Bloomberg Businessweek Weekend - June 14th, 2024

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This is Bloomberg business Week Inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

Hi, everyone, Welcome to the Bloomberg Business Week weekend podcast. Top of mind for us this week well, the Apple rally following an event focused on artificial intelligence, which Fueld hopes that customers will pay up for the next generation of iPhones. The stock by the way, hitting a record and overtaking Microsoft and marketcap at one point. We'll have more on that in a moment.

Plus, the FED dialing back rate forecast just won this year and still on inflation watch despite encouraging CPI and PPI readings this past week. We'll get into one part of the Fed's dual mandate job.

Also, the conversation this week that we just can't stop talking about. It involves Henry Ford, Bill Clinton, Toyota, the Lean Taliban, McKinsey, and Moore and explains so much in our world.

Peter S.

Goodman with a deep dive on his new book, How the World Ran Out of Everything. He stops by a little later all that to come. We begin, though, with the FED and the US labor market, vetcher J. Powell, noting that broad data suggests the US job market is back to pre COVID levels and strong but cooling, and that if jobs were to weaken unexpectedly, the FED is ready to respond.

This is against a backdrop where we see fewer people quitting their jobs and fewer getting promoted, leaving little room for new workers to break through as the ranks of employees above them stay in place, and it makes it more difficult for young graduates to get their foot in the door.

For more, we caught up with Jane Oates, senior policy advisor at Working Nation. It's a media company that focuses on the future of work. Also, she's former Assistant Secretary of Employment and Training in the Obama administry. We talked with her before that Shed decision.

Look, obviously the economy's tightening slightly. It couldn't stay where it was, you know, with three jobs for everybody looking so it's tightening a little bit. But you know, I think people are not moving and it's creating a real logjam. You know, we have four million people leaving college this time of year and another million and a half leaving high school that want to go right into the workforce. It's going to be tough for the next few months.

I don't get it. It's just kind of wild, right, Like we talk about a tight labor market. People need workers, and yet right it's just these weird kind of I don't know, cross currents. It's hard to make sense to some extent about what really is going on in the labor market.

I mean, look, Carol, some of it's geography. There are all these jobs open, but they're in places where there aren't people looking. Some of it's a skills mismatch, and some of it I have to tell you, you know, I like to like blame the automated software that's looking

Does it work both ways? I was talking to somebody who was doing some hiring ahead of intern seas and then she told me this is a shocking number. They're basically thirty places for interns. At the organization that she works in. They got thousands of applications Jane for those thirty spots, and I'm thinking to myself, how are you getting so many applicants? Are people just doing this automatically? Are they sending how does this work?

I think people are really interested in this paid internship thing. They realize that it's work based learning at its best because they don't make a long term commitment like in a registered apprenticeship program. But they're able to get in see if they like the employer, see if they like the work. So it is really hot right now to get a paid internship, an internship of any kind. But most people need the salary to go along with it. But I understand I like business too much to handle

One of the things I keep thinking about the future workforce because it seems like globalization has really increasingly gotten rid of middle class, well paying jobs. It really allowed people to have a good life, buy a home, support their family, go on vacation, and that we've kind of gotten rid of a lot of those jobs in the middle sector, if you will. And I do wonder kind of if we're not fertility rates are low people, you know, where's the future workforce going to be? Is it going

Well, AI is going to influence every job that's out there, and it's also going to influence.

But how we keep saying like these big broad things about a Jane And I'm curious how you see specifically that AI, which has been around for decades and already impacts our world, how the next generation of AI and large language models and so on really change significantly the workforce.

So there's going to be some media changes that are easy to see and some that are less easy to describe. But let's look at PR firms, right. PR firms used to hire lots of people, junior staff. People would come in, they'd write the first draft of something for a customer, and then somebody more senior would edit it and finesse it because they know the customer better. Right now, people are using generative AI to do that first draft. So you see real slow down in hiring. You see a

Example that was Jane Oates, senior policy advisor at Working Nation and former Assistant Secretary of Deployment and Training in the Obama administration. For more on the complete FED decision, head on over to Bloomberg dot Com.

Now to another big story this past week, Apple shar is hitting a record at one point, overtaking Microsoft during the week as the world's largest market cap company. The two companies are pretty much neck and neck now. Investors pumped up after Apple's annual Worldwide Developers Conference and great AI reveal now known as Apple Intelligence.

For Intel on Apple, we turned to our in house go to Bloomberg News chief technology correspondent Mark German.

They rolled out a bunch of new AI features with a privacy stance with deep integration into their applications. They didn't bring anything new to the party. But the most important part is they showed up to the party, I guess. And it took investors in Wall Street sometime to realize that Apple is now here, with or without something new.

They've arrived.

It was a year and a half for clean effort to get Apple Intelligence to market. They had all these AI features under development, but no sent the size, no integrated package.

So it took a while to put it all together.

And they did that, and it's not going to sell new iPhones. I believe it may spur a small number of upgrades, but more importantly, it's going to lock people into the ecosystem. They're going to keep their existing US serpace and they're not going to lose people away to Android and other AI driven platforms because they did this.

I do want to ask you, though about the partnership with open aii. Right the formal announcement we got that, How important is that And is it any different from open AI's other partnerships that are out there, And is it always different because it's just Apple doing it?

Oh, the open ai partnership with Apple is incredibly different. So let me give you some perspective here. So Microsoft, they rolled out a ton of AI features on their computers and their other operating systems, the underlying large language models, that underlying technology that they're using for nearly all of their features is powered by open Ai. Apple's feature set ninety percent of it is powered by Apple Large Language models,

You know we always talk about the importance of the Chinese market to Apple. Is there something here in terms of what we're hearing from this event and that kind of moves the needle potentially in their sales over in China.

Yes, good question.

This is a point that quite frankly, I should have made it earlier. Nothing Apple Intelligence, at least the first iteration is only available in US or Fish. Yes, in the US English, So there's going to be a long ramp up here until they're able to get it in other languages. Now, I would have to imagine that getting Apple Intelligence to work properly outside of the US, outside of just US English is going to be very high priority for next year, and so I would anticipate China

Is it integrated at the OS level? And you can probably guess why I'm asking this mark because I.

Can guess why you're a few things about that.

Okay, good, because well I want to introduce it because I don't think everybody is totally caught up on this. Elon Musk said he would ban Apple devices from his companies if openis ai software is integrated at the operating system level. He called the tie up a security risk. Okay, go ahead, please.

Something integrated at the OS level. That is a vague term that can be interpreted in many different ways, so it's not entirely clear what he means by that. If you ask me, open Ai is indeed integrated at the OS level, and I'm sure Apple would agree, but I'm sure there's some other people who would say that it's not integrated at the OS level. It's built into Siri, it's built into the OS. It's a chatbot. It's not just an application. It's not just a layer on top.

He was a co founder of open ai.

He was a co.

Founder by falling out.

They had a falling out, So his perspective isn't exactly kosher on this. On this situation, what do you he raises real privacy questions regardless. I just think he's way overboard on it.

Okay, that said, Mark, how realistic is it that you know he could ban these devices at his companies given that they're ubiquitous, And I can't imagine employees, you know, putting them in some sort of box or leaving them in their cars they walk into work at SpaceX or the boring company or Tesla.

It's a top ten most ridiculous Elon Musk tweet, Right, that's not going to happen. I mean imagine like showing to work and like all of a sudden, you know, you can't bring your Apple devices in.

You can have to leave your iPhone in a faradakage outside the office or leave it in your car. That's just not going to happen, right.

He's already laid off thousands of people from his company, or tens of thousands of people from his company. I'm not sure he can afford to have people quitting in large numbers at this point, but I think that's going to upset a lot of people.

That was Bloomberg News Chief technology correspondent Mark German, by the way, speaking of Elon musk and Ai. Elon dropping a lawsuit alleging that open Ai and its CEO Sam Altman breached a founding promise last year by prioritizing profits over humanity without saying why. More. Elon News, including about his massive fifty six billion dollar pay package, just dead. On over to Bloomberg dot Com.

You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from two to five pm Eastern Listen on Applecarplay and the brout Auto with a Bloomberg Business app, or watch us live on YouTube.

Bill and China Entering the wto the rise of globalization, McKinsey and the Lean Taliban, the decline of unions in the working class, the rise of share buybacks and increasing dividends, and monopolistic takeovers, and then the pandemic and the great supply chain crisis.

Covering it all in this complex global system is New York Times Global Economics correspondent an award winning journalist, Peter S. Goodman. He's the author of the new book Just Out How the World ran out of everything inside the global supply chain. And to understand the global supply chain, Peter visits seemingly every link of it. He spends time in one of the largest exporters of amends in California and with the dock workers who are supposed to get those amends all

All right, He is here in our Bloomberg Interactive Broker studio. We wanted to do the setup because it's really comprehensive, and I do feel like I think it's safe to say that it explains a lot of kind of where we are today. So, Peter, you have had such a front row seat to so much that is going on in the world. Tell us about that front row seat and what kind of really you know, stands out for you.

You know, it's changed the way I look at any package that lands at my door, or really any product that somebody made somewhere that had to be transported to a store or to a home or a business. We don't tend to think about the supply chain, you know. It's one of those things. It's like the light switch. We're not thinking about the internal wiring.

We flip it on.

The light's work well, when we needed it most, it failed. It buckled, and we had frontline medical workers dealing with COVID patients without protective gear. We had families unable to find infant formula. I mean, that was an incredible crist If we had a toilet paper scare, which turned out to not be so much as shortage as a question

Peter, the reason we're talking about such a complex supply chain is because of globalization. Your career has kind of coincided with the rise of globalization, right, being a reporter in South Asia in the nineties and then post dot com crash working for the Washington Post. I think it was out of Shanghai.

That's right.

You visited a lot of these factories at times when they weren't what they are today. Talk a little bit about how you've seen your career alongside the rise of globalization.

Yeah, I appreciate you pointing that out.

So I landed in China in two thousand and one, which was the same year that China of course enters the World Trade Organization, this landmark, you know, moment for globalization.

South Korea, in Europe.

And it was also clear that the Chinese government had very systematically built out the infrastructure that was needed for trades. So you know, visited massive ports factories that were capable of making you know, enough microwave ovens to supply Walmart for a year, you know, and whole towns were you know, set up for single industries.

I remember going to the necktie town.

There was this one town in one province that was suddenly making more neck ties than all of Italy, you know, in the course of a decade. So you could feel that the scale was available. But what I didn't understand and what I've come to understand through this book is that all of this was premised on the idea that

If you had to pinpoint, was it President Bill Clinton? Former President Bill Clinton and the push to get everybody or to get China in the wto that. That's why we're having this conversation. That's why when the pandemic hit, we were like, what the heck happened to our global supply chain? Isn't that particular moment in time that got us to hear?

I think that's a landmark lot of moments in time, right. I mean, I write about four because I was interested in the rise of mass assembly. I write about the roots of the shipping container because the process of standardizing cargo made it possible to go look for the cheapest place to make anything. You could go anywhere around the world.

But if China wasn't accepted on a global scale in terms of trade, right, there was a big push. There were lots of concerns about human rights. There are still lots of big concerns about human rights, and yet there they were right in the WTO, something they fought for.

Well, here's the part that people are generally afraid to talk about. You know, China gets into the WTO because American retailers lobby like crazy to get China into the WTO, and nobody wants to be affiliated with the story of labor exploitation. Now, let's remember Chinese labor in American history.

Well, I tell his story in the book. You know.

It's not even a decade later and Clinton's in Beijing at at banquet at the Great Hall of the People across the street from Tianeman Square, where he literally picks up the baton and conduct the People's Liberation Army Orchestra as they played this John Phillips south of March. Now, why is Bill Clinton there? He's there because his party, the Democratic Party, is pulling in massive campaign contributions from retailers, and they're fashioning this story. It's not totally a fairy tale, right.

The goal, that thinking that, okay, let's open up trade and probably democracy will come and the human rights abuses will go away. And yet it didn't necessarily play out that way.

Well, one part of it played out. We got really low cost goods from China. The Walton family, the founders of Walmart, for a while became you know, the wealthiest family on Earth, and anybody who moved production over to China at scale and managed to do the right deals warded their shareholders handsomely. That part held to form. Also, not incidentally, the industrialization of China lifted several hundred million

Peter, you mentioned concentration in shipping. I believe you called it a cartel, right. I had no idea before reading this that it was basically what three companies.

Three alliances. There were a bunch of companies, but think of it like airline alliance.

Three alliances that control basically all.

Of shipping ninety five percent of the shipping from China to the West coast of the United.

States, some of the companies owned by China, or like our state subsidized organizations. How did it become like that.

It became like that because there was deregulation pretty much everywhere, including in the US, where you know, there used to be this anti trust exemption, but there was regulation on shipping rates, so you had to post what your rates were from one place to another. You couldn't negotiate a deal in secret. It was all above board, sort of like a utility, right, Like the governments involved because this is a vital part of the economy. And then basically

Although really the story starts with Carter.

You know, we're steeped in this idea that scale is the way to serve consumers and so let's just get out of the way of business and let them provide, and you know that will deliver innovation. But once you take away competition, of course, what we get is pricing power. And for a long time, these mostly well they're all actually foreign companies. In international shipping. There were like extensions of state policy.

In China's South Korea, Taiwan, so.

They were content to keep shipping costs low as a way to bolster their exports. But once we get a shock in the great supply chain disruption during the pandemic, we see shipping prices go up tenfold, and we see, you know, you guys were alluding to the fact that I spent some time with Alman farmers in central California. We see common farmers I visited had an entire crop sold to Dubai to Japanese purchasers, and they were just sitting on all this crop that they couldn't actually get

You know.

One thing I think about, though, in particular in your book is kind of the role of consultancy here. And I don't want to pick pile on anyone in particular, but you do single out Mackensey.

I sure do.

You do talk about the lean Taliban. You also get into a lot of just in time inventory for anybody's taken accounting cleanses. Like we've played around with this, right, but this idea too that you don't want to have big inventories, you want to be lean and mean. Right, so because those inventories are costly to store them, to have them, and all that thing, And so this financial focus on that and this kind of narrative of saying

We cut inventories to the bone. Publicly traded companies cut inventories to the bone over decades now, just in time is a sensible idea. It was pioneered by Toyota and to World War two devastation, not a lot of capital, not a lot of land to develop. Taichi Ono, who is running Toyota, pioneers this idea of instead of making as much stuff as possible like Henry Ford did at Ford and letting salespeople try to figure out how to sell it, Let's just make enough to replenish the cars

Hey.

That's a good idea, but a long come of publicly traded companies guided by consultants like McKenzie who say, listen, this should apply to everything, and you should not stop until there's basically no inventory. And what you do is, instead of wasting capital on sticking you know, auto parts in a warehouse as a hedge against trouble, just liquidate the warehouse.

Take the cash, give it.

To yourselves to reward yourselves corporate executives for being smart enough to hire McKenzie, Give it to shareholders and the form of dividends and share buybacks, and everybody's happy until there's a problem. And this pandemic was not the first time we saw a shock to the system. I mean, I wrote my first supply chain story back in nineteen ninety nine. It was about an earthquake in Taiwan. And back then people said, Oh, whoops, we've got computer chip shortages.

If we've learned our lesson with the computer tip industry.

We sure did not mean.

I tell the story in the book of Henry Ford, who is a problematic figure in history, but knew a thing or two about supply chains and never wanted to be in a position where he could.

Be pinched by a supplier constrained.

Would have been.

Horrified to see what I saw one hundred years later, as on walking the catwalk at his signature River Rouge plant outside of Detroit, where they're making these beautiful f one fifty pickup trucks their most popular vehicle. They've got all the things they need except for the one thing that brings it to life, the computer chip. And I watched them park these cars in the shadow of Ford's corporate headquarters across the street from Henry Ford Elementary School.

I think this is the part, and forgive me if I've got it wrong, but when I read it, Detroit had devolved into a poignant example of what happened when middle class factory jobs were replaced by poverty level positions at retailers, warehouses, and fast food chains. Next to the old Highland Park factory, now forlorn brickshell, a shopping center called modelty Plaza was anchored by a dollar store, a payday lender, and a plasma collection center awaiting people willing

Things that's interesting. Tim was going to talk about politics. In the nineteen ninety two presidential campaign, Ross Perrot was the lone voice who was kind of cautioning against at that time, what was the North American Free Trade Agreement Canada, the US and Mexico. Stunning is how quickly the conversation became about China. Why did that pivot happen so quickly in your view, away from North America manufacturing in China.

Well, China operates on a whole different scale than Mexico, right, So Rossboro, of course, yeah, famously warns of the giant sucking sound. And we did lose some jobs in the industrial Midwest to Mexico, but we picked up a lot of jobs because the US and Mexico are economically integrated. And I mean, it's ironic now to think about Mexico as the solution to some of our supply chain problems.

So it's kind of the bad guy, or is it investors and companies who constantly were seeking out the low cost provider.

The ultimate winners are the investor class, without any question. And there's a lot of labor exploitation in China. So yes, the winners are the people who funded the Clinton campaign and got Bill Clinton together.

Saying nothing of environmental regulation of course. Okay, right, go ahead, Peter.

I want to talk about labor exploitation in the trucking industry, sure, because a common thing that we heard over and over again during the pandemic and the supply chain disruption that we saw was that trucking companies just didn't have enough drivers. They needed people to go learn how to drive a truck and start driving trucks. You found that that wasn't the case. It's just a really really bad job.

It's a horrible job. I mean, I rode with a trucker in the best possible conditions who actually likes his job from Kansas City to Dallas and back in the middle of the winter. I slept in the cab for two nights. I watched this man have to worry about caffeinating enough so we wouldn't fall asleep at the wheel, and yet not having to pull over to use the restroom. Truckers are constantly worried about where they're going to park. They're at the mercy of lots of other parts of

There's ten million people in the.

United States who have licenses to drive long haul trucks, and we need roughly a third that number.

We've run out.

Of people we can feed into the mill who are willing to sign off on these predatory lending arrangements by which truckers pay for their certification, by which they end up buying these vehicles at wildly inflated prices from the trucking companies. Then they're forced to go service these vehicles at places that are part of the empires of these trucking companies, and so a lot of people, you know,

What's the remedy in your view? I mean, how do we get out of the situation that we're in now. I'm listening to the trucking story and I'm thinking of robotic vehicles that are going to be creeping into the scene pretty soon. So the argument that you're making right now may get a remedy, but it's going to be at the cost of labor in a major way. But what do you think the remedy is longer term?

I mean, I think for openers, we got to look at these predatory arrangements that truckers make with the people coming through these educational mills that set up certification with taxpayer funding. You know, we are paying to feed people into these training programs where they end up getting jobs that pay a fraction of what they've been promised.

So that's the first thing to do.

Look, automation is inevitable, It's going to happen, But we got to have a conversation about how we compensate the people who are still in the business. We've got to make sure that they can get exercise, that they can eat better.

Than their eating.

I mean, the food that you see at these truck stops. It's just a it's a tough life. The government has to get involved in looking at these working conditions.

What's the bigger solution though, because to me, I'm thinking, all right, if we're bringing a lot of stuff home, maybe more jobs are going to be created back home, but it's going to be more expensive, So get ready to continue to pay more money. But if it means that workers are actually making more and a real living, that's a good thing. So I don't know, I'm just trying to figure out what you see is.

The wait in some cases if we shift production from China to other countries where wagers hire, if we bring some of it back to the US, that that'll mostly be automation. Yeah, the costs for some things are going to go up. Some things may go now, some things may go up, But what is the cost that we're paying now that doesn't get factored into the simple sticker price with the Walmart supers. What's the cost of running out of medical devices in the middle of a pandemic.

Really changed, right dramatically or has it changed somewhat?

I mean, I spent a lot of time for the book, you know, I went to Guatemala with Columbia Sportswear. They're looking to move production closer to their biggest market, which is North America. Spent a lot of time in Mexico looking, you know, as we've discussed how that could potentially be part of this solution to our excessive reliance on China. But China is going to be the center of manufacturing for a really long time for the simple reason that's

Away from the government. Is there a role for organized labor in this.

Oh, one hundred percent. I mean we should be embracing labor mobilization. I mean it's bumpy, it does involve higher costs. If you're running a business, you're not delighted that your union is now animated. But first of all, it puts spending capacity in people's pockets, right, It boosts consumer power, which is good for all businesses. And it's simply more reliable if people aren't are at work not worried about their ability to put groceries on there.

I was thinking about that when I read about precision scheduled railroading in the book, because those were union guys, right, right, But they had a pretty tough gig too, so.

Well, some of them are union.

So you wrote about people who missed medical appointments and funerals, and like, we're driving so far from their homes in that business were the unionized folks who were doing that in a much better position than the non unionized ones.

I mean, that's a tough gig too.

Look the unions, you know, we're ready to go on strike and couldn't go on strike because there's this law that says they have to basically get the president's permission to strike, and the president didn't grant that permission because it would have been a shock to the system. It would have uped inflation, and that wasn't something that Joe Biden wanted to happen on his watch. But even you know, this this powerful union that got right to the edge

You can't be home for that. And then he finally quit and fired off a letter, Yeah.

Go ahead, no, but so much for like was it a few years ago, the business roundtable stakeholder like, think of all the stakeholders, including employees.

That's my last book.

We only have I know, twenty seconds left. Are we going to run out of things again? At some point?

Yes, you know, talk to contractors about why they can't build more housing. It's part of why housing so unaffordable.

This was so much fun. So appreciate it. Thank you so much, Peter Goodman, Global Economic Correspondent, New York Times, this new book, How the World Ran out of Everything? And then thanks to our Doug Prisner too, We really appreciate you coming in.

Reading you you're listening to the Bloomberg Business Week Podcast. Listen live each weekday starting at two pm Eastern on Apple car Play and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa play Bloomberg eleven.

Thirty plenty ahead in our second hour of the weekend edition of Bloomberg Business Week, including a check on the New York City luxury real estate market, and tim if you could believe it, most wealthy buyers they're paying for their new properties in cash.

Yeah, I believe it. I bet you I mean, maybe it's no surprise considering that most film mortgage rates are still too high. Okay, So if a new condo maybe not in your sight. How about taking to the skies in your own private jet, Carol, what do.

You think cut me in?

Okay, the founder and the president of par Avian stops by for a look at the private aviation market.

You know what they say, It's not the purchase, it's the upkey that's really troubling.

All right.

Also so excited. Bloomberg Food editor Kate Crater on this year's best restaurants in the US and around the world and tuna fishing in the Hampton's.

Oh yeah, it's apparently a thing that's pretty cool.

It's a story that apparently everyone keeps talking to her about. So we're going to get into it a little bit later.

On First Up, This Hour. Every June nineteenth, now celebrated in the United States as June teenth. It's a day to commemorate the ending of slavery in the country, and despite it being celebrated as early as eighteen sixty six by freed slaves, it became a federal holiday just three years ago.

The holiday helps shine a light on ways to address barriers experienced by underserved businesses, neighborhoods, and people. One big barrier often banking and the financial services sector. On that, we talked with Kevin Cohe he's chairman and CEO of one United Bank, the nation's largest black owned bank with a it's a more than six hundred and fifty million dollars and who is safe to say, very very positive on the outlook.

There's never been the economic opportunity that exists today. Take one thing, artificial intelligence. That's going to change. That's that's going to change the world as we know it. It's going to change how businesses operate, to create new opportunities for business businesses that we never have had before. I believe sitting around worrying about small things that always exist. If you've been around at all, you've seen economic despite

Okay, well but but well, because we you have guys that rolled up out right AI tools and to help certainly your your client base. And I get it in terms of the ability, I guess what we're trying to.

Yes, it's that you have low unemployment just as a starting point things like buying homes. There's a affordability issue, but access capital is at a hall time high. I see in terms of looking at certainly black owned financial institutions.

They've never been more prosperous.

They never had so much capital, they've never had so much opportunity, They've never had the kind of opportunity we have to partner with Corporate America. I got like, JP Morgan is my partner, Okay, they just think about the implications of that of having a company of that magnitude

It's dramatically different, dramatically.

Why do you think people are so pessimistic?

Then?

And we've talked about this on the program lately, but there was a Harris Pool a few weeks ago that they teamed up with The Guardian and they found that nearly and five Americans believe the US is in an economic recession, even though we're not. Forty nine percent believe the S and P five hundred is down for the year it's not even though it's not more than ten percent what you were optimistic, You are feeling prosperous. You say your customers are too. What are people getting wrong here?

I think it's just part of the human condition. Is want to talk about your challenge?

Is you face?

I couldn't say it any better than you just said it. Okay, if you look at the actual facts, Okay, I'm talking about what's actually happening. And so if you look at if you look at where we are from a factual standpoint, it's clear that we've never had this opportunity that we

Okay, with one United Bank.

It's in a position where our products now people are saying, have worldwide implications.

Yeah, Now think about that.

With a company from an urban community that can create a product that not only has national implications, but has worldwide implications. But we're in a position to create technology that allows you to not only participate in local economies, but regional, national, and international opportunities.

We never had this before.

Yeah, it's a game changers. I feel like we love you know, I want to go back for a second because when anybody whenever we bring up Jamie Diamond or whenever he's in a story or makes comments, it's always among our most read stories. So you you talk about, you know, conversations with Jamie and meeting with Jamie, you know, what is it that you like to talk to him about, and like how you even continue kind of the work that you guys are already doing.

He's a financial okay, that's in a position and cares about people who cares about certainly cares about md I for the comb Minority Depository Institution, and it's willing to use this organization to support the growth and prosperity of this critical component of society. I mean, nobody's been doing that. I've been doing this long enough that I've seen.

What is real and what's not real.

In terms of corporate America's willingness to support the growth of other companies, it has never been higher than it is today.

Is Jamie Dimon the exception or you're seeing it much more across companies in the financial industry.

Honestly, he's just the best. They are. They are the best program, but they're not the It's not the only program.

City Banks program is a beast.

Okay, that's another Jane Frazier and what she's done with that company and the opportunities they create for MDIs is unpressed taking the time to bring their top people together with MDIs so we can learn from them and understand what kind of products and services that you can offer.

That we've never been offered before. They care about they care about what's going on, and they're devoting the resources of their organizations to helping develop minority communities. You have those large corporations actually caring about what's happening in the minority communities across the country.

Just explain to listeners and viewers right now who might think that, wait a second, wouldn't you know one United be a competitor to JP Morgan or to City thirty seconds? Explain why not?

We have?

We have different products that we served. One United Bank deals with people. We deal with people problems. You're driving to work, your truck's broke. It's going to cost six hundred dollars. You don't have six hundred dollars you need to borrow. You need an emergency small balance, short term loan in order to solve your problem. That's the one United Bank product. You can't get a checking account because there's some problem that occurred to your youth, that's the

We're gonna get to Juneteenth in just a minute, but I just want you to explain the asset light or the branch light model approach to banking, because I think people would be familiar with You have some branches in some states, but you also have a huge digital presence, and that's mostly where the.

Group is actually nice.

Yeah, yeah, exactly.

Well, okay, we're in a world where now the way people expect to receive their financial services, they expect it to be with them at all times.

That those things, those cell phones things.

People are expecting to have access to banking services seven days of week, twenty four hours a day, and to be able to spend.

Money all around the world.

They they're not going to drive down street and around the block and stand in line, no matter how good your donuts are. So so one is just pure convenience. So we're shifting from this community banking model where you had these branches and people would go in them and know the tailers and all that, to this technology driven model where there's expectations are much higher in the two ways, the convenience of getting access to the services, but also

That's what a checking or a savings account is. It allows you to perform some kind of function.

But when you look at products like Vice one, technology driven products, they actually help you to make money. You understand the difference something that facilitates you spend any money versus something that's actually giving you information that's gonna make you more money. So this is a whole new generation of banking products that service unique needs that are outside the banking system. Here again, banks, I've never been nothing but a banker my whole life, so you know it's

What would you say, though, the importance of you know, we've kind of really increasingly gotten away from the community bank that understands the community, right, because a banker from a high might not understand a community and its needs specifically, and something that from up high might look like a risk. If you understand the community, you would say, not so much. So do we lose something though, Well, that's.

The beauty of technology.

Now we don't.

It's not even close.

Okay, what data can do, What actual data can do as opposed to what you might think, what your hunches, the intuition that you have about things. World has advanced from that, like I think I understand the need of this person to being able to actually understand the needs.

You would say, the data would be more inclusive.

I'm saying the data is more important. That we shouldn't rely on hunches and intuition and making decisions. That's what creates a lot of the problems because that's where biases come.

But that's where bias come.

From because people think they understand things that they actually don't understand. If you think you understand that the data will tell you the real answer. And so once again, as an advancement in our ability to make decisions for one United that's one of the big things we do. We rely on the actual data related to an individual to make to make the determination of whether we can issue credit about them or not, not some intuition about what we think about some broad basics.

So that doesn't include a credit score. It does include a credit score, not in our.

Case, we use much deeper information than credit scores. Credit scores is once again it's stated technology.

I hate to put it like.

That, but but there you have their credit models that you can use. The companies like us use that allow you to be able to evaluate people that aren't in

That's an interesting way of thinking about because we've talked so much about the biasness and data. So it's interesting to hear you say that it's that it's a better, potentially a better take at it. We've got about three minutes left and we have had a great conversation off air with you of talking about Juneteenth, the day that we're coming up on our second year or so third year of recognizing it. But the point is that a lot of people don't even know what it's still about exactly.

That's the most important thing is to realize Juneteenth is a federal holiday. It's not a black people holiday. It's a celebration for a It's celebrating one of the best decisions that America ever made, which was to free the slaves. That helps all of us to move forward. It gives us a massive social dividend, if you will, because it's slavery institution like that hurts both the person who is a slave, but it also equally hurts the person who's

Let's not forget. To end slavery, we had to have.

Our country had slavery as the backbone of its economy. We had to recognize that we could get rid of that and create more economic value by getting rid of this institution that was so important at that time. And that's where we are. Of course, we've been slowed down because we went from slavery to Jim Crow. But now as we move away from Jim Crow and work on solving the last big piece of this, which is financial literacy, because if you look at what's happened to our society,

The people who don't.

So we have to work on this issue of making sure that all of our society is financially literate.

Here again, let's not forget.

We live in a society that forgot to teach financial literacy.

So we only have about forty seconds left. We've talked about financial literacy. I feel like I've been doing this a long time. Tim's been doing this forever. How do we do it? How do we do it? And forgive us because we only have about thirty forty seconds?

Make financial literacy a mandatory requirement to graduate from high school. Just start, just start with that. You have to take a significant course of study in order to graduate from high school.

Period.

And what's so important about that is your whole life. With all due respect, you're going to solve very few chemistry problems, very few biology problems, but you're gonna but you're gonna be solvy financial problems every single day. So that's the bare minimum we could do is make it an mandatory requirement. And we have to get the corporations involved because we have to teach the teachers in order to be able to feel min that mandate.

Amen, We're in, We're in. We totally a great come back again. We would love.

Please help me back. I we would love the opportunity. I enjoy Kevin hanging out with you.

Guys.

We enjoyed having you hang with us. Kevin Cohey, Chairman and CEO of One United Bank.

Right here on Bloomberg, you're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from two to five pm Eastern. Listen on Apple car Play and and brout Auto with a Bloomberg Business app, or watch us Live on YouTube.

Financial literacy is a crucial life skill, and ever more so for disadvantaged adolescence. Tackling that an organization that aims to invest in young people was founded about twenty five years ago by Grammy Award winning.

Usher Yes that Usher is you we're talking about, and his mom, Janetta Patten. They created the Usher's New Look Foundation as a way to help teens from tough backgrounds achieve financial success. Bloomberg News Cross Asset reporter Emily Grafeo and I spoke with President and CEO of NL Karsha.

More in nineteen ninety nine. Us Sure was thinking, how can I help young people get a new look on life?

I want to share with people information about the program because I think it's unique in several ways. One is that it's a decade long program, but also that it starts essentially when these kids are teenagers, so it starts relatively late. Take us through what exactly happens to these teenagers over that ten year period.

Right, So from fort teen to twenty four, our young people can participate in Usher's New Look, and we have standard bearing comprehensive programming that starts with one day training that we host in schools. And the unique thing about that is that it's peer to peers. So our post secondary students are standing in front of their peers fourteen year old and teaching them about leadership, about business, about

It's interesting that you start in middle school. Can you talk a little bit about, at least for the youngest kids in the program, what are the top resources that they need right now?

The top resources that they need, And we just did a study actually last year with young people, what do you feel is the most prevalent issues facing you and your peers? And those top things that came out right now are mental health support and strategies to help them cope with those things. As we know, we have come out of a global pandemic and so that has changed a bit. But also learning about financial literacy and exposure

Why is fourteen to twenty four the right age to focus on? I was talking with Elizabeth Sedrin, our producer, about this earlier and the idea there are a lot of nonprofits that focus on essentially college to cradle, right the idea are cradle to college excuse me, the idea of starting very young and going to college age. Why focus on fourteen to twenty four.

That's the age where they're starting to increase their future orientation. They're understanding their you know, their agency, and developing the life that they want at that time, and so we're able to share and embark upon the in part upon them, the skills and strategies that they need to be successful.

Do you ever get any pushbacks from folks who say that's too late, we need programs earlier.

You know what, No, there are forty two million young people here in the United States, and so there are organizations that focus on younger and we happen to focus on that fourteen to twenty four. It's not a silver bullet, it's not just one year, but we stay with them for the entire time. As you notice, fourteen to twenty four.

It's intern season.

Tim, I'm wonderful I saw I came in yesterday morning and said, welcome interns.

There's a lot of interns.

There's a lot of kind of early career energy in the building right now. Yes, you know, what kind of resources are you giving to those older I guess students in early career people in the program, what exactly are they looking for?

So we partner with various private and public sector entities to help do resume reviews for the students. They do mock interviews, they learn about different careers that are out there.

We're Bloomberg. We love numbers. Yes, you mentioned one hundred percent graduation rate, which is just incredible for any program. I don't care what program we're talking about here, but one hundred percent anything is amazing. What are some other metrics that you use as kids get closer to aging out of the program, I can't call them kids, actually as their young adults, young adults get closer to aging out of the program. That is a metric for success, Like, how do you know this is working?

Right?

So we work very closely with evaluators. We have a logic model that focuses on our objectives and what we're looking for is change in behaviors and attitudes. So we're looking to the fact do they have a physical resume, are they ready to go to work? But also do they have a change thought about their impact and what they can do in their community, how they can lead in their community, as well as the skills that they have gained do they have a bank account, Do they

We talk about this all the time, these personal finance skills. This is not taught in school, right, You only know about this stuff if you learn from family, friends, mentors.

That's right.

So you leave college or leave high school not knowing simple things that look simple to a lot of people but are actually kind of tough to do on your own, exactly.

And we find ourselves busting a lot of myths that they may have around credit, around saving, around just earning potential and those sorts of things. And what we find is that again through our evaluations, that financial literacy scores the highest on all of our training. It's what our young people say, I didn't know much about that at all, and now I know a lot, and I'm able to share that with my peers as well as my family.

So you're right.

I mean, we don't talk about it a lot. It's pretty taboo, but they're learning and they're able to go and share and be ambassadors with their community.

It's really empowering and that's a I'm wondering if you have any other examples of kind of a statistic like that, so we could end on a high note.

Absolutely.

So when you talk about first generation college students about fifty one percent in the United States, and we are now at about eighty percent of our students and getting them on to go on to career, we end up with about ninety percent of our students going on to college. And so when you have eighty one percent first gen and them are going to college and graduating within five years, that is something that we are very, very proud of.

It is a really cool program. Thank you so much for joining us during your visit to New York. That's Karsha More, President and CEO of Usher's New Look. It is the now nonprofit that twenty five years ago to singer, songwriter, dancer, superstar Usher Raymon the Fourth started with his own mall.

You're listening to the Bloomberg Business Week podcast. Listen live each weekday starting at two pm Eastern on applecar Play and Androyd Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa Play Bloomberg eleven thirty.

You may have missed this last month. Luxury home prices and select Asian cities are soaring, bucking a downward trend in more established markets, including New York and London. And according to real estate consultancy Night Frank, prime property prices defined as the top five percent of the market gift fell more than two percent in New York and London in the first quarter compared to the same period one year ago.

And that's been prompting wealthy buyers to pull the trigger when it comes to a new home. So let's get a check on the luxury market with Louise Phillips Forbes real estate broker with Brown Harris Stevens here in New York City. She's been in the business for wow more than three decades, and she sold more than five point five billion dollars worth of real estate, specializing in luxury residential sales and development projects.

I think individuals that a month ago they might have pulled the trigger that they are still contemplating because I think remember at the end of the year, we were expecting five great reductions and we haven't seen really any of those. In fact, we've had conversations about it coming up. So for some of those people it means holding off. However, what's right for one person's not always right for another.

What's surprising for me to hear from you about this quarter is this is supposed to be the busy time of year, I mean spring ahead of summer, and you had a great first quarter.

I had an record, I mean almost one hundred million in sales.

But that's the most as quiet time, right, No.

Not, as the cycles are off because of COVID number one, number two. You have to realize that people have been holding off what decisions that they make since twenty nineteen.

For a minute, so is that why people finally pulled the trigger? Yes?

And I think I believe my psychologically, I think that people believed that the that the interest rates were going to follow.

How many of your buyers are buying with a mortgage versus.

Very few right now, ironically of the thirty two transactions, so the average deal is not first quarter. The average deal is not thirty eight million. The average deal is you know, three, six, five, two, six hundred.

Thousand mortgages are mostly cash, all cash.

All but seven all seven of your sixty three percent across my business was a little higher, but across the market was sixty three in the first quarter, so percent.

Why did they pull the trigger?

Then?

Then?

Is it just that they were so for them, the rate environment wasn't so much. Wish is always king. It is always king.

And it also You've got to remember some of these sellers have been waiting for nine months, twelve months.

But that's what I'm saying. So it's not like, Okay, they thought maybe it had nothing to do with the rate environment. I think they were just it held off.

It's a negotiating tactic. My experience is that if I have three offers on a piece of property and one's a mortgage, and I'm able to push the cash person or even choose to take less because.

They're cash, it was seller driven. It's seller do them.

Having a choice was very powerful and important and new. They hadn't experienced that in a while.

Can you talk about I think this is unique to New York because there are so many cash deals, but can you talk a little bit about why a cash deal is so much more appealing to you than to deal with financing that could come in at a higher price.

Not seeing the reality shows where they're like not it's a cash down deal. It's even lower and you're closing next tuesday and they're closing next tuesday. Done like it's fascinating.

Yes, yes, and you have like eleven inch heels on while you're doing it.

I know, I know they look perfect. I know it's like a little unreal. But anyway, so.

No, listen, the preference becomes about cleanliness, meaning you know, you go to contract and then you don't have an appraisal. How would you feel if you had five bids on a piece of property, which, by the way, this happened all through the new year for myself, right, and then you it doesn't appraise. You have no contingency. But how do you feel as a buyer? How does a seller feel? Does somebody walk?

So it's just.

Cleaner if you have the luxury of that choice. Otherwise we are it's our job to be able to make things appraise.

How do you then in your world where you're dealing obviously where some people who are listening are being like, I'm going to throw up because it's like five six million dollars all cash, Like it's not a slice of total American life. It is a slice, a small slice. Having said that, What does it tell you about the broader economic environment in a world where we Louise have so many conflicting data points.

Yes, and I don't think that's going to change for a while, Carol, Okay, I mean listen, think just remember that when interest rates are high, the rental market is high.

I that's true.

Have somebody relocating here who got into the New York Academy of Arts and they are relocating here, and we were looking for nine thousand dollars rental two bedroom. The same apartment two years ago went for fifty eight hundred and it came on for seventy nine hundred and it went for.

Eighty three in two days.

So rent that is a forty seven percent increase in two years because the cost of money is more expensive. And that so when interest rates are up, buyers can't. They get on the sidelines and they rent and they are affected.

So so you're saying that people who are not buying are driving up the rental market.

Yes, but you're also safely it's a tougher it's environment and says something more broadly macro.

Right, I'm talking about for the lower end of the market. Right, So I have somebody who's contemplating selling a townhouse for six and a half million dollars and they're like, the cost of my capital, I can rent something for fifteen thousand. When he goes to look at what you can pay for fifteen thousand dollars, he's like, I'm going to wait a year, So to wait to sell, yes, because interesting, it's sometimes some of this is a luxury.

It is a luxury.

And again I ask the same question, whether it's a twenty million dollar buyer or a six hundred thousand dollars buyer, do you want to pay your own mortgage or do you want to pay somebody else's mortgage?

Because that's what it is.

I do think that you can try to time everything, but it's really about understanding what I mean. I have people that are borrowing money from their grandmother who going to inherit ninety two years old, and he's like, I'd love to be able to use it while you're alive,

Yeah. One last question, does what goes on in office? Does it matter? Does it impact you at all? In terms of certain neighborhoods are not really.

Certainly excuse people's They're more cnics that are in that field. I mean a lot of my business or commercial brokers that I do business with, meaning helping them personally with their homes.

Yeah, and you know, they're they're feeling squeezed.

They're like, oh my god, how are you holding up? We is I'm like, okay, yeah, I don't even want to tell them.

So because they are feeling so squeezed.

Yees.

I mean the New York Times that there's a building in Time Square that just had a short sale, like I don't know, was it sixty two percent?

Yeah.

This is the way that that commercial market works, and the way lending works, and the way that they use the leverage. That is the science of that business, and that is always going to find cycles. It's going to have cycles, whether it's fifteen years or seven years or four years.

That was Louis Phillips Forbes, real estate broker with Brown Harris Stevens. Following our conversation, a report from the appraiser Miller Samuel noting Manhattan apartment runs unexpectedly slipped in May, a sideways move for the market at the start of one of its typically busiest.

Seasons and tim Speaking of seasons and cycles, we've seen private jet ownership go through a few out of the pandemic, a surge during the crisis, followed by receiving pandemic driven demand. So for what's happening right now, we turn to an industry veteran with over thirty five years of aircraft sales experience, Janin Janarelli, is the presidency apart.

Of the business jet market does not like surprises, It does not like instability, it doesn't like anything to upset the apple cart, and it does happen every four years regardless. I wish I could tell you why. It's just that I can tell you that the people in the trade plan for it.

So how is it manifesting in your business right now?

Oh, it's much slower than it was two years ago.

And even in comparison to last year, I can see that the buyers are being much more cautious before they actually open their pursues. They're spending a great deal of time reviewing the asset, and sometimes they get really close and then they back themselves up and we just have to wait them out.

I don't understand because we, you know, fairly regularly talk about the wealthier getting wealthy, and I'm not just talking about billionaires, but I'm just talking about in general, and so I'm trying to understand. Remind us who Janine in general is your typical buyer.

The classic buyer is an entrepreneur made they've built their business, they sold their business.

They're independently wealthy. That's the thing. Both of my personal business. A portion of that is also corporate.

The corporate's perhaps a bit more consistent because they look to turn their aircraft over every five to seven years because they want to have warranty coverage for the aircraft. They don't want any surprises either. But that comes more from the operational side.

And is it American buyers or global buyers? Like I love any kind of geographic color you can give us.

Well, this is I would say more specific to the United States. I mean, we're the largest marketplace in the world for business aircraft, and the drivers for why people acquire aircraft here are a little bit different than the rest of the world. We also are one of the most friendly environment for operating aircraft privately, and one of the big reasons for that is the airspace. The available airspace, the ability to fly direct from point to point. The

Well, in terms of you talked about the typical client, you have the entrepreneur person who sells their business, is self made, is independently wealthy. What do they then go do with that aircraft? The question that I have is are they one hundred percent flying on it themselves or are they leasing it out or chartering it to other folks when they're not using it.

So I think the perspective that most of the buyers today take is what's the easiest way to place the aircraft into service and continue that service, And generally that would be a management company as opposed to an independent flight department. And when you're with the management company, there's usually the added benefit of saying, would you like to charter the airplane? And I would say that the last majority of people who have aircraft undermanaged will certainly agree to also chartering.

Wow, Okay, give us the price range for a small to mid size versus the super heavies.

So the small you're probably looking at three to eight million, maybe a little bit more, the newer the aircraft, the super mid size, depending on the age of the airplane, anywhere from seven to.

Fifteen, sixteen, seventeen million, and then the large category.

Again, age is a big influencer in terms of the price point.

But let's talk about.

Newer aircraft, newer being fifteen years or newer, and we're probably twenty million and up.

That was Janinionarelli, president and CEO of par Avion.

Still ahead on Bloomberg Business Week. What do a Thai restaurant in Portland, Oregon A UK restaurant that grows its mushrooms in a closet and a Spanish restaurant that sells seafood surrounded by dry ice all have in common. I want to go there.

That's what they think I was going to say. I can. I can name several things. I'm not going to give it all away. Also, why oh why are Wall Street Bros. Leaving the trading desks maybe a little early on Fridays and going out to the Hamptons for a little bit of tuna fishing.

Bloomberg pursuits in our own cake crater. They're coming up next. This is Bloomberg.

You're listening to the Bloomberg Business Week podcast. Listen live each weekday starting at two pm Eastern ont applecar Play and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa play Bloomberg eleven thirty.

So we absolutely love, love love talking food here on Bloomberg Business Week, and Tim love love loves eating food. He's often eating during broadcasts, which is what.

I know.

I always got to give our as secrets. This is why a batch of stories on the best places to eat in the US, in London, really around the globe was something we definitely wanted to sing our teeth into, literally wanted to sing our teeth into, to.

Be fair, And we have the perfect guest here in our studio to break it all down. She's usually based in London. Lucky for us, she's back in a New York so we can catch up with her in at person. We welcome back Bloomberg Pursuits Food editor Kate Creator.

Hi, Hi, Hi, guys, by how are you?

I am so happy to see you. You guys are a site for sore eyes.

That's what I want to say.

Ah, well, we are so happy to see you. And you've been so busy in London, especially this time of year when we're getting best restaurant after best restaurant after best restaurant, And that's really where we want to start because the one in the UK that was ranked as the best restaurant has some really unique qualities.

In fact, it does it has It has something very significant happening in the dining room, which is that they grow mushrooms in a glass walled cabinet and then that's a dish that's featured on their menu a restaurant called the Ledbury one best restaurant in the UK in the National Restaurant Awards that were just announced.

So is the idea here that these mushrooms can grow year round? Is that why they're done on display? Or is it all about just the patrons actually seeing where this food comes from. Is a little bit of a novelty.

What is it?

It's a super novelty. I mean it speaks.

It works on so many levels because you know, if you've been to a good New York City steakhouse, you can also you can often see the steaks these like giant hunks of meat and right there in the locker, right hanging in the locker, and so here they're like, no, let's put mushrooms front and center, and it's.

Easy to grow.

There's actually all these like come Christmas time, if you need like a fun gift to give somebody who's got a little diy thing going on, there's all these like do it yourself mushroom kids. But they grow some really beautiful looking mushrooms, like these lions made which look like they're from another planet. So it's kind of fun to feel like you really can't get more local than that, especially in the middle of London, you know, where there's not always a lot of opportunity to grow a lot

Right, So if you don't like mushrooms, you still find something there to eat.

Yes, exactly. Yeah, it's not just that, don't worry.

You know what struck me though, Kate, that this was a restaurant that actually, you know, during the pandemic, like it was a really hard time. It just reminds me that even like established places had a tough time.

It's such a good no, it's such a smart thing to bring up, Carol, because this was a restaurant called The Libury and it's been open for about a dozen fifteen years, and so in twenty twenty when lockdown started in the UK, they announced that they weren't going to open, and it sort of sent they weren't going to reopen and it did send shock waves not just through the UK but around the world because it's a really notable restaurant, So it was it was like a good success story

Do we have time for one more on London just because Kate spent like the past few years there, Okay, as time as we want. Tell us about Io Adami, who it was over at A Coco.

He's he's a really cool That's a good story too because he A Coco is sort of an ambitious West African restaurant that's also tasting menu and they were a couple of years ago when Michelin to Last year, when Michelin announced their awards, A Coco was significantly not was not given a star and people freaked out. I can't remember his name, but will somebody actually went on a podcast and ranted about the fact that A Coco wasn't

I do wonder with restaurant rankings. I think you get into it in one of your stories that we're going to talk about. But Kate, I feel like, you know, with all the award ceremonies, there's been a lot of pressure, like, hey, people who are doing the judging, broaden out in terms of what you're looking at, and diversity is obviously an issue, But I do feel like there's a there's a thread through some of your stories about that.

Well.

I just want to say yay for Bloomberg because about a year ago or last fall anyway, one of we wrote a story about how there were only six black Michelin starre chefs around the world, not just in the US, not just in Europe, around the world, And within months of that story happening, things started.

Changing a little bit.

And so this woman, the chef Joke Abakare, who has an awesome restaurant in London called Chisheru, got a Michelin Star soon after that, and then somebody in New York I think, also got a Michelin Star. So the number is slowly creeping up, but it's still like a shockingly low number. I think you can still count on two hands how many how many Michelin star chefs restaurants run by black chefs there are?

Okay, there are one hundred on this list. Be honest with us, how many of these have you been able to eat at?

The UK one? Well, let's first be clear to him.

I'm mostly based in London, and fifty three of them were in London, so yay, London. London dominated this list. I would say maybe twenty one. Thing that's cool about this list I think we get to talk about it in a minute. But these lists are all these these three big restaurant lists, one worldwide, one US and one UK are The way they're voted on is different for each one, and some of them you feel like are more random or like you're less able to say, like, wow,

That's pretty cool. Can I just tell you the first time I went to London, Like, I wasn't a frostworth the food because it was years ago, and it was to go with Cain, my husband, who's not very experimental, and we did did a lot of like I don't know, roasts and things. But like the last time I was and I visited you with my daughter, like I was just blown away by the amount of like the food that's there.

It's gotten really good.

And this is this is probably subject for another for another conversation, but dollar for dollar, like if you have one hundred dollars to spend in London and New York, you'll eat better in London.

And I would say, all.

Right, if you can go anywhere in the world, let's talk about the best restaurant in the world. Can we talk about that Barcelona?

Let's go see. We have a lot to do. Carol we do.

Yeah, discruitar just Frutara and Barcelona was voted the number one restaurant. It didn't there were some people. For people who watched these World's fifty Best Restaurant lists closely, it wasn't super surprising because last year was number two and this list places just sort of creep up.

It's sort of like your turn. Okay, your turn.

So if you were betting, if you're betting, I like so these awards too. It's like surprise, was not surprised the odds this The awards took place in Vain, I guess, and if you were, if you were betting there, you wouldn't have gotten a big return.

Here's the problem in my life. I never know. I have a lot of problems. I have a lot of life when it comes to Restaura. Well, first of all, I never got to dinner anymore. That's that's my first problem, which is fine. But the other one is that I don't I'm not in the right circles to go to these restaurants before they're on the list, because once they're on the list, forget about it.

You're you know, if that's an excellent point, Adam Mix. The US did not do so well. On the World's Best Restaurant list. We only have two in the top fifty, but one of them a restaurant called Atom Mix, which is actually in New York. So if you get a chance to go, please do. It's a cree It's a sensational Korean tasting menu restaurant. But after this list came out, reservations that Atom Mix became a trending started trending on

It's like flixeeing Hamilton before I went to.

Broadway precise I have a friend who did that. I have a friend who that at the public theater. He's a legend.

That's yeah, it's likewise, you would be a legend if you can get an ad a mix right now?

All right, I want to ask you about the best restaurant in the United States is in Portland or.

It's gone Lang Lang Ban.

Yeah, so this this restaurant, this is like so the news for the US wasn't this is a different fifty best Yes, So this is so this is like you said, it's very much restaurant awards season, and in fact, the best restaurants for the UK were announced at five o'clock New York time on Monday, June whatever June day that was, and the James Bird Awards were announced five hours later.

So it really take.

That in London. Yeah, exactly, that's.

Already old news.

So yeah, it's called Langban, It's it's I I actually haven't been there, but it is, by all accounts, a really terrific Thai restaurant where they have you know, they their vision of making Thai food. It will be unlike any Tai food you've ever had, inspired but homie, and it's you know, putting a spotlight on a cuisine that people take for granted and things should only cost a certain amount of money.

So it's it's really cool.

What's really cool about this list is it's regional also, so you can go to you know, Washington, d C. For example, to find one of the best restaurants or at least one of the best emerging chefs. You can go to the Rocky Mountain area to find some really good restaurants too, at least according to this list. Talk about how it's broken down.

Yeah, they do. It is.

It is pretty great because for a long time it was really dominated by places that you know, like you knew like a Thomas Keller per se in French laundry,

I love that they do that, right, It kind of runs out. I have to say there was a name on this list, David Standridge at the chefs Shatter in Mystic. We've been wanting my husband, I've been wanting to go because we don't know. We knew his girlfriendly a little while ago, like they were I don't know so and so we've been like dynas.

And they were like closer to home here and then now he's out where you guys go in the summer.

Yeah, they were like I don't Yeah, they were living above like a boating place and anyway, so that's cross the name. I was like, wait, oh my god, it's.

Closer to home like it used to be.

The James bird Wards awarded a best restaurant to New York City, just New York City, and since then they've brought it out to New York State. So this year, actually the best chef is I'm Charlie Mitchell at clover Hill and Brooklyn. But the fact that there make a point of looking outside you go to Brooklyn.

Can I tell you, like I used to live close to this because I'm not cool, never heard of it. I looked it up on the map. When I saw where it was literally like a twelve minute walk from my old apartment.

I'm pushing back on not cool, tim, but thank you. Look, there's still chances cool. There's a lot of public transportation and taxis.

I know, you know, not a lot of ways to get reservations apart from buying them on the well.

That's all.

That's a different thing, different conversation.

That's Bloomberg after dark. Okay, what will make you cool is maybe fishing for tuna in the Hampton's.

Depends on who you want to think you're cool.

Tell us about what's going out out in the Hampton.

So I am delighted.

I'm delighted by this trend that's happening this summer, which is that the hot the hot activity, especially for people who work on Wall Street, it seems, is to get on a blade jet or a helicopter or however you get out to the Hamptons, go out to Montalk, get on a boat and tuna fish and then take your tuna to a local sushi chef and have them cook and have not cook, have them not cook your tuna, but slice it up for you and serve it, take pictures and put it out there.

Okay, So a lot of stuff has happened in recent years, some good, some bad that have made it so you don't have to spend all day on a charter vessel in order to go fishing.

I mean, yeah, that's actually that's actually the kind of great part about this is that for a number of reasons, including the boats have gotten faster, and in fact, starlink has made it easier to be connected. I think that started in twenty twenty two. It's made easier to be connected even when you're out there. But also tuna and some of those other big game fish are swimming closer

So there's all these forage fish.

They're called they have a name called like mayhyden or something, but they're they're much more abundant, and it means that tuna, big fish like bluefin and yelf and tuna are swimming closer to the shore. So a trip that would have used to take ten to twelve hours like round trip to go out and try and catch some fish is now closer to five or six. So if you have flown out to the Hamptons on a Friday night and gotten off the little Montauk airport, no, no, you can.

And it's I kind of love it.

Everybody's talking to you, really are They're coming up really cool stuff. See, you could do that?

Should we should do a remote out there on a afternoon after spending the morning out fishing.

There's a great picture of two dudes hold a huge unit. It's like really impressive. So you can find that a Bloomberg dot Com. Really good stuff. Okay, thank you, thank you.

Kate creator is a Bloomberg pursuit. It's a food editor and she's here, I know in New York City.

How luck you and you go back to London. I'm just going to tell you, Okay, we love having you here. That wraps up our weekend edition of Bloomberg Business Week from Bloomberg Radio. Thank you so much for joining us.

I'm Tim Steneveek.

Time to go do in a fishing Yeah, Carol Messer, I have a good and safe weekend, everybody's.

This is the Bloomberg Business Week podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live weekday afternoons from two to five pm Eastern on Bloomberg dot Com, the iHeartRadio app, tune In, and the Bloomberg Business App. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal.