WEBVTT - Bloomberg Businessweek Weekend - December 10th, 2021 0:00:01.080 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news As it happened. Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.319 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.480 --> 0:00:24.960 edition of Bloomberg Business Week. Another busy week, including some 0:00:25.040 --> 0:00:28.840 stats on the US employment picture, Labor Department coming out 0:00:28.880 --> 0:00:31.520 saying that job openings rose to eleven million in the 0:00:31.560 --> 0:00:34.680 month of October. That tim is the second highest total 0:00:34.720 --> 0:00:37.120 on record. And keep in mind this is against a 0:00:37.159 --> 0:00:40.879 backdrop of more than twenty four million Americans quitting their 0:00:40.960 --> 0:00:43.559 jobs from April to September and what's been called the 0:00:43.560 --> 0:00:45.920 Great Resignation, something you and I talked about so much. 0:00:46.120 --> 0:00:48.240 That story, by the way, a Bloomberg Big Take, also 0:00:48.280 --> 0:00:50.519 featured in the magazine this week, A really good one. 0:00:50.520 --> 0:00:52.600 We're gonna do a deep dive in just a few minutes. 0:00:52.640 --> 0:00:55.600 In the meantime, Today's changing labor market a major outcome 0:00:55.640 --> 0:00:58.280 of the pandemic. It's affecting the economy in a lot 0:00:58.320 --> 0:01:00.560 of different ways. Carol. It's something that we talked about 0:01:00.600 --> 0:01:03.720 with Carlisle Group co founder and co chairman David Rubinstein. 0:01:03.800 --> 0:01:05.720 I like to think of him as an elder statesman. 0:01:05.800 --> 0:01:07.880 Not just it's an age thing, but he's just seen 0:01:08.240 --> 0:01:11.920 so many different market cycles, economic pictures. He's worked in 0:01:11.959 --> 0:01:16.120 the public sector in the Carter administration, understands, obviously the 0:01:16.160 --> 0:01:18.800 investment world than the private sector. So I always loved 0:01:18.800 --> 0:01:20.800 getting some time with him. Plus a venture capitalist and 0:01:20.840 --> 0:01:23.839 a o L founder Steve Case and Apparvist president David 0:01:23.920 --> 0:01:26.760 Lee talked all about building sustainable brands. Carol. This is 0:01:26.760 --> 0:01:29.440 from a panel that you did this week. In keeping 0:01:29.480 --> 0:01:32.680 with that, our Bloomberg Business Week investigations team also examines 0:01:32.720 --> 0:01:35.440 the s G ratings industry through the lens of the 0:01:35.520 --> 0:01:38.920 rating agency heavyweight m s c I, and its findings 0:01:39.000 --> 0:01:42.679 cast harsh light on what E s G investing actually means. 0:01:42.840 --> 0:01:44.559 All of that to come, we begin with this week's 0:01:44.600 --> 0:01:47.400 cover story. It's also a Bloomberg Big Take, one of 0:01:47.400 --> 0:01:50.640 our most read stories on the terminal as well. This week, 0:01:50.920 --> 0:01:54.120 it's about scientists looking for a super vaccine to beat Delta, 0:01:54.200 --> 0:01:57.639 A macron and all those variants. Bloomberg News Healthcare reporter 0:01:57.720 --> 0:02:00.200 Bob Langrath wrote it. He joined us a on with 0:02:00.200 --> 0:02:03.400 Bloomberg business Week editor Joel Weber. What we're ultimately talking 0:02:03.400 --> 0:02:07.000 about here isn't about just a booster or or even 0:02:07.040 --> 0:02:09.880 anything that's specifically about COVID, although it couldn't solve it 0:02:09.919 --> 0:02:14.720 with but there is a very very very early science 0:02:14.760 --> 0:02:18.480 that suggests that we could actually be able to develop 0:02:18.560 --> 0:02:20.799 something that looks like a pan coronavirus. So that would 0:02:20.800 --> 0:02:25.640 account for not just COVID, but remember mers, remember stars, uh, 0:02:25.919 --> 0:02:30.680 even maybe even the common cold um. And again, let 0:02:30.680 --> 0:02:34.360 me underscore this early science. And if this plays out 0:02:34.400 --> 0:02:37.400 a little bit though, knowing what we know now about 0:02:37.440 --> 0:02:39.600 being able to develop vaccines, it might not be so 0:02:39.680 --> 0:02:41.400 much that the science would be the thing that would 0:02:41.400 --> 0:02:43.520 hold us back so much as the economics of it. 0:02:43.600 --> 0:02:46.760 All Right, So, so Bob, take us to Singapore, where 0:02:46.760 --> 0:02:49.760 the science as part of the sciences is coming from. Yeah, 0:02:49.840 --> 0:02:52.520 So we begin the story with a lead of one 0:02:52.560 --> 0:02:54.520 of the from one of the kind of world's top 0:02:54.600 --> 0:02:58.280 bat coronavirus exports, a guy named Lintha Wang. And Singapore 0:02:58.280 --> 0:03:01.200 has been studying bad born viruses for decades and one 0:03:01.280 --> 0:03:03.840 had led the team that discovered that stars that was 0:03:03.880 --> 0:03:07.639 at one of the the coronavirus UH deadly chroma virus 0:03:07.680 --> 0:03:10.000 epidemic and two US in three he discovered that came 0:03:10.040 --> 0:03:15.760 from bats UH and UH. So when the UH the 0:03:15.800 --> 0:03:18.239 pandemic started to happen early on, he had this idea 0:03:18.320 --> 0:03:21.000 that maybe some of these stars survivors in Singapore some 0:03:21.040 --> 0:03:23.560 kind of special antibodies that they could protect against COVID. 0:03:23.680 --> 0:03:25.440 To look at them. It turns out they didn't. But 0:03:25.480 --> 0:03:29.239 then about a year later, you know, those survivors in Singapore, 0:03:29.280 --> 0:03:33.799 the original stars, you know, started getting UH immunizations for COVID, 0:03:33.800 --> 0:03:35.560 and he had this idea, like, now they've kind of 0:03:35.640 --> 0:03:38.800 this is this rare window into immune systems, have been 0:03:38.840 --> 0:03:42.520 exposed to these different, you know, epidemic strains of coronaviruses, 0:03:42.560 --> 0:03:44.880 and do they have some special cross reactive antibodies And 0:03:45.000 --> 0:03:47.480 looked again and they did. They had antibodies and protections 0:03:47.480 --> 0:03:50.080 against like five different coronaviruses that have never been in 0:03:50.160 --> 0:03:52.840 humans before. It feels like a holy grail. That was 0:03:53.000 --> 0:03:55.760 the first signs like this sort of thing might be possible. 0:03:55.800 --> 0:03:58.280 And he and about you know, ten twelve, thirteen other 0:03:58.360 --> 0:04:00.440 labs and a bunch of smaller Biottack, So, you know, 0:04:01.160 --> 0:04:02.760 racing to work on this, but you know, a long 0:04:02.880 --> 0:04:05.440 term the key question is if if this continues to 0:04:05.480 --> 0:04:07.320 look prompting, who's going to put up the money to 0:04:07.360 --> 0:04:09.320 do it, for the big kind of Manhattan project to 0:04:09.320 --> 0:04:11.320 do it. You know, here we are with the omicron 0:04:11.400 --> 0:04:14.040 variant making its way around the world, and the executives 0:04:14.040 --> 0:04:15.960 of these companies are being asked, are you working already 0:04:15.960 --> 0:04:18.600 on an omicron variant shot? If they're giving us some 0:04:18.640 --> 0:04:21.000 sort of shot every six months to attack a new variant, 0:04:21.360 --> 0:04:24.360 that's money in their pockets. So incentives aren't necessarily aligned 0:04:24.400 --> 0:04:27.000 with them creating this shot to end all shots. All right, 0:04:27.080 --> 0:04:28.960 they have a thing, you know, that works right now, 0:04:29.040 --> 0:04:31.479 and they've a kind of procedure they know that probably 0:04:31.520 --> 0:04:34.240 gonna work to make something for a new variant, at 0:04:34.320 --> 0:04:35.840 least for you know, we don't know how long these 0:04:35.880 --> 0:04:37.800 things are gonna work, that's one thing. And then if 0:04:37.839 --> 0:04:39.960 new variants keep coming, you know, even with m R 0:04:40.000 --> 0:04:43.040 and A, which is faster than other vaccine technowledge, you're 0:04:43.040 --> 0:04:45.760 still scrambling to keep up. You're still gotta know a 0:04:45.880 --> 0:04:49.480 virus that raises ahead of things. So you know, so 0:04:49.560 --> 0:04:51.760 the riskier thing but it could pay off, would be 0:04:51.800 --> 0:04:53.960 to put in a lot of money, a big Manhattan 0:04:54.000 --> 0:04:57.440 style research project by someone to see if this universal 0:04:57.480 --> 0:05:00.920 thing is really possible, but someone has to put big 0:05:00.960 --> 0:05:03.800 bucks behind it if the research continues to be promising. Well, 0:05:03.839 --> 0:05:05.839 the other thing here is like there's there's big bucks 0:05:05.880 --> 0:05:07.919 and and there's some of that, right, and I h 0:05:08.000 --> 0:05:09.880 just put some of that in there. But there's even 0:05:09.920 --> 0:05:12.880 like potentially different technologies, right, Like we've all come to 0:05:12.960 --> 0:05:16.800 understand m R and A is one thing, but nanoparticles, Yeah, 0:05:16.839 --> 0:05:20.039 so that's one of the new tell more. Yeah, i'd 0:05:20.040 --> 0:05:23.120 say like the next next generation like vaccines. So the 0:05:23.200 --> 0:05:25.800 idea behind these nanoparticle vaccines, which is one of the 0:05:25.839 --> 0:05:28.720 main technologies are pursuing for a kind of pan or 0:05:28.760 --> 0:05:31.839 coronavirus shots, is that you have a little kind of 0:05:31.880 --> 0:05:34.839 virus sized particle. It's either some sort of bacterial or 0:05:34.920 --> 0:05:37.560 kind of artificial protein you can of add on a 0:05:37.600 --> 0:05:40.880 little different spike proteins or surface proteins from different coronavirus 0:05:40.920 --> 0:05:42.680 is kind of all over the top, So so it 0:05:42.680 --> 0:05:45.159 looks like to the immune system, looks like a virus 0:05:45.160 --> 0:05:48.640 with pieces of ten different coronaviruses on top, and that 0:05:49.320 --> 0:05:52.359 in theory might train the immune system to kind of 0:05:52.400 --> 0:05:56.200 generate cross reactive antibodies against multiple coronaviruses. And that's what 0:05:56.279 --> 0:05:59.960 they're showing in these lab experiments and and it's more 0:06:00.000 --> 0:06:03.239 to lab experience. There's a few phase one human trials, 0:06:03.279 --> 0:06:05.400 but not many. That's what they're showing that may be 0:06:05.520 --> 0:06:08.440 happening in some of these early experiments. And yeah, so 0:06:08.480 --> 0:06:11.240 it's very intriguing. That was Bloomberg News healthcare reporter bomb 0:06:11.279 --> 0:06:14.080 Langrath along with Business Week editor Joel Weber, coming out 0:06:14.160 --> 0:06:16.680 the pandemic has royal the global travel industry for more 0:06:16.720 --> 0:06:18.719 than a year and a half, you know that, and 0:06:18.760 --> 0:06:21.600 the emergence of the amicron variant not helping things out 0:06:21.680 --> 0:06:24.599 right now. Yeah, Trivago CEO Axel Heifer joined us on 0:06:24.720 --> 0:06:27.800 when businesses might finally turn the corner. You're listening to 0:06:27.800 --> 0:06:40.520 Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business 0:06:40.560 --> 0:06:44.279 Week with Carol Masser and Bloomberg Quick Takes Tim Stinovik 0:06:44.520 --> 0:06:48.640 from Bloomberg Radio. Yeah, it's not easy to be a 0:06:48.680 --> 0:06:51.760 global travel and hospitality company during the pandemic and the 0:06:51.760 --> 0:06:55.000 emergence of yet another coronavirus variant. It's only adding to 0:06:55.040 --> 0:06:59.000 the uncertainty and volatility within the industry. Airlines, cruise lines, 0:06:59.040 --> 0:07:02.159 hotels services we used to book them also taking a 0:07:02.279 --> 0:07:05.479 major hit for the last eighteen months. Our next Yes, well, 0:07:05.640 --> 0:07:07.719 he's right in the middle of it. That is so true, 0:07:07.800 --> 0:07:09.880 and we've seen the stocks kind of moved back and forth, 0:07:09.920 --> 0:07:12.640 sometimes rolling, sometimes taking a hit as a result of 0:07:12.720 --> 0:07:15.040 the news to do with the virus. You mentioned the 0:07:15.040 --> 0:07:17.000 executive right in the middle of it. We're talking about 0:07:17.000 --> 0:07:20.920 Axel Heifer, the CEO of the booking platform Travago. He 0:07:21.000 --> 0:07:22.960 caught up with us from his home base in Germany 0:07:23.000 --> 0:07:25.320 to talk about the latest hurdles brought on by COVID 0:07:25.400 --> 0:07:28.880 and when he expects fingers crossed things to pick up. 0:07:29.000 --> 0:07:31.280 The situation got a lot worse, and particularly in some 0:07:31.360 --> 0:07:35.520 of our core markets in Europe, with infections on record 0:07:35.600 --> 0:07:38.960 highs in Germany and in many other markets. On the 0:07:38.960 --> 0:07:43.120 other hand, um, we continue to believe that the outlook 0:07:43.160 --> 0:07:45.240 and the spring will be very very strong and that 0:07:45.360 --> 0:07:48.320 we will be through the pandemic more or less by 0:07:48.320 --> 0:07:51.400 the middle of next summer. So right now, very tough 0:07:51.600 --> 0:07:56.160 and sometimes also a bit depressing, but the outlooks very positive. 0:07:56.320 --> 0:07:59.080 Well in terms of outlooks, they're in their earnings report 0:07:59.480 --> 0:08:02.480 that you were parted back in November. On November one, 0:08:02.680 --> 0:08:05.000 Treviga said that it does not expect a full rebound 0:08:05.000 --> 0:08:07.520 and travel over the winter. When do you expect a 0:08:07.560 --> 0:08:09.960 full rebound and travel? I do think that that we 0:08:10.000 --> 0:08:13.120 will see a very strong spring. Um. I mean like 0:08:13.120 --> 0:08:16.800 like this year, um we and and also last year 0:08:16.840 --> 0:08:20.560 we've seen that coming out of a winter with high infections, 0:08:20.560 --> 0:08:24.840 with restrictions in many places, um, people want to travel 0:08:25.000 --> 0:08:27.920 and want to actually see friends and family, want to 0:08:27.960 --> 0:08:31.240 get out and then get a break and um, and 0:08:31.280 --> 0:08:34.640 we expect exactly the same pattern. Um. Having said that, 0:08:34.720 --> 0:08:37.840 what will be different from our perspective in two versus 0:08:38.000 --> 0:08:42.040 twenty one, and for sure obviously twenty is that there 0:08:42.200 --> 0:08:46.719 is a signatantly greater number of people vaccinated twice or 0:08:46.760 --> 0:08:50.040 even three times, and to be honest, also a significantly 0:08:50.080 --> 0:08:53.520 greater number of people that God's sick already and have 0:08:53.640 --> 0:08:55.840 antibodies because of that. One thing I wanted to go 0:08:55.880 --> 0:08:57.720 back to is a Thanksgiving weekend. How did that go 0:08:57.960 --> 0:09:00.960 for you guys? And is that an indicator maybe what 0:09:01.000 --> 0:09:03.520 we'll see through the rest of the winter season. I 0:09:03.520 --> 0:09:06.320 mean it went well in the US overall, is uh 0:09:06.679 --> 0:09:09.920 is still much much more stable than Europe, to be honest, um, 0:09:10.000 --> 0:09:12.480 and there is one very big benefit in being in 0:09:12.520 --> 0:09:15.480 the US. You don't have to worry that much about 0:09:16.000 --> 0:09:20.080 travel restrictions being imposed between states, UM, which is a 0:09:20.120 --> 0:09:23.360 problem in Europe, and it is something that adds a 0:09:23.360 --> 0:09:26.839 lot of uncertainty to your travel plans. UM. There are 0:09:27.360 --> 0:09:32.200 there's a regular flow of new restrictions, change and restrictions, 0:09:32.240 --> 0:09:36.280 testing requirements, etcetera. And this distriction is what what is 0:09:36.280 --> 0:09:40.360 is concerning people and holding them off from traveling. UM. 0:09:40.400 --> 0:09:43.800 In terms of looking forward, it is very very difficult 0:09:43.800 --> 0:09:48.480 to say, Um, the new variant is obviously adding uncertainty. UM. 0:09:49.240 --> 0:09:52.360 And like in the past, some governments think that you 0:09:52.400 --> 0:09:55.280 can stop a virus from entering the country by imposing 0:09:55.360 --> 0:09:59.560 very strict travel restrictions, which obviously only works for so long. 0:10:00.040 --> 0:10:02.920 Sounds like you disagree with that assessment. It's very difficult 0:10:02.920 --> 0:10:04.360 to say, to be honest, and I don't want to 0:10:04.400 --> 0:10:07.280 be a politician in in in times like we are 0:10:07.320 --> 0:10:11.000 in today, but it works to slow down the spread 0:10:11.040 --> 0:10:13.439 of a virus, which in particular in winter can make 0:10:13.480 --> 0:10:16.480 sense if your hospitals are full already. But um the 0:10:16.600 --> 0:10:21.240 general idea of of locking out the virus in today's 0:10:21.280 --> 0:10:23.839 world and in the kind of global economy that we're 0:10:23.880 --> 0:10:28.240 living in is just theoretical. And you know, every every 0:10:28.440 --> 0:10:32.600 new virus variant will make it eventually to every single country. Hey, actual, 0:10:32.679 --> 0:10:35.400 tell us about the thing you're doing, the partnership with Huawei. 0:10:35.800 --> 0:10:39.080 It's a strategic partnership. What is that all about. Yeah, 0:10:39.080 --> 0:10:42.760 it's it's actually very interesting. Um. So, Huawei is building 0:10:42.880 --> 0:10:47.920 basically their own ecosystem with Harmony os and their own services, 0:10:47.960 --> 0:10:50.959 and the most important services from our perspective our obviously search, 0:10:51.040 --> 0:10:54.480 pedal search and pedal maps, and we are partnering with 0:10:54.559 --> 0:10:58.480 them to help them to bring similar services to their 0:10:58.520 --> 0:11:01.720 customers that exist or ready on other search engines like 0:11:01.840 --> 0:11:07.640 Being or Google um and leveraging our supply of hotels worldwide. 0:11:07.720 --> 0:11:10.559 I'm curious about Wai Huawei. I mean, anyone who listens 0:11:10.600 --> 0:11:13.280 to our program regularly or follows the news knows that 0:11:13.520 --> 0:11:16.200 Wali has been under scrutiny by governments around the world 0:11:16.280 --> 0:11:18.680 and certainly engaged in a spout with the US government. 0:11:18.720 --> 0:11:20.480 So take us in your thinking here. I mean, we 0:11:20.520 --> 0:11:23.800 are we are interested in basically helping every search engine 0:11:24.000 --> 0:11:29.000 UM to compete more effectively with Google and UM, and 0:11:29.080 --> 0:11:32.320 we are we also in discussions with others, but it 0:11:32.440 --> 0:11:35.360 is it's for sure one of the big search engines 0:11:35.400 --> 0:11:38.040 that is up and rising, given that they have a 0:11:38.120 --> 0:11:41.360 huge installed base of devices UM that will be powered 0:11:41.360 --> 0:11:44.640 by their new search UM over the next years. In 0:11:44.640 --> 0:11:46.680 the break, Tim and I were talking and I'm saying 0:11:46.720 --> 0:11:48.439 that sometimes I just get overwhelmed by the amount of 0:11:48.480 --> 0:11:50.720 travel platforms that are out there, and so how do 0:11:50.800 --> 0:11:53.600 you and and truth be told, I am now looking 0:11:53.640 --> 0:11:57.400 for ease, you know, and platforms that are really clear, UM, 0:11:57.480 --> 0:11:59.960 So how do you think about how you want to 0:12:00.040 --> 0:12:03.720 evolved so that you can catch your users attention or 0:12:03.760 --> 0:12:07.520 more users attentions. So, UM, You're absolutely right, I mean 0:12:07.600 --> 0:12:10.320 they we are in a situation where there are too 0:12:10.320 --> 0:12:13.680 many platforms, and in particularly in the pandemic, we've seen 0:12:13.760 --> 0:12:17.000 that size matters a lot. And it doesn't only matter 0:12:17.080 --> 0:12:19.920 in terms of economics, but also in terms of quality 0:12:19.960 --> 0:12:22.160 of service, because that the more users you're having on 0:12:22.200 --> 0:12:25.520 your platform, the better your data is and the better 0:12:25.559 --> 0:12:28.080 your product is and so what we started to do 0:12:28.160 --> 0:12:31.640 and the Huawei partnership is UM one of the first 0:12:31.679 --> 0:12:36.199 partnerships in that direction is we started to develop business 0:12:36.200 --> 0:12:40.280 to business solutions where we help actually other companies to 0:12:40.720 --> 0:12:44.840 serve their customers better m by accessing our back end 0:12:44.880 --> 0:12:48.839 services and basically benefiting from our our size and our 0:12:48.960 --> 0:12:52.720 scale UM for their own benefit. Actual Because tree Vago 0:12:53.080 --> 0:12:58.719 offers people who use the service weekend stays, cars, flights packages, 0:12:58.800 --> 0:13:01.000 you have this unique in it into how people are 0:13:01.000 --> 0:13:04.040 feeling and booking at any given moment. I did want 0:13:04.040 --> 0:13:06.560 to ask you just about what you're seeing on the 0:13:06.600 --> 0:13:09.600 platform in real time right now. Because this is a 0:13:09.640 --> 0:13:13.360 global platform. You serve customers and get revenue from the U, S, 0:13:13.400 --> 0:13:16.320 from Germany, from Brazil, Australia, the UK. What can you 0:13:16.320 --> 0:13:18.360 tell us about what people are doing on the platform 0:13:18.480 --> 0:13:21.360 right now that does or does not reflect any sort 0:13:21.400 --> 0:13:25.760 of trepidation about Akron. Yeah, so the US is relatively 0:13:25.760 --> 0:13:29.440 speaking UM stable to be honest, so there is not 0:13:29.600 --> 0:13:33.960 that much concern UM about the new variant yet. UM 0:13:34.000 --> 0:13:37.559 Europe has been hit by a combination of of really 0:13:38.000 --> 0:13:41.360 increase in in delta cases UM a significant increasing delta 0:13:41.400 --> 0:13:45.920 cases and concerns about the new variants breathing, and then 0:13:45.960 --> 0:13:49.840 in ature um you see a decline in overall activity 0:13:50.120 --> 0:13:53.880 predominantly coming through through the new variants. So it's a 0:13:53.880 --> 0:13:56.560 bit a mixed back as you as you would expect 0:13:56.600 --> 0:14:00.320 across the globe. But generally speaking, people are nervous and 0:14:00.360 --> 0:14:04.680 they're nervous about making travel plants because they have seen 0:14:04.720 --> 0:14:07.240 in the past that any new variant is likely to 0:14:07.320 --> 0:14:09.920 lead to travel restrictions at some point in time. That 0:14:10.040 --> 0:14:13.640 was Triviago Ceo Axel Heafer still ahead on Bloomberg Business Week, 0:14:13.720 --> 0:14:17.320 the cost of Christmas in that's right, what might those 0:14:17.480 --> 0:14:20.800 nine ladies dancing, seven swans of swimming, six ge lank 0:14:21.040 --> 0:14:23.840 and of course those five golden rings? What are they 0:14:23.840 --> 0:14:25.600 going to cost this year? I believe to have to 0:14:25.640 --> 0:14:30.560 say five golden rings. No, you've gotta sing. I'm also 0:14:30.560 --> 0:14:33.240 partial to the ten Lord de Lapy labor an issue 0:14:33.280 --> 0:14:36.120 on that one, that's for sure. That's all coming up next. 0:14:36.280 --> 0:14:45.360 This is Bloomberg broadcasting from the financial capital of the World, 0:14:45.480 --> 0:14:48.920 Bloomberg eleven Frio in New York to Washington, d C. 0:14:49.120 --> 0:14:53.840 Bloomberg to Boston, Bloomberg one oh six one does San Francisco, 0:14:53.880 --> 0:14:57.360 Bloomberg nine sixty to the country, Sirius XM Chado one 0:14:57.440 --> 0:15:00.440 nineteen and around the globe of Bloomberg Business is app 0:15:00.480 --> 0:15:04.840 and Bloomberg Radio dot Com. This is Bloomberg Business Week. 0:15:05.840 --> 0:15:08.120 So twelve Days of Christmas. We're just gonna put that 0:15:08.160 --> 0:15:11.120 out there. What would it maybe cost us this year? 0:15:11.280 --> 0:15:13.400 It's definitely It often goes up from year to year, 0:15:13.520 --> 0:15:15.200 and safe to say it's going to go up this year. 0:15:15.440 --> 0:15:17.760 You got the latest CPI numbers this past Friday, and 0:15:17.840 --> 0:15:20.520 rising prices are proving to be stickier than many had 0:15:20.560 --> 0:15:23.440 hoped for. And those higher costs, well, they can really 0:15:23.480 --> 0:15:26.400 affect people's holiday spending patterns. And with all the supply 0:15:26.560 --> 0:15:28.480 chain snarls we've been covering, we don't even know if 0:15:28.480 --> 0:15:30.680 we're going to be able to get everything we want. Anyway, 0:15:30.800 --> 0:15:33.840 to help us to build out our holiday budget, we 0:15:33.880 --> 0:15:36.160 caught up with the Chief Investment Officer of p NC 0:15:36.280 --> 0:15:39.640 Asset Management Group, Amanda Gotti. She joined us to help 0:15:39.640 --> 0:15:43.560 break down and most expensive installment of the p n 0:15:43.600 --> 0:15:48.280 C Christmas Price INDEXI. It's still cp I, but Christmas 0:15:48.280 --> 0:15:53.800 Price Index right. Five Golden rings. The twelve Days of Christmas. 0:15:53.840 --> 0:15:57.280 The traditional holiday song is really the basket of goods 0:15:57.280 --> 0:16:00.840 and services that we use to price for our annual 0:16:00.920 --> 0:16:04.680 Christmas Price Index. It's literally that simple. We add up 0:16:04.680 --> 0:16:07.320 the cost for one partridge in a pear tree, two 0:16:07.400 --> 0:16:11.200 turtles of and so on as the song goes, Okay, 0:16:11.200 --> 0:16:14.080 well this year, it's it's gonna cost you of tens 0:16:14.080 --> 0:16:18.360 of thousands of dollars two hundred and five dollars and 0:16:18.520 --> 0:16:22.240 fifty eight cents. That's correct to buy all twelve days 0:16:22.240 --> 0:16:24.680 worth of true Love's gifts. That's about what it's going 0:16:24.720 --> 0:16:28.240 to cost. It's about five point seven per cent in 0:16:28.320 --> 0:16:32.960 terms of an increase relative to two thousand and nineteen levels. Um. 0:16:32.960 --> 0:16:38.720 We're comparing versus nineteen because such an unprecedented year in twenty, 0:16:38.960 --> 0:16:41.960 we actually had to remove a number of big components 0:16:41.960 --> 0:16:44.480 of the index, and so we thought a better comparison 0:16:45.080 --> 0:16:48.600 was really to compare versus two thousand and nineteen. If 0:16:48.640 --> 0:16:51.080 you really want to make an impression though out there, 0:16:51.480 --> 0:16:54.440 um and by all three hundred and sixty four gifts, 0:16:54.480 --> 0:16:56.960 that's repeating all the verses of the song, you're really 0:16:56.960 --> 0:16:58.720 gonna have to show out a lot. It's a little 0:16:58.720 --> 0:17:01.920 over a hundred and seventy nine thousand dollars this year. Alright, 0:17:02.000 --> 0:17:04.960 so what we've got inflation at this point already at 0:17:04.960 --> 0:17:07.240 a thirty year high in the US, could approach seven 0:17:07.280 --> 0:17:11.520 percent soon. That's based on a Bloomberg story. So we're 0:17:11.600 --> 0:17:14.080 just a little bit below inflation right in terms of 0:17:14.119 --> 0:17:19.439 the increase from a little bit below, but pretty darn close. 0:17:19.640 --> 0:17:23.199 I think it's a very special basket of goods and services. 0:17:23.280 --> 0:17:27.480 So sometimes we can glean insights relative to what's happening 0:17:27.520 --> 0:17:30.080 in the broader economy, but economy, but this is a 0:17:30.080 --> 0:17:34.000 pretty unique basket. So not surprised at all to see 0:17:34.080 --> 0:17:36.719 the prices up, but um, it is a little bit 0:17:36.760 --> 0:17:39.159 more nuanced than what we're seeing in the broader economy. Well, 0:17:39.200 --> 0:17:41.200 here's what's so interesting, because you do have six gets 0:17:41.240 --> 0:17:44.359 of laying uh, Carol's like trying to keep a straight 0:17:44.400 --> 0:17:46.240 face and not laugh right into the microphone as I'm 0:17:46.240 --> 0:17:48.800 saying that and not singing it. But that's higher this 0:17:48.880 --> 0:17:52.120 year by fifty seven point one percent versus last year. 0:17:52.480 --> 0:17:55.320 But then it's it's really interesting because you have things 0:17:55.359 --> 0:17:59.520 like what is it nine ladies dancing? Uh, the price 0:17:59.560 --> 0:18:02.119 remaining the same, and the point that you're trying to 0:18:02.200 --> 0:18:05.959 make is that live performances where we're out of Christmas 0:18:06.000 --> 0:18:10.800 Price index because because of because of the pandemic, but 0:18:11.520 --> 0:18:15.480 the price hasn't actually changed. Twenty nine. Is that suppliers 0:18:15.480 --> 0:18:19.120 at demand when it comes to live performances, Yeah, there's 0:18:19.119 --> 0:18:20.920 a there's a number of things going in there. So 0:18:21.160 --> 0:18:24.000 last year we had to take this unprecedented step of 0:18:24.080 --> 0:18:27.840 taking all of the live performances out of the index, 0:18:27.840 --> 0:18:31.080 and so the index fell fifty nine per cent. And 0:18:31.119 --> 0:18:34.480 so this year, thankfully, with the progress around the reopening 0:18:34.560 --> 0:18:37.480 bring live performances back, we were able to incorporate them 0:18:37.480 --> 0:18:40.320 into the index. I think a number of you know, 0:18:40.400 --> 0:18:44.240 theater companies and dance companies, while certainly wanting to make 0:18:44.320 --> 0:18:47.680 up for lost time, also don't want to push their 0:18:47.680 --> 0:18:51.320 audiences away by jacking prices up really significantly. And so 0:18:51.600 --> 0:18:53.359 it is a bit of a fine balance and it 0:18:53.480 --> 0:18:55.760 is a little bit nuanced here. And so while the 0:18:55.840 --> 0:18:59.160 ladies dancing didn't move all that much in terms of pricing, 0:18:59.200 --> 0:19:01.800 we did see some movement in terms of the lords 0:19:01.840 --> 0:19:04.280 and in terms of the pipers and the drummers, and 0:19:04.280 --> 0:19:06.360 so again you really have to look under the hood 0:19:06.440 --> 0:19:10.240 to see what each variable is doing. What's the biggest one? 0:19:10.320 --> 0:19:14.360 Is it the geese laying? The biggest move is actually 0:19:14.400 --> 0:19:16.480 the sixth piece a lane. But I would say the 0:19:16.640 --> 0:19:19.800 largest increases by far really what we consider to be 0:19:19.840 --> 0:19:24.560 the exotic pet category. Oh that is well, I'm just 0:19:24.600 --> 0:19:27.680 gonna tell you that is my favorite thing said all year. 0:19:27.760 --> 0:19:32.480 But go ahead, Well, I'm glad to be holding that 0:19:32.600 --> 0:19:35.480 award there for you. Really, when it comes down to it, 0:19:35.520 --> 0:19:38.359 at least when it comes to the birds, we're seeing 0:19:39.200 --> 0:19:44.040 higher food prices, certainly higher labor and wage related crisis. 0:19:44.320 --> 0:19:47.800 Those both apply more broadly across the economy, and so 0:19:48.119 --> 0:19:52.119 that is driving up the increased costs of raising the birds. 0:19:52.119 --> 0:19:54.320 But I would also say, so that's that's the supply 0:19:54.440 --> 0:19:57.200 side thing. But on the demand side, we're actually seeing 0:19:57.200 --> 0:20:02.280 pretty significant demand. They're accelerating t and continuing around backyard farming, 0:20:02.359 --> 0:20:05.439 believe it or not, an even farm to table in 0:20:05.480 --> 0:20:08.200 the bird category. They're really getting it from both sides. 0:20:08.359 --> 0:20:10.439 That was Amanda Gotty. She's the c i O of 0:20:10.480 --> 0:20:13.360 P and C Asset Management Group. You're listening to Bloomberg 0:20:13.400 --> 0:20:16.320 Business Week coming up next. The fallout from what's been 0:20:16.359 --> 0:20:20.159 deemed the Great resignation. We're losing workers faster than we 0:20:20.200 --> 0:20:23.359 can hire them. This is younger generations are rethinking the 0:20:23.400 --> 0:20:26.040 pursuit of wealth. This does feel like a see change 0:20:26.040 --> 0:20:28.480 when it comes to the labor market. We're gonna break 0:20:28.480 --> 0:20:30.960 down the state of America's labor force. Also talk about 0:20:30.960 --> 0:20:33.720 where to find our next generation of innovators and so 0:20:33.800 --> 0:20:35.439 much more. We're gonna do that with Carli Group co 0:20:35.480 --> 0:20:48.399 founder David Rubinstein. This is Bloomberg. You're listening to Bloomberg 0:20:48.400 --> 0:20:52.080 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:20:52.080 --> 0:20:58.720 Stinovik from Bloomberg Radio. There is an unstoppable force that 0:20:58.840 --> 0:21:03.160 exists with human which is humans want to interact with humans, 0:21:03.240 --> 0:21:06.560 and that isn't just for a vacation. Humans needed and 0:21:06.600 --> 0:21:10.000 want to interact on business, to build partnerships, to innovate, 0:21:10.400 --> 0:21:13.959 to build culture, and they want to congregate. All right. 0:21:13.960 --> 0:21:17.120 So that was Hilton Worldwide Presidency of Christmas seta talking 0:21:17.119 --> 0:21:19.800 with our next guest who is not worried about the 0:21:19.840 --> 0:21:22.800 likes of Zoom having a lasting impact on business travel. 0:21:22.920 --> 0:21:25.359 The full chat featured in the latest episode of Peter 0:21:25.400 --> 0:21:29.439 Pierre Conversations this past week on Bloomberg and hosted by conversationalist, 0:21:29.440 --> 0:21:33.240 philanthropist and Carlisle Group co founder and co chair David Rubinstein. 0:21:33.359 --> 0:21:35.240 David joined us with a look at the world's changing 0:21:35.320 --> 0:21:38.600 labor landscape, the prospect of lasting inflation, and his top 0:21:38.600 --> 0:21:42.440 takeaways from his chat with Hilton's Christmas Setta. The hotel 0:21:42.520 --> 0:21:46.280 industry suffered probably as much as any industry, perhaps with 0:21:46.400 --> 0:21:49.080