WEBVTT - Airbnb Rentals for Paris Olympic Games, Climate Goals at Risk 0:00:02.080 --> 0:00:05.920 This is Bloomberg Intelligence with Alex Steel and Paul'sweenye. 0:00:06.000 --> 0:00:09.240 The real app performance has been the US corporate high yield. 0:00:09.400 --> 0:00:11.760 Are the companies lean enough? Have they trimmed all the fats? 0:00:11.800 --> 0:00:15.600 The semiconductor business is a really cyclical business. 0:00:15.120 --> 0:00:18.680 Breaking market headlines and corporate news from across the globe. 0:00:18.760 --> 0:00:21.360 Do investors like the M and A that we've seen? 0:00:21.600 --> 0:00:24.640 These are two big time blue chip companies. 0:00:24.960 --> 0:00:29.680 Window between the peak and cut changing super fast Bloomberg. 0:00:29.200 --> 0:00:33.400 Intelligence with Alex Steel and Paulswhennye on Bloomberg Radio. 0:00:33.880 --> 0:00:36.480 On Today's Bloomberg Intelligence Show, we dig inside the big 0:00:36.520 --> 0:00:39.040 business stories impacting Wall Street and the global markets. 0:00:39.200 --> 0:00:41.440 Each and every week we provide enough research and data 0:00:41.479 --> 0:00:43.320 on some of the two thousand companies and one hundred 0:00:43.320 --> 0:00:45.600 and thirty industries our analysts cover worldwide. 0:00:45.760 --> 0:00:47.360 Today we'll take a look at how one company is 0:00:47.400 --> 0:00:49.640 looking to fix your terrible board meetings. 0:00:49.800 --> 0:00:52.559 Plus we'll discuss how the energy transition will drive a 0:00:52.600 --> 0:00:54.520 significant uptick in demand for metals. 0:00:54.720 --> 0:00:56.920 But first, we got the Olympics coming up this summer 0:00:57.000 --> 0:00:59.480 in Paris. How cool was that going to be? But 0:00:59.480 --> 0:01:01.360 good luck try to get a hotel room there or 0:01:01.400 --> 0:01:03.920 trying to get accommodation to anywhere. You know, who would 0:01:03.920 --> 0:01:06.840 know about this stuff. Airbnb. Dave Stevenson joins us. He's 0:01:06.880 --> 0:01:10.400 the chief business officer for Airbnb. Dave talked to us 0:01:10.400 --> 0:01:13.800 about your business in Paris for this summer. What are 0:01:13.800 --> 0:01:14.280 you guys seeing. 0:01:14.760 --> 0:01:17.200 You know, one of the great things about having airbnbs 0:01:17.240 --> 0:01:19.800 in Paris is that the actual the volume of airbnbs 0:01:19.800 --> 0:01:22.839 have gone up pretty dramatically. We have forty percent more 0:01:22.880 --> 0:01:26.400 active listings than we had a year ago. And by 0:01:26.440 --> 0:01:29.120 having those extra listings, we're actually able to keep prices 0:01:29.360 --> 0:01:32.880 reasonable because we're able to add so much capacity to 0:01:33.920 --> 0:01:36.800 the stays there. So there are still places available. You know, 0:01:36.800 --> 0:01:39.840 we're only twenty four days out, but you know you 0:01:39.840 --> 0:01:43.120 can keep booking. There are airbnbs ready for guests to 0:01:43.200 --> 0:01:44.040 come from around the world. 0:01:44.200 --> 0:01:46.800 Yeah, because you know why everyone's leaving Paris. Yeah, all 0:01:46.800 --> 0:01:48.720 the preachers to like, get me out of here, and 0:01:48.720 --> 0:01:51.120 they're going this outh of France anyway, sorry, go ahead. 0:01:50.840 --> 0:01:53.720 So David, well, it's how bad they're actually able to earn, 0:01:53.760 --> 0:01:56.480 you know, two thousand euros on average for a host 0:01:56.600 --> 0:01:58.600 in Paris, and so yeah, many people do leave and 0:01:58.840 --> 0:02:01.800 share their homes and welcome people from other countries to 0:02:01.840 --> 0:02:02.480 come to the vilops. 0:02:02.560 --> 0:02:04.880 Talk to us about where the where you're seeing travelers 0:02:05.040 --> 0:02:06.360 come from to Paris. 0:02:06.840 --> 0:02:10.040 Yeah, it's interesting. Some of our top countries are the US, 0:02:10.360 --> 0:02:13.320 UK and actually people from other areas of France coming 0:02:13.400 --> 0:02:16.560 into Paris for the Olympics. We're also seeing some interesting 0:02:16.639 --> 0:02:19.120 trends where people are staying. You know, the Olympics are 0:02:19.120 --> 0:02:21.240 actually not only in Paris, They're kind of spread around 0:02:21.280 --> 0:02:23.760 the country and so you know, we're seeing people staying 0:02:23.760 --> 0:02:26.480 in airbnbs in Lelle where some of the basketball is 0:02:26.560 --> 0:02:29.560 being played. You know, We're seeing them in Leone where 0:02:30.120 --> 0:02:32.680 some of the football, you know, soccer matches are being played. 0:02:32.960 --> 0:02:37.280 You're seeing Spaniards and Brazilians stan Bordeaux because their national 0:02:37.280 --> 0:02:40.320 teams will be playing soccer out there. So we're not 0:02:40.400 --> 0:02:42.840 just seeing people come in Paris, They're staying in airbnbs 0:02:43.160 --> 0:02:44.080 all around the country. 0:02:44.280 --> 0:02:47.200 That's interesting. I did not know that you also transition 0:02:47.320 --> 0:02:51.720 recently from CFO to CBO. Is that so chief financial 0:02:51.720 --> 0:02:53.480 officer to Chief business Officer? 0:02:53.560 --> 0:02:54.280 How is that? 0:02:54.400 --> 0:02:54.520 Like? 0:02:54.560 --> 0:02:56.799 What how does your job change with that title? 0:02:57.360 --> 0:02:59.359 Yeah, no, I'm the Chief Business Officer I'm also the 0:02:59.400 --> 0:03:02.040 head of Employee Experience, so the head of HR, which 0:03:02.040 --> 0:03:04.280 I've been doing now for three years, but the chief 0:03:04.280 --> 0:03:06.919 business officer, you know, I'm focused on growth of a 0:03:06.960 --> 0:03:11.440 company and expanding into new and new business areas. So 0:03:11.480 --> 0:03:14.320 we're expanding beyond the kind of core stays business here 0:03:14.360 --> 0:03:17.440 at Airbnb into things like services and experiences over time, 0:03:17.720 --> 0:03:19.680 and so me and my team, that's what we're focused on, 0:03:19.760 --> 0:03:23.000 growing the existing business and expanding into new ones. 0:03:23.560 --> 0:03:26.760 So for just the business in general, how is travel 0:03:26.800 --> 0:03:29.720 this business as we crank up here in the US 0:03:29.760 --> 0:03:31.600 for fourth of July, and then of course in Europe 0:03:31.639 --> 0:03:34.360 they have their big travel during the summer, particularly August. 0:03:34.400 --> 0:03:36.240 Give us a sense of kind of where you're seeing 0:03:36.920 --> 0:03:37.840 the business these days. 0:03:38.200 --> 0:03:40.800 Yeah, you know, we're seeing more people travel this summer 0:03:40.840 --> 0:03:45.360 than they ever have before on Airbnb. Continency, great growth, yes, 0:03:45.760 --> 0:03:49.080 strong growth, especially from your Americans travel to Europe. You know, 0:03:49.160 --> 0:03:52.840 we continue to have a strong dollar, which enables strength there, 0:03:53.120 --> 0:03:55.480 and we're actually seeing you nice strength and people even 0:03:55.560 --> 0:03:58.080 traveling from US into Asia. 0:03:58.280 --> 0:04:02.119 US into Asia, okay, which is not rippin' dollar. Yeah, 0:04:02.200 --> 0:04:05.400 you just won't even go anywhere pretty much. What about 0:04:05.400 --> 0:04:07.480 the opposite, is anyone coming to the US. We're making 0:04:07.480 --> 0:04:09.440 any money on Airbnb here in the US anymore. 0:04:09.920 --> 0:04:10.480 Absolutely. 0:04:10.520 --> 0:04:13.080 I mean, the people are still traveling from overseas in 0:04:13.080 --> 0:04:15.000 the US. You know, actually the majority of our travel 0:04:15.040 --> 0:04:18.520 still is actually domestic travel in any given country. So 0:04:18.560 --> 0:04:20.520 we're kind of talking a lot about people moving around 0:04:20.520 --> 0:04:22.560 the world, but a lot of the travel is just 0:04:22.600 --> 0:04:24.360 people going. You know, in the US, it's a lot 0:04:24.360 --> 0:04:28.520 of beach destinations. You're seeing great traveled down to Florida, 0:04:28.880 --> 0:04:32.200 up onto the East Coast, you know, onto the Jersey 0:04:32.200 --> 0:04:34.360 Shore and other places. So you know, people are still 0:04:34.400 --> 0:04:37.680 traveling out to the beaches to visit with family and 0:04:37.720 --> 0:04:38.920 enjoy the fourth of July. 0:04:39.440 --> 0:04:44.440 Dave, what's a typical or prototypical Airbnb customer look like? 0:04:44.880 --> 0:04:48.479 You know, there we have customers of all kinds. You know, 0:04:48.600 --> 0:04:52.880 it's everything from young gen Z, millennials to families. You know, 0:04:53.279 --> 0:04:56.280 a large number of our people in travel in airbnbur 0:04:56.320 --> 0:04:59.760 group travel. Multiple people travel together because you get more 0:05:01.000 --> 0:05:03.640 you might get multiple bedrooms, you have multiple amenities, often 0:05:03.640 --> 0:05:05.479 with a kitchen, you know, maybe a washer and dryer. 0:05:05.720 --> 0:05:08.320 It's one of the things reasons why we've recently launched 0:05:08.320 --> 0:05:11.680 some of these group travel features to enable more people 0:05:11.720 --> 0:05:15.920 to stay together more easily. We have things like shared Wishless, 0:05:16.080 --> 0:05:19.520 shared messaging capability, and that's helping in Paris where over 0:05:19.600 --> 0:05:22.560 fifty percent of the people traveling to the Paris Olympics 0:05:22.960 --> 0:05:26.000 have three or more people, and so the group travel 0:05:26.040 --> 0:05:28.960 is a key benefit of staying on Airbnb. 0:05:29.200 --> 0:05:32.000 That's a good point. What are there trends that you're 0:05:32.320 --> 0:05:33.800 you think you're going to be dealing with in twenty 0:05:33.880 --> 0:05:36.360 twenty five, kind of after we get through the Olympics. 0:05:36.480 --> 0:05:38.400 You know, I think we're going to continue to see 0:05:38.600 --> 0:05:40.400 strength and travel. I think one of the things we've 0:05:40.400 --> 0:05:44.120 seen since the pandemic is that people realize how much 0:05:44.160 --> 0:05:46.480 they miss being able to kind of travel, be with 0:05:46.520 --> 0:05:50.320 family and friends, that experiences are maybe more important than things. 0:05:50.560 --> 0:05:53.760 I think that trend will continue, and we're going to 0:05:53.800 --> 0:05:57.160 see people wanting to spend time with family and friends 0:05:57.279 --> 0:05:58.760 doing things together. 0:05:59.560 --> 0:06:00.760 So that's the big. 0:06:00.640 --> 0:06:04.360 Trend that we'll see in twenty twenty five, continued experiences. 0:06:03.880 --> 0:06:07.640 Our Thanks to Airbnb Chief business Officer Dave Stevensim. 0:06:07.080 --> 0:06:09.279 We now moved to the cloud space. ZECH, a cloud 0:06:09.279 --> 0:06:11.719 based software company, is now trying to fix any potential 0:06:11.800 --> 0:06:14.000 dread that you may have for an upcoming board meeting. 0:06:14.120 --> 0:06:17.040 The company distills hundreds of pages of corporate documents and 0:06:17.120 --> 0:06:19.880 to interactive websites for boards to expedite meetings, and even 0:06:19.920 --> 0:06:22.719 has an AI product. And recently ZECH announced it close 0:06:22.760 --> 0:06:24.760 a seven and a half million dollar investment led by 0:06:24.920 --> 0:06:26.000 Salesforce Ventures. 0:06:26.320 --> 0:06:28.039 For more and all this, we were joined by ZECH 0:06:28.120 --> 0:06:31.480 co founder Edward Norton. We first asked him more about 0:06:31.560 --> 0:06:32.800 what ZECH is trying to do. 0:06:33.160 --> 0:06:39.800 We're trying to make the experience between management of organizations, 0:06:40.520 --> 0:06:44.039 and I say that meaning corporations or nonprofits because obviously 0:06:44.040 --> 0:06:48.040 we've got a couple million nonprofit organizations in this country 0:06:48.040 --> 0:06:51.479 that have governance and boards and stuff like that. We're 0:06:51.520 --> 0:06:55.760 trying to take what we feel is an increasingly toxic 0:06:55.880 --> 0:06:59.920 dynamic and reform it into being what it's supposed to be, 0:07:00.080 --> 0:07:05.440 which is a relationship that that propels in organizations, supports, 0:07:05.640 --> 0:07:10.120 you know, brings additional leverage positivity to an organization. And 0:07:10.520 --> 0:07:14.200 we you know, I've definitely had some people say to me, like, 0:07:14.240 --> 0:07:16.280 you have an interesting day job, why would you get 0:07:16.320 --> 0:07:16.920 involved in. 0:07:17.040 --> 0:07:19.160 And your day job Just for folks that on the radio, 0:07:19.320 --> 0:07:21.280 Edward Norton Actor has been in a bunch of movies 0:07:21.280 --> 0:07:22.080 and all that kind of stuff. 0:07:22.160 --> 0:07:26.400 Yeah, the and I and I will I will admit that, 0:07:26.760 --> 0:07:31.840 you know, on the surface, like a software platform for 0:07:31.840 --> 0:07:37.560 for board governance features seems pretty esoteric. But it grew 0:07:37.600 --> 0:07:40.320 out of it grew out of my own experiences over 0:07:40.320 --> 0:07:43.840 the last thirty years, not dissimilar to years from serving 0:07:43.840 --> 0:07:47.320 on the board of arts organizations, serving on you know, 0:07:47.400 --> 0:07:50.800 conservation organization boards. And then as I built my own companies, 0:07:52.320 --> 0:07:55.400 and I've built a few software companies that that we 0:07:55.520 --> 0:07:58.440 had our own boards, people like Fred Wilson from Union 0:07:58.480 --> 0:08:02.400 Square or you know, Excel or gray Lock or these firms. 0:08:03.280 --> 0:08:05.600 We were on the management side and we were experiencing 0:08:05.600 --> 0:08:07.920 what it meant to have a board. And then when 0:08:07.960 --> 0:08:09.680 I sold one of my companies and I joined the 0:08:09.720 --> 0:08:13.120 board of GoFundMe, the company that acquired us, you know, 0:08:13.520 --> 0:08:17.080 I started sitting on corporate boards and my partners and 0:08:17.120 --> 0:08:20.960 I really started feeling that there was this elephant in 0:08:20.960 --> 0:08:24.200 the room, which is that is that companies go through 0:08:24.400 --> 0:08:26.600 four to eight times a year. They go pencils down 0:08:26.640 --> 0:08:29.120 to get ready for this thing that essentially to them 0:08:29.160 --> 0:08:32.640 feels like a hall monitoring moment and board members. On 0:08:32.679 --> 0:08:34.280 the other hand, when I was a board member, the 0:08:34.600 --> 0:08:36.440 thirty six hours before the meeting, you get a ninety 0:08:36.480 --> 0:08:38.480 page PDF and you're supposed to read it in the 0:08:38.520 --> 0:08:41.040 airport terminal, and then you go to the meeting and 0:08:41.120 --> 0:08:42.840 get it read back to you. You know what I mean, 0:08:42.920 --> 0:08:44.760 Like there was just and so. 0:08:44.679 --> 0:08:47.520 You're looking to make it a more what interactive visual 0:08:48.200 --> 0:08:49.400 engaging experience. 0:08:49.440 --> 0:08:53.240 I think we say two things. One is quantitatively, board 0:08:53.280 --> 0:08:55.760 meetings are an enormous waste of time for everybody, and 0:08:55.760 --> 0:08:57.800 that has to do with the amount of redundant time 0:08:57.840 --> 0:09:01.160 waste on setting these meetings up and the presentation materials. 0:09:01.160 --> 0:09:04.000 And that can be crushed down by having cloud based 0:09:04.840 --> 0:09:08.280 AI powered tools that make it like a tenth the 0:09:08.360 --> 0:09:11.000 time for a company. On zech a company can set 0:09:11.040 --> 0:09:13.200 up for a board meeting in one tenth the time 0:09:13.720 --> 0:09:18.120 that they were using to prep before it. Board members 0:09:18.160 --> 0:09:21.480 should get to read something that's you know, you wouldn't 0:09:21.520 --> 0:09:24.679 read in the New York Times or Bloomberg on a PDF. 0:09:24.720 --> 0:09:27.840 You read it in a mobile friendly scroll right that 0:09:28.040 --> 0:09:31.080 we expect that now, and so everything about the user 0:09:31.120 --> 0:09:33.760 interface should be easier for both sides of the table. 0:09:34.120 --> 0:09:36.480 But also think about this, think about how much time, 0:09:37.000 --> 0:09:41.960 how many professional, talented people with time is valuable sit 0:09:42.000 --> 0:09:46.720 there in board meetings, approving minutes, approvals, approving stock option packages, 0:09:46.920 --> 0:09:48.520 things that they ought to be able to do from 0:09:48.559 --> 0:09:52.120 the airport lounge in advance. So we built governance function 0:09:52.200 --> 0:09:53.920 that can be interactive and mobile. 0:09:53.960 --> 0:09:56.920 And also so your customer is the board. 0:09:57.240 --> 0:10:00.360 The customer is the company and the board. You know, yeah, 0:10:00.720 --> 0:10:05.880 both sides, management and board members suffer in different ways, 0:10:05.920 --> 0:10:08.440 and we've tried to reform it. But when you crush 0:10:08.520 --> 0:10:12.560 the redundant inefficiency of time waste, you improve the quality 0:10:12.559 --> 0:10:14.480 of the meeting too, because a board meeting should be 0:10:14.520 --> 0:10:18.600 a forward looking experience, not a You don't want to 0:10:18.640 --> 0:10:23.160 spend hours looking backward. Everybody can ingest the looking backward 0:10:23.200 --> 0:10:25.400 part before the meeting. You want the meeting to be 0:10:25.480 --> 0:10:29.200 propulsive and additive to where the company or the organization 0:10:29.280 --> 0:10:31.520 is trying to go. And the best thing about what 0:10:31.559 --> 0:10:33.520 people are saying to us is not just oh, we 0:10:33.559 --> 0:10:35.800 really love the user interface. It's much easier, it's easier 0:10:35.880 --> 0:10:38.760 to read. We love that they're saying to us. This 0:10:38.840 --> 0:10:43.040 has radically improved the quality and the value of the 0:10:43.080 --> 0:10:45.920 meeting itself and what we're getting out of our board. 0:10:46.600 --> 0:10:48.480 So you guys just raised about seven and a half 0:10:48.559 --> 0:10:52.880 million Series A led by Salesforce Ventures, including some other 0:10:52.880 --> 0:10:53.520 guys as well. 0:10:53.800 --> 0:10:54.560 What are you gonna do with it? 0:10:54.880 --> 0:10:56.280 And what's sort of your angle here? 0:10:56.960 --> 0:10:57.280 Well? 0:10:57.360 --> 0:10:59.480 You know, I think if you look at I mean, 0:10:59.520 --> 0:11:03.760 first of all, Salesforce to this day is still I mean, 0:11:03.800 --> 0:11:09.360 they still are the greatest innovator in cloud based corporate tools. 0:11:09.800 --> 0:11:12.880 And I've known Mark Benyoff a long time, even though 0:11:13.360 --> 0:11:15.000 I never told him that we were doing this with 0:11:15.040 --> 0:11:17.000 his own team until it was done because I didn't 0:11:17.040 --> 0:11:19.160 I didn't want to, you know, I didn't want it 0:11:19.200 --> 0:11:21.840 to come from the top down. The Salesforce team is 0:11:21.880 --> 0:11:25.280 really phenomenal. But you know, our fantasy was to work 0:11:25.320 --> 0:11:31.319 with Salesforce because really nobody, nobody understands the business of 0:11:32.240 --> 0:11:35.800 cloud based corporate tools better than they do. And I 0:11:35.800 --> 0:11:37.920 also like their ethos as a company. I think they 0:11:37.920 --> 0:11:41.360 have a great customer service ethos there. But you know, 0:11:41.400 --> 0:11:44.760 if you look at think about today, would you ever 0:11:44.760 --> 0:11:48.360 get a FedEx package with with signature tabs on your 0:11:48.400 --> 0:11:49.200 legal documents? 0:11:49.200 --> 0:11:49.280 No? 0:11:49.360 --> 0:11:50.840 You get it in DocuSign now. 0:11:50.760 --> 0:11:52.520 Right, You don't. 0:11:52.559 --> 0:11:55.920 You don't manage your cap table in Excel spreadsheets anymore. 0:11:55.920 --> 0:11:59.480 You use Karta, and we've we've made this evolution towards 0:11:59.559 --> 0:12:03.360 Lots of aspects of corporate function have gone into the cloud, 0:12:03.720 --> 0:12:06.960 but this really critical function hasn't. And we think that 0:12:07.559 --> 0:12:09.600 on a business level. To be honest, if you look 0:12:09.640 --> 0:12:12.640 at you know Karta, which is a seven billion dollar 0:12:12.760 --> 0:12:15.240 private company, and docu sign is a fifteen billion dollar 0:12:15.320 --> 0:12:21.760 public company, there's an enormous market in relatively low priced 0:12:21.960 --> 0:12:26.160 corporate software tools, and we really thought this was a 0:12:26.160 --> 0:12:30.080 good business. We think there's a very large marketplace of 0:12:30.120 --> 0:12:35.000 companies and nonprofit orgs that need to reform this critical piece. 0:12:35.120 --> 0:12:37.920 All right, thanks, is that co founder Edward Norton. Coming up, 0:12:37.920 --> 0:12:39.920 we're going to break down the Supreme Court decision to 0:12:39.960 --> 0:12:42.680 overturn the Chevron Rule and how that could put climate 0:12:42.679 --> 0:12:43.560 targets at risk. 0:12:43.800 --> 0:12:46.920 You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 0:12:46.960 --> 0:12:49.120 depth research and data on two thousand companies and one 0:12:49.200 --> 0:12:52.160 hundred and thirty industries. You can access Bloomberg Intelligence via 0:12:52.280 --> 0:12:53.440 b I go on the terminal. 0:12:53.600 --> 0:13:01.000 I'm Paul Sweeney, m Alex Steel, and this is Bloomberg. 0:13:02.520 --> 0:13:08.880 This is Bloomberg Intelligence with Alex Steelen Pohlsweened on Bloomberg Radio. 0:13:09.400 --> 0:13:11.959 Last week, the Supreme Court overturned a nineteen eighty four 0:13:12.000 --> 0:13:14.800 decision known as a Chevron rule that experts say, we'll 0:13:14.800 --> 0:13:17.600 make the EPA's job to regulate methane and carbon dioxide 0:13:17.600 --> 0:13:21.880 emissions more challenging, potentially putting US climate targets at risk 0:13:22.200 --> 0:13:25.200 for more. We spoke with Bloomberg Intelligence senior ESG Climate 0:13:25.200 --> 0:13:26.800 analyst Andrew John Stephenson. 0:13:27.320 --> 0:13:28.839 If you think about the Clean Air Act, that's the 0:13:29.120 --> 0:13:31.920 biggest thing the EUP has ever done. It started in 0:13:32.000 --> 0:13:35.600 nineteen seventy with one document that said basically, go to it. 0:13:35.640 --> 0:13:37.800 We need to reduce the amount of air pollution in 0:13:37.840 --> 0:13:39.880 the air. We need a lot of different levers to 0:13:39.880 --> 0:13:42.160 pull to make that happen. We're kind of deferring to 0:13:42.320 --> 0:13:44.800 experts to do that. And you know, they did it 0:13:44.800 --> 0:13:46.920 for about twenty years. And then they had another revision 0:13:47.280 --> 0:13:49.280 Clean Air Act too, and that's the one that we're 0:13:49.360 --> 0:13:52.240 enjoying today with when they basically said, you did a 0:13:52.280 --> 0:13:55.040 decent job, let's keep going, Let's keep driving down the 0:13:55.080 --> 0:13:57.440 air pollution. And you know, here we are today with 0:13:57.520 --> 0:13:59.760 the cleanest there we've seen in you know, since the 0:13:59.800 --> 0:14:03.400 nine early nineteen hundreds basically, so it's been very, very successful. 0:14:03.600 --> 0:14:05.960 Yeah I'm not that old, but I remember first going 0:14:06.000 --> 0:14:08.160 the Los Angeles earlier in my career and you could 0:14:08.200 --> 0:14:11.640 see the smog. Literally it was brown, it was orange, 0:14:11.960 --> 0:14:14.680 kind of funky. Now you rarely have ever have any 0:14:14.720 --> 0:14:16.599 problems out there, so I kind of have been a 0:14:16.640 --> 0:14:19.520 fan at EPA. It's given the Chevron ruling. What does 0:14:19.520 --> 0:14:23.280 it mean for climate in your part of the world. 0:14:23.320 --> 0:14:25.080 What's it mean for the energy industry? 0:14:25.480 --> 0:14:27.880 I mean, it's troubling on a couple fronts. The first 0:14:27.960 --> 0:14:31.120 is with respect to the oil and gas industry. The 0:14:31.120 --> 0:14:33.640 big oil companies have done a basically a fantastic job 0:14:33.680 --> 0:14:37.480 of driving down a big chunk of their pollution from methane. 0:14:37.560 --> 0:14:40.200 So methane is really the thing that you really want 0:14:40.240 --> 0:14:42.640 to address when it comes to the oil and gas industry, 0:14:42.680 --> 0:14:46.040 which is just sort of leaking natural gas into the atmosphere. 0:14:46.160 --> 0:14:48.240 And the bigger companies have done a fantastic job, but 0:14:48.280 --> 0:14:51.080 the smaller companies, basically are the private companies, haven't moved 0:14:51.080 --> 0:14:53.400 on it. And so the leadership we've seen from Exon 0:14:53.440 --> 0:14:56.720 Mobile and others. Has been really transformative in terms of 0:14:56.760 --> 0:15:00.320 what's happening for the bigger companies. But unless the APA 0:15:00.480 --> 0:15:03.680 does work to kind of push along the rest, and 0:15:03.720 --> 0:15:06.080 we're talking about still half of the production comes from 0:15:06.160 --> 0:15:09.480 small companies that are private, we're not going to get 0:15:09.480 --> 0:15:11.520 anywhere near where we need to go on from an 0:15:11.520 --> 0:15:13.840 emission standpoint from the oil and gas industry. So that's 0:15:13.840 --> 0:15:16.600 sort of one. The second is really with respect to 0:15:16.640 --> 0:15:20.640 the power sector. So the power sector, we need more power. 0:15:20.840 --> 0:15:24.760 We've basically gone from having a coma power growth over 0:15:24.760 --> 0:15:28.320 the last decade and now because of AI and evs, 0:15:28.440 --> 0:15:30.360 we have power demand somewhere around two and a half 0:15:30.400 --> 0:15:33.520 percent a year and that has to be filled with something. 0:15:33.720 --> 0:15:35.400 And it looks like gas is going to be a 0:15:35.440 --> 0:15:38.240 candidate in the next several years because there's just so 0:15:38.360 --> 0:15:41.520 much demand that needs to come online. And there was 0:15:41.560 --> 0:15:44.240 a ruling at least from the APA that the gas 0:15:44.560 --> 0:15:46.120 companies that they were going to build a new power 0:15:46.160 --> 0:15:48.000 plant would have to capture that gas, and that doesn't 0:15:48.000 --> 0:15:48.960 look like it's going to happen. 0:15:49.040 --> 0:15:52.200 So because of the ruling, I mean the power coma 0:15:52.240 --> 0:15:53.960 that was actually a grit I'm going to steal that. 0:15:54.120 --> 0:15:58.080 I hope that's okay. So you were a ESG climate analyst, 0:15:58.160 --> 0:16:00.680 so that's environmental, social and governance. Does the social and 0:16:00.720 --> 0:16:04.200 governance part of your job get affected by the Supreme 0:16:04.200 --> 0:16:04.840 Court decision? 0:16:05.600 --> 0:16:08.200 Well, so people, some of the people think of the 0:16:08.280 --> 0:16:11.280 environmental it does conclude chemicals and things like that. Obviously 0:16:11.280 --> 0:16:13.800 that's going to be a bigger problem the social If 0:16:13.840 --> 0:16:17.640 you think about health, that's really what's going to happen 0:16:17.960 --> 0:16:20.160 with respect to this ruling. So we are going to 0:16:20.160 --> 0:16:24.040 have poorer health. I mean, the ability for judges to 0:16:24.080 --> 0:16:27.920 make decisions that are very complicated, I mean you're talking 0:16:27.960 --> 0:16:30.000 about I mean I just mentioned the Clean Air Act. 0:16:30.240 --> 0:16:33.560 That's a fifty year project with thousands of people working 0:16:33.640 --> 0:16:35.800 on it to have an opinion on how to get 0:16:35.840 --> 0:16:38.040 from A to B. And we are now expected to 0:16:38.040 --> 0:16:43.240 have judges have an opinion that is just wildly professional 0:16:43.560 --> 0:16:46.280 in a number of areas, and that includes things like 0:16:46.360 --> 0:16:48.920 PF the kind of forever chemicals. So that's going to 0:16:49.000 --> 0:16:52.320 affect health and food safety. So there's a lot of 0:16:52.320 --> 0:16:54.040 things on that side that are going to be affected 0:16:54.040 --> 0:16:55.160 as well. 0:16:55.320 --> 0:16:59.280 So do we have any experience on kind of how 0:16:59.320 --> 0:17:02.200 this works out side of the regulatory agencies? Are the judges? 0:17:02.240 --> 0:17:05.679 Are they making reasonable rulings when applicable? 0:17:06.520 --> 0:17:09.480 So yeah, I mean the pushback was that these are 0:17:09.840 --> 0:17:13.920 the judges and the agencies. There's no interaction and there's 0:17:14.080 --> 0:17:16.159 quite a bit that goes on and I think the 0:17:16.160 --> 0:17:18.440 agency you'll only win about seventy percent of the time. 0:17:18.520 --> 0:17:22.320 So the judges actually have had input into this, but 0:17:22.400 --> 0:17:24.720 you're really relying and it can swing both ways. Which 0:17:24.760 --> 0:17:28.119 is the really kind of conterintuitive part is that you 0:17:28.160 --> 0:17:29.760 could have a judge that the sides it needs to 0:17:29.760 --> 0:17:33.560 be more stringent, right, so it can go in different directions. 0:17:33.680 --> 0:17:37.040 And I mean it's ultimately been deferred to the Chevron 0:17:37.119 --> 0:17:39.400 defense and they say, okay, well let the agencies deal 0:17:39.440 --> 0:17:42.080 with it. And now we have that kind of open air, 0:17:42.840 --> 0:17:46.520 open terrain. So it's very difficult to see how things 0:17:46.560 --> 0:17:49.320 move as smoothly and in such an organized fashion as 0:17:49.320 --> 0:17:50.160 we've had previously. 0:17:50.400 --> 0:17:52.159 Yeah, cause the other side will say, well, judges do 0:17:52.200 --> 0:17:54.520 this all the time, like they're ruling on different cases 0:17:54.520 --> 0:17:56.280 that they don't have an expertise about all the time. 0:17:56.280 --> 0:17:59.840 What's the difference for the companies that you cover? Which 0:18:00.000 --> 0:18:01.320 companies will be the most impacted. 0:18:01.720 --> 0:18:03.880 So the companies that are really if you think about 0:18:03.920 --> 0:18:06.080 what's going on with the growth of you let's just 0:18:06.080 --> 0:18:08.000 talk about power for a second. The companies that are 0:18:08.000 --> 0:18:11.520 really taking up a challenge with respect to you know, 0:18:11.640 --> 0:18:14.720 power demand going up and dealing with it. Really on 0:18:14.800 --> 0:18:17.359 a kind of the clean energy front. There's two benefits. 0:18:17.359 --> 0:18:17.639 You get. 0:18:18.000 --> 0:18:20.879 You get paid for capex right when you're a utility company. 0:18:20.960 --> 0:18:23.720 So the more of that capex that goes into renewables 0:18:23.760 --> 0:18:26.320 and grid and things like like that, you get basically 0:18:26.359 --> 0:18:30.080 one hundred percent of that money is you can earn 0:18:30.119 --> 0:18:32.240 a return on it, whereas if you build a gas 0:18:32.280 --> 0:18:34.720 plant you only get about half that because half of 0:18:34.800 --> 0:18:36.600 the cost of the plant is in fuel and you 0:18:36.640 --> 0:18:38.800 don't get paid for that is a utility. So the 0:18:38.800 --> 0:18:41.720 companies like Constellation Energy are still expected to do very 0:18:41.720 --> 0:18:45.040 well next Era Energy because of the IRA, are getting 0:18:45.240 --> 0:18:48.760 very strong incentives to continue to produce as much clean 0:18:48.840 --> 0:18:50.919 energy as they can, and they're going to there if 0:18:50.960 --> 0:18:53.399 you look at their stock prices, they've reflected that in 0:18:53.440 --> 0:18:56.760 the last little bit. But from the other side of 0:18:56.760 --> 0:18:58.680 the equation, which is the oil and gas industry, the 0:18:58.760 --> 0:19:01.240 leaders are already the leader, you know, and they've performed 0:19:01.520 --> 0:19:04.000 exceptionally well. If you look at the group that is 0:19:04.000 --> 0:19:06.919 the lowest methane producers have done very very well against 0:19:06.960 --> 0:19:07.640 the other. 0:19:07.480 --> 0:19:10.280 Guys, all right, thanks to Bloomberg Intelligence Senior ESG climate 0:19:10.320 --> 0:19:12.280 analyst Andrew John Stephenson. 0:19:12.119 --> 0:19:15.520 We next take a look at the Swedish Swiss company ABB. 0:19:15.800 --> 0:19:19.520 ABB is a technology leader in electrification and automation, enabling 0:19:19.560 --> 0:19:21.840 a more sustainable and resource efficient future. 0:19:22.040 --> 0:19:24.959