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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg business

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Speaker 1: Week Inside from the reporters and editors who bring you

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Speaker 1: America's most trusted business magazine, plus Gloomal Business, finance and

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Speaker 1: tech news. The Bloomberg Business Week Podcast with Carol Messer

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Speaker 1: and Tim Stenebek from Bloomberg Radio.

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Speaker 2: I love it with Tim Stenebeck dances to Madonna.

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Speaker 3: Oh my God. It is just very special.

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Speaker 2: Because we're live at the US Open again. It's something

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Speaker 2: we look forward.

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Speaker 4: To everything, the best two days of well, can I

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Speaker 4: say that I don't want to, like, you know, I

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Speaker 4: don't want to make the other days feel bad, but sorry,

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Speaker 4: it's out there already. Yeah, it's pretty fun being here

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Speaker 4: at the US opener in the shadow of Arthur Ash

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Speaker 4: Stadium at the twenty twenty four US Open. There are

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Speaker 4: a lot of people here this year, Carol. The US

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Speaker 4: Open on Monday, Opening Day. Yes, the biggest single day

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Speaker 4: crowd in the history of the US Open. Seventy four thousand,

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Speaker 4: six hundred and forty one people.

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Speaker 5: We're here.

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Speaker 2: I feel like every year that we come here, we

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Speaker 2: hear like other records being broken.

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Speaker 3: We can tell you from experience.

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Speaker 2: A ticket resale market also hot. The cheapest ticket you

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Speaker 2: did some homework on this, so I had to pay

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Speaker 2: for you said right, was more than three hundred dollars

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Speaker 2: for a day session.

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Speaker 4: Three hundred and eight dollars for Arthur ash tomorrow noon

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Speaker 4: noon slot. My life has come in. I got the

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Speaker 4: media pass. We're good.

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Speaker 2: Let's get to the person who's involved in all of this.

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Speaker 2: Kirsten Corio is back with us. She's USTA chief Commercial

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Speaker 2: officer on site with us here at the US Open.

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Speaker 3: Man, it feels like a good year already.

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Speaker 6: It's a bonker's spectacular year yet again. And I will

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Speaker 6: have you know that the ticket the original ticket price.

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Speaker 6: I'm glad you said resaleing on individuals. The original ticket price.

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Speaker 6: The lowest we had was thirty two dollars at the

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Speaker 6: time original on sale, so you just have to buy earlier.

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Speaker 4: Does this drive you crazy?

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Speaker 6: Though?

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Speaker 4: Does this drive you crazy that instead of the USTA

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Speaker 4: getting the three hundred eight dollars that we spent on

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Speaker 4: tomorrow's Nune session, it's ticketmaster whoever we bought it from.

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Speaker 3: It doesn't drive me crazy.

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Speaker 6: And you know what, it's most likely from a US

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Speaker 6: Open subscriber who buys all Arthur Ash sessions who couldn't

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Speaker 6: make it for the day session. Really, I mean even

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Speaker 6: the most uber fan doesn't make it out for every

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Speaker 6: single one of the twenty five Arthur Ash sessions.

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Speaker 3: So it's probably one.

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Speaker 6: Of them, and I don't begrudge them their ability to

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Speaker 6: resell their ticket.

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Speaker 2: How much of the tickets are sold ahead of time?

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Speaker 2: I remembered you saying something I thought last year. A

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Speaker 2: lot of stuff gets sold.

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Speaker 6: Out, right, Yeah, So we had just unprecedented demand all year.

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Speaker 6: When we first went on sale the original American Express

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Speaker 6: Early Early Access for the pre sale, we sold as

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Speaker 6: many tickets in the first hour as we did in

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Speaker 6: five days last year. So it's just double digit percentages up.

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Speaker 6: The on sale a week later, double digit percentages up.

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Speaker 6: The demand is nuts.

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Speaker 4: There was this big concern two years ago that with

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Speaker 4: Serena Williams no longer playing, that you wouldn't see a

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Speaker 4: huge demand here in the US. That obviously wasn't the case.

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Speaker 4: We talked to you about that last year. How do

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Speaker 4: you explain the growth from last year to this year?

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Speaker 6: Though I think there are nearly a million people nine

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Speaker 6: hundred and fifty seven thousand to be exact who enjoyed

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Speaker 6: the twenty twenty three US Open, who said, Man, I'm

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Speaker 6: definitely coming back in twenty twenty four, and I'm going

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Speaker 6: to take some more friends with me, and I'm going

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Speaker 6: to tell all my friends.

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Speaker 3: That's the simplest answer I can give you.

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Speaker 6: But you know, beyond just the success of this event,

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Speaker 6: it feels like for the past few years, tennis has

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Speaker 6: been having a moment. More people in the US are

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Speaker 6: playing tennis, thans and for me about tennis and as challengers.

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Speaker 6: The movies and Daya represent representing the sport beautifully, and

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Speaker 6: I just have to, you know, credit the growth of

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Speaker 6: tennis participation as an element in the desire for people

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Speaker 6: to come out and see the top pros in the world.

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Speaker 2: Kirsten, how many people are returnees?

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Speaker 7: Like?

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Speaker 3: How much?

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Speaker 2: What percentage of folks are just coming to the Open

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Speaker 2: year after year after year?

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Speaker 6: Oh yeah, more than fifty percent of our ur Thrash

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Speaker 6: tickets are sold to full series ticket subscribers who do

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Speaker 6: purchase all twenty five sessions You're in, You're Out, and

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Speaker 6: those were new at ninety eight ninety nine percent.

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Speaker 2: Which is amazing. And what about the age demographics? I

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Speaker 2: think We've talked with you about this, and I think

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Speaker 2: I feel like golf went through it. Maybe I don't

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Speaker 2: know if tennis ever went through a little bit of

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Speaker 2: a lull of people were worried.

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Speaker 3: I don't know that that was the case.

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Speaker 2: But I mean, is it continuing to attract a younger

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Speaker 2: generation as well?

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Speaker 3: Well? I think the short answer is yes.

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Speaker 6: But Fan Week is which is now part of the

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Speaker 6: three week and one day US Open. The main draw

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Speaker 6: runs for two weeks, the qualifying tournament runs the week

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Speaker 6: prior that. We've called fan Week, and we've built in

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Speaker 6: all kinds of ten poll events to attract a more

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Speaker 6: diverse younger audience, younger families to that. And we had

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Speaker 6: a record two hundred and sixteen thousand people come through

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Speaker 6: that week, that Fan Week, And so that's really the

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Speaker 6: way that we can attract a younger audience, a younger demographic.

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Speaker 6: We're giving away We gave away ten thousand free rackets

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Speaker 6: thanks to Wilson during that week, and we have Heineken

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Speaker 6: Happy Hours from five to seven every one of those.

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Speaker 3: Days of block Party.

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Speaker 6: So I think that's a factor too in trying to

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Speaker 6: attract the younger audience to how cool it is to

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Speaker 6: be out here.

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Speaker 2: It works, and it translates into people coming to the

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Speaker 2: open Yeah.

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Speaker 4: Yeah, How much more capacity do you have when we

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Speaker 4: talk about the number that came on Monday, more than

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Speaker 4: seventy four thousand. Can you actually fit more people here?

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Speaker 3: We can't fit more people in the stadium.

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Speaker 6: The stadium's capacity Arthurrash Stadium is a fixed capacity. Louis

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Speaker 6: Armstrong is a fixed capacity. But we also now are

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Speaker 6: selling evening grounds passes, which is something we haven't done

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Speaker 6: for a while, so we can get more people. We

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Speaker 6: didn't like the concept of not allowing people to come

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Speaker 6: into the grounds if there's tennis being played outside of

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Speaker 6: those two stadiums, and you can go freely and watch

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Speaker 6: those if you stay all day with the grounds pass,

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Speaker 6: But if you only want to come for the evening

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Speaker 6: and watch those matches, will sell you a grounds evening.

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Speaker 4: When are those matches taking place in the first are

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Speaker 4: they in a second?

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Speaker 6: Could you have in the early rounds in the first

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Speaker 6: and in the first and second round? You know, every

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Speaker 6: one of our courts is filled with competition, and some

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Speaker 6: courts have matches that will run all the way up

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Speaker 6: until midnight, depending on how long the matches are if

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Speaker 6: they're quick matches, perhaps not, But you know, in our

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Speaker 6: first couple nights, in our first four nights of the

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Speaker 6: first two rounds, you're likely to catch some great tennis

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Speaker 6: on the outer courts as well as inside the stadium.

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Speaker 4: Some of the matches not so quick.

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Speaker 3: Yeah. Yes, he had a record breaking.

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Speaker 4: Match, Sebastian, who's on camera and actually doing everything right now.

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Speaker 4: He came out here for a match. Was it Monday, Sebastian,

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Speaker 4: But you got.

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Speaker 2: Home and the match was still going on. Yeah, Yeah,

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Speaker 2: is like an hour and a half. It was a

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Speaker 2: five hour match.

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Speaker 6: Five hours thirty five minutes is the longest match in

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Speaker 6: the US Open history between Karen Katchanov and Daniel Evans,

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Speaker 6: and just an incredible another record, another amazing, another amazing statistic.

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Speaker 3: About the twenty twenty four US Open.

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Speaker 2: Yes, I have to say when I walked in, I

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Speaker 2: was just blown away by the crowd even looking bigger

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Speaker 2: than last year. And I don't know if that's the case,

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Speaker 2: but it really like amazes me and over the years

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Speaker 2: of coming here, just how it continues to grow.

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Speaker 6: Yeah, and so we think we're going to get a

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Speaker 6: million fans through the three weeks in one day on

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Speaker 6: which i'd be a record, which would be a record

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Speaker 6: last year nine hundred and fifty seven thousand. This year,

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Speaker 6: we're on track to meet and exceed that record. The

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Speaker 6: weather's been great, yeah, and that definitely helps, definitely helps

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Speaker 6: people come out and the events that we added through

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Speaker 6: fan week and into the finals weekend. We've added a

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Speaker 6: Finals weekend festival and watch party in Louis Armstrong Stadium,

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Speaker 6: as well as a Finals weekend banfest after party Saturday

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Speaker 6: night after.

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Speaker 3: The War's final. You know, we'll sleep a little bit

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Speaker 3: on September ninth when we.

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Speaker 4: Start all over again next week. You know what I noticed.

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Speaker 4: I think last year when you rolled up to be

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Speaker 4: interviewed by us, you had like a big energy drink

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Speaker 4: with you. I don't see the energy drink right now,

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Speaker 4: So I think that's a good sign as to where

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Speaker 4: we are in the tournament. Like you're feeling good.

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Speaker 3: We're feeling great.

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Speaker 6: Yeah, next week we might need a little bit more

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Speaker 6: of the adrenaline and the energy drink, but we're feeling great.

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Speaker 3: We're just energized and axhilerated to see it all.

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Speaker 4: You mentioned you mentioned the weather, which I know yesterday

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Speaker 4: was a really, really hot day. Do you see a

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Speaker 4: decline in the number of fans who come out when

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Speaker 4: a day's so hot, I mean so hot that some

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Speaker 4: of the tennis players complain about it.

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Speaker 3: Yeah, I think that's a factor, you know.

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Speaker 6: I think there are certain people, especially those that have

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Speaker 6: had the privilege of being out to sessions before either

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Speaker 6: this year or other years, who may make a judgment

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Speaker 6: call of if they don't feel that they can handle

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Speaker 6: being a ninety plus degree heat.

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Speaker 3: I think that's a factor.

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Speaker 6: But we also did have we may have broken another

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Speaker 6: record yesterday in attendance.

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Speaker 3: It's even though it was so unbearable.

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Speaker 5: Yeah.

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Speaker 3: Hot, that's pretty amazing.

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Speaker 5: That is amazing.

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Speaker 2: I've to tell you, I have a friend here, a

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Speaker 2: young couple and they have their seven month old here too,

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Speaker 2: So wow, we're creating younger fan base and they're from

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Speaker 2: out of town and come in for this event. So

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Speaker 2: how do you think about year after year, like how

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Speaker 2: you like you continue some of the things that are working,

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Speaker 2: How you think about new ways right because you think

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Speaker 2: about revenue streams and how do you continue to build

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Speaker 2: out the business, so on the business side and keeping

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Speaker 2: a balance of keeping the sport pure that people don't

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Speaker 2: walk through and feel like it's too commercial.

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Speaker 6: That's why fan Week, and I'm sorry, I'm gonna keep

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Speaker 6: harping on it like that is such an important investment

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Speaker 6: for us. And it is free for all fans to

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Speaker 6: attend every one of those days, seven days to come in,

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Speaker 6: free to go into Arthur ash Stadium and watch the

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Speaker 6: top pros practicing. You can sit in the front row.

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Speaker 6: A few days ago, I walked in before the main

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Speaker 6: draw and saw Coco playing a practice match against Sabalanca,

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Speaker 6: which is like amazing after Arthur ash Stadium competitively, but

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Speaker 6: it's a practice match, And I'm looking at the fans

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Speaker 6: sitting around that court who got in for free, and

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Speaker 6: I'm thinking they're seeing a reprise of the women's final

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Speaker 6: last year for free.

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Speaker 3: Like, so that's really important. Yeah.

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Speaker 6: Now, business is of course very important too, and we

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Speaker 6: do know that fifty percent ish of people who attend

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Speaker 6: fan Week do ultimately buy tickets for the main draw,

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Speaker 6: So it is a pipeline to build future fans. Adding

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Speaker 6: tent pole events during that main draw, sorry, during that

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Speaker 6: fan Week that our ticketed events is helping grow the

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Speaker 6: business as well and provide more exposure for our players,

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Speaker 6: and so when we think about ticket sales and hospitality

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Speaker 6: and premium, which are primary revenue streams, that's sort of

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Speaker 6: how we begin to introduce some test new ticketed products.

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Speaker 6: On the premium and experience side, we've been adding new

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Speaker 6: products to meet some of that experiential demand. This year,

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Speaker 6: we have a finals weekend clinic. A very limited number

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Speaker 6: of clients will have the privilege of doing that, playing

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Speaker 6: on a court with Andrea Agassi and Andy Rotick before

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Speaker 6: the men's final, before the women's final, and sitting in

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Speaker 6: the court side premiere first few rows ticketed product, and

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Speaker 6: so hospitality and experiences are a big part of that too.

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Speaker 2: How limited, So that's a limited I think are trying

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Speaker 2: to twenty four.

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Speaker 3: Twenty four for each session.

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Speaker 4: Yeah, wow, that's amazing.

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Speaker 6: That's a pretty cool thing. And the women sold out first,

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Speaker 6: which we also love that. Who are they working within

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Speaker 6: the women same thing, same same but the draw being

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Speaker 6: the women's final.

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Speaker 3: Love that.

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Speaker 4: How are things looking on the sponsorship side in terms

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Speaker 4: of demand, what you're hearing from companies, the appetite for

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Speaker 4: them to come back and extend their agreements and partnerships

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Speaker 4: with you guys.

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Speaker 6: They've been great we've got, you know, a small ish

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Speaker 6: roster of partners, twenty four official sponsors, seven of which

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Speaker 6: have been with us for more than thirty years.

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Speaker 3: So there's a really strong renewal history and track record here.

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Speaker 6: And you see our partners on the grounds, activating everywhere

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Speaker 6: and entertaining their own clients, but also interacting with fans

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Speaker 6: and enhancing the experience for fans. The MX Fan Experience

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Speaker 6: was opened during fan Week as well, and.

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Speaker 3: We added two new partners this year.

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Speaker 6: We added Destination DC for Washington DC tourism and n

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Speaker 6: we added Moet as our official champagne partner, which has

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Speaker 6: come in handy.

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Speaker 4: Are you able to reliably raise prices each year for

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Speaker 4: those brand opportunities to keep the revenue growing at the

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Speaker 4: USTA From that side.

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Speaker 6: As long as we can demonstrate more value to the partner,

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Speaker 6: you know, the market, the value of the partnership can increase,

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Speaker 6: but it's all dependent on what value does the partner

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Speaker 6: wish to extract from the US Open and how can

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Speaker 6: we quantify and qualify, you know, the value that we've

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Speaker 6: been able to deliver to that.

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Speaker 3: Partner over their term.

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Speaker 2: What's fun about the sports world for you because you

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Speaker 2: spent what fourteen years of the NBA. I know we

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Speaker 2: always bring this up, but I think here you're doing,

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Speaker 2: you know, tennis.

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Speaker 3: There's so much going on.

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Speaker 2: We've had a week where the NFL said okay for

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Speaker 2: private equity.

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Speaker 3: To buy into you know firms.

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Speaker 2: We have been doing a lot of stuff a business

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Speaker 2: week about the explosion of gambling basically right when it

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Speaker 2: comes to all things sports. But what's interesting for you

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Speaker 2: to kind of watch this progression and where things are.

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Speaker 3: Sports is just fun sports and live entertainment.

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Speaker 6: To me, it's great predict everything and that's what makes

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Speaker 6: it really serendipitous and fun, but also sometimes stressful.

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Speaker 3: Sometimes the energydrink. Energy drink is required.

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Speaker 6: But we also we just announced yesterday with our partners ESPN. Yeah,

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Speaker 6: we've extended our relationship through twenty thirty seven.

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Speaker 3: It will be the longest deal in.

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Speaker 6: Tennis and they're a fantastic partner and we couldn't be

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Speaker 6: more thrilled about that.

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Speaker 3: So that's the big fun news from yesterday.

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Speaker 6: That did require a little help from our partner Moet

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Speaker 6: in celebrating that one, But that makes it really.

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Speaker 3: Full the bottles, like a couple of courts.

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Speaker 4: Maybe maybe, maybe when we speak to you next year,

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Speaker 4: what's going to be the biggest.

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Speaker 6: Change wow for the twenty twenty five US said, yeah.

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Speaker 4: We're already thinking about it.

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Speaker 6: Yeah, we're about you are you will be in a week?

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Speaker 6: We sure are, I mean a couple of weeks. It's interesting,

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Speaker 6: like day one begins and we already have a twenty

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Speaker 6: twenty five list beginning of Okay, we're going to do

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Speaker 6: this differently for next year. But you know, I'll say,

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Speaker 6: when we look at the Fan Week and the tent

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Speaker 6: pole events, we love them. We want to make them bigger, better,

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Speaker 6: you know, more exciting performances, and they really are a

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Speaker 6: testing ground for us. You can't predict the competition on

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Speaker 6: the court and the main draw, but you can plan

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Speaker 6: for and create new experiences for the fans that come out,

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Speaker 6: and new ways to deliver that to people digitally. And

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Speaker 6: when we think about digital you may not see it

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Speaker 6: here on the grounds. If you wanted to take a

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Speaker 6: walk over to the Advantage Arena, you could play Fortnite,

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Speaker 6: you could play US Open Night.

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Speaker 3: Five million people have played it so far.

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Speaker 4: Always good to see you, Officer of the USDA, Kirston

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Speaker 4: Correo joining us here at the US Open.

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Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us

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Speaker 1: Live weekday afternoons from two to five pm Eastern Listen

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Speaker 1: on Apple car Play and then brought auto with a

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Speaker 1: Bloomberg Business act or want us Live on YouTube.

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Speaker 3: Yes, you're at the US Open and just loving it.

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Speaker 3: Just perfect weather.

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Speaker 2: I gotta say there are a few certain truths when

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Speaker 2: it comes to the US Open. There's the honeydews. Okay, yeah,

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Speaker 2: check matches that stretch into the middle of the night.

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Speaker 3: I think you've run for a long time.

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Speaker 4: It players not so much, not so.

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Speaker 2: Much a definite New York five even though it's global.

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Speaker 5: But crowd.

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Speaker 4: We can hear them right now.

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Speaker 2: Right like we love it when like somebody scores a

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Speaker 2: great point or something.

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Speaker 3: If you just hear the crowd.

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Speaker 4: Sponsors logos they're plastered everywhere. They've been for years, like

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Speaker 4: you know, JP, Morgan, Chase, Emirates, Chubb, IBM, and of

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Speaker 4: course American.

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Speaker 2: Express, longtime partner of the US Open. MX has been

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Speaker 2: a brand sponsor of the US Open for more than

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Speaker 2: thirty years. We just talked with Kirsten about some of

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Speaker 2: the brands. A handful or so that have been with

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Speaker 2: them for a long time, and that includes American Express.

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Speaker 4: Yeahs Zuki can tell us exactly why and where they

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Speaker 4: see the value. She's vice president of Global Brand, Sponsorships

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Speaker 4: and Experiential Marketing at American Express. She joined us on

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Speaker 4: site here at the US Open.

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Speaker 8: Good hello to see you too, Thanks for having me

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Speaker 8: another year.

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Speaker 4: It's another partnership year between AMEX and the US Open.

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Speaker 8: I know this is our thirty first year, if you

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Speaker 8: can believe it.

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Speaker 4: Well, what keeps you coming back? I mean this is

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Speaker 4: a big ticket event. This is a big ticket item.

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Speaker 4: You have to see ROI from as you sit, Yes,

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Speaker 4: what keeps you coming back?

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Speaker 8: I mean ultimately, right, we are not just in the

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Speaker 8: card business. We are really in the business of membership.

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Speaker 8: And when we talk about membership, it's about all the

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Speaker 8: value that we bring to our card members and our

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Speaker 8: prospective card members. So that could be at things like

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Speaker 8: live sports and incredible moments like here, music, entertainment and

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Speaker 8: other how do we, you know, bring them that incredible

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Speaker 8: access and value. Right, And so when you think about

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Speaker 8: US Open, I mean, this is such an incredible event

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Speaker 8: right here in New York City, and like, yeah, would

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Speaker 8: not want to be anywhere else.

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Speaker 2: What does it event specifically like the US Open, Yeah,

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Speaker 2: do for your membership base. Yeah, it's a feedback you here,

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Speaker 2: what do you see?

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Speaker 3: It's number one.

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Speaker 8: It's an incredible event, right, And I'm sure Curisten talked

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Speaker 8: a little bit about even the growth of the fan base,

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Speaker 8: right and their ticket sales, et cetera. But even just

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Speaker 8: like even in tennis, fandom overall has grown actually year

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Speaker 8: after year for the last few years. For US, we

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Speaker 8: really think about this event. We were able to bring

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Speaker 8: something for everyone because there was so much to offer here.

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Speaker 8: We have a twenty thousand square foot fan experience space

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Speaker 8: and so it is all indoors, especially on really hot

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Speaker 8: summer and New year Gestic is like yesterday, but the

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Speaker 8: first floor is actually open to everyone, and so it's

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Speaker 8: a fan experience space. We've got everything from Glow Tennis.

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Speaker 8: We have this really incredible customizable tennis ball station.

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Speaker 3: This year.

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Speaker 8: We have you know, things like we actually have a

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Speaker 8: two K so like the actual video game two K

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Speaker 8: two K Top Spin. We have some gaming stations there.

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Speaker 8: We have this really fun trivia based more machines of

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Speaker 8: vending machines like size of a human. There's some trivia

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Speaker 8: in there, and depending on if you get the answers

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Speaker 8: right around, there's some great prizes as well. So we've

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Speaker 8: got that upstairs. We've got a card member lounge as well.

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Speaker 4: So when you're a few months from now, or even

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Speaker 4: just a couple of weeks from now, when you're looking

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Speaker 4: at the numbers, yes, to justify the marketing spent here,

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Speaker 4: what are the metrics that you're looking at to know

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Speaker 4: whether or not it was successful.

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Speaker 8: I mean we're looking at everything from certainly right, ticket

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Speaker 8: sales and the attendance here, but we're also looking at

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Speaker 8: for ourselves engagement reach things of that nature, right, like

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Speaker 8: what are the numbers of people that are coming by?

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Speaker 8: And you know, we'll look at that from the perspective

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Speaker 8: of like our existing car member base and other opportunities there.

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Speaker 8: And then certainly right there's going to be all the

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Speaker 8: qualitative feedback as well in terms of like how much

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Speaker 8: do they love it? Like we hear such great feedback

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Speaker 8: about the things that we offer.

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Speaker 4: Do you have do you want to see an increase

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Speaker 4: in number of people who are signing up for certain

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Speaker 4: cards after an event like this, like a Platinum cards.

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Speaker 3: For example, Yeah, that would be fantastic, Right.

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Speaker 4: Are you able to measure that? Like, are you able

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Speaker 4: to draw a line from this to that?

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Speaker 8: Yeah, there's there's different ways in which we're able to

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Speaker 8: draw and like be able to talk about like ROI

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Speaker 8: overall for the business certainly, Yeah, I think for us too,

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Speaker 8: Right when we think about you know, the like the

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Speaker 8: audience here, how this has also changed, right, it continues

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Speaker 8: to get younger. We think about gen Z and millennial

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Speaker 8: audiences for us, like when we think about even twenty

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Speaker 8: twenty three. Overall as a business, we've actually publicly talked

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Speaker 8: about the fact that like sixty percent of all new

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Speaker 8: cards acquired in consumer is actually in that like gen

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Speaker 8: Z millennial base, and seventy five percent of that is

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Speaker 8: actually in the platinum and gold cards. So you think

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Speaker 8: about premium card segments and the growth of that younger demographic, right,

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Speaker 8: fans here also getting younger as well, and so it's

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Speaker 8: a great, incredible opportunity for us to engage them at

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Speaker 8: all different levels.

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Speaker 2: Well, that's what I think we wonder, Like we always

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Speaker 2: think about, you know, you do something and then what's

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Speaker 2: the direct payoff? And maybe it is, And that's what

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Speaker 2: I guess I'm curious about and I think tims too,

445
00:19:26,680 --> 00:19:29,920
Speaker 2: is do you actually sign up people that come here

446
00:19:30,480 --> 00:19:32,919
Speaker 2: to this event or is it more about like brand

447
00:19:32,920 --> 00:19:36,520
Speaker 2: recognition and understanding what AMEX is about, even for like

448
00:19:36,560 --> 00:19:37,240
Speaker 2: a younger consumer.

449
00:19:37,240 --> 00:19:39,160
Speaker 3: I would say it's all of the above. Right.

450
00:19:39,560 --> 00:19:41,879
Speaker 8: So really, if you think about it from the angle

451
00:19:41,920 --> 00:19:45,359
Speaker 8: of brand consideration, a brand is really that, like, there

452
00:19:45,640 --> 00:19:47,160
Speaker 8: is so much that goes into that. It's a long

453
00:19:47,240 --> 00:19:50,480
Speaker 8: term relationship that you build with somebody, right, And so.

454
00:19:50,720 --> 00:19:52,679
Speaker 2: I mean I've had my AMEX to be you know,

455
00:19:52,720 --> 00:19:54,640
Speaker 2: full disclosure since college, and.

456
00:19:54,600 --> 00:19:55,360
Speaker 3: So that's a long time.

457
00:19:55,359 --> 00:19:57,000
Speaker 8: Well we thank you for that, We thank you for that.

458
00:19:58,000 --> 00:19:59,720
Speaker 8: But but yeah, I mean I think it is that

459
00:19:59,760 --> 00:20:02,200
Speaker 8: like every single touch point, it's it's like a relationship

460
00:20:02,240 --> 00:20:04,879
Speaker 8: with anybody else. Right, We're obviously right this from a

461
00:20:04,920 --> 00:20:06,880
Speaker 8: brand perspective, right, but just the same way you would

462
00:20:06,880 --> 00:20:09,040
Speaker 8: build a relationship with anybody else. It takes many many

463
00:20:09,080 --> 00:20:10,720
Speaker 8: touch points to get to that, right, You build a

464
00:20:10,760 --> 00:20:13,640
Speaker 8: trust the relationship other. Yeah, that's what we're really here

465
00:20:13,680 --> 00:20:13,960
Speaker 8: to do.

466
00:20:14,400 --> 00:20:17,439
Speaker 4: You know. It's funny. I actually surprised to see that

467
00:20:17,480 --> 00:20:20,360
Speaker 4: there is one of your biggest competitors here as one

468
00:20:20,359 --> 00:20:22,600
Speaker 4: of the sponsors, as well, you don't oftentimes see that

469
00:20:22,680 --> 00:20:24,320
Speaker 4: when with different events that make.

470
00:20:24,240 --> 00:20:27,159
Speaker 3: You angry, we just do about is.

471
00:20:27,160 --> 00:20:28,000
Speaker 4: It going to be my question?

472
00:20:28,520 --> 00:20:32,159
Speaker 3: I would be a little angry she is.

473
00:20:32,119 --> 00:20:34,960
Speaker 4: Going to skip twenty twenty five when she comes back.

474
00:20:36,119 --> 00:20:39,080
Speaker 4: But how do you stand out an environment where you know,

475
00:20:39,200 --> 00:20:42,320
Speaker 4: Chase does have an airport lounge, Chase does have a

476
00:20:42,400 --> 00:20:46,960
Speaker 4: lounge here. How do you justify to a member paying

477
00:20:46,960 --> 00:20:49,560
Speaker 4: seven hundred dollars a year where when there are competitors

478
00:20:49,560 --> 00:20:51,840
Speaker 4: out there who offer similar experiences.

479
00:20:52,160 --> 00:20:54,560
Speaker 8: I think for us, we stay focused on our card

480
00:20:54,600 --> 00:20:57,639
Speaker 8: member base and that future card member base. Right, So

481
00:20:57,680 --> 00:21:00,439
Speaker 8: we're constantly looking at right, what is the data, what

482
00:21:00,480 --> 00:21:02,359
Speaker 8: is the feedback? What are all the different places that

483
00:21:02,359 --> 00:21:03,960
Speaker 8: people are going to show up for us?

484
00:21:04,040 --> 00:21:04,280
Speaker 5: Right?

485
00:21:04,440 --> 00:21:07,080
Speaker 8: We've been here for thirty one years at the US Open,

486
00:21:07,320 --> 00:21:10,480
Speaker 8: but this is one of an entire portfolio by the

487
00:21:10,480 --> 00:21:12,840
Speaker 8: way of the places that we are, whether that be

488
00:21:12,880 --> 00:21:17,240
Speaker 8: in like lifestyle, entertainment, music. Last year we kicked off

489
00:21:17,280 --> 00:21:19,919
Speaker 8: our and announced our partnership with Formula one in the

490
00:21:19,960 --> 00:21:22,919
Speaker 8: America's region, right, and so right we are staying ahead

491
00:21:22,920 --> 00:21:25,280
Speaker 8: of in terms of like all the passion points in

492
00:21:25,320 --> 00:21:28,119
Speaker 8: the places where the people that are our car members

493
00:21:28,280 --> 00:21:30,360
Speaker 8: want to be and so that is really like if

494
00:21:30,359 --> 00:21:33,040
Speaker 8: you think about it from a holistic perspective, right, it

495
00:21:33,080 --> 00:21:34,320
Speaker 8: is about the holistic offering.

496
00:21:34,480 --> 00:21:36,159
Speaker 2: Liz, talk to us a little bit about the pathic

497
00:21:36,200 --> 00:21:39,720
Speaker 2: I think of you know, pre pandemic, pandemic hits, right,

498
00:21:39,840 --> 00:21:42,080
Speaker 2: nobody's traveling, and you guys did a lot of things

499
00:21:42,080 --> 00:21:44,800
Speaker 2: to adapt to people being at home. And then we're,

500
00:21:44,960 --> 00:21:47,080
Speaker 2: you know, slowly coming out of the pandemic. And now

501
00:21:47,080 --> 00:21:49,040
Speaker 2: we're you know, we've seen a ton of traveling. Like

502
00:21:49,400 --> 00:21:52,040
Speaker 2: where are we post pandemic? What you guys are seeing

503
00:21:52,040 --> 00:21:52,840
Speaker 2: from consumers?

504
00:21:52,960 --> 00:21:56,640
Speaker 8: Yeah, Actually, we had a twenty twenty four Business as

505
00:21:56,680 --> 00:21:59,600
Speaker 8: a Travel Trends report that we released and actually, when

506
00:21:59,600 --> 00:22:02,080
Speaker 8: we look at that, almost seventy percent of people are

507
00:22:02,080 --> 00:22:03,879
Speaker 8: going to be traveling this year and it's related to

508
00:22:03,920 --> 00:22:05,840
Speaker 8: some type of big sporting event or event or other.

509
00:22:06,560 --> 00:22:09,040
Speaker 8: So the trends there are like looking up and up

510
00:22:09,040 --> 00:22:12,800
Speaker 8: as we think about that intersection of travel, fandom, et cetera.

511
00:22:13,000 --> 00:22:15,000
Speaker 2: The Olympics, Like, did you see it lack connected to

512
00:22:15,040 --> 00:22:15,440
Speaker 2: that as well?

513
00:22:15,480 --> 00:22:18,760
Speaker 8: Olympics, right, like any big sporting moment, Like last year

514
00:22:18,880 --> 00:22:20,720
Speaker 8: was Las Vegas Grand Prix. It was the first ever

515
00:22:20,760 --> 00:22:22,479
Speaker 8: Formula One race out in Las Vegas.

516
00:22:22,560 --> 00:22:25,040
Speaker 3: Right, yeah, I think so too one of our colleagues.

517
00:22:25,080 --> 00:22:25,680
Speaker 3: Oh fantastic.

518
00:22:25,800 --> 00:22:28,399
Speaker 8: Yeah, So, like you think about those types of moments

519
00:22:28,400 --> 00:22:29,920
Speaker 8: and how do you bring that to life, Like in

520
00:22:30,040 --> 00:22:32,480
Speaker 8: American Express, we're at the intersection of all event travel,

521
00:22:32,800 --> 00:22:34,160
Speaker 8: big events, other so.

522
00:22:34,720 --> 00:22:37,760
Speaker 4: When you think about growth in the future and attracting

523
00:22:37,840 --> 00:22:41,240
Speaker 4: those card members who don't exist yet, who are not

524
00:22:41,280 --> 00:22:43,639
Speaker 4: who have not signed up, how do you think about

525
00:22:44,280 --> 00:22:49,040
Speaker 4: adding different features and experiences to keep the value proposition fresh?

526
00:22:49,160 --> 00:22:52,199
Speaker 4: Like what's on the what's on the the whiteboard with

527
00:22:52,200 --> 00:22:53,480
Speaker 4: brainstormed ideas right now?

528
00:22:53,600 --> 00:22:55,679
Speaker 8: Yeah, I think it is. It is about that, right,

529
00:22:55,680 --> 00:22:58,080
Speaker 8: it is about where are the trends going? And like

530
00:22:58,080 --> 00:22:59,880
Speaker 8: how do you anticipate that as much as you can?

531
00:23:00,480 --> 00:23:03,879
Speaker 8: This year, you know, it's been really exciting. Yeah, in

532
00:23:04,080 --> 00:23:06,280
Speaker 8: like the area of like even music, Like we've actually

533
00:23:06,320 --> 00:23:08,640
Speaker 8: done quite a bit with like the likes of Olivia Rodrigo,

534
00:23:08,720 --> 00:23:11,760
Speaker 8: Billy Eilish, Dua Lipa, and so you know, we've been

535
00:23:11,800 --> 00:23:14,399
Speaker 8: able to do some really incredible moments and experiences and

536
00:23:14,520 --> 00:23:16,920
Speaker 8: access for our card members, not just here in the US,

537
00:23:16,960 --> 00:23:18,120
Speaker 8: but also globally as well.

538
00:23:18,640 --> 00:23:20,720
Speaker 3: When you look at the consumer we've got to ask you.

539
00:23:20,720 --> 00:23:23,159
Speaker 2: We'd be idiots if we didn't, and we are bloomberg like,

540
00:23:23,200 --> 00:23:25,520
Speaker 2: do you feel like and I know American Express every

541
00:23:25,560 --> 00:23:27,320
Speaker 2: time we talk about the company, we say it's a

542
00:23:27,320 --> 00:23:30,840
Speaker 2: certain sector of consumers. But like I said, I got

543
00:23:30,880 --> 00:23:32,719
Speaker 2: mine in college. I was making no money, but that's

544
00:23:32,760 --> 00:23:37,439
Speaker 2: where I started. Is the consumer doing okay? Or do

545
00:23:37,480 --> 00:23:40,160
Speaker 2: you see any concerns that? I mean, we look around

546
00:23:40,160 --> 00:23:42,000
Speaker 2: here and we're like, consumers are spending big time?

547
00:23:42,000 --> 00:23:42,560
Speaker 3: Are here?

548
00:23:42,720 --> 00:23:44,840
Speaker 8: Yeah? I mean, listen, I think at some of the

549
00:23:44,880 --> 00:23:47,440
Speaker 8: biggest moments that are out there in sports and entertainment,

550
00:23:47,800 --> 00:23:50,080
Speaker 8: people are there. I mean, that's what we're seeing. That's

551
00:23:50,080 --> 00:23:52,119
Speaker 8: what we want to provide for our card members. And

552
00:23:52,160 --> 00:23:54,800
Speaker 8: so I think it's an exciting twenty twenty four has

553
00:23:54,800 --> 00:23:57,000
Speaker 8: been a very exciting year for all sorts of events

554
00:23:57,040 --> 00:23:57,639
Speaker 8: around the world.

555
00:23:58,040 --> 00:23:59,119
Speaker 4: Are you here all two weeks?

556
00:23:59,520 --> 00:24:01,719
Speaker 3: I'm here. Yeah, I'm here for a good number of days.

557
00:24:01,760 --> 00:24:05,880
Speaker 8: Yes, what a bad place to be, right, I might

558
00:24:05,920 --> 00:24:07,199
Speaker 8: take out the line or something.

559
00:24:08,000 --> 00:24:10,160
Speaker 2: Thank you so much. Great snapshot of what you guys

560
00:24:10,160 --> 00:24:12,720
Speaker 2: are doing. And like we said, you have been American

561
00:24:12,720 --> 00:24:15,720
Speaker 2: Express affiliated with it for thirty years with the US Open, which.

562
00:24:15,600 --> 00:24:17,800
Speaker 3: Is a really really long time. She Suzuki.

563
00:24:17,800 --> 00:24:21,280
Speaker 2: She's vice president of Global Brand, Sponsorships and Experiential Marketing

564
00:24:21,920 --> 00:24:22,800
Speaker 2: at American Express.

565
00:24:22,880 --> 00:24:24,840
Speaker 3: Joining us on site from the US Open.

566
00:24:25,960 --> 00:24:29,840
Speaker 1: You're listening to the Bloomberg Business Week podcast. Listen live

567
00:24:29,920 --> 00:24:32,840
Speaker 1: each weekday starting at two pm Eastern on Apple car

568
00:24:32,840 --> 00:24:35,800
Speaker 1: Play and Android Auto with the Bloomberg Business App. You

569
00:24:35,840 --> 00:24:39,119
Speaker 1: can also listen live on Amazon Alexa from our flagship

570
00:24:39,160 --> 00:24:43,320
Speaker 1: New York station Just Say Alexa playing Bloomberg eleven thirty.

571
00:24:43,880 --> 00:24:45,879
Speaker 2: Bloomberg Business If you're alive at the US Open and

572
00:24:45,960 --> 00:24:49,440
Speaker 2: flashing meadows Queen. We often say when broadcasting from the

573
00:24:49,520 --> 00:24:52,480
Speaker 2: US Open that, Yep, no doubt, it's about the tennis.

574
00:24:52,600 --> 00:24:55,000
Speaker 2: It's what you see on the courts, the players, the matches.

575
00:24:55,480 --> 00:24:58,240
Speaker 2: But to be fair, coming to the US Open is

576
00:24:58,320 --> 00:24:59,359
Speaker 2: quite an experience.

577
00:25:00,200 --> 00:25:03,600
Speaker 4: It's the food, the merge, the people watching, the lounges

578
00:25:04,240 --> 00:25:08,199
Speaker 4: and yes, Carol, your prized honey deuces.

579
00:25:08,320 --> 00:25:09,640
Speaker 3: I still have my cup from last year?

580
00:25:09,720 --> 00:25:10,600
Speaker 4: Did you bring it back this year?

581
00:25:10,680 --> 00:25:10,840
Speaker 3: I did?

582
00:25:11,000 --> 00:25:14,400
Speaker 4: You're gonna get another one still tomorrow, We'll see, we'll see.

583
00:25:15,040 --> 00:25:17,440
Speaker 2: As for the food, the year, the team this year,

584
00:25:17,520 --> 00:25:19,439
Speaker 2: the team that's behind it all. They recruited more than

585
00:25:19,480 --> 00:25:21,960
Speaker 2: twenty New York City restaurants to serve their signature food

586
00:25:21,960 --> 00:25:24,280
Speaker 2: and drink items at various dining venues, and you can

587
00:25:24,320 --> 00:25:27,000
Speaker 2: see it as you walk around the center, the Tennis

588
00:25:27,000 --> 00:25:28,720
Speaker 2: Center throughout.

589
00:25:28,400 --> 00:25:30,720
Speaker 3: The two weeks of the tournament. So to talk about

590
00:25:30,760 --> 00:25:32,280
Speaker 3: it all, as Chris Studley, he's back with us.

591
00:25:32,280 --> 00:25:35,800
Speaker 2: He's managing director of Event Services at the USTA right

592
00:25:35,840 --> 00:25:37,320
Speaker 2: on site here at the US Open.

593
00:25:37,720 --> 00:25:39,160
Speaker 3: Nice to be back with you. How are you?

594
00:25:39,320 --> 00:25:40,840
Speaker 5: Thanks for having me back. I'm great.

595
00:25:41,160 --> 00:25:43,879
Speaker 9: We've had a great year. Of course, you kicked off

596
00:25:43,920 --> 00:25:45,840
Speaker 9: with Fan Week just a little over a week ago.

597
00:25:46,240 --> 00:25:48,720
Speaker 9: Welcome more folks than ever before to our site during

598
00:25:48,720 --> 00:25:49,240
Speaker 9: that period.

599
00:25:49,800 --> 00:25:50,879
Speaker 5: People are finding out about it.

600
00:25:50,960 --> 00:25:53,800
Speaker 9: Right, we don't have tickets that week, and people are

601
00:25:53,800 --> 00:25:55,600
Speaker 9: flooding out here to check out the action, get close

602
00:25:55,600 --> 00:25:56,040
Speaker 9: to the players.

603
00:25:56,160 --> 00:25:58,240
Speaker 4: Is all food and beverage that's available this week and

604
00:25:58,280 --> 00:25:59,600
Speaker 4: next week available during fan Week.

605
00:25:59,600 --> 00:26:00,520
Speaker 5: It's a great question.

606
00:26:00,640 --> 00:26:03,639
Speaker 9: So years prior, we've kind of opened up slowly, but

607
00:26:03,720 --> 00:26:05,480
Speaker 9: we knew that we were promoting this and trying to

608
00:26:05,480 --> 00:26:07,119
Speaker 9: get more fans interested in it, so we opened the

609
00:26:07,320 --> 00:26:09,560
Speaker 9: entire food village. We opened a few restaurants as well,

610
00:26:09,600 --> 00:26:11,520
Speaker 9: that wouldn't have been opened in the past, and people

611
00:26:11,560 --> 00:26:14,200
Speaker 9: really responded, well, I mean the fans that came out

612
00:26:14,200 --> 00:26:16,520
Speaker 9: over two hundred and sixteen thousand of them. So we

613
00:26:16,560 --> 00:26:19,520
Speaker 9: set all kinds of records and people realized what a deal.

614
00:26:19,560 --> 00:26:21,000
Speaker 9: I can come on the site for free. I can

615
00:26:21,000 --> 00:26:23,800
Speaker 9: get up close with the stars of today. It's incredible.

616
00:26:23,920 --> 00:26:25,040
Speaker 3: It is pretty incredible. Right.

617
00:26:25,119 --> 00:26:29,160
Speaker 2: We were talking with Kirsten Koreo about it earlier, having

618
00:26:29,200 --> 00:26:31,560
Speaker 2: said that, how do you think about the experiences that

619
00:26:31,560 --> 00:26:34,000
Speaker 2: you want in terms of hospitality, because we certainly see

620
00:26:34,080 --> 00:26:36,400
Speaker 2: certain things that come back every year, but then there's

621
00:26:36,400 --> 00:26:37,000
Speaker 2: some new stuff.

622
00:26:37,040 --> 00:26:38,919
Speaker 3: So tell us about kind of the menu that you

623
00:26:38,960 --> 00:26:39,480
Speaker 3: think about.

624
00:26:39,560 --> 00:26:42,520
Speaker 9: Absolutely, So we look at all the data, right, we

625
00:26:42,560 --> 00:26:43,840
Speaker 9: have spreadsheet upon spreadsheets.

626
00:26:43,840 --> 00:26:45,160
Speaker 5: I don't want to bore you with those details.

627
00:26:45,320 --> 00:26:48,960
Speaker 9: It's more fun to talk about the drinks.

628
00:26:49,160 --> 00:26:51,520
Speaker 5: Sure, So that's so cool.

629
00:26:51,760 --> 00:26:53,159
Speaker 4: Readsheet is our language.

630
00:26:53,400 --> 00:26:55,320
Speaker 9: So we can look back and look at sales over

631
00:26:55,359 --> 00:26:57,520
Speaker 9: prior years. I mean I'm talking dating back to over

632
00:26:57,560 --> 00:27:00,320
Speaker 9: ten years ago, and we can see the trends in everything. Right,

633
00:27:00,400 --> 00:27:02,960
Speaker 9: what's the hot item? What needs to stay if you will?

634
00:27:03,560 --> 00:27:05,440
Speaker 9: What what are we looking at that may not move,

635
00:27:05,520 --> 00:27:06,440
Speaker 9: what's not moving the needle.

636
00:27:06,480 --> 00:27:08,439
Speaker 5: What are our fans asking for? Maybe they're not buying.

637
00:27:09,240 --> 00:27:11,520
Speaker 9: So we we go in every year with a fresh

638
00:27:11,560 --> 00:27:14,320
Speaker 9: perspective of Hey, in this stand, there's three or four items,

639
00:27:14,480 --> 00:27:15,280
Speaker 9: this one's on the bottom.

640
00:27:15,359 --> 00:27:17,159
Speaker 5: Let's refresh that. Let's do something new with it and

641
00:27:17,160 --> 00:27:18,040
Speaker 5: see if it responds.

642
00:27:18,200 --> 00:27:20,639
Speaker 9: So it gives us that opportunity and just like that,

643
00:27:20,720 --> 00:27:23,720
Speaker 9: over the years, when we've evaluated like this, we've gotten feedback, Hey,

644
00:27:23,760 --> 00:27:25,680
Speaker 9: try this, try that, and it actually shapes the food

645
00:27:25,720 --> 00:27:29,480
Speaker 9: village a little bit every year. We piloted last year,

646
00:27:29,480 --> 00:27:31,639
Speaker 9: in the year before we were piloting a mobile ordering system,

647
00:27:31,880 --> 00:27:34,359
Speaker 9: we realized that our event, our fans weren't really interested

648
00:27:34,359 --> 00:27:36,199
Speaker 9: in it. What they wanted to do was take that

649
00:27:36,240 --> 00:27:37,720
Speaker 9: walk down the food village you mentioned yourself.

650
00:27:37,760 --> 00:27:38,200
Speaker 5: I don't know.

651
00:27:38,400 --> 00:27:39,919
Speaker 2: I kind of love doing it and like looking at

652
00:27:40,000 --> 00:27:41,879
Speaker 2: but there are sometimes lines and I'm like, I can't

653
00:27:41,880 --> 00:27:42,400
Speaker 2: I can't wait.

654
00:27:43,760 --> 00:27:45,040
Speaker 4: Job is to make sure they're live.

655
00:27:45,160 --> 00:27:46,160
Speaker 3: How do you do that?

656
00:27:46,480 --> 00:27:48,840
Speaker 9: Well, you know, we look at everything from the technology

657
00:27:48,880 --> 00:27:51,239
Speaker 9: that we use to process the transactions down to how

658
00:27:51,240 --> 00:27:53,560
Speaker 9: the honeyduce is made in a tap system. Now, so,

659
00:27:53,600 --> 00:27:55,760
Speaker 9: by the way, you get the perfect ratio of vodkaa

660
00:27:55,840 --> 00:27:57,399
Speaker 9: lemonade to raspberry look or.

661
00:27:59,080 --> 00:28:02,800
Speaker 4: Autocato. Yeah, the melon they have a Chipotle to make

662
00:28:02,840 --> 00:28:03,520
Speaker 4: them all in.

663
00:28:04,040 --> 00:28:05,000
Speaker 3: I like, is there something for.

664
00:28:05,000 --> 00:28:07,760
Speaker 9: The un there is, there's a type system. Yeah, well

665
00:28:07,760 --> 00:28:10,480
Speaker 9: the Mellon ball is so interesting story about those. You know,

666
00:28:10,520 --> 00:28:13,280
Speaker 9: we're projected hopefully do a half a million honey duces

667
00:28:13,320 --> 00:28:16,040
Speaker 9: this year. I think three mellion balls per honeyduce. You're

668
00:28:16,080 --> 00:28:18,840
Speaker 9: talking one point five million Mellon balls. And we have

669
00:28:18,880 --> 00:28:21,360
Speaker 9: a team that puts them on skewers. So they come

670
00:28:21,400 --> 00:28:22,840
Speaker 9: in bald already, but there is a team.

671
00:28:22,840 --> 00:28:25,560
Speaker 5: But they come balld. Okay, they come bald.

672
00:28:25,560 --> 00:28:27,280
Speaker 2: We have Yes, I'm just going to say it could

673
00:28:27,280 --> 00:28:28,000
Speaker 2: be like Chris is handing.

674
00:28:29,119 --> 00:28:30,760
Speaker 3: You're here to get the assignments. You're on the Mellon

675
00:28:30,800 --> 00:28:31,160
Speaker 3: ball team.

676
00:28:31,200 --> 00:28:32,920
Speaker 2: I'm really sorry, but you're going to be like making

677
00:28:32,960 --> 00:28:34,040
Speaker 2: Mellon balls in the back of it.

678
00:28:34,240 --> 00:28:37,800
Speaker 5: The unsung heroes for sure.

679
00:28:37,800 --> 00:28:41,280
Speaker 2: You're going, Yeah, how much revenue does the honey juice

680
00:28:41,320 --> 00:28:41,720
Speaker 2: bring in?

681
00:28:42,760 --> 00:28:44,760
Speaker 3: What can you tell us? You know, he saw some numbers,

682
00:28:44,760 --> 00:28:45,400
Speaker 3: so I'm curious.

683
00:28:45,440 --> 00:28:46,200
Speaker 5: What are you say?

684
00:28:48,520 --> 00:28:49,840
Speaker 3: Nine million dollars in sales?

685
00:28:50,040 --> 00:28:53,800
Speaker 9: That's probably fair and were last year we sold about

686
00:28:53,800 --> 00:28:55,560
Speaker 9: four hundred and sixty two thousand, all right, and how

687
00:28:55,600 --> 00:28:56,200
Speaker 9: much are they eat?

688
00:28:56,680 --> 00:28:58,400
Speaker 5: Twenty two last year, twenty three this year?

689
00:28:58,480 --> 00:28:59,480
Speaker 4: Okay, he held you sold?

690
00:28:59,480 --> 00:29:01,920
Speaker 5: How many last About four hundred and sixty two thousand?

691
00:29:02,360 --> 00:29:05,040
Speaker 4: Okay, So yeah, so that's about ten point six million.

692
00:29:05,560 --> 00:29:05,960
Speaker 3: Okay.

693
00:29:06,160 --> 00:29:09,120
Speaker 2: So our listener Sedron, who's very into tennis, is going

694
00:29:09,160 --> 00:29:11,920
Speaker 2: to be here tomorrow. Combine the men's women's tournament win

695
00:29:12,040 --> 00:29:14,440
Speaker 2: winners get seven point two million in winnings, so you're

696
00:29:14,440 --> 00:29:14,960
Speaker 2: making more.

697
00:29:15,480 --> 00:29:18,320
Speaker 9: Well, we have to pay the whole pool of prize money.

698
00:29:17,560 --> 00:29:20,440
Speaker 5: Who watch more. There's a lot of other players that

699
00:29:20,440 --> 00:29:20,920
Speaker 5: aren't the one.

700
00:29:20,960 --> 00:29:21,160
Speaker 2: What if?

701
00:29:21,200 --> 00:29:23,160
Speaker 4: What if the winning prize money was based on just

702
00:29:23,200 --> 00:29:24,200
Speaker 4: honeyduce revenue?

703
00:29:24,240 --> 00:29:27,240
Speaker 2: So you take a percentage equal prize player says, I'll

704
00:29:27,240 --> 00:29:28,440
Speaker 2: have a percentage of the honey duce.

705
00:29:28,760 --> 00:29:30,640
Speaker 4: The players are like, go buy your honeyduces.

706
00:29:31,400 --> 00:29:33,280
Speaker 5: Listen. It all helps the fan experience, right.

707
00:29:34,360 --> 00:29:36,040
Speaker 2: Everybody in our newsroom was coming up, like you go

708
00:29:36,120 --> 00:29:37,440
Speaker 2: to the US OP and I wish you were there.

709
00:29:37,440 --> 00:29:39,600
Speaker 2: Our Scarlet Food said to me, wait a minute, so

710
00:29:39,880 --> 00:29:43,280
Speaker 2: where did the honey deuce recipe come from?

711
00:29:43,680 --> 00:29:45,720
Speaker 5: Great question? I've been asked that a couple of times recently,

712
00:29:46,240 --> 00:29:47,080
Speaker 5: you know, because we keep.

713
00:29:46,920 --> 00:29:49,120
Speaker 3: Talking about how she always has good questions.

714
00:29:49,920 --> 00:29:51,560
Speaker 9: Well, funny enough, this is the first year we actually

715
00:29:51,560 --> 00:29:53,800
Speaker 9: did Honey due merchandise. So you can get a Honey

716
00:29:53,880 --> 00:29:56,760
Speaker 9: Ducee hat or T shirt with the recipe on the back.

717
00:29:57,440 --> 00:29:59,840
Speaker 9: And they sold like wildfire, according to our merchandise.

718
00:30:00,280 --> 00:30:02,000
Speaker 5: Yeah, yeah, it was really popular.

719
00:30:02,160 --> 00:30:03,080
Speaker 3: So where did it come up from?

720
00:30:03,200 --> 00:30:03,400
Speaker 4: Where?

721
00:30:03,520 --> 00:30:04,320
Speaker 5: How did it come about?

722
00:30:04,440 --> 00:30:06,320
Speaker 9: It came up from a grey Goose mixologist and a

723
00:30:06,320 --> 00:30:09,520
Speaker 9: few USCA folks in a kitchen here on site over

724
00:30:09,560 --> 00:30:10,400
Speaker 9: fifteen years.

725
00:30:10,240 --> 00:30:13,880
Speaker 5: Ago, just before I joined the organization. I think I

726
00:30:13,920 --> 00:30:14,680
Speaker 5: can't take any.

727
00:30:14,480 --> 00:30:16,280
Speaker 3: Credit for it, but it must have been a fun kitchen,

728
00:30:16,680 --> 00:30:16,840
Speaker 3: you know.

729
00:30:17,120 --> 00:30:18,680
Speaker 5: Absolutely, they were experiment again.

730
00:30:18,760 --> 00:30:20,720
Speaker 9: They sat there and tried every different cocktail and what's

731
00:30:20,720 --> 00:30:21,960
Speaker 9: the world that resonated the most?

732
00:30:22,000 --> 00:30:24,280
Speaker 5: Right? What was the flavor of summer so to speak.

733
00:30:24,320 --> 00:30:26,560
Speaker 9: So then they even came up with the three melon

734
00:30:26,600 --> 00:30:28,280
Speaker 9: balls to represent the tennis balls and a can.

735
00:30:28,560 --> 00:30:30,120
Speaker 5: So not everybody realized that, but yeah, was.

736
00:30:30,120 --> 00:30:32,200
Speaker 4: That lightning in a bottle? I mean, you know the

737
00:30:32,200 --> 00:30:33,840
Speaker 4: way that I talk about the us open to people,

738
00:30:33,880 --> 00:30:35,000
Speaker 4: they always say, what does that drink?

739
00:30:35,040 --> 00:30:35,600
Speaker 5: What does that drink?

740
00:30:35,600 --> 00:30:36,080
Speaker 4: What does that drink.

741
00:30:36,160 --> 00:30:36,800
Speaker 3: Yeah, everybody to do.

742
00:30:36,960 --> 00:30:38,120
Speaker 4: Yeah, everybody knows about it.

743
00:30:38,120 --> 00:30:40,040
Speaker 9: It's grown over time, right, it's just taken on its

744
00:30:40,080 --> 00:30:42,360
Speaker 9: own persona. Thanks social media for that. Right as that

745
00:30:42,400 --> 00:30:44,680
Speaker 9: took off, the Ducee takes off. It's cool to come

746
00:30:44,720 --> 00:30:45,920
Speaker 9: take your picture with the honey Due.

747
00:30:46,200 --> 00:30:48,080
Speaker 2: So when are you going to do a mocktail again?

748
00:30:48,120 --> 00:30:51,000
Speaker 2: Elizabeth asks us, who says, I'm going to come, But

749
00:30:51,000 --> 00:30:52,480
Speaker 2: I don't know that I want to drink alcohol, but

750
00:30:52,480 --> 00:30:54,080
Speaker 2: I'd love to have a Honeyducee mocktail.

751
00:30:54,720 --> 00:30:56,160
Speaker 9: You know, we'd have to talk to our partners at

752
00:30:56,160 --> 00:30:57,760
Speaker 9: greg Goose and kind of figure something out if we

753
00:30:57,760 --> 00:30:58,239
Speaker 9: can do that.

754
00:30:58,320 --> 00:31:00,000
Speaker 5: But we do all for some.

755
00:31:01,800 --> 00:31:05,200
Speaker 4: Everything without the minus the vodka, minus the key.

756
00:31:05,440 --> 00:31:10,880
Speaker 9: You can have lemonade, lemonade and some melon balls. Yes,

757
00:31:11,480 --> 00:31:14,000
Speaker 9: with melon balls. We do offer a few mots on

758
00:31:14,040 --> 00:31:17,320
Speaker 9: the site. It is a category that's growing, totally.

759
00:31:17,080 --> 00:31:21,560
Speaker 2: Growing, So many guests come on and it's non alcoholic beer, beers,

760
00:31:21,600 --> 00:31:22,240
Speaker 2: wines like.

761
00:31:22,400 --> 00:31:22,880
Speaker 4: You name it.

762
00:31:22,920 --> 00:31:24,880
Speaker 9: Well, we do serve the Heineken zero point zero, which

763
00:31:24,920 --> 00:31:26,760
Speaker 9: is quite delicious for a non alcoholic beer.

764
00:31:26,840 --> 00:31:28,880
Speaker 5: So there are a good partner of ours as well.

765
00:31:28,920 --> 00:31:30,600
Speaker 4: On the food side of it, the prep time. That

766
00:31:30,640 --> 00:31:34,400
Speaker 4: goes into actually making sure that there are minimal lines

767
00:31:34,400 --> 00:31:37,120
Speaker 4: even though there are still lines. How do you have

768
00:31:37,160 --> 00:31:39,320
Speaker 4: the balance of making sure that you know that the

769
00:31:39,400 --> 00:31:42,840
Speaker 4: chefs are prepping ahead of time, but also making stuff

770
00:31:42,840 --> 00:31:45,360
Speaker 4: to order. You're not going to get something soggy.

771
00:31:45,120 --> 00:31:47,400
Speaker 9: Yes, So their goal is to not make you know

772
00:31:47,400 --> 00:31:50,640
Speaker 9: the finished product days in advance for frending stretch. You know,

773
00:31:50,880 --> 00:31:52,520
Speaker 9: they're professionals what they do. I mean even the best

774
00:31:52,520 --> 00:31:54,640
Speaker 9: restaurants in New York City do a lot of prep uh,

775
00:31:54,680 --> 00:31:56,120
Speaker 9: and they know where they can kind of cook the

776
00:31:56,160 --> 00:31:58,520
Speaker 9: item too until they have to serve and then obviously

777
00:31:58,560 --> 00:32:00,600
Speaker 9: finish it. So they're the pro at that. I don't

778
00:32:00,600 --> 00:32:03,040
Speaker 9: claim to be. I'm not a chef at all, nor

779
00:32:03,040 --> 00:32:04,880
Speaker 9: do I work in a kitchen. But you're operations guy,

780
00:32:05,080 --> 00:32:07,800
Speaker 9: operations guy through and through, so you know they know

781
00:32:07,840 --> 00:32:08,240
Speaker 9: what's best.

782
00:32:08,240 --> 00:32:09,600
Speaker 5: I trust them. They know what they're doing.

783
00:32:09,600 --> 00:32:11,600
Speaker 9: We work with Levy Restaurants, which is a division of

784
00:32:11,600 --> 00:32:14,160
Speaker 9: Compass Group. They're around the world, they know what they're doing,

785
00:32:14,200 --> 00:32:15,480
Speaker 9: their process.

786
00:32:15,920 --> 00:32:17,479
Speaker 2: So do you have kitchens like all set up all

787
00:32:17,520 --> 00:32:20,520
Speaker 2: over like all over and stuff's coming in off site?

788
00:32:20,600 --> 00:32:20,760
Speaker 5: Yeah.

789
00:32:20,800 --> 00:32:23,840
Speaker 9: We have about seven commissaries on site I'm talking massive kitchens.

790
00:32:23,840 --> 00:32:25,800
Speaker 9: We even have one underneath the grandstand. The public would

791
00:32:25,800 --> 00:32:27,800
Speaker 9: have no idea where it is. Kitchens in the back

792
00:32:27,840 --> 00:32:31,400
Speaker 9: of every restaurant, so fresh as food possible. It's built

793
00:32:31,400 --> 00:32:32,600
Speaker 9: to serve the areas that they're in.

794
00:32:33,040 --> 00:32:36,120
Speaker 4: So yeah, from an operations perspective, talk to us about

795
00:32:36,120 --> 00:32:38,920
Speaker 4: how you're using technology to sort of offset where people

796
00:32:40,000 --> 00:32:43,400
Speaker 4: maybe add more people, where people are going add more

797
00:32:43,760 --> 00:32:45,600
Speaker 4: stuff there. What's the tech side of this?

798
00:32:45,800 --> 00:32:48,160
Speaker 9: So on the tech side not necessarily tied to food

799
00:32:48,160 --> 00:32:50,760
Speaker 9: and beverage, so much more tied to seating our fans,

800
00:32:50,880 --> 00:32:52,520
Speaker 9: especially the first week of tennis right now with so

801
00:32:52,520 --> 00:32:55,040
Speaker 9: many grounds, passes and matches going on everywhere. We actually

802
00:32:55,040 --> 00:32:57,200
Speaker 9: have cameras aimed at every bleacher, so you can kind

803
00:32:57,200 --> 00:32:59,600
Speaker 9: of get an idea of where you're going to go, green, yellow, red,

804
00:32:59,680 --> 00:33:02,480
Speaker 9: for you know, which has seating available to kind of

805
00:33:02,480 --> 00:33:04,360
Speaker 9: point people in the right direction to catch the tennis.

806
00:33:04,840 --> 00:33:05,680
Speaker 4: Love that all right?

807
00:33:05,880 --> 00:33:10,720
Speaker 2: What's the most exclusive dining experience here?

808
00:33:12,960 --> 00:33:16,360
Speaker 9: Exclusive dining Aces and Champions are two signature restaurants on

809
00:33:16,400 --> 00:33:18,720
Speaker 9: the club level of ash. You either need a court

810
00:33:18,760 --> 00:33:21,160
Speaker 9: side ticket or a sweet ticket to access them. Those

811
00:33:21,160 --> 00:33:23,640
Speaker 9: are probably what people just die to get into. The

812
00:33:23,680 --> 00:33:26,320
Speaker 9: reservations are off the charts.

813
00:33:26,160 --> 00:33:27,520
Speaker 3: And what's this chicken?

814
00:33:27,520 --> 00:33:29,680
Speaker 4: The lowly media pass Carol will not get you in.

815
00:33:29,840 --> 00:33:31,520
Speaker 5: Yeah, let me know if you guys need.

816
00:33:33,400 --> 00:33:33,920
Speaker 3: It's okay.

817
00:33:33,960 --> 00:33:37,000
Speaker 2: I got my French fries before. What's this chicken dish

818
00:33:37,040 --> 00:33:37,720
Speaker 2: with caviar?

819
00:33:38,040 --> 00:33:41,200
Speaker 9: So Coco Doc by restaurant tour Simon Kim So if

820
00:33:41,240 --> 00:33:43,160
Speaker 9: you've heard of it, popular restaurant in the city right.

821
00:33:43,040 --> 00:33:44,560
Speaker 4: Now, House knows about them.

822
00:33:46,160 --> 00:33:48,240
Speaker 9: So we have the stand on the club level of

823
00:33:48,280 --> 00:33:51,160
Speaker 9: Arthur ash Stadium and it is just unbelievable.

824
00:33:51,160 --> 00:33:52,280
Speaker 5: I mean you can get regular.

825
00:33:52,080 --> 00:33:54,280
Speaker 9: Chicken nuggets with dipping sauces all the way up to

826
00:33:54,520 --> 00:33:59,120
Speaker 9: truffle nuggets or the caviar covered nuggets, and it's selling crazy.

827
00:33:59,240 --> 00:34:00,960
Speaker 4: I'm going to ask you this question that I asked

828
00:34:01,040 --> 00:34:03,000
Speaker 4: Kirsten just in the last twenty seconds we have with you.

829
00:34:03,040 --> 00:34:05,280
Speaker 4: What's the what's the big difference that you're already planning

830
00:34:05,280 --> 00:34:07,560
Speaker 4: for next year? What's something new that's coming in twenty five?

831
00:34:07,800 --> 00:34:08,560
Speaker 4: What are you thinking about.

832
00:34:09,040 --> 00:34:11,560
Speaker 9: We're always looking at new chef's, new restaurants, what people

833
00:34:11,600 --> 00:34:13,279
Speaker 9: are craving. I'll get back to you after I look

834
00:34:13,280 --> 00:34:14,480
Speaker 9: at all the data.

835
00:34:15,080 --> 00:34:17,680
Speaker 4: Always working this guy is always working, always looking at

836
00:34:17,680 --> 00:34:18,040
Speaker 4: the data.

837
00:34:18,080 --> 00:34:21,120
Speaker 3: That is such. That is such cool stuff. Thank you

838
00:34:21,160 --> 00:34:22,719
Speaker 3: so much. And cardible Deli's.

839
00:34:22,440 --> 00:34:25,400
Speaker 4: Back to they are it's popular, very cool, stormy sandwich.

840
00:34:25,400 --> 00:34:27,279
Speaker 4: Maybe hey, I already had what I I have know

841
00:34:27,320 --> 00:34:29,920
Speaker 4: you at something Chicken euro something delicious.

842
00:34:30,320 --> 00:34:32,879
Speaker 3: Great, Chris, thank you so much. Thanks for good luck

843
00:34:32,880 --> 00:34:33,080
Speaker 3: with it.

844
00:34:33,160 --> 00:34:36,080
Speaker 2: Chris Dudley, he's managing director of Events Services at the USTA,

845
00:34:36,239 --> 00:34:38,360
Speaker 2: joining us right here on site at the US.

846
00:34:38,280 --> 00:34:41,600
Speaker 4: Open brom.

847
00:34:43,320 --> 00:34:43,760
Speaker 1: Journal.

848
00:34:44,760 --> 00:34:45,759
Speaker 3: Now about you let me drive?

849
00:34:46,040 --> 00:34:52,320
Speaker 8: Oh no, no, no, no, alright please, I'll gravelt.

850
00:34:52,600 --> 00:34:53,319
Speaker 2: I want to drive.

851
00:34:55,560 --> 00:34:56,480
Speaker 3: It's a good question.

852
00:35:00,280 --> 00:35:03,759
Speaker 1: This is the drive to the clothes down communing well

853
00:35:03,840 --> 00:35:07,040
Speaker 1: Brier on Bloomberg Radio.

854
00:35:09,120 --> 00:35:11,400
Speaker 2: All right, everybody, just about eighteen minutes left in today's

855
00:35:11,400 --> 00:35:13,920
Speaker 2: trading session. We are definitely driving to the clothes on

856
00:35:14,000 --> 00:35:16,640
Speaker 2: this Thursday. You've got equities, as you just heard from

857
00:35:16,640 --> 00:35:19,719
Speaker 2: Amy Morris, definitely off their highs of this session. And

858
00:35:19,760 --> 00:35:22,040
Speaker 2: we did see some movement on the treasury side of

859
00:35:22,080 --> 00:35:25,040
Speaker 2: things following this morning's economic report.

860
00:35:25,440 --> 00:35:29,120
Speaker 3: Upbeat growth is still happening. That's a good thing. Maybe

861
00:35:29,120 --> 00:35:30,080
Speaker 3: a recession won't happen.

862
00:35:30,120 --> 00:35:31,600
Speaker 2: We'll have to see what our next guest has to

863
00:35:31,640 --> 00:35:34,759
Speaker 2: say with us is a treat John Mussau, he's chief

864
00:35:34,760 --> 00:35:39,600
Speaker 2: executive officer, director Fixed Income at Cumberland Advisors, a firm

865
00:35:39,600 --> 00:35:41,480
Speaker 2: that has been around for a half a century or so,

866
00:35:41,800 --> 00:35:44,640
Speaker 2: and of course a good friend David Kotek. I think

867
00:35:44,640 --> 00:35:47,960
Speaker 2: about it, like we've talked lots of conversations. You guys

868
00:35:48,000 --> 00:35:49,520
Speaker 2: have seen a lot of market cycles.

869
00:35:49,840 --> 00:35:50,680
Speaker 5: Yeah, let's do it.

870
00:35:50,840 --> 00:35:51,960
Speaker 2: What does this one tell you?

871
00:35:52,719 --> 00:35:57,000
Speaker 7: We think it's elongated because of COVID, so everything takes longer. Yeah,

872
00:35:57,040 --> 00:35:59,799
Speaker 7: you know, it took a while for inflation to set in,

873
00:36:00,320 --> 00:36:03,680
Speaker 7: took longer. It took longer for the Fed to raise rates.

874
00:36:04,280 --> 00:36:06,160
Speaker 7: It's taken a longer time for the Fed to start

875
00:36:06,200 --> 00:36:09,200
Speaker 7: cutting rates, which looks like it's going to happen next month.

876
00:36:09,880 --> 00:36:12,320
Speaker 7: And it's taken a while for inflation to come back down,

877
00:36:12,640 --> 00:36:14,839
Speaker 7: which seems like it's finally taking place as well.

878
00:36:14,920 --> 00:36:16,239
Speaker 3: So we're getting back to normal.

879
00:36:16,360 --> 00:36:20,120
Speaker 7: Getting whatever normal, whatever normal is, is taking longer.

880
00:36:19,840 --> 00:36:20,319
Speaker 5: To get there.

881
00:36:21,440 --> 00:36:23,800
Speaker 4: Are you concerned that the Fed waited too long to

882
00:36:23,840 --> 00:36:24,400
Speaker 4: cut rates?

883
00:36:25,880 --> 00:36:28,840
Speaker 7: I am, and because I think there's a lot of

884
00:36:28,880 --> 00:36:34,600
Speaker 7: anecdotal evidence out there that the economy is moving lower,

885
00:36:35,000 --> 00:36:38,120
Speaker 7: maybe a little faster than people think you could almost

886
00:36:38,120 --> 00:36:40,759
Speaker 7: read it a little bit of it into j Powell's language,

887
00:36:41,040 --> 00:36:44,600
Speaker 7: because it seems like he shifted in his not only

888
00:36:44,640 --> 00:36:47,120
Speaker 7: his talk at Jackson Hall, but at the FED meeting

889
00:36:47,160 --> 00:36:51,200
Speaker 7: before that, from a concern about inflation per se to

890
00:36:51,239 --> 00:36:54,160
Speaker 7: a little more concern about the job market and that

891
00:36:54,640 --> 00:36:58,280
Speaker 7: their movements going forward would be to probably hopefully keep

892
00:36:58,880 --> 00:37:01,839
Speaker 7: the job market from slide down, don't you.

893
00:37:01,800 --> 00:37:05,080
Speaker 2: Think, though I don't know, these aren't exact sciences, right,

894
00:37:05,520 --> 00:37:08,360
Speaker 2: especially when you're getting ready to pivot right. It's a

895
00:37:08,360 --> 00:37:11,000
Speaker 2: little tricky, and I mean, I don't know what's worse.

896
00:37:11,040 --> 00:37:12,920
Speaker 2: I mean, obviously, if people are losing jobs, that's not

897
00:37:12,960 --> 00:37:15,080
Speaker 2: going to be a good thing for the economy.

898
00:37:15,120 --> 00:37:16,920
Speaker 3: But I also know that you've got to tame the

899
00:37:16,960 --> 00:37:17,800
Speaker 3: inflation beast.

900
00:37:17,960 --> 00:37:20,480
Speaker 2: But I also do wonder, John, we talked about normal,

901
00:37:20,680 --> 00:37:22,799
Speaker 2: is it a different normal when it comes to where

902
00:37:22,840 --> 00:37:25,120
Speaker 2: inflation needs to run going forward because of some different

903
00:37:25,160 --> 00:37:29,719
Speaker 2: macro factors, whether it's wars or climate change or whatever.

904
00:37:30,280 --> 00:37:33,200
Speaker 7: There's a lot of that at work. In the end.

905
00:37:33,719 --> 00:37:36,799
Speaker 7: I'm always a little distrustful when someone says this time

906
00:37:36,840 --> 00:37:39,839
Speaker 7: it's different, you know, and you've had people say that,

907
00:37:40,280 --> 00:37:42,600
Speaker 7: particularly when you talk about something like the inverted.

908
00:37:42,280 --> 00:37:43,200
Speaker 5: Yell crew for example.

909
00:37:43,200 --> 00:37:45,719
Speaker 7: They're saying it doesn't matter anymore because now you're like

910
00:37:46,200 --> 00:37:48,319
Speaker 7: a year past a year and a half and we

911
00:37:48,400 --> 00:37:50,160
Speaker 7: haven't gone into a slowdown.

912
00:37:50,880 --> 00:37:53,520
Speaker 5: I would suggest that you can still wait and.

913
00:37:53,560 --> 00:37:58,879
Speaker 7: See that and why because COVID has extended that time

914
00:37:58,880 --> 00:38:01,800
Speaker 7: period there was so much space in the system. You're

915
00:38:01,800 --> 00:38:04,319
Speaker 7: starting to see things like and you've had other guests

916
00:38:04,320 --> 00:38:08,759
Speaker 7: talk about it, higher rates of people, you know, not

917
00:38:08,840 --> 00:38:09,840
Speaker 7: paying their credit cards.

918
00:38:10,760 --> 00:38:11,400
Speaker 5: You're seeing it.

919
00:38:11,920 --> 00:38:15,239
Speaker 7: I see it personally in my email every week where

920
00:38:15,280 --> 00:38:18,640
Speaker 7: I'm getting resumes from either people that have lost jobs

921
00:38:18,640 --> 00:38:21,680
Speaker 7: in financial services, but also from kids getting out of

922
00:38:21,680 --> 00:38:22,840
Speaker 7: college that can't get jobs.

923
00:38:22,840 --> 00:38:24,919
Speaker 5: That's a far cry from where you were two years ago.

924
00:38:25,200 --> 00:38:27,600
Speaker 4: Now that doesn't you know, list, is this a normalization

925
00:38:27,960 --> 00:38:29,640
Speaker 4: or is this concerning to you?

926
00:38:30,000 --> 00:38:33,440
Speaker 7: It's it's I see it as a normalization given the

927
00:38:34,080 --> 00:38:34,920
Speaker 7: hot market.

928
00:38:34,680 --> 00:38:36,520
Speaker 4: You were in two years Like, this is pre COVID

929
00:38:36,560 --> 00:38:37,440
Speaker 4: levels pre COVID.

930
00:38:37,520 --> 00:38:41,160
Speaker 7: Yeah, yes, you're a pre COVID levels, but moving moving

931
00:38:41,160 --> 00:38:43,680
Speaker 7: in the downward direction, right, So that's that's a bit

932
00:38:43,719 --> 00:38:44,200
Speaker 7: of a concern.

933
00:38:44,280 --> 00:38:46,759
Speaker 2: But that's a great question, Like, so is it if

934
00:38:46,760 --> 00:38:49,080
Speaker 2: we're getting back to normal, which is just getting back

935
00:38:49,080 --> 00:38:49,720
Speaker 2: to normal.

936
00:38:50,120 --> 00:38:52,640
Speaker 3: But getting back to normal can be painful on the.

937
00:38:52,600 --> 00:38:56,960
Speaker 7: Economy, sure, you know, especially if you're the one losing

938
00:38:57,000 --> 00:39:00,920
Speaker 7: their job, and you know, there's there was no question

939
00:39:01,040 --> 00:39:05,440
Speaker 7: that most, if not all, of these COVID funds were spent,

940
00:39:05,600 --> 00:39:08,560
Speaker 7: and that is what of course caused that, not damage,

941
00:39:08,600 --> 00:39:11,600
Speaker 7: but the cycle that we did see on inflation. And

942
00:39:12,480 --> 00:39:15,160
Speaker 7: I think you would not necessarily have been here if

943
00:39:15,200 --> 00:39:18,120
Speaker 7: maybe the FED had acted sooner back in twenty twenty one.

944
00:39:18,200 --> 00:39:20,680
Speaker 5: Then you know, wait until this March of twenty.

945
00:39:20,400 --> 00:39:23,520
Speaker 4: Two to their defense, and I think is still the

946
00:39:23,600 --> 00:39:26,120
Speaker 4: jury isn't necessarily still out, but I think there was

947
00:39:26,160 --> 00:39:30,560
Speaker 4: still supply chain challenges that led to some of the

948
00:39:30,560 --> 00:39:31,919
Speaker 4: inflation pressures that we saw.

949
00:39:32,040 --> 00:39:34,200
Speaker 7: I would agree with you, Tim, and I don't think

950
00:39:34,200 --> 00:39:37,680
Speaker 7: it was just that. I think it's the Fed, like

951
00:39:37,760 --> 00:39:40,279
Speaker 7: back during the Great Recession, where they kept short term

952
00:39:40,360 --> 00:39:42,720
Speaker 7: regis rates at zero a quarter for god seven years,

953
00:39:44,040 --> 00:39:46,839
Speaker 7: the same concerns were this time. They did not want

954
00:39:46,880 --> 00:39:50,160
Speaker 7: to see employment slide back just as it was coming out,

955
00:39:50,400 --> 00:39:52,080
Speaker 7: and they would err on that side.

956
00:39:52,520 --> 00:39:56,360
Speaker 4: Hey, let's talk politics, because everybody loves talking about politzing

957
00:39:56,480 --> 00:39:59,680
Speaker 4: going on. Yeah, nothing going on right, nothing happened in November.

958
00:40:01,200 --> 00:40:03,719
Speaker 4: How should pond investors think about these two candidates.

959
00:40:04,840 --> 00:40:07,520
Speaker 7: Listen, we saw in twenty sixteen, we saw yields move

960
00:40:07,600 --> 00:40:10,640
Speaker 7: up when Trump got elected out overnight and yield shot up,

961
00:40:10,680 --> 00:40:13,200
Speaker 7: and they stayed elevated for the better part of about

962
00:40:13,560 --> 00:40:16,719
Speaker 7: nine ten months before they started to come down. You

963
00:40:16,800 --> 00:40:21,360
Speaker 7: saw that same reaction after the first debate, and yields

964
00:40:21,400 --> 00:40:24,600
Speaker 7: bounced up about almost twenty five basis points from where

965
00:40:24,600 --> 00:40:27,960
Speaker 7: they were because people started to assume not only a

966
00:40:28,040 --> 00:40:32,120
Speaker 7: Trump winning the election, but also a particularly after the

967
00:40:32,160 --> 00:40:35,759
Speaker 7: assassination offempt, a sweep of Congress, both the House and

968
00:40:35,800 --> 00:40:39,320
Speaker 7: the Senate. And that perception is, oh boy, if everybody's

969
00:40:39,360 --> 00:40:41,880
Speaker 7: on the same side, they're going to start spending money,

970
00:40:42,080 --> 00:40:43,520
Speaker 7: you know, just like a party.

971
00:40:43,640 --> 00:40:45,960
Speaker 4: But is it also the idea that if Trump were

972
00:40:46,000 --> 00:40:48,719
Speaker 4: to win, he would and he's talked openly about this,

973
00:40:49,400 --> 00:40:52,360
Speaker 4: the idea of maybe pressuring the FED or having input

974
00:40:53,280 --> 00:40:54,879
Speaker 4: to the FED when it comes to interest rates. He's

975
00:40:54,880 --> 00:40:55,839
Speaker 4: talked about that, he says, as.

976
00:40:55,840 --> 00:40:57,160
Speaker 5: Much is talked about it.

977
00:40:57,440 --> 00:40:58,920
Speaker 7: I think if he really wanted.

978
00:40:58,640 --> 00:41:01,400
Speaker 4: To think, some people are worried about the credibility of

979
00:41:01,400 --> 00:41:02,719
Speaker 4: the FED in a situation r right.

980
00:41:03,480 --> 00:41:05,479
Speaker 7: My own thought is that if he won, he would

981
00:41:05,520 --> 00:41:07,719
Speaker 7: keep J. Powell in there at least to the end

982
00:41:07,719 --> 00:41:10,160
Speaker 7: of his term in twenty eight. And one of the

983
00:41:10,200 --> 00:41:13,440
Speaker 7: reasons there is that he appointed stuff. You know, you know,

984
00:41:13,480 --> 00:41:16,719
Speaker 7: there's some credence level there, right. But I do think

985
00:41:16,840 --> 00:41:21,240
Speaker 7: that the idea that if all parties White House, Senate

986
00:41:21,320 --> 00:41:24,440
Speaker 7: and House of Representatives are on the same side, that

987
00:41:24,560 --> 00:41:27,920
Speaker 7: is regardless of who's in power, Democrats or Republicans, because

988
00:41:27,960 --> 00:41:31,520
Speaker 7: you spend because there's no check in balance. So I

989
00:41:31,560 --> 00:41:33,480
Speaker 7: think the market started to assume.

990
00:41:33,520 --> 00:41:36,000
Speaker 4: Hey, but my question is more about rates and pressure

991
00:41:36,040 --> 00:41:37,759
Speaker 4: that he would put on any FED chair, whether it's

992
00:41:37,760 --> 00:41:39,759
Speaker 4: Powell or not. He said he has said that he

993
00:41:39,760 --> 00:41:41,440
Speaker 4: thinks the president should have input when it comes to

994
00:41:41,520 --> 00:41:41,759
Speaker 4: is it.

995
00:41:41,719 --> 00:41:42,880
Speaker 3: More bark than bite?

996
00:41:43,000 --> 00:41:44,080
Speaker 5: I think it's I think it's more.

997
00:41:44,120 --> 00:41:46,440
Speaker 7: I think it's more barked than bite, certainly because the

998
00:41:46,520 --> 00:41:48,960
Speaker 7: last thing he wants to do is have the financial

999
00:41:49,000 --> 00:41:52,160
Speaker 7: markets go into a you know, volatility mix, right, because

1000
00:41:52,200 --> 00:41:52,440
Speaker 7: of what.

1001
00:41:52,400 --> 00:41:54,800
Speaker 3: He's saying, right, they will have no credibility.

1002
00:41:54,840 --> 00:41:56,840
Speaker 2: He will have no credibility. It's not about FED not

1003
00:41:56,880 --> 00:41:59,760
Speaker 2: having credibility, no, no, All right, got about a minute lapped,

1004
00:42:00,120 --> 00:42:01,759
Speaker 2: So how do you invest? You know, you're playing in

1005
00:42:01,800 --> 00:42:03,680
Speaker 2: the fixed income world. As we're getting ready for a

1006
00:42:03,719 --> 00:42:07,280
Speaker 2: FED pivot, we think, like, what's your advice to investors?

1007
00:42:07,600 --> 00:42:09,799
Speaker 7: I think I think that you know, listening, you don't

1008
00:42:09,800 --> 00:42:12,000
Speaker 7: have the yields like they were last you know, would

1009
00:42:12,040 --> 00:42:15,080
Speaker 7: fall right when when the ten year hit five percent.

1010
00:42:15,120 --> 00:42:16,680
Speaker 3: It's people we're talking six percent.

1011
00:42:16,760 --> 00:42:18,960
Speaker 7: Yeah, you're three eighty five. You can make a good

1012
00:42:18,960 --> 00:42:21,920
Speaker 7: case of inflation's coming down. We think bonds offer some

1013
00:42:21,960 --> 00:42:24,800
Speaker 7: good value. We think tax free municipal bonds offer a

1014
00:42:24,920 --> 00:42:26,759
Speaker 7: really good value because they're backed up by a lot

1015
00:42:26,760 --> 00:42:29,320
Speaker 7: of supply. So there's a lot of high quality, investment

1016
00:42:29,360 --> 00:42:32,640
Speaker 7: grade intermediate longer bonds and four percent plus tax feels

1017
00:42:32,960 --> 00:42:34,200
Speaker 7: that's like over seven.

1018
00:42:33,920 --> 00:42:35,880
Speaker 2: When you're computing if you're looking at the curve. You

1019
00:42:35,920 --> 00:42:37,560
Speaker 2: mentioned muni's, But where would you go on the curve?

1020
00:42:37,560 --> 00:42:39,200
Speaker 2: Would you go shorter duration at this point?

1021
00:42:39,480 --> 00:42:42,400
Speaker 7: No, no, no, We would barbell it with some short

1022
00:42:42,480 --> 00:42:45,160
Speaker 7: term bonds, but also some bonds out in fifteen years

1023
00:42:45,239 --> 00:42:48,040
Speaker 7: or so, fifteen to twenty years, because you're getting about

1024
00:42:48,600 --> 00:42:52,040
Speaker 7: ninety percent plus of the available yields out in thirty years.

1025
00:42:52,080 --> 00:42:56,000
Speaker 7: So we think that is very good value and listen.

1026
00:42:56,560 --> 00:42:59,160
Speaker 7: You know that if Democrats win, you have a good

1027
00:42:59,239 --> 00:43:01,560
Speaker 7: chance of tax rates going up, so they present some

1028
00:43:01,560 --> 00:43:03,280
Speaker 7: good value, good stuff.

1029
00:43:03,280 --> 00:43:05,640
Speaker 3: What a pleasure, what a treat, say aboad to David.

1030
00:43:06,840 --> 00:43:07,960
Speaker 5: Really nice to see a pleasure.

1031
00:43:08,560 --> 00:43:09,240
Speaker 3: John Whosso.

1032
00:43:09,400 --> 00:43:11,319
Speaker 2: He is of course Chief executive Officer, Director of Fixed

1033
00:43:11,320 --> 00:43:13,000
Speaker 2: in Coomic Humberland Advisors.

1034
00:43:13,200 --> 00:43:17,799
Speaker 1: This is the Bloomberg Business Week podcast, available on Apple, Spotify,

1035
00:43:17,960 --> 00:43:21,640
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1036
00:43:21,680 --> 00:43:25,320
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1037
00:43:25,360 --> 00:43:28,680
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1038
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1039
00:43:31,920 --> 00:43:35,960
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