Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business, finance and tech news as it happened. Bloomberg
Speaker 1: Business Week with Carol Messer and Tim Stinovic on Bloomberg Radio. Hi, everyone,
Speaker 1: welcome to the weekend edition of Bloomberg Business Week. This
Speaker 1: week it is the year Ahead issue, the major trends, disruptions,
Speaker 1: breakthrough products, innovations and movements to watch in the coming year.
Speaker 1: By the way, it's an opener if you will to
Speaker 1: this week's Bloomberg Live event happening in Davos, which is
Speaker 1: also occurring as the World Economic Forum hosts its annual
Speaker 1: meeting there, and of course we will have full coverage
Speaker 1: from Switzerland throughout the week on all of our Bloomberg platforms.
Speaker 1: We're not going there right now. I just couldn't squeeze
Speaker 1: it in this year. Okay, just making sure I haven't
Speaker 1: booked the play. I want to make sure. Ahead on
Speaker 1: this program, we're going to dive into Business Week's annual
Speaker 1: list of the fifty companies to watch over the next
Speaker 1: twelve months. Are we such a cool list? We're also
Speaker 1: going to break down a critical year for both the
Speaker 1: global travel and automobile industries as part of the magazines
Speaker 1: look at the consumer, you know me, you tim everybody
Speaker 1: out there, Well, then examine Silicon Valleys, changing business landscape
Speaker 1: when it comes to digital advertising and alongheld duopoly that
Speaker 1: is under a lot of pressure more than ever from
Speaker 1: tech rivals both big and small, but have become really
Speaker 1: valuable for advertisers. And not only are they valuable, but
Speaker 1: they're also accessible not only to the big advertisers UM,
Speaker 1: but also to small businesses, which were kind of the
Speaker 1: bread and butter of the meta and alphabets UM advertising business.
Speaker 1: So that first subset, I think is the big one.
Speaker 1: These e commerce UM retailers who are adding ads for
Speaker 1: businesses and really sniping some of that share which started
Speaker 1: during COVID when everyone was online, and now it seems
Speaker 1: like they're really going to push forward. In Blessed, we'll
Speaker 1: find out just how tough employers around the country are
Speaker 1: being on their workers when it comes to returning to
Speaker 1: the office. Look, we're here every day. Certainly increasingly we're
Speaker 1: starting to hear more more companies are requiring their at
Speaker 1: least employees to come in three to four days a week, like, hey, team,
Speaker 1: remember us, come on back in such a difference than
Speaker 1: before the pandemic. And then later in the program, we're
Speaker 1: gonna talk with the head of a cutting edge aviation
Speaker 1: company that sees fully autonomous flight as the future. How
Speaker 1: do you feel about that? Um, not there yet? Okay,
Speaker 1: me neither. All of that to come. We begin with
Speaker 1: Stephanie Flanders. She is Bloomberg News Senior executive editor for
Speaker 1: Economics and Government. She's in from London this week at
Speaker 1: our global headquarters in New York, and also found some
Speaker 1: time depend the cover story in the Year Ahead issue.
Speaker 1: It's an essay breaking down why we can all expect
Speaker 1: the global economy to be nothing short of a wild ride. Well,
Speaker 1: let's talk about the Year Ahead, because you write about
Speaker 1: these three pillars that kind of held together the global
Speaker 1: economy was helpful to have low rates, but it was
Speaker 1: also helpful to have a kind of a conflict free world,
Speaker 1: you know, notwithstanding some minor conflicts here and there. And
Speaker 1: then also, of course energy prices were kept low for
Speaker 1: quite a while. If we look back on those pillars
Speaker 1: are kind of crumbled, Yes, And that's what I was thinking.
Speaker 1: So what's useful about doing this exercise for for Business Week,
Speaker 1: and I have done it a few years now. Is
Speaker 1: you sort of obviously you're quite caught up in especially
Speaker 1: these days, on exactly what's going to happen to the
Speaker 1: economy this year? And are we going to get heads
Speaker 1: around inflation? Is the FED going to stop tightening? But
Speaker 1: you also want to step back and think, Okay, what
Speaker 1: how is the world fundamentally changed? And I think this
Speaker 1: was one of those years where I thought, Wow, we
Speaker 1: really have had these fundamental assumptions underpinning maybe thirty forty
Speaker 1: years of global economic history, certainly my lifetime of thinking
Speaker 1: about economics and thinking about the world, all having kind
Speaker 1: of been kicked away over the last couple of years.
Speaker 1: It's not just cheap energy prices, it's not just cheap
Speaker 1: labor costs and transportation costs, and as you said, the
Speaker 1: sort of friction free period for geopolitics at least when
Speaker 1: it came to you know, am I going to find
Speaker 1: it fairly easy to set up a complicated supply chain
Speaker 1: in Asia or China? And all of that has gone away?
Speaker 1: And then on top of all that, you know, you
Speaker 1: kind of every time any one of those pillars was
Speaker 1: sort of shaky. You always had the FED put right,
Speaker 1: You always had the FED there um super easy money,
Speaker 1: kind of free money to make everything still make the
Speaker 1: numbers still add up. And when you start looking ahead
Speaker 1: and thinking, okay, if if, if those have gone in
Speaker 1: quite a lasting way, decoupling whatever you want to call it,
Speaker 1: as well as potentially kind of higher interest rates sticking
Speaker 1: around for a while, you know that that could mean
Speaker 1: something quite fundamental, not just for economic growth, but also
Speaker 1: for global politics. You know, we talk about pivots, and
Speaker 1: I do think about Stephanie. Is it just a case
Speaker 1: of a reset, certainly here in the United States, but elsewhere,
Speaker 1: this whole idea of cheap money no more? Yeah, And
Speaker 1: I think, I mean, as you know, I'm normally in London,
Speaker 1: and that the sheer pace of change there has been extraordinary.
Speaker 1: I mean, people, you know, the different between getting a
Speaker 1: mortgage in July and getting it in September, partly thanks
Speaker 1: to the sort of craziness we had in Parliament, but
Speaker 1: actually not just that you had rates double or treble.
Speaker 1: In many cases, people are going to be going up
Speaker 1: in the next few months, renegotiating their mortgages and going
Speaker 1: from a one percent rate to six and they're going
Speaker 1: to fail their affordability tests and you know, so, yeah,
Speaker 1: we don't know how that's going to play out. Well,
Speaker 1: how do you think about this? Like this whole idea
Speaker 1: of the Fed still thinks they're going to get down
Speaker 1: to two percent right in terms of inflation, and that
Speaker 1: that's their target. There are many people say, no, way,
Speaker 1: things have changed dramatically. How do you think about that globally?
Speaker 1: Like has something is a different this time around? Is
Speaker 1: there kind of a new rate because of some global
Speaker 1: macro forces that have changed forever? Yeah? I think so. There's,
Speaker 1: as you know, a big debate about this, and there
Speaker 1: are plenty of economists on both sides as always, so
Speaker 1: we can keep up the keep up the debate. But
Speaker 1: I think, um, it's gonna I think this year it's
Speaker 1: going to depend quite a lot on China. So you
Speaker 1: have the very rapid reopening actually may be unhelpful to
Speaker 1: the j pals of this world, because, as you know,
Speaker 1: we could then see maybe an extra one percentage point,
Speaker 1: maybe an extra two percentage points on global inflation just
Speaker 1: because of faster China growth and higher energy prices from that.
Speaker 1: But looking further ahead. Has there been a more fundamental
Speaker 1: shift between the relationship between unemployment and wages. You know,
Speaker 1: we've had all these years where you had super low unemployment,
Speaker 1: you know, very tight labor market, but wages didn't budge.
Speaker 1: Now you know, the dam is kind of broken, and
Speaker 1: you have got these much bigger wage rises coming down
Speaker 1: the track in many countries. If they get locked in,
Speaker 1: then you're right, you know, we're in a we're in
Speaker 1: a different world. You right, at the end of the
Speaker 1: piece that the microeconomic trend for three is going to
Speaker 1: be near shoring the idea of untangling some of these
Speaker 1: supply chains that companies have spent a generation building as
Speaker 1: they've gotten concerned about, Okay, maybe COVID zero in China
Speaker 1: or trade relationships with countries including China. Um, how do
Speaker 1: you think that's going to continue to play out? Because
Speaker 1: at the same time, it does seem like labor is
Speaker 1: so you know, you don't want to you don't want
Speaker 1: to unravel too much in a company like Apple, for example,
Speaker 1: is so inextricably bound to a to a country like
Speaker 1: Chinel And I actually think that's one of the fundamental tensions,
Speaker 1: and that's actually it's why I've I've set up a
Speaker 1: whole squad. Now I've got control of the economics and government.
Speaker 1: Here at Bloomberg, We've got a geoeconomic squad precisely because
Speaker 1: the economics and the politics is really kind of coming
Speaker 1: into inter tention at the moment. I don't think any
Speaker 1: of these big companies wanted niche near shore, particularly, it
Speaker 1: wouldn't be their first choice. They certainly it wouldn't be
Speaker 1: their choice to come out of China, and they're resisting
Speaker 1: that in many areas. But they're also looking at the
Speaker 1: riding on the wall. But as the geopolitical trends that
Speaker 1: we talked about from the last thirty years have gone
Speaker 1: into reverse, you know, the politicians in a sense and
Speaker 1: no longer on the side of closer and closer integration
Speaker 1: and globalization. So I think businesses for the first time
Speaker 1: in a long time, have to reckon with you know,
Speaker 1: if you like the kind of a current of history
Speaker 1: running against them. You know, whereas previously, you know, in
Speaker 1: most places people wanted to make things easier for global business,
Speaker 1: that's not the case. Now you've got President Biden, You've
Speaker 1: got politicians all around the world actively making their lives harder.
Speaker 1: Um it feels kind of glum if you're not alone.
Speaker 1: Even the good news in China is exactly like and
Speaker 1: there's a lot of individuals. So maybe it's not so
Speaker 1: great in the first half better in the second half.
Speaker 1: But I think there's a lot of debate over that too.
Speaker 1: Could things actually come in better? Could the US fear
Speaker 1: better too than the rest of the world. Are are
Speaker 1: a lot of the world. Yeah, and actually I even
Speaker 1: say that there. I think there's a scenario which says, um,
Speaker 1: the US dodges recession or has a very shallow recession.
Speaker 1: Even in the Eurozone it's looking like I don't think
Speaker 1: my optimism extends to the UK at last, but in
Speaker 1: the Eurozone it's looking like it's going to be a
Speaker 1: very shallow recession, and quite a lot of the country's
Speaker 1: may even dodge a formal recession. If we get to
Speaker 1: the end of the year and central banks have also
Speaker 1: kind of have basically got control of inflation, and that
Speaker 1: we are within sight of two, then as I say,
Speaker 1: at the end of the piece, everything does become a
Speaker 1: bit easier. You know, we may still have these structural trends,
Speaker 1: these question marks, but it's on a slower burn and
Speaker 1: you're not talking about these relationships, just kind of going
Speaker 1: up in smoke. Definitely. Does it feel since you've said,
Speaker 1: you've done this a couple of times for Business Week,
Speaker 1: kind of setting what the economic outlook is for the year,
Speaker 1: does it how does it feel different from last year?
Speaker 1: Do you remember, like does it feel more certain or
Speaker 1: still uncertain? But different debates. I think the fundamental sort
Speaker 1: of narratives are actually clearer, and actually going back to
Speaker 1: that point of geoeconomics, I sort of feel like I
Speaker 1: know what the story is or what the different elements
Speaker 1: of the story are going forward, But of course I
Speaker 1: never know what's going to happen, and that's what makes
Speaker 1: life so interesting. Okay, thirty seconds just to enter on
Speaker 1: Russia's invasion of Ukraine. I think it's been a monster
Speaker 1: a full year. At the end of February and thirty
Speaker 1: seconds again, Stephanie, I mean, how does this How does
Speaker 1: this play out in Europe? I would say one positive.
Speaker 1: I mean, of course it's a massively negative event for
Speaker 1: the continent to have a war on its on its shores.
Speaker 1: But the way that Europe has hung together, not just
Speaker 1: the governments but the people, I think is a source
Speaker 1: of inspiration and potential optimism. We'll just we'll see how
Speaker 1: whether they managed to carry that forward. That was Bloomberg
Speaker 1: News Senior Executive Editor for Economics and Government, Stephanie Flanders
Speaker 1: on the cover story for three Year Ahead issue coming up,
Speaker 1: from eBay to Porsche, the select group of global stocks
Speaker 1: to keep an eye on this year, for better or
Speaker 1: for worse. The fifty is the real deal. And what
Speaker 1: what basically um the team of of analyst at Bloomberg
Speaker 1: Intelligence does is take that two thousand plus companies and
Speaker 1: push it through Excel sheets and it spits out a
Speaker 1: couple of dozen companies that we really want to kind
Speaker 1: of talk about. It's a great little mix of companies
Speaker 1: that we just think are going to have interesting years.
Speaker 1: More from the Year Ahead issue. You're listening to Bloomberg
Speaker 1: Business Week. This is Bloomberg. Please sees Bloomberg Business Week
Speaker 1: with Carol Messer and Tim Stinebec from Bloomberg Radio. The
Speaker 1: latest issue of Bloomberg Business Week magazine. It is out now,
Speaker 1: It's online on newsstands, of course, always on the Bloomberg terminal.
Speaker 1: It's the annual Erahead issue. Right now, though we're going
Speaker 1: to talk about one of the favorite features of this
Speaker 1: issue the fifty Companies to Watch. The team at Bloomberg
Speaker 1: Intelligence tracks some two thousand companies and sectors, ranging from
Speaker 1: communications and commodities to finance and food. B I has
Speaker 1: identified a select group of fifty that weren't a closer
Speaker 1: look this year based on a list of focus ideas,
Speaker 1: which combine contrarian views and upcoming catalyst for change. You
Speaker 1: know to what our analysts do is they consider factors
Speaker 1: such as growth prospects, resilience in an inflationary environment, changes
Speaker 1: in the C suite, and plans for new products and services.
Speaker 1: The team also weighs in on external conditions such as
Speaker 1: Russia's war in Ukraine, challenges in the tech supply chain,
Speaker 1: and the continuing effects of the COVID nineteen pandemic. Bloomberg
Speaker 1: te Levision in radio markets. Correspondent Creedy Goopda and I
Speaker 1: caught up with a Business Week Solutions and Strategy Senior
Speaker 1: editor Rebecca Penty, as well as the editor of the magazine,
Speaker 1: Joel Webber to break down the list and also to
Speaker 1: better understand exactly how Bloomberg Intelligence narrows this field. Carol,
Speaker 1: it's a feat what they do on in a given day.
Speaker 1: And one of the things that we've long done with
Speaker 1: them is this project which culminates, Uh it's it's actually
Speaker 1: like months in the making and then culminates with the
Speaker 1: publication of the list. We've also gone on and done
Speaker 1: quarterly installments, um that we now do. So this is
Speaker 1: fifty companies to watch for the year. But you'll hear
Speaker 1: us come back and ahead of every quarter will tell
Speaker 1: you companies to watch this quarter. Um. But the fifty
Speaker 1: is the real deal. And what what basically, um, the
Speaker 1: team of of analyst at Bloomberg Intelligence Intelligence does is
Speaker 1: take that two thousand plus companies and push it through
Speaker 1: Excel sheets and it spits out, uh, just a couple
Speaker 1: of dozen company is that we really want to kind
Speaker 1: of talk about. And we can't tell you these are
Speaker 1: bys and cells that we're not gonna do anything, um
Speaker 1: that foolish with that much conviction. But we can look
Speaker 1: at hindsight as the measure of that. Yeah, exactly, that's
Speaker 1: what hindsights for right. Um. We we look we call
Speaker 1: this watch because some of them we expect will i'll
Speaker 1: perform and others might lack. And so it's a great
Speaker 1: little mix of companies that we just think are going
Speaker 1: to have interesting years. Um. Rebecca was one of the
Speaker 1: Business Week editors who worked closely with b I to
Speaker 1: come up with that list and refine it and turn
Speaker 1: it into the magic that it is. Rebecca, I'm curious,
Speaker 1: what was the company that m was your was the
Speaker 1: one that you liked the most on the list? Well?
Speaker 1: I think Disney and Um, it was interesting. You know,
Speaker 1: b I has these focus ideas and they you know,
Speaker 1: basically they're they're high conviction ideas of companies where they
Speaker 1: think the market is not recognizing something about the me
Speaker 1: and so either the markets under valuing overvaluing, and Disney
Speaker 1: was one of them that was really beat up during
Speaker 1: the pandemic and you know, continues to be beat up
Speaker 1: once recession risks started looming because of all their theme parks.
Speaker 1: And the thing that was so interesting for me is
Speaker 1: that b I had this conviction that, you know, Disney
Speaker 1: is really poised for a rebound um due to restructuring
Speaker 1: and accelerating stream strategy. And we'd already landed on Disney
Speaker 1: as a company, and then the announcement of Bob Biker's
Speaker 1: return as CEO and and so that just reinforced the
Speaker 1: view from b I that this is the company to watch,
Speaker 1: and I think you know, the bi's view that it
Speaker 1: could be a tale of two halves for for Disney,
Speaker 1: where you know the second half is the stronger of
Speaker 1: the two. Okay, Well, if you're gonna talk about Disney,
Speaker 1: we should talk about Netflix. Um because Netflix also on
Speaker 1: the list. Why why did Netflix make it H In
Speaker 1: that same conversation, since obviously it's been the dominant streaming
Speaker 1: video provider. Yeah, that's true. And I think this is
Speaker 1: an interesting one where um B I zeroing in on
Speaker 1: Netflix is adds supported pricings. Here. For the longest time,
Speaker 1: it's been a company that's dependent on UM subscriptions but
Speaker 1: not advertising, and so ba's view is that the market
Speaker 1: isn't fully recognizing the additional revenue and sales growth that
Speaker 1: could come from that advertising, which which they see as
Speaker 1: supporting higher average revenue per user and offsetting cantaly ization
Speaker 1: of subscription revenue from customers downgrading to cheaper plans. Okay,
Speaker 1: so worth mentioning that to US companies, perhaps you've heard
Speaker 1: of them? Right. The other thing I love about this project, though, Rebecca,
Speaker 1: is how global it is. Right. So, in addition, to
Speaker 1: some marquee American names, tell us about ones that people
Speaker 1: outside of the US might not even heard of. Yeah,
Speaker 1: this one was an interesting one for me. I think,
Speaker 1: you know, we often hear about China being, you know,
Speaker 1: the world's manufacturing center, but we don't often know the
Speaker 1: names of the companies that make the stuff that we use.
Speaker 1: And one of the ones featured here is t s
Speaker 1: m C. It is the world's largest semiconductor foundry. And
Speaker 1: you know, with with the recession looming with with um,
Speaker 1: the economy taking a beating, worldwide chip making is slowing down.
Speaker 1: But Bluever Intelligence view is that t s MC is
Speaker 1: placed to better weather the cyclical market downturn than it's
Speaker 1: piers because of its dominant industry position. Yeah, I mean
Speaker 1: it is a juggernaut, right yeah, joel Um, what about
Speaker 1: your favorite on this list? Okay, well, I'll stick with
Speaker 1: tech Um and I'm gonna I'm gonna say sons Um,
Speaker 1: the little speaker company that could. Yeah, it's truly, as
Speaker 1: we say in the blurb, it is a David versus
Speaker 1: Goliath moment. There's a patent case. It's been wrestling with
Speaker 1: Google for a really long time. As we write, b
Speaker 1: I is optimistic. Optimistic SONS will succeed in the dispute,
Speaker 1: which goes to a jury trial in May. Uh. This
Speaker 1: has been a long time coming. Uh, this showdown has
Speaker 1: been it's years in the making. UM. Sos UH has
Speaker 1: has has had its share of some challenges. If your
Speaker 1: son NOS user like I am, there's some software decisions
Speaker 1: that will make you pull your hair out, like that
Speaker 1: app which app because there's multiple apps actually in order
Speaker 1: to use different devices that don't talk to each other always.
Speaker 1: You know, is there more to talk about here? Yes?
Speaker 1: There is. But so I like this s NOS one, UM,
Speaker 1: but you know that's another American company. We've done tech
Speaker 1: a little bit now, Rebecca, what's another international company that
Speaker 1: that jumped out to you? Okay, I'm just looking down
Speaker 1: the list, which was Porch. Let's talk about Porsche exactly,
Speaker 1: which I thought. So this company went public this year
Speaker 1: w span out, which is just also just an incredible
Speaker 1: I p O. But now they actually have to, like,
Speaker 1: you know, make some evs and autos I think are
Speaker 1: just a really interesting kind of your head story. We're
Speaker 1: seeing obviously the pressure on Tesla and we're going to
Speaker 1: have more automakers sort of show up and an attempt
Speaker 1: to hit velocity like Tesla's proven. Um what what what
Speaker 1: a successful company can look like? And now they have
Speaker 1: to like wade through some challenges. If I could just
Speaker 1: throw one quick one back in there. You talked a
Speaker 1: lot about companies that are poised to do well on
Speaker 1: the e V game. One of them that is maybe
Speaker 1: poised to fair worse off is Aliston Transmission. UM another
Speaker 1: US company. Uh, it's a truck transmission supplier. And what
Speaker 1: you may have heard about EVS is that you know,
Speaker 1: it's not just regular cars, it's also trucks. So there's
Speaker 1: heightened competition in that truck space, which is going to
Speaker 1: be at some pressure to Alison Transmission. That was Bloomberg
Speaker 1: Business Week Solutions and Strategy Senior editor Rebecca pent and
Speaker 1: once again the editor of the magazine, Joe Weber. Bloomberg
Speaker 1: TV and Radio is Crety Gupta with us there as well.
Speaker 1: And we should note that Rebecca mentioned Walt Disney at
Speaker 1: the top of our conversation. You know, already this past
Speaker 1: week we saw the company prepping for a challenge from
Speaker 1: activist investor Nelson Pelts and also naming Mark Parker as
Speaker 1: its new chairman. Still ahead on Bloomberg Business Week, from
Speaker 1: the consumer facing firms to Silicon Valleys elite. Many iconic
Speaker 1: American companies are facing headwinds in the year ahead. Twenty
Speaker 1: three is going to be defined more about how consumers
Speaker 1: sort of, you know, what's the new normal for consumers.
Speaker 1: In other words, you know, lots of things changed. You
Speaker 1: obviously returned to work, you know it's been an issue,
Speaker 1: but also how people want to shop, how people want
Speaker 1: to consume. You know, what people are willing to spend on,
Speaker 1: and the way the consumer behaves is a lot different
Speaker 1: than than and so we want to capture that, and
Speaker 1: so we tried to sort of take a look at
Speaker 1: a number of areas. This is Bloomberg Broadcasting from the
Speaker 1: financial capital of the World, Bloomberg he Love in Frio
Speaker 1: in New York, to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one oh six one to San Francisco, Bloomberg nine
Speaker 1: six to the country Sirius XM Chado one nine team,
Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Business Week with Carol Messer
Speaker 1: and Tim Stanovac from Bloomberg Radio our coverage of the
Speaker 1: yearhead issue continues with a look at companies in the
Speaker 1: consumer space. The magazine taps into starbucks, unhappy New Year,
Speaker 1: the return of the jumbo jet, and the abrupt cratering
Speaker 1: of the used car market. With a round up, we
Speaker 1: turned to Bloomberg Business Week Assistant Managing editor Jim Ellis.
Speaker 1: While the pandemic sort of defined last year, how our
Speaker 1: sort of come back from the pandemic, this year um
Speaker 1: is going to be defined more about how consumed or
Speaker 1: is sort of you know, what's the new normal for consumers?
Speaker 1: In other words, you know, lots of things changed. You
Speaker 1: obviously returned to work, you know, it's been an issue,
Speaker 1: but also how people want to shop, how people want
Speaker 1: to consume, you know, what people are willing to spend on,
Speaker 1: and the way the consumer behaves is a lot different
Speaker 1: than than and so we want to capture that. And
Speaker 1: so we tried to sort of take a look at
Speaker 1: a number of areas. You know, one I was obviously entertained.
Speaker 1: It was travel because it's something I love, but it's
Speaker 1: also something that was really really knocked during the pandemic.
Speaker 1: So I knew that was something we wanted to get
Speaker 1: into and also there were a lot of management shifts
Speaker 1: that happened over the uh pandemic period, and a lot
Speaker 1: of it was because of the way the consumers were
Speaker 1: changing what they wanted to do a good A good
Speaker 1: example that was Starbucks simply because China was a big
Speaker 1: piece of its business. China was going to do, um,
Speaker 1: you know, not behave this year the way it did before.
Speaker 1: And also they were involved in a unionization drive that
Speaker 1: really picked up steam over the course of the pandemic,
Speaker 1: so that I knew I wanted that in there. So
Speaker 1: I went sort of just trying to choose things that
Speaker 1: I thought if I was a consumer, what would I
Speaker 1: care about? Now? I love that you guys say when
Speaker 1: it comes to Starbuck in the section Starbucks, excuse me,
Speaker 1: could really use some caffeine this year, And well they're
Speaker 1: getting it in the likes of bringing back Howard Schultz,
Speaker 1: so connected obviously with this company. It's like the old
Speaker 1: leaders are all coming back Disney Tiger, but tell us, UM,
Speaker 1: they've also got what another They've got a new CEO
Speaker 1: who's coming in UM who will work with Howard Schultz.
Speaker 1: We'll see how that works out. But that oh yeah,
Speaker 1: so UM, you know when he's coming. He was the
Speaker 1: former CEO of wreck It. And the thing is that,
Speaker 1: you know, he was very he was successful there. The
Speaker 1: problem is that it's a very different type of business.
Speaker 1: This is a this is a true consumer business that
Speaker 1: sells and you know, sort of sells food and drink
Speaker 1: in restaurants. Regt sells you know, condoms and other things.
Speaker 1: But um, it's sanitizing, sanitiz and yeah, but I mean
Speaker 1: it's consumer products, but they're not the same thing as
Speaker 1: selling at retail. And so that's the real challenge. He's
Speaker 1: gonna have to learn that job at the same time
Speaker 1: that it has a big, big challenge in unionization of
Speaker 1: its stores. And also China, which is its second most
Speaker 1: important market, is still not back to normal. That's also
Speaker 1: supposedly the big growth market of Starbucks, and they hope
Speaker 1: that you know, they're gonna have nine thousand stories there
Speaker 1: or something in a few years. You know, that's gonna
Speaker 1: be a real lift given that China is still not
Speaker 1: fully back from the pandemic. And this guy has to
Speaker 1: figure out how to pull all this off at the
Speaker 1: same time that his predecessor, how Schultz, is still remaining
Speaker 1: on the board and often founders, you know, sort of
Speaker 1: they tend to be sort of hands on, and especially
Speaker 1: a founder like Schultz who has already, you know, had
Speaker 1: the CEO's job three times. He's already gotten rid of
Speaker 1: two people before a point, I gotta talk planes. Jumbo
Speaker 1: Jets important kind of, I feel like to all the
Speaker 1: carriers and well, but we previously thought they were no
Speaker 1: longer important. We said, oh my god, jumbo jets. They've
Speaker 1: got four engines. They you know, they gobble up all
Speaker 1: this fuel. So therefore we moved beyond that. And so
Speaker 1: we saw all these new sort of what they call
Speaker 1: new generation planes, the UH seven seven seven X, the
Speaker 1: A three fifty I mean planes, and the dreamline planes
Speaker 1: that were supposedly able to do with two engines everything
Speaker 1: that the old jumbos like the seven forties seven and
Speaker 1: the double deck A three eight could do. And the
Speaker 1: problem is that, um, you know, we've sort of retired
Speaker 1: a lot of those planes, and now demand is jumped
Speaker 1: back and they say like, oh my god, we need
Speaker 1: we need big planes, and we need big planes with
Speaker 1: big first classes all right, plane skipping trains, automobiles, the
Speaker 1: youth car market man that was on fire during the
Speaker 1: pandemic and right after and now it feels like not
Speaker 1: so much. Yeah, I mean, used car cars were a
Speaker 1: real sort of boom time during the pandemic. What happened
Speaker 1: was that because the new car business um UH was
Speaker 1: really constrained because of chips, because of the shutdowns and
Speaker 1: auto plants in different parts of the world, um prices
Speaker 1: went up on new cars because there was no you know,
Speaker 1: there was no supply. And what that meant was a
Speaker 1: lot of people couldn't afford new cars and so they said, Okay,
Speaker 1: I'll buy something on the use line, and that sent
Speaker 1: used car prices soaring. The problem for the used car
Speaker 1: business now is that in the last you know, six months,
Speaker 1: you know, new cars have come back. You can get
Speaker 1: them on the lots again. You don't have these long
Speaker 1: waiting periods, and so the prices of youth have dropped.
Speaker 1: And what that means is for people like CarMax and
Speaker 1: for Carbonna, people's business is heavily skewed toward that you know,
Speaker 1: they suddenly are you know, they don't have the demand,
Speaker 1: but also the values of the cars that they have
Speaker 1: have in stock are dropping. Thanks to Bloomberg Business Week
Speaker 1: Assistant Managing editor Jim Ellis. Check out the new issue.
Speaker 1: There's also a story about Hollywood's come back. Yere Now
Speaker 1: to another area of the economy set for upheaval, the
Speaker 1: massive and increasingly crowded digital advertising market. Writing about a
Speaker 1: potential changing of the guard in the technology section is
Speaker 1: Bloomberg News tech reporter Alex Brenka. Once upon a time
Speaker 1: there was a duopoly, and then some of the biggest
Speaker 1: competitors arrivals in the Kingdom decided they liked what Alphabet
Speaker 1: and Meta had. So when you look out in three
Speaker 1: um in terms of the digital ad market, which again
Speaker 1: as a reminder, this is the money machine that basically
Speaker 1: funds the internet. Meta and Facebook and Instagram and Alphabet
Speaker 1: and it's Google and YouTube have really owned this space
Speaker 1: as you mentioned for a long time. But this year
Speaker 1: we have some folks pushing in with a lot of gustos,
Speaker 1: some rivals and competition that are huge, uh names like
Speaker 1: Amazon and Walmart and Target. And I want to spend
Speaker 1: a moment on that group, because this e commerce set
Speaker 1: is is probably, um you know, one of the most threatening.
Speaker 1: They have started to a lot ads on the places
Speaker 1: where folks like you and I buy things, So right,
Speaker 1: at that moment where we're making a decision that have
Speaker 1: become really valuable for advertisers. And not only are they valuable,
Speaker 1: but they're also accessible not only to the big advertisers UM,
Speaker 1: but also to small businesses, which were kind of the
Speaker 1: bread and butter of the meta and alphabets UM advertising business.
Speaker 1: So that's first subset I think is the big one,
Speaker 1: these e commerce UM retailers who are adding ads for
Speaker 1: businesses and really sniping some of that share which started
Speaker 1: during COVID when everyone was online, and now it seems
Speaker 1: like they're really going to push forward in well all right,
Speaker 1: so Alex, that's a big part of it, right, the
Speaker 1: competition for the digital ad market that pie right, everybody's
Speaker 1: there's more people going after that pie. That's one thing.
Speaker 1: But what about the impact still that changed by the
Speaker 1: Apple policy when it comes to privacy, is that's still
Speaker 1: you know, a bit of a sting for some of
Speaker 1: these big players, definitely a staying so um just to
Speaker 1: at everyone up to speed. Apple change their policy basically
Speaker 1: gave users the ability to opt out of what information
Speaker 1: to share it with advertisers. That made it much more
Speaker 1: difficult for folks like meta and Alphabet to track the
Speaker 1: effectiveness of their ads and also to target people. And
Speaker 1: I mentioned those small businesses. A lot of those small
Speaker 1: businesses who built their businesses advertising on social media, they're
Speaker 1: the ones who took a really big hit here. So
Speaker 1: Apple kind of made that swipe, made it more difficult,
Speaker 1: made the ads less effective for Alphabet and Meta. And now,
Speaker 1: you know, Bloomberg's reported that they're starting to add ad
Speaker 1: offerings of their own. So on the back of you know,
Speaker 1: this hangover from the changes Apple made, on the back
Speaker 1: of a really kind of choppy economic year where it
Speaker 1: seems like the digital ad market might not be growing forever,
Speaker 1: you then have all of these rivals pushing in to
Speaker 1: kind of take advantage of the stumble that Meta and
Speaker 1: Alphabet had in two What is the one company that
Speaker 1: could be the biggest competitor too, you know, Alphabet and Meta.
Speaker 1: I mean, I guess apart from TikTok, I think that
Speaker 1: Amazon is kind of this one that looms large. Right. Um,
Speaker 1: you mentioned Netflix, you mentioned some of them, you know,
Speaker 1: the video streaming services. That's a smaller, kind of newer
Speaker 1: way of advertising that's starting to open up for small businesses.
Speaker 1: But the vast majority of folks who spend money to
Speaker 1: get their stuff seen by customers online are going to
Speaker 1: be small businesses, and Amazon has really done the most
Speaker 1: and they have the biggest audience. UM, that's really an
Speaker 1: attractive lore for businesses to advertise that you know you're
Speaker 1: right there where somebody is making a purchasing decision, and
Speaker 1: you're basically guaranteeing your stuff is going to get in
Speaker 1: front of the folks who are most likely to check out.
Speaker 1: Bloomberg News technology reporter Alex Brinko with us. Check out
Speaker 1: our full story it's in the yearhead issue and the
Speaker 1: full interview on our business Week podcast feed. You are
Speaker 1: listening to Bloomberg Business Week up next, where the return
Speaker 1: to the office push stands entering the new year. Castle
Speaker 1: Systems chairman Mark Ein joins us. This is Bloomberg. You're
Speaker 1: listening to Bloomberg Business Week with Carol Messer and Tim
Speaker 1: Stinovic from Bloomberg Radio. What will the year ahead mean
Speaker 1: for working from home, being in the office and that
Speaker 1: hybrid work that we've been hearing about for so long.
Speaker 1: Hard to say, but one thing Tim and I can
Speaker 1: definitely say is that the New York City subway ridership
Speaker 1: recently hit a post pandemic high of nearly four million.
Speaker 1: We're still a far cry from the more than five
Speaker 1: and a half million riders who wrote each day pre pandemic.
Speaker 1: But Tim, the trend is definitely moving in the right direction,
Speaker 1: and that means more crowded trains. We're seeing that firsthand. Yeah,
Speaker 1: I am standing room only a lot of the trains
Speaker 1: to and from the office. So are people actually going
Speaker 1: back to the office? And what do have in store?
Speaker 1: Mark and his chairman of Castle Systems. His company provides
Speaker 1: security services for offices here in the US. Think of
Speaker 1: swiping your badge when you go into the office. Mark
Speaker 1: joined with some insight and of course some data. So look,
Speaker 1: I think we do have to keep this in perspective.
Speaker 1: From the beginning of twenty two to the end of
Speaker 1: twenty two, the average utilization of office space nearly doubled.
Speaker 1: We started the year in the mid twenties and we
Speaker 1: ended the year near fift on a national average. So well,
Speaker 1: sometimes it feels like it's not fully back to normal.
Speaker 1: It was a huge increase last year, and there was
Speaker 1: a meaningful increase after labor Day, and so that's what
Speaker 1: the data shows. UM. We also have noticed over the
Speaker 1: last several years since the pandemic started that employers generally
Speaker 1: use big calendar events to put stakes in the ground
Speaker 1: and ask people to come back. And consistently the two
Speaker 1: biggest have been Labor Day in New Year's And we
Speaker 1: we know from talking to our clients UH and users
Speaker 1: of office space that use CASTLE, that a bunch of
Speaker 1: the companies that have had policies wanting people to come back,
Speaker 1: if not all the time, at least some of the time,
Speaker 1: are starting to enforce them more strongly, and many of
Speaker 1: them use the beginning of the year after New Year's
Speaker 1: as a stake in the ground. And so we did
Speaker 1: see a meaningful increase last year, and we think that
Speaker 1: you're going to continue to see a meaningful increases we start.
Speaker 1: I'm looking at the Castle Back to Work Barometer average
Speaker 1: available on the Bloomberg terminal. Just type in ks l
Speaker 1: b W A one, and I gotta tell you it
Speaker 1: is looking like it is a far cry from where
Speaker 1: we were right before the pandemic hit. If we look
Speaker 1: at it on the level of one hundred back in
Speaker 1: March of we're right now, you know, the highest we've
Speaker 1: been is what close to fifty at one point mark.
Speaker 1: So do you think we get back to pre pandemic levels.
Speaker 1: I don't think we get back to a if is
Speaker 1: the pre pandemic baseline. I think you need to go
Speaker 1: one step deeper and to continue sort of where where
Speaker 1: I'd left off. What you do notice, though, when you
Speaker 1: look at days of the week, is that on certain
Speaker 1: days of the week, namely Tuesdays, Wednesdays, and Thursdays, the
Speaker 1: occupancy is meaningfully higher, and it's meaningfully lower on particularly
Speaker 1: Fridays and Mondays. And so when you go a level deeper,
Speaker 1: what you see is that, well, what you just quoted
Speaker 1: where the averages across the week, but on a national
Speaker 1: average on Friday it's thirty three percent, whereas on a
Speaker 1: national average on I think it's Tuesday or Wednesday, it's
Speaker 1: probably the same. It's but some markets, like in Texas,
Speaker 1: those numbers are now in the sixties and seventies on
Speaker 1: the highdays. So what's clear is that people are using
Speaker 1: off the space differently. It's less consistent across the week.
Speaker 1: The spread in the low day to the highday on
Speaker 1: a national average one from nine percent at the beginning
Speaker 1: of twenty two to now at the end of two
Speaker 1: thousand twenty two, and so I think you just have
Speaker 1: you have to look at it in that lens that
Speaker 1: I think what you're gonna see is on the peak
Speaker 1: days you're gonna continue to see an increase. The Fridays
Speaker 1: and Mondays are probably gonna lag, and that's going to
Speaker 1: keep the weekly average down pretty meaningfully. That was Mark Going.
Speaker 1: He has the chairman of Castle Systems. That reps up
Speaker 1: our first hour of the weekend edition of Bloomberg Business
Speaker 1: Week from Bloomberg Radio. I'm Carol Masser and I'm Tim Stanebeck.
Speaker 1: Ahead in our next hour, the good, the bad, and
Speaker 1: the ugly, when it comes to expectations for global climate
Speaker 1: change in the year ahead and beyond, and how markets
Speaker 1: maybe feeling a void that governments won't. Plus new advances
Speaker 1: and aviation are on the horizon. We'll talk to the
Speaker 1: head of a company that's using artificial intelligence to fly
Speaker 1: planes dun Dune done autonomously. What that enables is that
Speaker 1: Jetson's future in a bartist in future where craft are
Speaker 1: flown completely without human air crew aboard, but baby steps
Speaker 1: to be able to beget there. Are you ready? There's
Speaker 1: still a pilot in there at least for now. Yeah,
Speaker 1: but does it mean it eventually goes away? I don't know.
Speaker 1: I don't know. Maybe not in our life. This is Bloomberg.
Speaker 1: This is Bloomberg Business Week inside from the reporters and
Speaker 1: editors who bring you America's most usted business magazine plus
Speaker 1: global business, finance and tech news. As it. Have a
Speaker 1: Sloomberg Business Week with Carol Messer and Tim Stentovic on
Speaker 1: Bloomberg Radio. Funny Ahead in our second hour of the
Speaker 1: weekend edition of Bloomberg Business Week, including a look into
Speaker 1: the future of aviation. We'll do that with the CEO
Speaker 1: of Merlin Labs. It's a company intent on propelling the
Speaker 1: nascent business a fully autonomous flight. So for our operators
Speaker 1: being able to go introduce an AI pilot, to be
Speaker 1: able to go augment human crews uh is just like
Speaker 1: really fundamental to them being able to go keep up
Speaker 1: with the demand uh for the air network. So it's
Speaker 1: been really exciting. Uh. It's the inevitable future of aviation,
Speaker 1: and we're we're delivering on that inevitable future of aviation.
Speaker 1: You know, really pragmatic crawl walk fly approach. Plus we
Speaker 1: dive into the Pursuit section of the magazine for a
Speaker 1: look at some of the cultural touchstones to have on
Speaker 1: your radar right now, from arts and entertainment to why
Speaker 1: Formula one wants to put women in the cockpit for
Speaker 1: the first time in nearly fifty years. We're gonna break
Speaker 1: it all down for you. Look forward to that. First
Speaker 1: up this hour. The year had issue of Bloomberg Business
Speaker 1: Week magazine includes a section devoted to the green economy
Speaker 1: and alternative energy space. Certainly timely considering the extreme weather
Speaker 1: that we've seen in California throughout the past week or so,
Speaker 1: and really as the world noted that the last eight
Speaker 1: years were the hottest on record. For gut check on
Speaker 1: the global climate, we caught up at the editor of
Speaker 1: the Bloomberg Sustainability Team, Eric Roston. The sad fact I guess,
Speaker 1: or maybe there's some uh something we can take from this,
Speaker 1: is that the annual temperature record has become quite predictable.
Speaker 1: As you said, the last eight years or the hottest
Speaker 1: on record dating back to the middle of the nineteenth century,
Speaker 1: it's nine years in the in according to NASA UH.
Speaker 1: And what's interesting is the predictability of global warming, the
Speaker 1: reliability for all over what it's worth of um, the
Speaker 1: extra heat that the Earth is taking on UM. It
Speaker 1: makes that it's kind of intuitive, but the the annual
Speaker 1: temperature record actually says something else, uh than other than
Speaker 1: the globe is warming, because like obviously the globe is warming.
Speaker 1: Every decade has been warmer than the last since the
Speaker 1: nineteen sixties. UM. But back to back temperature years really
Speaker 1: give you more information about whether about weather variability, about
Speaker 1: whether there was no Nino or a hot period in
Speaker 1: the Pacific or a cool Latina. Last year there was
Speaker 1: a latina, so it was not a record year. It
Speaker 1: was only quotation marks the fifth hottest year. Well, that
Speaker 1: variability is really what I want to talk about in
Speaker 1: the idea of of of linking that kind of large
Speaker 1: scale stuff to the extreme storms that we're starting to see.
Speaker 1: I mean, Carol, I don't know about you, but it's
Speaker 1: like every few weeks there's some you know, once in
Speaker 1: a lifetime storm, once in a generation snow that disrupts
Speaker 1: air travel over the holidays, and then a few weeks
Speaker 1: later there's a once in a century storm in Cali
Speaker 1: Fornia that leads to what seventeen deaths, I don't know, Eric,
Speaker 1: I mean, it doesn't seem like once in a lifetime
Speaker 1: or once in adjustment generation to me anymore. That's exactly right.
Speaker 1: And I think the last five to ten years have
Speaker 1: been continuing education in what climate change really means. And
Speaker 1: one thing you here and will continue to hear, particularly
Speaker 1: in the summer, is that every every hottest summer you've
Speaker 1: ever experienced, is the coolest summer of the rest of
Speaker 1: our lives. Um. I was thinking about that. I was
Speaker 1: trying to tell my daughter, she's nineteen, and I said,
Speaker 1: you know, growing up, we had about a week in
Speaker 1: this summer. I grew up just outside New York City,
Speaker 1: a week where my parents are like, all right, let's
Speaker 1: put the air conditioning on. We literally go from like
Speaker 1: winter to air conditioning and it's on all season. And
Speaker 1: I've talked about this before. My brother lives in Seattle,
Speaker 1: a least lived there for years. He just installed air
Speaker 1: conditioning there. These houses were never built with air conditioning
Speaker 1: in mind, because you didn't need it until now. London, right, Well,
Speaker 1: that's a that's an extremely interesting anecdotal example of something
Speaker 1: we have seen. Last year at the Pacific Northwest, one
Speaker 1: of the most insane heat waves that it has ever
Speaker 1: been recorded. UM and air conditioning as much as we're
Speaker 1: used to it in temperate regions, UM is a critical
Speaker 1: life saving tool that we're going to rely on increasingly
Speaker 1: as the temperature gets higher. Is our infrastructure? Let's go
Speaker 1: through This is a fully interesting story. You say, we
Speaker 1: know two was hot. Here are five climate change unknowns,
Speaker 1: and one is asked the question how resilient our societies?
Speaker 1: Is our infrastructure ready to deal with climate change? And sorry,
Speaker 1: I give it away, no, no one, no. If I
Speaker 1: can quote Tim when he said, I spoke the other
Speaker 1: day with a well known climate scientists named Andrew Dessler
Speaker 1: who's at Texas A and m uh, and I said,
Speaker 1: I asked him to just be glib. You know, it's
Speaker 1: like the temperature record, we know what it's going to be,
Speaker 1: But like, what else should we be thinking about if
Speaker 1: if we know that we can predict this, and that's
Speaker 1: what And he gave me five things and and one
Speaker 1: of them, uh, he talked about the lack of resilience
Speaker 1: and about how small departures from the temperatures that we're
Speaker 1: used to are starting to wreak havoc. Uh. And you know,
Speaker 1: all of our infrastructure was built for the narrow band
Speaker 1: of weather that we got used to over the last century.
Speaker 1: Texas temperatures, you know, temperatures dropped like ten degrees or
Speaker 1: so fahrenheit below. Uh, you know what they're occasionally used
Speaker 1: to in Texas. It caused a hundred billion dollars in
Speaker 1: damage and killed almost two d and fifty people. It's incredible.
Speaker 1: I mean, it's awful, And it's not just happened in
Speaker 1: the summer. It happens in the winter as well. We
Speaker 1: saw this play out just a couple of weeks ago,
Speaker 1: when so many people were concerned and even indeed lost
Speaker 1: power in again and once in a generation storm. Uh.
Speaker 1: Is there political will given that these are such huge
Speaker 1: projects that need to be undertaken in order to fix grids,
Speaker 1: whether it's Texas, whether it's the northeast, because it's happening
Speaker 1: so much, is there the political will to actually get
Speaker 1: these projects done? If I can go back to your
Speaker 1: famous quotation, I think it's you know, it's almost like tautological,
Speaker 1: like if there were political will, we would be seeing improvements. Um. Uh. So,
Speaker 1: you know, we've never seen UH policy put in place
Speaker 1: at the scale that has long been recommended by scientists
Speaker 1: and other observers, by business, by investors. Um. You know,
Speaker 1: the good thing is, like the miraculous thing is that
Speaker 1: we haven't needed it in a lot of ways, you know,
Speaker 1: like between solar and wind and electric cars and batteries. Um.
Speaker 1: The rate of invention and technological penetration and change is
Speaker 1: so much faster than anybody ever would have dreamed ten
Speaker 1: years ago. Um. It's really encouraging because we have to
Speaker 1: because the government saying you got to or what we
Speaker 1: definitely well, not that it's not coming from the government,
Speaker 1: like they're there. There's not there hasn't like all of
Speaker 1: the solar, all of the wind, all the car stuff,
Speaker 1: like very little of it, at least in the United States,
Speaker 1: happened because Washington wanted it to happen Washington. If anything
Speaker 1: else has been uh, you know, a drag in some
Speaker 1: in some specific instances. Um. But the fact is is
Speaker 1: that the market works in the market wants this to happen,
Speaker 1: and so it's happening. UM. I do think about is
Speaker 1: it too late? Like I think about the melting ice
Speaker 1: sheets and stuff like, there's some things I don't know. Eric,
Speaker 1: with the folks that you talked to the people who
Speaker 1: really get this and your team who really get this?
Speaker 1: Is there no way to go back? There is one
Speaker 1: of the most emboldening scientific discovery use of the last
Speaker 1: several years was really came to prominence one in in
Speaker 1: a big UN climate report UM and they really for
Speaker 1: the first time said with great confidence that if pollution stops,
Speaker 1: warming will stop shortly thereafter. For many years, it was confusing.
Speaker 1: They didn't know. They thought maybe there was more warming
Speaker 1: built in the pipeline UM, so that even if we
Speaker 1: if if emissions ended tomorrow, you know, it would still
Speaker 1: warm for for some time, like like it's a big help,
Speaker 1: you know. They think about during the pandemic, like Tim
Speaker 1: and I were talking about it earlier, like all of
Speaker 1: a sudden the blue skies were coming back and animals
Speaker 1: were coming at It was really like very telling, Yeah
Speaker 1: right we we UM. You know another story that I
Speaker 1: think it's very powerful and it's probably not seen by
Speaker 1: as many people as it should is UM is the
Speaker 1: ozone hole, which was the environmental plague of the ES
Speaker 1: is getting better. You know, it's healing and it's going
Speaker 1: to continue to heal UM and and that's great, But
Speaker 1: the power or full message there is that that was
Speaker 1: done by policy. You know, that was done by countries
Speaker 1: getting together, recognizing the problem and finding industrial alternatives to
Speaker 1: uh to the chemicals that were causing it. Um. So
Speaker 1: you know, while climate change is bad and while you
Speaker 1: know people unfortunately are harmed and die every year because
Speaker 1: of climate events. Um, but like the Ozone story, it's
Speaker 1: just a very powerful lesson in the fact that we
Speaker 1: can pass policies that fix these problems. Um. And back
Speaker 1: to your question, is all it takes is is political?
Speaker 1: Will you know? And even that on the margins, is
Speaker 1: is changing? That was Eric Roston. He's the editor of
Speaker 1: the Bloomberg Sustainability Team, and be sure to read more
Speaker 1: on the green economy and energy in the Year Ahead issue.
Speaker 1: It includes stories about the carbon capture gold rush and
Speaker 1: why three will be the year your home turns into
Speaker 1: a power plant. It's out on news stands, online and
Speaker 1: at Bloomberg dot com, Slash business Week, and of course
Speaker 1: always on the Bloomberg terminal. You are listening to Bloomberg
Speaker 1: Business Week. While we're on the topic of innovation in
Speaker 1: the energy and green space. Up next, we'll talk to
Speaker 1: the head of a company using AI artificial intelligence to
Speaker 1: help bring autonomous aircraft into the mainstream. Elevators without human
Speaker 1: operators were really scary at one point. Uh, the technology
Speaker 1: mature to the point where we're able to go deliver
Speaker 1: that safely. Trains without human operators were really really scary. Uh,
Speaker 1: and then the technology got to the point that we
Speaker 1: were able to go do it. So we believe in
Speaker 1: Merlin in the crawl walk fly approach to be able
Speaker 1: to go get there, to be able to go do
Speaker 1: it safely, and to build that public, regulatory and operator
Speaker 1: trust in the system. Merlin Lab CEO Matt George stops by.
Speaker 1: That's on the other side. This is Bloomberg. Please sees
Speaker 1: Bloomberg Business Week with Carol Messer and Tim Stinevic from
Speaker 1: Bloomberg Radio. Well, for any members of our audience who
Speaker 1: may not be aware, my co host Tim Stanovik is
Speaker 1: a bit of a plane fan. Is that a safe
Speaker 1: way of describing it? What does that mean? I just
Speaker 1: like watching planes take off and land and like going
Speaker 1: to aviation museums. Do you go to airports and just
Speaker 1: hang out? I have in the past. Are you kidding? Yeah?
Speaker 1: My wife for my birthday one year got like we
Speaker 1: went to the t W a hotel and got like
Speaker 1: a room that overlooked the runway. It's pretty cool. Oh
Speaker 1: my god, that is so sweet. All right, we know
Speaker 1: you like planes. Well. Earlier in the broadcast, we talked
Speaker 1: about the commercial aviation business and what we can expect
Speaker 1: from that industry in the year ahead. In this next segment,
Speaker 1: we're gonna look at a different corner of the business
Speaker 1: that's attracting attention from the likes of the U. S
Speaker 1: Military autonomous aircraft. And we're not talking about drones. These
Speaker 1: are full size planes for more. Here's Tim and Bloomberg
Speaker 1: TV and Radio Markets correspondent. I don't know about you, creating,
Speaker 1: but when I get on an airplane, I always look
Speaker 1: to the left and I like to see a couple
Speaker 1: of pilots in the cockpit getting ready to fly at
Speaker 1: plane to wherever I'm going. Here's the thing, Those days
Speaker 1: might be coming to an end where we have actual
Speaker 1: human pilots in the plane with us. Is it going
Speaker 1: to happen during our lifetimes? Merlin Labs is an aviation
Speaker 1: technology company that's working on AI technology to allow planes
Speaker 1: to fly fully autonomously. They've got the tech already. They
Speaker 1: use them in King Airs right now. The company over
Speaker 1: the summer raised more than one million dollars to bring
Speaker 1: their total funding to about a hundred and thirty million.
Speaker 1: Matt George joins us now. He's the CEO of Merlin Labs.
Speaker 1: Everyone knows I love talking plane, so this one I've
Speaker 1: been pretty excited about. So are we gonna be uh
Speaker 1: taking passenger flights without human pilots in the in the
Speaker 1: plane with us anytime soon? Yeah? I want to pour
Speaker 1: through cold water on Okay. The pathway for autonomy is
Speaker 1: really a junctive to pilots. So a lot of the
Speaker 1: stuff that we're working on at Merlin is truly how
Speaker 1: to be able to go create an a I pilot,
Speaker 1: But unlike some others in the space, we fund only
Speaker 1: don't believe that you can put that pilot alone in
Speaker 1: the cockpit, at least at first alone in the cockpit,
Speaker 1: meaning the co pilot will still need to be there,
Speaker 1: or meaning that you could fly with just one pilot. Yeah,
Speaker 1: So we are working h a lot of our operators.
Speaker 1: We've made a big announcement in the Air Force about
Speaker 1: being able to go pair the Merlin pilot, which what
Speaker 1: we're developing with a human pilot, Uh, to enable safe
Speaker 1: aircraft operations. So just like any student pilot UH, there's
Speaker 1: a really, really, really long period where that pilot has
Speaker 1: to be supervised and trained by a human UH. And
Speaker 1: it's the same with any AI system UH. And once again,
Speaker 1: we're starting out first with some of our partners UH
Speaker 1: in the defense department specifically working on some cargo and
Speaker 1: mobility applications UH and then also working in the civilian
Speaker 1: realm on cargo. So the end state of Merlin is
Speaker 1: being an adjunctive pilot on large passenger aircraft. But then
Speaker 1: also what that enables is that Jetson's future UH in
Speaker 1: a far distant future where craft are flown completely without
Speaker 1: human air crew aboard, but baby steps to be able
Speaker 1: to go get there far distant? How many years is that? Oh?
Speaker 1: I I I If I had a crystal ball, I
Speaker 1: would be in a very very very different business. But
Speaker 1: we will be performing our first commercial flights UH certified
Speaker 1: commercial flights UH in the next about two years with
Speaker 1: the pilot in charge, but still with a you know,
Speaker 1: human crew member sitting next to the to the moment pilot. Well.
Speaker 1: As incredible as at all sounds, it also sounds a
Speaker 1: little terrifying. I'm not gonna lie talk to us a
Speaker 1: little bit about the pushback that you're getting here. Yeah,
Speaker 1: So anything in aviation has to be done super safely, right, Like,
Speaker 1: there's there's a reason that flying is actually one of
Speaker 1: the safes activities you can do, uh, much more so
Speaker 1: than driving. Uh, And that reaction is like really real.
Speaker 1: So that's why we we believe uh that the autonous
Speaker 1: system has to be paired with the human pilot uh
Speaker 1: and not just sort of putting anybody alone. Uh, you know,
Speaker 1: sort of in an aircraft. That's totally uncrude. But once again, right,
Speaker 1: elevators without human operators were really scary at one point, Uh,
Speaker 1: the technology mature to the point where we're able to
Speaker 1: go deliver that safely. Trains without human operators were really
Speaker 1: really scary, uh, and then the technology got to the
Speaker 1: point that we were able to go do it. So
Speaker 1: we believe in Merlin and the crawl walk fly approach
Speaker 1: to be able to go get there, to be able
Speaker 1: to go do it safely, and to build that public,
Speaker 1: regulatory and operator trust in the system. But once again,
Speaker 1: it's not gonna be overnight where the where the aircraft
Speaker 1: are flying uh without anybody aboard. There's a long period
Speaker 1: where computer UH and trained human pilot are teaming up
Speaker 1: together to provide a really safe experience, first for boxes
Speaker 1: and cargo and then eventually for people. So, I don't
Speaker 1: you know, we've been covering this for a couple of years,
Speaker 1: but the pilot shortage that's played out here in the
Speaker 1: US since COVID is really creating some difficult situations for
Speaker 1: for many operators. What are you hearing from commercial aviation
Speaker 1: firms airlines about their desire for this type of technology
Speaker 1: because not only would it save them a ton of money,
Speaker 1: but it would alleviate a lot of headaches too. Yeah.
Speaker 1: So the Internet provides ubiquitous digital connectivity for the world,
Speaker 1: and then the air network provides ubiquitous physical connectivity. So
Speaker 1: as people buy more and more things online, I don't
Speaker 1: think there's anybody who realistically believes in a world where
Speaker 1: folks are going to start buying stuff less online. So
Speaker 1: as people buy stuff more online, the demand on the
Speaker 1: air cargo network is shot through the roof. So for
Speaker 1: our operators being able to go introduce an AI pilot
Speaker 1: to be able to go augment human crews, UH is
Speaker 1: just like really fundamental to them being able to go
Speaker 1: keep up with the demand, uh for the air network.
Speaker 1: So it's been really exciting. Uh. It's the inevitable future
Speaker 1: of aviation, and we're we're delivering on that inevitable future
Speaker 1: of aviation in a really pragmatic crawl, walk, fly approach.
Speaker 1: We'll talk to us a little bit about the business itself,
Speaker 1: because I'm reading a little bit about your company here.
Speaker 1: Found in twenty headquartered in Boston, You've got offices around
Speaker 1: the country. You also have offices in New Zealand. We
Speaker 1: have a we have an incredible team in New Zealand.
Speaker 1: We've partnered with the Government of New Zealand to be
Speaker 1: able to go certify the first version of the Merland Pilot,
Speaker 1: and that's a joint certification program between the New Zealand
Speaker 1: Civil Aviation Authority and the US Federal Aviation Administration. New
Speaker 1: Zealand has built an incredible reputation as being a nimble,
Speaker 1: agile regulator that's able to go try new things and
Speaker 1: do that in a really safe and reliable way. UH.
Speaker 1: So we are standing up the world's first fully autonomous
Speaker 1: still with the Safety pilot, but fully autonomous takeoff to
Speaker 1: touchdown Eric Cargo Network on the North Island of New
Speaker 1: Zealand based in Carry Carry in the Bay of Islands
Speaker 1: in in New Zealand. Uh And New Zealand really is
Speaker 1: uh you know, going to be one of the first
Speaker 1: places in the world where a lot of the autonomy
Speaker 1: takes place, first gets tested and then exported into the
Speaker 1: rest of the world. We're super proud of our partnership
Speaker 1: between the US and New Zealand and being really critical
Speaker 1: link between those two countries. Yeah, it looks like even
Speaker 1: in New Zealand right now, just to speak to that
Speaker 1: reputation that it's built, you can get drone delivery of
Speaker 1: certain products through wing food, coffee, hardware, pet supplies and more. So.
Speaker 1: I'm not surprised to see that you have a presence
Speaker 1: in an environment that has a regulatory environment such as that. So, Matt,
Speaker 1: before we let you go, talk to us a little
Speaker 1: bit about this partnership with the U. S. Air Force,
Speaker 1: the super Hercules transport aircraft. So what can you do
Speaker 1: in the U. S. Air Force do now to the
Speaker 1: super Hercules that you weren't able to do a couple
Speaker 1: of years ago. Yeah, we're really excited about our partnership
Speaker 1: with the United Air Force, who clearly has been trying
Speaker 1: to bring autonomy out uh into operational service for a
Speaker 1: really long time. And the challenge always is the problem
Speaker 1: and the question that you alluded to at sort of
Speaker 1: the start of our of our chat, how do you
Speaker 1: get from where we are today to fully uncrewed operations?
Speaker 1: The Air Force has partnered with us to be able
Speaker 1: to go do sort of that two crew uh, you know,
Speaker 1: an augmented service. That was Matt George, he's the CEO
Speaker 1: of Merlin Labs. He spoke with a creaty group to
Speaker 1: end me on Monday. So after speaking with him, are
Speaker 1: you even more comfortable about getting into something that didn't
Speaker 1: have a maybe person? Well, we're years away from it's
Speaker 1: more assistance right now. Yeah. I do think it's more years.
Speaker 1: I mean it's such a highly regulated environment and I
Speaker 1: think passengers would say no way, but you know they're
Speaker 1: working with the military right now on those transport planes.
Speaker 1: I think it's really interesting, all right, Still to come
Speaker 1: on Bloomberg Business Week the year ahead in Luxury and
Speaker 1: Culture with our intrupid colleagues from Bloomberg. Pursuits including a
Speaker 1: look at how the city of light is reclaiming its
Speaker 1: place at the top of the European art scene. When
Speaker 1: it comes to commerce in the top of the art market.
Speaker 1: Other cities UM, particularly London and New York UM have
Speaker 1: really have really been at the top for a long
Speaker 1: time because they have big fair UM and they have
Speaker 1: really the presences of the world's major galleries UM. But
Speaker 1: Paris in the last few years, especially with this last
Speaker 1: year with a major art fair, has kind of coming
Speaker 1: back to the place where people to go to buy
Speaker 1: and trade art. It's just another reason to head to Paris,
Speaker 1: as if you needed another one exactly. This is Bloomberg
Speaker 1: Broadcasting from the financial capital of the world, Bloomberg Eleve
Speaker 1: in Frio in New York to Washington, d C. Bloomberg
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the country Sirius XM Channel one
Speaker 1: nine team and around the globe the Bloomberg Business app
Speaker 1: in Bloomberg Radio dot com. This is Bloomberg Business Week
Speaker 1: with Carol Messer and Tim Stenove from Bloomberg Radio. Well
Speaker 1: as you know that your head issue, it is out
Speaker 1: and it wouldn't be complete without a peek into what
Speaker 1: three may hold when it comes to our worlds of
Speaker 1: luxury and culture. Have no fear. The Bloomberg Pursuits team
Speaker 1: is here joining us. Now we've got Pursuits editor Chris
Speaker 1: Rouser along with the Bloomberg Pursuits arts columnist James Army.
Speaker 1: James has got the lead story in this week's Pursuits
Speaker 1: section about how the Paris art scene has come roaring
Speaker 1: back to life. Chris, first up. Okay, So I gotta
Speaker 1: be honest about this. Maybe it's because I don't know
Speaker 1: about art and culture, but I didn't realize that Paris.
Speaker 1: I believe it's culture culture. I didn't realize that Paris
Speaker 1: wasn't kind of at the top when it came to
Speaker 1: the arts scene. I mean, where did I go wrong?
Speaker 1: If you are like an attendee of museum. Certainly Paris
Speaker 1: is one of the greatest cities in the world. Have
Speaker 1: you heard of the Mona Lisa. It's not going anywhere, UM.
Speaker 1: But when it comes to commerce in the top of
Speaker 1: the art market, other cities UM, particularly London and New
Speaker 1: York UM have really have really been at the top
Speaker 1: for a long time because they have big fairs UM
Speaker 1: and they have really the presences of the world's major galleries. Um,
Speaker 1: but Paris in the last few years, especially with this
Speaker 1: last year with a major art fair, has kind of
Speaker 1: been coming back to the place where people go to
Speaker 1: buy and trade art. And so we had James. Well,
Speaker 1: I say, James told me this, and so you didn't. Okay,
Speaker 1: that makes me feel better. Christy, you're the ed. Really,
Speaker 1: come on, it's always a good sign for that's always
Speaker 1: a good sign for a story. Though, James, come on
Speaker 1: in on, tell us about the pitch and then actually
Speaker 1: you know more of what's going on there in Paris.
Speaker 1: I have to say that I was kind of shocked
Speaker 1: when I went, maybe right after COVID and the transformation
Speaker 1: had been kind of complete. It had been in the
Speaker 1: works for years. As I say in my piece, it's
Speaker 1: it's not just one thing. But if you were to
Speaker 1: trace it back, you can see this huge infusion of
Speaker 1: capital from the city's luxury barons. First Pino m bernard
Speaker 1: or No than the Cardio Foundation, than the family behind
Speaker 1: gallas By at the department store. All these people have
Speaker 1: been pouring money not just into the art world, but
Speaker 1: specifically contemptor art and that sort of stead this ecosystem
Speaker 1: of not only art galleries, but also art fairs, also
Speaker 1: contemporary artis exhibitions, and then also artists themselves. Well, does
Speaker 1: it always take a benefactor such as a Bernardo no
Speaker 1: To to kick something off like this or is it
Speaker 1: does it turn into sort of a sustaining cycle. Well,
Speaker 1: it's it's funny because you know, contemporary art follows the money. Um.
Speaker 1: With art that's being made, you need someone to pay
Speaker 1: for it, and if you don't have anyone to pay
Speaker 1: for it, you're not going to really find out about
Speaker 1: it very often. Um, A lot of these really really
Speaker 1: rich people are funding these private museums which buy from galleries,
Speaker 1: which buy from artists studios, and which have cutting edge exhibitions,
Speaker 1: which of course then feeds more galleries and feeds more
Speaker 1: artists coming to the city. And you know, the curators
Speaker 1: who are involved in these private museums are very involved
Speaker 1: in fostering the art scene. So does it take one person, No,
Speaker 1: But does it take rich people? Absolutely. And you can
Speaker 1: actually look at Berlin, which for a very long time
Speaker 1: was this place that I've been so excited about, um,
Speaker 1: to actually see what happens when there aren't a lot
Speaker 1: of rich people. Eventually artists migrated elsewhere because they just
Speaker 1: weren't getting enough traction from the people who mattered. Paris
Speaker 1: has a lot of people who matter. And the other
Speaker 1: thing that I thought was kind of interesting is, yeah,
Speaker 1: it's a lot of wealthy folks coming in and private money,
Speaker 1: if you will. But the government, right, Chris, and France
Speaker 1: is also super supportive, uh, not only in its actions
Speaker 1: but also in financial support. Yeah. So France is very
Speaker 1: generous with uh its arts funding more than a lot
Speaker 1: of other European countries. Last year it's spent more than
Speaker 1: four billion euros on it. In Germany as to what
Speaker 1: James was just saying, spent about two point three billion euros.
Speaker 1: So it's you know, this is a lot of money,
Speaker 1: um that's available in a lot of different ways for
Speaker 1: artists and enjoyers of ore to take advantage of. Okay,
Speaker 1: Chris Rouser. So let's say you want to take a
Speaker 1: little trip to Paris, but maybe you want that little
Speaker 1: trip to be an extended stay. Don't do it. Don't
Speaker 1: do it not thou Increasingly now these boutique hotels or
Speaker 1: at least big companies, I should say, are betting on
Speaker 1: extended stay businesses, and it's in the new issue of
Speaker 1: Bloomberg Pursuits in Bloomberg Business Week. So take us into
Speaker 1: why the big hotels are kind of getting in on this.
Speaker 1: I mean, does it have anything to do with Airbnb? Yeah,
Speaker 1: well it does. It has it to do with a
Speaker 1: lot of things. So a lot of really big hotel
Speaker 1: companies are getting into a space that we used to
Speaker 1: probably think of it maybe a little bit sad, so
Speaker 1: an extended to stay hotels. I think of it as
Speaker 1: like a sort of grab like uh place for a
Speaker 1: traveling sales and with day in a strip mall somewhere,
Speaker 1: and it's very cookie cutter beach probably smells like cigarette
Speaker 1: and or maybe it's a thing where like Chris Rouser's
Speaker 1: opinions are his own. No sorry, go ahead, keep going.
Speaker 1: Or maybe there's like a duchess who like moved to
Speaker 1: New York and she's staying at the wall door and
Speaker 1: she's living there for a long time. That sounds less sad. Yeah,
Speaker 1: So it's you know, big companies um like Hyatt and
Speaker 1: Marriott are getting into the middle range of of extended
Speaker 1: state hotels, which are you know, more luxurious, more comfortable,
Speaker 1: maybe even more comfortable than your home, um, and feeling
Speaker 1: very homey because they know that people are can work
Speaker 1: from anywhere these days, and there the idea of working
Speaker 1: living in another city at a sort of a reasonable rate,
Speaker 1: but with the comforts and conveniences of hotel is a
Speaker 1: big business. And of course, even before the pandemic started
Speaker 1: that trend, we saw airbnb really take over the world
Speaker 1: and turn you know, open up a lot of avenues
Speaker 1: for staying for a while with the conveniences of home
Speaker 1: but far from home. Now. I know, James, when you
Speaker 1: went over to Paris to do your story, it was
Speaker 1: all work and no play. But Chris, but Chris, this
Speaker 1: is a big deal where like people want to combine. Yep,
Speaker 1: we're going to do some work, but we're also gonna
Speaker 1: have some play. Yeah, I mean, Belie sure is probably
Speaker 1: one of the most painful works that we've come across recently.
Speaker 1: Portmanto's as far as they go. But it's really true.
Speaker 1: And um, you know, they're sending hundreds of millions of
Speaker 1: dollars on these and and we're seeing them everywhere from
Speaker 1: Tokyo to Bangkok, um to Atlanta, Georgia, and um, the
Speaker 1: idea is kind of like they're built around communities. A
Speaker 1: lot of these new places, UM. So you know there's
Speaker 1: communal spaces. There's a coffee shop that turned into a bar.
Speaker 1: At night, maybe you walk up a staircase to your
Speaker 1: room instead of an elevator, which makes you feel a
Speaker 1: little bit more like you're at home and in a
Speaker 1: connected space. And in a lot of cases, these are
Speaker 1: being built um you know, attached to stadiums or concert
Speaker 1: halls or malls or air even airports, so that there's
Speaker 1: like an additional UM lifestyle aspects for community or travel
Speaker 1: aspect sort of built right into into where you're going
Speaker 1: to be, right And a lot of it has to
Speaker 1: do with you know, maybe you're going to experience something
Speaker 1: like maybe you want to go see an F one race?
Speaker 1: How do you like this? For a second, can we
Speaker 1: get to another story in the section? Uh F one
Speaker 1: women in the cockpit for the first time in about
Speaker 1: fifty years? What's going on? Chris? So you know as
Speaker 1: Americans we have really caught onto F one pretty recently, UM.
Speaker 1: And you know, part of it has to do with
Speaker 1: that with that Netflix show which everybody really loved, Drive
Speaker 1: to Survive UM, and it really made the characters of
Speaker 1: F one, the drivers into these people that we sort
Speaker 1: of fell in love with a little bit. And if
Speaker 1: you watch the show, you'll notice that they're all men
Speaker 1: um And it's not that there are no women drivers
Speaker 1: out there, it's just that there's not been really a
Speaker 1: funnel for women drivers in the various competitions that feed
Speaker 1: into form one Formula one. There's not really been a
Speaker 1: funnel for them explicitly to try to get into Formula one.
Speaker 1: And it's certainly not that Formula one only has men's racers.
Speaker 1: There there have been female racers, but the last one
Speaker 1: was in nineteen seventies six. And Hannah Elliott writes this story.
Speaker 1: I mean, she's a perfect person to write the story
Speaker 1: because she's a great perspective on the auto industry um
Speaker 1: from the perspective of one of the few women calumnists.
Speaker 1: And this woman, Lela Lombardi, who raced in nineteen seventy six,
Speaker 1: was a formerly former delivery van driver for her family's
Speaker 1: butcher shop in Italy. It's when a journal when a
Speaker 1: journalist asked her how it felt to drive such big cars,
Speaker 1: she said, I don't have to carry it, I just
Speaker 1: had to drive it. So you asked a dumb questions,
Speaker 1: you get a good answer. Okay, you feel like it
Speaker 1: was like, hey, little lady, how did you do this?
Speaker 1: That's what's going on. A great section looking forward to
Speaker 1: the new year and all of the coverage you guys
Speaker 1: are going to be doing from the Pursuits team. So
Speaker 1: you guys, thank you so much, big thank you to
Speaker 1: Bloomberg BusinessWeek Arts columns James T. Me In a Bloomberg
Speaker 1: for Stats editor Chris Rouser. You're listening to Bloomberg business Week.
Speaker 1: Coming up a new book explains how to win the
Speaker 1: fight against perpetual distraction in our increasingly digital world. That
Speaker 1: I was doing something else not fine, Okay, this is Bloomberg.
Speaker 1: You're listening to Bloomberg Business Week with Carol Messer and
Speaker 1: Tim Stinovic from Bloomberg Radio. So how many times do
Speaker 1: you sit down to do something only to be distracted
Speaker 1: by the pin of your phone? So you pick it up,
Speaker 1: you look at the text, and the next thing you know,
Speaker 1: you're on Instagram watching videos of airplanes tam taking off
Speaker 1: in landing at forty minutes has passed and you never
Speaker 1: got to that thing that you sat down to do.
Speaker 1: How often does that have every day. It is crazy,
Speaker 1: like I feel like I'm working on something and then
Speaker 1: like somebody something comes at me an email and I'm off,
Speaker 1: And then I start Google League and I'm donn a
Speaker 1: rabbit hole and I'm like, what was my initial test? Yeah?
Speaker 1: My question is is there any hope? Right? There has
Speaker 1: to be Well, it sounds like I know a little
Speaker 1: thing or two about this. It's because it's the kind
Speaker 1: of you know, what happens in our lives right now.
Speaker 1: Getting that focus back is the subject of a new book.
Speaker 1: It's called Attention Span by Dr Gloria Mark. She's Chancellor's
Speaker 1: Professor of Informatics at the University of California, Irvine, and
Speaker 1: we asked whether our various digital stimuli are affecting our brains.
Speaker 1: There's some research that suggests that there there could be
Speaker 1: some changes to our brain. What I can say is
Speaker 1: that there are changes to our behavior, to our attention behaviors,
Speaker 1: and and that's uh something that we can you know,
Speaker 1: empirically measure and show. We also show that there's a
Speaker 1: relationship between this fast attention shifting and an increase in stress.
Speaker 1: How about behavior change? Because I want to know how
Speaker 1: I can and I noticed this. I just sometimes I'll
Speaker 1: delete Twitter from my phone because I know I'm spending
Speaker 1: too much time on it, even though the app is
Speaker 1: no enger on my phone. Sometimes I'll still open up
Speaker 1: my phone instinctively when I'm like on an escalator, in
Speaker 1: an elevator or something, and then try to find Twitter,
Speaker 1: even though I know it's not there. It's like a
Speaker 1: reflex for me sickness. Please please help me, doctor. Yeah,
Speaker 1: it's it's a muscle memory. I mean, you know, when
Speaker 1: you do something for a long time, it becomes a habit,
Speaker 1: you know. And I want to emphasize that we we
Speaker 1: tend to blame notifications for you know, this is the
Speaker 1: reason why we're distracted, But it's just as likely for
Speaker 1: people to interrupt themselves. So about half the time people,
Speaker 1: we are our worst interrupters. Uh, you know, so it's
Speaker 1: not we can't just blame it on things that are
Speaker 1: external to us. Remember when multitasking um dr mark was
Speaker 1: considered a good thing. But you know, the research shows
Speaker 1: that it's not. There's actually it's actually research that's been
Speaker 1: going on for decades that shows that when people switch
Speaker 1: their attention two different asks. We know that blood pressure
Speaker 1: goes up. There are physiological markers that indicate stress that
Speaker 1: show this this goes up as well. We know my
Speaker 1: own research looking at people in the wild where they
Speaker 1: wore heart rate monitors. We find that stress goes up
Speaker 1: when people are switching their attention and and people report
Speaker 1: subjectively that their stress is higher. So all these measures
Speaker 1: are consistent. So how do we find focus and fight
Speaker 1: distraction which is the subtitle of your book. We need
Speaker 1: to do work on different levels there. You know, there
Speaker 1: are individual solutions, there are also collective solutions that could
Speaker 1: be done at an organizational level or even societal level.
Speaker 1: At an individual level, I think that we can draw
Speaker 1: in the work of Albert Banduri's a very famous social
Speaker 1: psychologist who had a lot of success in getting people
Speaker 1: to improve their self efficacy. They could change they could
Speaker 1: stop smoking, top substance abuse, and I think there are
Speaker 1: certain principles that could be applied to help us, you know,
Speaker 1: control our attention better. For example, we have so many
Speaker 1: automatic actions. We we grab our phones, which check email,
Speaker 1: we check social media. These are done automatically. Dr Gloria
Speaker 1: Mark is the Chancellor's Professor of Informatics at the University
Speaker 1: of California, Irvine. Her new book is out now. It's
Speaker 1: called Attention Span. I'm just gonna start putting my headphones
Speaker 1: on more. What did you say? Something funny? Funny? All right.
Speaker 1: That wraps up the weekend edition of Bloomberg Business Week
Speaker 1: from Bloomberg Radio. Thank you so much for joining us.
Speaker 1: I'm Carol Masser and Tim Stanovk. Be sure to tune
Speaker 1: into Bloomberg Business Week Monday through Friday, starting at two
Speaker 1: pm Wall Street Time on Bloomberg Radio. You can also
Speaker 1: watch our daily broadcast on YouTube. Just search Bloomberg Global
Speaker 1: News and check out our Bloomberg Business Week podcast. You
Speaker 1: can find that at Bloomberg dot com, Apple, or wherever
Speaker 1: you get your podcast. Bloomberg Business Week is available on
Speaker 1: newsstands now at Bloomberg dot com and always on the
Speaker 1: Bloomberg terminal, and you can also see us on Bloomberg Quicktake.
Speaker 1: We're available on Bloomberg dot com, slash qt, and streaming
Speaker 1: platforms like Roku, Apple TV, Samsung TV, and more. Have
Speaker 1: a good weekend, everyone, stay say this is Bloomberg