WEBVTT - Ukraine Rebuilding Even as Russian Aggression Continues 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.799 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all partnessing the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 Bloomberg Business Week on iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.200 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:31.639 YouTube search Bloomberg Global News. You know. As the Russian 0:00:31.640 --> 0:00:33.800 War in Ukraine continues on now in its seventh week, 0:00:33.840 --> 0:00:36.400 I couldn't help but being drawn back to the early 0:00:36.479 --> 0:00:38.840 March cover story of Bloomberg Business Week, one in which 0:00:39.000 --> 0:00:41.960 Bloomberg's Mark Champion wrote about Vladimir Putin and how after 0:00:42.000 --> 0:00:44.959 a quick victory did not seem likely, that his endgame 0:00:45.360 --> 0:00:47.559 seemed to be reducing Ukraine to rubble, and as we 0:00:47.640 --> 0:00:52.000 see the destruction that grows every day, that endgames seems inevitable. Meantime, 0:00:52.080 --> 0:00:55.960 Ukraine President Voladimir Zelensky on CBS is sixty minutes last 0:00:56.000 --> 0:00:58.720 night about what NATO nations have done so far for 0:00:58.840 --> 0:01:02.760 his country. I just want to say that for your 0:01:02.800 --> 0:01:07.280 support and support first of all for people, because all 0:01:07.319 --> 0:01:11.640 the people, all the nations, first of all, they push 0:01:11.959 --> 0:01:15.679 their leaders. It's not about it's not only about your country, 0:01:16.000 --> 0:01:21.240 it's about our country, it's about all the world. That 0:01:21.440 --> 0:01:25.680 was President of Ukraine Voladimir Zelinsky on sixty minutes yesterday. 0:01:25.959 --> 0:01:28.080 Let's get now to a crucial voice. You've heard her 0:01:28.080 --> 0:01:30.840 on our air waves before. We're talking about Natalie Darresco. 0:01:31.080 --> 0:01:33.640 She's former Ukraine finance minister. She served in that position 0:01:33.680 --> 0:01:37.360 from She was born here in the US, but she 0:01:37.880 --> 0:01:40.920 spent her after her twenties. After she was educated here, 0:01:41.480 --> 0:01:43.560 she moved back to Ukraine and lived there. She's now 0:01:43.560 --> 0:01:46.440 executive director of the Financial Oversight and Management Board for 0:01:46.560 --> 0:01:48.760 Puerto Rico. She joins us now on the phone from 0:01:48.800 --> 0:01:50.800 San Juan, Puerto Rico. Natalie, good to have you back 0:01:50.840 --> 0:01:53.400 with us. How are you, Thank you, TIV, thank you 0:01:53.440 --> 0:01:55.480 for having me. Hey. Well, you know it's been a 0:01:55.480 --> 0:01:56.920 few weeks since we've gotten to speak with you, and 0:01:56.960 --> 0:01:59.120 I just want to start with getting an understanding of 0:01:59.160 --> 0:02:02.240 what you're hearing for your friends who are on the 0:02:02.240 --> 0:02:04.160 ground in Ukraine. You spent so many years of your 0:02:04.160 --> 0:02:07.800 life there and you, you know, presumably continue to talk 0:02:07.800 --> 0:02:10.560 to folks there. What are you hearing? Absolutely, I have 0:02:10.639 --> 0:02:13.480 in touch all the time. I guess it's really important 0:02:13.520 --> 0:02:15.720 to note that with all of the news of the 0:02:15.760 --> 0:02:20.040 horrendous atrocities um and the impending what appears to be 0:02:20.120 --> 0:02:23.840 massive invasion in the East, Ukrainians are actually, you know, 0:02:24.400 --> 0:02:28.080 facing this with immense courage, and that courage is leading 0:02:28.120 --> 0:02:30.840 them to start rebuilding. So even in the towns of 0:02:31.200 --> 0:02:35.320 Ping and Buscha that have been destroyed recently, the work 0:02:35.360 --> 0:02:38.400 has begun already to remove debris, to build back the 0:02:38.440 --> 0:02:42.239 bridge that have been blown up, to restore, rebuild electricity, 0:02:42.280 --> 0:02:46.600 heat and water. The government is focused on getting planting started. 0:02:46.760 --> 0:02:49.920 This is the spring planting season for agriculture. As you know, 0:02:50.040 --> 0:02:52.960 Ukraine is one of the largest agricultural exporters in the world, 0:02:53.600 --> 0:02:57.560 and businesses are moving facilities to western Ukraine where the 0:02:57.600 --> 0:03:00.400 war has not had as much of an impact, and 0:03:00.720 --> 0:03:03.760 restarting manufacturing to the extent that they can. And so 0:03:03.800 --> 0:03:07.560 what you're seeing is this kind of response to the 0:03:07.600 --> 0:03:11.640 horrors and the tragedies with even greater courage and intent 0:03:12.680 --> 0:03:15.280 to we build, we knew and normalize, and so I 0:03:15.320 --> 0:03:21.560 think it's it's it's an amazing combination of human dignity encourage. 0:03:22.240 --> 0:03:24.480 It's like hard to even get your head around that, right. 0:03:25.120 --> 0:03:27.320 I'm kind of in awe right that they're planning for 0:03:27.360 --> 0:03:30.520 the future and you know, moving forward, um, with so 0:03:30.560 --> 0:03:33.880 many questions to yet to be answered. Natalie, I know 0:03:34.000 --> 0:03:38.640 your focus is, you know, economic and financial situations, but 0:03:38.720 --> 0:03:42.920 obviously all of that weaves into politics, military, economy, it's 0:03:42.960 --> 0:03:47.280 all interwoven. Having said that, how do you see this 0:03:47.360 --> 0:03:53.080 situation overall? Is the West at war with Russia already? Well, 0:03:53.120 --> 0:03:55.960 I think the important thing, Carol, is that Putin is 0:03:56.000 --> 0:03:59.160 that war with the West already, and he always has been, 0:03:59.200 --> 0:04:01.480 and he's been very here about it. And so whether 0:04:01.600 --> 0:04:05.040 or not any of our Western allies believe that they 0:04:05.080 --> 0:04:07.440 are or not, the fact is that Putin believes he is, 0:04:07.480 --> 0:04:09.800 and so we are all in this together. This is 0:04:09.840 --> 0:04:13.320 about his attempt is not only to destroy Ukraine, which 0:04:13.360 --> 0:04:16.719 is clear a genocide of the Ukrainian people, which he's 0:04:16.760 --> 0:04:20.039 had published in articles, but it's also about destroying the 0:04:20.040 --> 0:04:23.640 liberal world order. The democratic world that we all take 0:04:23.680 --> 0:04:26.760 for granted every day, and that enables us to live 0:04:26.920 --> 0:04:30.200 in in peace and freedom. And so we are fighting 0:04:30.279 --> 0:04:34.680 an autocrat who wishes to destroy our system. And that's 0:04:34.720 --> 0:04:36.920 why that's why you know, in the end, it really 0:04:37.000 --> 0:04:38.839 is up to all of the allies, up to the 0:04:38.880 --> 0:04:42.440 democratic nations of the world, to support Ukraine in this battle, 0:04:42.480 --> 0:04:45.560 because Ukraine has to prevail. If Ukraine does not prevail, 0:04:45.640 --> 0:04:48.160 we as a democratic world do not prevail. Well, that's 0:04:48.160 --> 0:04:49.840 what I wanted to ask you. And I was listening 0:04:49.839 --> 0:04:52.520 to the Ukrainian president on sixty minutes last night, and 0:04:52.560 --> 0:04:56.560 I'm just is there he can't give in on anything, 0:04:56.640 --> 0:04:59.280 Like I'm thinking if there are talks or peace talks, 0:05:00.640 --> 0:05:03.560 they've already given in right Ukraine. You were there with 0:05:03.800 --> 0:05:08.000 Crimea and the Carimean peninsula. So at this point, can 0:05:08.040 --> 0:05:10.720 the Ukrainian presidents say, yep, I'm willing to give up 0:05:10.760 --> 0:05:14.400 this or if he does, is that a loss for 0:05:14.480 --> 0:05:17.080 the West overall? And and then it just means we 0:05:17.160 --> 0:05:20.440 will probably see President Putin come back in another aggressive 0:05:20.440 --> 0:05:24.040 mood sometime and move and sometime in the future. I 0:05:24.080 --> 0:05:27.359 think that that's exactly what's happened we all kind of said, 0:05:27.520 --> 0:05:31.440 just sit back. After he invaded an illegally annexed Crimea, 0:05:31.520 --> 0:05:34.640 then he invaded Dunbas. We held them to the line 0:05:34.680 --> 0:05:37.719 for eight years, but the war continued and it was 0:05:37.760 --> 0:05:43.599 not enough. Putin's aims are not territorial. Russia's an enormous country. 0:05:43.600 --> 0:05:46.760 It doesn't require any more territory for its population or 0:05:46.800 --> 0:05:51.560 for its economy. This is not about territory. And um, 0:05:51.600 --> 0:05:53.919 I think the course thing for Western countries and for 0:05:53.960 --> 0:05:57.680 all of us is to enable Ukraine to prevail. And 0:05:57.680 --> 0:05:59.679 and that you know, that doesn't mean that they shouldn't 0:05:59.680 --> 0:06:01.560 be different out of talks, but it means that we 0:06:01.560 --> 0:06:04.000 should focus on giving Ukraine the weapons they need to 0:06:04.080 --> 0:06:08.000 defeat and to prevail in this war, the sanctions to 0:06:08.040 --> 0:06:11.960 reduce uh the Russian ability to finance the war, getting 0:06:11.960 --> 0:06:15.400 our businesses to boycott the Russian economy and not finance 0:06:15.480 --> 0:06:19.599 this war against Ukraine. And then with that leverage, if 0:06:19.680 --> 0:06:23.480 in with that leverage, when they're prevailing, talks can take 0:06:23.480 --> 0:06:26.359 place and something can be achieved in those diplomatic talks. 0:06:26.360 --> 0:06:30.320 So be it piece is always welcome, but the first 0:06:30.360 --> 0:06:32.640 thing to focus on is not the talks and the 0:06:32.680 --> 0:06:34.560 outcome of the talks. The first thing needs to focus 0:06:34.560 --> 0:06:39.800 on getting Ukraine strong enough to prevail with weapons, sanctions 0:06:39.839 --> 0:06:43.240 and boycott and then uh and then hoping that that 0:06:43.480 --> 0:06:47.760 enables talks to be successful. Natalie Darresco stand stand by, 0:06:47.800 --> 0:06:49.359 because we're gonna come back with you. We're gonna do 0:06:49.400 --> 0:06:51.039 some news and then we're gonna come back with the 0:06:51.080 --> 0:06:55.000 former Ukraine finance minister. She served in that role from sixteen. 0:06:55.040 --> 0:06:58.160 She's executive director of the Financial Oversight and Management Board 0:06:58.160 --> 0:07:00.560 for Puerto Rico. Joining us from San Juan in Puerto Rico. 0:07:00.600 --> 0:07:04.159 We're talking Natalie Darresco. Yeah, curious to as the Austrian 0:07:04.200 --> 0:07:07.479 chancellor meeting with President Putin, who are the global leaders 0:07:07.520 --> 0:07:10.360 that he might listen to in this situation. This is Bloomberg. 0:07:11.400 --> 0:07:15.000 You're listening to Bloomberg Business Week with Carol Masser and 0:07:15.080 --> 0:07:19.280 Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. All right, 0:07:19.320 --> 0:07:20.880 want to get back to our guest with us is 0:07:20.960 --> 0:07:23.800 Natalie Jarresco, former Ukraine Minister of Finance. That was from 0:07:24.600 --> 0:07:27.480 twenties sixteen. As we remind you, during that initial Russian 0:07:27.480 --> 0:07:31.040 invasion and occupation of Ukraine. She's also the executive director 0:07:31.040 --> 0:07:33.760 of the Financial Oversight and Management Board for Puerto Rico. 0:07:34.200 --> 0:07:36.280 And you might recall we mention this too, that she 0:07:36.360 --> 0:07:39.200 was the subject of a Bloomberg Business Week story back 0:07:39.240 --> 0:07:42.360 in It was entitled the American Woman who stands between 0:07:42.400 --> 0:07:45.080 Putin and Ukraine. She's still with us on the phone 0:07:45.320 --> 0:07:48.640 from San Juan, Puerto Rico. Hey, Natalie, does anybody anymore 0:07:48.800 --> 0:07:54.640 stand between the world and Vladimir Putin? Well, Carol, what's 0:07:54.640 --> 0:07:58.120 a good question, Um, does anyone standing between? I think 0:07:58.120 --> 0:08:00.560 that are those who are trying not to choose, and 0:08:00.600 --> 0:08:02.720 I think that it's it's it's quite sad if you 0:08:02.720 --> 0:08:04.880 look at a country like India, one of the largest 0:08:04.880 --> 0:08:09.000 greatest democracies in the world. Um, they're abstaining on critical 0:08:09.080 --> 0:08:13.920 UN votes, and they are continuing to trade with Russia. 0:08:13.960 --> 0:08:16.720 They're continuing to buy Russian oil, They're continuing to avoid 0:08:16.760 --> 0:08:20.200 applying any sanctions. I think closer to home, to be 0:08:20.240 --> 0:08:23.640 frank with you, I'm disappointed that so many companies, so 0:08:23.680 --> 0:08:26.880 many American companies, companies like City and Mars and Coke 0:08:26.920 --> 0:08:31.080 Industries refused to boycott the Russian market, continue to make 0:08:31.520 --> 0:08:34.720 announcements that they feel they have a need to continue 0:08:35.000 --> 0:08:37.280 serving the Russian people in the Russian market at a 0:08:37.320 --> 0:08:40.240 time when their tax revenues are going directly into financing 0:08:40.240 --> 0:08:43.280 this war. And I think that it's it's it's harmful, 0:08:43.360 --> 0:08:46.680 it's pitiful, especially when US taxpayers are being asked to 0:08:46.840 --> 0:08:50.599 contribute to fighting the war and defending Natalie. Do you 0:08:50.640 --> 0:08:53.760 think the sanctions work? And I asked that looking at 0:08:54.040 --> 0:08:55.680 the data we got a couple of weeks ago that 0:08:55.800 --> 0:09:02.640 show how high Putin's approval rating is now more in 0:09:02.679 --> 0:09:05.360 a recent poll, do the sanctions seemed to be working? 0:09:06.720 --> 0:09:08.679 I think the sanctions are working, but we don't have 0:09:08.840 --> 0:09:12.280 enough of them. So the sanctions worked to crimp the 0:09:12.280 --> 0:09:16.280 financial system. Uh, the problem is that we haven't done enough, 0:09:16.360 --> 0:09:18.959 and so we've We've sanctioned a handful of banks. We've 0:09:19.000 --> 0:09:21.600 removed a handful of the banks off the swift system, 0:09:21.720 --> 0:09:24.280 but not all three hundred. I'm of the belief that 0:09:24.320 --> 0:09:26.600 every day counts and we need to do much broader, 0:09:26.679 --> 0:09:30.079 much deeper sanctions. I think it's important the export controls 0:09:30.080 --> 0:09:33.440 are working. You're seeing that in the defense industry in Russia. 0:09:33.800 --> 0:09:36.680 Some um, some items they're not being able to be 0:09:36.720 --> 0:09:39.520 manufactured anymore because they don't have the imported parts. So 0:09:39.640 --> 0:09:42.320 over time some of the sanctions will work. I think 0:09:42.320 --> 0:09:44.440 the challenge is that it's not working fast enough, and 0:09:44.640 --> 0:09:49.800 for for Ukrainians every day thousands of lives and immense destruction. 0:09:50.120 --> 0:09:52.480 So there's much more we can do in sanctions, not 0:09:52.559 --> 0:09:56.560 just in the banking sector, but clearly in the energy sector, 0:09:56.640 --> 0:09:58.840 and that has a lot to do with europe Um 0:09:58.880 --> 0:10:01.880 purchasing oil and gas. US europe purchasing oil and gas 0:10:02.200 --> 0:10:05.319 is the single greatest financing tool of Russia and until 0:10:05.400 --> 0:10:08.600 that ceases, that that that money continues to be used 0:10:08.640 --> 0:10:11.040 to keep the Russian economy alive. I mentioned that the 0:10:11.040 --> 0:10:14.280 Austria Chancellor is meeting with Vladimir Putin. Who if any 0:10:14.280 --> 0:10:16.160 one or of of global leaders that are out there 0:10:16.520 --> 0:10:22.199 does have sway with Vladimir Putin, you know, I haven't. 0:10:23.160 --> 0:10:26.040 I haven't seen anyone to have that kind of sway. 0:10:26.120 --> 0:10:29.480 I'm always hopeful every conversation, uh, you know, has a 0:10:29.520 --> 0:10:33.800 brain of hope. I think President Makhan has faced uh 0:10:33.880 --> 0:10:37.640 you know, had multiple conversations, a long conversations and got nowhere, 0:10:38.000 --> 0:10:40.320 not even in the most basic attempts to establish a 0:10:40.360 --> 0:10:43.800 humanitarian corridor out of Maryupo, a city in the southeast 0:10:43.840 --> 0:10:47.200 of Ukraine that has been absolutely destroyed and where people 0:10:47.200 --> 0:10:51.720 are unable to leave safely. UM. So I don't believe 0:10:52.320 --> 0:10:55.680 that that the Austrian Chancellor will have a greater effect. 0:10:56.240 --> 0:10:59.040 It doesn't mean you shouldn't try. Everyone's try, But I 0:10:59.040 --> 0:11:02.480 don't believe that those conversations are timely right now, in 0:11:02.520 --> 0:11:06.760 that Putin is not feeling the pressure yet of the sanctions. 0:11:06.760 --> 0:11:09.440 He's not yet feeling the pressure that he needs to 0:11:09.480 --> 0:11:12.400 feel in order to take this conversation seriously, What about 0:11:13.080 --> 0:11:17.559 um President of China Modi of India. Could they have 0:11:17.600 --> 0:11:21.080 some sway? Should they have some sway? I would guess 0:11:21.080 --> 0:11:23.240 the president she had, given the close friendship that he 0:11:23.400 --> 0:11:27.800 and Putin apparently have, UH, potentially could have that type 0:11:27.800 --> 0:11:30.040 of effect. And I would hope that the Chinese over 0:11:30.080 --> 0:11:32.959 time start to see that although they've been more or 0:11:33.000 --> 0:11:36.040 less supportive of of Putin in this war, that this 0:11:36.120 --> 0:11:38.560 is not going to help the Chinese, and that now 0:11:38.600 --> 0:11:42.880 the global economy and the unity that the Western democracies 0:11:42.920 --> 0:11:47.080 have shown is something that I don't think they all expected. Uh. 0:11:47.120 --> 0:11:49.320 And I don't believe that this continued war is good 0:11:49.320 --> 0:11:52.000 for the global economy. It's certainly not good for food prices. 0:11:52.559 --> 0:11:55.160 Uh see, it's certainly not good for steel prices, It's 0:11:55.200 --> 0:11:57.920 not good for a variety of things that both the 0:11:58.040 --> 0:12:01.440 Chinese and the Indians US should be looking forward and 0:12:01.679 --> 0:12:04.760 understanding that the cost, the oupen global cost of this 0:12:04.920 --> 0:12:08.000 war is going to be great for them, not only 0:12:08.040 --> 0:12:10.640 for Ukraine. Natalie, we only have thirty seconds left. But 0:12:10.640 --> 0:12:12.800 about six weeks ago you joined us, and you were 0:12:12.800 --> 0:12:15.760 optimistic when a lot of people were pessimistic about the 0:12:16.480 --> 0:12:20.360 Ukrainians defending Kiev. What's the conversation that we're having six 0:12:20.360 --> 0:12:25.880 weeks from now. Uh, definitely optimistic that Ukraine encourage fighting 0:12:26.440 --> 0:12:31.920 and Ukrainian forces will prevail. The unfortunate thing is is 0:12:31.920 --> 0:12:33.560 what the cost will be of that prevailing. But the 0:12:33.600 --> 0:12:36.760 Ukrainian people are fighting for their very existence and there 0:12:36.880 --> 0:12:41.839 is no other route. Thank you so much, Natalie for 0:12:41.840 --> 0:12:44.840 for joining us. And uh, certainly what you are seeing 0:12:44.960 --> 0:12:47.120 on the ground, what you're hearing. I think it's remarkable 0:12:47.200 --> 0:12:49.560 that they're planting. We've talked about, you know, the importance 0:12:49.600 --> 0:12:52.280 to the grain market right and feeding the world, and 0:12:52.280 --> 0:12:54.320 that's the important part of their economy and interesting to 0:12:54.320 --> 0:12:56.280 see to him them kind of moving forward there on that. 0:12:56.360 --> 0:12:57.920 You know, I encourage everyone to go back and read 0:12:57.920 --> 0:13:01.720 that cover story that Juan Natalie Duresco just learning so 0:13:01.800 --> 0:13:04.439 much about what she's done in Ukraine and her background, 0:13:04.720 --> 0:13:07.320 really gets a good understanding of what her role was 0:13:07.360 --> 0:13:12.080 today too. This is Bloomberg Business Week with Carol Messer 0:13:12.280 --> 0:13:16.480 and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. I 0:13:16.480 --> 0:13:18.800 want to get to today's Bloomberg Big Take. It's a 0:13:18.840 --> 0:13:21.480 story about how, after billions of dollars being spent in 0:13:21.520 --> 0:13:24.640 a decade of time, going by the Amazon drone delivery 0:13:24.640 --> 0:13:27.120 programmed him still not off the ground. Yeah. I couldn't 0:13:27.160 --> 0:13:30.160 put this one down. It's by Spencer Sober, and it 0:13:30.240 --> 0:13:32.000 is I read it last night. It came out yesterday 0:13:32.000 --> 0:13:33.760 at five pm, and I read it. You know, I 0:13:33.800 --> 0:13:35.880 saved it for last night and I stayed up until 0:13:35.880 --> 0:13:38.520 the end. Uh and Matt Day wrote this story. Spencer 0:13:38.559 --> 0:13:41.560 Sober is technology and e commerce reporter at a Bloomberg News. 0:13:41.600 --> 0:13:43.840 He joins us now on the phone from Seattle. Spencer, 0:13:43.840 --> 0:13:45.760 I actually remember it like it was yesterday. It was 0:13:45.880 --> 0:13:48.719 night before Cyber Monday. It was the Sunday after Thanksgiving, 0:13:50.400 --> 0:13:53.160 Jeff Bezos goes on sixty minutes he does an interview 0:13:53.400 --> 0:13:57.160 with Charlie Rose and he says, within the next few years, 0:13:57.200 --> 0:13:59.479 we are going to be able to get drone packages 0:13:59.640 --> 0:14:02.560 deliver via drones. Yet, Spencer, here we are and it 0:14:02.600 --> 0:14:12.120 hasn't happened yet. Yeah, you know what happened? All right? Well? Yeah, 0:14:12.160 --> 0:14:14.560 I mean, they they spent a lot of money, um, 0:14:15.080 --> 0:14:18.040 and a big part of the problem is that they 0:14:18.200 --> 0:14:20.560 they tried to think of the ideal use case, which 0:14:20.560 --> 0:14:23.440 would be a drone that can go about fifteen miles 0:14:23.440 --> 0:14:26.600 around trip and carry a payload of about five pounds. 0:14:27.280 --> 0:14:30.040 So right now they've got a drone design that's about 0:14:30.080 --> 0:14:33.360 eighty five pounds, which is huge compared to some of 0:14:33.400 --> 0:14:37.000 the rival things out there that are significantly smaller. But 0:14:37.080 --> 0:14:41.040 they needed that to pack a sufficient battery and sufficient 0:14:41.480 --> 0:14:43.520 you know, with sufficient power to fly that distance and 0:14:43.560 --> 0:14:47.520 carry that payload. And what's happened is that they had 0:14:47.600 --> 0:14:50.200 to go with this tricky design that kind of fluctuates 0:14:50.240 --> 0:14:52.600 between going up and down like a helicopter and going 0:14:52.680 --> 0:14:55.120 forward like an airplane, and they just had a really 0:14:55.120 --> 0:14:58.160 difficult time nailing that design. And one of the things 0:14:58.160 --> 0:15:00.920 we highlighted in the story was a really bad brush 0:15:01.000 --> 0:15:04.720 fire last summer that happened after one of these things malfunctioned. 0:15:04.720 --> 0:15:07.720 And then they're supposed to be different safety mechanisms that 0:15:07.840 --> 0:15:11.120 kick in after a motor failure. But this thing has 0:15:11.800 --> 0:15:15.360 six propellers on it, and one of the motors conked 0:15:15.400 --> 0:15:18.960 out and it couldn't recuperate it recuperate from that, and it, 0:15:19.240 --> 0:15:22.560 you know, carremed a hundred and sixty feet down from 0:15:22.560 --> 0:15:25.400 the sky and crashed into the ground and ignited this 0:15:25.440 --> 0:15:27.480 big brush fire. And this is at a time when 0:15:27.480 --> 0:15:30.280 Amazon is trying to prove to the Federal Aviation Administration 0:15:30.360 --> 0:15:33.400 that these things are safe. So, um, yeah, there's still 0:15:33.720 --> 0:15:35.840 still a long way off, a long way off. And 0:15:35.840 --> 0:15:38.400 we know there's a lot of competition because Amazon is 0:15:38.440 --> 0:15:40.160 not the only one looking to put drones into the sky. 0:15:40.200 --> 0:15:42.480 Let's bring in Bloomberg Business Week editor Joe Webber here 0:15:42.520 --> 0:15:45.960 in our interactive broker studio. Uh, what's up to out 0:15:45.960 --> 0:15:48.640 for you here? Well, you know, I just think it's 0:15:48.440 --> 0:15:51.920 it is one of those great corporate dramas that you 0:15:51.960 --> 0:15:53.840 have to be curious about because it's Amazon, and like 0:15:53.920 --> 0:15:58.120 anything happening inside the Amazon Uh, you know, executive suites 0:15:58.120 --> 0:16:04.120 is interesting. But that competition that Carol mentioned Spencer, who 0:16:04.280 --> 0:16:07.360 who are the other competitors who are attempting to crack 0:16:07.440 --> 0:16:10.960 this or who already have even Well, you have a 0:16:10.960 --> 0:16:15.200 ton of startups. Uh, you also have Google, you know 0:16:15.280 --> 0:16:19.240 Google's wing Um, you have ups Walmart. There's a lot 0:16:19.280 --> 0:16:23.240 of deepocketive rivals poking at this and and in fairness 0:16:23.280 --> 0:16:25.680 to Amazon, we have to look at the capabilities. So 0:16:26.160 --> 0:16:28.520 some of the startups and things are looking at maybe 0:16:28.560 --> 0:16:32.400 like a a function where it's on a hospital campus 0:16:32.480 --> 0:16:35.760 or a corporate campus or a college campus, you know, 0:16:35.800 --> 0:16:39.680 where there might be less risk of going over um, 0:16:39.720 --> 0:16:43.840 you know, uninformed participants where which would happen in more 0:16:43.880 --> 0:16:46.120 of a public setting. But there's just a lot of 0:16:46.120 --> 0:16:49.000 people looking at at the potential use cases. And what 0:16:49.080 --> 0:16:51.480 Amazon is doing is being the most ambitious and saying 0:16:51.920 --> 0:16:54.000 we want to be able to deliver as many people 0:16:54.160 --> 0:16:57.800 using this technology as possible and deliver the widest variety 0:16:57.840 --> 0:17:01.920 of products as possible. So how does the f feel 0:17:01.920 --> 0:17:07.280 about all this? Well, they haven't commented specifically on what's 0:17:07.280 --> 0:17:10.800 happened with Amazon. They certainly had some reports and what 0:17:10.960 --> 0:17:14.480 was telling was the in the brushwire crash. They did 0:17:14.560 --> 0:17:18.320 question the airworthiness of this, of this vehicle that Amazon's 0:17:18.320 --> 0:17:23.000 put together, this pound um drone with with six propellers, 0:17:23.080 --> 0:17:27.560 because because so many things failed. You know, you generally 0:17:27.880 --> 0:17:31.840 planes are designed to be able to still maneuver after 0:17:31.920 --> 0:17:35.919 something fails and still safely land after something fails, and 0:17:36.000 --> 0:17:38.320 this thing was just a complete breakdown of all of 0:17:38.320 --> 0:17:41.000 those all of those systems, which was alarming to the 0:17:41.040 --> 0:17:43.400 f a A. And so that is a big setback 0:17:43.440 --> 0:17:46.680 because basically the the f a A, they they're learning 0:17:46.680 --> 0:17:48.879 from industry right now. They're looking at all the different 0:17:48.880 --> 0:17:53.560 folks that are conducting tests, and they're assessing the safetiness 0:17:53.680 --> 0:17:57.480 of all of the different vehicles and and as they're assured, 0:17:57.520 --> 0:18:00.800 then they'll gradually let these things be tested in more 0:18:00.880 --> 0:18:04.399 populous areas. But as it stands, Amazon still relegated to 0:18:04.640 --> 0:18:06.800 UH to the boonies. You know, it's doing tests out 0:18:06.840 --> 0:18:10.600 in eastern Oregon where you know, which is largely agricultural 0:18:10.640 --> 0:18:13.000 areas surrounding this this airport in a in a very 0:18:13.000 --> 0:18:17.399 sterile environment. What did you learn about Amazon's commitment to 0:18:17.480 --> 0:18:21.440 this moving forward? Because the business opportunity spencer, as you write, 0:18:21.560 --> 0:18:24.719 is absolutely huge. What it could do is essentially eliminate 0:18:24.760 --> 0:18:31.240 the need for paying delivery drivers and get consumers getting 0:18:31.280 --> 0:18:34.480 their their packages within thirty minutes or less in much 0:18:34.480 --> 0:18:38.720 of the country. Yeah, I mean that's the big commitment 0:18:38.840 --> 0:18:42.320 is uh. Bezos in particular has always been after this 0:18:42.480 --> 0:18:46.040 notion of making Amazon is as convenient as a quick 0:18:46.080 --> 0:18:49.560 trip to the store. And depending on where you live it, uh, 0:18:49.920 --> 0:18:52.600 it still doesn't meet that. You know, I I live 0:18:52.600 --> 0:18:55.880 in the suburbs of Seattle, and I've got a Target, 0:18:55.920 --> 0:18:58.359 and I've actually got two Targets and two Walmarts in 0:18:58.400 --> 0:19:01.880 a costco, all within a fifteen and drive, you know, so, 0:19:01.880 --> 0:19:05.080 so ordering on Amazon is still taking longer to get 0:19:05.080 --> 0:19:07.040 that item if I can find it at a store nearby. 0:19:07.119 --> 0:19:10.159 This is the answer to that. And uh, you know, 0:19:10.160 --> 0:19:12.399 if you can get it down to down to thirty minutes. 0:19:12.720 --> 0:19:16.439 But again it's a question of, um, how broadly it 0:19:16.480 --> 0:19:19.720 can be deploted, deployed, because the only thing that justifies 0:19:19.720 --> 0:19:22.560 this investment, it's not a worthwhile investment if you can 0:19:22.880 --> 0:19:25.040 deliver something to a farmer here and there. You know, 0:19:25.080 --> 0:19:28.000 you need to be able to deploy this in densely 0:19:28.080 --> 0:19:31.919 populated suburban areas and potentially even cities, and that's the 0:19:31.920 --> 0:19:35.879 only way it makes sense. And so that's the uh, 0:19:35.960 --> 0:19:38.560 you know, the big question right now is will that 0:19:38.640 --> 0:19:42.959 ever happen? Spencer, You guys UM did an investigation thorough 0:19:42.960 --> 0:19:46.639 internal documents, government reports. What was the takeaway? Do you 0:19:46.720 --> 0:19:49.800 feel from the conversations and the stuff that you read 0:19:50.000 --> 0:19:53.520 that you do feel like Amazon is valuing maybe production 0:19:53.560 --> 0:19:57.560 over safety here. Well, that's the feeling of many of 0:19:57.600 --> 0:20:00.000 the people who are on the front lines doing these tests. 0:20:00.000 --> 0:20:03.639 And that's where there's tension. Is there's people and in 0:20:03.840 --> 0:20:07.480 offices who earn the most money, um, and have goals 0:20:07.520 --> 0:20:10.600 that they have to make and they're you know, cracking 0:20:10.600 --> 0:20:12.199 the whip. And then there are people out on the 0:20:12.240 --> 0:20:14.720 front lines who are conducting these tests and seeing these 0:20:14.720 --> 0:20:18.120 things crashing down, and a lot of them are just saying, look, 0:20:18.200 --> 0:20:20.840 I would not want this thing flying over my house 0:20:20.960 --> 0:20:25.199 or my children, um. And and some concerns there and they, 0:20:25.240 --> 0:20:27.200 I mean, they it's the point they even like, we'll 0:20:27.520 --> 0:20:31.119 bring their vehicles and duck into their cars. Uh. You know, 0:20:31.160 --> 0:20:33.720 they have their their cars on standby just in case 0:20:33.760 --> 0:20:36.480 they need something to to take cover in. And they 0:20:36.680 --> 0:20:39.800 you know, those are alarming things for something that, um, 0:20:40.040 --> 0:20:43.120 they're trying to get more approval to do testing more 0:20:43.480 --> 0:20:45.840 closer to people and be on the line of site 0:20:46.000 --> 0:20:49.520 of of drone operators and that sort of thing. That it's, uh, 0:20:49.760 --> 0:20:52.480 it's still a long way off. What do you most 0:20:52.480 --> 0:20:58.359 look forward to getting delivered by drone really quickly? I nothing. 0:20:58.880 --> 0:21:03.080 I like to how eighty five pounds flying around me air. 0:21:03.119 --> 0:21:05.679 I'm a little a little caustious to Spencer. Thank you. 0:21:05.720 --> 0:21:08.600 Spencer Soaper, technology and e commerce reporter at Bloomberg News. 0:21:08.640 --> 0:21:10.280 Check out his stories of Bloomberg Big Take in our 0:21:10.320 --> 0:21:12.800 thanks to Jill Webber, editor of Bloomberg business Week. This 0:21:13.080 --> 0:21:18.040 is Bloomberg business Week. You're listening to Bloomberg Radio. You're 0:21:18.080 --> 0:21:22.040 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:21:22.119 --> 0:21:26.880 Quick Takes Tim Stinovic on Bloomberg Radio. So we've been 0:21:26.880 --> 0:21:29.399 watching shares of Tesla. Let me just bring them. Well, 0:21:29.400 --> 0:21:31.400 they were down pre market on this news you were. 0:21:31.600 --> 0:21:35.000 They're still down about four A few things. We had 0:21:35.200 --> 0:21:38.359 Tesla exporting just sixty cars produced at the shang Hi factory. 0:21:38.400 --> 0:21:40.439 That was in March, a record low, A strong domestic 0:21:40.440 --> 0:21:42.119 demands sucked up most of the output. And then, of 0:21:42.160 --> 0:21:43.840 course you have what is a most read on the 0:21:43.840 --> 0:21:46.159 Bloomberg about Elon muss saying thanks no thanks to a 0:21:46.160 --> 0:21:49.040 Twitter board seat, Yeah, rejecting that offer to a join 0:21:49.240 --> 0:21:50.959 the board in a surprise twice. So a week ago 0:21:51.040 --> 0:21:54.240 we were talking about him buying more than nine percent 0:21:54.320 --> 0:21:56.840 of outstanding shares of Twitter, and a week later a 0:21:56.840 --> 0:21:58.600