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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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Speaker 1: my co host Matt Miller. Every business day, we bring

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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along

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Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast

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Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and

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Speaker 1: at Bloomberg dot com slash podcast. We are sort of

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Speaker 1: scrambling around here because we have the CEO of Nissan

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Speaker 1: coming in and I wanted to get up in bow

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Speaker 1: because that's what you do um in Japanese business. But

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Speaker 1: I feel underdressed now because it's a Thursday just we're

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Speaker 1: a flannel shirt. But thank you so much for joining us.

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Speaker 1: Pleasure having in. Let me turn on your mic there. UM.

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Speaker 1: We have so many questions and we're so uh excited

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Speaker 1: that you came in. UM. Nissan is a business that's

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Speaker 1: been doing really well uh lately, not only because of

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Speaker 1: the popularity of the cars, um, but also because of

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Speaker 1: the weakness of the yen. I wonder what you plan

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Speaker 1: to do with the extra profits that you're making. It

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Speaker 1: seems like you're in a great position to invest well.

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Speaker 1: First of all, thank you for having me here. It's

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Speaker 1: my pleasure to be in this radio. Uh. You talked

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Speaker 1: about the extent where it has been benefiting financially on

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Speaker 1: our our profit which is true at the short term,

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Speaker 1: but we also need to be aware that our cost

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Speaker 1: in terms of raw material is increasing at the level

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Speaker 1: even higher than the exchange rate gains, so that is

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Speaker 1: kind of making that the situation of the profitability. On

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Speaker 1: top of that, we do have a good performance in

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Speaker 1: our company in terms of about sales mix and how

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Speaker 1: we're making that good product to the customer to give

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Speaker 1: the good value to the customer. That is making up

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Speaker 1: financial outlook which we announced in last month to be

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Speaker 1: a little bit more positive. Beside, we're speaking with Makoto Cheeta,

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Speaker 1: CEO and President of Nissan Motor Corporation. Mr. Cheetah. One

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Speaker 1: of the unique things about your company, about the Nichean

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Speaker 1: Motor Corporation is the relationship with Rena and the ownership

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Speaker 1: cross ownership with renew Can you talk to us about

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Speaker 1: the state of that today and how that may change

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Speaker 1: going forward. Yeah, what we are discussing with our partners

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Speaker 1: how we can make the alliance to the next stage

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Speaker 1: to be more competitive and knowing that the identification is

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Speaker 1: one of the next la for the automotive industry we

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Speaker 1: are facing everywhere in the world and how we can

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Speaker 1: maximize the asset that we built under the Alliance father

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Speaker 1: to be competitive, and that is what we are in

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Speaker 1: discussion with our partner every day. We have a bank

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Speaker 1: of TV screens here and you can see half of

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Speaker 1: them are full of President Biden right now meeting with

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Speaker 1: French President Emmanuel McCrone. One of the things um that

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Speaker 1: they are reportedly going to talk about is the Inflation

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Speaker 1: Reduction Act, which a lot of people in Europe and

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Speaker 1: I imagine um in Japan as well think unfairly benefits

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Speaker 1: US carmakers. What's your take on the Inflation Reduction Act

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Speaker 1: and the credits that seem um to be only for

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Speaker 1: made in US, not only vehicle rolls assembled in US vehicles,

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Speaker 1: but also vehicles with a certain amount of US sourced parts. Well,

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Speaker 1: what I can say at this moment is that, of course,

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Speaker 1: the electification in the US has become more visible done

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Speaker 1: right in the two or three years ago, which is

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Speaker 1: making us more future opportunity. We already have declare ourselves

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Speaker 1: to be farther invest for the electification in the US

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Speaker 1: at the level of the five hundred million dollar and

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Speaker 1: that we are considering additional two hundred fifty million dollar

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Speaker 1: in order to make identified strategy and to be accepted

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Speaker 1: the customer for our value of the Nissan in the future.

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Speaker 1: So this is what we're trying to do. Um I

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Speaker 1: l A. Yes, it's a challenging in the short term,

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Speaker 1: but there could be the opportunity in the future. How

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Speaker 1: we father to press ourselves here in the United States

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Speaker 1: of our presence, Mr. Treat As you probably know as

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Speaker 1: you travel around America that Americans like their pickup trucks

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Speaker 1: and from an electric vehicle perspective, my census, if you

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Speaker 1: don't have an electric pickup truck, you don't have really

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Speaker 1: a market position in the US. Talk to us about

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Speaker 1: niche on and how maybe they think about that part

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Speaker 1: of the market. Yeah, we're looking towards the two thousand

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Speaker 1: thirty to introduce electified vehicle of twenty three models. Out

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Speaker 1: of that fifteen our evs and we have a lot

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Speaker 1: of plan. And then when you talk about the US,

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Speaker 1: as you mentioned that the pickup is very important segment

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Speaker 1: that we have to glow in the future. Yeah, we

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Speaker 1: are looking at further we have a title and we

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Speaker 1: have middle sized pickup as well, and we did like

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Speaker 1: to have our value to be father to recognize by

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Speaker 1: the customer. And when we talk about electified vehicle, we

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Speaker 1: are planning a lot of things here in the US.

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Speaker 1: And one of the things that I did would like

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Speaker 1: to take this occasion to highlight is that we do

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Speaker 1: have our new technology challenging today on the battery called

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Speaker 1: a S S B ALSOLD state battery and this is

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Speaker 1: to be introduced in first in Japan as a propilot

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Speaker 1: plant in two twenty four. Then we were looking for

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Speaker 1: this commercially and this battery specification would allow or enable

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Speaker 1: more frexibility of the size of the car to be electric.

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Speaker 1: So this is what we are challenging as a Nissan

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Speaker 1: as we have been working for the electified vehicle or

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Speaker 1: electric car. As one of the pioneer started was a

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Speaker 1: Leap with a sudden ten and we do have a

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Speaker 1: thirty years over experience of this battery chemistry in our company.

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Speaker 1: I wonder what my favorite car clearly is Godzilla? Right.

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Speaker 1: The g t r um is legendary, you know, said

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Speaker 1: to be um produced by the motor. Only four people

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Speaker 1: are allowed to assemble the motor in Japan. Is that true?

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Speaker 1: What's the what are the plans for Godzilla can? Are

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Speaker 1: you gonna make it into a hybrid? Is there is

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Speaker 1: there a new electric Godzilla coming that I can talk

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Speaker 1: about the future product yet, But what I can say

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Speaker 1: about it is that the how Nistan father to make

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Speaker 1: the eniche people's life. This is our corporate purpose and

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Speaker 1: then Nissan is making fun this sports car like a

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Speaker 1: GDR as you mentioned, and to down to the electric

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Speaker 1: car that we have. I love the Z as well,

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Speaker 1: especially in yellow. It's a great My first car as

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Speaker 1: a Z nice and I do like to have a

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Speaker 1: sports car to be father to deliver to the customer.

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Speaker 1: And we have to think about what kind of the

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Speaker 1: future power train or we have to consider for this

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Speaker 1: kind of sports card as well. Mr Cheated China, talk

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Speaker 1: to us about your position in China. What you think

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Speaker 1: the future China is. That's certainly a big issue here

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Speaker 1: in the United States. Well, China. I think it's still

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Speaker 1: the big market that we are. The media or ems

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Speaker 1: are experimentally doing the business case and it will continue

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Speaker 1: as you see in the scale of the market. But

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Speaker 1: I see the world now it's going to be more

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Speaker 1: on the maybe the right way of saying English. I'm

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Speaker 1: not so sure about fragmented okay especially the elxification. Each

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Speaker 1: country has a different speed and customers acceptance. And what

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Speaker 1: is important for us is how we can design ourselves

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Speaker 1: towards to that. What is for you as what is

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Speaker 1: for your what is what China? What is what Japan?

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Speaker 1: And that's going to be a challenging for the next

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Speaker 1: five to ten years. That's the reason why we have

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Speaker 1: announced sumption to Southern thirty and we're going to do

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Speaker 1: out the more detailed plan on the e respective. Mark

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Speaker 1: Okayo Cheetah, a CEO and president of Nissan Motor Company,

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Speaker 1: joining us live in our Bloomberg in Erector Brooker Studio.

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Speaker 1: We really appreciate you taking time to speak with us

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Speaker 1: and learn about what's the latest with the Nissan Motor Corporation.

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Speaker 1: So I put in DAL Drones Industrials Index Space m

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Speaker 1: o V for movers, and I find that costs, I

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Speaker 1: mean the salesforce accounts for a hundred and twelve points

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Speaker 1: of the four point decline in the Dow Jones Industrial

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Speaker 1: So I need to go. It's literally been decimated. So

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Speaker 1: a lot of people think decimated is reduced to one tenth,

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Speaker 1: but actually it's yes, exactly, So you're using the correct Okay,

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Speaker 1: Man Deep Singh senior technology annels for Bloomberg Intelligence. We

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Speaker 1: got them both here in the studio on right, What

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Speaker 1: how do you guys divide it? I don't rock, what

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Speaker 1: do you cover that Man Deep doesn't? And vice versa?

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Speaker 1: The Internet names Okay, I don't know. I just they

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Speaker 1: do it all their tech. I just throw tech, hardware, software, Internet,

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Speaker 1: I just throw them eat at each very different. Yes,

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Speaker 1: and and that's what you'll see sales force versus All right,

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Speaker 1: let's go a salesforce on that's your name. We'll assign

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Speaker 1: the blame to you. What happened to them because they

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Speaker 1: were just ripping it for so long? Yeah, so it's

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Speaker 1: falling in the same category of you know, macro yt

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Speaker 1: spending slow down. Now. I think the stock reaction would

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Speaker 1: have been less worse if work they didn't announce spectacular

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Speaker 1: results the day before UM. And so that's one culprit.

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Speaker 1: The second is that co CEO Brett Taylor decides to

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Speaker 1: leave and start you know, it's gonna most likely start

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Speaker 1: a new company. I think that puts a little bit

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Speaker 1: of haziness at the top. There have been a few

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Speaker 1: CEOs or co CEOs that have left in the last

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Speaker 1: few years. So it really people want to figure out

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Speaker 1: is what's Mark Bennehoff going to do when it comes

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Speaker 1: to leadership on the top. So I think both both

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Speaker 1: those factors are weighing on sales force today. But in general,

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Speaker 1: we've seen a lot of bad news or not good

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Speaker 1: news out of these software companies over the last few days. Right,

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Speaker 1: CrowdStrike was not good. I didn't think, um that we're

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Speaker 1: gonna see gains in Snowflake, but it's now turned around

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Speaker 1: in the market. Nonetheless, the outlook isn't great. You know,

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Speaker 1: are people spending less on these services they see they

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Speaker 1: are all old spending services less on some of these services.

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Speaker 1: But remember one thing, it's also question of valuation and

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Speaker 1: how much estimates have been reduced. So every stock is different,

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Speaker 1: every company is different. In areas where they have been

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Speaker 1: estimates have been cut down quite a bit, they are

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Speaker 1: not responding, you know, from a stock point of view

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Speaker 1: as bad. In some places where it's not been cut down,

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Speaker 1: people are surprised by what happened. You know, stock reaction

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Speaker 1: is bad. Crowds right is a great example. Salesforce is

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Speaker 1: a great example. Over there, a man deep we have

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Speaker 1: the I think just only a silicon you're only doing

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Speaker 1: Silicon Valley. H Elon Musk tweeting out that he was

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Speaker 1: at the Apple campus in Cupertino, California. Rewind First, he

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Speaker 1: tweeted out that he was going to war with Apple. Yes,

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Speaker 1: he said, you know what, they threatened to take us

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Speaker 1: out of the app store. They charge us thirty it's

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Speaker 1: a monopoly they're abusing, and when we choose to go

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Speaker 1: to war. Then he went to the Cupertino campus and

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Speaker 1: he was like, oh, we're great friends. Well, so a

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Speaker 1: couple of things they're one is I don't think he

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Speaker 1: realized that if they pivot to a subscription model, Apple

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Speaker 1: will be taking a thirty percent cut. Remember Twitter was

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Speaker 1: all advertising. With advertising, you're monetizing the time span through

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Speaker 1: by showing ads. You don't have to pay Apple anything.

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Speaker 1: With subscription, it's very different because if people sign up

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Speaker 1: for a subscription on the phone, Apple is taking a

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Speaker 1: thirty percent cut. So as he pivoted to subscriptions, I

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Speaker 1: think he realized that Apple will be taking a cut,

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Speaker 1: and he complained about the take rades, which Epic has

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Speaker 1: done before, and a number of other companies, gaming companies

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Speaker 1: that rely on a subscription model on the phone. They

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Speaker 1: talk about, you know how Apple has a very high

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Speaker 1: take rate and and so does Android and Google. But

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Speaker 1: the advertising side was much more cleaner in terms of

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Speaker 1: paying to Apple. But now he realizes, right, and he

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Speaker 1: eats his chest and he talks a big game, and

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Speaker 1: then somehow he ends up at Apple's headquarters and Tim

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Speaker 1: Cook just quietly puts him in his place because there

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Speaker 1: is no way out of it. And that's what a

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Speaker 1: number of gaming companies have realized. That power off Apple's platform,

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Speaker 1: that is the biggest distribution channel out there. Even if

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Speaker 1: they charge the high take rades, you have no option

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Speaker 1: right now but to pay for it. And you can't

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Speaker 1: build your own phone or you know, launch a service

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Speaker 1: outside of this is what Anora was. I was having

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Speaker 1: this discussion with Anorag yesterday and I said, you know

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Speaker 1: what he's gonna I thought Musk would take this to

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Speaker 1: Republicans and they would raise a free speech problem and

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Speaker 1: they would move some legislation through Congress. And Anorag was like, nope, no,

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Speaker 1: I mean no, no, it's not that I think it's

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Speaker 1: a very simple thing. If Tim Cooks tells him you

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Speaker 1: want a business, turn it out, I'll help you do it.

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Speaker 1: What what is the you know? I think that's a

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Speaker 1: much more easier way to fix it. We'll figure it

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Speaker 1: out a way. You just don't put X amount of

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Speaker 1: content there, will make sure we advertise mode. And I

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Speaker 1: think that's a it's a more logical and a more

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Speaker 1: friendly approach to fix things. It's a more silicon value

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Speaker 1: way to go. I mean they're also zen out there, um,

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Speaker 1: unlike you two guys. All right, so we got on

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Speaker 1: Ron and we got man deep sing uh. They cover

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Speaker 1: all this tech stuff for bloombergin. Who does hardware? By

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Speaker 1: the way, like if I need a hardware call, who

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Speaker 1: do I go to? What is hardware? Like the computer stuff?

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Speaker 1: Let me make one comment is you know the chip

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Speaker 1: companies are missing so much talking about estimate cuts, software misses.

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Speaker 1: Our s like slave in comparison to the misses. So

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Speaker 1: that's one thing to be mindful of. When you said

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Speaker 1: snowflake missed, okay, compare it to an N video or

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Speaker 1: an E M D miss Alright, a lot of good

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Speaker 1: tech stuff here. We can do it all day long.

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Speaker 1: I don't know. I was definitely dialed in yesterday to

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Speaker 1: the sand Bank Freed interview Andrew Ross Sorkin at the

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Speaker 1: deal Book conference yesterday. I thought Andrew did an excellent

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Speaker 1: job from a really weird topic, I guess, but I

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Speaker 1: was riveted. But it's the first time I've seen Sam

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Speaker 1: bankman Free speak, so you know, I'm not sure what

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Speaker 1: to compare to, but it's certainly a key, key issue

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Speaker 1: in this whole crypto space here. So any massa who's

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Speaker 1: part of the team here, she's an investing reporter Bloomberg News,

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Speaker 1: but she's part of this team here Bloomberg News that's

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Speaker 1: done an extraordinary job covering all things crypto and kind

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Speaker 1: of how this whole space is evolving and some of

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Speaker 1: the real big stumbles were seeing out there, including ft

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Speaker 1: X and any massive joins us here in our studio.

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Speaker 1: Any what did you make of Sam bankman Fried's interview yesterday? Testimony?

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Speaker 1: You want to say, I felt like I was just

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Speaker 1: about to say testimony, But you know, his interview, Well,

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Speaker 1: there was a lot of hype around this interview because

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Speaker 1: he had been on the program to speak at the

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Speaker 1: deal Book conference long before the blow up in f

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Speaker 1: t X, so people were watching very closely and wondering

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Speaker 1: if he was going to appear at all, and he did.

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Speaker 1: So that was a moment when he actually appeared on

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Speaker 1: the screen. As far as what he actually said in

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Speaker 1: the interview, he didn't give. He answered a lot of questions,

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Speaker 1: but he didn't give a lot of answers, if you

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Speaker 1: know what I mean. He verry consciously, I would surmise,

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Speaker 1: kept this profile of kind of looking like downcast eyes,

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Speaker 1: bowing his head, saying I screwed up. I was the CEO,

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Speaker 1: I'm responsible. So he said a lot of that sort

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Speaker 1: of thing. He didn't give a lot of answers um

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Speaker 1: and did his typical deflecting as far as what actually

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Speaker 1: went down, which probably was to be expected. He clearly

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Speaker 1: didn't want to incriminate himself, and Andrew really wanted to

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Speaker 1: incriminate him, and he kept using the term co mingling,

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Speaker 1: as if that's just a daily term we throw around.

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Speaker 1: But um, I thought I came away with a pretty

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Speaker 1: clear picture of if you take Sam Bankman free at

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Speaker 1: his word of what happened, it seemed like Alameda, which

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Speaker 1: you know, he says he was trying to distance himself

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Speaker 1: from had massive margin positions all over town, and after

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Speaker 1: the collapse of Terror Luna, they just shifted those margin

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Speaker 1: positions onto F t X, right because they were called

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Speaker 1: everywhere else and they had nowhere else to go. Um.

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Speaker 1: The part that's hard to believe if that's what happened,

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Speaker 1: is that he had no idea that that was happening. Yeah,

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Speaker 1: I mean, I would say, you have to take everything

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Speaker 1: he says. He's he's a very slippery personality, and exactly

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Speaker 1: so all the disclaimers that you just mentioned, Um, he

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Speaker 1: I just I think it's hard to take anything that

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Speaker 1: he says at face value. Some of the things he

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Speaker 1: said were demonstrably false. But to your point, he was

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Speaker 1: a owner we know from the bankruptcy filings of Alameda,

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Speaker 1: So to say that he didn't know what the positions were,

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Speaker 1: I would treat that with a lot of skepticism. The thing, Yeah,

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Speaker 1: The other thing is he lived there in the Bahamas

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Speaker 1: with the the heads of Alameda. So again, like you're

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Speaker 1: living in an apartment in an environment together with these people.

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Speaker 1: Just to say that you had no idea seems um,

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Speaker 1: seems hard to believe to me. It did seem like, um,

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Speaker 1: they were living it up down there. I mean every

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Speaker 1: employee who came down like got a house and a

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Speaker 1: car and they were all allowed to two worth of

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Speaker 1: free food. How can you two hundred door dash a

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Speaker 1: day like that would be difficult even for me and

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Speaker 1: I eat a lot um. So definitely there were no controls, right.

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Speaker 1: But um, it seems like even now he's operating without control,

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Speaker 1: why would he do this? Wouldn't his lawyers tell him

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Speaker 1: not to? His parents are lawyers, right? So Andrew did

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Speaker 1: ask him at one point, dear lawyers know you're doing this.

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Speaker 1: What do they say? And Sam said something like they

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Speaker 1: very much are not on board with me doing this.

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Speaker 1: And again, who knows if that's true or false. It

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Speaker 1: does seem to be a bit of an image. The

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Speaker 1: lawyer in the world will be okay with even a

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Speaker 1: bad lawyer, but his parents are like Stanford professor, good lawyer.

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Speaker 1: It's it's hard, it's hard. It's really hard to fathom

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Speaker 1: why they would why they would let him get out

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Speaker 1: there on the record. Um. To your point about the

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Speaker 1: freewheeling culture that they had in the Bahamas, Andrew did

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Speaker 1: ask him about that, and Sam insisted again use all

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Speaker 1: the grains of salt you like with us, he said,

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Speaker 1: the only drug use we had was prescription drug use.

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Speaker 1: I use drugs like you know, medication for focus and

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Speaker 1: things like that. But but there wasn't any crazy partying.

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Speaker 1: All we did was like playboard games when we partied.

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Speaker 1: So that was a funny moment. And again I think

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Speaker 1: you kind of have to raise an eyebrow. So you know,

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Speaker 1: it's been several weeks here and we're talking billions, maybe

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Speaker 1: tens of billions of dollars here, uh, and customer losses.

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Speaker 1: What's the next step from a legal perspective of a

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Speaker 1: police perspective. I mean, he's just sitting down there in

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Speaker 1: the Bahamas. I want to know if anyone's gonna go

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Speaker 1: down there and grab him right, good question. Either the

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Speaker 1: d O J or Russian mafia, yeah, or an angry customer.

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Speaker 1: I mean it's it's hard to know what could happen, Um.

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Speaker 1: But there was an emotional moment in the interview where

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Speaker 1: um Andrew read out a message that user of f

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Speaker 1: t X had sent to him, basically asking like ask Sam,

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Speaker 1: like where did my money go? Like? I trusted him

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Speaker 1: and he betrayed my trust as he betrayed the trust

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Speaker 1: of so many people. And it's a hundred percent true that.

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Speaker 1: I think people who loaded money onto that platform and

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Speaker 1: believed him are absolutely reeling over the scale the magnitude

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Speaker 1: of the losses that they probably incurred, because it doesn't

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Speaker 1: look very good um that that you'll see that very

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Speaker 1: much money recovered at all in this bankruptcy. It's pretty

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Speaker 1: clear where the money went, right. Alameda borrowed all the

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Speaker 1: money from f t X, gave f t X worthless collateral,

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Speaker 1: then lost all the money, and the collateral is now

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Speaker 1: worth nothing. That's right. The problem really comes back to

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Speaker 1: being able to There are a lot of problems, but

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Speaker 1: one of them is that, uh, the that ability to

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Speaker 1: borrow endlessly um, you know, real real dollars and like

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Speaker 1: real value against um invented tokens that are just conjured

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Speaker 1: out of thin air UM. And then and then the

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Speaker 1: privileges that Alamide absolutely had UM that were specific to

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Speaker 1: Alamade on f t X UM and and obscured to

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Speaker 1: the rest of them. It's amazing that Sam Bankman freed

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Speaker 1: this super genius from m I T had such um

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Speaker 1: an inability to remember exact numbers, right, He's like, yeah,

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Speaker 1: we had like a hundred million of margin. Maybe it

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Speaker 1: was two hundred million. Your investments in Sequoia, what was

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Speaker 1: like a couple hundred million? I think I can't remember.

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Speaker 1: Like he didn't know even ballpark figures closest to the

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Speaker 1: nearest million, right, or he didn't want to show that

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Speaker 1: he knew. It's it's really hard to get him inside

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Speaker 1: his head, but he does a lot of that, just

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Speaker 1: pulling estimates out of the air um and it can

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Speaker 1: be hard to I still don't know what the reckoning

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Speaker 1: is here. I mean, I don't think it doesn't look

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Speaker 1: good for I mean it doesn't look I think that

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Speaker 1: one thing is like it looks horrible for US regulators

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Speaker 1: to an extent that this kind of went on as

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Speaker 1: long as it did so. I mean there's a lot

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Speaker 1: of talk about, certainly from angry customers. There's a lot

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Speaker 1: of talk like we want to see SPF and his

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Speaker 1: cronies in jail. I don't know this is at the

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Speaker 1: early stages. I think of a long, longer play here

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Speaker 1: in any Messa and her reporting colleagues will continue to

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Speaker 1: report on that. For us, we appreciate that any massa

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Speaker 1: investing reporter. What I've got a Barry rid Hults. He's

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Speaker 1: the founder of rid Hult's Wealth Management host of Masters

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Speaker 1: in Business, Barry, we love talking to you about markets,

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Speaker 1: but i'd love to just I'm not sure if you

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Speaker 1: saw Sam Bankman freed yesterday, but if you did, I'd

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Speaker 1: love to get your thoughts because that was certainly unique

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Speaker 1: theater for those in the markets. He's a professional liar,

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Speaker 1: and as a somebody who evaluates um ambiguous information constantly,

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Speaker 1: I found it tremendously useful to just avoid listening to

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Speaker 1: people with that sort of history. Uh. You know, this

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Speaker 1: looked really negative for crypto for a while, but the

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Speaker 1: parallels are burning made off. This guy is just a thief.

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Speaker 1: I don't care what his model was. Once you dip

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Speaker 1: into client cash, I don't care if you're borrowing it

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Speaker 1: with the best of intentions, that's it. You're a felon.

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Speaker 1: You go to jail. Although right now I think he

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Speaker 1: would be lucky if he makes it to jail in

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Speaker 1: one piece. I have to imagine there are a lot

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Speaker 1: of angry people who would be very happy to spend

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Speaker 1: a hundred thousand dollars making his life as miserable as

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Speaker 1: he's made their life. Yeah, so you don't buy the

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Speaker 1: kind of innocent. We were all down there being outru

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Speaker 1: risks and spending tons of money playing board games and

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Speaker 1: not paying attention to the books, when all of a

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Speaker 1: sudden we realize coops or eight billion dollars in the

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Speaker 1: whole rests ips. Loquatur is a phrase they teach in

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Speaker 1: law school, which means the thing speaks for itself. Here

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Speaker 1: is client deposits. You reached into client deposits. Sorry, you

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Speaker 1: go to jail that this this is not you know,

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Speaker 1: I think everybody deserves their days and talk because it

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Speaker 1: seems like this is black and white. It seems like, yeah,

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Speaker 1: it seems like it is black and white, and it

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Speaker 1: seems like he's gonna go to jail for the rest

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Speaker 1: of his life no matter what. Why Why is he

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Speaker 1: talking instead of, you know, trying to put together a defense.

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Speaker 1: So when people are on these self destructive spirals, and

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Speaker 1: clearly he has been in one for a while, even

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Speaker 1: as he has deceived many of the most sophisticated institutional

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Speaker 1: investors out there, um and his parents. Apparently he's a

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Speaker 1: con man. Listen, The whole thing behind Khan Man is

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Speaker 1: that Khan stands for confidence. He is so self assured

430
00:23:12,800 --> 00:23:16,720
Speaker 1: and so brilliant that he wins them over and they

431
00:23:16,800 --> 00:23:21,520
Speaker 1: place misplace their confidence in him. And look, you know,

432
00:23:21,880 --> 00:23:23,879
Speaker 1: I've been on the fiduciary side of the street for

433
00:23:24,040 --> 00:23:27,879
Speaker 1: well over a decade. I've been arguing that all of

434
00:23:27,960 --> 00:23:32,639
Speaker 1: Wall Street should put their client's best interests first. None

435
00:23:32,640 --> 00:23:38,879
Speaker 1: of that applies here. This person allegedly reached into client

436
00:23:38,920 --> 00:23:42,080
Speaker 1: accounts and took that money. I don't know how much

437
00:23:42,119 --> 00:23:46,439
Speaker 1: more debate is necessary, um and again, everybody deserves their

438
00:23:46,480 --> 00:23:51,040
Speaker 1: day in court. But dear lord, I don't know how

439
00:23:51,080 --> 00:23:55,120
Speaker 1: else to describe that other than this isn't a business

440
00:23:55,119 --> 00:23:59,320
Speaker 1: model failure, This isn't a research error. This guy is

441
00:23:59,359 --> 00:24:02,080
Speaker 1: a criminal. It's I feel like we should have some

442
00:24:02,160 --> 00:24:05,639
Speaker 1: kind of disclaimer just for you and me. Right, so,

443
00:24:07,680 --> 00:24:12,920
Speaker 1: allegedly don't have any evidence that he's broken a lot

444
00:24:13,080 --> 00:24:17,200
Speaker 1: other than the fact and billions of clients dollars have disappeared.

445
00:24:17,280 --> 00:24:19,359
Speaker 1: Hold that little factory to say, I just want to

446
00:24:19,440 --> 00:24:21,840
Speaker 1: keep myself out of trouble. Bear, what's the barry? What

447
00:24:21,880 --> 00:24:25,880
Speaker 1: does this mean? If anything? For the cryptospace writ large

448
00:24:26,520 --> 00:24:30,920
Speaker 1: so you know it in a perverse way, If this

449
00:24:31,000 --> 00:24:33,720
Speaker 1: isn't a business model failure, and this turns out to

450
00:24:33,800 --> 00:24:38,000
Speaker 1: be full blown theft. It's kind of like Bernie made

451
00:24:38,040 --> 00:24:40,560
Speaker 1: off in hedge funds. Oh wait, this doesn't mean hedge

452
00:24:40,560 --> 00:24:43,440
Speaker 1: funds are bad. It means that Jerk was a thief

453
00:24:43,800 --> 00:24:46,439
Speaker 1: and one of the greatest thiefs of all time until

454
00:24:47,920 --> 00:24:51,080
Speaker 1: Sam came along. Sam and Bernie will go down in

455
00:24:51,200 --> 00:24:56,080
Speaker 1: history as two of the most accomplished. Um well, they

456
00:24:56,119 --> 00:25:00,320
Speaker 1: both got caught. You know, here's the difference. When Ernie

457
00:25:00,320 --> 00:25:03,440
Speaker 1: made Off admitted to his son's that he was stealing

458
00:25:04,200 --> 00:25:08,639
Speaker 1: client money that day he was in head. That's kind

459
00:25:08,680 --> 00:25:12,280
Speaker 1: of what we can I don't know. Do we not

460
00:25:12,400 --> 00:25:15,240
Speaker 1: have extradition charge? I don't know. I've been asking this,

461
00:25:15,520 --> 00:25:16,960
Speaker 1: but we'll figure it out, all right, Barry, thank you

462
00:25:16,960 --> 00:25:19,680
Speaker 1: so much. We appreciate your comments. They're making a very

463
00:25:19,680 --> 00:25:23,080
Speaker 1: clear Barry Ridholt's host of Masters in Business on Bloomberg Radio.

464
00:25:26,080 --> 00:25:29,520
Speaker 1: Today is World AIDS Day, so we thought it's a

465
00:25:29,560 --> 00:25:31,280
Speaker 1: good time to kind of get the latest on what's

466
00:25:31,320 --> 00:25:33,800
Speaker 1: going on. I mean, the world's obviously just coming out

467
00:25:33,800 --> 00:25:36,200
Speaker 1: of this pandemic and you need to kind of refocus

468
00:25:36,280 --> 00:25:38,520
Speaker 1: on some of the other issues out there, and we

469
00:25:38,560 --> 00:25:39,920
Speaker 1: want to do that right here. We can do with

470
00:25:40,000 --> 00:25:43,920
Speaker 1: Jennifer Lotito, ce OO and president of the firm by

471
00:25:43,920 --> 00:25:46,639
Speaker 1: the name of RED R. E. D. Jennifer, thanks so

472
00:25:46,720 --> 00:25:49,600
Speaker 1: much for joining us here. You know, again, the world's

473
00:25:49,600 --> 00:25:51,080
Speaker 1: just kind of coming out on the other side of

474
00:25:51,119 --> 00:25:55,359
Speaker 1: this global pandemic um and it's probably time to refocus

475
00:25:55,400 --> 00:25:58,360
Speaker 1: on some of the issues that were there before the pandemic,

476
00:25:58,600 --> 00:26:00,760
Speaker 1: like AIDS. I love for you to give us kind

477
00:26:00,760 --> 00:26:03,679
Speaker 1: of a summary of kind of where we are in

478
00:26:03,720 --> 00:26:06,840
Speaker 1: our fight against AIDS. Yeah, thank you so much for

479
00:26:06,880 --> 00:26:10,199
Speaker 1: having me. Well, you're exactly right. We need to uh

480
00:26:10,359 --> 00:26:12,560
Speaker 1: you know, AIDS like COVID may not be in the

481
00:26:12,560 --> 00:26:14,560
Speaker 1: headlines every day, but it needs to be. And the

482
00:26:14,600 --> 00:26:17,080
Speaker 1: reason for that is because over twelve thousand people every

483
00:26:17,080 --> 00:26:20,720
Speaker 1: week are dying from a treatable and preventable disease. So today,

484
00:26:20,760 --> 00:26:22,680
Speaker 1: as we mark World AIDS Day, we need to think

485
00:26:22,680 --> 00:26:25,760
Speaker 1: about the forty million people whose lives have been lost,

486
00:26:26,040 --> 00:26:28,800
Speaker 1: but also the fact that there is treatment available, but

487
00:26:28,880 --> 00:26:31,399
Speaker 1: we need to get that treatment everywhere it's needed, and

488
00:26:31,440 --> 00:26:33,959
Speaker 1: that's what RED is helping to do. So what is

489
00:26:34,720 --> 00:26:37,600
Speaker 1: the problem with getting people this treatment? Is it a

490
00:26:37,640 --> 00:26:41,960
Speaker 1: cost issue? Yeah, you know, like so many other things,

491
00:26:42,000 --> 00:26:44,760
Speaker 1: it's it's a resource issue, it's a cost you know.

492
00:26:44,840 --> 00:26:47,520
Speaker 1: Thankfully we've got organizations like the Global Fund, which is

493
00:26:47,560 --> 00:26:51,639
Speaker 1: who we provide funding to. They are getting treatment on

494
00:26:51,680 --> 00:26:54,160
Speaker 1: the ground where it's needed the most in Sub Saharan Africa.

495
00:26:54,440 --> 00:26:56,639
Speaker 1: But they need more, They need more resources. But in

496
00:26:56,640 --> 00:26:59,520
Speaker 1: addition to that, they need people to care. And the

497
00:26:59,560 --> 00:27:02,199
Speaker 1: way they do that is through red We work with

498
00:27:02,240 --> 00:27:04,720
Speaker 1: the biggest companies in the world. We give people products

499
00:27:04,720 --> 00:27:07,400
Speaker 1: to buy. When you do that, money from those companies

500
00:27:07,440 --> 00:27:10,400
Speaker 1: goes to help buy those pills, that treatment and make

501
00:27:10,440 --> 00:27:12,840
Speaker 1: sure that we are ending this disease for good. And

502
00:27:12,840 --> 00:27:14,919
Speaker 1: they are some of the most it must be the

503
00:27:14,920 --> 00:27:19,200
Speaker 1: most recognizable, uh or one of the most recognizable charities,

504
00:27:19,320 --> 00:27:23,640
Speaker 1: right because you have so many products, but they're not

505
00:27:24,840 --> 00:27:26,840
Speaker 1: I mean they're good products, they're not you know, just

506
00:27:26,960 --> 00:27:29,639
Speaker 1: randomly picked. It looks like you do a lot of

507
00:27:29,680 --> 00:27:32,280
Speaker 1: work trying to find the best things to put your

508
00:27:32,320 --> 00:27:35,399
Speaker 1: name on. How do you do that, well, it's it

509
00:27:35,520 --> 00:27:38,639
Speaker 1: is carefully curated. We want products and brands and leaders

510
00:27:38,680 --> 00:27:41,960
Speaker 1: who believe in this fight. And so we're really excited

511
00:27:42,000 --> 00:27:44,240
Speaker 1: because you know, today, being world they say we have

512
00:27:44,320 --> 00:27:47,320
Speaker 1: the ability to tell people and tell the world about

513
00:27:47,480 --> 00:27:49,800
Speaker 1: how they can give back during this holiday season. To

514
00:27:49,880 --> 00:27:52,920
Speaker 1: your point, these are not just great, beautiful products that

515
00:27:52,960 --> 00:27:56,200
Speaker 1: are well designed, they are products that are actually saving lives.

516
00:27:56,200 --> 00:27:58,840
Speaker 1: So if you look at something like the temperature controlled

517
00:27:58,840 --> 00:28:02,960
Speaker 1: Ember mugs, which are fantastic, a lavoid air purifier, there's

518
00:28:03,000 --> 00:28:05,720
Speaker 1: a new collection from Prime mark. I mean, these are

519
00:28:05,960 --> 00:28:09,280
Speaker 1: incredible products, but they are actually life saving and so

520
00:28:09,359 --> 00:28:11,480
Speaker 1: you need to get to Amazon dot com, slash red

521
00:28:11,600 --> 00:28:15,200
Speaker 1: and check them all out. Jennifer, can you just let

522
00:28:15,280 --> 00:28:18,320
Speaker 1: us know or give us the latest on what the

523
00:28:18,320 --> 00:28:21,320
Speaker 1: treatments are for AIDS? What's what is the protocol? How

524
00:28:22,440 --> 00:28:24,240
Speaker 1: how you know how difficult is it is is it

525
00:28:24,280 --> 00:28:26,320
Speaker 1: to treat? Or how easy is it to treat? And

526
00:28:26,320 --> 00:28:30,320
Speaker 1: where are we today? Absolutely? I will, I will full disclosure.

527
00:28:30,320 --> 00:28:33,200
Speaker 1: I am not a medical doctor. I am an activist

528
00:28:33,320 --> 00:28:35,879
Speaker 1: at a marketer. But yeah, there is one pill a

529
00:28:35,960 --> 00:28:39,200
Speaker 1: day in Sub Saharan Africa costs about twenty cents a day. Um.

530
00:28:39,240 --> 00:28:41,520
Speaker 1: The interesting thing that many people may not know is

531
00:28:41,520 --> 00:28:43,520
Speaker 1: that when you take that pill, now granted you need

532
00:28:43,560 --> 00:28:46,240
Speaker 1: to take that pill every day, it suppresses the viral

533
00:28:46,280 --> 00:28:48,600
Speaker 1: load in your system so that you are not sick,

534
00:28:48,640 --> 00:28:51,480
Speaker 1: you're able to live a full and healthy life. Um.

535
00:28:51,560 --> 00:28:53,160
Speaker 1: But not only that, you don't pass it on to

536
00:28:53,200 --> 00:28:56,600
Speaker 1: your partner. And if your HIV positive mother or a

537
00:28:56,600 --> 00:28:59,520
Speaker 1: pregnant woman, you will very high chances you will not

538
00:28:59,520 --> 00:29:03,480
Speaker 1: pass it onto your unborn child. So that's really that

539
00:29:03,640 --> 00:29:06,360
Speaker 1: is incredible progress, UM. But we need to make sure

540
00:29:06,440 --> 00:29:08,640
Speaker 1: everybody is on that treatment. We also need to make

541
00:29:08,640 --> 00:29:12,080
Speaker 1: sure everybody is getting tested. So for brands like that

542
00:29:12,120 --> 00:29:14,600
Speaker 1: are out there like Roch and Mark, people are getting tested,

543
00:29:14,600 --> 00:29:17,160
Speaker 1: They're getting the treatment that they need. And you know,

544
00:29:17,240 --> 00:29:19,959
Speaker 1: that's the way we're going to end this disease. We

545
00:29:20,040 --> 00:29:22,240
Speaker 1: know how to do it, we just need the resources

546
00:29:22,280 --> 00:29:24,800
Speaker 1: to get there. And so how are you doing with

547
00:29:25,160 --> 00:29:28,160
Speaker 1: UH with the marketing side of things, with the with

548
00:29:28,240 --> 00:29:31,760
Speaker 1: the collection or fundraising side of things, what are your

549
00:29:31,760 --> 00:29:36,000
Speaker 1: goals and where are you? Yeah? Absolutely we are. We're

550
00:29:36,040 --> 00:29:38,800
Speaker 1: doing great. We would love to have more partners join

551
00:29:38,880 --> 00:29:42,080
Speaker 1: us in this fight. We are very focused on talking

552
00:29:42,080 --> 00:29:45,120
Speaker 1: about where the AIDS fight is right now and we

553
00:29:45,160 --> 00:29:48,240
Speaker 1: are seeing it hit marginalized communities. So if you are

554
00:29:48,320 --> 00:29:50,200
Speaker 1: a person of color or an l g B t

555
00:29:50,360 --> 00:29:54,800
Speaker 1: Q or or young girl UH in Sub Saharan Africa especially,

556
00:29:55,080 --> 00:29:57,200
Speaker 1: you are going to be more vulnerable to diseasease to

557
00:29:57,360 --> 00:29:59,720
Speaker 1: the disease. So from a marketing standpoint, we want to

558
00:29:59,760 --> 00:30:01,880
Speaker 1: make sure of people understand that is an injustice that

559
00:30:01,960 --> 00:30:04,760
Speaker 1: we need to write and we can do that through

560
00:30:04,840 --> 00:30:08,400
Speaker 1: our efforts by providing treatment and UH and prevention programs.

561
00:30:08,440 --> 00:30:10,880
Speaker 1: And that's exactly what RENDS doing. We always want to

562
00:30:10,920 --> 00:30:12,840
Speaker 1: do more. We want more products. We have over a

563
00:30:12,920 --> 00:30:15,200
Speaker 1: hundred and thirty products, but we'd love to do more.

564
00:30:15,240 --> 00:30:17,320
Speaker 1: We'd love more brands to join us. And that's exactly

565
00:30:17,320 --> 00:30:20,640
Speaker 1: what we're focused on. And Jennifer, just the pandemic. It's

566
00:30:20,640 --> 00:30:26,680
Speaker 1: affected everybody individually. It's affected communities, it's affected uh, you know, economies.

567
00:30:26,680 --> 00:30:29,600
Speaker 1: How's it affected kind of the the fight against AIDS

568
00:30:29,600 --> 00:30:32,760
Speaker 1: from your perspective, Yeah, so when you go to you

569
00:30:32,800 --> 00:30:35,440
Speaker 1: know this, this shouldn't be too tough to imagine. I think,

570
00:30:35,520 --> 00:30:37,560
Speaker 1: you know, I live here in New York City, when

571
00:30:37,560 --> 00:30:40,440
Speaker 1: when COVID hit here, we saw the impact it had

572
00:30:40,480 --> 00:30:44,120
Speaker 1: on our health system. That's the same in Sub Saharan Africa.

573
00:30:44,200 --> 00:30:46,760
Speaker 1: The good news is many of the programs that had

574
00:30:46,800 --> 00:30:48,680
Speaker 1: been put in place by our partners at the Global

575
00:30:48,720 --> 00:30:52,680
Speaker 1: Fund were able to respond more quickly and nimbly when

576
00:30:52,840 --> 00:30:55,600
Speaker 1: COVID arrived so many of the HIV programs that were

577
00:30:55,600 --> 00:30:59,040
Speaker 1: in place, but but we've now lost ground and we've

578
00:30:59,040 --> 00:31:01,080
Speaker 1: got to keep that prom breast going. You know, you

579
00:31:01,120 --> 00:31:04,000
Speaker 1: can just imagine if you're somebody who's on HIV treatment,

580
00:31:04,040 --> 00:31:05,680
Speaker 1: you need to go into the clinic, you need to

581
00:31:05,720 --> 00:31:07,600
Speaker 1: get your pills. If you're worried about getting COVID, you

582
00:31:07,600 --> 00:31:10,280
Speaker 1: may not do that. We saw the impact on healthcare workers.

583
00:31:10,480 --> 00:31:13,080
Speaker 1: That's no different there. These are all part of this

584
00:31:13,160 --> 00:31:15,280
Speaker 1: health system that we need to make sure we're strengthening

585
00:31:15,360 --> 00:31:17,440
Speaker 1: because there will be another pandemic. We need to be

586
00:31:17,480 --> 00:31:20,600
Speaker 1: prepared for it. All right, good stuff, Jennifer Latito, thank

587
00:31:20,640 --> 00:31:23,240
Speaker 1: you so much for joining us. Jennifer's the CEO and

588
00:31:23,360 --> 00:31:27,680
Speaker 1: president of Red Spelled r e D. Just getting the

589
00:31:27,760 --> 00:31:31,000
Speaker 1: latest on AIDS. It is World Age Day, so getting

590
00:31:31,000 --> 00:31:33,840
Speaker 1: a little kind of an update. They're still still a

591
00:31:33,880 --> 00:31:37,080
Speaker 1: grave issue out there in the global community. But the

592
00:31:37,120 --> 00:31:40,400
Speaker 1: good news is obviously after years and years and decades

593
00:31:40,560 --> 00:31:44,600
Speaker 1: of scientific study, there are very effective treatments out there,

594
00:31:44,600 --> 00:31:46,280
Speaker 1: and that's the good news. So the folks are read

595
00:31:46,680 --> 00:31:50,160
Speaker 1: continuing to do the good work in raising awareness, raising

596
00:31:50,320 --> 00:31:53,320
Speaker 1: funding for the issue. Go by their stuff go by

597
00:31:53,360 --> 00:31:58,480
Speaker 1: their stuff. Let's get right to our next guest, Charles

598
00:31:58,480 --> 00:32:01,960
Speaker 1: Meyer Sees the CEO of equine Equinox is a NASTAC

599
00:32:02,000 --> 00:32:05,040
Speaker 1: traded stock. E q i X is a symbol to

600
00:32:05,080 --> 00:32:08,400
Speaker 1: put into your Bloomberg professional terminals. It's a really real

601
00:32:08,520 --> 00:32:10,760
Speaker 1: estate investment trust. Those guys throw off lots of cash,

602
00:32:10,800 --> 00:32:14,239
Speaker 1: lots of dividends. This company, though, does it with like

603
00:32:14,400 --> 00:32:17,920
Speaker 1: data centers, so it's got a real tech spin to it. Charles,

604
00:32:17,960 --> 00:32:20,480
Speaker 1: thanks so much for joining us here in studio. Talk

605
00:32:20,520 --> 00:32:23,680
Speaker 1: to us about Equinox. What's talk? Just give us a

606
00:32:23,720 --> 00:32:26,400
Speaker 1: thirty seconds on what your company does, what where, where

607
00:32:26,400 --> 00:32:29,080
Speaker 1: your focuses and kind of what are the opportunities for

608
00:32:29,120 --> 00:32:31,719
Speaker 1: you guys going forward. Sure, thanks for having me. Yuh So,

609
00:32:31,800 --> 00:32:34,480
Speaker 1: Equinics is the really the largest provider data centers around

610
00:32:34,480 --> 00:32:37,960
Speaker 1: the world. We operate two data centers seventy one markets

611
00:32:37,960 --> 00:32:40,520
Speaker 1: twenty nine countries around the world. And you know, the

612
00:32:41,280 --> 00:32:44,560
Speaker 1: genesis story of the company and the name even Equinox is,

613
00:32:44,840 --> 00:32:48,400
Speaker 1: you know, is Equitable Internet Exchange. That's sort of where

614
00:32:48,400 --> 00:32:50,960
Speaker 1: the name is derived from. And uh, you know, we've

615
00:32:51,000 --> 00:32:54,440
Speaker 1: built the set of data centers that really provide interconnection

616
00:32:54,520 --> 00:32:57,920
Speaker 1: between the major players in the digital ecosystem and that's

617
00:32:57,960 --> 00:33:00,480
Speaker 1: really are our sort of special role in the in

618
00:33:00,520 --> 00:33:05,440
Speaker 1: the data center space. So we've seen, um, just in

619
00:33:05,440 --> 00:33:07,920
Speaker 1: the last few days a number of reports that some

620
00:33:08,000 --> 00:33:11,480
Speaker 1: big tech companies, including data centers, are seeing less demand.

621
00:33:12,040 --> 00:33:14,120
Speaker 1: Is that what you're seeing as well? We're not. We're

622
00:33:14,160 --> 00:33:16,480
Speaker 1: seeing a strong demand signal from the market right now.

623
00:33:16,520 --> 00:33:19,320
Speaker 1: I think that um, you know, we uh, we we're

624
00:33:19,360 --> 00:33:22,520
Speaker 1: seeing customers very committed to digital transformation as a means

625
00:33:22,560 --> 00:33:25,560
Speaker 1: of driving competitive advantage and in fact, in a in

626
00:33:25,640 --> 00:33:28,240
Speaker 1: a in an environment where there's a lot of belt tightening,

627
00:33:28,240 --> 00:33:30,880
Speaker 1: I think doing you know, doing more with less, so

628
00:33:30,920 --> 00:33:33,520
Speaker 1: to speak. Um, I think digital transformation is a major

629
00:33:33,560 --> 00:33:36,080
Speaker 1: element of that. And they're using cloud and other things

630
00:33:36,080 --> 00:33:38,360
Speaker 1: to think differently about I T and and we play

631
00:33:38,360 --> 00:33:40,360
Speaker 1: an important role and then helping them think through that.

632
00:33:40,360 --> 00:33:42,800
Speaker 1: So we're seeing a very strong demand right now. Sept

633
00:33:42,840 --> 00:33:45,880
Speaker 1: under dollar stock price. You gotta split this thing. What's

634
00:33:46,040 --> 00:33:48,520
Speaker 1: what's your thing? I'm an old stock analyst. How do

635
00:33:48,520 --> 00:33:50,000
Speaker 1: you think about that? We just we don't have a

636
00:33:50,000 --> 00:33:53,560
Speaker 1: lot of retail uh you know, demanded um is the reality,

637
00:33:53,600 --> 00:33:56,120
Speaker 1: and so uh you know, it hasn't been something area

638
00:33:56,240 --> 00:33:58,520
Speaker 1: focus for US, something we've we've occasionally looked at and

639
00:33:58,520 --> 00:34:00,760
Speaker 1: probably will you know, continue to do so, but it

640
00:34:00,840 --> 00:34:03,080
Speaker 1: hasn't been a strong, strong reason just because we don't

641
00:34:03,080 --> 00:34:05,560
Speaker 1: have a lot of retail demand. How global are you

642
00:34:05,760 --> 00:34:09,280
Speaker 1: and and what's the breakdown look like regionally? Extremely global.

643
00:34:09,320 --> 00:34:12,240
Speaker 1: We operate in seventy one markets in twenty nine countries

644
00:34:12,280 --> 00:34:16,000
Speaker 1: around the world. We're more than fifty outside the US. UM.

645
00:34:16,120 --> 00:34:18,600
Speaker 1: So yeah, you know, it's interesting because we've been running

646
00:34:18,600 --> 00:34:21,759
Speaker 1: into a pretty stiff currency headwind in that regard for

647
00:34:21,800 --> 00:34:24,040
Speaker 1: a while. UM. I think we may see that warm

648
00:34:24,080 --> 00:34:26,440
Speaker 1: turn as we see interest rates peak. But it's um,

649
00:34:27,320 --> 00:34:30,000
Speaker 1: we're very, very global business for sure. I think. I

650
00:34:30,120 --> 00:34:31,960
Speaker 1: know I've always said when I come back in the

651
00:34:31,960 --> 00:34:33,279
Speaker 1: next life, I want to come back as a real

652
00:34:33,480 --> 00:34:35,360
Speaker 1: m and a banker. You guys are very active, you

653
00:34:35,400 --> 00:34:38,000
Speaker 1: guys being the industry, you're very active. Here, talk just

654
00:34:38,080 --> 00:34:39,719
Speaker 1: about kind of the next five years, how much of

655
00:34:39,719 --> 00:34:41,520
Speaker 1: your growth is kind of organic and maybe what that

656
00:34:41,600 --> 00:34:44,160
Speaker 1: organic growth rate might look like versus what you might

657
00:34:44,160 --> 00:34:46,560
Speaker 1: get on the equator. Yeah, I mean, we're we're running

658
00:34:46,640 --> 00:34:48,680
Speaker 1: you know, we're about a seven point to five billion

659
00:34:48,719 --> 00:34:51,080
Speaker 1: dollar company. That's what our guide for this year implies

660
00:34:51,560 --> 00:34:54,440
Speaker 1: UM and growing at you know, ten to eleven percent,

661
00:34:54,560 --> 00:34:56,640
Speaker 1: so still a pretty nice growth rate on a pretty

662
00:34:56,680 --> 00:35:00,279
Speaker 1: large installed base UM and so our organic owth is

663
00:35:00,360 --> 00:35:02,400
Speaker 1: very strong. That's our top priority in terms of our

664
00:35:02,440 --> 00:35:05,320
Speaker 1: allocation of capital. But I will say, and as you noted,

665
00:35:05,360 --> 00:35:08,200
Speaker 1: we've been extremely successful in M and A and UH.

666
00:35:08,320 --> 00:35:11,200
Speaker 1: We continue to believe that extending the geographic reach of

667
00:35:11,200 --> 00:35:13,440
Speaker 1: the footprint as a priority, and and we'll look to

668
00:35:13,560 --> 00:35:15,520
Speaker 1: M and A as a as a tool in that toolbox.

669
00:35:15,560 --> 00:35:17,520
Speaker 1: Will be very disciplined in that, as we always are,

670
00:35:17,560 --> 00:35:19,960
Speaker 1: but I expect that we're gonna use some of our

671
00:35:19,960 --> 00:35:23,759
Speaker 1: balance sheet firepower in that regard. I mean, and you know,

672
00:35:23,880 --> 00:35:25,920
Speaker 1: previous months you must have in years you must have

673
00:35:25,920 --> 00:35:27,680
Speaker 1: had a ton of competition there. But I wonder as

674
00:35:27,760 --> 00:35:29,600
Speaker 1: rates go up, if you have a strong balance sheet

675
00:35:29,600 --> 00:35:32,160
Speaker 1: and cash to spend, you must be finding yourselves as

676
00:35:32,160 --> 00:35:34,200
Speaker 1: some of the only bidder. Sometimes well you know, it's

677
00:35:34,200 --> 00:35:36,520
Speaker 1: still I will say, there's the demand for these assets

678
00:35:36,560 --> 00:35:40,080
Speaker 1: still is vigorous with the private players. Private equity players

679
00:35:40,080 --> 00:35:42,319
Speaker 1: are very active in the space. But I do think

680
00:35:42,360 --> 00:35:45,960
Speaker 1: that you know, times like this, the challenging macro is

681
00:35:46,000 --> 00:35:48,400
Speaker 1: when I think market leaders often have a chance to

682
00:35:48,480 --> 00:35:51,360
Speaker 1: extend their lead, and so I think we're gonna position

683
00:35:51,400 --> 00:35:53,799
Speaker 1: ourselves to do that again. We'll we'll be disciplined, but

684
00:35:53,840 --> 00:35:57,080
Speaker 1: I believe will be have that opportunity. What's your company?

685
00:35:57,760 --> 00:35:59,920
Speaker 1: You know, I'm just looking here, and when we have

686
00:36:00,080 --> 00:36:02,160
Speaker 1: CEOs come in here, oftentimes we asked them kind of

687
00:36:02,640 --> 00:36:05,839
Speaker 1: how did the pandemic impact your company? You've got close

688
00:36:05,880 --> 00:36:09,720
Speaker 1: to twelve thousand employees, uh, your companies based in Silicon Valley.

689
00:36:10,320 --> 00:36:13,640
Speaker 1: How's the pandemic change your business from your company our

690
00:36:13,680 --> 00:36:16,920
Speaker 1: own operations. Yeah, that's a lot of employees too, it is,

691
00:36:17,200 --> 00:36:19,759
Speaker 1: but a huge chunk of those our frontline employees. And

692
00:36:19,800 --> 00:36:21,759
Speaker 1: so they were in the data center still, you know,

693
00:36:21,800 --> 00:36:24,360
Speaker 1: and so we still have an element of our business

694
00:36:24,360 --> 00:36:26,920
Speaker 1: where and to their credit, I think they did an

695
00:36:26,920 --> 00:36:30,640
Speaker 1: extraordinary job of rising to the occasion, navigating a lot

696
00:36:30,680 --> 00:36:33,120
Speaker 1: of difficulties in terms of being there with all the

697
00:36:33,520 --> 00:36:36,560
Speaker 1: you know, all the processes and protections that come with

698
00:36:36,640 --> 00:36:38,600
Speaker 1: throughing that in the in the form of the pandemic

699
00:36:38,600 --> 00:36:41,560
Speaker 1: and dealing with customers through that. Um. But then you know,

700
00:36:41,680 --> 00:36:44,440
Speaker 1: our other a lot of other elements of our staff. UM,

701
00:36:44,520 --> 00:36:47,239
Speaker 1: we did go you know, virtual Um, but you know

702
00:36:47,560 --> 00:36:50,719
Speaker 1: it was funny because we're a huge partner to provider

703
00:36:50,760 --> 00:36:54,720
Speaker 1: to people like Zoom. In fact, as Zoom scaled their infrastructure,

704
00:36:55,080 --> 00:36:58,279
Speaker 1: you know, Eric you wanted Zoom said, hey, couldn't have

705
00:36:58,320 --> 00:37:00,520
Speaker 1: done it without Equinix, And we were very appreciative of

706
00:37:00,560 --> 00:37:02,960
Speaker 1: them as a customer. And but you know, we we

707
00:37:02,960 --> 00:37:05,400
Speaker 1: were very successful in that. I will tell you that

708
00:37:05,480 --> 00:37:07,960
Speaker 1: I'm pushing for us to get back to a you know,

709
00:37:08,000 --> 00:37:10,560
Speaker 1: a hybrid model that because I believe in the power

710
00:37:10,560 --> 00:37:13,800
Speaker 1: of human connection and and the importance of that and innovation,

711
00:37:13,920 --> 00:37:15,879
Speaker 1: and so you know, we, like many others, I think,

712
00:37:15,920 --> 00:37:17,759
Speaker 1: will will end up in a in a hybrid state.

713
00:37:17,880 --> 00:37:20,960
Speaker 1: But in terms of your employees right now, you hiring

714
00:37:21,400 --> 00:37:24,640
Speaker 1: rather than layoffs. We are for sure, Um we are,

715
00:37:25,200 --> 00:37:28,080
Speaker 1: you know in in here I qualified that a little

716
00:37:28,120 --> 00:37:31,680
Speaker 1: bit in saying that, Um, you know we're We're not.

717
00:37:32,160 --> 00:37:35,360
Speaker 1: We're also, like others, being very prudent in a in

718
00:37:35,440 --> 00:37:39,200
Speaker 1: an environment that has some challenging macro factors. And so

719
00:37:39,680 --> 00:37:42,280
Speaker 1: I think G and A, for example, we're gonna really

720
00:37:42,320 --> 00:37:45,640
Speaker 1: try to be very flat and find automation and process

721
00:37:45,680 --> 00:37:48,839
Speaker 1: efficiencies to drive improvements and and keep our head count

722
00:37:48,880 --> 00:37:52,200
Speaker 1: as flat as possible there. But given the demand signal

723
00:37:52,200 --> 00:37:54,400
Speaker 1: we're seeing, we're hiring on our go to market side

724
00:37:54,400 --> 00:37:58,000
Speaker 1: and salespeople, quota bearing headcount, etcetera. And um, you know,

725
00:37:58,080 --> 00:38:01,080
Speaker 1: and and also since our platform is expanding, that means

726
00:38:01,280 --> 00:38:04,320
Speaker 1: new people on the ground, technicians in the data centers, etcetera.

727
00:38:04,400 --> 00:38:06,640
Speaker 1: And so those are areas that were how are they?

728
00:38:07,080 --> 00:38:10,080
Speaker 1: How are those technicians? You know? That's really uh, it's uh,

729
00:38:10,800 --> 00:38:13,759
Speaker 1: it's harder than uh than we'd like. Sometimes I'll tell

730
00:38:13,760 --> 00:38:15,640
Speaker 1: you that it's well, you're not the only ones, right,

731
00:38:15,680 --> 00:38:17,680
Speaker 1: I mean, that's a story for those who are hiring

732
00:38:17,760 --> 00:38:20,680
Speaker 1: right now. It's hard to find the qualified people, that's right.

733
00:38:20,760 --> 00:38:22,960
Speaker 1: That's right, And I think they are. You know, it

734
00:38:23,040 --> 00:38:26,000
Speaker 1: really depends on the job category. I just think, you know,

735
00:38:26,040 --> 00:38:27,920
Speaker 1: I know, you're we're seeing some of these tech laughs

736
00:38:28,000 --> 00:38:29,719
Speaker 1: and these kind of things, but I think they are

737
00:38:29,719 --> 00:38:33,400
Speaker 1: oftentimes not in those high demand roles, right. They're not

738
00:38:33,440 --> 00:38:36,640
Speaker 1: software engineers, they're not technicians, they're not and those continue

739
00:38:36,680 --> 00:38:40,480
Speaker 1: to be very competitive. So going forward here, I mean,

740
00:38:40,760 --> 00:38:43,600
Speaker 1: is there any diversification you need? Are you focusing on

741
00:38:43,880 --> 00:38:46,399
Speaker 1: kind of the core data centers, which seems to be

742
00:38:47,000 --> 00:38:50,080
Speaker 1: an inherently strong growth story. Yeah, I think we're in

743
00:38:50,120 --> 00:38:53,000
Speaker 1: a very great spot. I don't think we need diversification

744
00:38:53,040 --> 00:38:56,000
Speaker 1: to really new areas. But I will say, you know,

745
00:38:56,040 --> 00:38:58,719
Speaker 1: we've we've made a big investment what we call our

746
00:38:58,719 --> 00:39:02,360
Speaker 1: digital services business, which is what people are really looking

747
00:39:02,400 --> 00:39:05,720
Speaker 1: for with you know, the value proposition we deliver global reach.

748
00:39:05,840 --> 00:39:09,080
Speaker 1: We talked about that access to these digital ecosystems we

749
00:39:09,200 --> 00:39:12,959
Speaker 1: cultivate and curate ecosystems inside of our facilities for people

750
00:39:13,000 --> 00:39:15,880
Speaker 1: to interconnect to clouds and networks and as a service

751
00:39:15,920 --> 00:39:18,719
Speaker 1: providers and all these They really get that um, this

752
00:39:18,920 --> 00:39:21,759
Speaker 1: interconnection platform that we have and a track record of

753
00:39:21,840 --> 00:39:24,560
Speaker 1: service excellence. But what we are finding is that people

754
00:39:24,560 --> 00:39:27,200
Speaker 1: want to consume that value proposition in different ways. They

755
00:39:27,200 --> 00:39:29,600
Speaker 1: want it more as a service, more on demand, more

756
00:39:29,640 --> 00:39:32,640
Speaker 1: software enabled, and so you know, I think our diverse

757
00:39:32,680 --> 00:39:36,719
Speaker 1: fasification is coming in evolving our our value proposition in

758
00:39:36,760 --> 00:39:40,240
Speaker 1: those ways. So are you competing then with a WS

759
00:39:40,280 --> 00:39:43,279
Speaker 1: and Microsoft Not really. It's I would say that you know,

760
00:39:43,320 --> 00:39:45,399
Speaker 1: as you look at mostly if you go to any

761
00:39:45,480 --> 00:39:48,480
Speaker 1: large enterprise CEO or even CEOs of service providers who

762
00:39:48,520 --> 00:39:51,400
Speaker 1: are saying, how are we building our infrastructure hybrid and

763
00:39:51,480 --> 00:39:55,359
Speaker 1: multi cloud is really the architectural choice. They absolutely are.

764
00:39:55,480 --> 00:39:58,520
Speaker 1: In fact, are those are your biggest customers. Amazon Web

765
00:39:58,560 --> 00:40:02,600
Speaker 1: Services and Goo. The hyper scalers are significant customers of

766
00:40:02,600 --> 00:40:06,279
Speaker 1: ours because they actually use our infrastructure oftentimes to place

767
00:40:06,360 --> 00:40:09,520
Speaker 1: network nodes. They're on ramps to their clouds, often live

768
00:40:09,560 --> 00:40:12,160
Speaker 1: in our facilities. We have about shared and then we

769
00:40:12,200 --> 00:40:14,680
Speaker 1: have a sort of JV business where we build large

770
00:40:14,680 --> 00:40:19,280
Speaker 1: scale data centers for them. We do that through a

771
00:40:19,360 --> 00:40:22,560
Speaker 1: JV that we have with UH with the Sovereign wealthone

772
00:40:22,560 --> 00:40:26,000
Speaker 1: to Singapore g I c um and UH guy yeah

773
00:40:26,040 --> 00:40:29,320
Speaker 1: and so uh and so that's so they are big customers,

774
00:40:29,560 --> 00:40:31,960
Speaker 1: but most customers are ending up or they're saying, look,

775
00:40:32,000 --> 00:40:34,840
Speaker 1: I'm gonna I may put the even the super majority

776
00:40:34,880 --> 00:40:37,480
Speaker 1: of my workloads in the public cloud over time. But

777
00:40:37,560 --> 00:40:39,879
Speaker 1: there's a variety of things that they need, and they

778
00:40:39,880 --> 00:40:43,160
Speaker 1: want private infrastructure that's proximate to the cloud, and they

779
00:40:43,160 --> 00:40:46,359
Speaker 1: want it geographically distributed. And so that's where we really

780
00:40:46,400 --> 00:40:48,799
Speaker 1: come in as being able to you know, support them

781
00:40:48,800 --> 00:40:51,200
Speaker 1: as they move to hybrid and multi cloud and security.

782
00:40:51,440 --> 00:40:53,840
Speaker 1: Just give us kind of how you've used security of

783
00:40:53,920 --> 00:40:55,759
Speaker 1: data in the cloud. More and more is going into

784
00:40:55,800 --> 00:40:57,920
Speaker 1: the cloud, I know that's a concern for people. It is,

785
00:40:58,400 --> 00:41:00,000
Speaker 1: but I think that, you know, I think the techno

786
00:41:00,000 --> 00:41:02,279
Speaker 1: anology is out there to make that, you know, to

787
00:41:02,480 --> 00:41:07,439
Speaker 1: address those challenges. We're going to increasingly zero trust environment. Um.

788
00:41:07,480 --> 00:41:10,080
Speaker 1: I think, um, you know, companies are using it right. Things.

789
00:41:10,120 --> 00:41:13,120
Speaker 1: We have a lot of customers that are delivering security

790
00:41:13,160 --> 00:41:16,960
Speaker 1: applications and services as part of the ecosystem that lives

791
00:41:16,960 --> 00:41:20,000
Speaker 1: inside platform equinics and so and making those kind of

792
00:41:20,040 --> 00:41:23,319
Speaker 1: things available and allowing them to integrate with cloud services.

793
00:41:23,360 --> 00:41:26,640
Speaker 1: That's a key part of our value problem. All right, Charles,

794
00:41:26,719 --> 00:41:29,160
Speaker 1: thank you so much for joining us. Really appreciate it.

795
00:41:29,160 --> 00:41:32,840
Speaker 1: Fascinating stuff. Charles Myers, uh, CEO of Equinox. That's asta

796
00:41:33,120 --> 00:41:35,520
Speaker 1: trade of stock. E q i X is a the

797
00:41:35,560 --> 00:41:37,759
Speaker 1: ticker to put into your Bloomberg terminal, a reap, but

798
00:41:37,840 --> 00:41:40,480
Speaker 1: really focusing on the text based the cloud business, and

799
00:41:40,520 --> 00:41:42,839
Speaker 1: we know that is a big business. The stock has

800
00:41:42,920 --> 00:41:45,040
Speaker 1: ripped up also the last couple of months. Right, it's

801
00:41:46,120 --> 00:41:50,400
Speaker 1: five hundred uh in the middle of October and now

802
00:41:50,440 --> 00:41:53,080
Speaker 1: you're back up at over seven. Really strong earnings, I think,

803
00:41:53,320 --> 00:41:56,560
Speaker 1: strong demand profile and you know, good execution. I think

804
00:41:56,600 --> 00:41:58,799
Speaker 1: you know that people are are reading into that in

805
00:41:58,880 --> 00:42:00,440
Speaker 1: terms of what the what the future right look look

806
00:42:00,480 --> 00:42:06,360
Speaker 1: all right, cho It's great stuff. We appreciate it. Thanks

807
00:42:06,360 --> 00:42:09,839
Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe

808
00:42:09,880 --> 00:42:13,600
Speaker 1: and listen to interviews of Apple Podcasts or whatever podcast

809
00:42:13,640 --> 00:42:17,160
Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at

810
00:42:17,200 --> 00:42:21,040
Speaker 1: Matt Miller three. On Fall Sweeney, I'm on Twitter at

811
00:42:21,040 --> 00:42:23,880
Speaker 1: pt Sweeney Before the podcast. You can always catch us

812
00:42:23,960 --> 00:42:25,359
Speaker 1: worldwide at Bloomberg Radio