WEBVTT - Bloomberg Businessweek Weekend - August 27th, 2021 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business, finance and tech news As it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.240 Stinovic on Bloomberg Radio. Hi everyone, Welcome to the weekend 0:00:21.360 --> 0:00:24.599 edition of Bloomberg Business Week. Afghanistan tims still top of 0:00:24.640 --> 0:00:27.400 mind this week. Yeah, Carol, the tragic events happening over 0:00:27.440 --> 0:00:30.640 there have the whole world paying attention. Meantime, some progress 0:00:30.640 --> 0:00:33.960 in the pandemic with the Fiser vaccine getting full FDA approval, 0:00:34.320 --> 0:00:36.880 Madernas believed to be on the way, and J and 0:00:36.960 --> 0:00:40.280 J vaccine booster scene triggering an antibody surge. Still the 0:00:40.479 --> 0:00:43.440 return to office plans, Carol, they remain in flux. In fact, 0:00:43.520 --> 0:00:46.800 our international cover story is all about September not bringing 0:00:46.840 --> 0:00:49.320 the normalcy that we'd hope for. I love the international cover. 0:00:49.800 --> 0:00:52.200 It shows a calendar for September with all the dates 0:00:52.200 --> 0:00:54.640 crossed out because the way that plants have changed around 0:00:54.640 --> 0:00:56.920 the world, with people returning to the office going back 0:00:56.920 --> 0:00:58.560 to work, so many were expecting to go back this 0:00:58.600 --> 0:01:01.800 fall that keeps getting pushed perhaps some October, some January, 0:01:01.800 --> 0:01:04.319 and some unknown right earlier this year, we thought September 0:01:04.440 --> 0:01:06.520 was going to be much more normal, and we're not 0:01:06.560 --> 0:01:09.320 seeing that at all. Also, Kathy Would she is back 0:01:09.360 --> 0:01:11.480 with us. You spoke to her for a great and 0:01:11.600 --> 0:01:14.160 long interview, Carol. Why she was all set to pull 0:01:14.200 --> 0:01:17.760 out of Chinese stocks until she wasn't exactly it was 0:01:17.800 --> 0:01:19.880 just a month or so where she really changed her 0:01:19.880 --> 0:01:22.440 tune on that sector. Tons of great stories in this 0:01:22.480 --> 0:01:24.959 week's issue as well, of course, the Domestic Covers story, 0:01:25.000 --> 0:01:27.800 which is a deep dive into targets history of ties 0:01:27.800 --> 0:01:30.560 with law enforcement and its effect on Black Americans. We'll 0:01:30.560 --> 0:01:32.560 hear from the reporter on that story a little bit 0:01:32.640 --> 0:01:35.000 later on. Also in the magazine this week, there's an 0:01:35.040 --> 0:01:38.560 interesting story about women in trucking. And what's really wonderful 0:01:38.640 --> 0:01:40.759 is this was written by one of our summer interns 0:01:40.800 --> 0:01:45.200 this week, Shara Aviona. And what's fascinating is and probably 0:01:45.200 --> 0:01:48.480 not surprising, is just about six percent six point seven 0:01:48.480 --> 0:01:52.320 percent to be exact, of long haul drivers were women, 0:01:52.360 --> 0:01:55.640 according to the American Trucking Association. It's a number tim 0:01:55.640 --> 0:01:58.880 that's barely budged in almost two decades, but there's a 0:01:58.920 --> 0:02:02.040 group really looking, several groups of people looking to change that. Hey, 0:02:02.080 --> 0:02:05.160 for good reason, because it turns out that female drivers 0:02:05.160 --> 0:02:08.560 are actually better on the road. However, the road isn't 0:02:08.639 --> 0:02:14.639 always better for them. Driving requires long, regular hours, lonely conditions, 0:02:14.639 --> 0:02:17.200 and the risk of severe crashes. The field carell it 0:02:17.240 --> 0:02:20.160 usually offers few benefits that are attractive to primary caregivers, 0:02:20.200 --> 0:02:22.799 like paid print to leave or even flexible hours that 0:02:22.800 --> 0:02:24.160 that fit with the school day, and it's why we 0:02:24.200 --> 0:02:26.799 see so much turnover in the industry, regardless of gender. 0:02:26.800 --> 0:02:28.640 A little bit later in the show, We've got a 0:02:28.760 --> 0:02:33.280 great issue of Pursuits this week. It's all about fall 0:02:33.360 --> 0:02:36.239 fashion and I'm just gonna say a lot of sparkling things. 0:02:36.280 --> 0:02:38.679 It's hard to plan for exactly how things will be 0:02:38.720 --> 0:02:40.560 a few months from now, especially during the pandemic. But 0:02:40.560 --> 0:02:43.280 as our Pursuits editor Chris rouser And told us back 0:02:43.320 --> 0:02:46.120 when these fall lines debuted, when they were being thought about, 0:02:46.160 --> 0:02:48.880 when the Runway shows happened, people were thinking, wait a second, 0:02:49.240 --> 0:02:51.280 in the fall, we are going to be getting out again, 0:02:51.639 --> 0:02:53.679 and you know we're gonna want to be seen all 0:02:53.680 --> 0:02:56.640 of that to come. We do begin though with Afghanistan 0:02:56.960 --> 0:02:59.640 and how the two decade war there is turning a U. 0:02:59.720 --> 0:03:02.400 S mill, a terry startup into a unicorn. It's a 0:03:02.440 --> 0:03:04.320 story in the new issue of Bloomberg business Week. It's 0:03:04.360 --> 0:03:06.519 also online at business week dot com and on the 0:03:06.560 --> 0:03:09.760 Bloomberg Terminal. It's written by Bloomberg business Week Technology editor 0:03:09.919 --> 0:03:13.840 Joshua Breustein. The company is called Shield dot ai UM 0:03:13.919 --> 0:03:17.800 and it was started by a former Navy seal who 0:03:17.960 --> 0:03:22.400 served in Afghanistan and elsewhere overseas and was trying to 0:03:22.440 --> 0:03:26.399 solve a problem that was pretty specific to those deployments, 0:03:26.600 --> 0:03:30.440 which was entering buildings and contested areas. UM. He built 0:03:31.240 --> 0:03:34.800 a type of drone, a small drone that they would 0:03:34.840 --> 0:03:37.520 send into buildings in advance that would map the space 0:03:37.600 --> 0:03:41.800 and send video to troops outside, flying autonomously in buildings 0:03:42.400 --> 0:03:44.840 UM and that would allow them to enter if you know, 0:03:44.880 --> 0:03:50.120 if there were no enemy combatants inside. UM. So Shield has, 0:03:50.200 --> 0:03:52.800 as you said, has become a unicorn. It's just raised 0:03:52.840 --> 0:03:57.680 about two million dollars and bought several other technology companies 0:03:57.720 --> 0:04:00.640 in an attempt to move beyond that specific location and 0:04:00.680 --> 0:04:04.120 start doing things more relevant to the type of wars 0:04:04.200 --> 0:04:08.560 America might fight in the future specifically against UM enemies 0:04:08.600 --> 0:04:11.880 like UM I should say, rivals like China and Russia. 0:04:12.160 --> 0:04:14.000 So what are those because I have to say to 0:04:14.040 --> 0:04:16.800 be fair and is it sounds so simple, right, and 0:04:16.839 --> 0:04:18.920 it makes it and it sounds so logical, right. Yeah, 0:04:19.000 --> 0:04:22.040 let's go drone drones into kind of basically map out 0:04:22.080 --> 0:04:24.440 the space and check out the security. So where else 0:04:24.480 --> 0:04:27.280 can they take this? Yeah? I think the idea here 0:04:27.640 --> 0:04:31.800 UM for shield is that they could take the UM 0:04:31.920 --> 0:04:35.320 autonomous software they've been developing for this one application and 0:04:35.360 --> 0:04:39.320 apply it to other things, maybe trying to have UM 0:04:39.320 --> 0:04:43.240 communication between semi autonomous fighter jets they're patrolling a coast 0:04:43.960 --> 0:04:49.640 UM or UM or you know, networks, networks of vehicles 0:04:49.680 --> 0:04:52.720 both small and large. It's sort of open ended at 0:04:52.720 --> 0:04:55.080 this point, I think UM, and they're really just trying 0:04:55.120 --> 0:04:58.080 to look at, you know, where the U. S. Military 0:04:58.120 --> 0:05:01.680 is trying to take our to facial intelligence, which is 0:05:01.720 --> 0:05:03.520 one of the big questions UM, you know, for the 0:05:03.560 --> 0:05:06.840 Penticon itself. Yeah, I was gonna say, how comfortable are 0:05:06.880 --> 0:05:12.599 they with this? It's interesting. I think one of the 0:05:12.640 --> 0:05:15.200 one of the aspects of having these small drones that 0:05:15.200 --> 0:05:18.440 are surveys that we're serving in a relatively low stakes environment, 0:05:18.560 --> 0:05:20.880 just you know, sending video from one side of a 0:05:20.880 --> 0:05:24.440 wolf to another. Is that they slowly started to build 0:05:24.480 --> 0:05:28.359 up some trust within the military for using these things 0:05:28.400 --> 0:05:33.400 in UM in bigger, more complicated, and frankly more dangerous situations. UM. 0:05:33.800 --> 0:05:36.640 But I think that you know, there isn't full trust 0:05:36.720 --> 0:05:38.720 in these sort of systems is in the military, just 0:05:38.800 --> 0:05:41.520 like you know, anyone who's looking at relying on artificial 0:05:41.520 --> 0:05:44.000 intelligence is still questioning like is this stuff really going 0:05:44.080 --> 0:05:46.839 to work all the time when it matters well? And Joshua, 0:05:46.920 --> 0:05:50.160 I wonder how much of their success right now is 0:05:50.560 --> 0:05:54.880 military contracts? Is it all of it? Yeah? Right now, 0:05:54.920 --> 0:06:00.400 Shield only does military contracting UM. Interestingly, they's to me 0:06:00.520 --> 0:06:04.600 that they were interested in potential commercial applications. I think 0:06:04.640 --> 0:06:07.760 those are mostly around mapping and also maybe working UM 0:06:08.560 --> 0:06:12.560 on domestic law enforcement, which is an interesting and somewhat 0:06:12.560 --> 0:06:15.920 controversial spin on pretty much on a lot of military 0:06:16.480 --> 0:06:20.279 hardware and end systems that you know, maybe police Starmer's 0:06:20.279 --> 0:06:23.320 states would want to use UM some of them, some 0:06:23.400 --> 0:06:27.839 of the surveillance type capabilities that they're building. Obviously, that's 0:06:27.880 --> 0:06:29.400 probably going to be a big fight in some of 0:06:29.400 --> 0:06:31.200 the cities where they would be trying to do that. 0:06:31.200 --> 0:06:33.800 That was Bloomberg Business Week Technology editor Joshua Bruce sting 0:06:34.000 --> 0:06:36.960 so many different sides to the Afghanistan story coming up. 0:06:37.000 --> 0:06:39.400 She's been followed so closely for the last few years. 0:06:39.400 --> 0:06:42.360 When it comes to her investment strategy, we're talking about Kathy. 0:06:42.400 --> 0:06:44.760 Would you want to know where she's putting her money 0:06:45.000 --> 0:06:47.680 right now? Cathy would joins us. Next, you're listening to 0:06:47.720 --> 0:06:59.719 Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business 0:06:59.720 --> 0:07:03.479 Week with Carol Messer and Bloomberg Quick Takes Tim Spinovik 0:07:03.720 --> 0:07:07.560 from Bloomberg Radio. So we tracked what she's buying and 0:07:07.600 --> 0:07:09.440 selling on a daily basis. You can always find it 0:07:09.480 --> 0:07:12.240 on the Bloomberg terminal, and her portfolio now includes a 0:07:12.280 --> 0:07:15.000 nearly eleven percent stake in a blank check company backed 0:07:15.000 --> 0:07:18.240 by former Hollywood executive Harry Sloan. Kathy Wood is known 0:07:18.280 --> 0:07:20.840 for her investment strategy that focuses on companies that are 0:07:20.880 --> 0:07:24.560 disrupting and innovating existing industries. She spoke to Carol on 0:07:24.600 --> 0:07:27.800 a wide range of topics, including getting back into Chinese 0:07:27.800 --> 0:07:30.640 companies that trade in the US. Just one month Carol 0:07:30.800 --> 0:07:34.080 after getting out. We had been pulling out of China. 0:07:35.440 --> 0:07:41.320 We started last November actually, after after the debacle around 0:07:41.320 --> 0:07:45.840 the ant group I p O and really the banishment 0:07:46.120 --> 0:07:51.840 it seems of jack Ma, and we saw increasing increasing 0:07:51.880 --> 0:07:55.880 signs that the government was going to get tough on 0:07:55.880 --> 0:08:00.360 on companies we didn't know exact and and companies which 0:08:00.400 --> 0:08:03.920 were more than unicorns. They had exploded onto the scene 0:08:04.200 --> 0:08:08.360 and they had become so powerful, as had their leaders, 0:08:08.400 --> 0:08:12.320 that they almost seemed to be threatening, uh the government, 0:08:12.360 --> 0:08:15.680 at least that seemed to be our take on the 0:08:15.760 --> 0:08:20.200 government's response. So we were a bit cautious pulled away, 0:08:20.360 --> 0:08:24.840 and in fact our flagship fund Um had moved out 0:08:24.840 --> 0:08:27.840 of most Chinese stocks. I think we were out probably 0:08:28.800 --> 0:08:31.760 late April, late May somewhere around there. It might have 0:08:31.760 --> 0:08:35.880 been a little bit later. Gradually, you never know of 0:08:35.920 --> 0:08:40.840 the time. I think the online education UM really nationalization 0:08:40.920 --> 0:08:46.960 there uh was UM was a real valuation killer for 0:08:47.000 --> 0:08:48.920 the market. So I think that the market is going 0:08:48.960 --> 0:08:52.839 to be under pressure from evaluation point of view from 0:08:52.840 --> 0:08:55.240 a lot for a long time now, because that that 0:08:55.400 --> 0:08:59.760 sort of thing was so unexpected, uh, even even from 0:08:59.800 --> 0:09:03.640 the those of us who saw the government tightening its 0:09:03.760 --> 0:09:09.040 grip on on the country. Uh So, But what we 0:09:09.160 --> 0:09:13.920 have done we did after this last blood bath in 0:09:13.960 --> 0:09:19.080 the stocks we did, uh try and sort through, Okay, 0:09:19.120 --> 0:09:23.880 which companies are are doing things the government likes and 0:09:24.000 --> 0:09:26.840 what we're seeing those that are catering to tier three 0:09:26.880 --> 0:09:32.520 tier four cities, logistics groceries. So you've seen us by 0:09:32.840 --> 0:09:36.480 j D dot Com. J D Logistics is a big 0:09:36.520 --> 0:09:39.199 part of j D dot Com. I think they owned 0:09:39.240 --> 0:09:43.360 seventy of it. Uh So that's probably been our biggest purchase, 0:09:43.760 --> 0:09:46.480 as well as some pin Doo do for the same reason. 0:09:46.559 --> 0:09:48.800 But if you were to look at what we were 0:09:48.840 --> 0:09:53.520 doing in those portfolios, we were really swapping them out 0:09:53.559 --> 0:09:57.560 of other names that we think are are going to 0:09:57.640 --> 0:10:00.199 be continue to be in harm's way or st early 0:10:00.280 --> 0:10:04.360 under government pressure, like the Ali Baba's for example, which 0:10:04.360 --> 0:10:08.240 you've been selling. Correct. Yes, So, in terms of the 0:10:08.320 --> 0:10:12.320 recent crackdowns cathy that we've seen, does it longer term 0:10:12.480 --> 0:10:16.439 generally making more pessimistic or optimistic about investing in Chinese stocks? 0:10:16.440 --> 0:10:19.560 What's the call here? You're a longer term investor, so 0:10:19.640 --> 0:10:23.480 what's the longer term play here? Well, if you think 0:10:23.520 --> 0:10:27.000 about what China is doing they're doing many of the 0:10:27.120 --> 0:10:29.719 same things our own government and other governments around the 0:10:29.760 --> 0:10:33.920 world are doing. Uh. You know, they're most governments are 0:10:34.000 --> 0:10:40.760 concerned about data privacy, uh, national security, and even even 0:10:40.840 --> 0:10:45.320 concerned uh in some ways about the impact of social 0:10:45.320 --> 0:10:49.360 media on students and so forth. So, but we just haven't. 0:10:49.480 --> 0:10:53.440 We don't have the kind of central, centrally controlled government 0:10:53.640 --> 0:10:58.040 that can, you know, wipe those those activities and risks 0:10:58.800 --> 0:11:00.920 off the face of the earth as much as possible. 0:11:00.960 --> 0:11:03.679 That's just not who we are. We do know that 0:11:03.800 --> 0:11:08.080 China wants to wants to be number one in the 0:11:08.120 --> 0:11:12.320 world and economically certainly, and one of the ways they 0:11:12.360 --> 0:11:16.400 want to do it is with innovation, with technology. They 0:11:16.440 --> 0:11:20.200 want to bring more of it back into their country. UH, 0:11:20.280 --> 0:11:25.120 certainly the manufacturing side, UH, semiconductors being one of the 0:11:25.160 --> 0:11:28.400 most important areas in which they're investing. They haven't gotten 0:11:28.400 --> 0:11:31.800 it right. I've watched them invest in semiconductors since the 0:11:31.840 --> 0:11:35.800 early nineties, UH, where they brought in a lot of 0:11:35.800 --> 0:11:38.960 Taiwan semiconductor talent, and they just haven't been able to 0:11:39.000 --> 0:11:41.959 crack the code. So more pessimistic about China long term 0:11:42.040 --> 0:11:45.719 or more optimistic. I'm more optimistic. I'm going to turn 0:11:45.760 --> 0:11:48.319 it around a little bit. I'm not pessimistic about China 0:11:48.440 --> 0:11:53.280 longer run because I think, um, you know, they're very 0:11:53.520 --> 0:11:58.320 entrepreneurial society. Sure, the government is um putting more rules 0:11:58.320 --> 0:12:01.160 and regulations in, but I don't think the government wants 0:12:01.200 --> 0:12:05.360 to stop growth and progress at all. Of What I 0:12:05.400 --> 0:12:08.320 will say though, is I'm a little more optimistic about 0:12:08.760 --> 0:12:11.840 the United States and other economies. So it's more of 0:12:11.880 --> 0:12:16.400 a relative sort of thing. The more insular China becomes 0:12:17.400 --> 0:12:20.800 actually the less competitive in many ways. It will be 0:12:20.800 --> 0:12:26.160 because artificial intelligence. Sure, you can have all kinds of 0:12:26.280 --> 0:12:31.800 data about your own population China or Chinese government. Uh, 0:12:31.800 --> 0:12:35.000 but in order to compete in the world, you're you're 0:12:35.040 --> 0:12:39.480 going to need information everywhere. And I think governments around 0:12:39.520 --> 0:12:42.680 the world are a little suspicious, suspicious of what is 0:12:42.720 --> 0:12:44.920 happening now in China. What do you think the investment 0:12:45.000 --> 0:12:47.839 environment will look like in China in five years from 0:12:47.840 --> 0:12:50.559 now compared to what we're seeing today? And are the 0:12:50.800 --> 0:12:54.440 because you know, investors, everyone follows what you're doing, So 0:12:54.760 --> 0:12:59.319 are you positioning for the five years from now? Sure 0:12:59.480 --> 0:13:03.080 we have a five year investment time horizon. I think 0:13:03.200 --> 0:13:06.679 we're consolidating into the few names. And these are not 0:13:06.760 --> 0:13:08.839 in our flagship fund, these are in other of our 0:13:08.880 --> 0:13:12.640 more specialized sounds. So we're consolidating our positions. So we've 0:13:12.679 --> 0:13:16.360 taken it down, continued to take it down, but consolidating 0:13:16.400 --> 0:13:20.640 more towards with higher positions in names like I described, 0:13:21.040 --> 0:13:25.440 they're uh, you know, really focused on tier three, tier 0:13:25.520 --> 0:13:33.080 four groceries, logistics, uh, manufacturing in China. So we'll we'll 0:13:33.120 --> 0:13:35.679 stick with those while we wait and see, you know 0:13:35.840 --> 0:13:38.400 how the government wants to play this. If you think 0:13:38.440 --> 0:13:41.920 about it, UM, one of the reasons this may be 0:13:42.040 --> 0:13:46.080 going on now is uh, China saw what the Trump 0:13:46.160 --> 0:13:51.120 administration was like uh, and the Biden administration has been 0:13:51.280 --> 0:13:54.520 just as tough in some ways, but perhaps not as 0:13:54.559 --> 0:14:01.360 tough as a more conservative or hawkish and administration would 0:14:01.400 --> 0:14:04.520 have been around Hong Kong. And so we've got the 0:14:04.559 --> 0:14:09.160 mid term elections in November next year, so this is 0:14:09.160 --> 0:14:12.600 their window to do what they want to do, because 0:14:12.800 --> 0:14:16.559 I do believe they're not They're feeling like, um, this 0:14:16.600 --> 0:14:18.840 is a little bit of a window. And if the 0:14:18.880 --> 0:14:23.160 more hawkish administration gets in later, then um, you know 0:14:23.400 --> 0:14:25.880 they will have want to have done whatever it is 0:14:26.160 --> 0:14:28.760 up next, while more of my conversation with our invest 0:14:28.840 --> 0:14:32.280 founder c I O CEO Kathy would as we shift 0:14:32.280 --> 0:14:35.280 our focus from Beijing to the cutting edge of tech investments. 0:14:35.440 --> 0:14:37.760 Right here in the United States, you're listening to Bloomberg 0:14:37.760 --> 0:14:48.480 Business Week. This is Bloomberg broadcasting from the financial capital 0:14:48.480 --> 0:14:52.320 of the World, Bloomberg eleven Rio in New York to Washington, 0:14:52.400 --> 0:14:56.480 d C. Bloomberg to Boston, Bloomberg one O six one, 0:14:56.600 --> 0:14:59.960 does San Francisco, Bloomberg nine six, to the country Syria, 0:15:00.040 --> 0:15:02.800 Sex m Chamber one ninety and around the globe the 0:15:02.840 --> 0:15:07.560 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg 0:15:07.600 --> 0:15:11.240 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:15:11.320 --> 0:15:16.040 Stinovian on Bloomberg Radio. So in the last block you 0:15:16.080 --> 0:15:19.600 heard Kathy would have ARC Invests breakdown her revised investing 0:15:19.640 --> 0:15:22.600 strategy for Chinese stocks, but she has plenty to say 0:15:22.600 --> 0:15:25.880 about American technology as well. That's certainly an area time 0:15:25.960 --> 0:15:28.880 we know she invests heavily in. In part two of 0:15:28.920 --> 0:15:32.600 your conversation with Ark invest founder CEO and ce IO, 0:15:33.200 --> 0:15:35.800 we delve into some of the investment management firm's top 0:15:35.840 --> 0:15:39.280 domestic picks in the Dawn of Artificial Intelligence really are 0:15:39.280 --> 0:15:41.200 a little bit about Tesla as what's gonna say. I 0:15:41.320 --> 0:15:44.480 love what she said about lap on stage. Also remember 0:15:44.480 --> 0:15:48.400 those robotaxis. Kathy would has big thoughts for how big 0:15:48.400 --> 0:15:50.680 of a business that can be. So one other name 0:15:50.680 --> 0:15:52.520 I've got to bring up with you. I'd be remiss 0:15:52.600 --> 0:15:54.000 not to you, And I've talked about it a lot. 0:15:54.000 --> 0:15:56.960 Elon Musk and Tesla, and I think we're all still 0:15:56.960 --> 0:15:58.480 trying to get our head a little bit around what 0:15:58.560 --> 0:16:02.560 happened on AI day and this human humanoid robot that 0:16:02.600 --> 0:16:05.960 he talked about to take over boring work. How do 0:16:06.080 --> 0:16:08.960 you factor in? I mean, Elon is somebody who throws 0:16:09.000 --> 0:16:15.040 out some really creative ideas NonStop. How does that or 0:16:15.040 --> 0:16:18.760 what did What did you take away from that presentation? Yes? 0:16:18.840 --> 0:16:21.920 What I what I took away, especially in reading uh 0:16:22.200 --> 0:16:27.160 many many of the articles about it, is that, um, 0:16:27.200 --> 0:16:33.760 there are not many people who are deeply, deeply involved 0:16:33.840 --> 0:16:37.680 with artificial intelligence, and that is who that day was for. 0:16:38.280 --> 0:16:43.320 They were trying to attract AI talent to tackle the 0:16:43.600 --> 0:16:50.280 most difficult and probably most transformational opportunity, certainly in terms 0:16:50.320 --> 0:16:54.400 of transportation, all kinds of transportation, not just cars and trucks, 0:16:54.480 --> 0:17:01.240 but ultimately drones and things um uh using artific facial intelligence. 0:17:01.640 --> 0:17:04.720 So I think the press took away see this was 0:17:04.760 --> 0:17:07.600 a nothing. I was kind of entertainment with this robot. 0:17:08.359 --> 0:17:12.600 But there they go, changing the subject again. If anyone 0:17:12.680 --> 0:17:16.600 who was who has been steeped in an AI and 0:17:16.600 --> 0:17:19.720 and wants to take up the challenge that they're offering, 0:17:20.280 --> 0:17:25.680 uh got um got uh tremendous perspective on how far 0:17:25.800 --> 0:17:31.160 ahead Tesla is relative to almost anyone else. I would 0:17:31.160 --> 0:17:35.520 say Google is is is up there, but in in 0:17:35.560 --> 0:17:42.680 many ways in autonomous transportation, uha is is um in 0:17:42.720 --> 0:17:46.480 the lead. So I don't think it was the AI 0:17:46.640 --> 0:17:49.520 day was not for investors. It was going to go 0:17:49.600 --> 0:17:53.040 over their heads most of it, um and And yet 0:17:53.119 --> 0:17:56.159 for those who tuned in, he offered a little bit 0:17:56.160 --> 0:18:00.800 of entertainment. I suppose almost our intelligence and us we're 0:18:00.880 --> 0:18:04.120 blown away. And in fact, if you looked on our 0:18:04.119 --> 0:18:07.160 website you'll see are we We put out a newsletter 0:18:07.240 --> 0:18:10.760 every Monday morning and we summarized some of the more 0:18:10.880 --> 0:18:15.800 important takeaways we had uh from that day. So it 0:18:15.840 --> 0:18:18.840 sounds like no doubt about you're staying with Tesla. You're 0:18:18.880 --> 0:18:22.879 still in on the company, in on the strategy, without 0:18:22.960 --> 0:18:26.320 a doubt, without a doubt every passing day, especially the 0:18:26.359 --> 0:18:33.240 more we learn about their AI expertise and um, how 0:18:33.280 --> 0:18:37.040 they're really driving this space, so to speak, much faster 0:18:37.119 --> 0:18:40.080 than I think anyone else is. Right now, we believe 0:18:40.119 --> 0:18:43.800 they have the pole position too, and we've increased our 0:18:43.840 --> 0:18:47.959 our estimate here. In the next ten years, we think, uh, 0:18:48.080 --> 0:18:54.679 the autonomous taxi network opportunity in the US will be 0:18:55.440 --> 0:18:59.399 eleven to ten trillion dollars from nothing today. Think about 0:18:59.440 --> 0:19:04.440 that eleven to our economy. Now, it's not just this economy. 0:19:04.480 --> 0:19:07.639 That eleven to twelve is a global opportunity. But just 0:19:07.680 --> 0:19:10.120 to give you a sense of the size of that opportunity, 0:19:10.440 --> 0:19:14.760 our economy is twenty one twenty two trillion dollars. This 0:19:14.880 --> 0:19:19.520 opportunity alone is twelve trillion. In ten years, the market 0:19:19.600 --> 0:19:22.440 will start to recognize it, and we think we will 0:19:22.480 --> 0:19:26.440 in the marketplace in the middle of this decade five 0:19:27.720 --> 0:19:33.320 the market caps will probably be scaling towards the three 0:19:33.440 --> 0:19:37.760 to five trillion dollar range for nothing. So even with 0:19:37.960 --> 0:19:40.879 you know the chip shortage is impacting the auto industry, 0:19:40.960 --> 0:19:44.520 tests you know, you still remain steadfast on Tesla despite 0:19:44.520 --> 0:19:47.960 those chip shortages that are impacting the overall industry. You know, 0:19:48.080 --> 0:19:53.560 it's very interesting. On the last quarterly Callum uh test 0:19:54.080 --> 0:19:57.840 Elon himself said, you know, the chip shortage might be 0:19:57.960 --> 0:20:00.960 lessening here. I know we're hearing uh she am and others, 0:20:01.000 --> 0:20:04.760 but I have thrown out another thought out there. You know, 0:20:04.920 --> 0:20:09.359 auto sales have dropped from eighteen and a half million units, 0:20:09.400 --> 0:20:12.320 this is just the US at an annual rate in 0:20:12.440 --> 0:20:16.879 April to fourteen point seven five. I do not believe 0:20:16.960 --> 0:20:20.720 that is only because of a chip shortage. I think 0:20:20.760 --> 0:20:25.000 it is the beginning of a massive transformation towards electric 0:20:25.200 --> 0:20:28.480 That was our convest founder CEO and ce IO Kathy would. 0:20:28.480 --> 0:20:30.560 If you missed any of that conversation, feel free to 0:20:30.640 --> 0:20:33.000 check it out at Bloomberg dot com and also on 0:20:33.040 --> 0:20:44.040 our podcast feed. This is Bloomberg. You're listening to Bloomberg 0:20:44.080 --> 0:20:47.720 Business Week with Carol Masser and Bloomberg Quick Takes. Tim 0:20:47.760 --> 0:20:52.000 Stinovik from Bloomberg Radio. Well, it's been a while since 0:20:52.000 --> 0:20:53.960 we checked in with her last. I think it was 0:20:54.080 --> 0:20:56.520 last fall last October when the lights were still dark 0:20:56.640 --> 0:21:00.440 on Broadway in an unprecedented shutdown of New York Theater 0:21:00.640 --> 0:21:04.520 because of COVID nineteen. Well, Broadway is back, reopenings, restarts, 0:21:04.560 --> 0:21:07.360 news shows. Here with an update. Delighted to have back 0:21:07.359 --> 0:21:10.080 with us, Charlotte st. Martin, she's president of the Broadway League. 0:21:10.320 --> 0:21:12.399 On the phone in New York City, Charlotte, it is 0:21:12.480 --> 0:21:15.639 so good to have you back. How are you well, 0:21:15.680 --> 0:21:19.440 I'm great. We're We've already had our first official opening 0:21:19.480 --> 0:21:24.480 and we have two shows opening next week. So we're 0:21:24.520 --> 0:21:26.600 back and we're getting ready to be back in a 0:21:26.640 --> 0:21:29.080 big way. So tell us though, because you have been 0:21:29.119 --> 0:21:32.919 so wonderful and giving us several interviews during the pandemic, 0:21:33.040 --> 0:21:36.160 especially in the dark days of the shutdown initially, Uh, 0:21:36.200 --> 0:21:38.439 and just kind of waiting for things to improve, and 0:21:38.440 --> 0:21:41.000 it's taken obviously a long time. What has this year 0:21:41.080 --> 0:21:45.240 been like, Well, certainly it's been a lot of up 0:21:45.240 --> 0:21:50.400 and downs because, uh, we were doing so well with 0:21:50.480 --> 0:21:53.920 the variants that are out there, and then all of 0:21:53.960 --> 0:21:57.879 a sudden we got challenged with the delta variant. But 0:21:58.640 --> 0:22:03.320 at the end of the day, we've waited the right 0:22:03.359 --> 0:22:06.800 amount of time to make sure that we had all 0:22:06.960 --> 0:22:11.800 the safety protocols and that we were prepared to open 0:22:11.920 --> 0:22:15.160 so that we didn't have to open and close. Certainly 0:22:15.240 --> 0:22:20.120 everybody is ready for theater, and uh, many people were 0:22:20.200 --> 0:22:23.600 hurt during this period, but the light at the end 0:22:23.600 --> 0:22:26.200 of the tunnel is looking very bright at the moment. 0:22:26.280 --> 0:22:28.240 All right, you said, waited the right amount of time. 0:22:28.520 --> 0:22:31.240 Tell me about the conversations you've had to have with 0:22:31.880 --> 0:22:35.720 various parts of your industry, parts of the theater industry 0:22:36.040 --> 0:22:39.280 to figure out and health officials, I'm guessing maybe unions 0:22:39.520 --> 0:22:43.040 to figure out what would be the right time. Right 0:22:43.359 --> 0:22:48.040 and well, First of all, Broadway operates with seventeen union 0:22:48.160 --> 0:22:53.920 contracts that are held with fourteen different unions, and each 0:22:53.960 --> 0:22:58.680 one has different types of interaction, whether it's hair and 0:22:58.800 --> 0:23:05.240 wigs or makeup or costumes or stage hands. So each 0:23:05.320 --> 0:23:07.640 one of those unions we had to work with them 0:23:07.640 --> 0:23:12.120 and develop the protocols that made them comfortable. So, yes, 0:23:12.240 --> 0:23:15.639 we've done all of that. And as I'm sure I 0:23:15.720 --> 0:23:20.640 said to you, uh last October, we could not afford 0:23:20.680 --> 0:23:23.959 with the cost structure that Broadway lives under to open 0:23:24.080 --> 0:23:28.399 and then close and reopen and then close, so we 0:23:28.520 --> 0:23:33.240 waited until enough people were vaccinated and we had all 0:23:33.280 --> 0:23:37.639 of these protocols put in place that we felt we 0:23:37.680 --> 0:23:41.760 could deliver uh safety for the cast, crew and audience. 0:23:42.280 --> 0:23:45.040 You know. That's what's been interesting also about the last 0:23:45.119 --> 0:23:47.159 year and a half. I feel like for certain industries, 0:23:47.520 --> 0:23:51.280 your industry, the theater industry, certainly for the restaurant industry, 0:23:51.320 --> 0:23:54.520 the layers have been peeled back. I think we thought, oh, wait, 0:23:54.600 --> 0:23:58.760 you know, some of these successful shows or these successful restaurants. 0:23:58.800 --> 0:24:01.240 You know, they'll be okay, they've made a lot of money, 0:24:01.280 --> 0:24:05.639 but it's financially um everything needs to be kind of 0:24:05.680 --> 0:24:08.840 going gangbusters for it to kind of keep going in 0:24:08.880 --> 0:24:12.119 the future. Correctly, we've really gotten an ability to to 0:24:12.240 --> 0:24:15.720 look into the business, the financial structure of let's say, 0:24:15.720 --> 0:24:18.840 the theater industry, and and it's everything. You know, people 0:24:18.840 --> 0:24:20.199 have to be in the theaters. They need to be 0:24:20.240 --> 0:24:24.200 full for it to be working. Well, that's correct. I mean, 0:24:24.640 --> 0:24:28.959 when you think about it, they they're the best theatrical 0:24:28.960 --> 0:24:31.840 employees in the world, but they're also the most expensive. 0:24:32.440 --> 0:24:37.080 And the rule of some has been we need the 0:24:37.680 --> 0:24:43.480 shows to be uh sevent full as an average. Some 0:24:43.560 --> 0:24:48.200 shows need nine and some can get to break even 0:24:48.600 --> 0:24:52.520