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 Messier and Bloomberg Quick Takes Tim
Speaker 1: Stinovic on Bloomberg Radio. Hi everyone, Welcome to the weekend
Speaker 1: edition of Bloomberg Business Week. Afghanistan tims still top of
Speaker 1: mind this week. Yeah, Carol, the tragic events happening over
Speaker 1: there have the whole world paying attention. Meantime, some progress
Speaker 1: in the pandemic with the Fiser vaccine getting full FDA approval,
Speaker 1: Madernas believed to be on the way, and J and
Speaker 1: J vaccine booster scene triggering an antibody surge. Still the
Speaker 1: return to office plans, Carol, they remain in flux. In fact,
Speaker 1: our international cover story is all about September not bringing
Speaker 1: the normalcy that we'd hope for. I love the international cover.
Speaker 1: It shows a calendar for September with all the dates
Speaker 1: crossed out because the way that plants have changed around
Speaker 1: the world, with people returning to the office going back
Speaker 1: to work, so many were expecting to go back this
Speaker 1: fall that keeps getting pushed perhaps some October, some January,
Speaker 1: and some unknown right earlier this year, we thought September
Speaker 1: was going to be much more normal, and we're not
Speaker 1: seeing that at all. Also, Kathy Would she is back
Speaker 1: with us. You spoke to her for a great and
Speaker 1: long interview, Carol. Why she was all set to pull
Speaker 1: out of Chinese stocks until she wasn't exactly it was
Speaker 1: just a month or so where she really changed her
Speaker 1: tune on that sector. Tons of great stories in this
Speaker 1: week's issue as well, of course, the Domestic Covers story,
Speaker 1: which is a deep dive into targets history of ties
Speaker 1: with law enforcement and its effect on Black Americans. We'll
Speaker 1: hear from the reporter on that story a little bit
Speaker 1: later on. Also in the magazine this week, there's an
Speaker 1: interesting story about women in trucking. And what's really wonderful
Speaker 1: is this was written by one of our summer interns
Speaker 1: this week, Shara Aviona. And what's fascinating is and probably
Speaker 1: not surprising, is just about six percent six point seven
Speaker 1: percent to be exact, of long haul drivers were women,
Speaker 1: according to the American Trucking Association. It's a number tim
Speaker 1: that's barely budged in almost two decades, but there's a
Speaker 1: group really looking, several groups of people looking to change that. Hey,
Speaker 1: for good reason, because it turns out that female drivers
Speaker 1: are actually better on the road. However, the road isn't
Speaker 1: always better for them. Driving requires long, regular hours, lonely conditions,
Speaker 1: and the risk of severe crashes. The field carell it
Speaker 1: usually offers few benefits that are attractive to primary caregivers,
Speaker 1: like paid print to leave or even flexible hours that
Speaker 1: that fit with the school day, and it's why we
Speaker 1: see so much turnover in the industry, regardless of gender.
Speaker 1: A little bit later in the show, We've got a
Speaker 1: great issue of Pursuits this week. It's all about fall
Speaker 1: fashion and I'm just gonna say a lot of sparkling things.
Speaker 1: It's hard to plan for exactly how things will be
Speaker 1: a few months from now, especially during the pandemic. But
Speaker 1: as our Pursuits editor Chris rouser And told us back
Speaker 1: when these fall lines debuted, when they were being thought about,
Speaker 1: when the Runway shows happened, people were thinking, wait a second,
Speaker 1: in the fall, we are going to be getting out again,
Speaker 1: and you know we're gonna want to be seen all
Speaker 1: of that to come. We do begin though with Afghanistan
Speaker 1: and how the two decade war there is turning a U.
Speaker 1: S mill, a terry startup into a unicorn. It's a
Speaker 1: story in the new issue of Bloomberg business Week. It's
Speaker 1: also online at business week dot com and on the
Speaker 1: Bloomberg Terminal. It's written by Bloomberg business Week Technology editor
Speaker 1: Joshua Breustein. The company is called Shield dot ai UM
Speaker 1: and it was started by a former Navy seal who
Speaker 1: served in Afghanistan and elsewhere overseas and was trying to
Speaker 1: solve a problem that was pretty specific to those deployments,
Speaker 1: which was entering buildings and contested areas. UM. He built
Speaker 1: a type of drone, a small drone that they would
Speaker 1: send into buildings in advance that would map the space
Speaker 1: and send video to troops outside, flying autonomously in buildings
Speaker 1: UM and that would allow them to enter if you know,
Speaker 1: if there were no enemy combatants inside. UM. So Shield has,
Speaker 1: as you said, has become a unicorn. It's just raised
Speaker 1: about two million dollars and bought several other technology companies
Speaker 1: in an attempt to move beyond that specific location and
Speaker 1: start doing things more relevant to the type of wars
Speaker 1: America might fight in the future specifically against UM enemies
Speaker 1: like UM I should say, rivals like China and Russia.
Speaker 1: So what are those because I have to say to
Speaker 1: be fair and is it sounds so simple, right, and
Speaker 1: it makes it and it sounds so logical, right. Yeah,
Speaker 1: let's go drone drones into kind of basically map out
Speaker 1: the space and check out the security. So where else
Speaker 1: can they take this? Yeah? I think the idea here
Speaker 1: UM for shield is that they could take the UM
Speaker 1: autonomous software they've been developing for this one application and
Speaker 1: apply it to other things, maybe trying to have UM
Speaker 1: communication between semi autonomous fighter jets they're patrolling a coast
Speaker 1: UM or UM or you know, networks, networks of vehicles
Speaker 1: both small and large. It's sort of open ended at
Speaker 1: this point, I think UM, and they're really just trying
Speaker 1: to look at, you know, where the U. S. Military
Speaker 1: is trying to take our to facial intelligence, which is
Speaker 1: one of the big questions UM, you know, for the
Speaker 1: Penticon itself. Yeah, I was gonna say, how comfortable are
Speaker 1: they with this? It's interesting. I think one of the
Speaker 1: one of the aspects of having these small drones that
Speaker 1: are surveys that we're serving in a relatively low stakes environment,
Speaker 1: just you know, sending video from one side of a
Speaker 1: wolf to another. Is that they slowly started to build
Speaker 1: up some trust within the military for using these things
Speaker 1: in UM in bigger, more complicated, and frankly more dangerous situations. UM.
Speaker 1: But I think that you know, there isn't full trust
Speaker 1: in these sort of systems is in the military, just
Speaker 1: like you know, anyone who's looking at relying on artificial
Speaker 1: intelligence is still questioning like is this stuff really going
Speaker 1: to work all the time when it matters well? And Joshua,
Speaker 1: I wonder how much of their success right now is
Speaker 1: military contracts? Is it all of it? Yeah? Right now,
Speaker 1: Shield only does military contracting UM. Interestingly, they's to me
Speaker 1: that they were interested in potential commercial applications. I think
Speaker 1: those are mostly around mapping and also maybe working UM
Speaker 1: on domestic law enforcement, which is an interesting and somewhat
Speaker 1: controversial spin on pretty much on a lot of military
Speaker 1: hardware and end systems that you know, maybe police Starmer's
Speaker 1: states would want to use UM some of them, some
Speaker 1: of the surveillance type capabilities that they're building. Obviously, that's
Speaker 1: probably going to be a big fight in some of
Speaker 1: the cities where they would be trying to do that.
Speaker 1: That was Bloomberg Business Week Technology editor Joshua Bruce sting
Speaker 1: so many different sides to the Afghanistan story coming up.
Speaker 1: She's been followed so closely for the last few years.
Speaker 1: When it comes to her investment strategy, we're talking about Kathy.
Speaker 1: Would you want to know where she's putting her money
Speaker 1: right now? Cathy would joins us. Next, you're listening to
Speaker 1: Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Spinovik
Speaker 1: from Bloomberg Radio. So we tracked what she's buying and
Speaker 1: selling on a daily basis. You can always find it
Speaker 1: on the Bloomberg terminal, and her portfolio now includes a
Speaker 1: nearly eleven percent stake in a blank check company backed
Speaker 1: by former Hollywood executive Harry Sloan. Kathy Wood is known
Speaker 1: for her investment strategy that focuses on companies that are
Speaker 1: disrupting and innovating existing industries. She spoke to Carol on
Speaker 1: a wide range of topics, including getting back into Chinese
Speaker 1: companies that trade in the US. Just one month Carol
Speaker 1: after getting out. We had been pulling out of China.
Speaker 1: We started last November actually, after after the debacle around
Speaker 1: the ant group I p O and really the banishment
Speaker 1: it seems of jack Ma, and we saw increasing increasing
Speaker 1: signs that the government was going to get tough on
Speaker 1: on companies we didn't know exact and and companies which
Speaker 1: were more than unicorns. They had exploded onto the scene
Speaker 1: and they had become so powerful, as had their leaders,
Speaker 1: that they almost seemed to be threatening, uh the government,
Speaker 1: at least that seemed to be our take on the
Speaker 1: government's response. So we were a bit cautious pulled away,
Speaker 1: and in fact our flagship fund Um had moved out
Speaker 1: of most Chinese stocks. I think we were out probably
Speaker 1: late April, late May somewhere around there. It might have
Speaker 1: been a little bit later. Gradually, you never know of
Speaker 1: the time. I think the online education UM really nationalization
Speaker 1: there uh was UM was a real valuation killer for
Speaker 1: the market. So I think that the market is going
Speaker 1: to be under pressure from evaluation point of view from
Speaker 1: a lot for a long time now, because that that
Speaker 1: sort of thing was so unexpected, uh, even even from
Speaker 1: the those of us who saw the government tightening its
Speaker 1: grip on on the country. Uh So, But what we
Speaker 1: have done we did after this last blood bath in
Speaker 1: the stocks we did, uh try and sort through, Okay,
Speaker 1: which companies are are doing things the government likes and
Speaker 1: what we're seeing those that are catering to tier three
Speaker 1: tier four cities, logistics groceries. So you've seen us by
Speaker 1: j D dot Com. J D Logistics is a big
Speaker 1: part of j D dot Com. I think they owned
Speaker 1: seventy of it. Uh So that's probably been our biggest purchase,
Speaker 1: as well as some pin Doo do for the same reason.
Speaker 1: But if you were to look at what we were
Speaker 1: doing in those portfolios, we were really swapping them out
Speaker 1: of other names that we think are are going to
Speaker 1: be continue to be in harm's way or st early
Speaker 1: under government pressure, like the Ali Baba's for example, which
Speaker 1: you've been selling. Correct. Yes, So, in terms of the
Speaker 1: recent crackdowns cathy that we've seen, does it longer term
Speaker 1: generally making more pessimistic or optimistic about investing in Chinese stocks?
Speaker 1: What's the call here? You're a longer term investor, so
Speaker 1: what's the longer term play here? Well, if you think
Speaker 1: about what China is doing they're doing many of the
Speaker 1: same things our own government and other governments around the
Speaker 1: world are doing. Uh. You know, they're most governments are
Speaker 1: concerned about data privacy, uh, national security, and even even
Speaker 1: concerned uh in some ways about the impact of social
Speaker 1: media on students and so forth. So, but we just haven't.
Speaker 1: We don't have the kind of central, centrally controlled government
Speaker 1: that can, you know, wipe those those activities and risks
Speaker 1: off the face of the earth as much as possible.
Speaker 1: That's just not who we are. We do know that
Speaker 1: China wants to wants to be number one in the
Speaker 1: world and economically certainly, and one of the ways they
Speaker 1: want to do it is with innovation, with technology. They
Speaker 1: want to bring more of it back into their country. UH,
Speaker 1: certainly the manufacturing side, UH, semiconductors being one of the
Speaker 1: most important areas in which they're investing. They haven't gotten
Speaker 1: it right. I've watched them invest in semiconductors since the
Speaker 1: early nineties, UH, where they brought in a lot of
Speaker 1: Taiwan semiconductor talent, and they just haven't been able to
Speaker 1: crack the code. So more pessimistic about China long term
Speaker 1: or more optimistic. I'm more optimistic. I'm going to turn
Speaker 1: it around a little bit. I'm not pessimistic about China
Speaker 1: longer run because I think, um, you know, they're very
Speaker 1: entrepreneurial society. Sure, the government is um putting more rules
Speaker 1: and regulations in, but I don't think the government wants
Speaker 1: to stop growth and progress at all. Of What I
Speaker 1: will say though, is I'm a little more optimistic about
Speaker 1: the United States and other economies. So it's more of
Speaker 1: a relative sort of thing. The more insular China becomes
Speaker 1: actually the less competitive in many ways. It will be
Speaker 1: because artificial intelligence. Sure, you can have all kinds of
Speaker 1: data about your own population China or Chinese government. Uh,
Speaker 1: but in order to compete in the world, you're you're
Speaker 1: going to need information everywhere. And I think governments around
Speaker 1: the world are a little suspicious, suspicious of what is
Speaker 1: happening now in China. What do you think the investment
Speaker 1: environment will look like in China in five years from
Speaker 1: now compared to what we're seeing today? And are the
Speaker 1: because you know, investors, everyone follows what you're doing, So
Speaker 1: are you positioning for the five years from now? Sure
Speaker 1: we have a five year investment time horizon. I think
Speaker 1: we're consolidating into the few names. And these are not
Speaker 1: in our flagship fund, these are in other of our
Speaker 1: more specialized sounds. So we're consolidating our positions. So we've
Speaker 1: taken it down, continued to take it down, but consolidating
Speaker 1: more towards with higher positions in names like I described,
Speaker 1: they're uh, you know, really focused on tier three, tier
Speaker 1: four groceries, logistics, uh, manufacturing in China. So we'll we'll
Speaker 1: stick with those while we wait and see, you know
Speaker 1: how the government wants to play this. If you think
Speaker 1: about it, UM, one of the reasons this may be
Speaker 1: going on now is uh, China saw what the Trump
Speaker 1: administration was like uh, and the Biden administration has been
Speaker 1: just as tough in some ways, but perhaps not as
Speaker 1: tough as a more conservative or hawkish and administration would
Speaker 1: have been around Hong Kong. And so we've got the
Speaker 1: mid term elections in November next year, so this is
Speaker 1: their window to do what they want to do, because
Speaker 1: I do believe they're not They're feeling like, um, this
Speaker 1: is a little bit of a window. And if the
Speaker 1: more hawkish administration gets in later, then um, you know
Speaker 1: they will have want to have done whatever it is
Speaker 1: up next, while more of my conversation with our invest
Speaker 1: founder c I O CEO Kathy would as we shift
Speaker 1: our focus from Beijing to the cutting edge of tech investments.
Speaker 1: Right here in the United States, you're listening to Bloomberg
Speaker 1: Business Week. This is Bloomberg broadcasting from the financial capital
Speaker 1: of the World, Bloomberg eleven Rio in New York to Washington,
Speaker 1: d C. Bloomberg to Boston, Bloomberg one O six one,
Speaker 1: does San Francisco, Bloomberg nine six, to the country Syria,
Speaker 1: Sex m Chamber one ninety and around the globe the
Speaker 1: Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes Tim
Speaker 1: Stinovian on Bloomberg Radio. So in the last block you
Speaker 1: heard Kathy would have ARC Invests breakdown her revised investing
Speaker 1: strategy for Chinese stocks, but she has plenty to say
Speaker 1: about American technology as well. That's certainly an area time
Speaker 1: we know she invests heavily in. In part two of
Speaker 1: your conversation with Ark invest founder CEO and ce IO,
Speaker 1: we delve into some of the investment management firm's top
Speaker 1: domestic picks in the Dawn of Artificial Intelligence really are
Speaker 1: a little bit about Tesla as what's gonna say. I
Speaker 1: love what she said about lap on stage. Also remember
Speaker 1: those robotaxis. Kathy would has big thoughts for how big
Speaker 1: of a business that can be. So one other name
Speaker 1: I've got to bring up with you. I'd be remiss
Speaker 1: not to you, And I've talked about it a lot.
Speaker 1: Elon Musk and Tesla, and I think we're all still
Speaker 1: trying to get our head a little bit around what
Speaker 1: happened on AI day and this human humanoid robot that
Speaker 1: he talked about to take over boring work. How do
Speaker 1: you factor in? I mean, Elon is somebody who throws
Speaker 1: out some really creative ideas NonStop. How does that or
Speaker 1: what did What did you take away from that presentation? Yes?
Speaker 1: What I what I took away, especially in reading uh
Speaker 1: many many of the articles about it, is that, um,
Speaker 1: there are not many people who are deeply, deeply involved
Speaker 1: with artificial intelligence, and that is who that day was for.
Speaker 1: They were trying to attract AI talent to tackle the
Speaker 1: most difficult and probably most transformational opportunity, certainly in terms
Speaker 1: of transportation, all kinds of transportation, not just cars and trucks,
Speaker 1: but ultimately drones and things um uh using artific facial intelligence.
Speaker 1: So I think the press took away see this was
Speaker 1: a nothing. I was kind of entertainment with this robot.
Speaker 1: But there they go, changing the subject again. If anyone
Speaker 1: who was who has been steeped in an AI and
Speaker 1: and wants to take up the challenge that they're offering,
Speaker 1: uh got um got uh tremendous perspective on how far
Speaker 1: ahead Tesla is relative to almost anyone else. I would
Speaker 1: say Google is is is up there, but in in
Speaker 1: many ways in autonomous transportation, uha is is um in
Speaker 1: the lead. So I don't think it was the AI
Speaker 1: day was not for investors. It was going to go
Speaker 1: over their heads most of it, um and And yet
Speaker 1: for those who tuned in, he offered a little bit
Speaker 1: of entertainment. I suppose almost our intelligence and us we're
Speaker 1: blown away. And in fact, if you looked on our
Speaker 1: website you'll see are we We put out a newsletter
Speaker 1: every Monday morning and we summarized some of the more
Speaker 1: important takeaways we had uh from that day. So it
Speaker 1: sounds like no doubt about you're staying with Tesla. You're
Speaker 1: still in on the company, in on the strategy, without
Speaker 1: a doubt, without a doubt every passing day, especially the
Speaker 1: more we learn about their AI expertise and um, how
Speaker 1: they're really driving this space, so to speak, much faster
Speaker 1: than I think anyone else is. Right now, we believe
Speaker 1: they have the pole position too, and we've increased our
Speaker 1: our estimate here. In the next ten years, we think, uh,
Speaker 1: the autonomous taxi network opportunity in the US will be
Speaker 1: eleven to ten trillion dollars from nothing today. Think about
Speaker 1: that eleven to our economy. Now, it's not just this economy.
Speaker 1: That eleven to twelve is a global opportunity. But just
Speaker 1: to give you a sense of the size of that opportunity,
Speaker 1: our economy is twenty one twenty two trillion dollars. This
Speaker 1: opportunity alone is twelve trillion. In ten years, the market
Speaker 1: will start to recognize it, and we think we will
Speaker 1: in the marketplace in the middle of this decade five
Speaker 1: the market caps will probably be scaling towards the three
Speaker 1: to five trillion dollar range for nothing. So even with
Speaker 1: you know the chip shortage is impacting the auto industry,
Speaker 1: tests you know, you still remain steadfast on Tesla despite
Speaker 1: those chip shortages that are impacting the overall industry. You know,
Speaker 1: it's very interesting. On the last quarterly Callum uh test
Speaker 1: Elon himself said, you know, the chip shortage might be
Speaker 1: lessening here. I know we're hearing uh she am and others,
Speaker 1: but I have thrown out another thought out there. You know,
Speaker 1: auto sales have dropped from eighteen and a half million units,
Speaker 1: this is just the US at an annual rate in
Speaker 1: April to fourteen point seven five. I do not believe
Speaker 1: that is only because of a chip shortage. I think
Speaker 1: it is the beginning of a massive transformation towards electric
Speaker 1: That was our convest founder CEO and ce IO Kathy would.
Speaker 1: If you missed any of that conversation, feel free to
Speaker 1: check it out at Bloomberg dot com and also on
Speaker 1: our podcast feed. This is Bloomberg. You're listening to Bloomberg
Speaker 1: Business Week with Carol Masser and Bloomberg Quick Takes. Tim
Speaker 1: Stinovik from Bloomberg Radio. Well, it's been a while since
Speaker 1: we checked in with her last. I think it was
Speaker 1: last fall last October when the lights were still dark
Speaker 1: on Broadway in an unprecedented shutdown of New York Theater
Speaker 1: because of COVID nineteen. Well, Broadway is back, reopenings, restarts,
Speaker 1: news shows. Here with an update. Delighted to have back
Speaker 1: with us, Charlotte st. Martin, she's president of the Broadway League.
Speaker 1: On the phone in New York City, Charlotte, it is
Speaker 1: so good to have you back. How are you well,
Speaker 1: I'm great. We're We've already had our first official opening
Speaker 1: and we have two shows opening next week. So we're
Speaker 1: back and we're getting ready to be back in a
Speaker 1: big way. So tell us though, because you have been
Speaker 1: so wonderful and giving us several interviews during the pandemic,
Speaker 1: especially in the dark days of the shutdown initially, Uh,
Speaker 1: and just kind of waiting for things to improve, and
Speaker 1: it's taken obviously a long time. What has this year
Speaker 1: been like, Well, certainly it's been a lot of up
Speaker 1: and downs because, uh, we were doing so well with
Speaker 1: the variants that are out there, and then all of
Speaker 1: a sudden we got challenged with the delta variant. But
Speaker 1: at the end of the day, we've waited the right
Speaker 1: amount of time to make sure that we had all
Speaker 1: the safety protocols and that we were prepared to open
Speaker 1: so that we didn't have to open and close. Certainly
Speaker 1: everybody is ready for theater, and uh, many people were
Speaker 1: hurt during this period, but the light at the end
Speaker 1: of the tunnel is looking very bright at the moment.
Speaker 1: All right, you said, waited the right amount of time.
Speaker 1: Tell me about the conversations you've had to have with
Speaker 1: various parts of your industry, parts of the theater industry
Speaker 1: to figure out and health officials, I'm guessing maybe unions
Speaker 1: to figure out what would be the right time. Right
Speaker 1: and well, First of all, Broadway operates with seventeen union
Speaker 1: contracts that are held with fourteen different unions, and each
Speaker 1: one has different types of interaction, whether it's hair and
Speaker 1: wigs or makeup or costumes or stage hands. So each
Speaker 1: one of those unions we had to work with them
Speaker 1: and develop the protocols that made them comfortable. So, yes,
Speaker 1: we've done all of that. And as I'm sure I
Speaker 1: said to you, uh last October, we could not afford
Speaker 1: with the cost structure that Broadway lives under to open
Speaker 1: and then close and reopen and then close, so we
Speaker 1: waited until enough people were vaccinated and we had all
Speaker 1: of these protocols put in place that we felt we
Speaker 1: could deliver uh safety for the cast, crew and audience.
Speaker 1: You know. That's what's been interesting also about the last
Speaker 1: year and a half. I feel like for certain industries,
Speaker 1: your industry, the theater industry, certainly for the restaurant industry,
Speaker 1: the layers have been peeled back. I think we thought, oh, wait,
Speaker 1: you know, some of these successful shows or these successful restaurants.
Speaker 1: You know, they'll be okay, they've made a lot of money,
Speaker 1: but it's financially um everything needs to be kind of
Speaker 1: going gangbusters for it to kind of keep going in
Speaker 1: the future. Correctly, we've really gotten an ability to to
Speaker 1: look into the business, the financial structure of let's say,
Speaker 1: the theater industry, and and it's everything. You know, people
Speaker 1: have to be in the theaters. They need to be
Speaker 1: full for it to be working. Well, that's correct. I mean,
Speaker 1: when you think about it, they they're the best theatrical
Speaker 1: employees in the world, but they're also the most expensive.
Speaker 1: And the rule of some has been we need the
Speaker 1: shows to be uh sevent full as an average. Some
Speaker 1: shows need nine and some can get to break even
Speaker 1: and continue operating. It depends on the size of the show.
Speaker 1: The size of the cast, the costs of the various contracts,
Speaker 1: so uh, it's it's a very uh they're very tight
Speaker 1: margins for Broadway unless you're a gang Busters hit and
Speaker 1: those don't come along very often. You know that you
Speaker 1: not only uh invest twelve to fifteen million dollars minimum
Speaker 1: for a new musical and two to five million dollars
Speaker 1: for a new play, but then you have the running
Speaker 1: costs every week. I mean a typical uh cost for
Speaker 1: the for a week of a big musical is at
Speaker 1: least a million dollars, So you've got to sell board
Speaker 1: tickets then a million dollars just to break even. So
Speaker 1: it's an exciting industry, but it also requires real investment
Speaker 1: and real revenue to keep it alive. Bunch of shows
Speaker 1: coming back, we've already seen a couple of rollouts. When
Speaker 1: it comes to Broadway in theater, how do you do
Speaker 1: it safely? What's the mandate when it comes to vaccines?
Speaker 1: We have mandated that all of our audience uh mess
Speaker 1: show proof of vaccination and we're masks during the shows
Speaker 1: until we make a different decision. So we feel like
Speaker 1: we've got the audience taken care of, certainly for the
Speaker 1: cast and crew, their man, mandatory vaccinations for all employees,
Speaker 1: testing requirements weekly, and pre employment. Each of the shows
Speaker 1: has hired their own COVID safety management manager to make
Speaker 1: sure that all of the protocols are being uh being
Speaker 1: lived up to. And then there's so many additional things
Speaker 1: like the heating, ventilation and air conditioning standards, the cleaning
Speaker 1: and disinfection practices. UH specific protocols based on job because
Speaker 1: they would be different for an orchestra. Our person works
Speaker 1: in the orchestra versus a costume manager. So uh there.
Speaker 1: We've spent eighteen months developing uh these safety protocols with
Speaker 1: our unions, and we've worked closely together because we all
Speaker 1: have the same goal, which is to have everyone's safe
Speaker 1: that's in our care. And with the exciting UH September
Speaker 1: that we have where so many shows are sold out
Speaker 1: or close to sold out, we have to make sure Yeah,
Speaker 1: that's what well and that's well. Two questions I have
Speaker 1: for you are in terms of protocols, because we've talked
Speaker 1: about this with a lot of CEOs of companies. Are
Speaker 1: people who run school educational systems, you know, who have
Speaker 1: been replacing their ventilation systems. Is there a lot of
Speaker 1: that going on or is it just maintenance and you know,
Speaker 1: increased maintenance when it comes to the existing systems, well,
Speaker 1: it totally depends upon the theater. I mean, we have
Speaker 1: forty one theaters and some of them are relatively new,
Speaker 1: and some are over a hundred years old. And yet
Speaker 1: you know there's one theater that's over three years old
Speaker 1: that has totally replaced their system. So they all have
Speaker 1: new filter upgrades and constant assessment. And you know, we're
Speaker 1: living up to the standards that have been established by
Speaker 1: the CDC and we'll continue to do that. So tell
Speaker 1: us what's coming in the fall, and tell me a
Speaker 1: little bit more. You just mentioned about ticket sales and
Speaker 1: what that you know, gives you an indication of how
Speaker 1: many people will be coming back to Broadway. Well, we
Speaker 1: have between September two and December thirty one, we have
Speaker 1: thirty four shows returning or opening. Um, some of those
Speaker 1: were obviously playing when we shut down on March twelfth,
Speaker 1: and some are new, like Passover that just opened a
Speaker 1: couple of weeks ago. And uh, we have many more
Speaker 1: new shows opening. And as with everything else in the world,
Speaker 1: the Internet has made it easier for people to buy
Speaker 1: their tickets, so they don't buy as feign advance as
Speaker 1: they used to. But right now September October looking very strong. Um,
Speaker 1: and we're very positive about the outlook at this point. Yeah,
Speaker 1: it's pretty amazing if you go to things like Broadway
Speaker 1: dot Com and you just get you know, run down
Speaker 1: of the listing. As you said, some of the old favorites,
Speaker 1: whether it's Hamilton's Wicked, you know, the Lion King, or
Speaker 1: there's some new things coming out. Um, I am curious
Speaker 1: to just got about a minute left here. When it
Speaker 1: comes to this past year and a half, so much
Speaker 1: of real life often impacts what we see in terms
Speaker 1: of content, whether it's streaming content, network content, whether it's podcasts,
Speaker 1: and certainly in theater. How has the last year and
Speaker 1: a half maybe impacted some of the shows that we
Speaker 1: might see ultimately on Broadway. Well, at this point we're
Speaker 1: glad that some shows had the opportunity to stream previously
Speaker 1: recorded sessions, like Hamilton's, but as this point we're not
Speaker 1: looking at streaming as a new way of doing business
Speaker 1: for Broadway. That doesn't mean it won't be in the future,
Speaker 1: but right now there's really nothing that replaces live theater
Speaker 1: and that's what our that's what our theatergoers tell us.
Speaker 1: And forgive me what have it? You know what I
Speaker 1: really what I really meant is the pandemic and the situation.
Speaker 1: Of course, the injustice with George Floyd. How did that
Speaker 1: impact maybe content that we'll see up on stage. And
Speaker 1: we've just got about twenty five seconds. Well, we have
Speaker 1: ten shows that have announced and that are opening this
Speaker 1: fall and early next year that are written by black
Speaker 1: and bipoc playwrights. So that's a major step forward. I mean,
Speaker 1: Broadways always had diversity in casting, or at least it's
Speaker 1: had it for a long time. But I think a
Speaker 1: lot of this was about, you know, adding more of
Speaker 1: the behind the scenes, the creatives for people of color,
Speaker 1: and our thanks to Charlotte Say Martin, president of the
Speaker 1: Broadway League. That wraps up the first hour of the
Speaker 1: weekend edition of Bloomberg Business Week from Bloomberg Radio. I'm
Speaker 1: Carol Masser and I'm Tim Stanovac. Coming up in our
Speaker 1: next hour, our domestic cover story on why Targets history
Speaker 1: of close ties with police is leaving black Americans wary
Speaker 1: of the retailer. That story on Target, it's an incredible
Speaker 1: story We'll also talk about the future of work with
Speaker 1: Lincoln CEO Dan Shapiro. Also a real estate tech platform,
Speaker 1: Tim that's easing the path to home ownership, and our
Speaker 1: Pursuit team's fault Fashioned guide. You do not want to
Speaker 1: miss it. Get ready for smoking shoes most smoking or
Speaker 1: is it smoking slippers? I don't know what you what
Speaker 1: You don't have to smoke to wear? Apparently not. That's
Speaker 1: coming up. This is Bloomberg. This is Bloomberg Business Week
Speaker 1: Inside from the reporters and editors who bring you America's
Speaker 1: most trusted business magazine, plus global business, finance and tech
Speaker 1: news as it happened Sloomberg Business Week with Carol Messer
Speaker 1: and Bloomberg Quick Takes Tim Stenovik on Bloomberg Radio. Hi,
Speaker 1: I'm Carol Masser and plenty ahead in our second hour
Speaker 1: of the weekend edition of Bloomberg Business Week, including the
Speaker 1: latest in labor with the CEO of LinkedIn, and also
Speaker 1: how a two billion dollar startup helps make dreams of
Speaker 1: home ownership come true. Plus our Bloomberg Pursuits team is
Speaker 1: out with its Fall fashion issue. And you know, I'm
Speaker 1: always taken notes when I look at fashion, when I
Speaker 1: look at pursuits, even if that's stuff, you know, like
Speaker 1: a twoty tho dollar watch, Carol, well quite outside of
Speaker 1: my price range, by a home by a watch, Those
Speaker 1: are sometimes the choices I guess first up this hour, though,
Speaker 1: let's get to this week's domestic cover story. It's all
Speaker 1: about Target and how the retailer's close ties with law
Speaker 1: enforcement have affected its image among black Americans. Peter Waldman
Speaker 1: and Lauren Eder with our Projects and Investigations team. They
Speaker 1: co wrote the piece, and Peter helped us understand targets
Speaker 1: history of funding surveillance in inner cities, and how it's
Speaker 1: trying to convince people of color that the company has
Speaker 1: changed UM. Laura and I undertook a piece about essentially
Speaker 1: what Target has been doing over twenty years or so,
Speaker 1: where they have kind of aimed their own internal UM
Speaker 1: surveillance mechanisms on the neighborhoods around some of their stores
Speaker 1: and been very cozy with police, funding surveillance systems, cameras,
Speaker 1: integrated data systems where people can report things and and
Speaker 1: a lot of it is just speculation, but it always
Speaker 1: has ideas and and and license plates and all kinds
Speaker 1: of information about people in streets and other places, and
Speaker 1: they may not have committed any crime. UM. As you mentioned,
Speaker 1: they are doing a one eight now. In the last year, UM,
Speaker 1: Target has been extremely decisive about embracing the racial justice movement,
Speaker 1: and they've committed some two billion dollars to supporting black
Speaker 1: entrepreneurs and talking to a lot of community groups about
Speaker 1: how they manage their stories, particularly in the inner cities.
Speaker 1: But we show in this week's cover story in Bloomberg
Speaker 1: Business Week, UM that they really spent I don't know,
Speaker 1: the first fifteen years of this century quite closely allied
Speaker 1: with police departments all over the country and spending a
Speaker 1: lot of money helping them with this whole surveillance situation, Peter,
Speaker 1: Was it the murder of George Floyd in May of
Speaker 1: that was the inflection point for for Target? And we
Speaker 1: should know this is a company based in Minneapolis. The
Speaker 1: city is core to the company's DNA and just the
Speaker 1: fact that the murder happened so close to Target. After
Speaker 1: the murder, just days afterwards, the CEO and chairman of Target,
Speaker 1: Brian Cornell, issued a statement saying his team literally wept
Speaker 1: at the lack of progress on racial justice issues, and
Speaker 1: certainly the response and uprising in Minneapolis was the catalyst
Speaker 1: for that response from Cornell UM. I will say though
Speaker 1: that TARGET began retreating from its most active programs, UM
Speaker 1: spending money and in developing partnerships with police departments around
Speaker 1: the country back UM oh around two thousand fourteen. Two
Speaker 1: thousand fifteen, also as you will call UM a noted
Speaker 1: moment in the Black Lives Matter movement with UM the
Speaker 1: killings and places like Ferguson UH and in response to
Speaker 1: all of that, TARGET seemed to really change tax and
Speaker 1: UM has spent more of its UM law enforcement money
Speaker 1: and energy and philanthropy on things like UM Shop with
Speaker 1: a Cop programs which have police take underprivileged kids shopping
Speaker 1: at targets around Christmas time, and other more community oriented events.
Speaker 1: So I would say that one eight began several years ago,
Speaker 1: but there is no doubt that the pace has picked
Speaker 1: up dramatically over the last year. You include a lot
Speaker 1: of individuals, or some specific individuals, I should say in
Speaker 1: your story tell us about William Mende sure UM. William
Speaker 1: was one of many many naming UM young people, mostly
Speaker 1: of color, on the streets of Minneapolis, as you mentioned,
Speaker 1: targets hometown where they did their most intensive programming around
Speaker 1: law enforcement in what we call UM or I should say,
Speaker 1: support of what we call broken windows policing, which is
Speaker 1: that doctor and that says you have to arrest UM
Speaker 1: people for any kind of petty and fraction, whether it's
Speaker 1: riding bikes on sidewalks or loitering, littering, uh, urinating, you
Speaker 1: name it. If they cite these young generally young people
Speaker 1: or others on the streets, then they won't uh, they'll
Speaker 1: get the pick, they'll get the idea, and won't commit
Speaker 1: more serious crimes. UM. So Target was as were many companies,
Speaker 1: and I should say police departments very involved in in
Speaker 1: supporting that. After going back into the two thousand four
Speaker 1: through let's say two thousand fIF team time frame, and
Speaker 1: William was you might say someone caught up in that.
Speaker 1: He UM was arrested many many times inside the so
Speaker 1: called Target safe zone, which is this area of about
Speaker 1: forty blocks in downtown Minneapolis where they literally went on
Speaker 1: this extremely aggressive I should say the police went on
Speaker 1: the sixtremely aggressive arrest campaign. Um Uh, we're using surveillance
Speaker 1: cameras to spot kids. We quote a UM defense attorney,
Speaker 1: the Public Defender of Minneapolis at the time, saying that
Speaker 1: they were sure that the police were all watching UM
Speaker 1: monitors to just find some reason, find some suspicion on
Speaker 1: people in the street, UH, to come out and search
Speaker 1: them and arrest them for minor offenses. UM. This all
Speaker 1: goes back to, as I said, the UM money the
Speaker 1: targets spent on setting up safe zone in downtown Minneapolis.
Speaker 1: That's Bloomberg News Projects and Investigations reporter Peter Walden. It's
Speaker 1: a deep story, a lot of information, so feel free
Speaker 1: to also check it out at Bloomberg dot com and
Speaker 1: also on the Bloomberg terminal. You're listening to Bloomberg Business Week.
Speaker 1: Coming up the women behind a property tech startup that
Speaker 1: just hit a two billion dollar valuation and is working
Speaker 1: to make renters into homeowners. Divvy Home CEO Adina he
Speaker 1: Fitz is coming up next. This is Bloomberg. This is
Speaker 1: Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes
Speaker 1: Tim Spenovin from Bloomberg Radio. So you may have come
Speaker 1: across a recent story on the Bloomberg and at Bloomberg
Speaker 1: dot com. It's about the property tech startup that buys
Speaker 1: homes on behalf of renters and then helps them to
Speaker 1: become owners. Well, did hit a two billion dollar valuation
Speaker 1: thanks to a recent round of equity financing that was
Speaker 1: led by Tiger Global Management and also Caffeinated Capital. We're
Speaker 1: talking about Divvy Homes and Carol, you caught up with
Speaker 1: the company's CEO, Adina he Fits. So we were founded
Speaker 1: about four years ago, but we've been purchasing homes for
Speaker 1: customers and helping the acxis home ownership for about three
Speaker 1: years at and how's it going so far? Give us
Speaker 1: give us some ideas of a typical scenario and how
Speaker 1: it works out. Sure, so it's it's been really interesting.
Speaker 1: What we have found is that especially during the COVID period,
Speaker 1: access to mortgage has actually only gotten more challenging, and
Speaker 1: so we saw a rapid rising demand during the COVID
Speaker 1: time period and say, um have thousands of customers who
Speaker 1: are using us to purchase homes across sixteen different markets.
Speaker 1: What's really interesting is u how well people are actually
Speaker 1: being able to buy back to home. So we're seeing
Speaker 1: a buy back rade of roughly which is four times
Speaker 1: uh sorry, ten times the the average. The most rent
Speaker 1: to own companies have the most rent own companies are
Speaker 1: are sort of low single digits UM, and we're almost
Speaker 1: ten x that amount in terms of buyback rade. What's
Speaker 1: even more interesting is that our customers have on average
Speaker 1: about eighty two hundred dollars of savings in their home UM.
Speaker 1: And so when you think about the average American most
Speaker 1: doesn't have UM almost anything in savings. I think the
Speaker 1: average amount of savings for rent or is roughly about
Speaker 1: eight hundred dollars. So we're right now helping your customers
Speaker 1: save a lot, which feels really good. When you say
Speaker 1: customers have an average of eight in savings on their home,
Speaker 1: what is exactly do you mean by that? Is that equity?
Speaker 1: Is that? What that is? Yes, exactly, UM. So we
Speaker 1: we don't technically from a legal perspective, it's not technically
Speaker 1: called UM. It's not technically equity. However, UM. What we
Speaker 1: do is we we basically keep a virtual equity account
Speaker 1: for them, So they contribute savings into an account, we
Speaker 1: save there for them, and we give them credit for
Speaker 1: for their percent ownership in the house. So let's say
Speaker 1: buy a house, Carol ad Let's say a hundred thousand
Speaker 1: dollars UM. They put in ten thousand dollars at the
Speaker 1: beginning of the program that home appreciates to add twenty
Speaker 1: thousand dollars. They owned ten percent of at home, So
Speaker 1: the ten thousand dollars they originally put in, but they
Speaker 1: actually their ownership is ten percent, and so the value
Speaker 1: of that equity is close to twelve tho dollars And
Speaker 1: they made a two thousand dollar gate on their equity
Speaker 1: and they get the full benefit of that. So you
Speaker 1: said about the buy back grade of people who UM
Speaker 1: rent to buy, the buy back grade is and you said,
Speaker 1: that's ten times some of the other rent to own companies.
Speaker 1: Of the sixty percent who don't ultimately do it. What happens.
Speaker 1: So it's actually interesting if we're seeing a lot of
Speaker 1: people who um, you know, saved up to ten percent,
Speaker 1: but turns up they need just a slightly larger down payment,
Speaker 1: as we're seeing a decent percentage of people who actually
Speaker 1: just stay in the house and continue to build up
Speaker 1: equities so they build up a larger round payment. Settings. UM,
Speaker 1: there are some people who also just turn over. UM.
Speaker 1: You know, we really encourage access to homeownership, but we
Speaker 1: want some one to be able to actually want to
Speaker 1: live in the home. So if your neighbor, you know,
Speaker 1: you don't get alot with your neighbor, you don't like
Speaker 1: the school district, and you want to move, we don't
Speaker 1: make it to that you're stuck in this house. You
Speaker 1: cash out your equity and you can move on to
Speaker 1: another location that might work better for you. Do you
Speaker 1: think you know? Ultimately and get to a point where
Speaker 1: most renters become a homeowner in this process, that is
Speaker 1: what our our goal is. Like our goal we're starting
Speaker 1: out at four. Our goal is only to increase that
Speaker 1: over time, and we've done that through a couple of
Speaker 1: very specific things. So first, UM, we offer a free
Speaker 1: credit counseling for all of our customers. That's a really
Speaker 1: important part of our program. UM. Second, we have mortgage
Speaker 1: partnerships UM, so we're able to refer customers over the
Speaker 1: mortgage providers today that helps them actually work through the
Speaker 1: home buying process. In the future, what we want to
Speaker 1: do is be able to eventually help issues the mortgage
Speaker 1: to the customers ourselves, and that's something that we're slowly
Speaker 1: building towards because this buy back portion um and increasing
Speaker 1: the percentage is quite important to us over time. So
Speaker 1: you mentioned you know, Adina. The goal is to get
Speaker 1: you know, more UH renters in every renter if possible.
Speaker 1: Who part taking your program to become a owner in
Speaker 1: this process? Tell me a little bit about, you know
Speaker 1: how the traditional financial system when when we talk about
Speaker 1: it a fair amount here at Bloomberg, they really don't.
Speaker 1: They really kind of ignore a big part of the population.
Speaker 1: How do you deal with things that they might say
Speaker 1: is important like bad credit ratings or not a credit
Speaker 1: credit history, or low income? How do you deal with that? Sure? Yeah,
Speaker 1: So the mortgage market was created, has been around for
Speaker 1: a while, but was really put into um existence by
Speaker 1: the GSCs back in and during that time they set
Speaker 1: underwriter requirements so FICO requirements where your income had to
Speaker 1: be debt to income ratios and down payment requirements. Rightfully,
Speaker 1: so those requirements have not changed over the last hundred years.
Speaker 1: And the reason why is the couple of times since
Speaker 1: that they've tried to change them slightly, it's led to
Speaker 1: two major issues like the global financial crisis. Right um
Speaker 1: and and so I actually really believe that the mortgage
Speaker 1: market is efficient and should continue to operate as it
Speaker 1: is operating. And the reason why if there is someone
Speaker 1: who is unable to make their mortgage payments and there
Speaker 1: has to be a foreclosure that happens. For closures are
Speaker 1: extremely expensive and just take a really really long time,
Speaker 1: mostly because they're just so heavily regulated. Did he can
Speaker 1: take on people who are in a wider credit spectrum
Speaker 1: than than a traditional mortgage, So we go as well
Speaker 1: as a five fifty kom although our sweet spot is
Speaker 1: right around called six seven hundred YCHO. We only require
Speaker 1: one to two percent of the home value as a
Speaker 1: down payment UM. So are our customers generally have on
Speaker 1: average call it two to six thousand dollars saved up UM,
Speaker 1: we require a minimum of two thousand dollars UM. And
Speaker 1: because our our our product is fundamentally a rental product,
Speaker 1: if the tenant is unable to make a payment, we're
Speaker 1: able to be a little bit more flexible, try to
Speaker 1: work through a payment plan and ultimately, in the worst
Speaker 1: case scenario, if we do have to go through an eviction.
Speaker 1: UM evictions are less costly and take a lot less time,
Speaker 1: which means that we can take more risk and opening
Speaker 1: up the aperture for who we offer this product too
Speaker 1: than a mortgage can take. Hey, and doing this what
Speaker 1: has been a surprise to the upside. What has been
Speaker 1: a surprise to the downside. Oh wow, that's an interesting question. Uh,
Speaker 1: surprise that the upside has just been Um. You know,
Speaker 1: everyone talks about starting a mission based company, and for me,
Speaker 1: that has really just gotten better over time. I love
Speaker 1: waking up every day. I love helping people actually act
Speaker 1: as homeownership. I really believe that it is a major
Speaker 1: way to to grow well for the low middle income Americans.
Speaker 1: So I think it's actually quite important. Um to the downside,
Speaker 1: I would say, Um, you know, building a company is
Speaker 1: just a bumpy ride. UM, and things like you know,
Speaker 1: right now, we're having a mass shortage of inventory. UM.
Speaker 1: Interest rates are kind of very low right now, but
Speaker 1: kind of jumping all over the place, and we're not
Speaker 1: sure where they're going to go. You know, you have
Speaker 1: to be prepared for some of these macro things that
Speaker 1: impact your business but maybe are hard to predict at
Speaker 1: the onset. I never thought I was gonna be managing
Speaker 1: a company through a global pandemic. I've learned more in
Speaker 1: the last year and a half than I have probably
Speaker 1: my prior prior, you know, thirty four years um. And
Speaker 1: so I think that that has made it a really
Speaker 1: interesting learning experience, but but definitely um a little bit
Speaker 1: of a crazier ride than I had expected. That was
Speaker 1: Divvy Home CEO Adina half Fits Till come on Bloomberg
Speaker 1: Business Week, How we work in the future. Tim, you
Speaker 1: caught up a great interview with LinkedIn CEO Dan Hippira.
Speaker 1: What's so cool about LinkedIn is they have all the data.
Speaker 1: They see what people are posting, they see what people
Speaker 1: are clicking on, what people are applying to and Dan
Speaker 1: shared some of that with us. This is Bloombarging broadcasting
Speaker 1: from the financial happital of the world. Bloomberg Eleve in
Speaker 1: Rio in New York to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one oh six one does San Francisco, Bloomberg nine
Speaker 1: to the country, Sirius XM Chamber and around the globe,
Speaker 1: the Bloomberg Business and Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes.
Speaker 1: Tim Stenovan on Bloomberg Radio. So, Tim, if there's one
Speaker 1: thing we've learned over the last year and a half
Speaker 1: or so, it's that office life has been forever changed
Speaker 1: and companies are really having to go to unprecedented lengths
Speaker 1: to attract retain talent. There is a talent war going
Speaker 1: on right now, and that's really one of the reasons
Speaker 1: that we wanted to talk about the future of work
Speaker 1: with Dan Shapiro, the chief operating officer at LinkedIn. He
Speaker 1: joined me and my Bloomberg Quick Take co host Katie
Speaker 1: Greifeld to talk all about the latest from LinkedIn. The
Speaker 1: company saw twenty seven increase in revenue last year, and
Speaker 1: also what types of jobs people are looking for in
Speaker 1: company they're posting activity on that platform right now. Well,
Speaker 1: Lincoln is a platform for helping companies and professionals build relationships,
Speaker 1: and I think if there's anything we've learned over the
Speaker 1: last year is that we need as society and as
Speaker 1: a business community to be able to build relationships as
Speaker 1: the world increasingly moved digital, whether that's how companies build
Speaker 1: relationships with their customers, or employers build relationships with talent,
Speaker 1: whether that's their just employees or future employees, and all
Speaker 1: of that transition is leading to more and more power
Speaker 1: of the Lincoln platform to help companies solve problems. And
Speaker 1: so Jan I'm curious to hear if you think that
Speaker 1: people change the way that they use LinkedIn during the pandemic,
Speaker 1: because just speaking personally, I can think of so many
Speaker 1: friends who really thought critically about their life and career
Speaker 1: and what kind of career they want to have, and
Speaker 1: they use linked In for it. I mean, have you
Speaker 1: seen more people looking for jobs on the platform or
Speaker 1: just starting conversations. We're absolutely in a time where professionals
Speaker 1: everywhere are thinking about what they want from their career,
Speaker 1: how they want to work, where they want to work,
Speaker 1: and it is leading to something that we're seeing called
Speaker 1: the great reshuffle. We're both companies and professionals are reassessing
Speaker 1: a number of ways in which they've been working for
Speaker 1: a very long time. And so in a time like this,
Speaker 1: you're seeing more exploration. You're seeing greater curiosity about different
Speaker 1: kinds of jobs. And one thing in particular that we're
Speaker 1: seeing is both companies and professionals considering remote work options.
Speaker 1: If you actually go back in time before the pandemic,
Speaker 1: only about one and a half percent of jobs in
Speaker 1: the US on LinkedIn how to remote option. Now fast
Speaker 1: forwards today that numbers over eleven percent and over a
Speaker 1: quarter of all applications on their platform are going to
Speaker 1: remote jobs. And that's pretarticularly the case in some of
Speaker 1: the most highly skilled roles, like in techer and media.
Speaker 1: Is there much more interest around a company that offers
Speaker 1: a hybrid or a remote position rather than one that says, hey,
Speaker 1: this is in office, like are you seeing a quantifiable
Speaker 1: increase in the number and quality of candidates going for
Speaker 1: that job? There's no question, uh, for seven of professionals
Speaker 1: in the US want to work in a role where
Speaker 1: they can be remote or hybrid at least half the time.
Speaker 1: And we're seeing in particularly in skill sets that are
Speaker 1: in high demands, that are employers are adjusting their policies
Speaker 1: to be attractive to those kinds of professionals. So the
Speaker 1: number of jobs that have a remote option has gone
Speaker 1: up materially. Roughly one fourth of all jobs in the
Speaker 1: US in tech and in I T services are now
Speaker 1: remote enabled, and we think that that's going to continue
Speaker 1: because those are the skills that are in high demand,
Speaker 1: and that's what many professionals now have come to expect
Speaker 1: from their employer. What are the lessons that you can
Speaker 1: take away and give to two managers who are listening
Speaker 1: right now about the data in the data that you
Speaker 1: see at LinkedIn about the best ways to attract and
Speaker 1: retain talent at a time when even even though the
Speaker 1: labor market is not tight, it is tight right well,
Speaker 1: I think we are seeing the labor market get tighter
Speaker 1: over the last quarter and into the coming quarters. You're
Speaker 1: seeing that the resurgence in certain parts of the economy
Speaker 1: is leading to very aggressive hiring in certain perspectors, and
Speaker 1: that is actually ahead of people's general willingness to change jobs.
Speaker 1: Right now, many people have been and some continue to
Speaker 1: be what they call shelter and job where because the
Speaker 1: environment is uncertain, they tend to stick to what they
Speaker 1: are doing. But almost that every research study you see
Speaker 1: speaks to the fact that many people are considering a change.
Speaker 1: So the question is, how do you make sure that
Speaker 1: if you have a member of your team that is
Speaker 1: thinking about change, how do they make sure that they're
Speaker 1: exploring changes within your organization or within your team as
Speaker 1: opposed to outside. And they're going to get to questions
Speaker 1: like how do I want to work, where do I
Speaker 1: want to work? Do I work at accompany it aligns
Speaker 1: with my values or what's important to me um And
Speaker 1: we continue to find that the employers that are getting
Speaker 1: the most attraction from county to particularly those and highly
Speaker 1: skilled jobs, are the ones that are answering those questions
Speaker 1: and realizing that their employer is aligned with what they
Speaker 1: want to accomplish in their careers. That's Dan Shaveria, the
Speaker 1: chief operating officer at LinkedIn, along with Bloomberg News cross
Speaker 1: Ast reporter Katie Gratfeld. See's your host over at Bloomberg
Speaker 1: Quick Take. Yeah, quick Take stock new in Eastern time
Speaker 1: Monday through Friday. Bloomberg dot Com slash qut. Nice little
Speaker 1: promo there, all right. You're listening to Bloomberg Business Week.
Speaker 1: Coming up, Bloomberg Pursuits. It's out with its fall fashion issue,
Speaker 1: and are Chris Rouser tells us how to embrace our
Speaker 1: desire to be seen, have fun and feel strong. I'm
Speaker 1: just going to tell you glitter. It's all about glitter.
Speaker 1: That's shiny stuff. We could use a little glitter at
Speaker 1: this day and age. Right, I think so this he's Bloomberg.
Speaker 1: You're listening to Bloomberg Business Way with Carol Masser and
Speaker 1: Bloomberg Quick Takes. Tim Stinovich from Bloomberg Radio. Every you
Speaker 1: watch is like a new piece of box. It does
Speaker 1: in different stories to tell the time. Wines as a
Speaker 1: whole really speak to that quintessential need is the most
Speaker 1: powerful car made in the US period. You get the
Speaker 1: beautiful interior or the iconic design. It's very cheek and posh.
Speaker 1: Even if you bet for it. It's something that gets alright.
Speaker 1: So let's go a look at this week's pursuit section
Speaker 1: of Bloomberg Business Week magazine. It is all about fall fashion,
Speaker 1: not just about comfy clothes anymore, that's for sure. So
Speaker 1: here with what you'll find in this section is Pursuits
Speaker 1: editor Chris Rouser. Chris, I feel like it's safe to
Speaker 1: say I'm looking at you wearing shorts and a tennis
Speaker 1: shirt holding him out. Well, listen, when we were all
Speaker 1: working at home, I was living in yoga pants and jeans,
Speaker 1: but pursuits this week. I don't tell what you were
Speaker 1: working here. I was working here. But it isn't really
Speaker 1: interesting time to be debuting fall fashion, especially as you
Speaker 1: highlight in pursuits fall fashion that hlight sort of glitz
Speaker 1: and glamour. Yeah, so we were. I was watching the
Speaker 1: fall runway shows, um, which happened in spring, you know,
Speaker 1: and back in spring. In February March, like we were like,
Speaker 1: summer and fall are going to be time to party
Speaker 1: and do your had this runway show in Shanghai with
Speaker 1: their fall winters closed, and it was all disco themed
Speaker 1: and it was like, in a it was awesome. It
Speaker 1: was like just what I wanted to see, you know, uh, sequins,
Speaker 1: gold le may gowns just like party Party Studio fifty four.
Speaker 1: And then as the season went on, I just saw
Speaker 1: gold and glitter and glamor on every runway and designers
Speaker 1: were like, people are gonna want a party, They're going
Speaker 1: to be seen. There's nothing more like visible than glitter
Speaker 1: and shine. So metallics were everywhere, the color gold, um payettes,
Speaker 1: which are these big sequence and it was really just
Speaker 1: a lot of fun. And now we're in the fall
Speaker 1: and maybe it's not going to be a big party anymore,
Speaker 1: but people, um, you can still incorporate the shine in
Speaker 1: small ways with accessories, but in at leisure, which of
Speaker 1: course has ruled for the past couple of years, they're
Speaker 1: even incorporating some shine, little bits of shine and glit
Speaker 1: and glitter into their looks because they know people don't
Speaker 1: want to be in gray and black forever. No, I'm
Speaker 1: going to just warn you all. I have a sequined
Speaker 1: like biker jacket. I know it's really not for daywearing.
Speaker 1: When you bring that, I am going to be wearing
Speaker 1: it to the office. I'm so tired of like trap.
Speaker 1: I'll wear shores. You wear that, alright. What about when
Speaker 1: it comes to accessories, Chris, Yeah, so that you know,
Speaker 1: that's a great way to actually bring shine into your wardrobe.
Speaker 1: And the designers that are doing the full length glam
Speaker 1: on the runway are also doing like purses and watches
Speaker 1: and accessories that have a little bit of that shine
Speaker 1: to it, and that's a great way to like you're
Speaker 1: walking out, maybe you're going to the office running errand
Speaker 1: scrab something shiny that'll make you feel put a little
Speaker 1: pop in your step. Alright. Something I want to talk
Speaker 1: about two is watches, which is your thing in a
Speaker 1: big way. And you guys know it is right you
Speaker 1: love writing about it, um and you And there's a
Speaker 1: story that specifically talks about It's really great deep dive
Speaker 1: into Louis Vuitton and its impact on fine watch space.
Speaker 1: So fashion companies traditionally are not good at watches. They
Speaker 1: use they make Courts watches which are battery powered. Um,
Speaker 1: they're kind, they're very inexpensive. They you know they they's
Speaker 1: not the logo on it. You buy it at Macy's.
Speaker 1: UM and you know I love no, I love and
Speaker 1: like Macy's number one pan um and I love those watches.
Speaker 1: But a small number of fashion companies have decided to
Speaker 1: really invest in their watchmaking and make their own watches
Speaker 1: and their mechanical watches. So they're very complicated. Um ermez
Speaker 1: does it? Do your Chanel and Louis Baton. So this
Speaker 1: year we took a look at Louis Batan, which started
Speaker 1: making watches in two thousand and two. Um, in two
Speaker 1: thousand eight, they built their own manufacture in Switzerland. Then
Speaker 1: they bought this crazy manufacturer later on which makes all
Speaker 1: these special complications. So now Louis Vuitton is making watches
Speaker 1: that are like two hundred and fifty thousand dollars that
Speaker 1: look like nothing you've ever seen. Yeah, we're not talking
Speaker 1: tens of thousands of dollars here, We're talking hundreds of
Speaker 1: thousands's eyes and yeah, on radio, they're just popping, well,
Speaker 1: not wearing any watch right now. And I know that
Speaker 1: Chris is wearing an Apple watch. I saw that. Yeah,
Speaker 1: but what is you know, you you write in Pursuits
Speaker 1: your team rights in pursuits that Louis Batan is relatively
Speaker 1: young when it comes to making watches. Yeah, I mean
Speaker 1: the in the scheme of things, because we talked about
Speaker 1: companies that are generations old. So you know, a company
Speaker 1: like Vastron Constantine, which is also Swiss, has been making
Speaker 1: watches as for more than two hundred years, and a
Speaker 1: lot of the main innovations in watchmaking are a hundred
Speaker 1: and fifty years old. So like this technology that keeps
Speaker 1: watches going, that makes them cool still to this day
Speaker 1: is quite old. So to get into it in two
Speaker 1: thousand two, that's young. That's really new. And they've made
Speaker 1: a big effort to um, you know, to bring in
Speaker 1: the Swiss watchmaking industry and use experts and higher experts
Speaker 1: that can really make top, top quality stuff, and it
Speaker 1: looks very unusual. They they're very big into the LV
Speaker 1: logo UM, which is not Swiss, Like putting a big
Speaker 1: logo on something is very Unswissed. But Louis Vatan is like,
Speaker 1: that's our thing and that's what people want from us.
Speaker 1: And people buy it, and they've got the Geneva Seal,
Speaker 1: which I didn't realize as a thing, but it's a thing,
Speaker 1: big thing. Yeah. The Geneva Seal is like a seal
Speaker 1: of approval um, which says that things have been made
Speaker 1: to a certain percent in Switzerland and to a very
Speaker 1: very high standard. Very few watchmakers actually can get this
Speaker 1: seal of approval, and it's everything's finished perfectly, down to
Speaker 1: stuff that no normal person would see. Only a watchmaker
Speaker 1: would see it if they opened up and looked at
Speaker 1: the watch. None of us are normal. I'm just gonna say,
Speaker 1: fair enough, guilty, Hey, guilty as charge. Can we talk
Speaker 1: a little bit about fancy footwork and this part of
Speaker 1: the pursuit section because I see some pretty cool booties
Speaker 1: and smoking shoes. Are we talking about smoking shoes, Chris? Yes, oh, yes,
Speaker 1: smoking shoes are still Even if you don't smoke, you
Speaker 1: can still wear smoking shoes. So I don't know about
Speaker 1: you guys, but when you guys have been coming to
Speaker 1: the office longer than I have. But when I had
Speaker 1: to started coming back to the office, I went open
Speaker 1: my closet on the bottom row where my shoes, I
Speaker 1: picked them up and I had to dust I had
Speaker 1: I know exactly what you're talking about. I actually dust
Speaker 1: them off with like a rag, Yeah exactly, and and
Speaker 1: so and you know, of course I bet you hated
Speaker 1: half of them, and as I did. And so we were,
Speaker 1: you know, we thought, well, let's look at some shoes
Speaker 1: and and maybe if you if you have to go
Speaker 1: back to the office or just even to parties or
Speaker 1: social encounters be around people, you have to wear camera
Speaker 1: sneakers all the time. So how about have buy some
Speaker 1: fun stuff. So we picked out some some Belgian shoes
Speaker 1: which are always really fun, uh, some little booty uh
Speaker 1: like heights like um cowboy boots. We have some really
Speaker 1: great Valentino kitten heels that are red that have some
Speaker 1: molded flowers on them. So there's a lot of really
Speaker 1: fun things in the section to check out there. You
Speaker 1: know what's fun too is um the use of plastics.
Speaker 1: I have to say, going in and out of stores now,
Speaker 1: which is something I can kind of do right now,
Speaker 1: still wearing masks. But there's a lot of plastic in
Speaker 1: fashion shoes and heels using PVC. Yeah, and there's this
Speaker 1: great pair um from Amina Muadi, these Holly sling n
Speaker 1: heels which are made um from semi transparent PVCs, so
Speaker 1: they look they honestly look like Cinderella slippers, but modern
Speaker 1: I will be wearing something like that maybe in the fall. Um.
Speaker 1: They're also the fashion reality shows. I love, have loved
Speaker 1: watch them, whether it's Project Runway, Making The Cut, there's
Speaker 1: some more. There's a new one though, called The Hype,
Speaker 1: and you guys review it. Yes. Um, So there's a
Speaker 1: show called The Hype and it is about streetwear, which
Speaker 1: is a complicated subject because streetwear is the thing, like
Speaker 1: all the big fashion houses want to buy streetwear brands.
Speaker 1: Everyone wants to partner with supreme. Um. You know, when
Speaker 1: Gap acquired Kanye's company, it went the stock shares went
Speaker 1: way up. But it's it's it's complicated because a lot
Speaker 1: of it is has become corporate. And this this show,
Speaker 1: which is like Project for Streetwear, it's got designers who
Speaker 1: are making stuff by hand or they're incorporating stuff that
Speaker 1: already exists out in the in the world. So it's
Speaker 1: kind of like an up cycle hype kind of thing.
Speaker 1: And our and our net we net out on the
Speaker 1: show that it's not worth the hype. The Hype is
Speaker 1: not worth the hype. Why not because it's it's not
Speaker 1: a super well made reality show at the Parniament. So
Speaker 1: it is most fun when like there's a train wreck
Speaker 1: and people are, you know, making big mistakes, are getting
Speaker 1: in fights, which is sort of not really actually what
Speaker 1: you what we like sort of a fashion reality show
Speaker 1: to sort of to be like that's what we don't
Speaker 1: want the focus to be. But also it doesn't deal
Speaker 1: at all with what's going on in the world, so
Speaker 1: like sustainability, black lives matter, like a lot of stuff
Speaker 1: that people pandemic right, pandemic that people are talking about
Speaker 1: on the street. It just isn't in this street where show.
Speaker 1: So it just feels really detached from everything and kind
Speaker 1: of fluffy, a bit tone deaf. Um, Okay, we're going
Speaker 1: to wrap up that with one more thing that's in pursuits.
Speaker 1: And what's interesting is when you take a look at Gucci,
Speaker 1: what we're finding is Gucci is going green or greener,
Speaker 1: so all the companies are really trying to go green. Um.
Speaker 1: And we took a look at Gucci's beauty collection, which
Speaker 1: is growing under Alessandra McHale, who's a creative director. It's
Speaker 1: getting a little more romantic look and it's getting more sustainable.
Speaker 1: So in nail pola, a lot of beauty companies are
Speaker 1: trying to go what would they say is five free,
Speaker 1: seven free, twelve free, and those numbers are amounts of toxins,
Speaker 1: so like they're free of the twelve specific toxins that
Speaker 1: that are all commonly used in nail polish. And a
Speaker 1: lot of the brands that you'll see are maybe five free,
Speaker 1: seven shee free. But these Gucci, this new Gucci collection
Speaker 1: is twelve free, which is really top tier. I don't
Speaker 1: know about your wife, Like I look at nail polished
Speaker 1: and I have increasingly I am looking for clean makeup,
Speaker 1: clean nail nail polish because I think there's too many chemicals.
Speaker 1: We do the same thing, she does the same thing.
Speaker 1: Remember I wear makeup because which is fine. But you know,
Speaker 1: I do walk into a room and I knew immediately
Speaker 1: if my wife has been putting nail polish on or
Speaker 1: taking the polish off. And I'm wondering if this changes that.
Speaker 1: I think part of it is the naipolish remover though
Speaker 1: as that smell, that smell that you really think of
Speaker 1: as the remover. But you know this is also very
Speaker 1: good quality. Um our. Asia our writer who I've known forever.
Speaker 1: She is a mom, and she was washing hands, changing
Speaker 1: diapers and stuff for two weeks and the nail polished
Speaker 1: data on really solid for at leastwo weeks. So she
Speaker 1: was like, this is this is legit. What a great
Speaker 1: section looking forward to fall fashion and all of you
Speaker 1: putting some sequence or something in a little shine in
Speaker 1: your stuff. I need to get my smoking shoes. Chris
Speaker 1: has Warren actually a Terry smoking jacket, which was rather Yeah,
Speaker 1: that's true, brought it in. Yeah, we tried. I have
Speaker 1: to show you the pictures, all right. Chris Rowser, editor
Speaker 1: of Pursuits, Thank you so much. Thanks Chris. I could
Speaker 1: see you Tim definitely in those Belgian loafers. And I'm
Speaker 1: just gonna put it out there all right. Well, you
Speaker 1: know what they say to do your holiday shopping now
Speaker 1: because of supply chain. And she's Carol. So if you
Speaker 1: think that, you know, I need that addition to my wardrobe, uh,
Speaker 1: I won't say no to Okay, I'm going online right now.
Speaker 1: And that wraps up the weekend edition to Bloomberg Business
Speaker 1: Week from Bloomberg Radio. Thanks so much for joining us
Speaker 1: I'm Carol Masser and on tim Stane. Be sure to
Speaker 1: tune into our Bloomberg Business Week Daily show. It's Monday
Speaker 1: through Friday. It starts at two pm Wall Street Time
Speaker 1: on Bloomberg Radio. You can also watch our daily broadcast.
Speaker 1: It's on YouTube, just search Bloomberg Global News. Also check
Speaker 1: out our Bloomberg Business Week podcast. You convided at Bloomberg
Speaker 1: dot com, Apple or wherever you get your podcast and
Speaker 1: Bloomberg Business Week is available on newsstands right now at
Speaker 1: Bloomberg dot com and always on the Bloomberg terminal. You
Speaker 1: can also see me at Bloomberg Quick Take. It's available
Speaker 1: on Bloomberg dot com, slash qt, and streaming platforms like Roadkup,
Speaker 1: Apple TV, Samsung TV, and more. Have a great weekend.
Speaker 1: Stay safe everyone, This is Bloomberg