WEBVTT - Bloomberg 50 Celebrates 2022's Most Influential 0:00:01.840 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.480 --> 0:00:06.840 Tim Stanevik. We're here every day bringing you the latest 0:00:06.840 --> 0:00:11.000 news from the world's of business and finance, clus technology, politics, economics, 0:00:11.039 --> 0:00:14.040 all harnessing the power of Business Week reporters and editors, 0:00:14.160 --> 0:00:17.040 not to mention our journalists and analyst in more than 0:00:17.040 --> 0:00:21.160 one twenty countries. You can download Bloomberg Business Week on iTunes, SoundCloud, 0:00:21.239 --> 0:00:23.320 or Bloomberg dot com. You can also listen to our 0:00:23.360 --> 0:00:26.119 radio show at two pm Eastern Time on Bloomberg Radio 0:00:26.280 --> 0:00:30.120 or stream us live on YouTube and Bloomberg dot Com. 0:00:30.120 --> 0:00:33.400 Bloomberg business Week magazine it's on the shelves right now. 0:00:33.440 --> 0:00:35.800 As the kids used to say, the cover is the 0:00:35.840 --> 0:00:39.199 Bloomberg fifty, the people who defined a global business in 0:00:39.240 --> 0:00:41.879 two and Mike are You're gonna be shocked to find 0:00:41.920 --> 0:00:44.000 out that I am not on it. I did not 0:00:44.080 --> 0:00:48.920 make the list exactly. But we've got the person responsible 0:00:48.960 --> 0:00:51.479 for that, Brett Bagan. He's a senior editor of Bloomberg 0:00:51.479 --> 0:00:54.800 Business Week, joining us via zoom from New York City. 0:00:55.080 --> 0:00:59.240 So Brett the fifty folks who really defined global business 0:01:00.040 --> 0:01:03.680 to talk to us about maybe some themes that emerged 0:01:03.720 --> 0:01:08.280 from your list this year. Yeah, So I would say 0:01:08.280 --> 0:01:12.520 that the biggest theme that emerged is the tentacles really 0:01:12.560 --> 0:01:15.760 that the war in Ukraine had, So we have obviously 0:01:16.160 --> 0:01:19.880 Vladimir z Lensky is on the list UM, but then 0:01:19.920 --> 0:01:23.240 when you start to look into other UH industries, you 0:01:23.280 --> 0:01:26.400 see people like in the finance world like Dolly Singh, 0:01:26.600 --> 0:01:29.720 who was the architect of the sanctions regime against Putin. 0:01:30.120 --> 0:01:33.240 He's on our list. And then even people like Todd 0:01:33.240 --> 0:01:36.520 Bowley who want winds up investing in buying the Chelsea 0:01:36.560 --> 0:01:41.520 Football Club after UM the Russian oligarch Romano Bromvich was 0:01:41.560 --> 0:01:43.840 pressured to sell it. So that was one of the 0:01:43.959 --> 0:01:47.120 sort of major themes UM. And then I would say 0:01:47.160 --> 0:01:50.400 it was also sort of hard to avoid um what's 0:01:50.440 --> 0:01:54.520 going on in crypto and the crypto winter. UM. So 0:01:54.600 --> 0:01:59.480 we had some familiar names like uh uh Serena Williams 0:01:59.520 --> 0:02:05.480 who's raising money UM including investing in in some crypto stuff, 0:02:05.880 --> 0:02:09.040 people like Katie Hahn, and up until about a month ago, 0:02:09.440 --> 0:02:11.520 UM we thought we were going to have someone with 0:02:11.560 --> 0:02:14.640 the initials SPF on the list, but we wound up 0:02:14.639 --> 0:02:19.000 we wound up putting his replacement John Rayan Insteady certainly 0:02:19.000 --> 0:02:21.160 an influential character, but I guess not the type you 0:02:21.200 --> 0:02:25.720 want this particular list. My favorite, though, Brett is Bad 0:02:25.800 --> 0:02:32.639 Bunny for those who are what's going on to reggaeton man? 0:02:33.040 --> 0:02:37.480 Okay there, what's he doing on there? Brett? Yeah? So UM, 0:02:37.639 --> 0:02:41.000 Bad Bunny is kind of fascinating. You know, he sort 0:02:41.040 --> 0:02:44.600 of emerges in the pandemic from He's really sort of 0:02:44.600 --> 0:02:47.280 first recognized when he was a teen for his work 0:02:47.320 --> 0:02:53.639 on SoundCloud UM and has been an incredibly prolific UM 0:02:53.919 --> 0:02:56.839 musician in the last couple of years, and that really 0:02:56.840 --> 0:03:01.080 culminated this year in him selling more are tickets to 0:03:01.120 --> 0:03:06.120 concerts and having the number one album UM of the 0:03:06.200 --> 0:03:12.520 year when he had competition from some huge names Harry Styles, Beyonce, Bts, etcetera. 0:03:12.880 --> 0:03:14.600 So no one had a bigger tour this year and 0:03:14.639 --> 0:03:16.880 no one had a bigger album this year. And Bad 0:03:16.919 --> 0:03:19.400 Bunny and he really appears appeals to like a gen 0:03:19.520 --> 0:03:22.920 Z crowd. He sort of challenges gender norms. He and 0:03:22.960 --> 0:03:27.120 his music is great and he surprises for you this year. 0:03:28.160 --> 0:03:31.840 I mean there are always surprises to me. UM. I 0:03:31.840 --> 0:03:36.240 would you know, I would say that, Um, we look 0:03:36.360 --> 0:03:40.480 at people like someone like Tom Oxley who makes the 0:03:40.520 --> 0:03:43.280 list because when you try to explain what he does, 0:03:43.760 --> 0:03:46.160 it's it's not just surprising, it's sort of shocking. He's 0:03:46.200 --> 0:03:52.000 a neuroscientist and entrepreneur who is looking into the world 0:03:52.040 --> 0:03:58.480 of brain computer interfaces and has successfully implanted device essentially 0:03:58.520 --> 0:04:02.320 allows people who are suffering from things like als to 0:04:02.600 --> 0:04:06.800 communicate via their thoughts. You know, the world of science fiction, 0:04:06.840 --> 0:04:09.520 we've heard about this for you know, years, and it's 0:04:09.520 --> 0:04:12.760 always been something in novels, but he's actually making it 0:04:12.840 --> 0:04:16.280 happen in in Australia. In this trial run, they were 0:04:16.320 --> 0:04:19.480 able to get people to actually um send emails using 0:04:19.480 --> 0:04:22.359 this technology and to order things online. So learning about 0:04:22.360 --> 0:04:24.360 people like that is always one of the most fascinating 0:04:24.440 --> 0:04:27.839 parts of businesses to get, you know, Brett. One name 0:04:27.880 --> 0:04:30.520 that chumped out in my world of market coverage is 0:04:30.600 --> 0:04:34.600 Ken Griffin, billionaire founder of Citadel. What what caught your 0:04:34.600 --> 0:04:37.880 eye with him this year? Yeah? Ken Griffin is you know, 0:04:38.320 --> 0:04:42.520 fascinating in normal times. But this, uh, this move to Miami, 0:04:42.960 --> 0:04:44.480 you know, it is not the first to do it, 0:04:44.839 --> 0:04:47.200 but he is certainly the wealthiest, certainly the richest to 0:04:47.279 --> 0:04:51.560 do it, and he's really signaling a move down there 0:04:52.000 --> 0:04:54.920 and in an attempt to make Miami into I think 0:04:54.960 --> 0:04:57.839 what we referred to as Wall Street South Um. He's 0:04:57.839 --> 0:05:01.800 building a tower there that I believe he's estimated to 0:05:01.839 --> 0:05:05.120 be at about a billion dollars. And there's also just 0:05:05.200 --> 0:05:07.800 a you know, fascinating backstory here with him wanting to 0:05:07.920 --> 0:05:12.159 leave um Illinois because of his battles with JB. Pritzker 0:05:12.200 --> 0:05:14.880 there and to go down to Florida was generally perceived 0:05:14.880 --> 0:05:18.479 as being more business friendly where the governor is Rond 0:05:18.520 --> 0:05:21.520 de Santas and and Griffin is one of his biggest contributors. 0:05:21.520 --> 0:05:23.600 So it's like a story within a story within a 0:05:23.680 --> 0:05:25.400 story on that one. You know, I was glad to 0:05:25.440 --> 0:05:28.880 see Nick Hayak on because I interviewed him this earlier 0:05:28.960 --> 0:05:31.560 this week and doing research. He's the president's CEO of 0:05:31.560 --> 0:05:34.760 the Swatch Group in Switzerland. I didn't know that the 0:05:34.800 --> 0:05:39.120 Swatch Group was the biggest watch company in the world 0:05:39.120 --> 0:05:41.360 and they have a huge market cap. Just a fascinating 0:05:41.360 --> 0:05:43.360 story when I did the research. Interesting to find him 0:05:43.400 --> 0:05:47.360 on your Bloomberg Business Week fifty. Yeah, Nick Hik is like, 0:05:47.520 --> 0:05:50.960 you know, it's a very story. He's the kind of 0:05:51.000 --> 0:05:52.800 person who you know, wouldn't have made it on last 0:05:52.880 --> 0:05:55.640 year and probably won't get on next year. But the 0:05:55.680 --> 0:05:59.720 Moon Swatch is this genius stroke that he had where um, 0:05:59.760 --> 0:06:04.440 they've basically took Um a Swatch and which is one 0:06:04.440 --> 0:06:08.840 of the lower end brands, right, and they combine that 0:06:08.880 --> 0:06:11.800 with Omega, which is one of their hiring bread and 0:06:11.880 --> 0:06:14.880 you had a watch that would normally cost about seven 0:06:14.920 --> 0:06:18.400 thousand dollars and they swapped out basically the parts to 0:06:18.480 --> 0:06:22.160 make it a two DFT watch UM, and it was 0:06:22.400 --> 0:06:26.840 wildly popular. I actually looked for one even as recently 0:06:26.960 --> 0:06:29.839 is about a week ago, and I walked into the boutique, 0:06:29.880 --> 0:06:32.800 the Swatch boutique, and they said they almost knew exactly 0:06:32.800 --> 0:06:35.440 why why were there, And they said, we don't have 0:06:35.480 --> 0:06:37.640 any you know, like almost right off the bat. And 0:06:37.680 --> 0:06:40.520 this is months and months and months after this this partnership, 0:06:40.760 --> 0:06:43.400 So it's really really just a genius stroke. The Watchers 0:06:43.400 --> 0:06:45.919 are super cool and you basically get to own this 0:06:46.200 --> 0:06:49.240 iconic watch time piece, but you only have to spend 0:06:49.279 --> 0:06:51.599 two hundred fifty dollars on it versus the seven thousand 0:06:51.640 --> 0:06:54.880 that it would the original would cost. Another one someone 0:06:54.920 --> 0:06:58.520 I did not know of Picky Cole. Uh, I'm not 0:06:58.560 --> 0:07:00.680 sure if you're allowed to say the name of a restaurant. 0:07:00.800 --> 0:07:06.400 I think this is this a family program, business business. 0:07:06.440 --> 0:07:09.840 We put it in print, we did, and our complying, 0:07:09.880 --> 0:07:14.640 our alert compliance flagged me every single um. Yeah. So 0:07:14.720 --> 0:07:18.120 Pinky Cole was fascinating. She raised million dollars this year 0:07:18.800 --> 0:07:21.640 with the help of Danny Meyer of shake Shack fame 0:07:21.720 --> 0:07:25.520 and of course of Unit Square, etcetera. Um So, she 0:07:25.600 --> 0:07:30.640 started a vegan burger chain called Slutty Vegan uh. And 0:07:30.800 --> 0:07:33.360 you know, it's basically fast food for vegans. She was 0:07:33.440 --> 0:07:38.400 trying to change people's perception of vegan food from like 0:07:38.440 --> 0:07:41.720 tofu bowls and grain bowls, and she liked junk food 0:07:41.720 --> 0:07:43.400 and wanted to be able to eat junk foods. So 0:07:43.880 --> 0:07:46.760 she needed Slutty Vegan basically so that we would talk 0:07:46.800 --> 0:07:51.160 about it, joke about it, and the burger. The burgers 0:07:51.160 --> 0:07:55.160 all have fun names like Hollywood Hooker, Manage One night Stand. 0:07:55.240 --> 0:07:57.760 It's it's great, that's fun. All right, that's good. It's 0:07:57.760 --> 0:08:01.960 a great uh collection and maybe of different people on there. 0:08:01.960 --> 0:08:04.400 It's a great read. Uh. So I suggest people run 0:08:04.400 --> 0:08:07.040 out to the you know you've got the you know 0:08:07.080 --> 0:08:09.040 place and get magazines, right, you can do that still, 0:08:09.200 --> 0:08:11.400 plus you can do it on that bloom Bloomberg dot 0:08:11.440 --> 0:08:16.040 com exactly. All right, good stuff. Brent Bigan, Senior editor 0:08:16.200 --> 0:08:21.840 Bloomberg Business Week, joining us v Assume from New York's City. Um, 0:08:21.880 --> 0:08:25.600 and it's a really good, good collection of diverse individuals. 0:08:25.640 --> 0:08:27.480 I got the usual suspects, you know, kind of the 0:08:27.480 --> 0:08:30.000 big players out there, but there's also some new ones. 0:08:30.080 --> 0:08:31.920 Serena Williams. I saw I was on there too, which 0:08:31.960 --> 0:08:34.400 is really cool. So cruise back in the back in 0:08:34.400 --> 0:08:36.800 the book. Oh it is good news for him. Alright, 0:08:36.800 --> 0:08:41.880 this is Bloomberg. These sees Bloomberg Business Week with Carol 0:08:41.920 --> 0:08:47.160 Messerer and Tim Stinebeck on Bloomberg Radio. All right, elon Musk, 0:08:47.559 --> 0:08:51.120 No surprise, I guess Michael still in the news. But 0:08:51.280 --> 0:08:54.600 now he's saying, Okay, now I'm really done. I'm really 0:08:54.640 --> 0:08:57.720 done selling stock and I mean it this time. I 0:08:57.760 --> 0:08:59.920 don't know we've heard that before. Let's bring in Sarah Fryar. 0:09:00.480 --> 0:09:04.559 She's a big tech team leader for Bloomberg News. She's 0:09:04.559 --> 0:09:08.240 also the author of No Filter, The Inside Story of Instagram. 0:09:08.600 --> 0:09:12.560 She's uh joined us on zoom from San Francisco Sarah, 0:09:12.640 --> 0:09:15.240 do we believe him this time? I know you were 0:09:15.280 --> 0:09:18.880 in the Twitter spaces called yesterday, and I guess some 0:09:18.920 --> 0:09:22.559 shareholders weren't too happy. What do you think, Well, I 0:09:23.120 --> 0:09:25.680 think it's it's difficult to say whether we believe him. Certainly, 0:09:25.720 --> 0:09:29.120 it's it's um, it's what he has promised. I think 0:09:29.280 --> 0:09:33.120 shareholders were also really interested in what he said right afterwards, 0:09:33.480 --> 0:09:36.920 which is that he will be spending more of his 0:09:37.000 --> 0:09:40.559 time on Tesla going forward. They felt he was distracted 0:09:40.600 --> 0:09:42.720 by the Twitter project. They said, you know, why didn't 0:09:42.720 --> 0:09:45.960 you come back, uh to this company that is that 0:09:46.080 --> 0:09:48.040 is a much bigger part of your life and net worth. 0:09:48.280 --> 0:09:51.959 He said, don't worry, Tesla is way more complex than 0:09:52.000 --> 0:09:54.600 Twitter ever will be. He said, Twitter has about ten 0:09:54.640 --> 0:09:57.240 percent of the complexity of Tesla, So of course he 0:09:57.320 --> 0:09:59.560 will need to be spending more of his attention on 0:09:59.600 --> 0:10:02.360 that club any going forward, which which shareholders are happy 0:10:02.360 --> 0:10:05.520 to hear. But then they confronted him with this this 0:10:06.360 --> 0:10:10.240 problem they have with how he has brought so much 0:10:10.679 --> 0:10:16.160 political you know, controversy into his his run of Twitter, 0:10:16.320 --> 0:10:20.800 bringing back UM people who had been banned, and making 0:10:20.840 --> 0:10:26.120 his own proclamations about politics and um causing you know 0:10:26.240 --> 0:10:31.360 a lot of people who loved his brand, including these investors, 0:10:31.480 --> 0:10:35.760 to feel a little alienated and to feel a little 0:10:35.800 --> 0:10:39.520 different writing around in their Tesla's and being owners of 0:10:39.559 --> 0:10:43.080 Tesla stock. And what I thought was really interesting is 0:10:43.120 --> 0:10:46.440 he responded to responded to those fears by saying, of course, 0:10:46.480 --> 0:10:49.760 I'm not going to stop talking about politics just to 0:10:49.880 --> 0:10:53.840 satisfy shareholders. Of course, not um. And I don't think 0:10:53.840 --> 0:10:56.720 that they were very pleased to hear that. Not pleased, 0:10:56.760 --> 0:10:59.319 but probably not surprised. Yea, I would guess if you 0:10:59.360 --> 0:11:02.040 know anything about but sorry, I wonder if he got 0:11:02.080 --> 0:11:05.319 into sort of any of the nitty gritty on Tesla 0:11:05.520 --> 0:11:09.520 Tesla's business because obviously, you know, the stock has taking 0:11:09.559 --> 0:11:12.400 a huge hit this year, but especially this week that 0:11:12.440 --> 0:11:16.960 those news of the discount on some models seemed to 0:11:17.000 --> 0:11:20.040 really knock a lot off the stockers down something like 0:11:20.120 --> 0:11:22.480 eight or nine percent that day. Did he talk about 0:11:22.480 --> 0:11:24.560 that at all or really any of the sort of 0:11:24.679 --> 0:11:28.760 demand dynamics for for Tesla going forward. Well, he he 0:11:28.880 --> 0:11:30.680 tied it to the economy. He tied it to the 0:11:30.679 --> 0:11:34.839 interest rate environment, the the inflationary environment. I think that 0:11:35.440 --> 0:11:38.440 you know what he was trying to get across to 0:11:38.480 --> 0:11:41.160 these investors is look, you know, this is what's happening 0:11:41.480 --> 0:11:44.920 in the industry at large, and uh, we're just kind 0:11:44.920 --> 0:11:48.200 of rolling with with the trend here. And I don't 0:11:48.200 --> 0:11:50.640 know that that you know, when you look at Tesla 0:11:50.640 --> 0:11:53.079 compared to the rest of the market, it is being 0:11:53.320 --> 0:11:55.600 hit a little harder. Um. So, I don't know if 0:11:55.640 --> 0:11:59.080 that was a satisfying answer for his investors. Sarah, you 0:11:59.160 --> 0:12:01.200 know you're out there in Francisco. You know all of 0:12:01.240 --> 0:12:04.600 these companies, you know, a lot of the Silicon Valley 0:12:04.600 --> 0:12:08.679 investors there on Sandhill Road too. Is there a sense 0:12:08.720 --> 0:12:12.720 that Twitter there's even a place for Twitter as a business? 0:12:12.800 --> 0:12:16.199 I mean, you've got Amazon now on the advertising business obviously, 0:12:16.240 --> 0:12:20.160 Facebook and Instagram, Google. Where does Twitter fit in? You know, 0:12:20.320 --> 0:12:23.839 can it be fixed? Well? Twitter isn't really replicated by 0:12:23.880 --> 0:12:26.520 any of those other businesses because it is a very 0:12:26.600 --> 0:12:29.040 real time product. People go to Twitter to figure out 0:12:29.080 --> 0:12:32.520 what's happening now. And and I think that if you're 0:12:32.520 --> 0:12:36.320 going to instagrams are going to Facebook, you're going to TikTok. 0:12:36.679 --> 0:12:40.760 It's more about entertainment around, you know, spending the few 0:12:40.760 --> 0:12:43.439 minutes you have while you're waiting for an uber. So 0:12:43.720 --> 0:12:48.079 I think that the place Twitter has in our our 0:12:48.120 --> 0:12:51.800 conversation and that's what Musk was drawn to, this idea 0:12:51.880 --> 0:12:57.160 that you would control this extremely powerful communication platform where 0:12:57.200 --> 0:13:03.000 you see politicians, celebrities, UM, athletes, actors, journalists, um sharing 0:13:03.040 --> 0:13:05.840 what's happening to them in real time and what they're thinking. 0:13:07.440 --> 0:13:10.559 That said, Twitter as a business has always been rather 0:13:10.720 --> 0:13:15.240 niche um in one part because advertisers don't really feel 0:13:15.280 --> 0:13:18.960 the need to be tied to, you know, a place 0:13:19.120 --> 0:13:23.600 of of controversy or a place where where anything can 0:13:23.679 --> 0:13:26.480 happen related to the news. It's much safer if you're 0:13:26.520 --> 0:13:30.560 an advertiser to play on UM, a platform that is 0:13:30.600 --> 0:13:34.080 more about about making people feel good and more about entertainment. 0:13:34.360 --> 0:13:36.080 So it's always been a little bit of a struggle 0:13:36.200 --> 0:13:38.760 for them to grow. And of course not everyone in 0:13:38.800 --> 0:13:40.960 the public needs to know what's happening right at the 0:13:41.000 --> 0:13:44.240 moment it's happening UM as journalists were rather addicted to 0:13:44.280 --> 0:13:46.880 that and part of the part of the engine of that. 0:13:47.559 --> 0:13:50.360 But you know, regular people don't need to be glued 0:13:50.400 --> 0:13:52.800 to Twitter all day. Yeah sor I wonder if it's 0:13:52.800 --> 0:13:55.600 possible to get a sort of vibe check on what 0:13:55.679 --> 0:13:59.040 these shareholders were like during this spaces h Q and 0:13:59.120 --> 0:14:01.360 A yesterday. You know, did they seem angry? Do they 0:14:01.360 --> 0:14:04.080 seem like they're itching to hit that sell button or 0:14:04.160 --> 0:14:06.079 is it more a matter of come on, Ellen, we 0:14:06.240 --> 0:14:07.960 were on board, but we need you to do this, 0:14:08.080 --> 0:14:11.040 that and the other thing very much, the latter. I mean, 0:14:11.280 --> 0:14:13.800 I think a lot of things that must would say, 0:14:13.840 --> 0:14:16.800 the shareholders would say, oh yeah, that makes a lot 0:14:16.880 --> 0:14:19.280 of sense. I get it. I just want to you know, 0:14:20.480 --> 0:14:22.800 you know, are you punching down when you talk about 0:14:22.880 --> 0:14:26.440 trends rights? Are you punching down when you when you 0:14:26.440 --> 0:14:31.640 you know, do this your political commentary that you do? Um, 0:14:31.760 --> 0:14:35.600 how how can we tell our our daughters or our 0:14:35.680 --> 0:14:40.440 sons that we admire you as as you you know, 0:14:40.680 --> 0:14:44.240 really change your your public perstona and taken on so 0:14:44.320 --> 0:14:48.320 much um controversy with this Twitter bid and And I 0:14:48.360 --> 0:14:51.000 think that that's something that he didn't really answer to 0:14:51.080 --> 0:14:54.680 their satisfaction. I think they were very much just trying 0:14:54.720 --> 0:14:59.280 to to communicate to him, like, man, we're on your side, 0:14:59.320 --> 0:15:01.640 Like you really to see this turnaround. It's in all 0:15:01.680 --> 0:15:05.040 of our financial interests um and And he was like, Hey, 0:15:05.080 --> 0:15:07.440 like this is this is who I am and and 0:15:07.880 --> 0:15:12.360 I'm I have great things. Yeah, so, Sarah, one of 0:15:12.360 --> 0:15:14.480 the next things I guess we'll see in terms of 0:15:14.880 --> 0:15:18.200 Twitter as a businesses CEO. Are they going to hire 0:15:18.200 --> 0:15:22.600 a CEO? Now? I can't imagine being taking that position 0:15:22.720 --> 0:15:26.360 given that Elon Elon Musk be He's still gonna be 0:15:26.400 --> 0:15:29.360 involved in the company. Any rumblings out there in the 0:15:29.400 --> 0:15:33.800 valley about who might get the job want the job, well, 0:15:34.080 --> 0:15:36.640 Must for his part, says that anybody who wants it 0:15:36.720 --> 0:15:40.480 is probably not qualified. So you know, maybe you have 0:15:40.600 --> 0:15:43.280 to not want it and have Must come call on 0:15:43.360 --> 0:15:46.200 you and say will you step up to the plate. 0:15:46.520 --> 0:15:49.400 But listen, it's gonna be really complicated position because not 0:15:49.480 --> 0:15:54.320 only do you have to um run this company where 0:15:54.640 --> 0:15:57.280 Musk is still financially in control. He said that he 0:15:57.360 --> 0:16:01.480 wants to remain in charge of in engineering and software 0:16:01.480 --> 0:16:03.880 and servers, so he's still going to be a larger 0:16:03.880 --> 0:16:06.960 than like presence in the office. If if not, you know, 0:16:07.840 --> 0:16:11.280 making a lot of the decisions still, and you need 0:16:11.360 --> 0:16:14.680 somebody who can can cater to that well at the 0:16:14.760 --> 0:16:18.720 same time, putting the business in the direction where it 0:16:19.000 --> 0:16:23.120 can't succeed and Musk has said that it's been on 0:16:23.160 --> 0:16:25.440 the path to bankruptcy. It's may I don't know if 0:16:25.440 --> 0:16:29.040 that's hyperbolic or not, but certainly Twitter has taken on 0:16:29.920 --> 0:16:33.280 a lot of debt that must borrowed in order to 0:16:33.320 --> 0:16:37.400 finance this transaction. And so you know, he explained that 0:16:37.440 --> 0:16:40.600 they were, prior to his cuts, they'd be on track 0:16:40.720 --> 0:16:44.440 to to spend way more than they make. Um. Alright, 0:16:44.480 --> 0:16:46.440 s great stuff. I don't know, We're gonna I know 0:16:46.440 --> 0:16:48.680 we're gonna continue talking to you over the coming days 0:16:48.680 --> 0:16:51.560 and months and on this issue because it just seems 0:16:51.560 --> 0:16:53.480 to be the story that keeps on giving. Sarah Fryar 0:16:53.600 --> 0:16:56.320 she's a big tech team leader Bloomberg News. She's also 0:16:56.400 --> 0:16:59.000 the author of No Filter, the inside story of Instagram. 0:16:59.320 --> 0:17:02.640 She joins us on Zoom from San Francisco, talking lord 0:17:02.640 --> 0:17:08.000 elon Musk and a little testo, wellmore coming up. You're 0:17:08.080 --> 0:17:11.400 listening to Bloomberg Business Week with Carol Messer and Tim 0:17:11.440 --> 0:17:15.120 Stenovic on Bloomberg Radio. All Right, let's be honest here, 0:17:16.280 --> 0:17:21.040 stocks disaster bonds even more of a disaster like epic 0:17:21.080 --> 0:17:24.040 proportions disaster. Right, That's what the fixing come people tell me. 0:17:24.040 --> 0:17:27.399 They've they've never seen it ever. Don't even get started 0:17:27.400 --> 0:17:29.840 on crypto. Then, don't even get started on crypto. Let's 0:17:29.840 --> 0:17:33.080 talk about another kind of hot item with the kids. 0:17:33.119 --> 0:17:35.680 E t F S E t This is a surprising 0:17:36.359 --> 0:17:38.919 turn of events for E TFS, and I think Emily 0:17:38.960 --> 0:17:40.320 is going to explain it to us. All all right, 0:17:40.320 --> 0:17:43.000 I'm like geo. She's cross asset reporter for Bloomberg News, 0:17:43.280 --> 0:17:45.439 joining us here on our Bloomberg Interactive Broker studio. It's 0:17:45.480 --> 0:17:48.560 cross asset reporter, just another way to say et F 0:17:48.600 --> 0:17:53.280 reporter because you Hadi Greifeld. She's also a cross s reporter, 0:17:53.560 --> 0:17:55.240 but she talks a lot about E t F S. 0:17:55.440 --> 0:17:59.200 Cross asset is everything, every little thing, but E t 0:17:59.359 --> 0:18:01.680 F S does fall under our coverage and we love them. 0:18:01.800 --> 0:18:07.119 So how highs lows just give us a thirty foot picture. Okay, 0:18:07.160 --> 0:18:10.680 so thirty thousand foot picture. We obviously have had a 0:18:10.720 --> 0:18:13.639 bear market in stocks, but not every E t F 0:18:14.119 --> 0:18:16.879 has done poorly. The ones that you would imagine that 0:18:16.920 --> 0:18:20.680 have done well in the equity side, the energy linked stocks, 0:18:20.680 --> 0:18:23.520 the crypto linked ones have done poorly. But then when 0:18:23.520 --> 0:18:25.879 you look at the more are alternative space, the commodity 0:18:25.880 --> 0:18:28.480 funds have done really well, and then some hedge fund 0:18:28.680 --> 0:18:33.040 tracking hedge fund style et F. So the hedge fund 0:18:33.800 --> 0:18:37.000 hedge fund strategies one is a managed futures one. So 0:18:37.160 --> 0:18:40.639 that's a specific trend falling strategy. I know, Mike, you 0:18:40.680 --> 0:18:43.879 had Andrew Beer on your What Goes Up podcasts a 0:18:43.920 --> 0:18:50.080 few months ago, But that fund has done incredibly well 0:18:50.119 --> 0:18:53.080 this year. It's up about year to date. It's started 0:18:53.840 --> 0:18:56.920 two with about sixty million in assets and it crossed 0:18:57.000 --> 0:19:00.280 over one billion and just months. A lot of trust 0:19:00.359 --> 0:19:04.440 there in terms of flows into those kind of alternative strategies. 0:19:04.640 --> 0:19:07.000 What really shocked me though, is, you know, Paul and 0:19:07.080 --> 0:19:09.679 I were talking about how the I p O market 0:19:09.880 --> 0:19:13.560 was basically dead for good reason. Who wants to try 0:19:13.600 --> 0:19:16.520 to float in IPO in this market? But how many 0:19:16.560 --> 0:19:18.760 new ETFs. My eyes popped out of my head when 0:19:18.760 --> 0:19:21.159 I saw this. Yeah, so right now that tally is 0:19:21.240 --> 0:19:26.159 four hundred twenty two new e t and that's a record. 0:19:26.320 --> 0:19:28.720 We had a record last year. Emily has written about 0:19:28.720 --> 0:19:32.080 every one of them. Yes, every PR person has pitched 0:19:32.119 --> 0:19:34.159 me on the brand new ETF. But we had a 0:19:34.200 --> 0:19:36.560 record last year, and then this is another year which 0:19:36.600 --> 0:19:39.120 is surprising because you wouldn't think that any common theme 0:19:39.280 --> 0:19:42.000 among them. You know, I'm sure that they're not all 0:19:42.040 --> 0:19:45.600 exactly the same strategy, but any themes pop out. Well. 0:19:45.640 --> 0:19:49.880 There were a lot of interest rate hedging strategies. Everyone 0:19:49.920 --> 0:19:52.159 was trying to kind of figure out, like how do 0:19:52.240 --> 0:19:55.399 we position for the bear market in bonds? So some 0:19:55.480 --> 0:19:57.879 of them were more successful than other. Some of the 0:19:57.880 --> 0:20:01.320 funds were betting on the yield curve um steepening, and 0:20:01.359 --> 0:20:04.520 then some we're betting more on inflation depending on the 0:20:04.600 --> 0:20:06.720 kind of derivatives that they had in the fund. So 0:20:06.760 --> 0:20:08.119 it was a mixed bag for those. And then there 0:20:08.160 --> 0:20:10.200 were still a lot of E s G funds coming out, 0:20:10.440 --> 0:20:12.520 which was surprising given the year that E s G 0:20:12.640 --> 0:20:15.399 has had. But there is some appetite, at least on 0:20:15.400 --> 0:20:18.000 the issuer side to launch a fund with that kind 0:20:18.000 --> 0:20:19.360 of label in it. And I guess some of these 0:20:19.359 --> 0:20:21.720 are years in the making, so you know, you get 0:20:21.760 --> 0:20:24.800 them across the finish line when it's the right time 0:20:24.880 --> 0:20:28.600 or not. Another thing that really boggles my mind this 0:20:28.680 --> 0:20:33.320 year is cathy Woods Innovation Arc Innovation Fund had a 0:20:33.400 --> 0:20:36.800 very awful year. You know, those high growth tech stocks, uh, 0:20:36.920 --> 0:20:39.400 not so high on the profits. Yet Um just got 0:20:39.400 --> 0:20:42.040 collaborated this year. She actually had influence this year though 0:20:42.240 --> 0:20:45.840 she did yeah over one billion. Yeah. Well, I wonder 0:20:45.840 --> 0:20:49.360 what is that play out across that whole sort of growth, 0:20:50.080 --> 0:20:53.880 this tech innovation strategy or is it just her her 0:20:53.880 --> 0:20:56.200 special mojo? Do you think? I don't have the details 0:20:56.200 --> 0:20:59.640 of every single tech et F, but I do know 0:20:59.720 --> 0:21:03.840 that there are fans that just they love arc they 0:21:03.880 --> 0:21:05.760 want to hold on. I was actually talking about it 0:21:05.800 --> 0:21:07.639 with the source this morning who was kind enough to 0:21:07.640 --> 0:21:10.720 take my call on Christmas eve eve Um, who was 0:21:10.760 --> 0:21:13.280 saying that there are these people that she has a 0:21:13.280 --> 0:21:16.520 long term thesis. They feel like they're making the right 0:21:16.560 --> 0:21:19.440 call by investing for the longer terms. So even though 0:21:19.440 --> 0:21:23.800 the fund has fallen there, they're still interested in this innovation. 0:21:24.040 --> 0:21:28.240 What is an active e t F fund? So an 0:21:28.280 --> 0:21:31.800 active e t F Normally when retail investors think of ETFs, 0:21:31.920 --> 0:21:34.879 they usually think of funds at track indexes, index funds 0:21:34.880 --> 0:21:37.840 passive strategy. But we're seeing the growth of e t 0:21:38.040 --> 0:21:42.760 fs that have active managers that actively buy and sell 0:21:42.880 --> 0:21:46.280 and change the waitings of different stocks. And so what 0:21:46.440 --> 0:21:49.520 we've really seen this year in two is these large 0:21:50.000 --> 0:21:54.600 legacy asset managers companies that are known for their actively 0:21:54.640 --> 0:21:58.080 managed mutual funds. Launching et F s. Capital Group was 0:21:58.160 --> 0:22:01.760 the big cahuna this making with the still the low 0:22:01.880 --> 0:22:05.159 cost structure that makes ETFs the cool thing most of 0:22:05.200 --> 0:22:08.439 the time. The active e t fs are lower fee 0:22:08.520 --> 0:22:10.960 than the mutual I have to say the manager, which 0:22:11.040 --> 0:22:13.840 was the whole part of the lower fees was there's 0:22:13.880 --> 0:22:15.440 nobody really I had to pay and have to pay 0:22:15.440 --> 0:22:18.959 some start portfolio. Yeah, the fee, it's it's lower than 0:22:19.000 --> 0:22:21.760 the mutual fund, but it's it's more expensive than a 0:22:21.840 --> 0:22:24.440 passive E t F across the for the most part, 0:22:25.119 --> 0:22:28.800 Emily smart to call sources on two days before Christmas. 0:22:29.119 --> 0:22:30.639 You might get them with a few egg nogs and 0:22:31.119 --> 0:22:32.600 you know, I'll tell you a little bit more than 0:22:32.920 --> 0:22:35.880 they had planned. But but Emily, you know, there's so 0:22:35.920 --> 0:22:39.560 many players in the E t F space now, um 0:22:39.720 --> 0:22:41.800