing

508
00:29:45,920 --> 00:29:46,560
Speaker 2: to help with that?

509
00:29:46,920 --> 00:29:50,440
Speaker 1: Oh, we do have an incredible demand increasing demand for energy.

510
00:29:50,640 --> 00:29:54,160
Speaker 1: And what I love about what Sunrn is doing is

511
00:29:54,200 --> 00:29:58,080
Speaker 1: we are providing for Americans an avenue for energy and

512
00:29:58,120 --> 00:30:01,160
Speaker 1: dependence so they can generate their own energy, they can

513
00:30:01,240 --> 00:30:02,400
Speaker 1: store their own energy.

514
00:30:02,760 --> 00:30:05,720
Speaker 2: Mary Powell is the CEO of sun Run, the nation's

515
00:30:05,800 --> 00:30:10,400
Speaker 2: largest residential solar and battery company. She says Americans are

516
00:30:10,440 --> 00:30:13,920
Speaker 2: not waiting around for Washington to resolve policy differences.

517
00:30:14,680 --> 00:30:17,000
Speaker 1: We really pivoted very hard to what I call the

518
00:30:17,080 --> 00:30:19,560
Speaker 1: storage first company. We did that a couple of years ago.

519
00:30:19,920 --> 00:30:23,360
Speaker 1: We started as a more traditional solar company, so we

520
00:30:23,360 --> 00:30:26,720
Speaker 1: were about for Americans who wanted solar energy on their home.

521
00:30:27,040 --> 00:30:30,720
Speaker 1: We provided that, and then we really pivoted hard to

522
00:30:30,800 --> 00:30:33,479
Speaker 1: being storage first. So we put storage in homes and

523
00:30:33,520 --> 00:30:36,440
Speaker 1: we pair it with solar so that they have a

524
00:30:36,480 --> 00:30:41,000
Speaker 1: form of generation for storing in their home. That's not exclusive.

525
00:30:41,160 --> 00:30:43,560
Speaker 1: You know, once you have a storage device in your home,

526
00:30:43,920 --> 00:30:47,200
Speaker 1: you can be using grid energy as well to build

527
00:30:47,280 --> 00:30:50,480
Speaker 1: up your storage capacity so that you, as a consumer

528
00:30:50,880 --> 00:30:54,160
Speaker 1: don't have to experience grid outages, which as I think

529
00:30:54,160 --> 00:30:57,880
Speaker 1: we all know, are increasing rapidly around much of the country.

530
00:30:58,200 --> 00:31:01,200
Speaker 1: And at the same time rates have gone way up,

531
00:31:01,400 --> 00:31:06,040
Speaker 1: so it gives consumers a way to generate, store and

532
00:31:06,160 --> 00:31:10,000
Speaker 1: control their energy cost. Just this year, we have dispatched

533
00:31:10,240 --> 00:31:14,480
Speaker 1: seven hundred times back to the grid, and at the

534
00:31:14,520 --> 00:31:17,560
Speaker 1: same time, when we do that, we provide some value

535
00:31:17,600 --> 00:31:20,520
Speaker 1: back to that consumer because of course, as we should,

536
00:31:20,600 --> 00:31:23,800
Speaker 1: we get compensated for that capacity. So some of that

537
00:31:23,880 --> 00:31:27,040
Speaker 1: goes for increased value for sun Run and it gets

538
00:31:27,120 --> 00:31:28,960
Speaker 1: shared with the customers.

539
00:31:29,360 --> 00:31:32,920
Speaker 2: And the markets have taken notice sunrun stock surged this

540
00:31:33,040 --> 00:31:37,000
Speaker 2: year on strong cash flow and record installation. You've talked

541
00:31:37,000 --> 00:31:39,920
Speaker 2: about residential. Do you also have commercial applications or are

542
00:31:39,960 --> 00:31:41,120
Speaker 2: you residential specific?

543
00:31:41,240 --> 00:31:44,560
Speaker 1: No, we are all about residential. I feel like for

544
00:31:44,680 --> 00:31:47,520
Speaker 1: ten years I've talked about one of the greatest hopes

545
00:31:47,560 --> 00:31:51,040
Speaker 1: I have for America's grid in terms of affordability, is

546
00:31:51,520 --> 00:31:53,080
Speaker 1: you know, being the tip of the sphere on a

547
00:31:53,160 --> 00:31:56,120
Speaker 1: consumer led revolution. That's really how I see it. Like,

548
00:31:56,160 --> 00:32:01,200
Speaker 1: there's innovation now, there's new technologies available that consumers are

549
00:32:01,200 --> 00:32:04,360
Speaker 1: going to want to rapidly adopt. And then what's really

550
00:32:04,360 --> 00:32:07,239
Speaker 1: cool is we can use those resources to help make

551
00:32:07,280 --> 00:32:10,440
Speaker 1: the grid more affordable for all.

552
00:32:10,480 --> 00:32:13,960
Speaker 2: But making power more affordable is growing more difficult. A

553
00:32:13,960 --> 00:32:18,120
Speaker 2: Bloomberg analysis shows wholesale electricity prices in some US regions

554
00:32:18,160 --> 00:32:20,560
Speaker 2: have surged as much as two hundred and sixty seven

555
00:32:20,600 --> 00:32:24,600
Speaker 2: percent over the past five years, mostly in areas dominated

556
00:32:24,640 --> 00:32:25,880
Speaker 2: by data center growth.

557
00:32:26,320 --> 00:32:29,520
Speaker 1: Running a utility it's really hard work, and it's really

558
00:32:29,560 --> 00:32:34,760
Speaker 1: hard even when people agree, regulators, politicians, etc. That you

559
00:32:34,920 --> 00:32:38,280
Speaker 1: need more resources. As a country, we really went from

560
00:32:38,360 --> 00:32:42,320
Speaker 1: Nimbi you know, not in my backyard, to Banana, which

561
00:32:42,360 --> 00:32:45,640
Speaker 1: is you know, build absolutely nothing anywhere near anyone. So

562
00:32:46,720 --> 00:32:50,960
Speaker 1: you know, again, this is capacity that's being built because

563
00:32:50,960 --> 00:32:54,080
Speaker 1: consumers are deciding that they want to take more control

564
00:32:54,120 --> 00:32:54,880
Speaker 1: of their energy.

565
00:32:56,000 --> 00:32:58,880
Speaker 2: The same impulse driving consumers to take control of their

566
00:32:59,000 --> 00:33:02,680
Speaker 2: energy supply is now shaping national policy as the races

567
00:33:02,720 --> 00:33:05,520
Speaker 2: to compete in a global energy race, a race with

568
00:33:05,640 --> 00:33:08,280
Speaker 2: national security as well as economic stakes.

569
00:33:09,000 --> 00:33:13,280
Speaker 12: Particularly for the market for batteries, the US has really

570
00:33:13,800 --> 00:33:18,280
Speaker 12: heavily lied on China to provide the large scale batteries

571
00:33:18,280 --> 00:33:21,760
Speaker 12: that are used for so called utility scale projects. The

572
00:33:22,680 --> 00:33:26,840
Speaker 12: new One Big, Beautiful Bill includes a provision that specifically

573
00:33:26,920 --> 00:33:30,480
Speaker 12: attempts to turn the market away from foreign made batteries.

574
00:33:30,680 --> 00:33:33,640
Speaker 12: If you want to qualify for tax credits in a

575
00:33:33,680 --> 00:33:36,840
Speaker 12: couple of years, you will need to be using American

576
00:33:36,920 --> 00:33:39,440
Speaker 12: made equipment, or at least not Chinese made equipment.

577
00:33:40,000 --> 00:33:41,959
Speaker 13: I think many of the countries around the world are

578
00:33:41,960 --> 00:33:44,239
Speaker 13: beginning to understand the importance of energy to not only

579
00:33:44,280 --> 00:33:47,280
Speaker 13: do their economic security, but their national security. And that's

580
00:33:47,320 --> 00:33:49,760
Speaker 13: why you're starting to see in many cases the policies

581
00:33:49,800 --> 00:33:50,920
Speaker 13: shift in the way that they.

582
00:33:50,880 --> 00:33:53,720
Speaker 2: Are from nations to homes.

583
00:33:53,960 --> 00:33:57,000
Speaker 1: I don't see this consumer led revolution as the.

584
00:33:57,120 --> 00:33:59,520
Speaker 2: Solution whether it's green or not.

585
00:34:00,280 --> 00:34:04,800
Speaker 1: I see us being a really critical resource for flexible,

586
00:34:05,560 --> 00:34:08,520
Speaker 1: resilient solutions for utilities.

587
00:34:08,920 --> 00:34:11,920
Speaker 2: In the end, it's about power in every sense of

588
00:34:11,960 --> 00:34:12,360
Speaker 2: the word.

589
00:34:12,920 --> 00:34:15,560
Speaker 12: This is a real substantial change.

590
00:34:15,520 --> 00:34:18,480
Speaker 2: And one reality cuts through every debate.

591
00:34:18,960 --> 00:34:20,719
Speaker 13: We're going to need all of it in order to

592
00:34:20,760 --> 00:34:21,640
Speaker 13: meet the demand curve.

593
00:34:23,560 --> 00:34:27,000
Speaker 2: Coming up, another Formula one season, another win for Team

594
00:34:27,080 --> 00:34:30,279
Speaker 2: McLaren and its leader Zach Brown. He's here to tell

595
00:34:30,320 --> 00:34:34,480
Speaker 2: us his remarkable story from self described troublemaker in high

596
00:34:34,520 --> 00:34:37,480
Speaker 2: school in California to the very top of the biggest

597
00:34:37,480 --> 00:34:52,279
Speaker 2: sporting competition in the world. This is a story about

598
00:34:52,320 --> 00:34:56,120
Speaker 2: the fear of failure, something Zach Brown and McLaren haven't

599
00:34:56,120 --> 00:34:59,239
Speaker 2: experienced a lot of lately. The team has already won

600
00:34:59,320 --> 00:35:03,000
Speaker 2: Formula one's Instructors Championship, and it has Lando Norris and

601
00:35:03,040 --> 00:35:06,920
Speaker 2: Oscar Piastri numbers one and two in the driver standings

602
00:35:07,080 --> 00:35:09,799
Speaker 2: going into the Las Vegas Grand Prix. But for the

603
00:35:09,840 --> 00:35:12,200
Speaker 2: team CEO, the path to the top has been an

604
00:35:12,280 --> 00:35:18,719
Speaker 2: unusual one, and it all started with Mickey Mantle. The

605
00:35:18,760 --> 00:35:22,839
Speaker 2: motor racing great. Bruce McLaren once said, whatever we do,

606
00:35:23,080 --> 00:35:26,680
Speaker 2: we must do it better than anyone else and long

607
00:35:26,719 --> 00:35:30,200
Speaker 2: before Zach Brown ran the famed Papaya colored racing team,

608
00:35:30,560 --> 00:35:33,080
Speaker 2: that McLaren's spirit was alive and well.

609
00:35:34,440 --> 00:35:37,880
Speaker 9: I read in TV Guide that Mickey Mantle played golfit

610
00:35:38,000 --> 00:35:41,920
Speaker 9: Prussian Trails country Club. F I'm twelve thirteen years old

611
00:35:42,120 --> 00:35:44,359
Speaker 9: and I'm calling the country club every day.

612
00:35:44,440 --> 00:35:46,080
Speaker 7: Is Mickey Manelin? Is Mickey Manolin?

613
00:35:46,600 --> 00:35:46,719
Speaker 1: Now?

614
00:35:46,719 --> 00:35:49,279
Speaker 9: One day they go hold on and I'm like, oh

615
00:35:49,320 --> 00:35:52,920
Speaker 9: my god, like, how might talk to Mickey Mantle. Fifteen

616
00:35:52,920 --> 00:35:55,200
Speaker 9: minutes go by, They've called him in off the golf course.

617
00:35:55,239 --> 00:35:57,359
Speaker 9: I can see why he was a bit upset being

618
00:35:57,400 --> 00:35:59,320
Speaker 9: a golfer. Now and she picks up the phone and

619
00:35:59,320 --> 00:36:01,400
Speaker 9: he said hello, and I'm like, is this Mickey Mantle?

620
00:36:02,120 --> 00:36:05,239
Speaker 9: And he chewed me out like there was no tomorrow.

621
00:36:05,480 --> 00:36:08,440
Speaker 9: I'm in my room crying my eyes out, and my

622
00:36:08,480 --> 00:36:10,719
Speaker 9: mom came in and went, what's going on? I told

623
00:36:10,719 --> 00:36:13,840
Speaker 9: her the stories. She disappeared, got him back on the phone.

624
00:36:13,880 --> 00:36:16,160
Speaker 9: He thought it was a prank, didn't know it was

625
00:36:16,760 --> 00:36:19,120
Speaker 9: twelve thirteen year old kid. My mom came in said,

626
00:36:19,280 --> 00:36:21,200
Speaker 9: you and your brother pack your bags. We're going to

627
00:36:21,760 --> 00:36:24,080
Speaker 9: Dallas tomorrow. We're going to meet with Mickey Mannel. And

628
00:36:24,080 --> 00:36:28,120
Speaker 9: we spent half a day with Mickey Mannal's most unbelievable experience.

629
00:36:29,040 --> 00:36:33,000
Speaker 2: Whether it's meeting his heroes or chasing Formula One championships.

630
00:36:33,320 --> 00:36:34,759
Speaker 2: Brown is a hustler.

631
00:36:35,560 --> 00:36:39,319
Speaker 7: I love the art of the deal, you know, there's

632
00:36:39,320 --> 00:36:40,880
Speaker 7: an adrenaline.

633
00:36:40,760 --> 00:36:43,240
Speaker 2: To that and a winner.

634
00:36:44,120 --> 00:36:47,080
Speaker 9: I'm definitely motivated by the fear of defeat. I think

635
00:36:47,080 --> 00:36:51,080
Speaker 9: it's the unhealthier, more stressful version. But that's how I've

636
00:36:51,360 --> 00:36:53,480
Speaker 9: back when I was racing, like I just didn't want

637
00:36:53,480 --> 00:36:57,480
Speaker 9: to lose as opposed to I really want to win.

638
00:36:58,360 --> 00:37:00,000
Speaker 7: That's what gets you out of bed every day.

639
00:37:01,320 --> 00:37:04,719
Speaker 9: My first collecting criteria as the car had to have

640
00:37:04,719 --> 00:37:06,080
Speaker 9: won a racing period.

641
00:37:06,480 --> 00:37:09,520
Speaker 2: We met the McLaren Racing CEO at the Classic Car

642
00:37:09,560 --> 00:37:12,480
Speaker 2: Club of Manhattan ahead of the launch of his new book,

643
00:37:12,800 --> 00:37:16,120
Speaker 2: Seven tenths of a Second. Brown is one of the

644
00:37:16,200 --> 00:37:20,480
Speaker 2: highest paid executives in Formula One, taking home fifty million

645
00:37:20,560 --> 00:37:23,640
Speaker 2: dollars last year, a reward for an executive who has

646
00:37:23,680 --> 00:37:27,200
Speaker 2: returned one of motorsport's most storied teams to the top

647
00:37:27,320 --> 00:37:28,160
Speaker 2: of Formula One.

648
00:37:29,360 --> 00:37:32,080
Speaker 9: It almost feels harder because when now we're at the

649
00:37:32,080 --> 00:37:34,759
Speaker 9: top of the mountain, there's only one way to go,

650
00:37:34,880 --> 00:37:36,120
Speaker 9: and this is sport right.

651
00:37:36,280 --> 00:37:39,200
Speaker 7: That terrifies me and that's why I get up every day.

652
00:37:39,280 --> 00:37:41,719
Speaker 9: It's like I know the storm is coming, but I

653
00:37:41,760 --> 00:37:43,799
Speaker 9: want to kind of keep pushing it back as much

654
00:37:43,840 --> 00:37:45,759
Speaker 9: as possible and just keep doing what we're doing.

655
00:37:46,960 --> 00:37:50,160
Speaker 2: Zach Brown wasn't born into this world, and growing up

656
00:37:50,200 --> 00:37:52,840
Speaker 2: in California, he might not have seemed like the type

657
00:37:53,040 --> 00:37:55,480
Speaker 2: who would go on to run a multi billion dollar

658
00:37:55,640 --> 00:37:57,120
Speaker 2: Formula One team.

659
00:37:57,400 --> 00:37:59,200
Speaker 9: I was a bit of the troublemaker, was a bit

660
00:37:59,239 --> 00:38:02,640
Speaker 9: of the classic class. I did get in a baseball

661
00:38:03,280 --> 00:38:06,240
Speaker 9: and in work experience, which were my two loves.

662
00:38:06,239 --> 00:38:08,080
Speaker 7: Had there been a racing class.

663
00:38:07,719 --> 00:38:11,360
Speaker 9: I'm sure I would have done well with history, science, math,

664
00:38:13,120 --> 00:38:14,680
Speaker 9: just not that exciting for me.

665
00:38:15,640 --> 00:38:18,839
Speaker 2: Brown's path to racing wasn't the usual one, if there

666
00:38:18,920 --> 00:38:21,520
Speaker 2: is such a thing. It all started on a nineteen

667
00:38:21,600 --> 00:38:26,000
Speaker 2: eighty four appearance on Wheel of Fortune.

668
00:38:25,840 --> 00:38:29,480
Speaker 5: Zach three fifty dollars identify this person.

669
00:38:29,480 --> 00:38:32,000
Speaker 7: While Bill Hiccock, Yeah, that's.

670
00:38:31,800 --> 00:38:37,000
Speaker 2: It, and the deal making followed.

671
00:38:38,000 --> 00:38:39,880
Speaker 7: So I asked Mario Andretti, how do you get started

672
00:38:39,880 --> 00:38:41,040
Speaker 7: in racing? He said, karting.

673
00:38:41,120 --> 00:38:42,759
Speaker 9: Then there happened to be an ad in the race

674
00:38:42,800 --> 00:38:46,520
Speaker 9: program for Jim Halcart racing school. I had previously been

675
00:38:46,560 --> 00:38:49,160
Speaker 9: on Wheel of Fortune teen Week when I was thirteen

676
00:38:49,239 --> 00:38:49,719
Speaker 9: years old.

677
00:38:50,320 --> 00:38:50,680
Speaker 7: I won.

678
00:38:50,760 --> 00:38:52,640
Speaker 9: That was back in the day where you won prizes.

679
00:38:52,680 --> 00:38:55,040
Speaker 9: So I had this stash of his and her watches.

680
00:38:55,440 --> 00:38:56,960
Speaker 9: What am I going to do with these things? So

681
00:38:57,480 --> 00:38:59,560
Speaker 9: I went and sold them at a pawn shop in

682
00:38:59,680 --> 00:39:02,920
Speaker 9: man Eyes. Took that money, bought a goat cart and

683
00:39:02,960 --> 00:39:06,279
Speaker 9: got started racing in karting. And then it was kind

684
00:39:06,280 --> 00:39:07,280
Speaker 9: of school of hard knocks.

685
00:39:07,320 --> 00:39:08,680
Speaker 7: I didn't know how do you advance.

686
00:39:08,960 --> 00:39:11,480
Speaker 9: My mom, being a travel agent, she found someone at

687
00:39:11,520 --> 00:39:15,080
Speaker 9: TWA Airlines. It was passionate about racing. They gave me

688
00:39:15,080 --> 00:39:17,400
Speaker 9: some airline tickets. I'd go sell those airline tickets to

689
00:39:17,440 --> 00:39:19,320
Speaker 9: pay for racing, And that's kind of how the racing

690
00:39:19,320 --> 00:39:20,160
Speaker 9: career got started.

691
00:39:20,600 --> 00:39:23,640
Speaker 2: If you're really going to motor racing, you need some

692
00:39:23,719 --> 00:39:28,080
Speaker 2: financial support from someplace. Now, some people have wealthy parents

693
00:39:28,160 --> 00:39:30,440
Speaker 2: or wealthy backers and things like that. You didn't necessarily

694
00:39:30,480 --> 00:39:32,719
Speaker 2: have that. Your parents were much more middle class, So

695
00:39:32,840 --> 00:39:33,759
Speaker 2: how did you afford it?

696
00:39:34,040 --> 00:39:36,000
Speaker 7: So I started to learn how to do sponsorship.

697
00:39:36,760 --> 00:39:39,800
Speaker 9: I remember my mom and dad kind of talking about

698
00:39:39,800 --> 00:39:43,839
Speaker 9: how they could help me, and so my mom gave

699
00:39:43,920 --> 00:39:47,640
Speaker 9: me her salary for a year, which was about thirty

700
00:39:47,760 --> 00:39:50,000
Speaker 9: forty thousand dollars, a lot of money, but in the

701
00:39:50,280 --> 00:39:53,600
Speaker 9: big scheme of things from racing, you know those families

702
00:39:53,600 --> 00:39:56,800
Speaker 9: that I've spend millions and tens of millions. So it

703
00:39:56,840 --> 00:39:59,880
Speaker 9: was kind of enough to get me started, but not

704
00:40:00,239 --> 00:40:02,959
Speaker 9: for a full season. So then I didn't know anything

705
00:40:03,000 --> 00:40:05,759
Speaker 9: about sponsorship, but I got fully immersed in how to

706
00:40:05,920 --> 00:40:09,280
Speaker 9: sponsorship work, and really it trained me to this day,

707
00:40:09,400 --> 00:40:12,880
Speaker 9: which was I needed to understand what companies wanted to

708
00:40:12,880 --> 00:40:15,440
Speaker 9: do with their business and how I could use motor

709
00:40:15,480 --> 00:40:17,600
Speaker 9: racing to help them achieve their goals, something that I

710
00:40:17,719 --> 00:40:19,520
Speaker 9: still have with me to this day.

711
00:40:19,640 --> 00:40:21,720
Speaker 7: So I just started calling everyone.

712
00:40:21,840 --> 00:40:25,200
Speaker 9: Mickey Mantlestyle, ninety five out of one hundred people wuldn't

713
00:40:25,200 --> 00:40:27,879
Speaker 9: even take your phone call, but I was so desperate to.

714
00:40:27,840 --> 00:40:28,480
Speaker 7: Be in racing.

715
00:40:28,920 --> 00:40:32,200
Speaker 9: Just keep calling, keep calling, keep calling, and started kind

716
00:40:32,239 --> 00:40:36,040
Speaker 9: of knocking down doors, building relationships and figuring it out

717
00:40:36,320 --> 00:40:39,480
Speaker 9: as I went along, and then ended up getting pretty

718
00:40:39,480 --> 00:40:44,839
Speaker 9: good at a sponsorship by understanding what companies needed and

719
00:40:44,880 --> 00:40:47,240
Speaker 9: how motor racing can help them achieve their goals.

720
00:40:48,960 --> 00:40:51,799
Speaker 2: Brown was a good racer but never made it to

721
00:40:51,960 --> 00:40:55,280
Speaker 2: f one. He did, however, have a knack for deal making,

722
00:40:56,160 --> 00:40:58,480
Speaker 2: and so in two thousand and one he founded a

723
00:40:58,520 --> 00:41:03,160
Speaker 2: motorsport marketing firm, JMI, which helped establish Brown as a

724
00:41:03,200 --> 00:41:06,600
Speaker 2: major force at the intersection of racing and business. He

725
00:41:06,719 --> 00:41:11,120
Speaker 2: sold it in twenty thirteen and joined McLaren three years later.

726
00:41:11,800 --> 00:41:14,120
Speaker 2: What he came into was a mess.

727
00:41:14,840 --> 00:41:17,040
Speaker 9: If we were not competitive on track. We were ninth

728
00:41:17,080 --> 00:41:19,759
Speaker 9: in the championship. I know, I can't design a better

729
00:41:19,840 --> 00:41:22,359
Speaker 9: race car. We were at rock bottom as far as

730
00:41:22,600 --> 00:41:26,040
Speaker 9: sponsorship that I knew I could make a difference on.

731
00:41:26,320 --> 00:41:31,120
Speaker 9: And then morale, which was really our biggest challenge was

732
00:41:31,440 --> 00:41:33,759
Speaker 9: people were working well together and it was a bit

733
00:41:33,800 --> 00:41:36,399
Speaker 9: of a rudderless ship because there were so many things

734
00:41:36,400 --> 00:41:38,839
Speaker 9: going on at the board and there was I don't know,

735
00:41:38,880 --> 00:41:41,080
Speaker 9: three or four bosses that were in and out. So

736
00:41:41,120 --> 00:41:44,080
Speaker 9: I think any company, forget about whether it's a racing team,

737
00:41:44,120 --> 00:41:44,920
Speaker 9: just any company.

738
00:41:44,960 --> 00:41:47,960
Speaker 7: If you've got a lack of overall.

739
00:41:47,600 --> 00:41:51,560
Speaker 9: Leadership because of what was going on, then it's going

740
00:41:51,600 --> 00:41:54,360
Speaker 9: to be hard to kind of build momentum. So first

741
00:41:54,360 --> 00:41:57,200
Speaker 9: thing I worked on was trying to fix the economics

742
00:41:57,200 --> 00:42:00,400
Speaker 9: because I felt that was my sweet spot. Trying to

743
00:42:00,440 --> 00:42:03,160
Speaker 9: get everyone to kind of believe and then ultimately, if

744
00:42:03,160 --> 00:42:05,520
Speaker 9: I could get everyone to believe in the economics, and

745
00:42:05,560 --> 00:42:09,200
Speaker 9: then the massively talented people that could design a faster

746
00:42:09,400 --> 00:42:11,640
Speaker 9: race car, I could get them the tools that they need.

747
00:42:11,680 --> 00:42:15,160
Speaker 9: And then drivers are something that I'm very comfortable with,

748
00:42:15,239 --> 00:42:17,760
Speaker 9: and so bringing in Lando Norris and then of course Oscar.

749
00:42:17,840 --> 00:42:20,080
Speaker 9: But we had great drivers in Oscar, and we had

750
00:42:20,120 --> 00:42:23,520
Speaker 9: a great driver lineup, so tackled trying to kind of

751
00:42:23,920 --> 00:42:27,359
Speaker 9: build momentum, and we got that momentum going and then

752
00:42:27,400 --> 00:42:28,920
Speaker 9: it just accelerated.

753
00:42:29,719 --> 00:42:33,120
Speaker 2: When Brown joined McLaren in twenty sixteen, the team was

754
00:42:33,160 --> 00:42:36,319
Speaker 2: recording steady losses and languished at the foot of the

755
00:42:36,360 --> 00:42:40,160
Speaker 2: F one table, but it reversed that under Brown, raising

756
00:42:40,160 --> 00:42:44,440
Speaker 2: its annual revenue and climbing the standings, culminating and winning

757
00:42:44,480 --> 00:42:48,560
Speaker 2: the title in twenty twenty four. Brown says changing the

758
00:42:48,600 --> 00:42:51,400
Speaker 2: team's culture was a big part of the turnaround.

759
00:42:52,840 --> 00:42:55,880
Speaker 9: I'm sure there are people that wouldn't fit in our culture,

760
00:42:55,920 --> 00:42:58,960
Speaker 9: but I think that's what makes McLaren so special, as

761
00:42:59,000 --> 00:43:01,920
Speaker 9: we've created a cold sure that we all buy into.

762
00:43:02,080 --> 00:43:04,720
Speaker 7: We're all like minded. I have no yes.

763
00:43:04,600 --> 00:43:09,080
Speaker 9: People on the team. You know, everyone can speak up.

764
00:43:09,600 --> 00:43:12,560
Speaker 9: I get upset if they don't, and they know they can.

765
00:43:12,640 --> 00:43:15,839
Speaker 9: I get upset if they don't challenge me. My job

766
00:43:15,920 --> 00:43:17,640
Speaker 9: is to, you know, sometimes put the puck on the

767
00:43:17,680 --> 00:43:20,799
Speaker 9: ice and all come in with a view, sometimes an

768
00:43:20,800 --> 00:43:23,640
Speaker 9: even very strong view, and all I'll do a onet

769
00:43:23,640 --> 00:43:26,160
Speaker 9: eighty if you know, I hear from my team. Actually, Zach,

770
00:43:26,200 --> 00:43:27,960
Speaker 9: I don't think you're thinking about that the right way.

771
00:43:28,000 --> 00:43:31,000
Speaker 9: And it takes some time for people to get comfortable

772
00:43:31,880 --> 00:43:34,719
Speaker 9: kind of challenging the CEO. But I get upset if

773
00:43:34,760 --> 00:43:37,560
Speaker 9: they don't, so they know they're not allowed.

774
00:43:37,280 --> 00:43:37,879
Speaker 7: To hold back.

775
00:43:37,920 --> 00:43:40,960
Speaker 9: I'll get very grumpy if it's like, well I thought this,

776
00:43:41,120 --> 00:43:42,240
Speaker 9: I just didn't say anything.

777
00:43:42,320 --> 00:43:44,840
Speaker 7: So everyone on our team speaks up.

778
00:43:44,880 --> 00:43:46,840
Speaker 9: But then once we align around what we're gonna do,

779
00:43:46,880 --> 00:43:49,320
Speaker 9: we all hold hands and we're in this together. And

780
00:43:49,800 --> 00:43:53,200
Speaker 9: you'll never be able to tell if everyone if it

781
00:43:53,239 --> 00:43:56,080
Speaker 9: was a unanimous vote or a majority, And it's okay

782
00:43:56,080 --> 00:43:57,800
Speaker 9: to have a difference of opinion.

783
00:43:57,920 --> 00:43:59,360
Speaker 7: That's that's welcomed.

784
00:43:59,400 --> 00:44:02,279
Speaker 9: It's kind of you know, coming back to racing, and

785
00:44:02,280 --> 00:44:05,840
Speaker 9: I've learned so much about being a driver that I

786
00:44:05,840 --> 00:44:08,520
Speaker 9: think is relevant to being a CEO. So you need

787
00:44:08,560 --> 00:44:11,440
Speaker 9: to be able to listen well to your engineers. You

788
00:44:11,480 --> 00:44:13,719
Speaker 9: need to be able to communicate well. You need to

789
00:44:13,760 --> 00:44:16,000
Speaker 9: have a lot of trust in your team. It's life

790
00:44:16,120 --> 00:44:19,520
Speaker 9: or death. You need to be very data driven, and

791
00:44:19,800 --> 00:44:23,040
Speaker 9: you need to chase perfection, but know that you're actually

792
00:44:23,080 --> 00:44:25,640
Speaker 9: never going to be perfect. There's no such thing as

793
00:44:25,640 --> 00:44:28,399
Speaker 9: a perfect lap, a perfect race car. So you need

794
00:44:28,440 --> 00:44:31,280
Speaker 9: to have a group of people that kind of happy,

795
00:44:31,480 --> 00:44:33,960
Speaker 9: always being like, well, that's just not good enough.

796
00:44:34,880 --> 00:44:37,720
Speaker 2: We're fortunate in our careers if we find a person,

797
00:44:37,719 --> 00:44:41,000
Speaker 2: two persons, three peer people that we can look up

798
00:44:41,040 --> 00:44:43,920
Speaker 2: to and borrow from and learn from carry with us.

799
00:44:44,120 --> 00:44:47,320
Speaker 2: We already mentioned Mickey Mantle and Mario Andretti, pretty big names.

800
00:44:47,719 --> 00:44:50,799
Speaker 2: Are there other people that you really treasure in your

801
00:44:50,800 --> 00:44:51,440
Speaker 2: experience with?

802
00:44:51,880 --> 00:44:55,560
Speaker 9: Oh yeah, Roger Penske would have to be right at

803
00:44:55,640 --> 00:45:01,520
Speaker 9: the top. While he's been a massively more successful, but

804
00:45:01,560 --> 00:45:04,160
Speaker 9: I'm still going well, so is he, which is what's amazing.

805
00:45:04,760 --> 00:45:06,200
Speaker 7: He'll never stop, you know.

806
00:45:06,239 --> 00:45:09,279
Speaker 9: He started off as a racer, built a great team,

807
00:45:09,480 --> 00:45:13,040
Speaker 9: built a great business, understood how to use his racing

808
00:45:13,040 --> 00:45:16,040
Speaker 9: to build his business, knows how to build his racing

809
00:45:16,080 --> 00:45:18,319
Speaker 9: team office business. So I kind of was in the

810
00:45:18,480 --> 00:45:23,240
Speaker 9: business of racing. So a lot of similarities. He's a racer,

811
00:45:23,600 --> 00:45:27,040
Speaker 9: He's been in Formula One in IndyCar. You know, the

812
00:45:27,120 --> 00:45:29,440
Speaker 9: only thing he hasn't won is the twenty four Hours

813
00:45:29,480 --> 00:45:32,359
Speaker 9: Lama and he's eighty plus years old staying up twenty

814
00:45:32,360 --> 00:45:34,399
Speaker 9: four hours still trying to win the twenty four Hours

815
00:45:34,400 --> 00:45:40,239
Speaker 9: of Lama. So surrounded himself with great people always. He

816
00:45:40,320 --> 00:45:43,920
Speaker 9: was to me growing up in America, he was the

817
00:45:44,040 --> 00:45:49,320
Speaker 9: McLaren of North America because they even shared the same sponsorship.

818
00:45:49,400 --> 00:45:52,680
Speaker 9: So the Penske IndyCar looked like the McLaren Formula One.

819
00:45:52,520 --> 00:45:54,600
Speaker 7: Car from the eighties and nineties.

820
00:45:54,600 --> 00:45:57,040
Speaker 9: So I think Roger Penske is someone that's right at

821
00:45:57,040 --> 00:45:59,479
Speaker 9: the top of the list of someone that've got huge

822
00:45:59,480 --> 00:46:00,239
Speaker 9: admiration for.

823
00:46:02,000 --> 00:46:06,480
Speaker 2: Roger Penske owns IndyCar as well as the Indianapolis Motor Speedway,

824
00:46:06,920 --> 00:46:10,280
Speaker 2: and his team has won more Indianapolis five hundred races

825
00:46:10,320 --> 00:46:12,040
Speaker 2: than any other in history.

826
00:46:12,680 --> 00:46:15,160
Speaker 10: I've known Zach when he was from Indianapolis and he

827
00:46:15,239 --> 00:46:20,840
Speaker 10: had a company that really managed sponsors for different race teams.

828
00:46:20,880 --> 00:46:24,120
Speaker 10: And remember sitting down with him at the airport at

829
00:46:24,120 --> 00:46:28,000
Speaker 10: Indianapolis and he told me he hit two choices. He

830
00:46:28,000 --> 00:46:31,200
Speaker 10: could either potentially put his hand up to run IndyCar

831
00:46:32,000 --> 00:46:34,560
Speaker 10: or number two. You have a chance to maybe become

832
00:46:34,600 --> 00:46:37,759
Speaker 10: the CEO of McLaren. Well, he went one direction, we've

833
00:46:37,760 --> 00:46:41,160
Speaker 10: gone another. He's done a terrific job when you look

834
00:46:41,200 --> 00:46:45,600
Speaker 10: at what he's brought to McLaren from a corporate perspective.

835
00:46:46,360 --> 00:46:47,880
Speaker 7: He's a great guy on talent.

836
00:46:48,000 --> 00:46:50,319
Speaker 10: He knows how to go get the best and he's

837
00:46:50,360 --> 00:46:52,640
Speaker 10: a tough guy to deal with when the standpoint or

838
00:46:52,680 --> 00:46:55,319
Speaker 10: compete with. And he's really done it on his own.

839
00:46:55,360 --> 00:46:58,480
Speaker 10: I mean, he's got good people. But the McLaren name

840
00:46:58,920 --> 00:47:02,120
Speaker 10: has been terrific. I'm racing with Bruce McLarin and he's

841
00:47:02,160 --> 00:47:04,560
Speaker 10: taken that to the top, and with his two young

842
00:47:04,640 --> 00:47:07,760
Speaker 10: drivers this year actually racing each other for the World

843
00:47:07,840 --> 00:47:12,359
Speaker 10: Championship is amazing. But he's a leader. I think he's

844
00:47:12,400 --> 00:47:15,120
Speaker 10: a tough competitor and I can tell you one thing

845
00:47:15,200 --> 00:47:16,280
Speaker 10: he doesn't like to lose.

846
00:47:18,160 --> 00:47:21,040
Speaker 2: That fear of failure has driven Brown from a self

847
00:47:21,080 --> 00:47:25,680
Speaker 2: described punk to the very top of Formula one. What

848
00:47:25,719 --> 00:47:29,960
Speaker 2: would you today say to Zach Brown when you were

849
00:47:29,960 --> 00:47:31,959
Speaker 2: in high school, if he could walk into the room,

850
00:47:32,160 --> 00:47:33,120
Speaker 2: what would you say to him.

851
00:47:33,120 --> 00:47:36,719
Speaker 7: I'd probably get in a fight with him. I don't

852
00:47:36,760 --> 00:47:37,279
Speaker 7: know who'd win.

853
00:47:38,160 --> 00:47:41,880
Speaker 2: Brown might not know who'd win, but you can guarantee

854
00:47:42,239 --> 00:47:48,960
Speaker 2: neither would be happy losing. That does it for us

855
00:47:49,000 --> 00:47:51,319
Speaker 2: here at Wall Street Week, I'm David Weston. See you

856
00:47:51,440 --> 00:48:03,759
Speaker 2: next week for more stories of capitalism s