WEBVTT - Bloomberg Businessweek Weekend - October 17th, 2025 0:00:00.360 --> 0:00:07.280 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.720 --> 0:00:13.039 This is Bloomberg Business Week Daily reporting from the magazine 0:00:13.039 --> 0:00:17.640 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.680 --> 0:00:22.560 and trends shaping today's complex economy. Plus global business finance 0:00:22.600 --> 0:00:26.320 and tech news as it happens. The Bloomberg Business Weekdaily 0:00:26.440 --> 0:00:31.520 Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:32.159 --> 0:00:35.800 Harveryone, Welcome to the Bloomberg Business Week Weekend Podcast. Earning 0:00:35.840 --> 0:00:37.800 season is underway, and the US that kicked off with 0:00:37.800 --> 0:00:41.000 the big banks this past week, also fedcher J. Powell 0:00:41.000 --> 0:00:43.440 signaled the US Central Bank is on track to deliver 0:00:43.560 --> 0:00:46.600 another quarter point interest rate cut later on this month. 0:00:47.120 --> 0:00:49.919 And then there's the US government shutdown now in its 0:00:50.000 --> 0:00:52.559 third week. You could read all about it at Bloomberg 0:00:52.600 --> 0:00:55.880 dot com and on the Bloomberg and you know about 0:00:55.880 --> 0:00:59.760 that government shutdown that meant another week without US economic 0:00:59.800 --> 0:01:03.320 days from the US government. And so we lean big 0:01:03.360 --> 0:01:05.640 time on voices from the c suite for clues on 0:01:05.680 --> 0:01:09.160 the macro environment. This hour, we'll hear from the CFO 0:01:09.240 --> 0:01:12.960 of Levi Strauss and the CEO of the industrial supplies 0:01:13.040 --> 0:01:16.040 company Fasten. All they've got great reads on the US 0:01:16.040 --> 0:01:18.880 economy and the c suite is really where we start 0:01:18.920 --> 0:01:22.360 this hour, with one CEO in particular, and one voice 0:01:22.400 --> 0:01:25.320 on Wall Street that we all pay attention to, JP 0:01:25.440 --> 0:01:29.360 Morgan Chase CEO Jamie Diamond. JP Morgan and the other 0:01:29.360 --> 0:01:32.039 big banks, as we mentioned, reported earnings this week and 0:01:32.480 --> 0:01:36.199 generally speaking, all appear to be in good health. Deal 0:01:36.240 --> 0:01:39.320 making is back, and trading profits are booming. And yet 0:01:39.360 --> 0:01:42.560 there were warnings from executives that have tempered the mood 0:01:42.920 --> 0:01:46.240 on consumers and some signs of sectors that are cooling. 0:01:46.760 --> 0:01:49.280 A warning too from Jamie Diamond, who used his bank's 0:01:49.360 --> 0:01:53.920 losses from auto lender Tricolor Holdings to say there's never 0:01:54.200 --> 0:01:58.160 just one problem or one cockroach. In his own words, 0:01:58.480 --> 0:02:01.120 equip some of his non bank rive have taken as 0:02:01.280 --> 0:02:02.840 a shot at them, you know, we. 0:02:02.880 --> 0:02:06.920 Think we're okay, and other stuff which my antenna goes 0:02:07.000 --> 0:02:09.680 up with leeds like that happened in I spy shouldn't 0:02:09.720 --> 0:02:12.799 say this, but when you see one cockroach, they're probably more, 0:02:13.320 --> 0:02:15.840 you know, and so we we should everyone should be 0:02:15.840 --> 0:02:17.080 four more than this one. 0:02:17.240 --> 0:02:21.160 That's JP Morgan's Jamie Diamond now Blue Owl Capital boss 0:02:21.160 --> 0:02:24.480 Mark Lipschaltz fired back. He came on Bloomberg. He said 0:02:24.520 --> 0:02:27.360 the issue was in loans that banks led, So Jamie 0:02:27.400 --> 0:02:29.560 Diamond should be scaring his own books if he wants 0:02:29.560 --> 0:02:32.480 to squash more bugs. Read more about the back and forth. 0:02:32.600 --> 0:02:35.399 It's on the Bloomberg and at Bloomberg dot com. Other 0:02:35.440 --> 0:02:38.320 companies kicking off earnings too this week, and it's kind 0:02:38.360 --> 0:02:42.520 of no surprise. AI artificial intelligence talk about that has 0:02:42.560 --> 0:02:45.920 been dominating earning's conversations for the past year, and that 0:02:45.960 --> 0:02:50.240 includes AI. In the real estate market. Prologists develops and 0:02:50.280 --> 0:02:53.440 manages logistical warehouses for the biggest companies out there, with 0:02:53.520 --> 0:02:57.360 more than one point three billion square feet in twenty countries. 0:02:57.880 --> 0:03:01.359 Prologists reported better than expected quarter earnings this past week, 0:03:01.480 --> 0:03:06.320 boosted its forecast, and discussed data center opportunities. Dan Letter 0:03:06.400 --> 0:03:09.639 is president and incoming CEO of Prologist. He takes over 0:03:09.680 --> 0:03:12.560 a CEO in January. He joined Bloomberg's David Gora. 0:03:12.440 --> 0:03:15.680 And me coming off this earnings call. This was certainly 0:03:15.760 --> 0:03:19.040 a topic for us. We had a tremendous quarter. As 0:03:19.080 --> 0:03:21.360 a matter of fact, we broke a record this quarter 0:03:21.440 --> 0:03:25.960 for leasing. We leased sixty two million square feet of 0:03:26.040 --> 0:03:30.160 space throughout our one point three billion square foot portfolio. 0:03:30.880 --> 0:03:34.920 And you think about that in context, sixty two million 0:03:34.960 --> 0:03:39.320 square feet is the equivalent of leasing Central Park in 0:03:39.400 --> 0:03:44.480 Manhattan twice over again in one quarter. So our team 0:03:44.720 --> 0:03:48.760 working tirelessly around the world least one million square feet 0:03:49.240 --> 0:03:52.240 a business day during the third quarter. And certainly these 0:03:52.280 --> 0:03:56.440 macro business trends are telling by our customers, who are 0:03:56.560 --> 0:03:57.720 the frontline of the economy. 0:03:58.240 --> 0:04:00.600 You look at the softer data and there is still 0:04:00.600 --> 0:04:03.120 some anxiety among a lot of business leaders about where 0:04:03.160 --> 0:04:05.520 things are headed. Maybe that's restricting them from making some 0:04:05.600 --> 0:04:09.119 of the capex expenditures that they would have otherwise. You're 0:04:09.160 --> 0:04:12.040 detailing for us very strong numbers, and I wonder what 0:04:12.080 --> 0:04:14.840 that says to you just about the capacity of these 0:04:14.880 --> 0:04:19.520 business leaders to look through or pass the uncertainty surrounding policy, 0:04:19.560 --> 0:04:21.719 including trade policy. Just give us a sense of the 0:04:21.720 --> 0:04:23.800 moment that we're in right now. Is as you understand 0:04:23.839 --> 0:04:25.839 it from talking to your customers about how they're feeling 0:04:25.880 --> 0:04:27.760 about the business climate going forward. 0:04:28.720 --> 0:04:31.440 Sure, it's a great question. One of the things we're 0:04:31.480 --> 0:04:34.760 most proud of at Prologists is our customer franchise. We 0:04:34.800 --> 0:04:37.599 have unique proprietary data, and we have unique relationships just 0:04:37.640 --> 0:04:40.760 given the size and scale these relationships, and after what 0:04:40.880 --> 0:04:44.279 has really been two to three years of uncertainty, going 0:04:44.279 --> 0:04:46.760 back to rate hikes two and a half years ago, 0:04:47.400 --> 0:04:49.799 we see our customers actually getting off their back foot. 0:04:49.839 --> 0:04:53.160 What we've seen over this last quarter is actually customers 0:04:53.240 --> 0:04:55.800 moving from caution to optimism. 0:04:56.080 --> 0:05:01.000 Huh wow. Why because things are getting settled in terms 0:05:01.040 --> 0:05:05.200 of trade tariff? Like, what is it that has calmed 0:05:05.680 --> 0:05:07.240 some of your customers. 0:05:07.920 --> 0:05:11.800 I think our customers realized, after a couple of sluggish 0:05:11.880 --> 0:05:14.760 years of not making many decisions, that they have to 0:05:14.800 --> 0:05:16.720 make long term decisions. And that's what they do when 0:05:16.760 --> 0:05:19.040 they do business with Prologis, and they have to look 0:05:19.080 --> 0:05:21.400 through the short term noise in order to ensure that 0:05:21.440 --> 0:05:23.560 they're positioned for growth going forward. 0:05:23.640 --> 0:05:26.920 So you're talking about Amazon Home Depot, FedEx Ups, Giga 0:05:26.920 --> 0:05:29.280 cloud Technology. I mean, these are some of your big customers. 0:05:29.279 --> 0:05:31.920 So you're talking about these guys are feeling more sure 0:05:31.960 --> 0:05:34.279 about the outlook than maybe they did over the last 0:05:34.320 --> 0:05:35.160 couple of years. 0:05:35.600 --> 0:05:37.840 Yeah, precisely. As a matter of fact, coming out of 0:05:37.920 --> 0:05:41.240 a cycle, we're really in just a classic real estate 0:05:41.320 --> 0:05:44.279 cycle right now, and what you're seeing typically at this 0:05:44.320 --> 0:05:47.000 point in the cycle is it's the big, well capitalized 0:05:47.000 --> 0:05:49.960 customers that lead the way out of this part of 0:05:49.960 --> 0:05:50.400 the cycle. 0:05:51.400 --> 0:05:53.440 This is a basic question you forgive me for. But 0:05:53.480 --> 0:05:56.000 when we talk about warehouses, what are we talking about. 0:05:56.000 --> 0:05:59.080 Are these just simply places to store stuff or are 0:05:59.080 --> 0:06:00.680 they places where there's a lot of movement, a lot 0:06:00.720 --> 0:06:02.640 of products coming in and out. When we talk about 0:06:02.640 --> 0:06:04.200 sort of the bread and butter of your business, what 0:06:04.920 --> 0:06:06.160 are you building? What are you leasing out? 0:06:06.880 --> 0:06:11.200 Yeah, thanks for that question. We own nearly six thousand buildings. 0:06:12.240 --> 0:06:16.000 These buildings are located in twenty countries in markets that 0:06:16.040 --> 0:06:19.160 represent about seventy eight percent of the world GDP. As 0:06:19.200 --> 0:06:21.440 a matter of fact, in twenty twenty four, we had 0:06:21.440 --> 0:06:24.400 the equivalent of nearly three percent of the world GDP 0:06:24.600 --> 0:06:28.360 go through these buildings. Our focus in building this portfolio, 0:06:28.520 --> 0:06:32.440 curating this portfolio over the last forty two years is 0:06:32.600 --> 0:06:37.520 having the highest quality, best located logistics, real estate close 0:06:37.720 --> 0:06:38.680 to consumers. 0:06:39.720 --> 0:06:44.200 So where are you geographically building out the most and 0:06:44.400 --> 0:06:46.359 you know, where are you looking to kind of increase 0:06:46.400 --> 0:06:49.240 your square footage or buy properties or by land. 0:06:50.400 --> 0:06:54.040 Well, the way we've set this organization up is our 0:06:54.080 --> 0:06:57.880 teams are calibrated to look for good deals around the world, 0:06:57.960 --> 0:07:02.040 and we're heavily focused, certainly this year on build the 0:07:02.080 --> 0:07:04.240 suits with our customers. We're actually going to we're on 0:07:04.320 --> 0:07:07.000 track for maybe our highest build to suit volume ever 0:07:07.080 --> 0:07:08.719 And what does that mean. That means we have a 0:07:08.800 --> 0:07:12.200 contract in place with these customers before we start building 0:07:12.320 --> 0:07:16.520 for them, and we're seeing that broad based across most 0:07:16.520 --> 0:07:20.200 of the sectors as well as geography spread throughout the world. 0:07:20.640 --> 0:07:22.280 I bet you can't do an interview without being asked 0:07:22.280 --> 0:07:24.240 about AI, So forgive me, We're going to do it, 0:07:24.240 --> 0:07:25.920 and I want to ask about it in two ways. 0:07:25.920 --> 0:07:27.520 The first is sort of how it's changing the way 0:07:27.520 --> 0:07:30.160 that you conduct your business, and then the second question 0:07:30.200 --> 0:07:32.560 is picking up on what Carol said, you looking at 0:07:32.560 --> 0:07:35.200 the demand for data centers maybe changing your business tach 0:07:35.240 --> 0:07:38.960 as well. Where do you see opportunity as this revolutionist 0:07:38.960 --> 0:07:42.000 it's called continues and there's the need for more space 0:07:42.040 --> 0:07:43.800 for processing all of this data. 0:07:45.240 --> 0:07:49.280 Yeah, it's AI is here, and it's big, and it's 0:07:49.280 --> 0:07:52.000 big at Prologious, certainly, we have all sorts of different 0:07:52.120 --> 0:07:56.760 operational and tools that we're building to make our teams 0:07:56.760 --> 0:07:59.800 more efficient and to be able to help them move faster. 0:08:00.120 --> 0:08:03.080 But when you think of AI and prologis, we announced 0:08:03.080 --> 0:08:08.600 today we now have five point two gigawatts of power 0:08:08.960 --> 0:08:12.000 either secured or in the advanced stages of being secured 0:08:12.560 --> 0:08:15.200 in sites mostly Tier one tier two sites in the 0:08:15.240 --> 0:08:18.240 United States, and then the tier one market's called flap 0:08:18.280 --> 0:08:20.320 D or the double M in. 0:08:21.880 --> 0:08:22.240 Europe. 0:08:22.440 --> 0:08:26.120 So Prologius is now We've long been in the higher 0:08:26.120 --> 0:08:28.440 and better use business, but again given that footprint we 0:08:28.520 --> 0:08:32.480 have close to these consumers. Well, the next wave in 0:08:32.520 --> 0:08:37.560 the modern economy is the digital economy, and AI and 0:08:37.640 --> 0:08:41.440 data centers are the logistics of that digital economy. 0:08:41.480 --> 0:08:44.120 We're talking with Dan Letter. He's president of Prologists. He 0:08:44.280 --> 0:08:47.720 is incoming president, incoming CEO excuse me, takes over that 0:08:47.760 --> 0:08:51.560 spot come January. Wait, Dan, so give you an idea 0:08:51.960 --> 0:08:55.079 just to have explain your business. How much is logistical 0:08:55.120 --> 0:08:58.920 warehousing right now? How much is data center? And where 0:08:58.920 --> 0:09:02.200 do you see the most growth going forward, especially on 0:09:02.240 --> 0:09:07.360 a day where Meta, Microsoft, black Rock, there's more all 0:09:07.400 --> 0:09:11.000 doing data center deals and it feels like a lot's 0:09:11.040 --> 0:09:13.160 happening in Texas to point that out as well. So 0:09:13.200 --> 0:09:14.960 give us an idea of your mix today and where 0:09:14.960 --> 0:09:16.600 the growth is happening. 0:09:17.280 --> 0:09:20.160 Well, I look at our growth in our base portfolio. 0:09:20.800 --> 0:09:24.000 We own our control fourteen thousand acres of land close 0:09:24.040 --> 0:09:27.240 to these consumption centers that I mentioned. We can build 0:09:27.280 --> 0:09:30.920 out another two hundred and forty million square feet out 0:09:30.960 --> 0:09:34.679 of that land bank. That's a tremendous amount of space. 0:09:35.440 --> 0:09:40.560 And when it comes to data centers, this power that 0:09:40.600 --> 0:09:43.680 we've secured, We've long been in the higher and better 0:09:43.760 --> 0:09:46.679 use business. Think about the fact that logistics and warehouses 0:09:46.720 --> 0:09:49.439 is typically the cheapest house on the block. We've always 0:09:49.480 --> 0:09:52.000 been in the business of optimizing that real estate value 0:09:52.040 --> 0:09:56.240 for our investors, and data centers are certainly a trend 0:09:56.280 --> 0:09:58.040 right now that we're able to capitalize on given the 0:09:58.080 --> 0:10:00.000 footprint and the raw material that we own and control. 0:10:00.520 --> 0:10:02.439 I sort of note a headline here acrossing the Bloomberg 0:10:02.520 --> 0:10:05.000 terminal to judge is blocked federal firings during the government 0:10:05.040 --> 0:10:07.240 shutdown for now. We're talking about that. A few moments ago, 0:10:07.320 --> 0:10:09.240 as we were talking about the Beige book from the 0:10:09.240 --> 0:10:11.280 Federal Reserve DAN and what that was telling us about 0:10:11.280 --> 0:10:13.400 the state of this economy. And one thing they're in 0:10:13.559 --> 0:10:17.280 is how difficult it is to find workers, particularly workers 0:10:17.280 --> 0:10:19.760 to do construction. And I think a theme to the 0:10:19.800 --> 0:10:23.720 AI story is amid all of this demand, it's hard 0:10:23.720 --> 0:10:26.160 to get folks to build the data centers that we 0:10:26.240 --> 0:10:28.960 need to buffet all of it. And I wonder if 0:10:28.960 --> 0:10:31.240 your company is dealing with that as well, just the 0:10:31.480 --> 0:10:34.000 difficulty of kind of keeping pace with how fast all 0:10:34.040 --> 0:10:34.600 this is moving. 0:10:35.640 --> 0:10:38.200 Yeah, thanks for that question. I think about that as 0:10:38.720 --> 0:10:43.320 we look at what is the replacement cost rent to 0:10:43.400 --> 0:10:47.640 build the next marginal building, whether it's logistics or data centers. 0:10:47.679 --> 0:10:50.320 And we look at that right now, and the cost 0:10:50.800 --> 0:10:54.760 the rent to build that next building is actually twenty 0:10:54.840 --> 0:10:59.160 five percent higher than market rents today. And then I 0:10:59.200 --> 0:11:02.200 look at that relative to our in place rents today, 0:11:02.400 --> 0:11:06.079 it's actually nearly forty five percent. And one of the 0:11:06.160 --> 0:11:08.320 key issues is the cost to build are getting that 0:11:08.400 --> 0:11:10.640 much more expensive and labor is certainly a factor there. 0:11:10.960 --> 0:11:13.559 Interesting. Hey, one thing just to follow on, going back 0:11:13.559 --> 0:11:15.760 to data center and your build out. You talked about 0:11:16.120 --> 0:11:19.880 also the acquisition of five point two gigawatts of power. 0:11:19.960 --> 0:11:22.480 It's a lot. How much though is in terms of 0:11:22.480 --> 0:11:24.679 the build out for data centers. You've got to track 0:11:24.720 --> 0:11:27.199 it with having access to power and does that slow 0:11:27.240 --> 0:11:29.240 some of the buildout just got about thirty seconds. 0:11:29.840 --> 0:11:32.800 You know, this five point two gigawatts that we're quoting 0:11:33.320 --> 0:11:35.720 is just a portion of the universe of opportunities we 0:11:35.760 --> 0:11:38.840 actually have given our size and scale with our six 0:11:38.840 --> 0:11:41.760 thousand buildings as fourteen thousand acres of land. We already 0:11:41.800 --> 0:11:44.640 own this land in these buildings at logistics bases, and 0:11:44.679 --> 0:11:46.840 so we brought an in house expertise. We have a 0:11:46.920 --> 0:11:50.280 very large energy business. We've got one gigawatt of power 0:11:50.280 --> 0:11:53.360 that will be generating off our rooftops by the end 0:11:53.360 --> 0:11:55.400 of twenty twenty five. So we've been building that energy 0:11:55.440 --> 0:11:58.360 capability that gives us just a better relationship with the 0:11:58.360 --> 0:12:01.280 power companies. Yeah, and so we're in great shape there. 0:12:01.400 --> 0:12:04.600 That was Dan Letter, president and incoming CEO of Prologists, 0:12:04.800 --> 0:12:06.920 along with Bloomberg's David Gore, who will join us a 0:12:06.920 --> 0:12:09.840 little bit later on as well. Still ahead on Bloomberg 0:12:09.880 --> 0:12:13.400 Business Week is the head to toe Denim lifestyle paying 0:12:13.440 --> 0:12:15.880 off in the age of tariffs. We hear from the 0:12:15.880 --> 0:12:19.360 CFO of the company that started it all, Levi Strauss. 0:12:19.800 --> 0:12:23.320 Consumer strength really strong. That's where we were able to 0:12:23.400 --> 0:12:26.600 raise the fully guidance and our product pipeline hasn't been 0:12:26.679 --> 0:12:30.600 stronger now if you go outside the US and international 0:12:30.679 --> 0:12:33.360 business was up in the high signal digit and so 0:12:33.760 --> 0:12:37.280 Asia had a strong quarder consumer strong. Europe had a 0:12:37.320 --> 0:12:40.280 decent quarda consumer in a better place than so is 0:12:40.360 --> 0:12:41.160 Latin America. 0:12:41.679 --> 0:12:44.959 You're listening to Bloomberg Business Week. This is Bloomberg. 0:12:52.040 --> 0:12:56.040 You're listening to the Bloomberg Business Weekdaily podcast. Catch US 0:12:56.120 --> 0:12:59.520 live weekday afternoons from two to five pm Eastern. Listen 0:12:59.559 --> 0:13:03.160 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:13:03.280 --> 0:13:06.079 or watch US live on YouTube well. 0:13:06.080 --> 0:13:09.079 Earlier this month, Levi Strauss raised its full year outlook, 0:13:09.160 --> 0:13:11.760 warned that tariffs are starting to bite as well. The 0:13:11.760 --> 0:13:14.520 company's gross margin improved due to higher prices and a 0:13:14.600 --> 0:13:19.000 larger volume of sales through more profitable channels. So is 0:13:19.080 --> 0:13:23.000 the head to toe denim lifestyle paying off. Levi Strauss, 0:13:23.040 --> 0:13:27.480 chief financial and Chief Growth Officer Harmit Singh expects accelerated growth, 0:13:27.760 --> 0:13:32.560 expanding margins, and consumer resilience to overcome tariff uncertainty. He 0:13:32.679 --> 0:13:36.280 joined me alongside Bloomberg senior equities reporter Bailly Lipshaltz. 0:13:37.080 --> 0:13:40.920 We had a real strong QUARTERA for consecutive quarters of 0:13:40.960 --> 0:13:45.360 high single digit growth and record gross margins, as well 0:13:45.400 --> 0:13:47.400 as the fact that we were able to raise up 0:13:47.440 --> 0:13:53.600 fully of guidance as well as gross margin and EPs expectations. 0:13:54.320 --> 0:13:55.360 Overall, as a. 0:13:55.360 --> 0:14:00.520 Company, we're a stronger and a higher performing company defined 0:14:00.520 --> 0:14:05.160 by accelerated growth, expanding margins, and higher return on invested capital. 0:14:05.160 --> 0:14:09.400 To your question about the consumer, the consumer is largely 0:14:09.480 --> 0:14:13.520 being resilient. You know, our products have really well segmented. 0:14:14.320 --> 0:14:17.520 You know, we have Blue Tap, which is our premium 0:14:17.600 --> 0:14:19.520 high pinnacle product and. 0:14:19.440 --> 0:14:23.320 That's doing well. We've introduced that in the US, so far, 0:14:23.440 --> 0:14:23.840 so good. 0:14:24.240 --> 0:14:28.320 We have a Redtap product that is basically marketed to 0:14:28.520 --> 0:14:33.080 consumers who earn between one hundred thousand and over and that's, 0:14:33.160 --> 0:14:35.280 you know, based on our results, really done well. And 0:14:35.320 --> 0:14:39.000 then we have you know, a signature product sold through 0:14:39.200 --> 0:14:42.800 Walmart that again had a banner coda and that's for 0:14:43.200 --> 0:14:47.080 you know, lower income consumers. So consumer strength really strong. 0:14:47.600 --> 0:14:50.120 That's where we're able to raise the fullier guidance, and 0:14:50.160 --> 0:14:53.200 our product pipeline hasn't been stronger. Now if you go 0:14:53.280 --> 0:14:57.120 outside the US and international business was up in the 0:14:57.200 --> 0:15:00.280 high signal digit and so Asia had a strong order 0:15:00.360 --> 0:15:04.440 consumer strong Europe had a decent quarder consumer in a 0:15:04.440 --> 0:15:06.520 better place than so is Latin America. 0:15:06.560 --> 0:15:07.760 Well, I'm just going to lay it out for you. 0:15:07.800 --> 0:15:10.120 I think I bought my first pair of Levi's in 0:15:10.160 --> 0:15:12.480 a long time, just a couple of months ago. My daughter, 0:15:12.480 --> 0:15:14.960 who's twenty two, so much younger than me, has been 0:15:14.960 --> 0:15:17.920 buying Levi's for a while. So, Bailey, I mean they're back. 0:15:18.000 --> 0:15:21.440 I go into the store in downtown in the village 0:15:21.480 --> 0:15:22.800 and yeah, it's packed. 0:15:22.920 --> 0:15:25.720 Well, you get a partnership with Beyonce, all the marketing 0:15:25.760 --> 0:15:28.280 you guys are spending in terms of targeting both young 0:15:28.320 --> 0:15:31.400 and older generations. But Harmeet, I want to ask about tariffs. 0:15:31.520 --> 0:15:36.080 So Levi expects tariffs from China about thirty percent, but 0:15:36.160 --> 0:15:38.600 increase expectations of twenty percent from the rest of the world. 0:15:39.000 --> 0:15:42.520 Where are you sourcing your genes materials? Is it more 0:15:42.880 --> 0:15:45.560 are you more exposed to that doubling in terms of 0:15:45.800 --> 0:15:49.000 are you getting materials from Vietnam in place of China? 0:15:49.320 --> 0:15:49.560 Yeah? 0:15:49.600 --> 0:15:53.520 So, or we're taking a holistic approach as we are 0:15:53.640 --> 0:15:57.320 able to offset the tariff impact. You know, as you 0:15:57.360 --> 0:15:59.520 think about this year, we raise guidance in the top 0:15:59.560 --> 0:16:02.640 line and bottom line and gross margin. So you know 0:16:02.680 --> 0:16:06.080 we've been able to withstand that your specific question, Bailey, 0:16:07.240 --> 0:16:12.160 we source about one percent we import into the US 0:16:12.160 --> 0:16:15.800 from China, a little over a percent from India most 0:16:15.840 --> 0:16:19.760 of and Vietnam is in the mid to high single digits. 0:16:19.840 --> 0:16:23.080 So most of our imports are from the Southeast Asian 0:16:23.240 --> 0:16:27.720 countries think Bangladesh, think Pakistan. 0:16:27.520 --> 0:16:30.000 And the rest of Asia. 0:16:30.520 --> 0:16:33.760 The way we think about our supply chain is fairly 0:16:33.800 --> 0:16:38.680 well diversified. We import from about twenty countries into the US. 0:16:38.760 --> 0:16:42.160 Sixty percent of our businesses outside the US, and so 0:16:42.640 --> 0:16:46.840 we're well positioned to mitigate and offset tariffs. And the 0:16:46.840 --> 0:16:50.160 way we are thinking about the holistic approach given that 0:16:50.360 --> 0:16:53.800 volume is driving a big piece of our you know, 0:16:54.040 --> 0:16:59.840 revenue momentum, and we have tenured vendor relationships, we're working 0:16:59.840 --> 0:17:04.680 with the vendors. We're looking at different cost efficiencies across 0:17:04.720 --> 0:17:08.560 our organization as well as you know, being very thoughtful 0:17:08.600 --> 0:17:09.320 about pricing. 0:17:09.680 --> 0:17:11.560 So let me just ask you though you guys, did 0:17:11.680 --> 0:17:14.320 you know you mentioned you raised your full yer outlook, 0:17:14.760 --> 0:17:17.960 you did warrant that tariffs are starting to bite profit 0:17:18.200 --> 0:17:20.719 profitability to measure by gross margins improves, so these are 0:17:20.760 --> 0:17:25.080 the good stuff. But again that tariffs are starting to bite, Harmie, 0:17:25.119 --> 0:17:27.920 can you tell us what that means? What the bite 0:17:27.920 --> 0:17:33.000 of tariffs? When? When? How much you know any color 0:17:33.040 --> 0:17:33.600 around that? 0:17:34.400 --> 0:17:34.800 Sure? 0:17:35.040 --> 0:17:37.159 So you know, overall, you know, we were able to 0:17:37.240 --> 0:17:41.879 raise top line and bottom line guidance despite absorbing tariffs, 0:17:41.920 --> 0:17:45.040 and so we are able to mitigate it. To the 0:17:45.160 --> 0:17:49.879 question about tariffs, Uh, you know, tariffs were introduced on 0:17:50.000 --> 0:17:53.480 Liberation Day. We normally buy our products, you know, six 0:17:53.520 --> 0:17:57.480 months in advance, and so you know, we're working through 0:17:58.720 --> 0:18:02.560 you know, our efforts and we've got different leavers to 0:18:02.880 --> 0:18:04.879 kind of position its who you take. Quarter three, the 0:18:06.280 --> 0:18:09.760 Quarterbach has reported gross margins are record, So we're able 0:18:09.800 --> 0:18:12.440 to offset taffs because we've got other things working for us, 0:18:12.800 --> 0:18:16.000 you know, as we grow our women's business, our direct 0:18:16.000 --> 0:18:20.399 to consumer business, and international, all of which are a 0:18:20.480 --> 0:18:25.280 creative to gross margins and allow us to mitigate and 0:18:25.800 --> 0:18:29.720 offset some of the terriff exposure. Quarter four, we did 0:18:29.760 --> 0:18:33.280 guide gross margins to be slightly down versus a year ago, 0:18:33.640 --> 0:18:35.960 and had it not been for tariffs, you know, we'd 0:18:36.000 --> 0:18:39.320 have grown gross margins. But overall, as we think about 0:18:39.359 --> 0:18:43.400 the year, we'll report again another year of record gross margins. 0:18:43.600 --> 0:18:46.760 So we're working on leavers for twenty twenty six. The 0:18:46.800 --> 0:18:49.560 good news is we'll end the year stronger and we 0:18:49.680 --> 0:18:53.320 believe a well positioned to have another strong year in 0:18:53.440 --> 0:18:54.480 twenty twenty six. 0:18:54.720 --> 0:18:56.919 And Carol, we've talked with a good friend, Peter Atwater 0:18:56.920 --> 0:18:59.560 for quite some time about that case shaped recovery where 0:18:59.680 --> 0:19:02.280 people who are well off are doing much better than 0:19:02.280 --> 0:19:04.560 those really in the bottom quintile. 0:19:05.240 --> 0:19:05.760 Harmie. 0:19:05.840 --> 0:19:08.000 When you look at your goods, when you look at 0:19:08.000 --> 0:19:10.920 the ability to raise prices from the impact of tariffs, 0:19:11.240 --> 0:19:14.879 which products are you able to more easily raise prices 0:19:14.880 --> 0:19:17.040 where you aren't going to see consumers push away? And 0:19:17.119 --> 0:19:19.240 how are you thinking about that strategy as it relates 0:19:19.280 --> 0:19:21.639 to say, the genes that you do sell through a 0:19:21.680 --> 0:19:24.120 Walmart where you don't have that gross margint going direct 0:19:24.119 --> 0:19:27.040 to consumer, and you do have likely at least when 0:19:27.040 --> 0:19:29.320 we look at the data consumer who's feeling the pinch 0:19:29.520 --> 0:19:31.320 of inflation broadly speaking. 0:19:31.640 --> 0:19:34.240 Yeah, and so the first thing Baily to your question 0:19:34.760 --> 0:19:39.479 is our products have well segmented depending on the income 0:19:39.560 --> 0:19:42.840 profile of different consumers. I talk blue tab, red tab 0:19:43.280 --> 0:19:50.119 and signature. Signature is what's sold into the lower income consumer. 0:19:50.320 --> 0:19:53.520 We've been very thoughtful about pricing. We're leading with product 0:19:53.560 --> 0:19:56.719 innovation rather than price, and so we're doing what we 0:19:56.760 --> 0:20:00.199 can to maintain a price point. It is evident in 0:20:00.280 --> 0:20:03.040 quarter three Signature, for example, I think is up in 0:20:03.119 --> 0:20:06.479 the load double digits for the year. As we think about, 0:20:07.040 --> 0:20:09.920 you know, our other products. The good news for us 0:20:10.080 --> 0:20:13.639 is our product pipeline has never been stronger. You know, 0:20:13.760 --> 0:20:16.800 we're leading with loose and baggy while at the same 0:20:16.840 --> 0:20:20.000 time selling a lot of slim and skinny both for 0:20:20.080 --> 0:20:24.000 him and her. You know, we've got wonderful you know, 0:20:24.080 --> 0:20:28.080 waist up products to think trucker jackets, think linen shirts, 0:20:28.119 --> 0:20:29.080 et cetera, et cetera. 0:20:29.560 --> 0:20:31.880 And so as a company. 0:20:31.440 --> 0:20:35.479 We're making this pivot to be more of a denim 0:20:35.520 --> 0:20:40.360 lifestyle retailer going forward. Our past was all about denim. 0:20:40.720 --> 0:20:44.000 Our future is going to be about denim lifestyle. 0:20:44.720 --> 0:20:45.960 I just want to know, do you really have a 0:20:45.960 --> 0:20:48.560 pair of baggy barrel jeans. I can't get my head 0:20:48.560 --> 0:20:50.879 around them. I'm trying, I'm trying. I'm just I haven't 0:20:50.880 --> 0:20:53.600 done it. I haven't done it. Rmid, What I do 0:20:53.640 --> 0:20:55.840 want to ask you to is you guys have had 0:20:55.880 --> 0:20:57.640 kind of a mission, a goal to get to ten 0:20:57.680 --> 0:20:59.679 billion in sales by twenty twenty seven. I think you 0:20:59.720 --> 0:21:02.040 may adjusted a little bit. I think also a fifteen 0:21:02.080 --> 0:21:05.359 percent EBIT margin. Could you reach fifteen percent in the 0:21:05.359 --> 0:21:07.639 next few years even if sales have not hit that 0:21:07.720 --> 0:21:10.119 ten billion, you know, talk to us a little bit 0:21:10.119 --> 0:21:10.879 about that mission. 0:21:11.640 --> 0:21:11.880 Yeah. 0:21:11.960 --> 0:21:14.920 No, you know, we gave out the expectation of ten 0:21:15.040 --> 0:21:18.840 billion and fifteen percent on I invested Day in the 0:21:18.840 --> 0:21:22.480 middle of June twenty twenty two. Since then, you know, 0:21:23.160 --> 0:21:26.560 there's been a lot of change and a lot of uncertainty. 0:21:26.840 --> 0:21:30.280 As a company, we've kind of, you know, navigated our 0:21:30.320 --> 0:21:33.520 way through uncertainty. We haven't given a new date on 0:21:33.600 --> 0:21:37.080 the ten billion and the twenty and the fifteen percent. 0:21:38.000 --> 0:21:41.640 Our thinking is we'll probably do that sometime next year. 0:21:41.920 --> 0:21:46.600 But your question, the company that we are building and 0:21:46.640 --> 0:21:49.960 the company that has got the foundation given way were 0:21:50.000 --> 0:21:53.000 ending this year, So you take twenty twenty five, we'll 0:21:53.119 --> 0:21:55.159 end about six percent organic growth. 0:21:55.520 --> 0:21:58.199 Last year it was three percent. The year before that 0:21:58.280 --> 0:21:58.919 it was flat. 0:22:00.080 --> 0:22:03.400 Thinking EBIT margins this year we lend about mid levens. 0:22:03.800 --> 0:22:05.960 Last year it was in the mid tens. The previous 0:22:06.040 --> 0:22:08.120 year it was about nine. So we've seen a steady 0:22:08.200 --> 0:22:11.359 progress and our view is we probably get to the 0:22:11.400 --> 0:22:14.199 fifteen percent faster than we get to the ten billion. 0:22:14.680 --> 0:22:21.320 But really a company that is steadily delivering mid single 0:22:21.400 --> 0:22:25.520 digit growth in a category that probably grows a little 0:22:26.359 --> 0:22:26.879 south of that. 0:22:27.040 --> 0:22:29.879 So our view is that we will. 0:22:30.160 --> 0:22:32.680 We are market leaders now in the US, number one 0:22:32.680 --> 0:22:36.080 in men's, number one in women's, and rarely resonating with 0:22:36.160 --> 0:22:36.520 the youth. 0:22:36.560 --> 0:22:38.760 And so the question is if you're able. 0:22:38.560 --> 0:22:45.000 To stay at you know, and implement our strategies our views, 0:22:45.040 --> 0:22:47.240 we can continue to be a market leader and probably 0:22:47.240 --> 0:22:50.359 pick up a little bit of share, especially because the 0:22:50.440 --> 0:22:54.280 denim category is accelerating. We've seen the acceleration in the US, 0:22:54.320 --> 0:22:57.960 we've seen the acceleration outside and that's largely driven by 0:22:57.960 --> 0:22:59.400 the world becoming more casual. 0:22:59.560 --> 0:23:01.840 Yea more genes in my wardrobe than I've ever had 0:23:01.960 --> 0:23:04.480 in like since high school. Like it's really kind of wild. 0:23:04.480 --> 0:23:06.080 Any Barey and I can got another. 0:23:05.920 --> 0:23:09.160 Question I was just gonna ask in terms of geographic expansion. 0:23:09.680 --> 0:23:12.280 When you think about China, what's going on with China 0:23:12.320 --> 0:23:15.720 and also what products do the Chinese consumers want is 0:23:15.760 --> 0:23:17.879 it that high end good or is it more of 0:23:17.920 --> 0:23:19.200 a bargain purchase. 0:23:19.720 --> 0:23:25.119 So China for US is still underpenetrated. China represents about 0:23:25.160 --> 0:23:28.440 two or three percent of our business. You know, our 0:23:28.480 --> 0:23:31.840 business in China has been slow and soft. The Chinese 0:23:31.880 --> 0:23:36.760 consumer right now is going through a bit of a 0:23:36.800 --> 0:23:41.960 macro on certain climate. But the good news for US 0:23:42.080 --> 0:23:46.920 is they love the brand. Brand equity scores are really solid. 0:23:47.280 --> 0:23:50.720 We think China can be, you know, a business that 0:23:50.840 --> 0:23:54.439 grows double digit over the long term. But your specific question, 0:23:54.960 --> 0:23:58.360 the Chinese consumer is fairly discerning on the brands. 0:23:58.600 --> 0:24:00.439 He or she gravit two. 0:24:00.880 --> 0:24:04.240 There is a high end consumer as well as a 0:24:04.359 --> 0:24:07.879 consumer that the mid market consumer, what. 0:24:07.800 --> 0:24:09.160 We call the co products. 0:24:09.160 --> 0:24:12.200 So if we think about our Asia strategy, we really 0:24:12.920 --> 0:24:16.639 you know, our products are relevant for the mid market consumer, 0:24:17.560 --> 0:24:22.040 while we also offer products for the higher premium end consumer. 0:24:22.400 --> 0:24:27.320 Thirty percent of the Asian denim category is premium and 0:24:27.560 --> 0:24:31.560 you know premium. For example, our highest spinnacle product is 0:24:31.640 --> 0:24:39.439 largely Japanese you know, fabric, Japanese denim and inspired by Selvision. 0:24:39.520 --> 0:24:42.080 So that's what we are selling and I think over 0:24:42.240 --> 0:24:45.560 time we'll be able to start growing our China business 0:24:45.680 --> 0:24:48.600 back in the low double digit rain. 0:24:49.000 --> 0:24:49.200 Yeah. 0:24:49.240 --> 0:24:51.359 Interesting, Seth, I will say, Carol, I know you mentioned 0:24:51.359 --> 0:24:54.000 you have more genes than ever. I have been buying 0:24:54.040 --> 0:24:56.520 the Sherpa jackets, the denim jackets like crazy. 0:24:56.560 --> 0:24:57.520 I don't know why. 0:24:57.640 --> 0:24:59.240 I have three of them in different colors. 0:24:59.240 --> 0:25:00.520 I've brought a bunch of out of jackets. 0:25:00.520 --> 0:25:02.320 That's what I'm in. I'm like, I don't wear jeans, 0:25:02.320 --> 0:25:04.920 I wear chinos, but I wear the denim jackets like crazy. 0:25:05.040 --> 0:25:06.480 I know, I just I don't know. I love it. 0:25:06.520 --> 0:25:08.520 I love it. Yeah, I like everybody I work and 0:25:08.680 --> 0:25:09.760 babis every morning. 0:25:10.400 --> 0:25:13.480 Yeah, and Bailly and Carol. Now we've got the blue tab. 0:25:13.680 --> 0:25:17.160 It's it's it's a full of jacket. You can definitely 0:25:17.160 --> 0:25:20.919 read two office depending on the on the on the 0:25:21.160 --> 0:25:25.400 uh you know, uh dress environment at Bloomberg. I walked 0:25:25.440 --> 0:25:28.520 in here fairly casual, so you know it's something that 0:25:28.560 --> 0:25:31.479 we are not bringing to offer. We should make your 0:25:31.520 --> 0:25:32.919 wardrobe at some stage. 0:25:33.359 --> 0:25:36.159 Our thanks to Harmi Singh, chief financial and Growth Officer 0:25:36.200 --> 0:25:39.720 at Levi Strauss Bloomberg Senior equities reporter Bailly Lipschultz joining 0:25:39.720 --> 0:25:42.720 me there as well. Coming up on Bloomberg Business Week, 0:25:42.760 --> 0:25:45.199 more from the c suite and another clue on the 0:25:45.280 --> 0:25:48.679 US economy amid a lack of government data. The CEO 0:25:48.680 --> 0:25:52.240 of industrial supplier Fastenal ways it that's coming up. This 0:25:52.359 --> 0:25:52.960 is Bloomberg. 0:25:54.400 --> 0:25:58.240 This is the Bloomberg Business Week Daily Podcast. Listen live 0:25:58.359 --> 0:26:01.239 each weekday starting at two pm Eastern on Apple car 0:26:01.320 --> 0:26:04.280 Play and Android Auto with the Bloomberg Business App. You 0:26:04.320 --> 0:26:07.520 can also listen live on Amazon Alexa from our flagship 0:26:07.560 --> 0:26:11.159 New York station, Just Say Alexa played Bloomberg eleven thirty. 0:26:12.040 --> 0:26:12.200 Well. 0:26:12.240 --> 0:26:15.200 Earlier we talked about logistical real estate, you know, warehouses 0:26:15.240 --> 0:26:18.480 and such, and now we're talking about another essential part 0:26:18.520 --> 0:26:22.480 of the US economy, industrial suppliers, which are often a 0:26:22.560 --> 0:26:24.919 bell weather for how companies are dealing with shocks to 0:26:24.960 --> 0:26:28.479 the supply chain or tariffs. Earlier this week, fasten All 0:26:28.640 --> 0:26:31.359 reported third quarter earnings per share and operating income that 0:26:31.400 --> 0:26:35.119 were slightly below expectations. Alice note that pricing during the 0:26:35.160 --> 0:26:38.119 quarter was weaker than expected and marks the second straight 0:26:38.200 --> 0:26:41.320 quarter of soft pricing. Bloomberg's David Gore and I spoke 0:26:41.359 --> 0:26:45.240 with Daniel Floornies, He's CEO of Fastenal. We talked about 0:26:45.240 --> 0:26:48.399 how his company is handling tariffs and pricing concerns for 0:26:48.480 --> 0:26:49.679 the company's customers. 0:26:49.920 --> 0:26:53.120 We had a really good quarter we had we had 0:26:53.119 --> 0:26:55.159 a double digit quarter. We hadn't seen that for a 0:26:55.160 --> 0:26:59.679 couple of years. Double digit growth. Sorry, and please with 0:26:59.760 --> 0:27:04.720 the One of the challenges we had this year was 0:27:05.440 --> 0:27:08.359 there's a lot of fluidity around tariffs and what it 0:27:08.400 --> 0:27:13.760 means for pricing. And we will raise price to address 0:27:13.840 --> 0:27:18.119 costs in our customers supply chain. We really don't want 0:27:18.160 --> 0:27:20.800 to raise more than that because we believe it impairs 0:27:20.840 --> 0:27:21.960 our ability to grow as. 0:27:21.800 --> 0:27:22.639 Fast as we'd like. 0:27:23.480 --> 0:27:26.639 And you know, coming into the quarter, we estimated you 0:27:26.680 --> 0:27:30.480 know X for impact of pricing came in a little 0:27:30.480 --> 0:27:30.920 bit less. 0:27:30.960 --> 0:27:33.160 We lowered our number for the fourth fourth quarter. 0:27:33.480 --> 0:27:37.880 But the most important aspect is on a price cost basis, 0:27:38.080 --> 0:27:40.320 we are neutral and that's what we aspire to be. 0:27:40.680 --> 0:27:42.560 We'd rather just grow. 0:27:42.600 --> 0:27:46.000 Just one more question on pricing in terms of expectations, 0:27:46.000 --> 0:27:48.880 would you want to raise pricing, Like, do you get 0:27:48.880 --> 0:27:51.560 the sense that consumers and customers would push back, just 0:27:51.560 --> 0:27:54.960 given how you've been shifting into bigger customers spending much 0:27:54.960 --> 0:27:56.040 more money. 0:27:56.480 --> 0:27:59.720 Yeah, customers always push back on pricing. It doesn't matter 0:28:00.040 --> 0:28:05.280 a customer, we will we are having conversations with our customer. 0:28:05.720 --> 0:28:06.320 We will be. 0:28:06.320 --> 0:28:09.159 Doing some price increases in the Q four. I suspect 0:28:09.240 --> 0:28:11.600 we'll be doing some price increases as we move into 0:28:11.600 --> 0:28:15.720 twenty twenty six. But again, our first discussion with the customer, 0:28:17.000 --> 0:28:20.199 they understand it, they're willing to move on price. Our 0:28:20.240 --> 0:28:24.360 first discussion is always what are alternatives to this product? 0:28:24.920 --> 0:28:27.119 That maybe doesn't mean we have to raise your prices 0:28:27.119 --> 0:28:29.600 five percent. Maybe it means it only has to be 0:28:29.600 --> 0:28:32.440 two and we'd rather go to two because that's what 0:28:32.760 --> 0:28:34.600 that's what a supply chain partner does. 0:28:35.000 --> 0:28:37.600 Well, Dan, how do terriffs fit into this? Just given 0:28:37.640 --> 0:28:40.360 that according to analysts across the street, when we look 0:28:40.360 --> 0:28:43.160 at certain industries, now is when we're going to see 0:28:43.480 --> 0:28:46.520 tariff showing up in the third quarter in guidance as 0:28:46.960 --> 0:28:49.080 it relates to twenty twenty six, what are you seeing 0:28:49.080 --> 0:28:51.560 and how are you kind of attacking or addressing any 0:28:51.600 --> 0:28:52.720 pressures from tariffs? 0:28:53.200 --> 0:28:56.320 Yeah, so for us, tarif's been in the in the 0:28:56.320 --> 0:29:00.440 equation since the early part of the second order, a 0:29:00.440 --> 0:29:03.480 little bit of first quarter. I think in the individual 0:29:03.520 --> 0:29:07.560 that handles pricing historically, he will provide us an update 0:29:07.600 --> 0:29:09.960 once a month. He'd gotten the point where he was 0:29:10.000 --> 0:29:13.080 down on providing US updates. He was up to video 0:29:13.160 --> 0:29:16.040 number fourteen as of July that he was serving out 0:29:16.080 --> 0:29:20.120 to the field giving them guidance into what we were 0:29:20.120 --> 0:29:24.440 seeing in our supply chain. And so we've been adding 0:29:24.480 --> 0:29:26.440 price as we've gone through the year, and these have 0:29:26.480 --> 0:29:27.880 been discussions with customers. 0:29:28.600 --> 0:29:30.200 And I hope that answers your question. 0:29:31.160 --> 0:29:32.680 No, I think it does. But I think the big 0:29:32.720 --> 0:29:36.160 thing is are you mitigating the impact of tariffs? Are 0:29:36.160 --> 0:29:39.440 you shifting your supply chain? Is the expectation that you 0:29:39.480 --> 0:29:41.320 can have some kind of knock on effect as it 0:29:41.360 --> 0:29:44.720 relates to pricing if we do continue to see threats 0:29:44.760 --> 0:29:47.920 from the President going after countries like China or others. 0:29:48.040 --> 0:29:50.320 So how is that impacting when you look at your 0:29:50.320 --> 0:29:53.000 supply chain, when you look at the potential for pricing 0:29:53.040 --> 0:29:54.520 impacts in twenty twenty six. 0:29:55.120 --> 0:29:59.000 We've been moving supply chain around the planet in earnest 0:29:59.240 --> 0:30:04.280 since I was seventeen twenty eighteen time print. As our 0:30:04.360 --> 0:30:07.560 name would imply, we sell a lot of fasters, and 0:30:08.400 --> 0:30:11.560 most of the fasters in North America come from either 0:30:12.320 --> 0:30:17.040 mainland China or Taiwan and the automotive industry took the 0:30:17.080 --> 0:30:19.560 production there back in the fifties and sixties, actually took 0:30:19.560 --> 0:30:23.520 it to Japan and South Korea and then migrated from there. 0:30:24.080 --> 0:30:27.280 If I look at our resources, we now have a 0:30:27.320 --> 0:30:30.760 sourcing team in Shanghai, but we have a sourcing team 0:30:30.920 --> 0:30:33.880 in Bangkok. We have a sourcing team in Northern India. 0:30:34.320 --> 0:30:38.400 And we have work to diversify our supplier base around 0:30:38.440 --> 0:30:41.720 the planet and a little bit more in North America, 0:30:41.800 --> 0:30:44.840 but really around the planet, so to have diversity and 0:30:44.880 --> 0:30:48.320 supply so you're not caught off guard by some price 0:30:48.480 --> 0:30:50.760 change or a tariff change. 0:30:51.120 --> 0:30:52.240 In addition to that. 0:30:52.560 --> 0:30:56.160 We've taken supply chains coming into North America, which traditionally 0:30:56.200 --> 0:30:58.720 came in through the West Coast United States and then 0:30:58.760 --> 0:31:02.200 we would redistribute from there. We have moved supply chains 0:31:02.200 --> 0:31:04.280 so they're bringing product directly into the West Coast of 0:31:04.400 --> 0:31:08.040 Canada or the West coast of Mexico, because those two 0:31:08.560 --> 0:31:13.480 countries represent about fourteen percent of our revenue. Now you 0:31:13.560 --> 0:31:17.360 bypass the tariff. However, it's more expensive to break shipments 0:31:17.400 --> 0:31:20.040 down over in Asia and bring them in, but it's 0:31:20.080 --> 0:31:21.320 a lot less than a tariff. 0:31:22.200 --> 0:31:23.600 One of the things I want to ask you you 0:31:24.080 --> 0:31:27.920 talked about supply chains, is the endgame. Is it about, 0:31:28.160 --> 0:31:31.000 though largely reducing your exposure to China, which has been 0:31:31.040 --> 0:31:31.959 a pretty big one. 0:31:32.160 --> 0:31:38.320 It's it's reducing our customers exposure to any market, in. 0:31:38.240 --> 0:31:41.080 This case China and or Taiwan, but. 0:31:41.080 --> 0:31:44.719 To any market that are on the receiving end of 0:31:44.720 --> 0:31:49.479 some of the political wins and create an unstable supply 0:31:49.520 --> 0:31:52.280 base for our customer. Here it happens to be China, 0:31:52.360 --> 0:31:54.440 another month, it might be a different country. Another year, 0:31:54.480 --> 0:31:57.640 it might be a different country. It's diversifying your supply 0:31:57.720 --> 0:31:59.680 chain so your inks are not all in one basket. 0:31:59.720 --> 0:32:02.720 Read so whichever customer, yeah, whichever way the winds blow. Hey, 0:32:02.720 --> 0:32:03.880 One of the things I want to ask you, just 0:32:03.920 --> 0:32:07.280 big broadly the earnings up day today, you talked about 0:32:07.280 --> 0:32:11.160 the industrial environment still sluggish. We've heard similar commentary on 0:32:11.200 --> 0:32:15.440 this persistent sluggishness elsewhere from manufacturers, as well as caution 0:32:15.560 --> 0:32:18.160 around project delays. At what point does this become something 0:32:18.200 --> 0:32:22.400 more worrying than just sluggishness for us? 0:32:22.520 --> 0:32:25.120 It's been sluggish since November of twenty twenty two. 0:32:25.520 --> 0:32:26.400 Okay, when. 0:32:27.800 --> 0:32:32.800 We really key on what the industrial is still for 0:32:32.840 --> 0:32:36.320 supply management puts out the PMI index, and that's been 0:32:36.400 --> 0:32:40.520 sub fifty, which really plays into our customer base. Other 0:32:40.600 --> 0:32:42.920 than January and February of this year, that's been sub 0:32:42.960 --> 0:32:45.760 fifty since November of twenty twenty two. So we've been 0:32:45.800 --> 0:32:48.840 in a sluggish economy for a long time from our perspective, 0:32:49.600 --> 0:32:52.880 and other than living through the first part of it, 0:32:52.960 --> 0:32:56.320 where you had customers that were downshifting, what reason our 0:32:56.360 --> 0:32:57.440 growth is shining through. 0:32:57.320 --> 0:32:59.520 A different way. A. I think we're executing at a 0:32:59.560 --> 0:33:00.000 higher level. 0:33:00.520 --> 0:33:04.360 But B once you get through that downshifting, now you're 0:33:04.480 --> 0:33:07.400 just even if your customers are at a subdued level, 0:33:08.360 --> 0:33:09.920 you can grow in that kind of environment. 0:33:09.960 --> 0:33:11.640 And that's what's shining through in our numbers right now. 0:33:12.360 --> 0:33:12.640 All right. 0:33:12.680 --> 0:33:14.400 One thing I want to ask you, because as you 0:33:14.400 --> 0:33:16.120 would imagine, I don't know how much of this is 0:33:16.160 --> 0:33:19.840 pervasive in your world, but AI is like the NonStop 0:33:19.920 --> 0:33:23.520 conversation that we are having, certainly when it comes to 0:33:23.760 --> 0:33:27.920 activity and market impact. To what extent is AI maybe 0:33:27.960 --> 0:33:30.160 sucking up the oxygen in the economy. Are you seeing 0:33:30.160 --> 0:33:32.800 any signs of that or your world they're going to 0:33:32.840 --> 0:33:35.800 still need what you guys supply no matter what's going 0:33:35.840 --> 0:33:38.600 on with the AI spend and enthusiasm. 0:33:39.480 --> 0:33:41.800 Well, first off, we have a lot of we have 0:33:41.840 --> 0:33:45.160 a meaningful improvement in our revenue as it relates to 0:33:45.240 --> 0:33:48.040 things like data centers because we sell into a wide 0:33:48.160 --> 0:33:52.840 range of customer needs and end market needs. Whether that 0:33:52.920 --> 0:33:55.920 is the actual construction. I've visited many data centers being 0:33:55.920 --> 0:33:59.440 built where we have people on site. There after it's built, 0:33:59.560 --> 0:34:02.840 we're flying into that facility with things like air handling 0:34:03.360 --> 0:34:06.720 and maintenance equipment. In the case of the customers that 0:34:06.880 --> 0:34:09.920 sell into that sector, that's actually a strong business for 0:34:10.040 --> 0:34:13.759 us right now. And then as an organization, we're we're 0:34:13.800 --> 0:34:16.920 increasingly making use of AI in our own business and 0:34:16.960 --> 0:34:19.600 how we go to market and how we help our 0:34:19.640 --> 0:34:21.279 employees be more efficient in what they do. 0:34:21.920 --> 0:34:25.440 And Dan about forty five seconds here with in with 0:34:25.600 --> 0:34:29.040 keeping in mind data center construction, where are those products 0:34:29.040 --> 0:34:31.560 sourced from? Are those also heavily sourced from China and 0:34:31.560 --> 0:34:34.640 expose the tariffs or are they different supply chain altogether? 0:34:35.480 --> 0:34:35.880 There? 0:34:35.920 --> 0:34:41.680 You know there it's mostly different supply chain source, but 0:34:42.520 --> 0:34:45.759 it depends on the component. If it's facility maintenance, types 0:34:45.800 --> 0:34:48.560 of products they're coming from anywhere on the globe, and 0:34:48.600 --> 0:34:51.080 so they're subject to the same type of. 0:34:51.040 --> 0:34:52.319 Issues any product would have. 0:34:52.719 --> 0:34:54.719 But a lot of the components I know a lot 0:34:54.760 --> 0:34:57.160 of the manufacturers that we sell into. I visited one 0:34:57.200 --> 0:35:00.359 about a year ago in Michigan where they they were 0:35:00.400 --> 0:35:05.000 purposely avoiding China and they're selling directly into the data centers. 0:35:05.239 --> 0:35:08.120 You've been at Fastenel for a long time, You've seen 0:35:08.160 --> 0:35:10.799 different cycles. How do you describe this one? And again, 0:35:10.920 --> 0:35:13.080 just got about twenty seconds if you could be very quickly, 0:35:13.440 --> 0:35:13.839 very quick. 0:35:13.960 --> 0:35:19.040 Ooh, odd in the fact that you know similar what 0:35:19.040 --> 0:35:21.239 we saw on eighteen, but odd with the fact of 0:35:21.400 --> 0:35:25.200 it's just something on fluid and there's so many things 0:35:25.200 --> 0:35:27.319 that occur from week to week, month to month that 0:35:27.360 --> 0:35:29.839 are outside the norm, but the fundamentals still work. 0:35:30.280 --> 0:35:32.880 That was Daniel Florin, as CEO of Fastenal, joining US 0:35:32.920 --> 0:35:35.800 from Minnesota along with Bloomberg News correspondent host of the 0:35:35.800 --> 0:35:39.080 Bloomberg Big Take David Gora. By the way, this past week, 0:35:39.120 --> 0:35:42.400 Bank of America removed Fastenal from its US one list, 0:35:42.719 --> 0:35:46.319 which represents the bank's best investment ideas. Ba A also 0:35:46.360 --> 0:35:48.399 lowered its price target on the stock to forty eight 0:35:48.400 --> 0:35:51.239 dollars from forty nine dollars this year, but kept its 0:35:51.239 --> 0:35:54.799 by rating on the stock. Meantime, Barkley's also lowered its 0:35:54.800 --> 0:35:57.959 price target to forty five from forty nine dollars a year. 0:35:58.640 --> 0:36:00.160 That wraps up our first hour of the week. Get 0:36:00.160 --> 0:36:03.080 a edition of Bloomberg BusinessWeek from Bloomberg Radio. Ahead in 0:36:03.120 --> 0:36:06.200 the next sixty minutes, a government shut down, chronic crime, 0:36:06.239 --> 0:36:09.160 and more. How the Mayor of Baltimore is managing. 0:36:09.480 --> 0:36:11.879 We go and we identify those who are most likely 0:36:11.960 --> 0:36:13.960 to be the victim of perpetrator of gun violence, and 0:36:14.000 --> 0:36:16.560 we focus on them. We give them opportunities to change 0:36:16.560 --> 0:36:19.560 their life, and if not, we remove them via law enforcement. 0:36:19.719 --> 0:36:22.120 And that's how we're driving down violence. We're focusing on 0:36:22.239 --> 0:36:24.560 guns and the flow of guns into our city, going 0:36:24.600 --> 0:36:28.160 at the gun traffickers, those who are using guns, wrestling 0:36:28.200 --> 0:36:30.680 them at my direction with the police department, turning them 0:36:30.719 --> 0:36:32.920 over to our Stag's attorney in our Attorney General. 0:36:33.320 --> 0:36:36.920 Also sideways inheritances and the transfer of money, wealth and 0:36:37.000 --> 0:36:39.600 influence from men to women women. 0:36:39.640 --> 0:36:41.600 As you say, they do things differently, right, and they 0:36:41.680 --> 0:36:43.960 want to do things differently, and oftentimes when they're getting 0:36:43.960 --> 0:36:46.160 a hold of this wealth. Right when wealth is passing 0:36:46.160 --> 0:36:48.680 to them, either through their parents and family or through 0:36:48.719 --> 0:36:51.200 their spouses, they want to do it differently. They want 0:36:51.200 --> 0:36:54.759 to be served differently. Seventy percent of women leave their 0:36:55.040 --> 0:36:59.080 husband's financial advisor after a divorce or a death within 0:36:59.200 --> 0:36:59.879 one year. 0:37:00.480 --> 0:37:03.520 Plus the culinary producer behind all the food action in 0:37:03.560 --> 0:37:06.720 the Emmy Award winning hit The Bear, and the youngest 0:37:06.719 --> 0:37:09.800 female self made billionaire in the world. That's all ahead. 0:37:10.040 --> 0:37:12.440 This is Bloomberg Business Week. I'm Karl Masser. 0:37:18.760 --> 0:37:22.759 You're listening to the Bloomberg Business Weekdaily podcast. Catch us 0:37:22.840 --> 0:37:26.280 live weekday afternoons from two to five pm Eastern Listen 0:37:26.320 --> 0:37:29.880 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:37:30.000 --> 0:37:32.440 or watch us live on YouTube. 0:37:33.080 --> 0:37:35.080 We'll back here on Bloomberg Business Week. Tim is off 0:37:35.080 --> 0:37:37.680 this week, but we've got plenty ahead in this second 0:37:37.719 --> 0:37:40.920 hour of our weekend edition of Bloomberg Business Week, including 0:37:40.960 --> 0:37:43.520 the Mayor of Baltimore on how he is fighting gun 0:37:43.600 --> 0:37:46.920 violence in his city. Then the great transfer of wealth, 0:37:47.000 --> 0:37:51.480 sideways inheritances, the feminization of wealth, whatever you might call it. 0:37:51.520 --> 0:37:54.600 Women are increasingly in charge when it comes to money, 0:37:54.920 --> 0:37:58.640 power and influence, Also, we've got two of Bloomberg business 0:37:58.640 --> 0:38:01.719 Week's screen time. One to watch the chef and the 0:38:01.719 --> 0:38:04.880 culinary producer behind the Emmy Award winning hit The Bear, 0:38:05.120 --> 0:38:07.759 and then the youngest female self made billionaire in the 0:38:07.800 --> 0:38:11.520 world and what she's doing with Passes. We begin, though, 0:38:11.560 --> 0:38:13.799 with a view from the ground up, and that's why 0:38:13.880 --> 0:38:17.000 we always always love talking to mayors around the country. 0:38:17.480 --> 0:38:19.719 They are the ones on the ground in cities and 0:38:19.760 --> 0:38:23.240 towns across the United States, making the decisions that affect 0:38:23.280 --> 0:38:26.239 the lives of people in their communities and hearing from 0:38:26.280 --> 0:38:29.719 people in their communities. Now, cities are especially in the 0:38:29.719 --> 0:38:32.520 spotlight as President Trump slams many of the United States 0:38:32.560 --> 0:38:35.560 major cities and threatens to send in the National Guard, 0:38:35.920 --> 0:38:39.280 a policy that has faced resistance from Democratic governors, mayors, 0:38:39.320 --> 0:38:42.600 and some federal judges. Tim and I spoke with Baltimore 0:38:42.600 --> 0:38:45.560 Mayor Brandon Scott about how he is tackling crime in 0:38:45.600 --> 0:38:49.000 his city without the National Guard and how his residents 0:38:49.000 --> 0:38:51.400 are doing amid the government shut down. 0:38:51.760 --> 0:38:55.920 Well, there's a lot of my constitions unease right when 0:38:55.960 --> 0:38:59.480 you're thinking about over twelve thousand Baltimoreans work for the 0:38:59.480 --> 0:39:02.960 federal government, either directly or on contract, and then when 0:39:02.960 --> 0:39:05.560 you think about what that's going to mean for them 0:39:05.560 --> 0:39:08.160 and their families. They're just not at ease right now, 0:39:08.440 --> 0:39:10.359 and folks want to go to work, they want their 0:39:10.400 --> 0:39:12.759 government to be working. And of course then all of 0:39:12.760 --> 0:39:15.640 our retherdents who depend on programming and things that are 0:39:15.680 --> 0:39:17.640 just going to be out there that may not be 0:39:17.719 --> 0:39:20.200 having a direct impact as if yet father shut down, 0:39:20.400 --> 0:39:23.520 but as it continues and goes on, it would be. 0:39:23.719 --> 0:39:25.920 What do you consider what do you consider your biggest 0:39:25.920 --> 0:39:28.800 problem in running the city? I mean Baltimore. 0:39:29.160 --> 0:39:29.480 You know, we. 0:39:29.600 --> 0:39:33.120 Report about it a lot. It is the fourth most 0:39:33.200 --> 0:39:36.000 dangerous according to US News and World Report this summer, 0:39:36.080 --> 0:39:39.160 ranking Baltimore the fourth most dangerous city in the country 0:39:39.200 --> 0:39:43.040 behind Memphis, Oakland, and Saint Louis based on FBI data. 0:39:43.520 --> 0:39:46.440 They look at property crime, they look at murders per capita. 0:39:46.520 --> 0:39:48.719 But what are you as mayor? I'm sure there's a 0:39:48.719 --> 0:39:50.799 lot that's on your plate. What's top of mind? 0:39:50.920 --> 0:39:53.120 Well, listen, violence is always top of us. The reason 0:39:53.120 --> 0:39:55.120 why I got into office, and we understand that we 0:39:55.160 --> 0:39:56.960 have a long way to go. But I know, you 0:39:57.080 --> 0:39:59.279 guys know here Bloomberg Radio, the many years that we 0:39:59.280 --> 0:40:01.480 were number one on that list, and as you and 0:40:01.520 --> 0:40:04.040 I are talking today, I think it's the mode and 0:40:04.080 --> 0:40:08.600 the talversation around Baltimore and violence has shifted significantly. We 0:40:08.640 --> 0:40:12.040 have the fewest amount of homicide through any October seventh 0:40:12.040 --> 0:40:15.480 on record today. That is a big change. When I 0:40:15.680 --> 0:40:18.799 said twenty twenty one, laying out our conference and violence 0:40:18.840 --> 0:40:21.560 Prevention Plan, that we were going to reduce homicide by 0:40:21.600 --> 0:40:24.160 fifteen percent from one year to the next, people literally laughed. 0:40:24.480 --> 0:40:26.880 Right now, it's down thirty percent from last year, and 0:40:27.000 --> 0:40:29.600 last year was a record reduction for us. We're going 0:40:29.680 --> 0:40:30.239 to continue that. 0:40:30.360 --> 0:40:31.120 How did you do it? 0:40:31.320 --> 0:40:33.839 We did it throughout our conference's plan a week, which 0:40:33.880 --> 0:40:36.600 is which is a bunch of things. One first and foremost, 0:40:36.800 --> 0:40:39.200 we go and we identify those who are most likely 0:40:39.280 --> 0:40:41.319 to be the victim of perpetrator of gun violence, and 0:40:41.320 --> 0:40:43.879 we focus on them. We give them opportunities to change 0:40:43.880 --> 0:40:46.880 their life, and if not, we remove them via law enforcement. 0:40:47.040 --> 0:40:49.440 And that's how we're driving down violence. We're focusing on 0:40:49.560 --> 0:40:51.879 guns and the flow of guns into our city, going 0:40:51.920 --> 0:40:55.480 at the gun traffickers, those who are using guns, arresting 0:40:55.520 --> 0:40:58.000 them at my direction with the police department, turning them 0:40:58.040 --> 0:41:00.719 over to our stage attorney and our attorneys. We have 0:41:00.920 --> 0:41:04.799 historical levels of investment into community violence intervention where we 0:41:04.920 --> 0:41:06.799 have people who used to be on the other side 0:41:06.800 --> 0:41:10.000 of the law going out and preventing conflicts from escalating 0:41:10.080 --> 0:41:10.880 into violence. 0:41:11.080 --> 0:41:14.000 All of it. We're going after gun manufactured. 0:41:13.560 --> 0:41:15.680 People who understand where the problem the problem is. If 0:41:15.719 --> 0:41:17.880 you're pulling them in to help you, they. 0:41:17.719 --> 0:41:19.960 Were the problem and now they're part of the solution, 0:41:20.040 --> 0:41:21.200 and what better way. 0:41:21.200 --> 0:41:23.279 To do that gets people to do that well? 0:41:23.480 --> 0:41:26.160 Easy first and foremost, many people who have made that 0:41:26.200 --> 0:41:28.680 mistake don't want people coming behind them to make that 0:41:28.920 --> 0:41:31.680 and they know that we're growing this network of community 0:41:31.760 --> 0:41:34.520 violence intervention workers in our city. So the word is 0:41:34.520 --> 0:41:36.800 out that we want to give people a second chance 0:41:36.840 --> 0:41:39.239 to be a part of solving a problem that they 0:41:39.320 --> 0:41:40.240 once were causing. 0:41:40.640 --> 0:41:42.719 The city, though in the crosshairs of the president he 0:41:42.719 --> 0:41:45.400 called it a hellhole. Last month, you and Governor Wes 0:41:45.440 --> 0:41:48.720 Moore said that law enforcement from the state will patrol 0:41:48.800 --> 0:41:50.040 some areas. Has that begun? 0:41:50.320 --> 0:41:53.480 Yeah, that's begun, and that's the governor is actually restarting 0:41:53.520 --> 0:41:57.040 something that was ended by his predecessor. Think about it 0:41:57.080 --> 0:42:00.239 like this, you would not find any other state police 0:42:00.400 --> 0:42:03.239 department in any state in this country not operating at 0:42:03.239 --> 0:42:06.560 all in its only major city. That's Baltimore City was 0:42:06.600 --> 0:42:09.760 the only jurisdiction in Maryland that a Maryland state police 0:42:09.760 --> 0:42:12.800 did not operate in the Governor's restarting that, we're grateful 0:42:12.840 --> 0:42:14.880 for that support and to continue that work. 0:42:15.160 --> 0:42:17.640 Are you open to the presidents sending National Guard troops to. 0:42:17.640 --> 0:42:20.480 This We've been very clear about that. Why we have 0:42:20.840 --> 0:42:23.319 We know how to reduce violence in Baltimore. We have 0:42:23.440 --> 0:42:27.280 reduced violence to its lowest levels ever recorded on record, 0:42:27.400 --> 0:42:30.480 even lower than the president's first term. The way that 0:42:30.520 --> 0:42:33.239 we have done it in partnership with our community, with 0:42:33.239 --> 0:42:36.040 our police department, with ole station attorney Ourtorney General, and 0:42:36.080 --> 0:42:38.759 our federal law enforcement partners who work beside. 0:42:38.560 --> 0:42:41.040 Us each and every day. That's how we should continue 0:42:41.040 --> 0:42:41.319 that work. 0:42:41.360 --> 0:42:43.680 If the President wants to help us, he should restore 0:42:43.719 --> 0:42:47.040 grants and funding that was cut to organizations that helping that. 0:42:47.400 --> 0:42:51.080 Restore grants, I mean funding cut from those law enforcement agencies. 0:42:51.120 --> 0:42:54.040 This president has had the biggest of reduction in funding 0:42:54.080 --> 0:42:55.440 for federal law ensforment agencies. 0:42:55.480 --> 0:42:56.280 They should be restored. 0:42:56.719 --> 0:43:00.160 What funding are you not getting so for us not 0:43:00.280 --> 0:43:03.799 been directly impacted as of yet. It's our partner organizations 0:43:03.840 --> 0:43:06.239 like for example, a Life Bridge helps them runs the 0:43:06.280 --> 0:43:08.840 Center for Hope that's a part of our CVI network 0:43:08.880 --> 0:43:13.160 that has programming around CBI's community violence intervention. They's lost 0:43:13.200 --> 0:43:15.880 a five hundred thousand dollars grant, the same thing for 0:43:16.000 --> 0:43:19.080 living classrooms. That's big work that is going to be 0:43:19.400 --> 0:43:22.520 not happening, whether it be a hospital based response, our 0:43:22.560 --> 0:43:26.800 community based responders. We need a victim assistance for young people, 0:43:26.840 --> 0:43:29.319 getting those young people the services they need that helps 0:43:29.320 --> 0:43:30.479 to privent boalance as well. 0:43:30.560 --> 0:43:34.480 What will you do though, if the President sends troops, well, listen. 0:43:34.520 --> 0:43:37.600 Will be prepared to take whatever action that we can, 0:43:37.760 --> 0:43:40.319 be it legal, others, alongside our governor and our team, 0:43:40.640 --> 0:43:44.120 based on when, what and how the President does something 0:43:44.160 --> 0:43:46.720 if he does anything. But what we hope the President 0:43:46.760 --> 0:43:50.120 does is to continue to support those agents that are 0:43:50.160 --> 0:43:53.080 already working in our city and let them do their 0:43:53.120 --> 0:43:55.520 work and let the law enforcement partnership that is driven 0:43:55.600 --> 0:43:58.359 us results. This far carrious all the way. 0:43:58.480 --> 0:44:00.759 But even though crime has improved, even though you shared 0:44:00.760 --> 0:44:03.640 statistics that show they're the best that they've ever been, 0:44:04.160 --> 0:44:08.800 Like Carol mentioned your city is still on a list 0:44:08.880 --> 0:44:10.759 that you don't want to be on. So I say 0:44:10.760 --> 0:44:14.000 to people out there who are saying, well, I would 0:44:14.000 --> 0:44:17.240 feel more comfortable if there were an increased law enforcement presence, 0:44:17.280 --> 0:44:19.280 and that could include federal trips. 0:44:19.320 --> 0:44:22.000 Well, we had the National Guard in Baltimore in twenty 0:44:22.120 --> 0:44:24.399 fifteen following the unrest of Freddy Gray. 0:44:24.520 --> 0:44:26.719 It's one of the most violent years ever. It didn't help. 0:44:26.960 --> 0:44:29.239 Right, We have to remember, this is not what those 0:44:29.239 --> 0:44:31.799 folks signed up to do. Allow those folks who sign 0:44:31.920 --> 0:44:35.960 up to go after a gun, traffickers, murderers, robbers, car 0:44:36.080 --> 0:44:38.600 jackins to do their work and allow the other people 0:44:38.640 --> 0:44:40.480 to do their work. And listen, there are other lists, 0:44:40.520 --> 0:44:42.279 you know, there are many of these lists. We were 0:44:42.320 --> 0:44:44.600 on some list, on some list we weren't on all. 0:44:44.719 --> 0:44:46.239 The list that we want to be on is the 0:44:46.280 --> 0:44:49.200 list of who has the largest reductions. And you will 0:44:49.239 --> 0:44:51.480 be hard pressed to find a city in this country 0:44:51.560 --> 0:44:55.480 that's had a sustainable, long term reduction like Baltimore's had 0:44:55.560 --> 0:44:59.359 from a September of twenty twenty two, I mean twenty 0:44:59.400 --> 0:45:00.600 to twenty three until now. 0:45:00.680 --> 0:45:03.200 What do you see as what's wrong with politics today? 0:45:03.239 --> 0:45:05.680 What do you think is wrong with what some say 0:45:05.719 --> 0:45:08.880 is the Democratic Party not very clear in its mission 0:45:08.920 --> 0:45:10.240 and kind of stepping. 0:45:09.880 --> 0:45:12.200 Up well, very simply, I think that, and. 0:45:12.160 --> 0:45:13.520 I ask you because I think there's a lot of 0:45:13.600 --> 0:45:15.360 forgive me, but there's a lot of folks who think 0:45:15.840 --> 0:45:20.600 there are politicians who become career politicians and things haven't 0:45:20.680 --> 0:45:21.880 changed and we need some change. 0:45:21.960 --> 0:45:23.880 Well, I think that what folks have to understand is 0:45:23.920 --> 0:45:26.160 that for me, and I say this about the Democratic 0:45:26.200 --> 0:45:29.359 Party all the time, more recently, they have to let 0:45:29.400 --> 0:45:32.880 the folks that are closest to the problem be outfront 0:45:32.880 --> 0:45:35.000 and part of the solution, meaning they need to listen 0:45:35.040 --> 0:45:36.759 to mayors. The mayors are the ones that have to 0:45:36.760 --> 0:45:38.360 solve the problems. The mayors are the ones that have 0:45:38.400 --> 0:45:40.600 to meet the people in the grocery store. And we've 0:45:40.640 --> 0:45:42.960 proven in city after city at the city we know 0:45:43.040 --> 0:45:45.319 how to drive down crime. And you have to talk 0:45:45.360 --> 0:45:47.399 to people where they are. We have to get out 0:45:47.400 --> 0:45:49.600 of being up in the sky with pie and the sky, 0:45:50.000 --> 0:45:53.160 talk to people in real sense, real things that impact them, 0:45:53.239 --> 0:45:55.080 and explain to them how these things are going to. 0:45:55.000 --> 0:45:56.040 Make their communities better. 0:45:56.120 --> 0:45:57.240 How long do you want to be mayor? 0:45:57.480 --> 0:45:58.960 I want to be mayor for as long as the 0:45:58.960 --> 0:46:01.080 residence of Baltimore will have me. This will be my 0:46:01.160 --> 0:46:01.960 second term. 0:46:02.280 --> 0:46:02.960 Believe it or not. 0:46:03.000 --> 0:46:06.000 I've been an elected office since twenty eleven, and this 0:46:06.120 --> 0:46:08.680 is I've been in city hall since two thousand and seven. 0:46:09.239 --> 0:46:12.160 You're a young man right now, Yes, a young man. 0:46:12.719 --> 0:46:16.560 I'll be forty two on my birthday. But this is 0:46:16.600 --> 0:46:19.840 about making my city better. I got into this service 0:46:19.880 --> 0:46:22.359 because I saw someone get shot at seven years old 0:46:22.400 --> 0:46:25.240 and no one care and wanting to drive down that violence, 0:46:25.280 --> 0:46:27.840 to have vacant housing. Be it as lowest point in 0:46:28.280 --> 0:46:30.919 my lifetime in Baltimore. Something we're proud of, but we're 0:46:30.920 --> 0:46:31.640 not celebrating. 0:46:31.680 --> 0:46:32.839 We have a lot of work to do and we're 0:46:32.840 --> 0:46:33.279 going to do it. 0:46:33.280 --> 0:46:34.879 The reason I go back there is I do think 0:46:35.080 --> 0:46:37.160 we talked about this in media that there isn't a 0:46:37.160 --> 0:46:40.160 lot of you know, local publications anymore. A lot of 0:46:40.160 --> 0:46:42.960 newspapers have shut down, and so we get kind of 0:46:42.960 --> 0:46:44.640 the high in the Yeah, we don't need that, we 0:46:44.760 --> 0:46:47.319 get that view, but we don't. It's why we love 0:46:47.360 --> 0:46:50.279 talking to mayors. But often people are mayors and then 0:46:50.280 --> 0:46:52.080 they move up and they go to governor and then 0:46:52.080 --> 0:46:54.160 they go to Congress and stuff. So I'm just curious, 0:46:54.200 --> 0:46:55.680 how long do you want to stay on that loco? 0:46:55.760 --> 0:46:56.600 Yeah, everyone knows. 0:46:57.239 --> 0:47:00.320 Everyone knows I don't want to be governor, and everyone 0:47:00.520 --> 0:47:02.799 in Baltimore knows that I will be quite okay if 0:47:02.840 --> 0:47:04.840 being the Mayor of Baltimore is the last elected office 0:47:04.840 --> 0:47:05.239 I've had. 0:47:05.280 --> 0:47:07.440 This is my dream job as a child. 0:47:07.719 --> 0:47:09.560 I will hold it as long as the residents of 0:47:09.560 --> 0:47:11.719 Baltimore will allow me to do so, as long as 0:47:11.760 --> 0:47:13.040 I'm living within term limits. 0:47:13.080 --> 0:47:14.439 Before we let you go because you have a train 0:47:14.520 --> 0:47:16.279 to catch to get home, Yes, and we want to 0:47:16.280 --> 0:47:20.600 be respectful of your time. The attracting and retaining business 0:47:20.800 --> 0:47:23.200 to the city, we know that's what economic development is 0:47:23.280 --> 0:47:25.799 a way to improve cities. What are you doing right 0:47:25.840 --> 0:47:27.840 now to say Baltimore is open for business? 0:47:28.000 --> 0:47:28.200 Yeah? 0:47:28.239 --> 0:47:28.719 I think that way. 0:47:28.760 --> 0:47:30.920 We have to understand we had four billion dollars of 0:47:31.000 --> 0:47:34.120 investment into Baltimore. We have seven billion dollars investment coming 0:47:34.120 --> 0:47:37.480 into downtown Baltimore, whether it's t ro Price's new headquarters. 0:47:37.480 --> 0:47:41.279 So under Armer's new headquarters. Everyone knows throughout Downtown Rise plan, 0:47:41.800 --> 0:47:44.000 we are open for business in the city of Baltimore. 0:47:44.320 --> 0:47:48.160 Re Forming our permit process and reforming our zoning code, 0:47:48.320 --> 0:47:50.279 all the things that we need to do to help 0:47:50.360 --> 0:47:52.719 grow business in Baltimore, especially in the tech and life 0:47:52.760 --> 0:47:55.759 science industry that is taken off out of Hopkins and 0:47:55.760 --> 0:47:58.080 out of the University of Maryland, putting a lot of 0:47:58.120 --> 0:48:00.520 money in a lot of tech businesses out to the ETHO. 0:48:00.760 --> 0:48:03.560 Any signs that we're headed towards a recession. 0:48:03.440 --> 0:48:06.440 Well we'll see. We know that with terrorists and all 0:48:06.440 --> 0:48:06.960 the other. 0:48:06.800 --> 0:48:10.120 Things going, we just have to all be mindful of 0:48:10.160 --> 0:48:13.319 what's happening and prepare as we're doing our budgets. I've 0:48:13.320 --> 0:48:14.960 been talking to my brother and system mayors to make 0:48:14.960 --> 0:48:17.480 sure that we're being responsible right now because we do 0:48:17.560 --> 0:48:18.359 not know yet what. 0:48:18.360 --> 0:48:18.759 Is to come. 0:48:19.080 --> 0:48:22.400 That was Baltimore Mayor Brandon Scott. You're listening to Bloomberg 0:48:22.440 --> 0:48:25.800 Business Week coming up. How women are joining the billionaire ranks. 0:48:26.200 --> 0:48:29.680 The majority of them were actually moderate to aggressive because 0:48:29.920 --> 0:48:32.680 they saw the power of not just gaining wealth through 0:48:32.760 --> 0:48:35.239 working or through transition, but actually gaining well through the 0:48:35.239 --> 0:48:39.600 capital markets right investing in items that will end securities 0:48:39.640 --> 0:48:42.799 and portfolios that will actually help them grow their portfolio. 0:48:42.880 --> 0:48:45.800 Private markets is a great example, again for a financial 0:48:45.880 --> 0:48:49.480 advisor to play that role and help and coach and 0:48:49.520 --> 0:48:52.440 guide a woman and how she thinks about her portfolio 0:48:52.480 --> 0:48:53.600 across public and private. 0:48:53.760 --> 0:48:56.640 You know women oftentimes want to do. This is Blueberg. 0:48:58.160 --> 0:49:02.319 This is the Bloomberg Business Daily Podcast. Listen live each 0:49:02.360 --> 0:49:05.640 weekday starting a two pm Eastern on Applecarplay and the 0:49:05.719 --> 0:49:08.560 Android Auto with the Bloomberg Business App. You can also 0:49:08.719 --> 0:49:11.719 listen live on Amazon Alexa from our flagship New York 0:49:11.760 --> 0:49:16.040 station just Say Alexa played Bloomberg eleven thirty. 0:49:16.400 --> 0:49:19.320 Wall Street is experiencing a new type of wealth transfer. 0:49:19.640 --> 0:49:21.920 More than a dozen women in the world's five hundred 0:49:21.960 --> 0:49:25.720 richest people have become billionaires after the death of a spouse. 0:49:26.040 --> 0:49:30.040 That's the highest number ever. The so called sideways inheritances 0:49:30.480 --> 0:49:34.000 are increasingly shaping global business as women take over huge 0:49:34.000 --> 0:49:38.680 empires from finance to consumer goods and gambling. Today, those 0:49:38.719 --> 0:49:42.480 women oversee record fortunes totaling three hundred and sixty five 0:49:42.600 --> 0:49:46.800 billion dollars, roughly tripling since twenty sixteen, according to the 0:49:46.840 --> 0:49:51.080 Bloomberg Billionaires Index. The changes are creating huge implications for 0:49:51.120 --> 0:49:54.480 how vast sums are invested. Bloomberg's Matt Miller and I 0:49:54.520 --> 0:49:57.759 spoke with Jamie mcgheira. She's head of US Wealth Advisory 0:49:57.760 --> 0:50:00.960 and head of Retirement at Blackrock. It's the world's largest 0:50:01.040 --> 0:50:04.239 fund manager, which not to day record thirteen point five 0:50:04.320 --> 0:50:07.439 trillion dollars in assets. Blackrock reporting earnings this past week, 0:50:07.480 --> 0:50:09.720 so we get an update on that number. We talked 0:50:09.719 --> 0:50:13.160 with Jamie though about the ways women are reshaping the 0:50:13.239 --> 0:50:18.160 investment industry. You know, we are talking about the environment generally, 0:50:18.239 --> 0:50:19.960 So let's start there. I know we did that over 0:50:19.960 --> 0:50:22.680 the summer when we talk because Blackrock just sees so 0:50:22.840 --> 0:50:26.000 much in terms of the funds it oversees and the flows, 0:50:26.040 --> 0:50:28.200 and the flows continue to grow, but that doesn't mean 0:50:28.239 --> 0:50:30.279 the flows are always going in the same places. What 0:50:30.360 --> 0:50:32.319 can you give us insight in terms of where money 0:50:32.360 --> 0:50:33.719 is going and where money is going out of. 0:50:33.840 --> 0:50:37.040 Yeah, So, first of all, excellent to be here and 0:50:37.280 --> 0:50:40.080 you started by talking about flows. I'm going to take 0:50:40.120 --> 0:50:43.000 a gender perspective on flows, yeah, and talk to you 0:50:43.040 --> 0:50:45.759 a little bit about where we see money going globally 0:50:46.600 --> 0:50:50.440 with women. And so women more and more are earning wealth, 0:50:50.480 --> 0:50:53.720 they're acquiring wealth, they're owning wealth, They're playing a larger 0:50:53.800 --> 0:50:57.120 role in capital markets. They are investing and benefiting from 0:50:57.160 --> 0:50:59.520 these capital markets, and we think there's no better sign 0:50:59.600 --> 0:51:01.840 of hope and the future than having people invest and 0:51:01.880 --> 0:51:03.080 grow along the capital markets. 0:51:03.160 --> 0:51:05.319 Is it because they're earning it themselves and they're having 0:51:05.400 --> 0:51:07.560 some say or is it also in terms of couples, 0:51:07.600 --> 0:51:11.000 because they are often breadwinners as well, that they also 0:51:11.040 --> 0:51:13.040 have a say at the table. Yeah, so it's both. 0:51:13.160 --> 0:51:15.600 Right, So when you think about women, women are more 0:51:15.640 --> 0:51:20.080 often now becoming breadwinners, primary breadwinners. Quite often, they're also 0:51:20.200 --> 0:51:24.360 contributing to household along with their spouses. They're earning more money, 0:51:24.360 --> 0:51:27.040 but they're also acquiring and you mentioned the wealth transfer. 0:51:27.360 --> 0:51:28.839 You know, we think about that in two ways. There's 0:51:28.880 --> 0:51:32.879 the intergenerational wealth transfer, where they're gaining assets maybe from 0:51:32.920 --> 0:51:35.760 their parents as they pass away. But the more interesting 0:51:35.760 --> 0:51:38.800 one is this horizontal transfer. Right, So if a spouse 0:51:39.280 --> 0:51:43.080 passes away or if there's a divorce, women are acquiring 0:51:43.120 --> 0:51:46.879 assets in that way and they need financial advisors to help. 0:51:46.920 --> 0:51:49.319 They're reshaping the industry and women have just not been 0:51:49.360 --> 0:51:51.640 served in the way they need to be served in them. 0:51:51.680 --> 0:51:54.040 We think about that right with Melinda Gates. We think 0:51:54.080 --> 0:51:55.560 about it with you know. 0:51:55.560 --> 0:51:57.160 Jeff beasis. 0:51:57.360 --> 0:52:00.399 No, but I'm just saying there was big divorces there. 0:52:00.440 --> 0:52:04.239 You had significant players, certainly in wealth overall, but also 0:52:04.280 --> 0:52:04.960 in philanthropy. 0:52:05.120 --> 0:52:05.319 Yes. 0:52:05.800 --> 0:52:10.320 Yes, Actually, Ceruly estimates that globally one hundred and twenty 0:52:10.320 --> 0:52:14.520 four trillion dollars will change hands in this silver tsunami 0:52:14.960 --> 0:52:20.760 and then and then their current forecasts are that fifty 0:52:20.800 --> 0:52:23.880 four trillion will be passed to spouses first before it 0:52:23.920 --> 0:52:28.560 goes down another generation, So forty percent of those spousal 0:52:28.600 --> 0:52:31.000 transfers will be to women. So this is what Sally 0:52:31.040 --> 0:52:34.799 Crawchak calls the feminization of wealth. And the idea is 0:52:34.840 --> 0:52:38.320 that when are The important idea I think here for 0:52:38.760 --> 0:52:40.960 you for your industry is that when women get hold 0:52:41.000 --> 0:52:43.760 of this money, they often don't stick with their same 0:52:44.280 --> 0:52:46.520 wealth managers. They often say, you know what, I'm going 0:52:46.560 --> 0:52:49.319 to go with someone else now, So what do you 0:52:49.360 --> 0:52:51.120 do if you want to get hold of a piece 0:52:51.120 --> 0:52:51.640 of that pie? 0:52:51.760 --> 0:52:54.160 Yeah, So maybe I might even just dimensionalize what you 0:52:54.840 --> 0:52:58.320 mentioned because I think about it in percentages. So today 0:52:58.400 --> 0:53:01.400 let's call it women responsible and controlling thirty percent of 0:53:01.440 --> 0:53:04.240 the world's wealth. That will be fifty percent by twenty thirty. 0:53:04.280 --> 0:53:06.719 That will be seventy percent by twenty seventy. So these 0:53:06.719 --> 0:53:10.200 are big numbers, amazing big numbers. And women, as you say, 0:53:10.280 --> 0:53:12.160 they do things differently, right, and they want to do 0:53:12.200 --> 0:53:14.600 things differently. And oftentimes when they're getting a hold of 0:53:14.600 --> 0:53:16.839 this wealth, right, when wealth is passing to them, either 0:53:16.880 --> 0:53:20.000 through their parents and family or through their spouses, they 0:53:20.000 --> 0:53:22.120 want to do it differently. They want to be served differently. 0:53:22.160 --> 0:53:27.600 Seventy percent of women leave their husband's financial advisor after 0:53:27.680 --> 0:53:31.400 a divorce or a death within one year. Seventy percent. 0:53:31.520 --> 0:53:32.239 Why is that? 0:53:32.520 --> 0:53:36.239 Because they oftentimes felt not heard, not part of the conversation, 0:53:37.200 --> 0:53:39.399 not at the table and making decisions. You know, there's 0:53:39.440 --> 0:53:42.439 a lot of misconceptions around women, right. People think women 0:53:42.480 --> 0:53:45.080 are engaged with finance. It's just not true. A third 0:53:45.120 --> 0:53:48.640 of US households have women as the primary financial decision maker. 0:53:49.080 --> 0:53:52.600 People think women or call women perhaps a bit risk averse. 0:53:52.960 --> 0:53:55.360 Well, that's what I wanted to ask you. Are women 0:53:56.000 --> 0:53:58.200 risk averse? Like, give me an idea when you're talking 0:53:58.200 --> 0:54:00.240 about investments. I mean, we've been thinking about the AI 0:54:00.360 --> 0:54:04.000 trade or private assets. Are they risk averse? So we 0:54:04.040 --> 0:54:06.120 did a study to make generalist No, but I'm curious 0:54:06.120 --> 0:54:07.200 that there are. 0:54:07.120 --> 0:54:10.200 So okay, so not a monolith, right. Women are very different. 0:54:10.200 --> 0:54:12.000 All my friends are different than me. We all do 0:54:12.040 --> 0:54:15.640 different things and need different things. But generally speaking, we 0:54:15.680 --> 0:54:19.919 did a study with twenty five hundred female investors. When 0:54:19.920 --> 0:54:23.200 we talk to them about their risk tolerance, the majority 0:54:23.239 --> 0:54:26.680 of them were actually moderate to aggressive because they saw 0:54:26.719 --> 0:54:29.600 the power of not just gaining wealth through working or 0:54:29.640 --> 0:54:32.400 through transition, but actually gaining well through the capital markets 0:54:32.760 --> 0:54:36.799 right investing in items that will end securities and portfolios 0:54:36.840 --> 0:54:40.000 that will actually help them grow their portfolio. Private markets 0:54:40.080 --> 0:54:42.920 is a great example again for a financial advisor to 0:54:42.960 --> 0:54:46.799 play that role and help and coach and guide a 0:54:46.880 --> 0:54:49.480 woman and how she thinks about her portfolio across public 0:54:49.520 --> 0:54:52.000 and private. Last time we were together, we talked about 0:54:52.000 --> 0:54:55.000 direct indexing and the role of taxes or you know, 0:54:55.040 --> 0:54:58.640 women oftentimes want to you're laughing index. 0:55:00.080 --> 0:55:00.520 Let me know what. 0:55:00.560 --> 0:55:02.640 I anchored the ETF show for a long time. That's 0:55:02.640 --> 0:55:04.520 a big part of that discussion as well. You know what, 0:55:04.560 --> 0:55:08.919 it's not just women. Obviously, kids are going to get 0:55:08.920 --> 0:55:11.960 hold of a lot of this money. And I think 0:55:12.160 --> 0:55:14.440 I'm not sure about women, but I know with younger 0:55:14.480 --> 0:55:17.640 people they want to do more impact investing than their 0:55:17.680 --> 0:55:20.960 parents did or their grandparents did. So is that also 0:55:21.000 --> 0:55:23.280 a key to trying Because I'm thinking from the perspective 0:55:23.280 --> 0:55:25.960 of a wealth manager who wants more business. So what 0:55:26.040 --> 0:55:27.560 I need to do is say, hey, I can I 0:55:27.600 --> 0:55:30.040 can set up some direct indexing for you, and I 0:55:30.040 --> 0:55:32.560 can help you make an impact with the money you invest. 0:55:32.640 --> 0:55:35.080 It's not just to make more money. You're also going 0:55:35.160 --> 0:55:37.360 to change some part of the world that you want to. 0:55:37.400 --> 0:55:38.440 Is that the case it is? 0:55:38.480 --> 0:55:41.280 And I like to use the word purpose because actually 0:55:41.360 --> 0:55:43.880 impact is many different meetings. And so if I'm a 0:55:43.920 --> 0:55:47.040 financial advisor and I'm working with a younger client or 0:55:47.080 --> 0:55:49.200 a woman, I'm going to be talking to them. By 0:55:49.239 --> 0:55:51.799 the way, men too, Right, it's not just about the 0:55:51.920 --> 0:55:53.880 impact you're having. You could invest in a way that 0:55:53.920 --> 0:55:56.520 maybe aligns with your values and maybe have certain values 0:55:56.560 --> 0:55:58.920 that are important to you to hold in that portfolio. 0:55:58.960 --> 0:56:00.239 I love motorcycles, and. 0:56:02.960 --> 0:56:03.319 There we go. 0:56:03.880 --> 0:56:06.600 But you know, I often wonder about that because you know, 0:56:06.840 --> 0:56:10.040 if you care about the environment, but if an investment 0:56:10.080 --> 0:56:13.439 doesn't pay, do people are people doing that because they 0:56:13.480 --> 0:56:16.560 believe in it, but it may not return as much 0:56:16.560 --> 0:56:17.400 as something else. 0:56:17.680 --> 0:56:19.400 I'm going to give you an answer that will be 0:56:19.480 --> 0:56:22.840 terribly unfulfilling. It depends, Okay, Right, so there are people. 0:56:23.040 --> 0:56:24.880 And by the way, let's step away from the portfolio 0:56:25.040 --> 0:56:27.680 for a moment and say what about philanthropy. This is 0:56:27.719 --> 0:56:30.040 where I come back to purpose. Right. People are looking 0:56:30.080 --> 0:56:32.799 to put their money to good cause, and that might 0:56:32.840 --> 0:56:35.520 be philanthropic. It might be impact in their portfolio. It 0:56:35.560 --> 0:56:38.080 might be aligning with the values I have. It might 0:56:38.080 --> 0:56:40.480 also be sending my children to school, or helping my 0:56:40.560 --> 0:56:44.160 elderly parents, or starting a new business. Right, how about 0:56:44.160 --> 0:56:44.800 that for purpose? 0:56:44.960 --> 0:56:46.560 Or shielding your money from taxes? 0:56:47.000 --> 0:56:47.200 Right? 0:56:47.280 --> 0:56:51.400 I mean, I guess I'd be willing to take somewhat 0:56:51.440 --> 0:56:55.840 of a loss by putting my money into a philanthropical vehicle, 0:56:56.760 --> 0:56:59.359 especially if it's compared to a much bigger loss by 0:56:59.400 --> 0:57:03.080 giving it away to Uncle Sam, state, local, and federal taxes. 0:57:03.280 --> 0:57:03.560 Yeah. 0:57:03.600 --> 0:57:05.360 And again that's why don't look at things in a vacuum. 0:57:05.360 --> 0:57:07.400 You have to look at them right overall. 0:57:07.040 --> 0:57:09.880 Holistic wealth planning, and again the role of a financial 0:57:09.920 --> 0:57:10.920 advisor is critical. 0:57:10.960 --> 0:57:13.360 There got to ask you just in general, when you 0:57:13.400 --> 0:57:16.320 look at this environment, and we talk a lot about 0:57:16.320 --> 0:57:19.360 a bubble, right now, I don't know what is what 0:57:19.480 --> 0:57:21.040 is your take on it? What are you or what 0:57:21.080 --> 0:57:22.920 are the conversations you're having with clients about how they 0:57:22.920 --> 0:57:25.880 feel about Are they little nervous? That's about that trade. 0:57:26.040 --> 0:57:28.040 Yeah, we talk about I mean we talk to clients, 0:57:28.520 --> 0:57:33.840 advisors and clients institutions globally all the time. Look, the 0:57:33.880 --> 0:57:36.840 markets are the markets, and there are long term investors 0:57:36.840 --> 0:57:38.960 that need to just keep staying with the markets. We 0:57:39.000 --> 0:57:40.960 talk about it's not time in the market or timing 0:57:41.000 --> 0:57:44.840 the markets. It's time in the markets. The other thing, though, 0:57:44.880 --> 0:57:47.160 is you just have to acknowledge that there's uncertainty out 0:57:47.160 --> 0:57:50.000 there right. There is volatility, there are things going on 0:57:50.040 --> 0:57:53.040 in the markets that again everyday people, let's take it 0:57:53.080 --> 0:57:56.200 to America and Americans every day people need professional advice. 0:57:56.320 --> 0:57:58.320 They need someone they can trust that will help them 0:57:58.400 --> 0:58:02.920 navigate that through professionally managed solutions or through advice. But 0:58:02.960 --> 0:58:05.480 there is uncertainty out there. But again we come back 0:58:05.520 --> 0:58:09.400 to it's time in the market, not timing the market. 0:58:09.960 --> 0:58:12.920 Twenty seconds, Jamie, I mean on more people feeling comfortable 0:58:12.960 --> 0:58:15.480 putting money to work, or they after kind of a 0:58:15.560 --> 0:58:18.720 nice bounce from the April lows, or they're like, I'm 0:58:18.760 --> 0:58:20.280 good I'm done. I want to be a little bit 0:58:20.280 --> 0:58:21.400 more conservative, just quickly. 0:58:21.520 --> 0:58:24.800 No, we are seeing flows into portfolios and ways that 0:58:24.840 --> 0:58:25.480 are across. 0:58:25.320 --> 0:58:27.280 As I said, black Rock was up a trillion dollars 0:58:27.280 --> 0:58:28.520 since the summer we talk. 0:58:28.640 --> 0:58:31.400 We are having the best conversations we've ever been having 0:58:31.400 --> 0:58:35.439 with financial advisors, institutions and wealth managers across the world. 0:58:35.720 --> 0:58:36.960 People are very interested. 0:58:37.560 --> 0:58:40.720 That was Jamie mcgheira, head of US Wealth Advisory and 0:58:40.720 --> 0:58:43.640 head of Retirement over at Blackrock. Bloomberg's Matt Miller joining 0:58:43.720 --> 0:58:47.280 us as well there too, still ahead on Bloomberg BusinessWeek. 0:58:47.480 --> 0:58:50.720 A recipe for success when it comes to storytelling. We've 0:58:50.720 --> 0:58:53.160 got the chef and culinary producer of the Emmy Award 0:58:53.160 --> 0:58:54.840 winning FX hit The Bear. 0:58:55.160 --> 0:59:01.400 There is so much camaraderie, chemistry, teamwork andens that gets 0:59:01.400 --> 0:59:04.479 you coming back every day. I learn so much about 0:59:04.560 --> 0:59:07.280 who I am as an individual by the challenge of, 0:59:07.640 --> 0:59:10.360 you know, running restaurants line cooking. Not only do I 0:59:10.360 --> 0:59:13.520 develop my skills as like a natural chef, but I 0:59:13.560 --> 0:59:16.520 think as a person. I've learned so much from every 0:59:16.520 --> 0:59:18.360 single person that I've been in a kitchen. 0:59:18.120 --> 0:59:22.240 With and exclusive access to influencers without the nudity. It's 0:59:22.280 --> 0:59:24.680 the it is venture from the youngest female self made 0:59:24.720 --> 0:59:25.960 billionaire in the world. 0:59:26.640 --> 0:59:29.120 Anyone can make money. It's more so like the amount 0:59:29.120 --> 0:59:31.120 of people that are willing to put in the time 0:59:31.160 --> 0:59:34.120 to make the content right. It's just like how many 0:59:34.160 --> 0:59:37.160 people are willing to work hard to make that income. 0:59:37.760 --> 0:59:41.320 And when you just look like really every career on 0:59:41.320 --> 0:59:44.400 this planet, there's a limited amount of people willing to 0:59:44.400 --> 0:59:46.040 put into effort. And we see that the people that 0:59:46.040 --> 0:59:47.720 are willing to put into effort so like churn out 0:59:47.760 --> 0:59:49.480 content are the ones succeeding. 0:59:49.480 --> 0:59:52.360 More of our favorite conversations at this month's screen Time event. 0:59:52.480 --> 0:59:57.560 They're coming up next when Bloomberg Business Week continues. 1:00:00.160 --> 1:00:03.959 You are listening to the Bloomberg business Weekdaily podcast. Catch 1:00:04.000 --> 1:00:07.240 us live weekday afternoons from two to five pm Eastern, 1:00:07.400 --> 1:00:10.440 Listen on Apple CarPlay and Android Auto with the Bloomberg 1:00:10.520 --> 1:00:14.000 Business app, or watch us live on YouTube. 1:00:14.280 --> 1:00:16.200 So we wanted to wrap up this hour by bringing 1:00:16.240 --> 1:00:19.240 back some of our favorite conversations from this month's Bloomberg 1:00:19.240 --> 1:00:22.960 screen Time event held recently in Hollywood, California, and that 1:00:23.000 --> 1:00:26.000 brings us to a chef and a culinary producer of 1:00:26.040 --> 1:00:29.200 the Emmy Award winning hit FX show The Bear. She 1:00:29.480 --> 1:00:32.440 is on Bloomberg BusinessWeek screen Time Ones to Watch List. 1:00:32.680 --> 1:00:34.960 She is Courtney Store and she sat down with Tim 1:00:35.000 --> 1:00:36.720 and me to talk about her world. 1:00:37.160 --> 1:00:40.440 Culinary producer deals with kind of macro and micro issues 1:00:40.440 --> 1:00:44.280 of the show. So I work very closely with Christopher, 1:00:44.360 --> 1:00:46.800 who is the creator of The Bear, also my brother, 1:00:47.840 --> 1:00:51.600 and then you know, the writing team, and I kind 1:00:51.640 --> 1:00:54.680 of kind of help inform some of the character development 1:00:54.720 --> 1:00:57.800 based on my own personal experience. And then every day 1:00:57.840 --> 1:01:00.400 on the show i'm there. I do work hand in 1:01:00.480 --> 1:01:03.480 hand with my culinary team, and we do all of 1:01:03.560 --> 1:01:04.000 the food. 1:01:05.160 --> 1:01:05.800 We cook it. 1:01:05.960 --> 1:01:08.360 We don't have food stylus, so everything you see on 1:01:08.400 --> 1:01:10.360 the show, we run it like an actual restaurant, so 1:01:10.360 --> 1:01:13.360 we have a full team. But I'm also there to 1:01:13.480 --> 1:01:16.680 help sort of work with, you know, the film department, 1:01:17.160 --> 1:01:20.320 set decoration props to make sure we are as accurate 1:01:20.400 --> 1:01:23.920 as possible, and it kind of I wear a lot 1:01:23.920 --> 1:01:26.200 of different hats, so wherever they need me, I go. 1:01:26.520 --> 1:01:30.560 But I definitely use the script to inform the direction 1:01:30.640 --> 1:01:33.360 of the food, and then I'm responsible to work with 1:01:33.360 --> 1:01:35.440 the cast to kind of bring those things to life 1:01:35.680 --> 1:01:37.720 and as you see on the show, these actors are 1:01:37.760 --> 1:01:40.440 actually cooking, so we don't use hand doubles like they're 1:01:40.520 --> 1:01:40.840 doing it. 1:01:41.160 --> 1:01:42.920 So it has such a thing as hand doubles and 1:01:42.960 --> 1:01:45.800 cooking of course. Yeah, all right, so okay, first of all, 1:01:45.840 --> 1:01:47.600 it's like the food is I mean, I don't want 1:01:47.640 --> 1:01:50.360 to say, because the actors on the show are incredible, 1:01:50.560 --> 1:01:53.200 but it's like the main actor. So how hard is 1:01:53.240 --> 1:01:55.360 it to do what you do? 1:01:56.040 --> 1:01:59.960 It's actually it's it's challenging, but it's very fun because 1:02:00.200 --> 1:02:03.560 I'm coming from the real restaurant world. I'm a chef, 1:02:03.920 --> 1:02:05.520 you know, I've been a chef here in Los Angeles 1:02:05.560 --> 1:02:07.400 for many years. I've been in the restaurant world forever, 1:02:07.760 --> 1:02:10.560 and I think bringing these things to life takes a 1:02:10.560 --> 1:02:13.880 lot of like information of all the restaurants that I've 1:02:13.880 --> 1:02:16.280 been in, and then doing it on camera and then 1:02:16.400 --> 1:02:19.120 having it not only look great, but time and temperature 1:02:19.160 --> 1:02:22.160 sensitive wise. We shoot very very fast, so it really 1:02:22.240 --> 1:02:23.800 is a team effort to be like this is the 1:02:23.880 --> 1:02:27.040 end dish and getting everybody in the loop of how 1:02:27.080 --> 1:02:29.520 and when to shoot it when it would perfect. 1:02:29.520 --> 1:02:31.960 I don't want thing's melting or we're stying or like right, yeah, 1:02:32.040 --> 1:02:33.640 so you have this background as a chef, you have 1:02:33.680 --> 1:02:35.640 a background a chef, a chef, you have background in 1:02:35.720 --> 1:02:36.720 culinary training. 1:02:37.800 --> 1:02:40.919 Mattie Matheson, of course, is an actual chef. Jeremie Allen 1:02:40.920 --> 1:02:43.600 White did go to Yes a couple of weeks of 1:02:43.640 --> 1:02:44.560 culinary Yeah. 1:02:44.480 --> 1:02:48.760 Io did too, Yes, Io went, Liza went. They all 1:02:48.800 --> 1:02:51.200 spent time with me directly here in Los Angeles in 1:02:51.240 --> 1:02:54.480 my kitchen, my catering kitchen, where we trained to work 1:02:54.480 --> 1:02:56.680 on some specifics for the show that would be done 1:02:56.840 --> 1:03:01.080 on camera. As you see, you know Tea's character, she's 1:03:01.240 --> 1:03:04.920 you know, fullaying Bronzeno in culinary school and she's left handed. 1:03:05.160 --> 1:03:07.160 So how we filmed that scene and how she had 1:03:07.200 --> 1:03:09.360 to practice that scene. It's like we have to actually 1:03:09.360 --> 1:03:12.280 apply these skills so that they read on camera. And 1:03:12.320 --> 1:03:14.840 it's been so helpful for their own journey to actually 1:03:14.880 --> 1:03:18.960 experience culinary school, working with chefs, stodging and restaurants, and 1:03:19.000 --> 1:03:21.800 then actually doing it on camera really helps them get 1:03:21.800 --> 1:03:23.000 it right. 1:03:23.640 --> 1:03:25.080 What were they like in the beginning, Like was it 1:03:25.720 --> 1:03:29.680 like I think everyone well, I think there was so crazy. 1:03:29.760 --> 1:03:32.040 I mean, iow is very she loves food, so like 1:03:32.160 --> 1:03:36.439 I feel like Jeremy Iolonel, you know, Liza. They all 1:03:36.480 --> 1:03:39.400 have passion for food, so that helps, and they were 1:03:39.440 --> 1:03:40.400 eager to get it right. 1:03:40.440 --> 1:03:43.520 And I don't want to diss Yes, I know they've. 1:03:43.280 --> 1:03:45.720 Come a long way a different skill. Yes, they've come 1:03:45.720 --> 1:03:47.320 a long way. And I see the effort that they 1:03:47.400 --> 1:03:50.000 put in each season. And remember now we're going into 1:03:50.240 --> 1:03:53.000 our fifth season. So we practice before we go to 1:03:53.120 --> 1:03:55.720 film each each year, so they're building their skills as 1:03:55.760 --> 1:03:55.920 we go. 1:03:56.200 --> 1:03:58.480 So my wife work in kitchensertion, so we would watch 1:03:58.520 --> 1:03:59.720 the show together and she'd be like, this is what 1:03:59.720 --> 1:04:02.560 it's actually like. The masking tape on labeling things, and 1:04:02.560 --> 1:04:04.760 like we actually drink out of those like to go containers. 1:04:04.760 --> 1:04:05.720 We call them Deli's. 1:04:05.840 --> 1:04:08.560 Okay, that's what it's like. I worked at Taco Bell, 1:04:08.640 --> 1:04:10.800 so I have no idea what's important it's but it's 1:04:10.800 --> 1:04:13.040 not like this at all. But I got to tell you, like, 1:04:13.080 --> 1:04:15.360 after watching a few episodes of the first season, I'm like, 1:04:16.120 --> 1:04:20.680 who wants to do this? The pressure is crazy. You're 1:04:20.720 --> 1:04:23.160 getting paid a fraction. It's like it's like the pressure 1:04:23.200 --> 1:04:25.959 of being a brain surgeon without any of the pay. 1:04:26.320 --> 1:04:27.680 Yeah, and the hours are worse. 1:04:27.840 --> 1:04:29.920 Yeah, I think that's a really good question. And I 1:04:29.920 --> 1:04:32.880 think what the show does kind of do a really 1:04:32.920 --> 1:04:35.240 good job at is show some of the difficulties and 1:04:35.280 --> 1:04:40.280 some of the wonderful things, like there is so much camaraderie, chemistry, 1:04:40.400 --> 1:04:43.840 teamwork in kitchens that gets you coming back every day. 1:04:44.200 --> 1:04:46.720 I learn so much about who I am as an 1:04:46.760 --> 1:04:50.880 individual by the challenge of you know, running restaurants line cooking. 1:04:51.080 --> 1:04:53.600 Not only do I develop my skills as like a 1:04:53.680 --> 1:04:56.600 natural chef, but I think as a person, I've learned 1:04:56.640 --> 1:04:59.000 so much from every single person that I've been in 1:04:59.000 --> 1:05:01.960 a kitchen with. And that's from the porters to the dishwashers, 1:05:01.960 --> 1:05:04.320 to the front of house host to you know, the 1:05:04.360 --> 1:05:07.320 head chef. There is always something to learn in kitchens 1:05:07.800 --> 1:05:10.840 and it's fun. It's actually quite fun. It's stressful, yes, 1:05:10.960 --> 1:05:13.400 but there is a reason that people come back every day. 1:05:13.440 --> 1:05:16.959 All right, So tell us something we're something up earned 1:05:17.000 --> 1:05:21.960 or we're all Does that happen a lot on the show. Yeah, Well, 1:05:22.000 --> 1:05:25.640 when you're like going, we climbing is so important of course. 1:05:25.720 --> 1:05:28.240 Of course, there's a lot of setting each other up 1:05:28.240 --> 1:05:30.280 for success. And I have to say, like, without my 1:05:30.320 --> 1:05:34.480 culinary team, we are very diligently working to make the 1:05:34.480 --> 1:05:37.680 best of everyone's time that is working alongside us. And 1:05:37.720 --> 1:05:40.720 there's a huge, incredible camera department that we're you know, 1:05:40.800 --> 1:05:43.960 being mindful of them holding these heavy cameras and you know, 1:05:44.040 --> 1:05:47.000 getting it right. So we practice a lot before we 1:05:47.040 --> 1:05:49.240 actually shoot. There is a lot of work on the 1:05:49.240 --> 1:05:52.320 pre production side before we have cameras rolling. It's really 1:05:52.320 --> 1:05:55.000 important that we come and like bring our a game 1:05:55.200 --> 1:05:57.160 because we don't want things to earn of course, like 1:05:57.400 --> 1:05:59.280 we have to redo dishes if ice cream moltse or 1:05:59.360 --> 1:06:01.360 something like that, but we make sure we're prepared to 1:06:01.400 --> 1:06:02.600 set up everybody for it looks like. 1:06:02.640 --> 1:06:04.720 Anything else in terms, like you just make sure everybody's 1:06:04.760 --> 1:06:06.680 on their a game. We treat it like service. 1:06:06.720 --> 1:06:08.240 We treat it like a dinner service. 1:06:09.800 --> 1:06:10.439 To change your job. 1:06:10.520 --> 1:06:12.760 Yeah no, I don't think it's in my DNA. 1:06:13.000 --> 1:06:15.800 Yeah, yeah, I think you'd be surprised, though. I think 1:06:15.920 --> 1:06:18.000 some of my best cooks I ever cooked a day 1:06:18.040 --> 1:06:18.640 in their life. 1:06:18.760 --> 1:06:22.360 Really. Yeah. That's Courtney storer chef and culinary producer of 1:06:22.400 --> 1:06:25.480 The Bear and on the Bloomberg BusinessWeek screen Time Ones 1:06:25.480 --> 1:06:28.520 to Watch list. Also included in that group is the 1:06:28.560 --> 1:06:32.040 youngest female self made billionaire in the world. She is 1:06:32.080 --> 1:06:34.280 the co founder of Scale ai, which after a multi 1:06:34.280 --> 1:06:37.560 billion dollar investment from Metal Platforms, valued the company at 1:06:37.560 --> 1:06:40.960 more than twenty nine billion dollars. That's not all that 1:06:41.040 --> 1:06:43.200 she's doing though right now. She is also the founder 1:06:43.240 --> 1:06:46.760 and CEO of Passes, which helps social media influencers diversify 1:06:46.800 --> 1:06:51.200 their income streams. Think exclusive photos, DMS, video calls, live streams, 1:06:51.320 --> 1:06:53.920 and more. She checked in with Tim and me All 1:06:53.920 --> 1:06:55.120 from Bloomberg screen Time. 1:06:55.560 --> 1:06:57.880 Anyone can join a platform as long as they're not 1:06:57.920 --> 1:06:59.480 creating new content, so that's it. 1:07:00.000 --> 1:07:01.920 It's a dividing line. That's a dividing line. So talk 1:07:01.920 --> 1:07:03.840 to us about your growth that you're seeing on the 1:07:03.880 --> 1:07:05.960 platform in terms of people you know wanting to be 1:07:06.080 --> 1:07:07.920 on it, staying on it. Talk to us about some 1:07:07.920 --> 1:07:10.200 of the velocity that you're seeing. Yeah, definitely. 1:07:10.280 --> 1:07:12.439 Well, with creators that make over five thousand a month, 1:07:12.560 --> 1:07:15.000 we have near one hundred percent retention, which is really exciting. 1:07:15.600 --> 1:07:17.880 We see in four x growth from twenty twenty three 1:07:17.920 --> 1:07:20.240 to twenty four to twenty twenty five, and hopefully we'll 1:07:20.240 --> 1:07:24.080 see more of that, which is exciting. And then we 1:07:24.840 --> 1:07:28.800 have crossed to nine figures in earnings four creators, which 1:07:28.840 --> 1:07:32.120 is also very exciting. So those are just like high 1:07:32.160 --> 1:07:33.880 level numbers I can share with you guys today. 1:07:33.960 --> 1:07:36.520 Well, some of the reporting around OnlyFans, for example, has 1:07:36.720 --> 1:07:39.000 has shown that, like there's a small number of people 1:07:39.000 --> 1:07:41.919 who make the vast majority of the money on the platform. 1:07:42.160 --> 1:07:44.200 Is it more evenly distributed on passes? 1:07:44.320 --> 1:07:46.800 I would definitely say it's more evenly distributed. But I 1:07:46.800 --> 1:07:48.920 would also say that like our top like let's say 1:07:48.920 --> 1:07:51.400 thirty percent of creators make the majority of the GMV. 1:07:52.320 --> 1:07:54.160 That's so that's a challenge for people who are trying 1:07:54.160 --> 1:07:54.640 to get in. 1:07:55.880 --> 1:07:59.280 I mean, I would say that anyone can make money, 1:07:59.320 --> 1:08:01.000 it's more so like the amount of people that are 1:08:01.000 --> 1:08:03.520 willing to put in the time to make the content right, 1:08:04.360 --> 1:08:06.680 It's just like how many people are willing to work 1:08:06.960 --> 1:08:09.880 hard to make that income. And when you just look 1:08:09.960 --> 1:08:14.880 like really every career on this planet, there's a limited 1:08:14.920 --> 1:08:16.720 amount of people willing to put into effort. And we 1:08:16.720 --> 1:08:18.120 see that the people that are willing to put into 1:08:18.120 --> 1:08:20.360 effort to like churn out content are the ones succeeding. 1:08:20.600 --> 1:08:23.120 Lucy, how do you bring or track people to the platform, Like, 1:08:23.120 --> 1:08:24.040 what do you guys have to do? 1:08:24.320 --> 1:08:26.360 So a lot of it is organic, so word of mouth. 1:08:26.760 --> 1:08:29.080 A lot of creators just talk about like how much 1:08:29.120 --> 1:08:30.559 they love the platform and how much they've made, and 1:08:30.560 --> 1:08:32.800 people hear about it, so they end up joining. Other 1:08:32.880 --> 1:08:35.240 than that, we do a lot of social media. We 1:08:35.280 --> 1:08:37.520 do a lot of events because we think that's a 1:08:37.640 --> 1:08:41.160 relationships driven business where I think there's like platform retention, 1:08:41.200 --> 1:08:43.680 but there's also emotional retention, and that motion retention comes 1:08:43.760 --> 1:08:46.960 like people to people connections and the creator economy. Emotional 1:08:47.000 --> 1:08:49.240 retention is a very real thing. I would say it's 1:08:49.280 --> 1:08:53.640 potentially stronger than platform retention. So we work on a 1:08:53.680 --> 1:08:55.800 lot of face to face interactions with creators as well. 1:08:55.920 --> 1:08:59.839 You dropped out of Carnegie Mellon for a teal fellowship. Obviously, 1:09:00.200 --> 1:09:01.840 in hindsight it was the right move. He went on 1:09:01.920 --> 1:09:05.600 to co create scale Ai, incredible success there. I'm just 1:09:05.640 --> 1:09:09.280 curious though about your view of higher education. Having participated 1:09:09.280 --> 1:09:11.400 in it for a short time and then left, how 1:09:11.400 --> 1:09:14.840 do you think higher education has to change to prepare 1:09:14.840 --> 1:09:17.200 the next generation of leaders, to prepare the next generation 1:09:17.240 --> 1:09:18.200 of entrepreneurs. 1:09:18.479 --> 1:09:21.280 Yeah, so I think that with higher education. Well, first 1:09:21.280 --> 1:09:23.719 of my view on higher education is that I actually 1:09:23.800 --> 1:09:26.120 encourage everyone to do college for one to two years. 1:09:26.600 --> 1:09:27.920 Not because I think you're going to be learning a 1:09:27.960 --> 1:09:30.240 lot in your classes, but because I think there's no 1:09:30.400 --> 1:09:32.240 period of time in your life that you're going to 1:09:32.280 --> 1:09:34.280 be thrown into where you're going to be in a 1:09:34.400 --> 1:09:37.680 high density of intellectual individuals that all have no friends. Like, 1:09:37.720 --> 1:09:40.719 if you think about it, even when you graduate college 1:09:40.760 --> 1:09:44.200 and you go enter the job force, most of the 1:09:44.240 --> 1:09:46.120 people at the company that you're about to work for 1:09:46.200 --> 1:09:48.400 already have friends, so it's harder to break into a 1:09:48.439 --> 1:09:51.400 social team versus. College is the only period in your 1:09:51.439 --> 1:09:55.160 life where literally everyone in the freshman class knows nobody, 1:09:55.240 --> 1:09:55.680 right a. 1:09:55.640 --> 1:09:57.720 Grand social expense exactly. 1:09:57.560 --> 1:10:00.400 Yeah, And it's a high density network of people just 1:10:00.479 --> 1:10:03.360 as intellectually intelligent as you. And I think college is 1:10:03.400 --> 1:10:06.360 really where you find your future co founders, your future hires, 1:10:06.360 --> 1:10:09.320 et cetera. Because when you're starting a company, for example, 1:10:10.439 --> 1:10:12.559 who is going to turn down a multi million dollar 1:10:12.600 --> 1:10:15.560 offer to join you? And the most talented people, like 1:10:15.600 --> 1:10:17.439 the most talented engineers, are getting those straight out of 1:10:17.439 --> 1:10:20.559 college right now. Only people that like really believe in 1:10:20.600 --> 1:10:24.280 you because they have that emotional connection. So I really 1:10:24.360 --> 1:10:26.759 encourage everyone to go to college and meet as many 1:10:26.920 --> 1:10:29.440 talented people as they can the first one to two years. 1:10:30.160 --> 1:10:32.360 In terms of how I see college moving on towards 1:10:32.360 --> 1:10:35.760 the future, I think from my own personal experience, I 1:10:35.800 --> 1:10:37.720 do think that we could be learning a lot more 1:10:37.800 --> 1:10:40.880 practical skills that we can actually use in the job force. So, 1:10:41.120 --> 1:10:43.519 for example, when I was studying career science at Carnegie Mellon, 1:10:43.800 --> 1:10:46.400 a lot of it was very theoretical math, and I 1:10:46.439 --> 1:10:48.960 felt like I learned the most about product sense, about 1:10:48.960 --> 1:10:51.600 actually like making aps et cetera. Through hackathons that was 1:10:51.600 --> 1:10:54.000 attending every few weeks. 1:10:53.520 --> 1:10:56.680 It's almost like the concept of trade schools somewhere with 1:10:57.200 --> 1:11:00.680 higher education. There's something there. What your twenty seconds on 1:11:00.720 --> 1:11:04.280 AI in terms of yeah, so I'm pat it's going 1:11:04.360 --> 1:11:07.200 to have on our world for sure, Either that or indifferent. 1:11:07.600 --> 1:11:12.040 I'm excited. I think that with every technological innovation, things 1:11:12.040 --> 1:11:14.400 have improved in the world for everybody. I think that 1:11:14.439 --> 1:11:16.240 we should view AI as our co pilot and not 1:11:16.360 --> 1:11:18.000 something that's going to replace us. It's going to help 1:11:18.080 --> 1:11:19.320 us be better at our jobs. 1:11:19.439 --> 1:11:21.639 You're not scared, No, should we be scared? 1:11:21.760 --> 1:11:22.520 No? 1:11:24.360 --> 1:11:24.760 All right? 1:11:25.200 --> 1:11:27.519 Our Thanks to Lucy Go, founder and CEO of Passes 1:11:27.560 --> 1:11:30.400 and co founder of Scale Ai. And that wraps up 1:11:30.400 --> 1:11:32.880 the weekend edition of Bloomberg Business Week from Bloomberg Radio. 1:11:32.880 --> 1:11:34.920 Thank you so much for joining us. Be sure to 1:11:34.960 --> 1:11:37.840 tune into Bloomberg Business Week Daily Monday through Friday starting 1:11:37.840 --> 1:11:40.800 at two pm Wall Street Time on Bloomberg TV, Bloomberg Radio, 1:11:40.840 --> 1:11:43.720 and on Serious six sem Channel one twenty one. You 1:11:43.760 --> 1:11:47.120 can listen to us also on Apple CarPlay and Android Auto. 1:11:47.439 --> 1:11:50.120 It's freeing the Apple App Store or on Google Play. 1:11:50.439 --> 1:11:52.720 You can also watch our daily broadcast on YouTube. Just 1:11:52.720 --> 1:11:56.880 search Bloomberg Podcasts where simulcast on Bloomberg Originals available at 1:11:56.920 --> 1:12:02.440 Bloomberg dot com, Slash Originals, and streaming platform including Roku, Amazon, fireTV, 1:12:02.760 --> 1:12:06.320 Simsung TV Plus and more. Find our Bloomberg Business Weekdaily 1:12:06.360 --> 1:12:09.240 Podcast at Bloomberg dot com, Apple, or wherever you get 1:12:09.240 --> 1:12:12.120 your podcasts, and always check out the latest edition of 1:12:12.160 --> 1:12:15.280 the magazine. It is available on newsstands at Bloomberg dot 1:12:15.320 --> 1:12:18.599 com and always on the Bloomberg terminal. I'm Carol Masser 1:12:18.760 --> 1:12:20.600 Tim We'll be back next week. Have a good and 1:12:20.640 --> 1:12:21.920 safe weekend everyone. 1:12:22.680 --> 1:12:28.040 This is the Bloomberg Business Week Daily Podcast, available on Apple, Spotify, 1:12:28.160 --> 1:12:31.879 and anywhere else you get your podcasts. Listen live weekday 1:12:31.920 --> 1:12:35.839 afternoons from two to five pm Eastern on Bloomberg dot com, 1:12:35.960 --> 1:12:39.880 the iHeartRadio app tune In, and the Bloomberg Business app. 1:12:40.120 --> 1:12:43.000 You can also watch us live every weekday on YouTube 1:12:43.080 --> 1:12:45.240 and always on the Bloomberg terminal