WEBVTT - Mattel President Sees Cross-Generational Growth 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.640 plus technology, politics, economics, all furnishing the power of Business 0:00:13.680 --> 0:00:17.159 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.440 --> 0:00:27.880 Eastern Time on the Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:32.240 YouTube search Bloomberg Clovel News than keeping a watch on 0:00:32.600 --> 0:00:35.280 Mattel shares, by the way, or up about since a 0:00:35.280 --> 0:00:38.120 recent low last October, They're up six percent year to date. 0:00:38.479 --> 0:00:40.920 We've often checked in with the company CEO, and we've 0:00:40.920 --> 0:00:43.200 got another key member of the c suite. Our next guest, 0:00:43.400 --> 0:00:45.360 who we last caught up with about a year ago. 0:00:46.080 --> 0:00:48.000 Great to have back with us at the president CEO 0:00:48.040 --> 0:00:50.720 of Mattel, Richard Dixon. He's here in our Bloomberg Interactive 0:00:50.720 --> 0:00:53.159 Broker studio. How are you. I'm well, Thank you for 0:00:53.200 --> 0:00:55.000 having me. It's good to see in person. And be 0:00:55.080 --> 0:00:57.600 here with everybody in person. It feels like it feels 0:00:57.600 --> 0:00:59.760 like a little bit more normal. It's definitely more normal, 0:00:59.840 --> 0:01:01.800 but out of out but the world not so normal 0:01:02.440 --> 0:01:04.759 for sure. Well, it's a new normal because it's changing 0:01:04.800 --> 0:01:07.240 every every every day. So talk to us about this 0:01:07.319 --> 0:01:09.960 new normal, Like, what is it in terms of running 0:01:09.959 --> 0:01:11.920 a company in this environment where things feel like they 0:01:12.000 --> 0:01:14.399 keep coming at us from all different angles. And maybe 0:01:14.440 --> 0:01:16.560 just as we start to feel like supply chains so 0:01:16.560 --> 0:01:19.720 important to you guys start to ease, you know, then 0:01:19.760 --> 0:01:23.160 they get kind of upended again. So what's this like? Well, look, 0:01:23.240 --> 0:01:27.280 I think we're all dealing with lots of changes, both cultural, 0:01:27.520 --> 0:01:30.480 systemic political. You know, we're living in a day and 0:01:30.520 --> 0:01:33.679 age where nothing is the same. There is a degree 0:01:33.720 --> 0:01:36.600 of excitement around it as well. When you're running a company, 0:01:36.720 --> 0:01:40.280 the pivots, the flexibility, the degree of speed and which 0:01:40.280 --> 0:01:43.000 we need to move and make decisions, Particularly for a 0:01:43.000 --> 0:01:46.560 company like Mattel, which is this storied, legendary toy company. 0:01:46.640 --> 0:01:50.920 We've got, you know, an unbelievable portfolio of legendary brands that, 0:01:51.240 --> 0:01:53.680 as we look at them today, are probably one of 0:01:53.680 --> 0:01:57.680 the most you know, pop culture relevant conversations that are 0:01:57.680 --> 0:02:00.480 happening in the world, particularly in toys, but as we 0:02:00.520 --> 0:02:04.360 extend our brand into entertainment and content digital gaming, it's 0:02:04.360 --> 0:02:07.800 been a really exciting time for these storied brands to 0:02:08.000 --> 0:02:10.760 become part of the pop culture conversation. And f t 0:02:11.080 --> 0:02:13.480 s and f t s are another part of our dynamically, 0:02:13.560 --> 0:02:16.639 you know, growing business and and most importantly, I think 0:02:16.680 --> 0:02:19.320 as you as you think about it today, purpose really 0:02:19.320 --> 0:02:21.400 does matter. You know, you hear a lot about that. 0:02:21.480 --> 0:02:23.320 In fact, that walked into the office of today and 0:02:23.320 --> 0:02:26.200 you have a big, you know, display of the purpose 0:02:26.240 --> 0:02:29.040 of Bloomberg. And I think in terms of toys and 0:02:29.080 --> 0:02:34.280 what they represent people's lives, um unlocky imaginations, cognitive, social 0:02:34.280 --> 0:02:37.920 emotional development, creating relationships with parents through toys. It's a 0:02:37.960 --> 0:02:40.640 really important part of development that we feel a great 0:02:40.639 --> 0:02:43.360 degree of responsibility for it. This time, we've gotten to 0:02:43.360 --> 0:02:45.440 talk a lot with the non crisis CEO of Mantel 0:02:45.960 --> 0:02:49.160 over the last year or so eighteen months to understand 0:02:49.240 --> 0:02:51.160 the changes that you guys have had to make when 0:02:51.200 --> 0:02:53.520 it comes to supply chain and making sure that you 0:02:54.080 --> 0:02:57.400 are able to deliver on those experiences and on those 0:02:57.400 --> 0:03:01.680 toys throughout the year. I know that you're doubling employment 0:03:01.720 --> 0:03:03.920 in Mexico right now, and I'm wondering if if you 0:03:04.040 --> 0:03:08.920 have start, if you've actually opened the plant there. If 0:03:09.040 --> 0:03:12.600 you have, m are considering making other moves to Mexico 0:03:12.639 --> 0:03:16.320 to help e supply chain challenges right now, So you know, 0:03:16.400 --> 0:03:18.320 it's it's a great question. And I think part of 0:03:18.360 --> 0:03:21.040 the strong performance of our supply chain this year is 0:03:21.080 --> 0:03:25.440 attributable to our scale, our expertise, and our flexible model. 0:03:25.760 --> 0:03:29.160 We've spent the last several years through a capital light 0:03:29.280 --> 0:03:34.360 program consolidating our footprint geographically. We've re oriented much of 0:03:34.360 --> 0:03:37.800 our manufacturing footprint to be more flexible, and as you mentioned, 0:03:38.200 --> 0:03:42.440 recently expanded our facilities in Mexico, um and for a 0:03:42.480 --> 0:03:46.560 variety of reasons cost reduction, consolidation. Obviously, close to shore 0:03:46.960 --> 0:03:50.640 helps with shipping and speed to market um and in general, 0:03:50.680 --> 0:03:52.960 I think the supply chain for MATEL has been a 0:03:52.960 --> 0:03:55.960 competitive advantage. You know, while the world is dealing with 0:03:56.000 --> 0:03:59.920 incredible challenges both in supply chain issues inflation issues, I 0:04:00.040 --> 0:04:02.520 think the performance that we've had in our supply chain 0:04:02.560 --> 0:04:05.960 has really proven that it's a competitive advantage. From attel, 0:04:06.080 --> 0:04:08.640 you guys were doing this prepad nemic, weren't you. We've 0:04:08.680 --> 0:04:10.680 been working on this for several years. It's part of 0:04:10.680 --> 0:04:13.000 a capital light model, that's correct. How much of though 0:04:13.040 --> 0:04:15.280 the tensions the geopolitical this is one of the big 0:04:15.320 --> 0:04:18.400 macro rethinks that we're having right now about we're seeing 0:04:18.440 --> 0:04:21.160 it certainly the energy market, I mean energy oil obviously 0:04:21.240 --> 0:04:24.200 very important to plastics as we know. But how are 0:04:24.320 --> 0:04:27.119 you rethinking about kind of where you're getting things because 0:04:27.120 --> 0:04:30.360 you're like, you know what, geo politically, we can't say 0:04:30.400 --> 0:04:33.200 globalization is going to cure all that helps us? How 0:04:33.279 --> 0:04:35.080 much of that is also at play in this that 0:04:35.200 --> 0:04:37.360 might make you do even more aggressive moves in terms 0:04:37.400 --> 0:04:40.640 of protecting that supply chain. It's a really important part 0:04:40.640 --> 0:04:42.920 of our strategic roadmap, and I think as you've seen 0:04:42.960 --> 0:04:45.640 over the last several years, by example, you know, through 0:04:45.680 --> 0:04:51.400 consolidation as well as geographically expanding our footprint, UM offsetting 0:04:51.440 --> 0:04:54.720 if you will, any reliability on any particular market whatsoever, 0:04:54.839 --> 0:04:58.280 and in fact, m opening up various different plants in 0:04:58.320 --> 0:05:01.880 different countries for the same brand and gives us the flexibility, 0:05:01.960 --> 0:05:05.320 the nimbleness that we need UM to accommodate and to 0:05:05.360 --> 0:05:09.000 always keep the business moving despite political issues that may 0:05:09.000 --> 0:05:13.000 be arising in local markets. It's proven incredibly effective, particularly 0:05:13.040 --> 0:05:16.800 our performance in one We're in a quiet period currently, 0:05:16.800 --> 0:05:19.600 but you can see the performance in large part due 0:05:19.640 --> 0:05:24.000 to our our ability to effectively get product to consumers 0:05:24.000 --> 0:05:27.159 and retailers on time. So if there's a problem somewhere, 0:05:27.160 --> 0:05:29.480 it's very easy to say, Okay, plant number A, you've 0:05:29.480 --> 0:05:32.880 got problems plant number eight, We're just gonna amp it up. Yeah. Well, 0:05:32.920 --> 0:05:35.640 I wouldn't say it's that easy. Uh, but certainly it's 0:05:35.680 --> 0:05:44.640 not easy. But we have incredible expertise that have been 0:05:44.680 --> 0:05:46.599 with a company of a very long time and added 0:05:46.640 --> 0:05:50.440 new talent as well, but strategically made a concerted effort 0:05:50.480 --> 0:05:53.080 over the last several years. So you know, we didn't 0:05:53.120 --> 0:05:56.080 have to react in real time because we were already 0:05:56.120 --> 0:05:59.880 moving strategically. But did you say when that happened, You're like, man, 0:06:00.000 --> 0:06:01.719 we're waiting ahead of the game, because we would have 0:06:01.760 --> 0:06:04.719 had to do some shift. We we certainly felt confident 0:06:05.440 --> 0:06:08.760 in our strategy and in the plans that we had 0:06:08.800 --> 0:06:13.000 and executing bar none within the industry besting class, and 0:06:13.040 --> 0:06:15.200 I think that continues to be a strength of Mattel. 0:06:15.240 --> 0:06:17.800 And we're building upon strength. Yeah, Richard, what about when 0:06:17.800 --> 0:06:20.440 it comes to rising commodities costs? This is something that 0:06:20.480 --> 0:06:23.400 affects every company, whether you know, not just companies that 0:06:23.520 --> 0:06:26.719 you know our airlines or oil companies. But the price 0:06:26.800 --> 0:06:29.480 of of h W T I is up more than 0:06:29.600 --> 0:06:33.039 thirty five pcent just this year. Tell uses a lot 0:06:33.160 --> 0:06:36.680 of plastic you have to ship stuff. Uh. How does 0:06:36.680 --> 0:06:40.680 that hit margins? Well? Look, uh, you know, cost factors 0:06:40.680 --> 0:06:43.159 have been you know, a real issue in our business 0:06:43.200 --> 0:06:44.960 and in every business for that matter. We've had a 0:06:44.960 --> 0:06:48.320 couple of years of significant inflation and we do this 0:06:48.400 --> 0:06:50.440 year is different. This year is to hate to tell 0:06:50.480 --> 0:06:53.120 you there's a lot of plastic and toys there are 0:06:53.160 --> 0:06:55.880 working on that too. We've got a lot of sustainability 0:06:55.960 --> 0:06:58.880 efforts in place. UM. But it looked through a combination 0:06:59.160 --> 0:07:03.159 of pricing UH and cost savings. We expect to exceed 0:07:03.200 --> 0:07:07.320 inflation over time UM and to higher prices or better 0:07:07.600 --> 0:07:11.400 manufacturing or lower There's not a silver bullet, right, So, 0:07:11.440 --> 0:07:14.720 I mean there there are pricing adjustments and strategies that 0:07:14.760 --> 0:07:17.640 will take place across our portfolio, and there's also cost 0:07:17.680 --> 0:07:21.480 savings as well that we've been also sharing and enjoying 0:07:21.680 --> 0:07:24.920 as part of our structural simplification plans, the two combined, 0:07:24.960 --> 0:07:30.120 if you will mitigate inflation to some degree and contribute 0:07:30.120 --> 0:07:34.920 to the margin expansion that we have UH shared over time. UM. Granted, 0:07:34.960 --> 0:07:37.640 we've we've spent a lot of time talking about the 0:07:37.640 --> 0:07:40.600 impact of inflation and supply chain, but as you can 0:07:40.640 --> 0:07:43.880 see from our results and from the guidance that we've given, 0:07:44.080 --> 0:07:46.360 particularly in a quiet period right now, but from our 0:07:46.600 --> 0:07:54.320 two thousand on the side, again, as we take as 0:07:54.360 --> 0:07:57.160 we take strategic price increases and look for cost savings. 0:07:57.240 --> 0:07:59.520 The most important part of our consumer proposition is to 0:07:59.520 --> 0:08:02.240 make sure our consumers really do love and get the 0:08:02.360 --> 0:08:05.080 value and innovation that our toys provide. But you're confident 0:08:05.120 --> 0:08:07.840 that the consumer can handle price increases, that the consumer 0:08:08.160 --> 0:08:10.119 is willing to pay, that you have that pricing power 0:08:10.160 --> 0:08:12.840 at Mattel to raise those prices. I believe that our 0:08:12.880 --> 0:08:15.520 brands resonate with consumers around the world, and I think 0:08:15.560 --> 0:08:18.400 it's going to be UM the innovation and the brand 0:08:18.400 --> 0:08:22.520 reputation and the quality that ultimately consumers judge UH and 0:08:22.520 --> 0:08:25.200 and jury UH in the in the toy industry, and 0:08:25.240 --> 0:08:27.920 certainly our brands stand the test of time. I also 0:08:27.960 --> 0:08:30.800 think there's a reflection back on nostalgic brands. We have 0:08:30.880 --> 0:08:33.560 brands that mom, dad grew up with and are enjoying 0:08:33.600 --> 0:08:36.280 that relationship with their Alright, So I brought I brought 0:08:36.320 --> 0:08:40.400 a little that I actually have had on my desk. 0:08:40.400 --> 0:08:43.600 It's probably from one of either ian On or somebody 0:08:43.679 --> 0:08:46.719 coming coming to visit. Um grew up with Barbie, loved it, 0:08:46.800 --> 0:08:48.720 loved it. We're talking with Richard Dixon, he's president and 0:08:48.760 --> 0:08:52.439 chief operating off a certain mantel here with Tim and myself. Um, 0:08:52.480 --> 0:08:56.040 these are iconic brands. UM, and my kids played with him. 0:08:56.040 --> 0:08:58.760 Are my daughter, I should say my one kid? Um? 0:08:59.000 --> 0:09:02.160 And I certainly did. Where is the big growth? Because 0:09:02.200 --> 0:09:05.199 we talked about you guys, I've talked with the folks 0:09:05.200 --> 0:09:07.280 at w W E. I mean, you have these partnerships, 0:09:07.280 --> 0:09:10.079 these alliances. You have older collectibles n F T s. 0:09:10.120 --> 0:09:13.600 I assume play into the older collector of Mattel Brands, 0:09:14.160 --> 0:09:17.320 content creation, Barbie movie, Like, when is that happening? Where's 0:09:17.360 --> 0:09:19.400 the real growth going forward? And answer it all in 0:09:19.400 --> 0:09:22.199 two minutes? Well, I think you have to stay, take 0:09:22.240 --> 0:09:24.920 a step back and look at our our strategic roadmap, 0:09:25.200 --> 0:09:27.600 which has really been to be an i P driven 0:09:28.160 --> 0:09:31.440 high performing toy companies, very Disney esque. Well, it's it's 0:09:31.480 --> 0:09:34.120 it's very Mattel. You know. We we have a portfolio 0:09:34.200 --> 0:09:38.160 of incredibly strong i P many of which as you mentioned, 0:09:38.480 --> 0:09:40.599 and there are a lot of brands within our portfolio 0:09:40.720 --> 0:09:42.800 that have you know, stood the test of time and 0:09:42.840 --> 0:09:45.280 could be revitalized. Masters of the Universe is a great 0:09:45.280 --> 0:09:48.640 example of that. A huge property in the eighties, ran 0:09:48.760 --> 0:09:51.760 dormant for decades and we brought it back. No, I 0:09:51.800 --> 0:09:55.079 didn't play with might might have missed my generation, I 0:09:55.080 --> 0:09:58.800 don't know, But anyway, it's back and it's it's arguably 0:09:58.840 --> 0:10:01.680 better than ever. Um. But I think that the growth 0:10:01.720 --> 0:10:04.760 strategy of Mattel is really to continue to expand our 0:10:04.800 --> 0:10:07.640 i P into verticals, digital gaming content and f t 0:10:07.800 --> 0:10:09.800 s as you mentioned. But is it the adult collector 0:10:09.840 --> 0:10:12.320 that's the real like, where where's the growth come from? 0:10:12.440 --> 0:10:15.000 It's both. It's it's literally across the board. If you 0:10:15.040 --> 0:10:17.400 look at our performance, every category that we're in and 0:10:17.400 --> 0:10:21.040 we're in seven categories, all grew. We grew market share 0:10:21.080 --> 0:10:24.360 across the world. Our biggest most important franchise brands are 0:10:24.360 --> 0:10:27.760 all in growth mode. Barbie Fisher price, Hot Wheels, American Girl, Thomas, 0:10:27.840 --> 0:10:30.640 the Tank Engine, our games portfolio, you know, single largest 0:10:30.640 --> 0:10:32.520 card game in the world. You know, we've done a 0:10:32.600 --> 0:10:34.800 lot of work. We vital in our brands with the 0:10:34.800 --> 0:10:37.520 Mattel Playbook that we take a lot of pride and innovation, 0:10:37.679 --> 0:10:40.800 cultural relevance and executional excellence have been the forefront of 0:10:40.840 --> 0:10:43.400 making our business successful. When you're thinking about communicating to 0:10:43.520 --> 0:10:45.880 potential customers, the marketing of this, how big of a 0:10:45.880 --> 0:10:48.240 play is nostalgia? I mean, I think about my dad 0:10:48.320 --> 0:10:50.600 is probably more into Hot Wheels than my three year 0:10:50.600 --> 0:10:54.000 old at this point, but he's yeah, he's been in 0:10:53.960 --> 0:10:57.240 a Hot Wheels his whole life. So are you trying 0:10:57.280 --> 0:10:58.719 to reach him? Are you trying to reach my three 0:10:58.760 --> 0:11:00.440 year old? I think, first of all, that's that's a 0:11:00.480 --> 0:11:03.600 great example of what we believe our growth strategy offers 0:11:03.679 --> 0:11:06.520 us as a multigenerational appeal. You know, we obviously have 0:11:06.559 --> 0:11:08.960 a core based business with kids three to eight and 0:11:09.080 --> 0:11:12.040 some younger, some older, but as the brand of sells 0:11:12.160 --> 0:11:15.520 Hot Wheels, Barbie and others have have have affinity and 0:11:15.600 --> 0:11:19.680 emotional connection. We have a collector audience that's growing rapidly 0:11:19.800 --> 0:11:22.480 and becomes an incremental part of our toy business. So again, 0:11:22.480 --> 0:11:26.360 when you look at our three trajectories, growth in our 0:11:26.400 --> 0:11:29.480 core franchises with our core audience, and then incrementality with 0:11:29.559 --> 0:11:31.960 adults and collectors, that are going to be really exciting 0:11:31.960 --> 0:11:34.600 going forward. Probably movie production start this month. It started. 0:11:34.640 --> 0:11:38.480 We're in second week in production. It is unbelievable. We 0:11:38.559 --> 0:11:40.920 might want to, I might want to. I can't disclose 0:11:40.960 --> 0:11:42.920 all the information, by the way counter discloses. Being on 0:11:42.960 --> 0:11:45.280 set was absolutely magical, and it's going to be a 0:11:45.360 --> 0:11:50.160 pop culture conversation man the actors. Richard Dixon, thank you 0:11:50.200 --> 0:11:52.520 so much. Thank you any time with both of you. 0:11:52.640 --> 0:11:54.280 Great to have you here. Richard Dixon, he's the president, 0:11:54.400 --> 0:11:57.680 chief operating officer at Mattel here in studio. This is 0:11:57.720 --> 0:12:01.320 Bloomberg Business Week with Carol mass Her and Bloomberg Quick 0:12:01.360 --> 0:12:05.400 Takes Tim Stinovic on Bloomberg Radio. So Florida wants to 0:12:05.400 --> 0:12:07.640 be known for more than a place to have some 0:12:07.679 --> 0:12:09.600 fun in the sun. They're already attracting. We know the 0:12:09.600 --> 0:12:12.080 financial types. We talked about that a lot, and just 0:12:12.200 --> 0:12:17.400 recently we talked about the surging retail sale industry. Retail 0:12:17.440 --> 0:12:20.599 sales or the retail industry in in Palm Beach, and 0:12:20.640 --> 0:12:25.000 then of course there's crypto. Crypto uh huge when it 0:12:25.040 --> 0:12:27.040 comes to Miami, or at least that's what Miami Mayor 0:12:27.120 --> 0:12:30.120 Francis Suarez is hoping to make it. He's trying to 0:12:30.240 --> 0:12:33.640 do what Finance was in New York and what Web 0:12:33.679 --> 0:12:36.720 two was in San Francisco and Silicon Valley happened for 0:12:36.760 --> 0:12:40.360 Web three in Miami. Mr lane A Golfa Pulu is 0:12:40.400 --> 0:12:42.559 personal finance reporter for Bloomberg new She's with us in 0:12:42.559 --> 0:12:45.080 the Bloomberg in Ractive Broker studio, but she spent some 0:12:45.240 --> 0:12:48.080 serious time in Miami talking to the mayor and talking 0:12:48.120 --> 0:12:52.280 to others, uh, including people who are behind crypto firms there, 0:12:52.800 --> 0:12:56.000 missy Uh. Can they pull it off? Can Miami pull 0:12:56.000 --> 0:12:58.480 it off? Can Miami become the center of crypto in 0:12:58.480 --> 0:13:02.320 the US. That's the million dollar question? Um. You know, 0:13:02.559 --> 0:13:04.600 I think that as someone who lives in New York. 0:13:04.640 --> 0:13:07.120 When I first visited Miami a couple of weeks ago, 0:13:07.559 --> 0:13:10.040 I wanted to see what this hype is about. You know, 0:13:10.160 --> 0:13:13.080 everyone talks about crypto in Miami, but is it there? 0:13:13.120 --> 0:13:15.960 Can you feel it? And the truth is you definitely can. 0:13:16.120 --> 0:13:18.440 I mean you walk around the street and you see 0:13:18.440 --> 0:13:24.240 pain bitcoin signs everywhere. You're seeing restaurants, nightclubs starting to 0:13:24.280 --> 0:13:27.040 accept it as a form of payment. You're seeing n 0:13:27.080 --> 0:13:30.880 F team murals pop up everywhere around the city. And 0:13:31.040 --> 0:13:33.680 it's sort of like sliding into real estate as well. 0:13:33.720 --> 0:13:36.040 So if you want to put you know, money down 0:13:36.080 --> 0:13:38.160 for a down payment for an apartment, you can do 0:13:38.240 --> 0:13:41.439 so with crypto in Miami. And so the hype is 0:13:41.720 --> 0:13:44.360 the regular people or is it the you know, wealthy 0:13:44.400 --> 0:13:47.439 people who can throw crypto around. I don't think it's 0:13:47.480 --> 0:13:50.640 the regular people. I do think it's the piece people. 0:13:50.720 --> 0:13:54.760 I'm a regular person too. I think it's you know 0:13:54.760 --> 0:13:57.319 what I mean, Like definitely, I think it's the people 0:13:57.360 --> 0:14:01.240 that moved down there during COVID and have been able 0:14:01.280 --> 0:14:04.320 to sort of form a community that really sort of 0:14:04.880 --> 0:14:08.840 embrace this crypto. But it is permeating throughout different aspects 0:14:08.840 --> 0:14:10.360 of life in a way that you don't see it 0:14:10.400 --> 0:14:13.000 in any other city. But is this going to be 0:14:13.080 --> 0:14:15.440 long lasting? Right? Because this is sort of coming off 0:14:15.480 --> 0:14:17.679 of the back of what happened during COVID. A lot 0:14:17.679 --> 0:14:20.840 of people moved down there, A lot of rich people 0:14:20.920 --> 0:14:24.120 moved down there. So investors are plentiful in Miami right now. 0:14:24.160 --> 0:14:27.720 But will this last for a long time? We don't know. Okay, 0:14:27.760 --> 0:14:30.240 this is Bloomberg. So we like the data. We have 0:14:30.320 --> 0:14:33.320 the numbers. You got the numbers from pitchbook. This chart 0:14:33.360 --> 0:14:35.320 in your story, this INTERACTI chart to encourage evility to 0:14:35.360 --> 0:14:40.200 read this online because it is interactive. Uh, missy, San 0:14:40.240 --> 0:14:43.120 Francisco and New York just blow Miami out of the 0:14:43.120 --> 0:14:45.440 water when it comes to deal value, whether we're talking 0:14:47.760 --> 0:14:49.880 one or so far this year. Yeah, I mean Miami 0:14:49.920 --> 0:14:52.840 crypto Starbucks have startups excuse me, have attracted a sliver 0:14:53.000 --> 0:14:56.479 of the money that San Francisco and New York have 0:14:56.480 --> 0:14:58.960 have attracted. We have them here. This is for crypto 0:14:59.040 --> 0:15:01.400 to like. So this is of Victor crypto exactly, but 0:15:01.440 --> 0:15:05.560 I mean throughout like the whole industry, and the difference 0:15:05.640 --> 0:15:07.960 is way bigger. So this is wait, this is okay, 0:15:08.040 --> 0:15:12.120 This is tracking money going into crypto startups in Miami, 0:15:12.200 --> 0:15:15.000 and that number is compared to San Francisco, New York exactly. 0:15:15.000 --> 0:15:18.280 In Miami, that number is eighty eight million. In San Francisco, 0:15:18.360 --> 0:15:22.480 it's twelve point seven billion. In New York it's seven billies. 0:15:22.760 --> 0:15:25.440 The numbers don't lie. The numbers don't lie. But look 0:15:25.480 --> 0:15:28.120 at the year of her year increase that Miami stawped 0:15:28.280 --> 0:15:31.080 as I do, not as I say, like, I mean, 0:15:31.120 --> 0:15:33.880 this is like really what's happening right exactly? But again 0:15:33.960 --> 0:15:38.400 the year of her year increase that Miami saw between one, 0:15:38.440 --> 0:15:41.040 I mean, it's crazy. They went from six million into 0:15:41.080 --> 0:15:45.760 crypto startups startups to seven hundred million into crypto start 0:15:45.800 --> 0:15:48.120 ups within a year, right, And so you see the 0:15:48.160 --> 0:15:51.280 growth there. It's gonna take time to reach the levels 0:15:51.320 --> 0:15:53.280 that New York and San Francisco are in, but we're 0:15:53.280 --> 0:15:56.360 seeing this crazy growth. So when we think about crypto, 0:15:56.440 --> 0:15:58.520 like I do wonder about like how you create a 0:15:58.560 --> 0:16:01.880 crypto infrastructure world, right, I mean, are there other cities 0:16:01.880 --> 0:16:04.720 that are making moves to actually kind of provide an 0:16:04.800 --> 0:16:07.480 environment where it's easy and fluid to kind of move 0:16:07.560 --> 0:16:10.800 within crypto? Definitely, I mean New York is one of them. 0:16:10.840 --> 0:16:14.480 We saw Mayor Eric Adams go and I'm not doing 0:16:14.480 --> 0:16:18.320 anything in crypto. Yeah, it's definitely not seeing it's definitely 0:16:18.360 --> 0:16:20.720 not happening in the way it's happening in Miami. I'll 0:16:20.760 --> 0:16:23.240 put it that way. I think it that sort of 0:16:24.320 --> 0:16:28.200 organizational sort of um campaign that the mayor brought forth 0:16:28.280 --> 0:16:31.240 really attractive people, and we talked still getting paid in crypto? 0:16:31.800 --> 0:16:34.440 I don't think so. Um. You know. We spoke to 0:16:34.440 --> 0:16:36.880 the blockchain dot Com CEO who moved his office down 0:16:36.920 --> 0:16:38.800 to Miami, and he told us that he was actually 0:16:38.880 --> 0:16:42.640 negotiating with several states when COVID hit to decide where 0:16:42.680 --> 0:16:45.600 he would move his headquarters to. And when I asked him, 0:16:45.600 --> 0:16:48.640 you know why Miami, he said that the vision the 0:16:48.680 --> 0:16:52.000 mayor had really just convinced him to do it because 0:16:52.040 --> 0:16:54.280 for a company like blockchain dot Com, think about how 0:16:54.360 --> 0:16:57.680 much easier it is to actually retain talent and attract 0:16:57.800 --> 0:17:00.840 talent in a city where crypto is something that everyone 0:17:00.920 --> 0:17:02.880 is sort of on board with. So for him, he 0:17:02.960 --> 0:17:05.199 was like, I can hire people here that I may 0:17:05.240 --> 0:17:08.640 not necessarily be able to hire other cities, thinking about 0:17:08.640 --> 0:17:11.040 you could be part of that lab in this experiment exactly. 0:17:11.400 --> 0:17:14.440 And he had the mayor come and speak to you know, 0:17:14.600 --> 0:17:17.280 on site at his company, to all the workers there, 0:17:17.480 --> 0:17:21.080 and so that kind of interaction between city officials and 0:17:21.119 --> 0:17:24.280 people having like a vision down there is really prevalent 0:17:24.320 --> 0:17:27.639 in Miami. You did also right though, Missy about the 0:17:27.640 --> 0:17:32.920 governor of Florida, and how that in his policies could 0:17:32.960 --> 0:17:35.640 prevent people from wanting to live there and relocating from 0:17:35.640 --> 0:17:38.160 New York or San Francisco. Perhaps, Yeah, it's it's hard 0:17:38.160 --> 0:17:41.720 to separate Miami from the state of Florida, which it's based, 0:17:41.760 --> 0:17:44.440 you know, and politics down there are very controversial for 0:17:44.520 --> 0:17:46.439 a lot of people. Well, what I will say is 0:17:47.080 --> 0:17:49.280 it doesn't seem to matter for all those people that 0:17:49.320 --> 0:17:52.199 decided to move down to Miami during COVID, And I 0:17:52.240 --> 0:17:54.760 think that tells us something. I mean, Miami in and 0:17:54.800 --> 0:17:57.520 of itself, I think has to really separated itself from 0:17:57.520 --> 0:17:59.639 the rest of the state. And if all these people 0:17:59.640 --> 0:18:02.720 are willing to move down there because nothing was shut 0:18:02.760 --> 0:18:05.760 down and because they had freedoms to do whatever they 0:18:05.760 --> 0:18:08.399 wanted in their day to day life during COVID, you know, 0:18:08.520 --> 0:18:11.080 it doesn't necessarily point to the fact that this is 0:18:11.119 --> 0:18:13.600 going to be a problem, at least for now. But 0:18:13.640 --> 0:18:15.560 the state has other issues as well, right. I think 0:18:15.600 --> 0:18:18.080 we also speak in the story about how it doesn't 0:18:18.119 --> 0:18:22.680 have top tier if I educational institutions like San Francisco 0:18:22.680 --> 0:18:24.320 and New York, and so I think that might be 0:18:24.359 --> 0:18:26.960 something that we should keep our eyes onto it's important. 0:18:27.000 --> 0:18:29.440 Mister Laney got a poolly personal finance reporter for Bloomberg 0:18:29.440 --> 0:18:31.520 News with us in the Bloomberg INTERACTI Broker Studio. Check 0:18:31.520 --> 0:18:33.840 out her story on Bloomberg dot com. You're listening to 0:18:33.960 --> 0:18:37.920 Bloomberg business Week with Carol Messer and Bloomberg Quick Takes 0:18:38.000 --> 0:18:42.199 Tim Stinovic on Bloomberg Radio in the upcoming issue of 0:18:42.240 --> 0:18:44.240 the magazine, a story that also happens to be among 0:18:44.240 --> 0:18:46.440 her the most read on the Bloomberg Today and Tim, 0:18:46.440 --> 0:18:48.920 it's about how an ultra type job market as employers 0:18:48.920 --> 0:18:52.800 from law of healthcare dropping some of those tough job requirements. Yeah, 0:18:52.800 --> 0:18:55.280 these job requirements are known in the industry as quote 0:18:55.359 --> 0:18:57.520 unquote credential lane. It's not something that I had thought 0:18:57.560 --> 0:18:59.679 a lot about before reading this story, and it's not 0:19:00.040 --> 0:19:03.399 us doctors and lawyers that require this type of credentialing. 0:19:03.960 --> 0:19:07.119 Jordan do is US economics reporter for Bloomberg Economics. J 0:19:07.400 --> 0:19:09.960 Jordan joins us on the phone from Washington, d C. 0:19:10.720 --> 0:19:13.840 Jordan's story is featured in the upcoming issue of Business 0:19:13.840 --> 0:19:16.639 Week magazine. Check it out at the Bloomberg Terminal and 0:19:16.640 --> 0:19:18.960 of course, at Bloomberg dot com. Slash business Week as well. 0:19:19.160 --> 0:19:21.639 Joe Weber is editor at Bloomberg Business Week. He's with 0:19:21.720 --> 0:19:24.959 us in the Bloomberg Interactive Broker Studio Joel. Credential NG 0:19:25.320 --> 0:19:28.280 obviously coming to a head right now because of a 0:19:28.320 --> 0:19:32.120 tight labor market, but it would seem that changes, Uh, 0:19:32.119 --> 0:19:34.560 we're we're kind of happening before the pandemic to or 0:19:34.600 --> 0:19:36.280 sort of on their way to happen, because it's part 0:19:36.320 --> 0:19:40.879 of a broader conversation about access. Do you have credentials 0:19:40.920 --> 0:19:43.920 to ask me such a question? Um, that's a good question. 0:19:43.960 --> 0:19:48.880 I'm unfortunately, unfortunately I'm overqualified. Yeah, that's that's a problem 0:19:50.000 --> 0:19:52.840 that on another day. And boy is that over sorry 0:19:52.840 --> 0:19:57.320 over credential not overqualified? That that that does kind of 0:19:57.320 --> 0:19:59.560 sum it all up though, right, And what the pandemic 0:19:59.600 --> 0:20:02.040 did was allow a lot of people to say, wait 0:20:02.040 --> 0:20:04.600 a second, maybe we can't we don't need all these 0:20:04.800 --> 0:20:09.080 prerequisite things that we've always required it And so some 0:20:09.160 --> 0:20:12.720 of some people basically that that kind of threshold came down. 0:20:13.240 --> 0:20:15.639 And now the question is do you raise the threshold 0:20:15.680 --> 0:20:18.959 again or does it make you just rethink everything? And 0:20:19.359 --> 0:20:23.439 in Jordan, what did you learn in your reporting? Well, 0:20:23.480 --> 0:20:25.800 what I learned. What was interesting for me here is 0:20:25.800 --> 0:20:28.960 is so much of this conversation historically has been about 0:20:29.000 --> 0:20:31.720 workers well, I guess you could say are sort of 0:20:31.800 --> 0:20:34.360 on the lower end of the labor market, or who 0:20:34.359 --> 0:20:36.760