WEBVTT - Bloomberg Businessweek Weekend - October 28th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.559 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news As it happened. Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes. Tim 0:00:16.800 --> 0:00:21.479 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.640 --> 0:00:25.239 edition of Bloomberg Business Week. From Alphabet, Apple, Amazon and 0:00:25.280 --> 0:00:27.960 Google to Microsoft and Meta, it was all about big 0:00:28.000 --> 0:00:30.600 tech earnings this past week. And you know these are 0:00:30.600 --> 0:00:33.280 the companies Tim right, that have been disrupting and innovating 0:00:33.280 --> 0:00:37.120 for years. Speaking of innovation and disruption, coming up something 0:00:37.159 --> 0:00:40.400 that might be the king of all disruptors or not. Crypto, 0:00:40.760 --> 0:00:44.880 The latest edition of Bloomberg Business Week magazine dedicated entirely 0:00:45.040 --> 0:00:47.720 to the Crypto story, your guide to what it does, 0:00:47.920 --> 0:00:51.080 what it means, and why it still matters that in 0:00:51.120 --> 0:00:53.920 a moment, and I gotta say, really, this whole first 0:00:53.960 --> 0:00:56.280 hour is all about our ever changing world and those 0:00:56.320 --> 0:00:59.480 shaking it up. With that in mind. Coming up another 0:00:59.520 --> 0:01:03.680 disrupt or, Chinese President j Ping tightening his grip and 0:01:03.680 --> 0:01:06.280 what it all means. Plus the Metaverse in practice with 0:01:06.319 --> 0:01:09.479 the CEO of Super League Gaming. All of that to come, 0:01:09.520 --> 0:01:11.839 We begin with the Crypto story, for just the second 0:01:11.920 --> 0:01:15.279 time ever the entire magazine dedicated to a single topic 0:01:15.319 --> 0:01:18.080 from a single writer. Paul Forwards what his code was 0:01:18.120 --> 0:01:20.600 the first that was just a few years ago. This 0:01:20.680 --> 0:01:24.520 time it's Bloomberg Opinions. Matt Levine, you know him from 0:01:24.560 --> 0:01:28.320 his Money Stuff newsletter that hits your inbox around lunchtime 0:01:28.319 --> 0:01:32.560 each day. He gave us forty thousand words on digital assets. 0:01:32.680 --> 0:01:35.800 He certainly did. Bloomberg business Week Markets and Finance editor 0:01:35.840 --> 0:01:39.040 Pat Regnier and the editor of Bloomberg business Week Magazine, 0:01:39.080 --> 0:01:42.039 Joel Weber give us a primer on the innovation that 0:01:42.080 --> 0:01:44.520 could forever change the way we transact and how we 0:01:44.640 --> 0:01:47.920 view the world of finance. Crypto has been just honestly, 0:01:48.200 --> 0:01:51.120 it's been an amazing story for a decade, and then 0:01:51.160 --> 0:01:55.280 to see what's sort of transpired over the last um year, 0:01:56.040 --> 0:01:58.520 uh where it has just felt like a lot of 0:01:58.720 --> 0:02:00.960 error has come out of the balloon and it just 0:02:00.960 --> 0:02:03.680 sort of makes you wonder, like, what was this thing 0:02:03.720 --> 0:02:06.360 that we've lived through for this past decade and what 0:02:06.600 --> 0:02:08.600 help us make sense of that? And the number one 0:02:08.680 --> 0:02:11.040 thing that I think collectively that group was like, we 0:02:11.360 --> 0:02:13.760 all want to read it. Is like anything Matt Levine 0:02:14.280 --> 0:02:17.720 wants to say about crypto, Um, we will, we will 0:02:17.720 --> 0:02:20.080 publish that, all right? So Pat coming in on here, 0:02:20.320 --> 0:02:22.560 uh and this because it's an incredible story. And I 0:02:22.600 --> 0:02:24.000 have to say I already said to do Like I 0:02:24.000 --> 0:02:25.920 started reading it and I'm like, oh, I kind of 0:02:25.919 --> 0:02:29.000 start to get it after so many conversations, so many 0:02:29.000 --> 0:02:32.480 different interviews, what Matt writes in terms of how he 0:02:32.560 --> 0:02:35.040 kicks it all off, it starts to make sense crypto 0:02:35.200 --> 0:02:38.040 to me. How do you guys, though, work with Matt 0:02:38.080 --> 0:02:41.519 on this because it's a massive project and it's broken 0:02:41.520 --> 0:02:43.560 down into parts. But how do you approach something this 0:02:43.720 --> 0:02:45.640 What are the conversations you had back and forth with 0:02:45.720 --> 0:02:48.440 Matt about it? Well, I mean first with something like this, 0:02:48.480 --> 0:02:51.560 you just asked him what he wants to do. He's 0:02:51.560 --> 0:02:55.800 such an accomplished writer that often the wisdom of editing 0:02:56.040 --> 0:02:58.520 is in knowing when to get out of somebody's way. Um, 0:02:58.560 --> 0:03:03.400 But then to ask questions and to be a good interlocutor. Um. 0:03:03.440 --> 0:03:06.079 I think there are different people on staff who think 0:03:06.080 --> 0:03:10.160 about crypto differently. I'm crypto skeptic and it was fun 0:03:10.240 --> 0:03:13.399 to bounce ideas off him, and I think the achievement 0:03:13.400 --> 0:03:17.040 of the piece is how demystifying it is. UM. If 0:03:17.080 --> 0:03:18.800 I try to describe it to people, I say, this 0:03:18.840 --> 0:03:22.000 is a tool for thinking about this thing that's kind 0:03:22.000 --> 0:03:24.760 of captured so much of our attention, and it could 0:03:24.840 --> 0:03:26.639 it could take you in a lot of different directions. 0:03:26.639 --> 0:03:28.799 I think one thing that a lot of people feel 0:03:28.840 --> 0:03:32.760 about crypto is let's say, for example, you're a crypto skeptic. 0:03:33.040 --> 0:03:37.280 You'll say, I, I'm skeptical this, but I'm not sure 0:03:37.280 --> 0:03:40.160 I understand it well enough because it's sort of obfuscated 0:03:40.200 --> 0:03:43.480 in so many wayers of detail. He'll he'll break that 0:03:43.520 --> 0:03:44.800 down for you, and he'll show it to you and 0:03:44.800 --> 0:03:47.240 you'll be able to think about it with an open mind. 0:03:47.320 --> 0:03:49.480 It might change your mind, but it also might actually 0:03:50.040 --> 0:03:52.400 uh take you to thinking about it in new ways. 0:03:52.520 --> 0:03:55.680 I think if you are a crypto fan, um he 0:03:55.800 --> 0:03:58.760 might surprise you in like what he focuses on and 0:03:58.800 --> 0:04:01.920 what he doesn't A lot of sort of the most 0:04:02.000 --> 0:04:05.280 important talking points of people who like crypto you won't 0:04:05.320 --> 0:04:07.760 see much in this story. And then he'll he's kind 0:04:07.760 --> 0:04:11.720 of drilling down into some of the UH financial market 0:04:11.800 --> 0:04:14.360 details of crypto and some of the surprising places that 0:04:14.360 --> 0:04:16.760 crypto went just in the past couple of years, and 0:04:16.800 --> 0:04:20.600 you may see new interesting opportunities in that or new 0:04:20.640 --> 0:04:24.920 places that crypto can go. Hey, Joel, can you talk 0:04:24.960 --> 0:04:27.400 a little bit about the presentation of this piece. It's 0:04:27.440 --> 0:04:31.040 it's in the magazine, so it's in traditional magazine format, 0:04:31.480 --> 0:04:34.440 but it's completely i don't want to say, a completely 0:04:34.440 --> 0:04:37.080 different experience if you read it online. Can you just 0:04:37.120 --> 0:04:40.120 talk from an editorial perspective, how you sort of make 0:04:40.200 --> 0:04:46.039 something unique online but also you can digest it in 0:04:46.080 --> 0:04:51.400 a traditional format. So the staff UM several members have 0:04:51.440 --> 0:04:54.240 been around long enough that they worked on that code 0:04:54.240 --> 0:04:56.600 issue that I mentioned by by Paul Fordan and so 0:04:56.680 --> 0:05:00.160 there were learnings from you know, sort of uh, how 0:05:00.200 --> 0:05:03.000 this is, you know what, and how ambitious we can 0:05:03.040 --> 0:05:06.719 be with this. And you know, the dirty little secret 0:05:06.760 --> 0:05:09.599 is that we built it really for web first, because 0:05:09.960 --> 0:05:12.760 we wanted this presentation to be something that was just 0:05:12.920 --> 0:05:16.400 organic and and in its kind of native form for 0:05:16.480 --> 0:05:19.039 the Internet. And so we did that first and foremost, 0:05:19.080 --> 0:05:22.440 and then we basically have reverse engineered it from there 0:05:22.440 --> 0:05:24.560 into print and it's almost going to be a one 0:05:24.600 --> 0:05:29.120 to one UM uh, kind of transmission where we take 0:05:29.160 --> 0:05:32.240 everything that we've already done online and bringing into the magazine. 0:05:32.800 --> 0:05:35.200 And I think there will be some there's some little, 0:05:35.240 --> 0:05:37.760 you know, bells and whistles that obviously aren't going to 0:05:37.920 --> 0:05:41.600 translate to print. But I think what we really tried 0:05:41.640 --> 0:05:44.920 to accomplish here was something that was timeless and felt 0:05:45.000 --> 0:05:48.080 like you know, if you if you really only read 0:05:48.160 --> 0:05:50.800 one Crypto story ever, and like, look like I think 0:05:51.279 --> 0:05:53.840 what's interesting about crypto and it's very different than code, 0:05:53.880 --> 0:05:56.760 was that code is this invisible thing and around you 0:05:56.839 --> 0:06:00.440 and is the architecture on which our modern worlds built. 0:06:00.480 --> 0:06:03.480 And then crypto is not like that. Like you have 0:06:03.720 --> 0:06:06.280 people who believe and then people who don't believe. So 0:06:06.360 --> 0:06:09.760 it's this really divisive topic. But we we I think 0:06:09.800 --> 0:06:12.200 we've really tried to create something here where people on 0:06:12.240 --> 0:06:15.760 either side of that equation have something that they can 0:06:16.040 --> 0:06:19.520 can read and understand. Like like Pat said, there, I 0:06:19.520 --> 0:06:21.840 think we're really we We tried to go out here 0:06:21.960 --> 0:06:24.920 and reach the whitest possible audience. With that, Joe Weber 0:06:24.960 --> 0:06:27.560 and Pat Rigneer breaking down this week's issue cover to 0:06:27.680 --> 0:06:31.760 cover again one story, the Crypto Story. Your guide to 0:06:31.839 --> 0:06:33.960 what it does, what it means, and why it still matters. 0:06:33.960 --> 0:06:37.120 By Matt Levine. It's so crucial to understand this coming 0:06:37.200 --> 0:06:39.719 up someone who's not so in love with crypto but 0:06:39.960 --> 0:06:42.760 very clear about what he wants to do about the future. 0:06:43.200 --> 0:06:46.280 It's been just about one week since m Pink solidified 0:06:46.320 --> 0:06:49.039 his singular spot at the top. What that means for 0:06:49.040 --> 0:06:51.599 the global pecking order when we come back. You're listening 0:06:51.640 --> 0:07:03.800 to Bloomberg Business Week. This is Bloomberg. This is Bloomberg 0:07:03.839 --> 0:07:07.440 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:07:07.480 --> 0:07:13.000 Stenovik from Bloomberg Radio. You might recall a chilling scene 0:07:13.080 --> 0:07:15.160 last week. It came out of China last week, and 0:07:15.360 --> 0:07:18.440 I watched it many times, feeling the gravity of it, 0:07:18.480 --> 0:07:22.800 watching former General Secretary Hu Jintao ushered off stage at 0:07:22.840 --> 0:07:26.520 the Chinese Party Congress and watching President Jijan Ping of 0:07:26.600 --> 0:07:30.679 China cement an unprecedented third term as that country's top leader. 0:07:30.920 --> 0:07:33.320 Andy Brown leads the China Hub as a partner at 0:07:33.320 --> 0:07:36.680 Brunswick Group. It's a critical issues advisory firm. He's also 0:07:36.760 --> 0:07:39.200 the former editorial director of Bloomberg New Economy and spent 0:07:39.280 --> 0:07:41.760 thirty five years in Asia. As both China editor and 0:07:41.800 --> 0:07:44.440 columnist for The Wall Street Journal. The Pulitzer Prize winning 0:07:44.480 --> 0:07:46.760 journalists joined us to sum up the result of She's 0:07:47.000 --> 0:07:52.800 years long game. So victory for Sea absolute triumph, gets 0:07:52.800 --> 0:07:56.360 his third um basically, if he wants it, rule of 0:07:56.400 --> 0:07:59.840 a life, packs the polit Burero standing committee with his 0:08:00.000 --> 0:08:03.440 own people. People say he's the new Mao, not in 0:08:03.480 --> 0:08:06.440 the sense that he's about to unleash chaos on China. 0:08:06.480 --> 0:08:09.240 I mean he wants order, but in the sense of power, 0:08:09.680 --> 0:08:12.760 in the sense of prestige, in the sense of his 0:08:12.840 --> 0:08:17.360 place and history. In fact, he may actually have more 0:08:17.480 --> 0:08:20.960 leeway than Mao. Mao, after all, had to launch the 0:08:20.960 --> 0:08:24.240 cultural revolution to get control of the party. She has 0:08:24.280 --> 0:08:28.960 no rivals, no peers, and no success. He's alone at 0:08:29.000 --> 0:08:31.760 the top. Now, what the markets are reacting to is 0:08:31.760 --> 0:08:35.120 the fact that this wasn't just a personal victory. It 0:08:35.200 --> 0:08:38.400 was a victory for his policies, the policies that have 0:08:38.559 --> 0:08:43.520 so alarmed investors, portfolio investors as well as global companies 0:08:43.559 --> 0:08:46.560 investing in China over the last several years. So how 0:08:46.640 --> 0:08:50.760 do how should investors after decades of thinking this is 0:08:50.760 --> 0:08:54.080 where companies wanted to be to tap into um their 0:08:54.120 --> 0:08:57.760 citizen base. What a billion plus people. How should investors 0:08:57.800 --> 0:09:00.800 think about the Chinese market going forward? You know, it's 0:09:00.800 --> 0:09:05.000 so interesting. I took to I talked to business leaders 0:09:05.040 --> 0:09:09.479 now investing in China all the time. Just about everything 0:09:09.800 --> 0:09:13.800 they knew or thought they knew about China has turned 0:09:13.800 --> 0:09:18.520 outside down. They thought that the Chinese system was optimized 0:09:18.520 --> 0:09:23.479 for growth and development. In fact, it's now optimized for security. 0:09:23.559 --> 0:09:27.560 China is looking inward. They thought that Don Cha Ping's 0:09:27.920 --> 0:09:32.800 open door, open reform and opening policies would continue indefinitely. 0:09:33.679 --> 0:09:37.000 She's Don Schalping's open door has turned into Si jim 0:09:37.040 --> 0:09:41.839 Ping's fortress China. They thought that policy making would be 0:09:41.920 --> 0:09:48.000 pragmatic and predictable. It's become ideological, almost random. They thought 0:09:48.200 --> 0:09:52.320 businesses thought that China would do everything it could to 0:09:52.600 --> 0:09:58.440 ensure a benign global environment that would facilitate China's economic rise. 0:09:58.960 --> 0:10:04.840 Wolf warriord to pharmacy, ballistic missiles over Taiwan. Uh An 0:10:04.880 --> 0:10:10.960 alignment with Putin's Russia ahead of the invasion of Ukraine 0:10:11.360 --> 0:10:14.240 has reversed all of that kind of thinking. It's a 0:10:14.400 --> 0:10:17.200 very very different China. I do think about do we 0:10:17.280 --> 0:10:19.640 look back. I don't know any year from now, five 0:10:19.720 --> 0:10:21.200 years or now a few years, and this was the 0:10:21.240 --> 0:10:25.440 beginning of the division of the world, or maybe that 0:10:25.480 --> 0:10:27.800 was starting already, Like how do we think about this 0:10:27.880 --> 0:10:30.480 in a world where globalization was supposed to be it 0:10:30.559 --> 0:10:33.440 all that we've seen a tremendous pushback. We have to 0:10:33.480 --> 0:10:38.760 recognize that she Jimping is building a very different China. 0:10:38.880 --> 0:10:42.800 He has a very different vision. It's a vision that 0:10:43.040 --> 0:10:48.000 prioritizes security over growth, and it comes from a fundamental 0:10:48.080 --> 0:10:52.640 place of insecurity. He believes that Chinese government believes, the 0:10:52.720 --> 0:10:55.600 Party believes that they're in the early stages of a 0:10:55.800 --> 0:11:00.240 decades long struggle for supremacy against you and I did 0:11:00.280 --> 0:11:04.679 states that may actually lead to conflict. And so all 0:11:04.760 --> 0:11:08.880 of these policies that you see rolled out from you know, uh, 0:11:08.920 --> 0:11:12.720 the advance of the state, the assault on the private sector, UM, 0:11:12.880 --> 0:11:18.520 COVID zero, populist policies aimed at wealth redistribution, forcing billionaires 0:11:18.559 --> 0:11:24.559 to disgorge their money, UM, a more assertive foreign policy. UM. 0:11:24.679 --> 0:11:27.880 So much of this has to do with hardening the 0:11:27.960 --> 0:11:30.959 economy for the for the for for the struggle that 0:11:31.000 --> 0:11:33.319 they feel is coming. So what does it mean for 0:11:33.440 --> 0:11:39.200 American companies that want to do business there, Apple, Nike, Disney, Tesla, 0:11:39.480 --> 0:11:41.760 just to name a few. I mean they want access 0:11:41.880 --> 0:11:45.600 to this growing consumer base and this what well, what 0:11:45.679 --> 0:11:49.239 could end up being a wealthier consumer base. Right, So 0:11:49.240 --> 0:11:51.520 so they have a dilemma. They're not they're not going 0:11:51.559 --> 0:11:53.360 to leave. I mean a few are leaving. Right. We 0:11:53.400 --> 0:11:58.240 saw linked in airbnbum a couple of a few companies 0:11:58.240 --> 0:12:01.560 that weren't doing much in China, had big reputational risks, 0:12:01.600 --> 0:12:05.199 weren't weren't earning many much much much money. They've they've 0:12:05.280 --> 0:12:09.760 abandoned ship, they bailed. Most companies are staying uh and 0:12:09.800 --> 0:12:14.520 they're hedging. Uh. You know, every CEO is being leaned 0:12:14.520 --> 0:12:17.319 on now by by their boards. What is your plan? 0:12:17.480 --> 0:12:20.440 B what is your plans? Ce What do you do 0:12:20.520 --> 0:12:22.319 if it all goes wrong? What do you do if 0:12:22.360 --> 0:12:26.080 if the Chinese invade? Uh Taiwan. We saw this just 0:12:26.160 --> 0:12:29.520 the other day in the congressional hearings. You had politicians 0:12:29.600 --> 0:12:35.680 grilling you know, uh, Jamie, Jamie Dimond, you know, uh, 0:12:36.080 --> 0:12:38.640 all of the the the you know, Brian, Brian Moyney, 0:12:39.080 --> 0:12:41.960 you know, Jane Phraser. It's like, okay, what what's your 0:12:42.000 --> 0:12:43.880 what's your plan? What would you do you know, well, 0:12:43.920 --> 0:12:45.520 of course we would salute the flag and do what 0:12:45.520 --> 0:12:47.400 we're told to do. Right. And then somebody said to 0:12:47.480 --> 0:12:49.640 Jane Phraser, no, no, no, what what if you weren't 0:12:49.720 --> 0:12:52.360 told what you had to do? Said, well, we would 0:12:52.360 --> 0:12:55.400 probably still we would probably still pull out. Now this 0:12:55.480 --> 0:12:58.480 is this is a very different situation from Russia, right. 0:12:58.520 --> 0:13:02.520 I mean these companies that some of I'm getting of 0:13:02.559 --> 0:13:06.760 their global revenues out of China. So I do wonder 0:13:06.800 --> 0:13:09.559 about President g with everything that happened over the weekend, Andy, 0:13:09.760 --> 0:13:12.199 who's there to question him? We always talk about it's 0:13:12.240 --> 0:13:15.400 important for our leaders to be questioned. So who's there? 0:13:15.400 --> 0:13:17.320 And as a result, if there is no one, what 0:13:17.520 --> 0:13:21.360 happens in terms of China and the Chinese economy? Carol, 0:13:21.679 --> 0:13:25.360 you don't need to be a sinologist to figure out 0:13:26.120 --> 0:13:30.640 where all this goes? Uh. You know, the longer he 0:13:30.800 --> 0:13:33.720 lingers in office, the more he's going to face this 0:13:33.920 --> 0:13:40.880 autocrats dilemma. Right. So as the autocrat ages he or 0:13:41.000 --> 0:13:46.760 she usually he becomes more isolated, more paranoid, doesn't know 0:13:47.200 --> 0:13:50.679 where the next threat is going to come from. And 0:13:50.720 --> 0:13:55.040 as a consequence of that, the tendency is to pack 0:13:55.160 --> 0:14:02.080 themselves around with yes men with sickopants. Okay, and these 0:14:02.080 --> 0:14:05.360 are not the people who are going to challenge the 0:14:05.480 --> 0:14:10.960 great leading And as a result, course correction becomes quite 0:14:10.960 --> 0:14:13.720 a bit more difficult. Right, and for all its faults, 0:14:13.800 --> 0:14:17.880 for all its faults, democracy does have within it this 0:14:17.960 --> 0:14:22.320 capacity to shift course. We've seen it very but right, 0:14:22.360 --> 0:14:26.560 we can shift course, right, ask Liz Trust Okay, uh, 0:14:26.600 --> 0:14:28.680 you know that does not That is not going to 0:14:28.800 --> 0:14:32.320 happen in in China. That was Andy Brown. He leads 0:14:32.320 --> 0:14:34.640 the China Hub as a partner at the Brunswick Group 0:14:34.880 --> 0:14:37.520 and of course a former colleague of ours here at Bloomberg. 0:14:37.640 --> 0:14:39.360 So glad we could check in with him. All right, 0:14:39.440 --> 0:14:42.560 still ahead on Bloomberg Business Week, the metaverse it is here? 0:14:42.720 --> 0:14:45.920 So is it really here? To him? I don't think 0:14:45.920 --> 0:14:48.120 it's here yet, I mean, asked Mark Zuckerberg, you know 0:14:48.200 --> 0:14:51.600 during earnings. Yeah, exactly. Well, I gotta say our next guest. 0:14:51.640 --> 0:14:54.200 He is the perfect use case for the nascent technology 0:14:54.280 --> 0:14:56.680 in the wide world, the video games. We got super 0:14:56.720 --> 0:15:00.960 League Gaming CEO and hand up. Next. This is Bloomberg 0:15:04.240 --> 0:15:08.240 broadcasting from the financial capital of the world, Bloomberg eleven 0:15:08.320 --> 0:15:12.920 Frio in New York to Washington, d C. Bloomberg to Boston, 0:15:13.000 --> 0:15:16.440 Bloomberg one O six one to San Francisco, Bloomberg nine 0:15:16.520 --> 0:15:19.760 sixty to the country Sirius XM Chado one nineteen and 0:15:19.840 --> 0:15:23.200 around the globe the Bloomberg Business app and Bloomberg Radio 0:15:23.320 --> 0:15:27.960 dot com. This is Bloomberg Business Week, one of the 0:15:27.960 --> 0:15:30.880 big tech companies that with results this week meta Platforms, 0:15:30.960 --> 0:15:33.880 noting in its third quarter earning statement at the path 0:15:33.920 --> 0:15:37.000 to the metaverse, it is an expensive one and it 0:15:37.080 --> 0:15:40.440 will keep on losing money. And yet, you know, Tim, 0:15:40.520 --> 0:15:43.200 there's still businesses that are already showing demand for this technology. 0:15:43.320 --> 0:15:46.120 That includes gaming and hand is chairman and CEO of 0:15:46.160 --> 0:15:49.440 Super League Gaming. It's an e sports community and content platform. 0:15:49.480 --> 0:15:52.360 It's a publicly held company, a microcap that has struggled 0:15:52.360 --> 0:15:54.320 this year, along with many others in the tech spased 0:15:54.320 --> 0:15:58.400 down roughly se here today still an sees immense opportunity 0:15:58.440 --> 0:16:02.160 ahead as these virtual platforms expand their reach. Bloomberg Radios 0:16:02.160 --> 0:16:04.560 Paul Sweeney and I began by asking her how she 0:16:04.640 --> 0:16:07.440 defines the metaverse the way that I simply try to 0:16:07.440 --> 0:16:09.880 talk to both investors and some of our larger brand 0:16:09.880 --> 0:16:12.680 partners about is the first kind of part of the 0:16:12.720 --> 0:16:15.880 metaverse is metaverse games or what we call open world 0:16:15.880 --> 0:16:18.680 platform games. And in those games, instead of you going 0:16:18.720 --> 0:16:20.920 in and just playing a game that served up to you, 0:16:20.920 --> 0:16:24.640 you're actually given tools to create your own games and experiences, 0:16:24.720 --> 0:16:27.440 and there's no limit to what that game offied experience 0:16:27.480 --> 0:16:29.920 can be. It can be concerts, fashion shows, it can 0:16:29.920 --> 0:16:32.840 be all kinds of things. Metaverse game or open world 0:16:32.880 --> 0:16:35.800 platforms have been around for over a decade. It's it's 0:16:35.800 --> 0:16:40.120 platforms like Minecraft and Roadblocks and now increasingly Fortnite. Um. 0:16:40.240 --> 0:16:43.040 You don't need a VR headset um, and you can 0:16:43.120 --> 0:16:46.120 participate in those experiences as a creator or as a 0:16:46.200 --> 0:16:50.000 viewer or player. Um. Right now today, hundreds of millions 0:16:50.000 --> 0:16:52.520 of kids are already there, and the super leagues built 0:16:52.520 --> 0:16:55.480 a pretty big footprint there. We reached seventy million unique 0:16:55.800 --> 0:16:59.080 under eighteen gamers a month in those worlds alone. So 0:16:59.120 --> 0:17:02.240 the first thing I say is big meta maybe five 0:17:02.320 --> 0:17:05.399 years away, but the there. But metaverse games don't be 0:17:05.560 --> 0:17:08.000 don't be afraid of them. They're around. That's where kids play. 0:17:08.119 --> 0:17:10.399 They prefer those types of game modes where they can 0:17:10.440 --> 0:17:14.600 be the creator as well. Uh to to traditional video games. 0:17:14.960 --> 0:17:18.399 Now that said, I do think that bigger meta is 0:17:18.400 --> 0:17:21.199 going to continue to happen faster than we think. There 0:17:21.200 --> 0:17:24.240 are companies building out the engines so that you don't 0:17:24.280 --> 0:17:28.080 just have to use roadblocks and Minecraft to create these experiences. 0:17:28.480 --> 0:17:31.760 Big brands, Iconic I P will be able to create 0:17:31.800 --> 0:17:35.760 their own worlds and interact with their fans and gamify 0:17:35.800 --> 0:17:39.280 things and modestization around those fans um and own that 0:17:39.359 --> 0:17:43.159 full user in that modestization stream. And that's not far away. 0:17:43.359 --> 0:17:46.320 That's happening and really now and over the next one 0:17:46.359 --> 0:17:48.240 to two years. So I think it's going to be gradual. 0:17:48.760 --> 0:17:50.639 I don't know if I'll ever be the person wearing 0:17:50.680 --> 0:17:53.000 a br headset for ten hours a day, right that 0:17:53.160 --> 0:17:55.880 that big meta vision. But but what I can give 0:17:55.920 --> 0:17:58.640 comfort around is it does exist right now in these 0:17:58.640 --> 0:18:00.840 game platforms. You know, when we think about the metaverse, 0:18:00.880 --> 0:18:04.359 are big bigger meta? Is it just with a gaming component? 0:18:04.480 --> 0:18:06.960 Is everything with a gaming component? Or is it the 0:18:06.960 --> 0:18:09.320 way you see it? I know you're an e sports 0:18:09.400 --> 0:18:11.919 community and content platforms, so that's your world, but is 0:18:11.960 --> 0:18:15.000 it something even more wider than that? Thank you for 0:18:15.040 --> 0:18:17.320 that question, because we do get called the sports a 0:18:17.359 --> 0:18:19.520 lot and yet we are so much bigger than that. 0:18:19.520 --> 0:18:22.280 Now when we talk about those seventy million monthly players, 0:18:22.680 --> 0:18:25.440 we're talking to all kinds of people who are seeking 0:18:25.480 --> 0:18:29.800 community inside these game based platforms. But super League isn't 0:18:29.840 --> 0:18:33.440 really just a gaming company. We gamify experiences and so 0:18:33.600 --> 0:18:36.320 to your question, it's much bigger than that. Um. We 0:18:36.440 --> 0:18:40.080 helped Samsung earlier this year bring Charlie xc X into 0:18:40.160 --> 0:18:43.960 the metaverse for a concert. We ran the Red Carpet 0:18:44.080 --> 0:18:47.200 for the MTV v m A Awards inside a digital 0:18:47.240 --> 0:18:50.720 world where your digital avatar could participate in that experience. 0:18:50.920 --> 0:18:53.840 And this is a real time example right now. We've 0:18:53.840 --> 0:18:58.399 had the pleasure of helping Mattel take their steps into 0:18:58.520 --> 0:19:01.720 met these metaverse games. And now you can go into 0:19:01.720 --> 0:19:04.840 one of our game world's called life Topia, and you 0:19:04.880 --> 0:19:08.199 can hang out in Barbie's dream House. We've created a 0:19:08.240 --> 0:19:11.680 three story digital version of Barbie's dream House. You can 0:19:11.680 --> 0:19:13.679 swim in the pool, lay on the chaise lounge, go 0:19:13.800 --> 0:19:16.520 hang out in Barbie's closet and try on clothes those 0:19:16.520 --> 0:19:20.040 aren't to all of us again, traditional video games. That's 0:19:20.080 --> 0:19:23.159 about community, it's a digital cul de sac. It's people 0:19:23.240 --> 0:19:26.919 finding people they want to socialize with. And so super 0:19:27.000 --> 0:19:30.040 League has come a long way because we now have 0:19:30.119 --> 0:19:31.919 the kind of reach where we can speak to the 0:19:31.960 --> 0:19:35.480 Barbie girl, the Hot Wheels boy, that older demo that 0:19:35.520 --> 0:19:38.520 maybe a Samsung or MTV wants to reach. Because here's 0:19:38.520 --> 0:19:41.800 the reality. Everybody is a gamer these days and it's 0:19:41.800 --> 0:19:44.360 not just hardcore gaming like we we tended to think 0:19:44.400 --> 0:19:47.080 about it five ten years ago. All right, just real quickly, 0:19:47.119 --> 0:19:49.440 what's the business model here? Do I sell advertising against 0:19:49.480 --> 0:19:53.000 this audience or charged them subscription business model? Yeah? The 0:19:53.359 --> 0:19:56.000 primary business model is that we work with brands and 0:19:56.080 --> 0:19:59.679 partners to take them into two metaverse worlds that we 0:19:59.760 --> 0:20:03.560 all already operate ourselves or are part of our extended network. 0:20:03.600 --> 0:20:07.080 We have several hundred game worlds, so when when a 0:20:07.119 --> 0:20:09.200 brand like Mattel comes to us, we can say, look, 0:20:09.440 --> 0:20:11.359 here are the types of game worlds that we really 0:20:11.440 --> 0:20:15.080 think matches your target audience. Here's the experience that we 0:20:15.160 --> 0:20:17.720 think um is right. And then we have some pretty 0:20:17.880 --> 0:20:22.919 special proprietary ad technology, media tech and analytics. And what 0:20:23.040 --> 0:20:25.560 that means is is we may have built Barbie's dream 0:20:25.600 --> 0:20:28.440 house in one world, but we have three D Barbies 0:20:28.600 --> 0:20:33.400 characters walking around digital avatars and other worlds directing traffic 0:20:33.440 --> 0:20:35.359 to it. I think in the first two weeks of 0:20:35.359 --> 0:20:37.879 Barbie we had were thirty two million visitors to her 0:20:37.960 --> 0:20:42.560 dream house. So we're talking about really outstanding numbers as 0:20:42.600 --> 0:20:46.520 far as engagement, but also deep engagement, you know, hanging 0:20:46.520 --> 0:20:49.639 out minutes at a time that was Super League Gaming 0:20:49.720 --> 0:20:52.720 CEO and Hamlett, me and Paul Sweeney. You're listening to 0:20:52.720 --> 0:20:55.600 Bloomberg Business Week. Up next, more from the c suite, 0:20:55.920 --> 0:20:58.679 this time on finding the financial professionals of the future, 0:20:58.760 --> 0:21:02.439 the Tapestry CFO. He's also CEO Scott Roe weighing in. 0:21:02.760 --> 0:21:12.119 That's coming up next. This is Bloomberg. You're listening to 0:21:12.240 --> 0:21:16.119 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:21:16.240 --> 0:21:21.480 Tim Stinovik from Bloomberg Radio Blier. This past week, a 0:21:21.520 --> 0:21:24.639 Bloomberg Live event was held at Bloomberg Global headquarters in 0:21:24.680 --> 0:21:27.960 New York City. It featured chief financial officers talking about 0:21:27.960 --> 0:21:31.760 cultivating the next generation of financial professionals. Carol spoke with 0:21:31.840 --> 0:21:34.600 Katie Rooney. She's CFO at a Light Solutions. It's a 0:21:34.640 --> 0:21:38.240 professional services, data and tech company that provides benefits, payroll 0:21:38.240 --> 0:21:41.920 and HR services and Applications also taking part with Scott Roe, 0:21:42.000 --> 0:21:45.000 CFO and CEO of Tapestry, that of course is home 0:21:45.000 --> 0:21:47.600 to the coach Stuart Whitesman and Kate Spade Brands. We 0:21:47.720 --> 0:21:50.440 kicked off our chat with thoughts on today's tricky world 0:21:50.480 --> 0:21:54.239 and the challenging financial conditions facing companies everywhere. Scott, let 0:21:54.240 --> 0:21:55.840 me kick it off with you. I told you in 0:21:55.880 --> 0:21:58.399 the green room. So I've been repeating something you said 0:21:59.160 --> 0:22:02.040 on our planning call, and that is short terms really 0:22:02.040 --> 0:22:05.439 hard to call right now for sure? Yeah, what a 0:22:05.520 --> 0:22:08.880 strange environment where in In In fact, we did an investor 0:22:08.960 --> 0:22:12.199 day recently and I made the comment it's almost easier 0:22:12.240 --> 0:22:15.400 to see the long term than it is the short term. 0:22:15.440 --> 0:22:20.959 And so what we're doing today, frankly, is we're talking 0:22:21.000 --> 0:22:23.840 more about decision models. Used to be able to put 0:22:23.840 --> 0:22:26.680 a you know, a plan out and say I think 0:22:26.800 --> 0:22:29.000 I think we can we can create this plan. But 0:22:29.119 --> 0:22:32.440 right now it's so volatile. We're thinking about agility, How 0:22:32.440 --> 0:22:34.920 do we react quick and what are the decision models 0:22:34.920 --> 0:22:37.880 of the no regret actions that we should take rather 0:22:37.960 --> 0:22:41.840