WEBVTT - Trade issues, Re-branding and Luxury Beds 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 0:00:08.760 --> 0:00:11.520 Along with my co host Lisa Bramowitz. Each day we 0:00:11.640 --> 0:00:15.120 bring you the most important, noteworthy, and useful interviews for 0:00:15.200 --> 0:00:17.840 you and your money, whether you're at the grocery store 0:00:17.960 --> 0:00:20.720 or the trading floor. Find the Bloomberg p m L 0:00:20.840 --> 0:00:34.040 Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. The 0:00:34.120 --> 0:00:38.120 rhetoric is hot. The action in markets is saying we 0:00:38.240 --> 0:00:41.360 don't buy it right now. The trade talk is way 0:00:41.400 --> 0:00:46.080 more powerful than the actual effects, at least according to traders. 0:00:46.080 --> 0:00:48.479 But are they taking things seriously enough and joining us 0:00:48.479 --> 0:00:51.440 down to talk about that. Alberto Gallo, Partner and portfolio 0:00:51.479 --> 0:00:55.280 manager of macro Strategies at Algebras UK Limited. Uh, coming 0:00:55.280 --> 0:00:58.320 to us from London. Alberto, we always love having you on. 0:00:58.360 --> 0:01:01.080 Thank you so much for being with us. So you know, 0:01:01.240 --> 0:01:04.600 we heard President Trump of say We're gonna go ahead 0:01:04.600 --> 0:01:09.640 with tariffs on our our allies, the allies responding with 0:01:09.840 --> 0:01:14.000 absolute anger, markets totally shrugging it all off. Are they 0:01:14.000 --> 0:01:19.399 to senguine? I believe that markets are a little bit complacent, 0:01:19.560 --> 0:01:23.000 especially emerging markets. It's true that we had a very 0:01:23.000 --> 0:01:27.280 bad week last week, but generally speaking, we see an 0:01:27.400 --> 0:01:33.640 escalation in UH trade conflicts and UM the policies of 0:01:33.680 --> 0:01:36.800 the Trump administration is implementing we'll bring growth back to 0:01:36.920 --> 0:01:39.920 the US out of emerging markets. So what we're seeing 0:01:39.959 --> 0:01:43.640 actually in the credit space is a reprising of spreads 0:01:43.720 --> 0:01:47.240 across UH, some of the weakest emerging markets like Argentina 0:01:47.280 --> 0:01:48.960 and Turkey, but also some of the other ones like 0:01:49.000 --> 0:01:53.800 brazili and Mexico. And we think that these UM, these 0:01:53.920 --> 0:01:56.920 carry trades will continue to be under pressure. First it 0:01:57.120 --> 0:02:00.360 was currency is now even harder, even local currency debt, 0:02:00.720 --> 0:02:04.360 and then hard currency debt are repricing UM and also 0:02:04.440 --> 0:02:07.320 Europe will be on the more pressure because Europe depends 0:02:07.560 --> 0:02:12.200 very much on exports to emerging market. So you know, 0:02:12.400 --> 0:02:15.200 it's a stronger dollar trend even though we have some 0:02:15.560 --> 0:02:20.320 relief today, and it's a trend of divergence, not goldilocks, 0:02:20.320 --> 0:02:23.280 so the opposite of what we had last year. Alberto, 0:02:23.600 --> 0:02:26.120 how much of what you're saying, which is weaker as 0:02:26.120 --> 0:02:28.800 a prices in the in the European Union as well 0:02:28.840 --> 0:02:31.520 as an emerging markets, how much of that hinges on 0:02:31.960 --> 0:02:34.440 escalating trade tensions and how much do you think that 0:02:34.520 --> 0:02:37.600 just will happen based on where we are right now 0:02:37.760 --> 0:02:42.440 in the economic cycle. There's two things. One is that 0:02:42.840 --> 0:02:45.960 the trade tensions, as you said, have a potential to 0:02:46.040 --> 0:02:51.040 become worse. And geo political risk also is relatively high 0:02:51.040 --> 0:02:54.320 in the Middle East. So all these things can can 0:02:54.400 --> 0:02:58.120 hinder global trade. The second fear that we have is 0:02:58.160 --> 0:03:01.520 that after a week Q one, some economies may just 0:03:01.760 --> 0:03:04.280 not regain the momentum they have lost. So in the 0:03:04.360 --> 0:03:07.200 in the Eurozone, for example, you've seen a pretty weak 0:03:07.919 --> 0:03:10.000 Q one. The level of growth, the level of p 0:03:10.160 --> 0:03:13.120 m I are very good, but momentum is fading. And 0:03:13.160 --> 0:03:15.200 so what you should do, if if you are a 0:03:15.200 --> 0:03:19.800 policymakers now is to do a physical stimulus to um 0:03:19.960 --> 0:03:23.040 to UH push growth higher. And we know that some 0:03:23.120 --> 0:03:26.960 core European countries have a surplus um like Germany, France 0:03:27.000 --> 0:03:30.240 that they can spend, but there is lack of willingness 0:03:30.320 --> 0:03:33.080 to to use this um. So for the moment we 0:03:33.120 --> 0:03:36.520 are in a slowdown um, you know, in a slowdown 0:03:36.520 --> 0:03:40.320 of momentum. Well, Alberto, Italy doesn't seem to have any 0:03:40.360 --> 0:03:43.680 reticence about spending money that they don't have. And I'm 0:03:43.680 --> 0:03:47.320 curious about whether you believe Italy's problems are over because 0:03:47.560 --> 0:03:51.680 they have a new finance minister, Giovanni Tria, and I 0:03:51.720 --> 0:03:55.480 believe that in the past he has actually said that 0:03:55.640 --> 0:04:01.680 the euro is a rigged system in favor of Germany. Well, 0:04:01.800 --> 0:04:04.320 the Eurozone is favor in Germany, that is a fact. 0:04:04.880 --> 0:04:08.880 There's a making his study which shows that Germany is 0:04:09.160 --> 0:04:13.280 gaining around two and fifty billion euros in savings from 0:04:13.320 --> 0:04:16.120 being in the Eurozone by funding a negative yields and 0:04:16.160 --> 0:04:19.280 by having an exchange rate which is lower than than 0:04:19.320 --> 0:04:22.159 a potential dodge Mark would be. So some of these 0:04:22.160 --> 0:04:25.680 benefits are not being redistributed. But it's also true that 0:04:26.480 --> 0:04:30.160 Germany cannot bear the weight of saving all the periphery 0:04:30.200 --> 0:04:33.760 countries and Italy hasn't done the reforms it should have done. 0:04:34.320 --> 0:04:36.640 So you know, the truth is in the middle at 0:04:36.720 --> 0:04:40.720 least been very much the UM the target of all 0:04:40.720 --> 0:04:44.279 the migrant flows, together with Spain in Greece from North Africa, 0:04:44.400 --> 0:04:48.400 and so it has been under a particular physical strain 0:04:49.040 --> 0:04:53.359 to um to host all the all the migrants. Around 0:04:53.720 --> 0:04:57.200 almost a million people arrived in the last few years. 0:04:57.240 --> 0:04:59.640 So I would say the euro exit fear is has 0:04:59.680 --> 0:05:02.920 been a it overdone Italy doesn't want to exit. Three 0:05:02.960 --> 0:05:05.159 out of four Italians want to stay in the European 0:05:05.240 --> 0:05:08.200 Union and in the Eurozone. But maybe a little bit 0:05:08.200 --> 0:05:10.640 of slack on the physical side. The pro growth measures 0:05:10.640 --> 0:05:13.360 are needed in the periphery where you still have very 0:05:13.400 --> 0:05:17.120 high youth unemployment. Okay, So Alberto, I want to put 0:05:17.160 --> 0:05:20.600 you on the spot. What would make you actually trade 0:05:21.680 --> 0:05:24.120 on some of the trade talk? In other words, you 0:05:24.160 --> 0:05:27.000 know what, what so far have we heard with respect 0:05:27.040 --> 0:05:30.800 to rhetoric that has actually affected your investing thesis and 0:05:31.080 --> 0:05:35.000 uh and made you shift around your portfolio generally, I 0:05:35.040 --> 0:05:38.960 would say we have already shifted towards a less positive 0:05:39.000 --> 0:05:43.520 stance on some of the emerging market country's debt which 0:05:43.520 --> 0:05:45.880 we were invested in last year. So we have reduced 0:05:46.279 --> 0:05:49.479 exposure to some of the riskiest countries in emerging markets. 0:05:49.520 --> 0:05:53.919 We have actually hedged or overheaged um some of the 0:05:53.960 --> 0:05:58.360 weakest ones like Turkey or Argentina and also Brazilian Mexico 0:05:58.400 --> 0:06:01.320 which face elections this year. We're not looking for a crisis, 0:06:01.360 --> 0:06:04.240 but there is a potential for repricing because the FED 0:06:04.480 --> 0:06:07.840 is hiking so liquidit is going away from em back 0:06:07.880 --> 0:06:12.120 to America to dollar assets, so some of these carry 0:06:12.120 --> 0:06:14.760 trades that were so profitable aren't profitable anymore. And also 0:06:14.800 --> 0:06:19.320 that you know, the trade escalation could be a negative 0:06:19.320 --> 0:06:24.200 growth driver for countries that export to the to the US, 0:06:24.360 --> 0:06:27.560 for for China and all the countries that rely on 0:06:27.560 --> 0:06:31.880 on on China. UM and all these things are you know, 0:06:31.920 --> 0:06:34.640 if you look at valuations, they're not really priced in UM. 0:06:34.680 --> 0:06:38.120 There's been a very good year last year for emerging 0:06:38.160 --> 0:06:40.920 markets debt and equity, and and you know this year 0:06:41.000 --> 0:06:44.560 we had a small a small correction, but you know, 0:06:44.640 --> 0:06:47.640 spreads in emerging market debt are still near record lows. 0:06:47.880 --> 0:06:52.040 Thanks very much, Alberto Gallo, portfolio manager. Ahead of macro Strategies, 0:06:52.080 --> 0:07:11.080 Algebra Investments joining us from London. The shares of Merk 0:07:11.160 --> 0:07:14.360 are higher by nearly two percent right now. This comes 0:07:14.480 --> 0:07:18.320 after the results of a follow up to follow up 0:07:18.400 --> 0:07:22.080 studies having to do with advanced melanoma showing that Merk's 0:07:22.160 --> 0:07:26.960 key true to drug demonstrated long term survival benefits. Here 0:07:26.960 --> 0:07:30.600 to tell us more about this and other wonders of 0:07:30.640 --> 0:07:35.440 the scientific world attending the American Society of Clinical Oncology 0:07:35.480 --> 0:07:39.520 conference in Chicago is none other than our healthcare reporter 0:07:39.680 --> 0:07:43.280 for stocks Tatiana Dar and she joins us now and 0:07:43.360 --> 0:07:47.680 I recommend you follow Tatiana on Twitter at Tatiana Dor. 0:07:47.920 --> 0:07:51.560 That's D A R I double E when it comes 0:07:51.600 --> 0:07:55.480 to being on Twitter. Tatiana tell us about this meeting. 0:07:55.520 --> 0:08:01.200 Why is this this clinical oncology conference so important to companies? Yes, 0:08:01.680 --> 0:08:03.880 thanks so much for having me them so we have. 0:08:04.040 --> 0:08:07.160 It's important because we have really the biggest UH and 0:08:07.200 --> 0:08:10.800 the most prominent doctors and cancer and in the fields 0:08:10.800 --> 0:08:13.600 of oncology attending this meeting to really stay on top 0:08:13.680 --> 0:08:17.200 of the research and innovation in this field. And this 0:08:17.280 --> 0:08:20.240 year it appears that Mark is a clear winner here 0:08:20.320 --> 0:08:23.720 because they just posted data in UM stage four lung 0:08:23.800 --> 0:08:26.480 key answer. These are really patients that have no other 0:08:26.560 --> 0:08:29.880 options and the most important finding here is that their drug, 0:08:29.920 --> 0:08:33.760 key Truda, was able to help patients live longer than 0:08:33.920 --> 0:08:38.400 those on chemos therapy. So this studies really positions the 0:08:38.480 --> 0:08:43.120 company to UM allow patients to avoid chemotherapy altogether and 0:08:43.160 --> 0:08:46.240 just go on Truda, and the benefit there was from 0:08:46.320 --> 0:08:51.000 four to eight months. That's a remarkable UM benefit, you 0:08:51.040 --> 0:08:53.480 know for those patients who really don't have a lot 0:08:53.480 --> 0:08:59.280 of options. So Mark a winner one loser Nectar Therapeutics. 0:08:59.320 --> 0:09:01.640 You just put out a story noting that it has 0:09:01.679 --> 0:09:05.640 lost a third of its value today after a study 0:09:05.679 --> 0:09:08.600 that it put out. Can you tell us more about that? Yes, 0:09:08.679 --> 0:09:10.599 exactly so. And the last time I check you was 0:09:10.640 --> 0:09:14.320 about a quarter. I think that they are they lost 0:09:14.400 --> 0:09:17.760 or even more than that. It's incredible the move. Investors 0:09:17.800 --> 0:09:21.559 are really punishing Nectar Therapeuts here, and that's because expectations 0:09:21.559 --> 0:09:24.360 were really high going into the conference. This is a 0:09:24.360 --> 0:09:27.839 company that's presented very promising results of its drug in 0:09:27.960 --> 0:09:33.400 combination with bristol um squibbed up pivo and uh those results. 0:09:33.440 --> 0:09:36.120 The big question for investor here has been will those 0:09:36.120 --> 0:09:39.440 promising results called up in a bigger patient population, And 0:09:39.520 --> 0:09:43.240 unfortunately we have seen as those response rates come down 0:09:43.320 --> 0:09:47.319 and melanoma and kidney cancer. Well, the company has been 0:09:47.320 --> 0:09:50.760 assuring investors that yet too early to tell and rush 0:09:50.800 --> 0:09:54.439 to conclusions about the drugs benefit because they've only presented 0:09:54.880 --> 0:09:57.720 data on patients that happened on the treatment for just 0:09:57.760 --> 0:09:59.880 a couple of months. So they will have up an 0:10:00.080 --> 0:10:03.200 state later in the year. But you know, today it 0:10:03.240 --> 0:10:07.160 looks like investors are have been really disappointed so far. 0:10:07.880 --> 0:10:11.400 Tatiana how do you describe to people this world of 0:10:11.520 --> 0:10:14.439 gene editing, because that seems to be such a hot 0:10:14.480 --> 0:10:19.800 area when it comes to investments and also scientific advances. Yes, 0:10:19.880 --> 0:10:23.360 I'm um uh, probably the best way to describe it 0:10:23.440 --> 0:10:26.360 right now, you know, in science fiction, because this is 0:10:26.400 --> 0:10:31.400 really something. It's just incredible to have um doctors being 0:10:31.440 --> 0:10:34.040 able to you know, and scientists being able to edit 0:10:34.120 --> 0:10:37.720 your DNA information so that it can provide a cure 0:10:37.880 --> 0:10:41.280 for some diseases that have genetic mutations and have no 0:10:41.440 --> 0:10:44.960 other alternative today. But it's very early, and you know, 0:10:45.000 --> 0:10:48.160 we've seen and we've learned with Christmas Therapeutics. The FDA 0:10:48.240 --> 0:10:50.600 has put a hold on a trial that they haven't 0:10:50.600 --> 0:10:53.240 even started, and that's because there is still a lot 0:10:53.280 --> 0:10:56.080 of questions when it comes to doing this in people. 0:10:56.520 --> 0:10:59.160 We have data in animals. We know it works on 0:10:59.240 --> 0:11:02.600 agriculture with plants. With animals, we don't know yet if 0:11:02.640 --> 0:11:06.040 it works in humans and if it's sad enough. Tell 0:11:06.120 --> 0:11:10.720 us about a company called Bluebird Bio. They're based in Cambridge, 0:11:10.760 --> 0:11:13.840 and of course the Bloomberg one or six one Boston, Newburyport. 0:11:14.040 --> 0:11:16.439 Tell us about Bluebird Bio. The shares are up about 0:11:16.440 --> 0:11:20.240 three and a half percent today. Yes, Blue was also 0:11:20.320 --> 0:11:23.679 subject to a pretty interesting debate here at the conference, 0:11:23.679 --> 0:11:27.000 they posted data showing that their drug I delayed the 0:11:27.040 --> 0:11:31.439 progression of a melanoma in patients by almost about a year. 0:11:31.720 --> 0:11:34.400 And if you compare that to the current standard of 0:11:34.440 --> 0:11:37.160 care or the current treatments that patients are getting, they're 0:11:37.200 --> 0:11:40.320 only seeing a benefit of about four months. So you know, 0:11:40.360 --> 0:11:45.160 that's an impressive benefit of almost double the current benefit 0:11:45.240 --> 0:11:49.160 that they're getting. But the question for investors, also based 0:11:49.160 --> 0:11:54.400 on high expectations um on primary results, has been if 0:11:54.440 --> 0:11:57.160 they can provide a larger benefit, and I think investors 0:11:57.160 --> 0:12:00.560 were looking for something closer to fifteen months. But doctors, 0:12:01.040 --> 0:12:03.559 you know, again, I guess they had those conversations over 0:12:03.600 --> 0:12:06.080 the weekend they said, this is a very solid result 0:12:06.320 --> 0:12:10.480 a year versus the four months we're currently seeing. Tatiana, 0:12:10.559 --> 0:12:12.959 I'm wondering, just if you take a step back, whether 0:12:13.000 --> 0:12:18.120 there's been any discussion about President Trump's talk of lowering 0:12:18.240 --> 0:12:23.960 drug prices given the fact that these are largely pharmaceutical companies. Uh, well, 0:12:24.320 --> 0:12:27.400 not so much, Lisa, that this conference is very, very 0:12:27.440 --> 0:12:30.719 focused on the latest innovation in on colloge here and 0:12:31.240 --> 0:12:33.920 I guess that that the talk has in town has 0:12:33.920 --> 0:12:38.520 been anti TUDA and also on combination approaches, because unfortunately 0:12:38.600 --> 0:12:41.040 we're seeing a great benefit and lung cancer patients, but 0:12:41.320 --> 0:12:43.720 there are lots of other cancers and lots of other 0:12:43.760 --> 0:12:47.280 patients who currently don't have many options. So doctors are 0:12:47.320 --> 0:12:51.240 trying to um to to see what the latest innovation 0:12:51.280 --> 0:12:54.360 there is. Tatiana, thank you so much for being with us. 0:12:54.400 --> 0:12:56.600 It's always a fascinating conference. We look forward to your 0:12:56.600 --> 0:13:00.400 reports out of it. Tatiana Darier, Healthcare reporter for Boomberg. 0:13:00.400 --> 0:13:04.760 Reporting from the American Society of Clinical Oncology Winners and 0:13:04.840 --> 0:13:11.000 losers emerging as these companies reveal tests and uh studies 0:13:11.040 --> 0:13:14.240 that show whether or not their their strategies are effective. 0:13:29.280 --> 0:13:33.400 The advertising industry has been rapidly changing. In one company 0:13:33.640 --> 0:13:38.000 in particular is trying to reflect that change in itself. 0:13:38.280 --> 0:13:42.240 Joining us now is John Seafort Cifert. Excuse me, John cifer, 0:13:42.320 --> 0:13:45.160 Chairman and chief executive officer of ogilvie H. He is 0:13:45.200 --> 0:13:48.520 here in our eleven three oh studio. So tomorrow is 0:13:48.520 --> 0:13:53.400 a big day. You are rebranded, rebranding but also refounding 0:13:54.040 --> 0:13:58.079 this agency. Tell us what's happening exactly. Well, Tomorrow is 0:13:58.120 --> 0:14:02.520 really a milestone in the nearly thirty month journey that 0:14:02.559 --> 0:14:05.560 we've been going through to transform the company. Uh, we're 0:14:05.600 --> 0:14:08.480 nearly seventy years old, will be seventy in this coming September, 0:14:08.480 --> 0:14:10.839 since David Ogilvy founded the company in New York, and 0:14:12.360 --> 0:14:15.360 we're probably going through the biggest business transformation in our 0:14:15.400 --> 0:14:19.880 company's history. We're pulling down all the silos, all the 0:14:19.960 --> 0:14:23.800 specialist divisions that have been built up over years, and 0:14:23.840 --> 0:14:26.400 really trying to bring it all together and connect it 0:14:26.480 --> 0:14:31.320 as one company. Tomorrow is what we're calling our refounding 0:14:31.440 --> 0:14:35.920 affectionately and David's honor. He started the company as one brand, 0:14:35.960 --> 0:14:39.240 and so tomorrow we're reintroducing the brand to our fifteen 0:14:39.240 --> 0:14:43.080 thousand plus employees, all in the context of giving them 0:14:43.200 --> 0:14:47.160 greater clarity on really the founding purpose of of why 0:14:47.280 --> 0:14:50.080 Ogilvy exists, which we believe it's to make our clients 0:14:50.120 --> 0:14:55.200 brands matter in an incredibly chaotic, fast paced, changing world 0:14:55.240 --> 0:14:59.800 where technology and social media and so many other factors 0:14:59.800 --> 0:15:03.960 have change the way brands are built today. John, I 0:15:04.040 --> 0:15:08.640 remember the booklet that David Ogilvie would offer to all 0:15:08.720 --> 0:15:11.360 new employees. It was called what we Believe and how 0:15:11.400 --> 0:15:15.920 we behave, and he described Ogilvy as a teaching hospital. 0:15:16.360 --> 0:15:19.160 And I'm wondering if you can use your own experience 0:15:19.720 --> 0:15:24.720 of joining Ogilvy. Uh, you didn't even get out of college. 0:15:24.760 --> 0:15:29.600 I believe you were an intern and Bill Phillips took 0:15:29.680 --> 0:15:32.320 you on and you just war people down to accept 0:15:32.360 --> 0:15:34.600 You tell people a little bit of your story and 0:15:34.640 --> 0:15:38.360 how that kind of exemplifies this idea of what we 0:15:38.440 --> 0:15:41.520 believe in how we behave. Well, you're touching on exactly 0:15:41.680 --> 0:15:44.440 the motivation for why we want to do this refounding, 0:15:44.520 --> 0:15:47.240 because I do believe in my personal story it is 0:15:47.280 --> 0:15:50.240 a story of the brand Um. I was fortunate enough 0:15:50.280 --> 0:15:52.680 to have a family friend who works for David Ogilvie, 0:15:53.400 --> 0:15:56.280 and she um she was concerned that, as a sort 0:15:56.280 --> 0:15:59.320 of c student at the University of Southern California who 0:15:59.320 --> 0:16:02.280 spent more time with his friends and at parties, I 0:16:02.360 --> 0:16:04.880 might need a little kick in the butt to get 0:16:04.920 --> 0:16:08.160 my act together. And so she appealed to then uh 0:16:08.280 --> 0:16:10.240 president of Ogilvie and may theer in the u S 0:16:10.280 --> 0:16:12.680 Bill Phillips, to give me a summer job. So I 0:16:12.720 --> 0:16:15.880 showed up on the doorstep in June of nine seventy nine, 0:16:16.440 --> 0:16:19.520 with nothing more than a business card from Bill that said, 0:16:20.000 --> 0:16:22.720 give this guy a summer job and uh and and 0:16:22.760 --> 0:16:25.600 that's what happened. So I am a product of the 0:16:25.640 --> 0:16:29.800 system of a commitment to teach someone who knew almost 0:16:29.920 --> 0:16:35.360 nothing about either advertising or business or marketing UH, to 0:16:35.560 --> 0:16:38.320 help help bring out my kind of I guess natural 0:16:38.400 --> 0:16:41.360 inclination to work hard and and and learn from an 0:16:41.360 --> 0:16:44.720 amazing group of people. So the message is staying the same. 0:16:45.080 --> 0:16:48.680 The backdrop, though, has changed dramatically. In the past few 0:16:48.760 --> 0:16:51.880 years have been somewhat difficult for the advertising business and 0:16:51.880 --> 0:16:54.360 for ogilvie UM and I want you to talk a 0:16:54.400 --> 0:16:57.640 little bit about why. Well. One of the things that 0:16:58.080 --> 0:17:01.560 give us such conviction about the changes we're making and 0:17:02.320 --> 0:17:05.440 the motivation to to refound the brand, so to speak, 0:17:05.520 --> 0:17:09.879 is that we are seeing unprecedented change within our client organizations. 0:17:10.440 --> 0:17:14.040 They themselves and their industries are in a complete state 0:17:14.040 --> 0:17:18.040 of disruption, whether that is through new business models, new 0:17:18.119 --> 0:17:21.199 brands that have come onto the scene with none of 0:17:21.200 --> 0:17:25.920 the legacy challenges of of their cost structure, their innovation pipeline, 0:17:26.280 --> 0:17:29.960 their access to capital, and are really innovating in a 0:17:30.080 --> 0:17:33.359 much more dynamic, much faster way to the needs and 0:17:33.440 --> 0:17:36.120 interests of the the end consumer than we've ever seen, 0:17:36.280 --> 0:17:39.000 certainly that I've ever seen in my lifetime. And with 0:17:39.040 --> 0:17:42.120 that disruption has come a lot of pressure on these 0:17:42.119 --> 0:17:45.760 businesses to get their own cost structures in line, simplify 0:17:45.960 --> 0:17:48.160 and and get the complexity of out of their own 0:17:48.160 --> 0:17:51.920 business systems, and then think about brand building in a 0:17:52.000 --> 0:17:54.920 modern way, which is, how do you connect everything from 0:17:55.040 --> 0:17:58.040 your promise, your values, the point of view you have 0:17:58.080 --> 0:18:01.280 in the marketplace to the things that matter in terms 0:18:01.320 --> 0:18:03.520 of how do I buy your products and services by 0:18:03.520 --> 0:18:06.520 my mobile phone or how do I, you know, enjoy 0:18:06.960 --> 0:18:10.080 an experience that transforms the way I think about your 0:18:10.160 --> 0:18:13.240 value to me in my life. So every client we 0:18:13.240 --> 0:18:15.600 we have right now is going through this kind of 0:18:15.760 --> 0:18:19.560 set of changes. What's the biggest change in skills that 0:18:19.640 --> 0:18:22.040 employees at Ogilvie need to have in order to be 0:18:22.119 --> 0:18:25.520 successful today? We are training them in the spirit of 0:18:25.520 --> 0:18:31.040 teaching hospital to think holistically. We absolutely need specialist skills, 0:18:31.080 --> 0:18:34.000 be it in understanding the coding that goes behind the 0:18:34.040 --> 0:18:37.480 technology that serves a consumer through a mobile device or 0:18:37.600 --> 0:18:40.800 or or through UH through some other form of of 0:18:41.200 --> 0:18:44.199 digital experience, but we also need people to see the 0:18:44.200 --> 0:18:47.440 whole brand to understand that the trust that's built through 0:18:47.440 --> 0:18:51.000 employees and their belief in what they're selling and how 0:18:51.040 --> 0:18:54.239 they serve and what they promise to customers can be 0:18:54.280 --> 0:18:57.840 fulfilled by the institution of the clients themselves. And so 0:18:58.040 --> 0:19:02.400 we think of almost every audience reg later's employees and consumers, 0:19:02.480 --> 0:19:04.640 the partners that many of our clients are now doing 0:19:04.640 --> 0:19:08.160 business with. All of these audiences are vital. For those 0:19:08.160 --> 0:19:10.840 companies and brands that don't have a holistic view of 0:19:10.880 --> 0:19:13.439 it and can see how to connect the dots, we 0:19:13.520 --> 0:19:17.320 think those companies are going to suffer to either new 0:19:17.400 --> 0:19:21.040 brands or brands that transform faster, and to us, that's 0:19:21.080 --> 0:19:23.360 the future of of where this is all going from 0:19:23.359 --> 0:19:26.879 a brandom business perspective. Are there's some things that don't change. 0:19:26.880 --> 0:19:30.119 For example, Uh, I remember reading something about how you 0:19:30.160 --> 0:19:32.840 got promoted early on in your career, and it was 0:19:32.880 --> 0:19:35.880 about a breakfast buffet, and I'm wondering if you could 0:19:35.920 --> 0:19:38.240 just quickly tell that story and about how it doesn't 0:19:38.240 --> 0:19:41.520 matter what you do, but everything you do has to 0:19:41.600 --> 0:19:44.639 be exceptional to the point of trying to make that 0:19:44.760 --> 0:19:48.479 connection with the client no exactly. I mean, I um 0:19:48.720 --> 0:19:51.159 it was. It still befuddles me to some extent. But 0:19:51.560 --> 0:19:53.520 I used to work on the Mattel toys business. We 0:19:53.640 --> 0:19:57.480 used to make hundreds of toy commercials every year, primarily 0:19:57.560 --> 0:20:01.520 for showing at what was called the Wayfair to see 0:20:01.560 --> 0:20:04.520 which of the major retailers would accept a new toy 0:20:04.640 --> 0:20:07.880 and uh. We used to screen these rough cut commercials 0:20:07.920 --> 0:20:10.280 of these different toy commercials at seven in the morning 0:20:10.280 --> 0:20:11.800 in Los Angeles because it was the only way to 0:20:11.880 --> 0:20:15.760 clients could come see the films, give you comments, and 0:20:15.760 --> 0:20:18.840 then get back to their offices through the horrendous l 0:20:18.880 --> 0:20:22.119 A traffic. And so one morning, normally we would just 0:20:22.240 --> 0:20:25.200 put out some simple you know, bagels and orange jues 0:20:25.240 --> 0:20:26.919 and things, and I thought to myself, you know, this 0:20:26.960 --> 0:20:29.239 is kind of boring. Let's try and spice this up. 0:20:29.240 --> 0:20:31.800 So I went and bought fresh orange juice for everybody. 0:20:32.080 --> 0:20:36.840 I got this amazing array of of Danish and fruit 0:20:37.000 --> 0:20:40.840 and and everything, and the meeting went so well, I think, 0:20:40.880 --> 0:20:43.560 probably because some of this stuff put people in a 0:20:43.600 --> 0:20:46.960 better mood than they came in that my supervisor came 0:20:47.000 --> 0:20:48.399 to me a week later and said, you know, the 0:20:48.440 --> 0:20:50.760 way you handled yourself in that meeting was phenomenal. I 0:20:50.760 --> 0:20:54.080 didn't do anything but bring the catering. It. We think 0:20:54.080 --> 0:20:59.480 your account super our senior account executive material. Uh, congratulations. 0:20:59.720 --> 0:21:02.679 So but it was really just to your point. It 0:21:02.800 --> 0:21:05.960 was a foundation of go the extra make the extra 0:21:06.040 --> 0:21:09.679 effort and and and create a client experience that people 0:21:09.680 --> 0:21:13.720 remember and make sure that people eat well. Yeah, I'm 0:21:13.720 --> 0:21:16.399 just gonna say that I've learned throughout my career Pete, 0:21:16.400 --> 0:21:19.640 feed people well, good things happen. Thanks very much. John 0:21:19.840 --> 0:21:23.520 Seifert is the chairman and the chief executive of Ogilvy, 0:21:24.119 --> 0:21:27.800 their division of w p P. And congratulations and best 0:21:27.800 --> 0:21:31.879 wishes on your refounding. Uh, this is going to be 0:21:31.880 --> 0:21:48.760 an exceptional time in the world of appetizing in a 0:21:48.800 --> 0:21:53.159 world of mass production, one company remains committed to hand 0:21:53.560 --> 0:21:59.520 made items, specifically hand made beds and linen's And joining 0:21:59.600 --> 0:22:02.440 us now is Yan right. He is the executive chairman 0:22:02.560 --> 0:22:05.719 of Houstins and they are based in Sweden, and it's 0:22:05.760 --> 0:22:07.520 a pleasure to have him here in our eleven three 0:22:07.560 --> 0:22:10.000 y OHD studio. Yean, thank you very much for being here. 0:22:10.320 --> 0:22:12.679 Give people just a little a brief history of this 0:22:12.760 --> 0:22:16.960 is a fifth generation family owned business and you start. 0:22:17.040 --> 0:22:20.480 The business started by making saddles and now it makes 0:22:20.600 --> 0:22:25.200 mattresses as well as other items to help you sleep better. Yes, 0:22:25.600 --> 0:22:30.720 my grandfather's grandfather also master saddler, and he founded the 0:22:30.800 --> 0:22:35.280 company twenty two on March eighteen hundred fifty two. So 0:22:35.480 --> 0:22:38.880 we are on a mission to sorry people, to make 0:22:39.480 --> 0:22:43.840 people's lives better. And the focus have been on belts 0:22:43.880 --> 0:22:47.920 since the start and only on belts, Son and accessories 0:22:48.800 --> 0:22:54.760 hundred sounds since nineteen seventeen. So I was reading through 0:22:55.000 --> 0:22:58.560 your catalog and the mattresses can go from four thousand 0:22:58.560 --> 0:23:00.840 dollars up to more than a hundred and dollars depending 0:23:00.840 --> 0:23:04.080 on what you customize them. They are a luxury product 0:23:04.080 --> 0:23:09.119 made from natural ingredients and handcrafted. I'm trying to understand 0:23:09.160 --> 0:23:11.920 how the business has changed for you, because when I 0:23:11.960 --> 0:23:14.120 travel on the subway in New York City, I see 0:23:14.119 --> 0:23:18.199 a lot of advertisements for for Caspers or uh, you know, 0:23:18.520 --> 0:23:21.320 name your mattress shop. It seems like it has gotten 0:23:21.720 --> 0:23:24.960 more competitive and more crowded with companies that don't have 0:23:25.000 --> 0:23:28.840 the same kind of overhead. Well, it's a lot of 0:23:28.920 --> 0:23:32.840 crap out there in the jungle. The keys that the 0:23:32.880 --> 0:23:37.320 consumer are intelligence and they recognized they have a lack 0:23:37.359 --> 0:23:40.280 of sleep, they are sleep deprivated and so on. So 0:23:41.040 --> 0:23:44.760 they are looking for for some things that really changed 0:23:44.760 --> 0:23:50.240 that and what other product would be better for your health? 0:23:50.720 --> 0:23:54.119 What other product would be better for your beauty? And 0:23:54.400 --> 0:23:56.959 sleeping really really good in the Hastin's path, have you 0:23:57.040 --> 0:24:00.440 seen business expand substantially over the past few years. Yes, 0:24:00.560 --> 0:24:04.440 we are growing rapidly. We've been growing rapidly for almost 0:24:04.520 --> 0:24:08.480 forty years and right now we are growing pcent in 0:24:08.520 --> 0:24:14.880 the United States this year compared last year growth were 0:24:15.040 --> 0:24:19.760 We are are aiming for more than growth and we 0:24:19.840 --> 0:24:22.720 do that in ten of our top markets. How much 0:24:22.760 --> 0:24:25.879 how much does this sort of hinge on the population 0:24:25.920 --> 0:24:30.000 of wealthy individuals and how that's increased. Um, I don't know. 0:24:30.080 --> 0:24:35.560 Of course, they need to sleep, but everyone needs to sleep. 0:24:35.600 --> 0:24:40.040 So we are on a mission to reach any consumer 0:24:40.800 --> 0:24:45.240 that from four thousand dollars and upwards, anyone that prioritize 0:24:45.920 --> 0:24:49.119 to live better, to have a better life, be happier 0:24:50.119 --> 0:24:54.719 and look younger and sleep. But they are we are 0:24:54.760 --> 0:24:59.040