WEBVTT - 50-Plus Lessons From Smart People 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 Stanovik. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising 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 --> 0:00:19.640 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.239 download Bloomberg Business Week and 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 --> 0:00:31.720 YouTube search Bloomberg Global News. Things are opening up in 0:00:31.760 --> 0:00:33.559 some parts of the world. We're certainly seeing it in 0:00:33.560 --> 0:00:36.840 New York City. Uh UK Prime Minister Borg Johnson says 0:00:36.840 --> 0:00:39.200 he remains confident that England's lockdown will end on June 0:00:39.200 --> 0:00:41.159 twenty one. We're seeing things move forward. We know that 0:00:41.200 --> 0:00:43.320 there are still, though some tough situations in some of 0:00:43.320 --> 0:00:45.320 the emerging parts of the world. Yeah. According to Bloomberg 0:00:45.360 --> 0:00:47.120 Vaccine Tracker, at this rate of vaccination is going to 0:00:47.200 --> 0:00:49.200 take more than a year to get the entire world 0:00:49.280 --> 0:00:53.200 to a place that would be a comfortable level to immunologists. 0:00:53.320 --> 0:00:55.560 That's a lot immunity, all right, so let's get to it. 0:00:55.680 --> 0:00:57.840 Dr i los Bata Black with back with us. He's 0:00:57.880 --> 0:01:00.760 our clinical professor of medicine and why you land gown. 0:01:00.800 --> 0:01:04.040 He is on the phone in New York City. Dr 0:01:04.160 --> 0:01:07.399 lsbad are nice to have you here. We were thinking, God, 0:01:07.440 --> 0:01:09.400 there's so many things we want to ask you. But 0:01:09.720 --> 0:01:12.520 our David Weston caught up with Dr Anthony Fauci this 0:01:12.560 --> 0:01:16.240 week at the Bloomberg Business Week Live event and he's 0:01:16.319 --> 0:01:17.960 like kind of questioning whether or not we're going to 0:01:18.040 --> 0:01:23.280 need a booster. Hi, guys, Happy Friday. So just to 0:01:23.319 --> 0:01:26.800 clarify in terms of vaccines, because I certainly you know 0:01:26.840 --> 0:01:29.000 in the hospitals, we do have our little sticker that 0:01:29.040 --> 0:01:33.200 says we're vaccinated, so that's not a totally crazy idea. 0:01:33.280 --> 0:01:36.600 And just again to clarify if you're vaccinated, if you're 0:01:36.640 --> 0:01:40.360 with other people who are vaccinated. CDC says no mask 0:01:40.480 --> 0:01:44.600 requirement needed. Insider outside, there still are some businesses who 0:01:44.600 --> 0:01:49.040 will say you should wear a mask. Hospitals, healthcare facilities, 0:01:49.040 --> 0:01:53.680 so you know, respect where you're going, because people were 0:01:53.720 --> 0:01:57.280 individual businesses and facilities may say even with a vaccine 0:01:57.320 --> 0:01:59.559 we want you to wear a mask if you're vaccinated, 0:01:59.600 --> 0:02:02.640 if you're with someone who is not vaccinated, you know, 0:02:02.800 --> 0:02:05.680 the risk is lobano zero would be kind to our mask. 0:02:05.840 --> 0:02:09.959 Think of the Yankees, right, they were vaccinated as several 0:02:10.000 --> 0:02:13.880 players and administrators, yet they recovered virus from their nose 0:02:13.919 --> 0:02:17.320 and screening, so low risk but not zero. And certainly 0:02:17.320 --> 0:02:20.240 if you're not vaccinated, yes, please wear a mask and 0:02:20.360 --> 0:02:25.680 certainly think about getting vaccinated. Um In terms of boosters, Uh, yeah, 0:02:25.760 --> 0:02:28.640 you know, we measure antibodies and and certainly for six 0:02:28.720 --> 0:02:31.480 months or so, those antibodies are high, but they do 0:02:31.560 --> 0:02:35.320 seem to drop down, and we're not totally confident about 0:02:35.400 --> 0:02:38.760 T cell immunity, so it is likely at some point, 0:02:38.840 --> 0:02:42.360 maybe in the fall, we will need booster shots. And 0:02:42.400 --> 0:02:45.160 of course the question is will we need booster shots 0:02:45.200 --> 0:02:47.920 that are designed for some of the new variants that 0:02:47.960 --> 0:02:50.160 are coming out. Are you guys planning for boosters at 0:02:50.240 --> 0:02:54.840 n y Landown? No? No, at this point, we really are. 0:02:54.960 --> 0:02:59.640 Vaccines are distributed to us as everyone by the state. 0:03:00.080 --> 0:03:03.080 Those usually come in through the federal government, so they're 0:03:03.080 --> 0:03:05.600 distributed to the states and then given out to the 0:03:05.639 --> 0:03:09.720 individual facilities. Uh, will you go back and explain T 0:03:09.840 --> 0:03:12.760 cell immunity versus antibodies, because I don't think the late 0:03:12.840 --> 0:03:15.480 person has has a grasp of what that means. And 0:03:15.639 --> 0:03:21.920 I certainly don't mean Grol knows because you asked questions 0:03:21.960 --> 0:03:26.760 about this, so you know, for just in terms of 0:03:27.160 --> 0:03:30.400 booster shots, we have many vaccines. We give out mumps, 0:03:30.520 --> 0:03:35.680 Musles rebell a to kids, hepatitis, influenzas, shingles. You know, 0:03:35.880 --> 0:03:39.680 we we do. Over time can lose antibodies and therefore 0:03:39.760 --> 0:03:44.040 potentially be susceptible, so we do. We do give booster shots. 0:03:44.520 --> 0:03:47.280 T cells are a little harder to measure. T cells 0:03:47.280 --> 0:03:50.480 are the memory cells. They're the ones that when the 0:03:50.560 --> 0:03:55.080 B cells that make antibodies, and those antibodies, for example, 0:03:55.120 --> 0:03:57.560 like in the moderna vaccine or fights or you know, 0:03:57.560 --> 0:04:00.840 the messenge our name makes the spike protein to body says, hey, 0:04:00.960 --> 0:04:04.560 the spike protein we don't recognize. You form antibodies, and 0:04:04.640 --> 0:04:08.240 so when the real covid comes in, your body fights 0:04:08.240 --> 0:04:11.240 it off right away. Now, those antibodies are around for 0:04:11.280 --> 0:04:14.840 at least six months, we think, both with infection uh 0:04:14.880 --> 0:04:17.960 and and the vaccine, but over time they drop. We 0:04:18.040 --> 0:04:21.400 do think other cells called T cells or memory cells 0:04:21.400 --> 0:04:26.200 still will be able to UM call up those antibodies 0:04:26.240 --> 0:04:29.839 with a little bit of a delay. The actual memory cells, 0:04:29.839 --> 0:04:33.120 those T cells to say, the spike protein or covid 0:04:33.160 --> 0:04:36.240 are harder to measure. We do have some tests for that, 0:04:36.279 --> 0:04:40.000 they're not widely available UM and I think most people 0:04:40.240 --> 0:04:43.440 you know would say that's good, but we want to 0:04:43.440 --> 0:04:47.000 give a booster to make sure the antibody levels remain high. 0:04:47.040 --> 0:04:50.000 That's the most secure way. But I think we're learning 0:04:50.040 --> 0:04:53.479 that even if your antibodies drop, you'll probably be okay. 0:04:53.680 --> 0:04:55.279 We're all going to go to at some point like 0:04:55.320 --> 0:04:57.400 kind of the antibody tests, like to get an idea 0:04:57.400 --> 0:04:59.880 of kind of where we are, which that data collection 0:05:00.160 --> 0:05:03.520 help us in understanding more about the COVID vaccine. So 0:05:03.640 --> 0:05:07.040 we're not widely doing that now, that's you know, not inexpenses. 0:05:07.080 --> 0:05:11.200 People who have had a shot of antibodies. You can 0:05:11.520 --> 0:05:14.559 order a antibody to spike protein. I mean, if someone 0:05:14.640 --> 0:05:17.240 really they have some immune issue, they're not sure they 0:05:17.279 --> 0:05:20.520 really formed antibodies. We're not doing that because that's another 0:05:20.640 --> 0:05:23.520 layer of costs on top of things. When you do 0:05:23.680 --> 0:05:26.640 order a routine I g G. Covid antibody. It's usually 0:05:26.680 --> 0:05:29.320 for people who have had an infection, and those usually 0:05:29.360 --> 0:05:32.200 stay positive for six or eight months, but often they 0:05:32.240 --> 0:05:34.880 do drop down and patients are like frustrated, Oh my gosh, 0:05:34.880 --> 0:05:37.520 I went through COVID and now I don't have antibodies. 0:05:37.560 --> 0:05:40.440 They probably still have some protection the T cells, but 0:05:40.480 --> 0:05:43.920 we do encourage them to get vaccinated. Dr les better. 0:05:44.400 --> 0:05:46.200 What's a realistic way for us to think about, just 0:05:46.240 --> 0:05:49.240 in the last thirty seconds, how this is going to 0:05:49.240 --> 0:05:51.240 to play out over the next couple of years. Is 0:05:51.279 --> 0:05:53.960 it going to be just a yearly shot like we 0:05:54.000 --> 0:05:56.159 get with the flu shot and then that's that's it. 0:05:56.200 --> 0:05:59.440 We're gonna We're gonna do that. It may be. I 0:05:59.480 --> 0:06:01.760 think we have to see what happens in India and 0:06:01.800 --> 0:06:04.880 other parts of the world Brazil, if there are widespread 0:06:04.880 --> 0:06:08.719 infections as there are in low vaccination reach, much higher 0:06:08.839 --> 0:06:12.599 risk of mutant variants, and we may need to develop 0:06:12.720 --> 0:06:16.760 vaccines every year to those mutants if they can escape 0:06:16.760 --> 0:06:18.880 our normal vaccine. I think we have to wait and 0:06:18.960 --> 0:06:22.120 see what happens. But unfortunately it's a possibility. So why 0:06:22.120 --> 0:06:24.279 some people say there's really no going back to normal 0:06:24.360 --> 0:06:26.559 because the world has changed, Because of the virus. Doesn't 0:06:26.560 --> 0:06:28.799 mean things won't reopen up, but it's going to be different. 0:06:28.800 --> 0:06:30.200 Maybe we can just get it with the blue shot. 0:06:31.040 --> 0:06:33.000 Yeah right, I can. I can work with that. Dr 0:06:33.040 --> 0:06:35.120 and Les Pater have a good and safe weekend. He's 0:06:35.120 --> 0:06:37.839 clinical professor of Medicine at n y U Lango Medical Center. 0:06:37.920 --> 0:06:41.200 On the phone in New York City. This is Bloomberg 0:06:41.279 --> 0:06:44.960 Business Week with Carol Masser and Bloomberg Quick Takes Tim 0:06:45.000 --> 0:06:49.120 Stinovic on Bloomberg Radio. What a great week, a busy one. 0:06:49.240 --> 0:06:51.600 Another great new issue of the magazine, something Business Week 0:06:51.640 --> 0:06:54.080 has done before. The how To issue is back, bigger 0:06:54.120 --> 0:06:57.520 and better than before, because along with it the actual 0:06:57.560 --> 0:06:59.880 issue is a Bloomberg Live event called appropriately so the 0:07:00.000 --> 0:07:02.840 Bomberg Business Week, five days of virtual life programming, bringing 0:07:02.839 --> 0:07:06.440 the magazine to life a different vertical every day. Here 0:07:06.480 --> 0:07:08.640 with the recap Bloomberg Business weekend. To Joie Webber in 0:07:08.640 --> 0:07:11.680 our Bloomberg Interactive Broker Studio, You've had a really killer week. 0:07:12.320 --> 0:07:14.520 It was great, and you know, we tried to when 0:07:14.560 --> 0:07:16.680 we were thinking about this, we wanted to pair it 0:07:16.800 --> 0:07:20.520 with the magazine and basically bring the magazine to life 0:07:20.560 --> 0:07:22.760 in a way that we had never attempted to do before. 0:07:23.240 --> 0:07:27.120 So we took the sections of the magazine and basically 0:07:27.560 --> 0:07:31.080 um them days around them, and then there were little 0:07:31.120 --> 0:07:33.480 things like the back page, which we call the last 0:07:33.520 --> 0:07:35.920 thing became a thing that we did every day, and 0:07:35.960 --> 0:07:40.560 so it was just a fun experiment. And UM, We've 0:07:40.640 --> 0:07:43.080 got a lot of great guests. We had so much 0:07:43.560 --> 0:07:46.800 great content in the issue from UM, from the newsroom 0:07:46.840 --> 0:07:49.840 and outside of the newsroom even UM to do all 0:07:49.840 --> 0:07:52.640 these how two stories, So I'm very satisfied with how 0:07:52.680 --> 0:07:54.400 it all came together. Well, let's stick on the live 0:07:54.400 --> 0:07:56.600 event for for one second, because there was so much 0:07:56.640 --> 0:07:58.520 great stuff from that this week, Sol and I'm wondering 0:07:58.520 --> 0:08:00.520 when you think about the names who you want involved, 0:08:00.760 --> 0:08:03.120 how you come to those conclusions, how you design it, 0:08:03.160 --> 0:08:05.720 and how you think about those themes. Well, it really 0:08:05.760 --> 0:08:09.280 starts with the themes of the day, right. So we 0:08:09.320 --> 0:08:12.080 started with a business and industries day and we really 0:08:12.080 --> 0:08:14.400 wanted to delete into companies there, and then we we 0:08:14.480 --> 0:08:16.880 did tech and innovation. It was like, who would you 0:08:17.040 --> 0:08:18.840 want to talk to on a tech and innovation day? Well, 0:08:18.880 --> 0:08:20.880 Kathy would would be a great place to start, right, 0:08:20.960 --> 0:08:24.360 So UM, so we ended up having you know, all 0:08:24.360 --> 0:08:27.040 of these things kind of come together perfectly, and you know, 0:08:27.040 --> 0:08:29.440 it's just starts with us making a lot of asks 0:08:29.480 --> 0:08:31.480 of people. And you know, the other thing that that 0:08:31.720 --> 0:08:36.320 I think really made the event be especially special, can 0:08:36.360 --> 0:08:40.880 I say that especial? Is that it with this combination 0:08:41.000 --> 0:08:45.160 of live things, some of which were making news, with 0:08:45.440 --> 0:08:49.240 things that we had put prior energies into um and 0:08:49.320 --> 0:08:50.760 it's sort of a reflection of what we do in 0:08:50.800 --> 0:08:53.120 the magazine every week. We have the news stories and 0:08:53.160 --> 0:08:55.040 we have other things that we put that are still 0:08:55.040 --> 0:08:59.760 gonna make news, but they required some some future planning, 0:09:00.280 --> 0:09:02.600 and so you get this little marriage of the two. 0:09:02.679 --> 0:09:04.960 And I really liked how how that came together in 0:09:04.960 --> 0:09:07.120 a fent. I thought that that was specially and unique 0:09:07.120 --> 0:09:09.960 and uniquely business Week. Yeah, those some of those pieces 0:09:09.960 --> 0:09:11.680 were just so much fun. Whether it's making a movie 0:09:11.720 --> 0:09:15.440 franchise right, or making the best chicken parmi on or 0:09:15.640 --> 0:09:18.040 it was just they were and you know, just to 0:09:18.040 --> 0:09:21.200 give you a sense of how Justin lynn Win is 0:09:21.240 --> 0:09:23.920 what you mentioned there, and he's the director of The 0:09:24.400 --> 0:09:28.560 Forthcoming Fast and The Furious uh nine and he's directed 0:09:28.640 --> 0:09:32.280 more than a couple other ones. And that started Brett began, 0:09:32.320 --> 0:09:34.040 who is the story of the editor, who is the 0:09:34.040 --> 0:09:36.600 mastermind of the issue. He and I several months ago 0:09:36.840 --> 0:09:40.680 started having just weekly video calls with one another to 0:09:40.960 --> 0:09:43.720 kick ideas around, and we're talking like that wasn't like 0:09:43.800 --> 0:09:47.240 January or February we started this and I had just 0:09:47.559 --> 0:09:50.840 wrapped up watching um Star Wars stuff, I think, And 0:09:50.880 --> 0:09:53.760 I said, what would it be like to do how 0:09:53.800 --> 0:09:56.480 to make a franchise that doesn't suck? Right? Like that 0:09:56.960 --> 0:09:59.400 Star Wars stuff right now is so good, but we 0:09:59.480 --> 0:10:02.000 all can b that the movies were not as good. 0:10:02.559 --> 0:10:04.600 And I said, you know, let's go to Disney and 0:10:04.679 --> 0:10:07.240 let's ask them how do you make Star Wars not suck? 0:10:07.880 --> 0:10:11.839 And Disney politely declined in that last a couple of 0:10:12.160 --> 0:10:15.000 a couple of other asks, um and look fast and 0:10:15.000 --> 0:10:17.679 furious that it has such a cult following. I think 0:10:17.679 --> 0:10:20.280 that cult following thing is a thing that we infused 0:10:20.280 --> 0:10:23.520 throughout the issue as well. There's several other ideas that 0:10:23.600 --> 0:10:26.640 hit on that note, and it speaks to like, you 0:10:26.640 --> 0:10:28.680 you get a rabid fan base and you get to 0:10:28.679 --> 0:10:30.240 make that movie as long as you want to make 0:10:30.280 --> 0:10:33.680 that movie. Yeah, exactly, I love it. Joel, what were 0:10:33.720 --> 0:10:35.719 what were some of your favorite how twos in here? 0:10:35.760 --> 0:10:38.600 Like what did you come away with that that you're 0:10:38.600 --> 0:10:41.800 going to do differently? So there's there's an art to 0:10:41.920 --> 0:10:44.800 all the how two articles and that you want to 0:10:44.840 --> 0:10:48.320 surprise people and give them something actionable that they that 0:10:48.400 --> 0:10:52.720 they wouldn't have otherwise thought of. Um. And so there's 0:10:52.760 --> 0:10:56.520 there's some charming ones in here, um, how to build 0:10:56.520 --> 0:11:00.240 a business online business? You know, only fans. I'm not 0:11:00.240 --> 0:11:03.920 gonna be starting a business, not only fans. But it's 0:11:04.080 --> 0:11:06.760 most surprising thing was that people are starting businesses that 0:11:07.000 --> 0:11:09.160 have nothing to do with what you would think it 0:11:09.200 --> 0:11:12.600 would be about. A woman's basically has a whole new 0:11:12.679 --> 0:11:15.720 lease on life and she's transitioned out of personal training 0:11:15.720 --> 0:11:18.800 in person to do it all there. And so I 0:11:18.840 --> 0:11:20.840 just think that for all the bad stuff in the 0:11:20.840 --> 0:11:24.120 world right now, and we've all been through plenty, there's 0:11:24.160 --> 0:11:26.280 this sense of optimism that I think some of these 0:11:26.280 --> 0:11:29.400 are rooted in of like can you make aspects of 0:11:29.440 --> 0:11:32.120 your life better? So I know that's a roundabout answer 0:11:32.240 --> 0:11:35.439 for you, um, but you know, it's all it's all there. 0:11:35.480 --> 0:11:37.280 I mean one of the ones that I personally did, 0:11:37.280 --> 0:11:41.360 I interviewed somebody at NAZDAC and I said, you know what, 0:11:41.360 --> 0:11:43.640 what's made you a better manager? And she said, well, 0:11:43.640 --> 0:11:47.120 outside of my job, I have this personal board and 0:11:47.360 --> 0:11:50.120 I have different archetypes on this personal board, and I 0:11:50.200 --> 0:11:52.800 meet with these people one on one and I've had 0:11:52.840 --> 0:11:57.040 this kind of structure in my work professional life for 0:11:57.280 --> 0:12:01.640 years and it's brought you know, it's it's brought success 0:12:01.840 --> 0:12:04.240 to my life, my work life. And I just thought 0:12:04.280 --> 0:12:07.800 that was so phenomenal that you could, you know, outside 0:12:07.800 --> 0:12:09.880 of what you're doing during your day job, that you 0:12:09.960 --> 0:12:13.040 can put a structure on on on yourself that helps 0:12:13.080 --> 0:12:15.960 improve your how you look at work and career. I 0:12:15.960 --> 0:12:18.040 feel like certainly the Arc of the Week and also 0:12:18.080 --> 0:12:20.319 every magazine, what I think is so great is you've 0:12:20.360 --> 0:12:22.839 got serious stuff that's on the economy markets, but then 0:12:22.880 --> 0:12:25.920 you can go and there can be something on you know, 0:12:26.760 --> 0:12:29.720 an alcohol or making the best burger, or there could 0:12:29.720 --> 0:12:32.439 be somebody like Deep October who's teaching you about kind 0:12:32.440 --> 0:12:36.160 of how to deal with how to meditate. Yeah. So, 0:12:36.600 --> 0:12:39.240 and you know I should also mention that, you know, 0:12:39.400 --> 0:12:43.400 we had all this live programming through the week multiple times. 0:12:43.440 --> 0:12:48.720 Carol Masser was a mixologist and mixing cocktails. So she 0:12:48.800 --> 0:12:51.520 got some good she got some good kids. You know, 0:12:51.559 --> 0:12:55.240 I'm pretty embarrassing at it. I hope that you know 0:12:55.320 --> 0:12:58.200 her cocktail game for if anybody's going to Carol Master's 0:12:58.200 --> 0:13:00.559 house this summer, like, I hope that there's some mean 0:13:00.640 --> 0:13:04.520 cocktails coming. Enjoy. Enjoy. Yeah, there are a couple of 0:13:04.520 --> 0:13:06.160 times where she left, you know, she had to leave 0:13:06.240 --> 0:13:09.160 the show early to go and you know, quote unquote work. 0:13:11.080 --> 0:13:13.400 So there's a surprise and delight element. And I think 0:13:13.400 --> 0:13:15.400 that's what we try and do in the magazine always 0:13:15.480 --> 0:13:18.520 is give you stuff, news that your you need. We 0:13:18.520 --> 0:13:21.400 we want to take you in on big stories that 0:13:21.440 --> 0:13:23.640 you're only going to get from Bloomberg, but we also 0:13:23.679 --> 0:13:25.680 want to surprise and delight you with some other content 0:13:25.720 --> 0:13:30.240 to follow this stroll. I have no idea, but I 0:13:30.320 --> 0:13:32.240 leave it. I leave it to you all. But you know, 0:13:32.880 --> 0:13:35.040 there's a new issue next week, right. We always do, 0:13:35.200 --> 0:13:38.280 and you know, we're often planning things way out into 0:13:38.320 --> 0:13:41.000 the future, and this was sort of the embodiment of that. 0:13:41.040 --> 0:13:42.920 I mean to see what we did online. If you 0:13:42.920 --> 0:13:45.920 haven't seen it, go to business week dot com uh 0:13:46.120 --> 0:13:48.600 to see all the videos. Follow us on social you 0:13:48.600 --> 0:13:50.920 can see all those like It took months to pull 0:13:51.000 --> 0:13:55.520 this off, and huge kudos to everybody involved that at 0:13:55.559 --> 0:13:58.559 Bloomberg for helping it all come together. When do you 0:13:58.600 --> 0:14:02.600 started planning the next one to? Oh? Now, yeah, I 0:14:02.640 --> 0:14:06.120 think we'll do a little odd. Yeah, I mean I 0:14:06.160 --> 0:14:09.200 love your two dollar bill. So that one just so 0:14:09.320 --> 0:14:11.959 everybody can hear because it might be relevant on Friday. 0:14:12.360 --> 0:14:15.439 This dates back to when I was younger, slightly younger, 0:14:15.520 --> 0:14:17.880 not that much younger, but slightly younger. Go to the 0:14:17.920 --> 0:14:20.880 bank on a Friday, Uh, buy them out of two 0:14:20.920 --> 0:14:23.320 dollar bills and that's what you're going to tip your 0:14:23.360 --> 0:14:26.240 bartender with and it will be twice as much as 0:14:26.240 --> 0:14:27.880 the person next. But it's already got me thinking about 0:14:27.880 --> 0:14:30.280 what I'm going to submit for you for next year. Okay, alright, 0:14:30.320 --> 0:14:32.480 pressures on. Well, you can p good one after here 0:14:32.480 --> 0:14:35.240 and we'll see that way you're not on the spot. Well, 0:14:35.360 --> 0:14:37.840 the cocktails that I'll be making at my desk afterwards, 0:14:37.880 --> 0:14:39.520 you do not have to tip me. I'm just gonna 0:14:39.560 --> 0:14:41.720 say this time, I haven't gotten to get into two 0:14:41.720 --> 0:14:44.600 dollar bills, so you're you're gonna be light on a tip. 0:14:44.920 --> 0:14:47.840 So have a great weekend. It's a good week, Bloomberg 0:14:47.880 --> 0:14:50.360 Business Week nditor Joe Webber. Go to Bloomberg business Week 0:14:50.400 --> 0:14:52.960 dot com check out all the amazing content and the 0:14:53.000 --> 0:14:57.960 new how to issue. You're listening to Bloomberg. This is 0:14:58.000 --> 0:15:02.280 the Big Take, the best Boomberg's in depth original reporting 0:15:02.320 --> 0:15:05.120 from around the globe. Well, we actually make sure we do. 0:15:05.520 --> 0:15:08.560 As the Economy covers is what kut. The data kind 0:15:08.600 --> 0:15:10.920 of broken down a bit. It's fun to becoming more 0:15:10.920 --> 0:15:13.440 and more expensively, to be looking at the shifting billion 0:15:13.480 --> 0:15:15.920 dollars for their own entry levels. There's been ways of 0:15:15.960 --> 0:15:18.640 immigration that have faced a lot of resistance, a lot 0:15:18.680 --> 0:15:21.520 of color behind the scenes, and a great untold story. 0:15:21.720 --> 0:15:24.120 How did Bezos really come out on top? As the 0:15:24.160 --> 0:15:27.440 cover says Jeff wins, he always seems to win the 0:15:27.440 --> 0:15:31.640 Big Take on Bloomberg Radio. Well, the Big Take definitely 0:15:31.680 --> 0:15:33.320 caught our attention today. It's also one of our most 0:15:33.320 --> 0:15:36.360 read stories on the Bloomberg about how world dominating super firms. 0:15:36.400 --> 0:15:39.640 To him, they are getting bigger tech here and more Chinese. 0:15:39.840 --> 0:15:42.520 Tom or like his chief economist at Bloomberg Economics, and 0:15:42.520 --> 0:15:45.480 he joins us on the phone from Washington, d C. Tom, 0:15:45.520 --> 0:15:48.120 first of all, this is chock full of data. Charts 0:15:48.200 --> 0:15:50.960 is an interactive experience. I encourage everybody to check it 0:15:50.960 --> 0:15:53.640 out at Bloomberg dot com. Take us through how you 0:15:53.640 --> 0:15:56.320 put it together, the analysis that you did to come 0:15:56.320 --> 0:15:59.800 to these findings. So what we've tried to do to 0:16:00.240 --> 0:16:03.400 is take a kind of grand sweep through thirty years 0:16:03.440 --> 0:16:08.560 of corporate history. We targeted the top fifty listed firms 0:16:08.560 --> 0:16:11.400 in the world, and then we pulled data on their 0:16:11.440 --> 0:16:15.840 financials and their market cap from the Bloomberg terminal and 0:16:15.920 --> 0:16:19.560 ran a bunch of analysis. And when you crunch the numbers, 0:16:19.880 --> 0:16:22.880 it tells you a number of stories. So there's a 0:16:22.920 --> 0:16:26.280 story about a transition from West to East, the rise 0:16:26.320 --> 0:16:30.440 of the Chinese mega firm. There's a story about UM, 0:16:30.480 --> 0:16:33.560 the fall of big oil and the rise of big 0:16:33.600 --> 0:16:36.440 tech UM. And of course there's a sort of a 0:16:36.440 --> 0:16:40.000 bigger story about the big getting bigger. Go back to 0:16:41.440 --> 0:16:43.920 and the top fifty firms in the world, where they 0:16:44.200 --> 0:16:47.360 had a market cap of about five percent of global GDP. 0:16:47.960 --> 0:16:50.600 If you look at that number now it's close to thirty. 0:16:52.240 --> 0:16:55.800 That's a big change. And listen, we talked about inequities 0:16:55.800 --> 0:16:58.520 in our world at general. In general, you know, time 0:16:58.600 --> 0:17:02.280 between individuals by we're seeing it also happening within the 0:17:02.280 --> 0:17:06.560 corporate community. You just laid it out with that stat Yeah, 0:17:06.600 --> 0:17:09.000 and of course the too a related, right. I mean, 0:17:09.040 --> 0:17:11.840 if you think about, um, we think about the biggest 0:17:11.880 --> 0:17:15.400 firms getting bigger, we also think about the entrepreneurs who 0:17:15.480 --> 0:17:20.440 created those firms getting richer. And so the dynamic between 0:17:20.840 --> 0:17:23.679 the big getting bigger in the corporate sector and the 0:17:23.760 --> 0:17:27.760 rich getting richer in society at large, these two trends 0:17:27.760 --> 0:17:30.560 are intimately connected. Well. And it's interesting you guys write 0:17:30.560 --> 0:17:34.200 to the advantage of superstar firms and joy became all 0:17:34.200 --> 0:17:36.840 the more glaring during the pandemic, and it's it's why 0:17:36.880 --> 0:17:40.640 we saw an Amazon just take off like a rocket 0:17:40.920 --> 0:17:45.280 during the pandemic. Yeah, I mean the pandemic, Carol, I mean, 0:17:45.320 --> 0:17:47.920 as you know, it was the disaster for the mom 0:17:47.920 --> 0:17:51.600 and pop store, right, the corner store, which relies on 0:17:51.680 --> 0:17:55.560 foot traffic to drive revenue. They had a terrible time 0:17:55.880 --> 0:17:59.040 in America and around the world. But the biggest firms 0:17:59.040 --> 0:18:03.639 in the world, the Amazon's, the Google's, the Netflix, the facebooks, 0:18:03.760 --> 0:18:06.159 they will almost they have a business model which is 0:18:06.200 --> 0:18:09.800 almost tailor made for the pandemic. Right, Um, so the 0:18:09.840 --> 0:18:14.760 pandemic gave them sort of kind of compounded their advantage. 0:18:15.080 --> 0:18:17.800 Where do taxes come into this, because there's a striking 0:18:18.040 --> 0:18:21.359 graphical representation in here that shows the median effective tax 0:18:21.440 --> 0:18:27.080 rate of dwindled to only seventeen percent last year, at 0:18:27.080 --> 0:18:29.919 the same time profit margins heading in the opposite direction, 0:18:29.960 --> 0:18:35.240 staring from seven percent to over that same period of time. Yeah, 0:18:35.560 --> 0:18:37.520 I think, I think when we think about it, Tim, 0:18:37.520 --> 0:18:41.720 there's been this kind of this grand sort of theme 0:18:41.760 --> 0:18:45.240 in the global economy over the last forty years, starting 0:18:45.280 --> 0:18:48.720 with the Reagan Revolution, which has really tipped the balance 0:18:48.800 --> 0:18:53.920 in favor of corporations. Tax rates have been cut, and 0:18:54.240 --> 0:18:58.800 multinationals have become better kind of shifting their profits around 0:18:59.720 --> 0:19:03.200 some times in sort of fairly dubious ways to kind 0:19:03.200 --> 0:19:08.200 of maximize the benefit of low tax regimes. Um. And 0:19:08.520 --> 0:19:10.359 I guess, I guess the question which comes out of 0:19:10.400 --> 0:19:13.600 this research and some of the news flow from Washington, 0:19:13.680 --> 0:19:16.679 d C. And Beijing, is well, are we now at 0:19:16.720 --> 0:19:20.159 another moment for the global economy? Is the kind of 0:19:20.200 --> 0:19:24.959 the Reagan Revolution which tipped the balance from workers to corporations? 0:19:25.280 --> 0:19:27.879 Has that now when its course? And were we at 0:19:27.920 --> 0:19:31.359 the beginning of a new period where tax rates rise, 0:19:31.440 --> 0:19:35.280 where minimum wages why rise, and the balance starts tipping 0:19:35.280 --> 0:19:39.240 a little bit more towards workers. What's also interesting, and 0:19:39.280 --> 0:19:41.119 we kind of said that coming in or in the 0:19:41.160 --> 0:19:45.520 introduction Tom about the rise or the China rising. You know, 0:19:45.600 --> 0:19:49.080 we continue to see that and that is not just 0:19:49.359 --> 0:19:54.440 in terms of their you know, impact on manufacturing globally, 0:19:54.480 --> 0:19:59.720 but it's just the companies they are creating are behemoths. Yeah. 0:19:59.720 --> 0:20:03.000 So we've got um Ali Baba, the kind of the 0:20:03.119 --> 0:20:10.440 Chinese Amazon. UM, we've got ten cents the Chinese Internet giants, UM, 0:20:10.480 --> 0:20:13.440 a number of Chinese firms which have kind of muscled 0:20:13.480 --> 0:20:16.880 into the to the top ranks. UM. And of course 0:20:16.920 --> 0:20:21.199 there's an interesting dynamic UM there as well, because the 0:20:21.280 --> 0:20:24.640 people who say we need to regulate firms more, right, 0:20:25.040 --> 0:20:29.200 corporations have become too powerful, we need to regulate them more. Well, 0:20:29.440 --> 0:20:32.119 because of the dynamic between the chat between China and 0:20:32.119 --> 0:20:35.920 the United States, UM, the giant firms have a pushback 0:20:35.960 --> 0:20:39.200 against that argument. Right now. We're already starting to hear 0:20:39.280 --> 0:20:43.480 some of the the US superstar firms say, well, if 0:20:43.520 --> 0:20:46.520 you tax us more, if you regulate us more, if 0:20:46.560 --> 0:20:50.040 you kind of impede our dynamism, then that's going to 0:20:50.119 --> 0:20:52.840 make it harder for us to face off against these 0:20:52.920 --> 0:20:56.600 new Chinese humans. Tom, I want to end with just 0:20:56.720 --> 0:20:59.120 very briefly, something that that you talked about a little 0:20:59.119 --> 0:21:01.439 earlier on Quick Take Today, and it was capex and 0:21:01.480 --> 0:21:05.440 capex spending as as a portion of a company's spending 0:21:05.440 --> 0:21:08.399 and as as it relates to how many employees it 0:21:08.400 --> 0:21:12.800 actually has to hire and what that means for human capital. Yeah, 0:21:12.880 --> 0:21:16.040 So if we go back to the to the ninety nineties, Tim, 0:21:16.080 --> 0:21:19.760 and we think about the dominant firms, then it's industrial 0:21:19.880 --> 0:21:24.000 firms like General Electric, its energy companies like x On, 0:21:24.600 --> 0:21:27.080