Bloomberg Businessweek Weekend - March 10th, 2023

at the Wall Street Churn. This past week, as FED Chair J. Powell spent two days up on Capitol Hill taking questions on the economy and monetary policy, reiterating that officials are likely to take rates higher than previously anticipated and could move at a faster pace if needed. Based on Friday's Mix Jobs report, investors now move their focus to this week's CPI report, and that's not the only

risk for investors. More in a moment. Also, I have this CEO of Hpe, Antonio Nari on tech spending, Claire Hughes Johnson, former CEO at Stripe on a company's most important asset, and Priceline CEO Brett Keller with a global travel post. All of that to come. We begin with a story in this week's Finance section of the magazine. It was also a Bloomberg Big Take It details a looming risk that investors simply don't want to consider. We're talking about the US debt ceiling and what a default

on federal debt would actually mean for markets. Bloomberg's Liz McCormick, Eric Wasson, Josh Wingrove, and Mike Dorning joined forces to bring us both the Wall Street and Washington perspectives. Liz is Bloomberg News chief correspondent for Global macro markets. She and Bloomberg Business Week editor Joe Webber join us with more. We in January hit that debt ceiling in which they

had set a bit ago. Now the Treasury departments, using extraordinary measures kind of a special accounting moves to stay under it because they can't go above it. This is only going to get worse because there is, of course a limit to how long Treasury Secretary Janet Yellen and her team can do these maneuvers and stay under the debt limits, So they really need Congress to raise it

or resuspend it, which they do many times. I feel like part of the problem, though, is that, you know, we come up against the seas ceiling and then we always figure something out. What's different this time around. Potentially, Well, I think this time around, and you know the gentleman on the story with me are the you know, Washington politics experts, but that you know, Eric Wason will tell you that we have a very contentious situation here where

both sides you know, are jockeying. You know, the Republicans don't want a clean death sailing rays, which means that

we just raise it. They want to kind of jockey for some future spending cuts, and President Biden and his team is saying, no, we don't want to do that, and you know, they seem pretty entrenched, and it kind of hearkens to twenty eleven where we had a very contentions death sailing episode that they eventually did come to something in the final hour, but it was such a messy process that the US for the first time ever by SMP got there rating downgraded from triple A, and

you know that had a sting, even though we didn't see rates jump up sharply. Then you know, the stock market went down and it was a tumultuous time. So I think that's what people think this time it's going to go down to the wire. So that that story that Eric wasn't did about Brendan Boyle of Pennsylvania Representative, top democrat on the budget community. When I read our story and then I read that story, I was like,

oh boy, this is scary. This got scarier all of a sudden, right because he's basically saying like, we're not going to back down. You know. It's funny, Joel, because everyone thinks, which we came to in our story, that of course they'll come to something. We've seen this movie before. It's a headache, we hate it, but well they'll do it. But when you know, you look at some of this stuff like Eric's laying out, it's really troublesome, and you know,

like we hope, you know, cooler heads will prevail. No one would jeopardize the US treasuries as the world's safe haven security, which some people say. People may not realize if there's a default, be it short, you know, because they'll say, oh, well it'll be short, you know, but that doesn't matter. You know, the US doesn't default on their debt, and if they do, it could have repercussions for years and years. Okay, so x date, we don't know when that is what's our best sense of not

a new dating app is it's not well. Janet Yellen says they have at least until like June. It seems like most of Wall Street is saying it probably goes until August. But it's very unclear because you know, it's kind of coming at the worst time. We're in tax season, right and the government doesn't know exactly how tax flows are going. I know I want a refund. They're trying to figure out of a we didn't get our refunds.

I know, I know, I mean, that will happen, but they don't know how the flows are going to be, how much you know, the cash flows are going to go, how much refunds they're gonna have to pay out, how

much inflows people paying their taxes. So it's very hard for the Treasury to kind of have a good timing of, you know, when we'll run out of these maneuvers didn't help if I was getting a refund and I said, why don't you guys just sit on it until August, and like it's like Social Security a little bit and maybe I get a little bonus. Wow, you're the man, And I'm just thinking he's got of I don't think I'll give mine whatever fund I'm giving nowhere near what

we need want, Yeah, exactly exactly. So that's made it harder. That's why, you know, we know in past times, what a lot of the traders do is say, hey, listen, I'm not buying any Treasury bills or bonds that have coupon payments, which is this semi annual interest that's coming around that crazy X day time. But now this X date range is so wide that it's kind of murky

in the market. Right. People are like, I don't know yet what debt to avoid, right, So maybe maybe that will become more clear as a troublesome when we get a better date. You know, maybe we'll get an update from the Treasury of when that X date is going to be. If the wheels start coming off this car ahead of that X date, do we have any sense

what's going to break? Well, you know, after twenty eleven, a lot of the called parties that be that oversee the treasury market did a lot They were like, we don't want to go through this again with having no idea, So they did a lot of backup plans like if like maybe Treasury says, well, we'll delay the maturities a day. You know they can deal with that because you have to remember there's the repurchase agreement market that uses treasuries

as collateral. So there's a lot of things that you know, what if it couldn't even function. So there's been some backup plans, but even those officials say, but we're not sure. You know, we haven't been through this before. You hope the treasury market will function. But Chairman Palell has also said, don't expect that the FED can swoop in and make a cure all evils. That it would be repercussions on

the economy for a long time. It may sting borrowing costs for years and years or slaying that to me that if indeed we get that default, I mean, if somehow then there's a fix, quick fix after it, list would we still have that long term impact well the economy. That's what a lot of people say. Of course, we don't know till it happens. But you know, some very smart people have said in various stories we've done that it could be cured very fast. But you have to think.

Some big investors say, I might add that I need a little cushion because you know, the US has defaulted, right, you know, so you would say there might be some premium added to yields, not just for a day or two maybe maybe small, but as a baseline for a

long time, because it's totally different dynamic. You know, Yeah, what do we think on the Republican side, are they Is there any cracks anywhere in the in the in the wall that may be exposed here that may lead you know, a small group of people to say, you know what, we're not standing with McCarthy anymore. Well, not yet.

There's a few strongholds. Remember McCarthy took so many votes to get him in as speaker, and he had to cut some deals, and you know that's made it harder because they also can kind of, let's just say, in light terms, spike him as the speaker. They have that option, So he has a lot to kind of payback to, do you know. Eric was saying that maybe you know, McCarthy in the end, you know, will do the best for the country and say, you know, I'll followed by

sword and you know, we'll make a bipartisan deal. You know, so that it may go that way. But again, I think it comes down to markets getting ginned. Up stock selling off, and that being in the front of the local papers and things that policymakers may realize, oh this is bad, and you know, we'll come up with a deal. So it's just hard for me to believe that they won't. But like you know, one investor said to me, I

don't know, never say never, you know, don't know. You know, Okay, So why throughout all of this and whatever may come yet Mark has been kind of singling like everything seems like it's not quite registered that this could go awry. Well, I think there's a few things. One is, like we said, they can't kind of know yet exactly when we'll hit

that wall. Number two, there's a lot of other problems, right, you know, inflation is going to be sticky, you know, not to minimize traders, but there's only so many things they can worry about at once, right, So the deaths they're kind of you have far away a little bit. We have seen US credit default swaps, which is insurance

against a default in the US. They're not a huge product here and they're not that liquid, but those you know, rates have gone up, so there is a few people buying some hedges against a default, right so I guess there's a little concern, but I think we need to get some more clarity. And you know, when this we could hit this wall from Marcus to really kind of like sell treasuries at that point in etc. Have we heard anything from the biggest holders of US treasuries at

this point? And I think about whether it's to Japan. We always think about China when you talk about maybe ultimately in the future if we do get a default, they a lot more in terms of holding them. But have we heard anything from global investors on that front, well, sovereign nation, Yeah, no, they haven't. I think they don't want to get in the middle of this fight. I'm sure if it gets down to the wire, you know,

we've gone through this before. You know, China's a little bit and they still hold a lot, but they're a little bit less of a player. US has a lot more domestic investors than they ever had, so we're not getting into that political jockeying. And I don't think they would speak beforehand. But you do have private investors saying like, I'm worried, Like I think I had some story saying, oh, there's not gonna be too much volatility ahead, and one

investor emailed me, Liz, the debt ceiling. You know, so there are a lot of the private investors that are concerned that this could be you know, a lot of havoc. And even if we don't get a default, if it goes down to the wire and there's real concern, you might see just see more selling of treasures. Again, we have a backdrop of rates rising, inflation being sticky. There's

a lot of concern out there. Anyway, That was Bloomberg News Chief correspondent for Global macro Markets Liz McCormick, along with the editor of Bloomberg Business Week, Joel Webber. Joe will be back a little bit later on coming up Hewlett Packard Enterprise CEO Antonio Nary on his company's strong quarter. You're listening to Bloomberg Business Week. This is Bloomberg. Please sees Bloomberg Business Week with Harold Messer and Tim Stenebec

from Bloomberg Radio. So one way we've been trying to figure out what happens next in the global economy and financial markets is by listening to what CEOs are saying as they report earnings. With this quarter winding down, among the last major companies reporting was HPE Hewlett Packard Enterprise, which last week gave a strong forecast for the current quarter and boosted its annual outlook. The company's results of jest corporations are still upgrading their technology infrastructures, even in

an uncertain economy. Antonio'nery is president CEO of HPE. He joined me and Bloomberg News Deputy team leader for US Equities Jess Benten to dig into the company's numbers. That the it spent is resilient, that it spent obviously shifting in different areas, but overall, I will say, continue to be a top priority for any enterprise of any size.

And last week I actually I was in Europe talking to customers in France and Northern Europe, and they all very clear with me it will continue to be a top priority for them, whether it's to improve the resiliency of the company, or whether it's to mind data through the analytics portion of the investment, or whether it is to also digitize their business. So overall, I will say

is good. There is some unevenness in some aspects, but overall, you know, when I think about r Q one performance, which was recro setting for the company on every metric you look at it, revenue, operating profit, and EPs. And the fact that we have a very solid order book, you give us the confidence to raise the outlook for both revenue and EPs, I will say, and I had a conversation with our Bloomberg intelligence analyst Wu Jenhoe, who said, you know, they were still a result and you did

raise your outlook. You know, we also went through Dells report last night and your outlook was very different in contrast to Dells, which was much more dour. Why do you think there is that disparity that we're seeing in the industry because it's tough for us as we see you guys over port and talk about it. We listen to the c suite similar companies having so different outcomes. I think it's because people just look names and that they kind of put all together in the same back end.

But the fact of the matter is we have a complete different portfolio. Obviously, Hewlett Packer Enterprise does a now participate in the PC business. That's our former pattern company in them now is independent HP Inc. But we have a unique diversified portfolio which makes us very different than Dell. We have an intelligence connected business which Dell doesn't not have. We have an AI business a scale that Dell doesn't not have, So you have to look at the portfolio

and that's why it makes us very different. But also we have a different strategy because our strategy is to offer everything that we develop inside the company. Where is edge cloud NAI in a platform oriented approach, not swelling systems or commodity hardwork. And that's where it is so different. That's why customers and investors need to learn more about that, and that's why we are a little bit more polish

than they are. We certainly have seen a fundamental trade of specific stories just right, And I'm glad you brought up Antonio when it comes to the cloud. You did announce how you do have that definitive agreement to acquire access security and that could help push you deeper into that space. What are you expecting to come out of that and are you expecting to have any more potential

acquisitions on the horizon. Well, over the last eight weeks, we acquire four different assets always in this three domains edge cloud NAI. The first one was a company called packing There that allows us to do data pipeline automation

for deploying AIA scale. So we have a unique asset with supercomputing that now becomes a kind of the old tech becomes the new tech in many ways because you need supercomputing power to trend these very large models and one of the challenge the customers have is to train those models in a very large scale data pipeline. The second answer we bought was a company that does software defined compute for in memory wordloads. Think about those workloads like database that needs a law of memory. We can

now do that a cloud scale. The third one was Private five G. So when we think about the edge, the ability to provide a ubiquitous connectivity layer from Wi Fi to land to software define what they're a network. Now we are bolted into the same architecture the Private five G because Wi Fi and priv five G are

very complementary. And that's a company called Athonet. And last one unless the one you mentioned, which is access security, because you need to wrap all that connectivity layer with a secure access secure edge, and we will have the most complete portfolio on the connecting intelligent edge. And that's an opportunity to continue to growth in the adjustance market. But ultimate customer want and integrated secure solution. You've also been tied to new Tanics. Is something likely to happen there?

We always we don't comment on speculation. I will say we always look for assets that accelerates our journey into the three domains. You know, for us, it's all about accelerate accelerated momentum with hp green Lake. Hpeagreen Lake is a flagship product and one of the metrics are quoted yesterday is that with the HPI green Lake and the total as a service business in two twenty one Q one twenty twenty one, our total control value was five

billion dollars. At the end of Q one twenty twenty three, a total contra value in the balance sheet is ten billion dollars, so we double the business. And obviously we look at all these assets that accelerate the strategy, particularly in the software the findes kind of a layer as well as automation. What about a larger strategic deal. Is that something that could happen? You know, we look at all a type of assets. But one of the things I might CEFO and I hold ourselves accountable to is

a discipline, return based investment. And you know, with the last four acquisitions. I have now done more than three acquisitions in the last six years or so, and all of them fits in that consistent framework where we bring unique ip and talent that we can scale to our go to market. And obviously, as valuation come down from their highs and multiples that were in some cases not justifiable, we look at all of them, but again we stay

strict to that framework. Yeah, one of the criticisms came to the guidance and your momentum moving forward and how that momentum could actually slow in the second half of the year. Is that something that's more of a potentially conservative estimate and something that might be we could see some revisions. They're happening depending on how obviously the business

outlook changes in the macro outlook as well. You know, I have to tell you sometimes I'll understand some of these questions because when you think about it, you know, at the end of QUE four twenty twenty two, which we at an outstanding quarterer, we guided for the full year two to four percent year over year revenue growth for twenty twenty three. With the new guidance, we are doubling that revenue from the midpoint three to now five

to seven million, midpoint six. So Alont call that conservative. You know, when you double the revenue guidance. Alont called that conservative. And in addition to that, let's remind ourselves, we're also raising the earnest per share guidance by another sixpennies. Now we stand that we have a massive headwind on currency. You know our eighteen percent year over year revenue growth that we just posted. Yeah, the five hundred and fifty basis points head winds. So we are prudent, you know.

And this is why, which is early in the year. That was Antonio Nary, president CEO of HPE. You joined me and Bloomberg News Deputy team leader for US Equities, Jess Metton. Jess will be back in the next hour. Still ahead on Bloomberg Business Week, a decorated tech executive explains the most important building block of a successful company.

If you're not investing in yourself as a leader and manager, or in your talent, you're gonna have a problem because you need more out of them, and you can't let growth paper over challenges. I mean, I do think the pandemic cause more disconnection. So if you're not reconnecting, it's going to get worse. There seems to be something soft in saying people investment or people matter, when in fact, I think the best places, the best managers and leaders

have very high standards but also deep devotion. Right. It's the marriage of the caring and the expectations. And I worry people were like, well, we've got to just take our foot off the gas, because yeah, there was a pandemic. Terrible things have happened in this country and around the world, and it is very hard and people are tired. But you know what, we want to be inspired. We want to be inspired by where we work and the people

we work with. And if you don't have a high standard coupled with that empathy and that devotion and that investment, you're not doing your job and you're not going to get the results. Stripe executive and Silicon Valley veteran Claire Hughes Johnson provides her playbook, Look for Better Business Practices

in Any Industry. This is Bloomberg Broadcasting from the Financial Capital of the World Bloomberg eleven Frio in New York to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM Chado one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Business Week with Carol Masser

and Tim Stenebec from Bloomberg Radio. Okay, so you know, we've had lots of conversations with heads of companies and organizations of all sizes. One common denominator the fight for workers in today's tight labor market. We got another read, as you know, on the US employment picture with the monthly data released on Friday. Well, our next guest knows a lot about people management and building a company thanks to its people. Claire Hughes Johnson spent ten years at

Google oversaw some key projects. She is a corporate officer and advisor to Stripe. Was COO It's Stripe. She's got a new book out, Scaling People, Tactics for Management and Company Building. She explained some common pitfalls of today's business leaders. What we've probably done is thought that just people management will come naturally to us. But I do think it's learnable.

I mean, I think a lot about scaling people is just like, let's break down some of the stuff that happens in private, the one on ones, the performance conversations. Let's expose what happens, but actually do the work. If you're not investing in yourself as a leader and manager, or in your talent, you're gonna have a problem because you need more out of them, and you can't let

growth paper over challenges. I mean, I do think the pandemic caused more disconnection, so if you're not reconnecting, it's going to get worse. And that doesn't change when we get into a softer labor market. I think the best companies make this investment no matter what. Okay, I do think though in a softer labor market, sure people start

taking some things for granted. One of the things that bothers me often is companies Obviously they're obsessed with their business, with their product, with their growth, but your people, for a lot of companies are what's producing all of that. And the whole hypothesis of scaling people is you want great results, this is the investment you make because in the long term, that's what's going to produce them. What are use though, The biggest mistake that people kind of make.

There are two things that I think often happen. One is thinking you need everyone to like you and you're not your team's best friend. I'm sorry. And the other is not you need to manage different people differently. And I think a lot of people take the Golden rule. Well, I'm going to manage people the way I like to be managed. But guess what, they're different than you. It's like the opposite of the Golden rule. What motivates them,

what kind of challenge? How do they take feedback? You need to be studying your team and yourself to understand how to adapt and adjust. And I actually think it's very doable. But maybe the third mistake is not taking the time to do it well. It's interesting too, And I think about as you were helping Stripe, as you were working at Google, right, building out these incredible companies, right, but at some point it's probably crazy. You're running after

a million different things. The last thing you're like, all right, what is Joe need or what is Jay need? In terms of an employee? But it's really important, it is. It is at the end of I think the longest chapter in the book is about hiring. Yeah, and at the end of the chapter, I found myself because it's true. I've been in very high growth environments. I've been part of building to you know, arguably pretty definitional companies Google

certainly and Stripe we hope to be. And at the end of the chapter, I found myself writing, if you've gotten to this point, you probably think I'm insane for recommending all of these things that you need to build and want to build into your hiring and your onboarding process. And it's very tactical. They're they're like specific steps, right,

and how to interview and teach interviewing. I said, but you know, if you believe talent is everything you know, or that hiring is everything, then talent is everything and you're hiring has to reflect that. Well. It's interesting because I do feel like in part of the narrative, the corporate narratives, certainly coming off the pandemic right, certainly coming off of George Floyd and everything, it's people, you all matter, and so on and so forth, and you know, the

working from home, do what you need to do. But I do feel like I wonder if the narrative, maybe the narratives there, but the actions aren't. And what are you seeing or what do you think does it just does something change? Here's what I worry about in that, which is there seems to be something soft in saying people investment or people matter, when in fact, I think the best places, the best managers and leaders have very high standards but also deep devotion. Right, It's the marriage

of the caring and the expectations. And I worry people were like, well, we've got to just take our foot off the gas, because yeah, there was a pandemic. Terrible things have happened in this country and around the world, and it is very hard and people are tired. But you know what, we want to be inspired. We want to be inspired by where we work and the people

we work with. And if you don't have a high standard coupled with that empathy and that devotion and that investment, you're not doing your job and you're not going to get the results. All right, So, because you're here and you have this incredible background, I only have a couple of minutes left, So you have to promise you if you're going to come back, because I would talk to you, But tell me about some of the interesting trends that

are going on. We're talking so much about aim what is it that you find it you're at Google, I mean the Moon's like, you know, there's just so much stuff. What is it that you find interesting? I love working with founders, and I love all of the new things that are happening. You're absolutely right, it's you just turn around and there's an exciting project happening in any lots of companies of all sizes. I think AI is real.

It is incredibly innovative. But what's really interesting about it to me is it's less of a technology that is like there's one or two winners, Yeah, kind of a thing, right, like an Android and an Apple. Right. This is much more fragmented and dispersed, and it's very accessible to a lot of different companies. It'll be very interesting to see how pele how companies sort of innovate around AI as part of their core business. And I think a lot of the best companies will Is it a conversation you

guys are having about I think every company. I'm on bunch of boards too. I'm on the board of HubSpot, every company is having that conversation. Really really fascinating. I have a million more questions working from home, is it here going to go away. I think some version of it is here, but it means you have to be in person on some regular basis. In my opinion, that's Claire Hugh's Johnson Corporate Officer and Adviser to stripe. Her new book just out. It's called Scaling People, Tactics for

Management and Company Building. So Claire is scaling people, while our next guest is helping to scale up The Everyday Feminist. As we marked International Women's Day this past Wednesday, Latania map Fret is the President CEO of Global Fund for Women. She's a former executive director of Planned Parenthood Global and UNICEF Human Rights officer who also spent a decade with

the United States Agency for International Development. Patania's new book, entitled The Everyday Feminist, The Key to Sustainable Social Impact, driving movements we need now more than ever. It came out on International Women's Day, which he joined me and Bloomberg Market Senior editor Mike Reagan to talk about her organization's work. Global Fund for Women has been around for about thirty five years, and it started with the concept

that we should just fund women period. That's, you know, because because because there's so many different reasons why we need it to do that. And back then, honestly, thirty five years ago, it seemed a little bit groundbreaking that you should fund a woman to do the business of supporting the community. We're so we're talking about the mid eighties, right, yeah, yeah, about eighty seven, So it was very difficult to get

funds to women, particularly in the international setting. I mean, but Stevens still, you know, we're struggling with so much of this. But it is just women who don't fit a scenario. And we have some real biases in our cultures and our communities around women who are doing just everything but yet are undervalued, overlooked, and when it comes to getting them resources, people just feel uncomfortable just giving

them money to do these things that are quite entrepreneurial, innovative. Okay, so let me just start with some of the you know, then one of the first grants from Global Fund for Women went to Lima Goobowie and Lima Goobowie, as many of you know, Pray the Devil back from the Disney documentary, actually just was a woman who wanted to want it

peace in her country after three civil wars. She was tired of the actual table of peacemakers being all men, she thought, and she felt seriously about the fact that maybe we should have some women at that table and women that are living these real experiences that are going on in Liberia. So Global Fund for Womber gave her ten million dollars I'm sorry, ten thousand. Ratchet that back ten thousand, very different. Probably felt like it's a business show.

So ten thousand dollars, I mean, of course they did. And she didn't have an organization, she wasn't registered, you know, she didn't have a bank account. We gave her ten thousand to get buses to take women from Liberia to a cross to Ghana, to chain themselves around a building where they were holding peace talks with all these men, both the opposition and the government and other actors, international actors, and they would not let them come out until they

had a peace accord signed. And that's what they did. And that's the kind of money we're talking about. The Global Fund for Women does. And this is this long term social change that we keep talking about that is so valuable, but yet that we don't get behind, you know. And so that's because we talk too much and we

don't actually put the money to what a rhetoric. It's a lot of sort of cultural understanding of what women should do and what they should ask for when they do it, and maybe they should just be able to do it without asking, you know. So it's this kind of thinking that really is the emphasis behind The Everyday Feminist. That's Latonia map Fret, Presidency of Global Fund for Women. More from her conversation is coming up, including her response

to the backlash against critical gender equality initiatives. You're listening to Bloomberg Business Week. This is Bloomberg. You're listening to Bloomberg Business Week with Carol Messer and Tim Stenevec from Bloomberg Radio. All right, so let's get back to our conversation with Latania map Fret. She's the Presidency of Global Fund for Women, which provides feminist funding for grassroots organizations

around the world. Her new book, The Everyday Feminist, The Key to Sustainable Social Impact, driving movements we need now more than ever. Latani joined Bloomberg Market Senior editor Mike Reagan and me and shared that almost anyone can contribute to the cause. These are ordinary women. I mean, of course, we love the jscentas and the Kamalas of the world. Who are you stepping up in amazing ways and breaking

the glass ceiling. But don't forget about the women who are the headed at bta's, the nurses who are taking care of your elderly parents and pushing back. What's different about feminism outside the US versus like a developed country. So well, let me just say, I think that the word has gotten to be so um taken out of context. It's you know, I mean feminist. You know, these are people who believe that many women are equal and should

be able to proceed likewise in our culture. But there is um, you know, there's a sort of background to feminism, especially in the North, the global North. I mean, my grandmother when I was a little told me she is no feminist. That's white, rich women who have time to think about gender all day. But yet in the book you'll see she's probably one of the biggest feminist I know who stand out when women are you know, need to be stood up for um. And so I think

the you know, there's this new renaissance among feminisms. So the word can now be used and business, It can be used in sports, it can be used in our homes, in ways that I think we're just now getting again to get acquainted with the word. So I'm happy about that. So do we let the guy speak or Okay, go ahead, Mike, I'm sorry with you. I was gonna say, I have three daughters, so I'm very familiar with funding women. I

guess we'll give them. But let's tell you, you know you can't help, but worry about this backlash that's going on politically to UH inclusion diversity programs among some of the far right politicians out there, is that affecting the Global Fund at all or is actually invigorating donations and sort of the enthusiasm for it. Well, let me just start with I do get a little worried. I just

saw OECD data. You know, so this is the money that's coming from mainly Global North countries and the assistance that they give into UM Global South spaces. UM week track that every year there's a report that comes out on gender equality UM. In twenty twenty one, we started seeing a backlash. So the report has not come out for twenty twenty two, of course, but we saw the numbers actually decline when in other spaces of grant making, charity and other um, you know, things had gone up.

It was the COVID area, of course, and it was also a time when women were experiencing more violence at home than they did it anytime. So yet the money going directly to grassroots groups women's groups was actually lower. So I am a little bit worried about those numbers.

So I'll start there, but I'll say for Global Fund for Women, we are constantly in conversation with and building new ways of getting money to local organizations around the world, and in particularly these women's groups that are doing this work. So we start partnering with where at the Resilience Fund, which is a group of fashion industry. It's the guccies, it's the Amazons, the gaps, h and ms and so forth and starting, and I shouldn't be naming them, I'm sure.

I'm sorry, too late, it's too late, right, it's out there. But they're actually they're working with women's funds to fund women, trust women, to let them do work in the factories where they work, to make sure that their rights are met. It's a new way of thinking about it, and I'm excited about that piece of it. So even if the total money is going downs, we're getting money to let women do what they do best in their countries, in

their sectors, in the way that makes sense. That's Latanya map Fret, President CEO of Global Fund for Women, her new book, The Everyday Feminist, The Key to sustainable social impact driving movements we need now more than ever. Bloomberg's micree Can sticking around for a next segment that reps up the first hour of the weekend edition of Bloomberg Business Week from Bloomberg Radio. Ahead. In our next hour, we take look the global travel business with the CEO

of Priceline, Brett Keller. Plus Ferrari's first ever suv, although they kind of refuse to call it that. You'll hear more on that in a moment. And we've got to look at Google scramble to catch up on AI. We're talking a code red kind of scramble. They are just so terrified of being leap fraud in a field that they really helped to lay the foundation for when it comes to generative AI. This is Bloomberg Business Week. I'm Carol Masser. Stay with us. Today's top stories and global

business headlines are coming up right now. 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 as it happened Sloomberg Business Week with Carol Messer and Tim Stenebec on Bloomberg Radio plenty head in our second hour of the weekend edition of Bloomberg Business Week, including Priceline CEO on travelers running off to catch planes and travel deals, We're jumping on the Pony

Express aka Ferrari's suv, the first they've ever made, and who is in the market for those global multimillion dollar homes. First up this hour, though Google's plan to chat GPT the open AI chatbot is all the rage, And with that we turned to the technology section of the new issue of Bloomberg Business Week and a story that opens

up with the following line. Artificial intelligence was supposed to be Google's thing, and yet we have spent a lot of the last few weeks talking about Microsoft's narrative changing and ipop ten billion dollar investment into chat GPT. So why does a tech titan that's been involved in AI for years now appear to be behind the curve. With more on that, Bloomberg Market Senior Editor Mike Reagan, and I turned to Julia Love, Bloomberg News tech reporter, who

co wrote the piece with Davy Alba. Julia joins us along with the editor of the magazine, Joel Weber and BusinessWeek Technology editor Joshua Brustin. AI has been a long running theme of Silicon Valley coverage for quite some time, and throughout the newsroom. You know, we saw Google as one of the companies that was pretty far ahead. It had a reputation for building you know, products like the like the Auto Complete and emails, just building it kind

of into everything. But I think everyone was a little bit stunned by just the reaction to chat GPT sort of how much it showed a glimpse at what could be the future and how much it seems to change everything. And so we set out to see, like, well Google, who did not get who suddenly doesn't seem like they're far out ahead? Like how were they reacting? And Julia and Davey found that they were reacting pretty pretty significantly. On the stands. Julia, come on in give us some

color about what was going on at Google. Sure, so it's really a fascinating moment at Google because they are just so terrified of being leap fraud in a field that they really helped to lay the foundation for when it comes to generative AI. And so we learned through sources that the company's senior leadership has issued a directive that all the company's most important products must incorporate generative

AI in the coming months. We have also heard that CEO assumed our Pachai is getting his hands dirty and diving into minute details of product development. That's the type of work that normally would be handled three or four layers below him in the organization. And you know, in general, employees feel like working on generative AI is something that can you know, raise their profile within the organization. But there's also a lot of anxiety in the company right now.

They just really don't want to fall behind what I was interested in among other things. Here is just the tension within the company. So, Julie, what'd you learn as you reported? You know, what, what are people comparing this too? People outside of the company are worried that this experience, you know, the declaration of the code read risks repeating doodal, plus the ill fated social networks that some of you we do circles. Oh, I forgot about that, you know.

It's it's the parallel that people see is that normally doodle is a pretty um, you know, bottom up place. Employees and different teams have a lot of freedom to you know, sort of chart their own course. But goodal plus was one of the last time so that Panie said every product must have a social component, and it didn't turn out well. So some faults now that seeing the company do something similar with this generative AI code

read are worried about seeing history repeat itself. What was the biggest thing that you learned while you were working on this, Julia. I think for me, you know, we had been hearing a lot about the code read, but we had imagined we'd envisioned into something that was really

impacting the artificial intelligence researchers, the search team. What are reporting over the past few weeks showed me was that this is something that is on every single doodler's mind and that for many people, more and more people is starting to influence their workflow. Joshua, come on back in here. Google not alone to be fair me. Meta has also been scrambling salesforce VC. They're putting some money. I mean, everybody is kind of figuring out where they need to

be in this. Is that a fair assessment? Oh yeah, we're in like full on Silicon Valley hypes. I goal right now. I feel like overnight all of our inboxes, which had been filled with pitches for blockchain companies, just seamlessly switched to chatbot companies. Everyone's trying to figure out, like where you know, where there space is in it.

One little tidbit in this piece, which I think will hopefully be grispher for further reporting down the road, is that the company formerly known as Facebook, which you might remember changed its name because the metaverse was everything, is apparently now focused increasingly on this kind of AI and maybe like eyes wandering away from the metaverse a bit. So it's definitely a thing that you know, everyone is

thinking is existential now AI verse get ready? I mean to be real here, like that what Google has already is an incredible product that has dominated for decades metaverse definitely, you know nascent. Let's say everybody uses Google, not everybody uses meta for Google. Here, I think that the risk becomes like could do they mess it up along the way? And what kind of reality? Uh? And what kind of

conversations are happening within the company about about that tension. Yeah, you know, Doodal executives have said over and over again that they take very response, very seriously the responsibility that they have as the world's tea provider of information. You know, these large language models frequently hallucinate, meaning they will deliver

incorrect information with conviction. And while chat GPT might be able to get away with that and sort of a new final final product that we're all playing around with the states, they're much higher when it's Toodal and also not even just hallucinate. You know, their stories when being introduced a beta version of its new chat bot. You know, there's a New York Times reporter who had a very alarming exchange with the chat bot where the chatbot tried to convince him to leave us, fall in love, fall

in love, and leave his wife. So it seems to me like we're almost and you know, the backlash stage to the new technologies is hitting before it's even off the ground. You know, there is there a risk there, do you think, I mean, is there any concern at least about a risk that everyone's moving too fast with

this technology? Yes? You know it's funny. I did speak with one former Doodler who told me that he was a little bit surprised that Doodle sort of put its foot to the gas after this um announcement of chat gpt UM. He said that he felt like if the company had just waited a few weeks around months that you know, being Church would have self emolated in his words, and I think that, yeah, Goodle had been acting cautiously and Natasha's approach me maybe the wise one in the

long run. Josh I thought the way that the story ends was also really poignant though, because bringing the Xerox reference. Yeah, so, for those who don't know, Xerox Park was a research lab that did a lot of the foundational research that led to the creation of what we think of as the modern PC, the sort of graphical interfaces, the mouse, and they had this, They had a lot of this stuff. It was being shown in demos some people who came

to look at it. Steve Jobs, Microsoft and those two companies, which are each now worth a trillion dollars, really built something out of that in Xerox Park, which less to say, is not worth a trillion dollars, did not commercialize and you know, Google does have something of a reputation of being better at the early stages of tech developments than the final polished products, and I think it's something that people at Google are somewhat self conscious about and aware of,

and they really don't want to be the Xerox Park of AI chatbots. Well, you know what I find fascinating is we keep calling this company Google when, as we all know, they changed their name several years ago to Alphabet, which was meant to reflect all those other investments they were making besides the search engine. So Chilia, that seemed like a very sort of unfocused, scattershot strategy to sort of invest in a million different projects in a lot

of different areas. Does this feel like that they're getting away from that and kind of focusing now more strictly on AI. Yes, you know, I think that AI is something that is present across the Alphabet portfolio. Certainly Waymo the self driving car unit as a different expression of artificial intelligence. But nevertheless, the two adds still make up

something like eighty percent of alphabets revenue. And so I think, especially in these past financial times, there is a recognition in the company that this is our bread and butter, and we need to make sure that we don't know squander any momentum in this race. You know the self of the lifeblood of the company. Our thanks to Julia Love, Bloomberg News Tech reporter, Bloomberg BusinessWeek Technology editor Joshua Breustein,

and the editor of Bloomberg BusinessWeek Magazine Joel Webber. Bloomberg's might reek in with us as well. You're listening to Bloomberg Business Week. Up next, well Spring is near right. You can feel that at travelers they are definitely looking to hit the road. Families are really prioritizing travel this year, more so than last year, and most of them are heading to beaches and resort destinations. So if you want to go to one of those destinations, you can expect

to find a lot of people traveling. Priceline CEO Brett Keller is up next. This is Bloomberg. Please see is Bloomberg Business Week with Carol Messer and Tim Stenovic from Bloomberg Radio shares The booking holdings are up more than twenty five percent so far this year. The company recently gave an earnings update that was last week, beating both on the top and bottom lines among the online travel companies brands price Line. Priceline CEO Brett Keller has been

with the company for more than twenty years. He joined me and Bloomberg's just met and with a positive outlook for a Priceline and the broader industry. Things are actually very good if you're in travel right now. Obviously a very tough you know, twenty twenty and twenty twenty one, twenty twenty two started to show some really nice signs, and for the last couple of quarters, the consumer has

really demonstrated that they're prioritizing travel right now. And if you mentioned earlier, you know, we recently came out with our fourth quarter results and it's showing real strength across especially across the US, but really across all markets around the world. And I'm really excited with Spring coming up, Carol and Brett, I was curious about what does the travel demand look like as we head into spring. Should

we expect this strength to continue? I mean, when I think back to the holiday travel, there was a little bit of chaos when you thought about the airlines and some of that in the bookings. But what are you expecting for spring travel right now? Sure? Well, consumers have essentially kind of fallen back into their typical booking patterns, meaning they're traveling on the busiest days of the year, so they're going to pack those spring break weeks, especially

families when children have time off from school. Families are really prioritizing travel this year more so than last year, and most of them are heading to beaches and resort destinations. So if you want to go to one of those destinations, you can expect to find a lot of people traveling. I think the airlines have largely recovered and are operating at a pretty good scale now, but they still have limited capacity, which means planes will be very, very full.

There's not really any slack in thatstry at this time. Gotta say, bright, you know, I get that. You know, if you try to book a flight right now for business or otherwise, Man, those flights are expensive. We're still kind of, you know, blown away by how expensive it is. Does that continue? Because I'm thinking about the inflationary side of this story. What do you see in terms of costs for flights for lodging, How is it playing out? Sure?

You know, when we look at forward bookings at the spring break time frame, which is really you know, most of March in April. What we're seeing as flight prices are up about twenty five percent over last year, so very expensive. If you're trying to travel overseas, which a lot of people are now heading out to Europe, you're going to see prices up to forty percent over what you would be what you were paying last year. On

the hotel side, not so challenging. Hotel prices are about four or five percent, so a little easier to consume those. But on the if you try to fly, you're going to pay a lot of money. So I think you'll see quite a few consumers in the US choosing to drive fly and they'll get to their hotel destination that way. But it's a lot to consume right now, and consumers

so far are inhaling those prices. We haven't seen either the hotel industry or the airlines really pull back on a lot of their price increases, and so as long as demand is there, we can expect those prices to stay rather high. Right any sign that capacity increased capacity comes into the airline industry, I mean, they've gotten so smart at taking out excess capacity that was pre pandemic. We saw that in a big way. They're great about charging for everything once you get on a flight, or

even on your way to that flight. Is there any signs or any indications that you're hearing that we get an increase in airline capacity. Well, I think there's some early signs. I know all of the airlines would love to build up capacity. What they've been challenged with, of course, is hiring enough pilots and staff and ground crew to support the oncoming flow of equipment. There've been a number of new orders put in for planes, and so I think over the next couple of ye years we'll see

that start to ease. But you know, getting us through the summer, I think what we have today on the market is pretty much what we're living with, which means a very stressed environment when it comes to uh, you know, finding an airline ticket that is reasonably priced to a

great destination. There are still deals to be found. You can still find reasonable locations to travel to, but you might have to be flexible if money is a really tight concern for you right now, Britt, Where exactly are the most affordable deals for spring break, whether it's to

the US or maybe even internationally. Sure, you know, if you're if you're looking for a nice, warm beach destination for Lauderdale, always a good option Myrtle Beach, you know, not not the Miami Beach, but provide the same type of experience in some ways, especially for families. Puerto Rico is very popular right now. Obviously Dominican REPUBLICANMAKA. So the Caribbean continues to be a reasonably affordable place to go overseas. You know, if you're trying to travel to the big

cities like London and Paris, you're going to pay. If you are a little bit flexible and I want to try something new, you can try something like Lisbon, Athens, Munich, even Naples. You know, those destinations. You'll pay maybe a touch less on the flight, but you're really going to say when it comes to your hotel and the average price you're going to pay there as well as it's just a little cheaper to travel in some of those markets,

especially in Greece. A beautiful destination and much more reasonable when it comes to the daily expenses for a consumer. Sign me up, We're ready. Hey listen, Brett. What I do wonder too, is the window that you guys see globally. What are you seeing globally in terms of where there's lots of activity travel wise? Is it mostly Is it largely the US? I know here in New York City, as I walk the streets of New York, I'm seeing a lot more international travelers back on the streets. Yeah.

You know, the US recovered first, and that was mostly due to domestic travel. The US borders opened up a little sooner than some of the European boards, and especially the Asian borders, and so we saw a number of international travelers begin to pour into the US. But Europe came back very strong in twenty twenty two and is now moving at a very fast pace and catching up

to the US. Asia was the longest, they took the longest coming out of COVID to really start to recover, But they are now ramping up very very quickly, and I think in some countries we're seeing demand outpacing two nineteen. Because the travel was so constrained for so long, people are just desperate to go out and take vacations, visit

friends and family, and just see the world. Something else I thought was interesting in a survey that y'all had was looking at how spring breakers are basically split between going someplace new versus returning to a favorite destination. Why do you think that is? Well, you know, travel is one of those things that if you've had a great experience,

you want to repeat it. And a lot of consumers, you know, when they find a favorite hotel or a favorite location, they know they can bank on that head and count on that and if they can get the price that they want, they're going to return to that destination. We see that a lot with Priceline customers, right they come back and repeat and stay many times at the same hotel. And I think that's just you know, when you've had a poor travel experience, it just reminds you

how much you love the good ones. And so I think people are just a little bit of a creature of habit there you're going to return to where you where you feel most comfortable, you know the area, etc. But there's always a mix of people who want to try something new every time they head out. And with the world now really opening up, I think it's much

more possible to do that now, you know. The UN World Tourism Organization came out with a stat that said over nine hundred million tourists traveled in twenty twenty two. That's still only sixty three percent of where we were in twenty nineteen. But this year that number could get as high as ninety five percent, so almost back to a fully worldwide travel recovery. I gotta tell you, I'm one of those people. There's a few places I know, I know, I'm gonna love it, and I go back. Hey, listen,

Brett just got about twenty five seconds here. Lots of geopolitical concerns. Doctor's remindus were still not over COVID completely. What is it that you worry about most when you look at the outlook? You know, I think our primary concern obviously is the longstanding impact of inflation on consumer's wallet. I think that really is the primary concern now. I think consumers are largely over concerns about health as they travel, and it's now really more about the pocketbook. And you know,

that's what we do here at Priceline. We try to help you get a great deal and get you where you want to go. That was Priceline CEO Brett Keller, along with Bloomberg's jessmenton still to come on. Bloomberg Business Week, we speak with someone who's always on the move. We're talking about Bloomberg Pursuits autocolumnist Hannah Elliott. She's back from the snowy mountains of Italy to share her drive with a Ferrari first an suv. It really did drive like

a Ferrari. It has the signature V twelve engine, It sounds like a Ferrari, and they were very proud to have me drive it across snow and ice and off rote terrain. So it is an suv. Even if we don't use that word for it, it certainly remains true

to the brand. This is Bloomberg Broadcasting from the financial capital of the World Bloomberg eleven Rio in New York to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country Sirius XM Chado one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Business Week with Carol Massier and Tim Stenovec from Bloomberg Radio in the Pursuit section

of the magazine. This week, our Globe trotting auto columnist Hannah Elliott explains that Ferrari has pretty much everything, sold out, order books and records, sales last year, margins the key rivals such as Porsche and Mercedes Benz can't touch, and even a line of what she calls quote rioting hybrid supercars. The one thing the Italian automaker never had done, Da Da da an suv. That is until now. Ferrari's preparing to release a four hundred thousand dollars model that it

previously swore it would never never make. Let's bring in Hannah and Bloomberg Pursuits editor Chris Rouser to tell us about it. Chris, Ferrari and an suv. They said it would never happen, never, never, never, and yet we have it. Yes, I mean, Hannah and I have been doing this a long time, and they have told Bloomberg that they're not

going to make an suv. And then you know, Aston Martin made one, Lamborghini most importantly made one, Rolls Royce Bentley and the pressure was just on and the margins were just the profits were just possibly too high, so that they finally caved. And of course, when it came time to test drive it. We wanted to send Hannah. All right, so Hannah tell us about it? Were you crazy about it? I really liked it. I have to say I didn't really know what to expect. This is

the first. Not only is this the first SUV Ferrari's ever made, it's the first four door vehicle period it's ever made. So I wasn't quite sure what to expect, but I have to say I was pleasantly surprised. Ferrari has done a couple other four seat vehicles before, the GTCS Forloso and the FF, and this kind of looks like those, maybe blown up a bit. I think I was happy with the looks. And of course it really did drive like a Ferrari. It has the signature V

twelve engine, It sounds like a Ferrari. It certainly remains true to the brand. We should note Ferrari does not like to use the word suv to describe this vehicle. They want to say it's like a sporty, agile car with larger volumes. Sounds like an SUV to me. Yeah, and let's not forget it does have multiple driving mode. It's got all wheel drive, it's got a clearance that can lift to allow for uneven terrain, and they were very proud to have me drive it across snow and

ice and off road terrain. So it is of an suv, even if we don't use that word for it, and and I have to say, you're right, it's smaller than like, um, some of the subs you might see moms driving to the soccer game. It does have a lower roofline certainly, but yeah, it's an suv. So okay, take us through some of the dynamics of it and the different modes of driving. You got wet mode, slip control, ice mode, you've got comfort mode. I'm all in Orte doesn't so

tell us about this trip, you tech exactly. So one surprise of the trip that we didn't actually anticipate because of weather conditions, we weren't sure if we'd be able to do it, but we did take this. We rode a ski lift through this high alpine snow track that Ferrari had cut into the mountains and the alt and the Italian album and um, we drove it on snow

and it was fantastic. I started out in what's called wet mode, which is sort of a softer mode that makes UM the suspension softer and the steering softer to try to smooth out everything UM when you're driving, which was great. That's something that you might use, like if you're driving to your ski chalet, for instance, or the hotel where you're going to stay where you're skiing. Yeah, Chris and I were doing that last week. Yeah, exactly,

this is this is what we all really need. UM. And then you can switch, for instance, I switched into ice mode, which sort of tightens everything up. It's a lot stiffer. Um, you're going to feel the bumps and the jolts in the road more, but it's also quicker or make it can be potentially quicker if you're really

on it. UM and Ferrari was it great. They had actually a professional rally driver with me in the passenger seat who was really coaching me through the drive modes and how to get the most out of the car. And it's it's pretty incredible. It was really surreal to hear this roaring Ferrari engine that you're used to hearing, you know, on a track or or on the on the freeway in California, to hear that in these alps um it was pretty it was very cool. I mean this one, this was one of the ones where I

was very jealous of you have. I got to say, well, can I ask you anna? Can I just ask you? Though it sounds like it was incredible, Um, but tell us about the door handle. So yeah, you know, there are a few things that we should say about the person. Yeah, the door. The rear doors open and reverse. It's considered a carriage style, so they open um in reverse and

to open them you pull a little lever thing. It's it's a little smaller than a credit card, and it's positioned um on the pillar of the door, on the door, but it's sort of hidden with the door pillars. It's really hard to explain. You don't even really see it, though. The intent is that when you look at the car the sides, you don't you can't see any door handles. They're totally hidden. When you get close to the door, then you see this little handle that you pull and

it opens and closes the door. Now, the thing about those is they are sort of partially automated, which is meant to be more convenient because then it makes the door lighter to open. It'll slowly close itself, but The thing is, we're so used to just opening and closing and slamming doors really quickly. It takes a little bit of time to get used to this sort of partially automated door. And you can, of course override it and just push the door closed. But which is what you did, right? Yes? Yes,

because I'm so impatient. You know, you just get out and you just want to slam the door close it once you're sitting inside. There's a button inside that you could push that will automatically close the door. But again, you know, it takes a lot longer to sort of slowly close the door by a button rather than just yanking it shut. In comparison to the other high hand supercar SUVs that are out there, this one holds its own.

This one certainly holds its own. I would say that really the key that everyone's asking about and wondering about is does it beat the Lamborghini Urus that was such a fantastic vehicle when it first debuted, And I have to say it doesn't. It's very very good, but it's also one hundred thousand dollars more than the Lamborghini suv and it's really not any better. It's it's very good. But the Eurus it just is so striking. It's really

really true to Lamborghini design heritage. It drives possibly even better than the Lamborghini. I you know, some people might hate me for saying that it's just a better value proposition. The Lamborghini is great too, but I don't think it. Sorry, the Ferrari's great too, but I don't think it beats the Lamborghini. All right, Well, there's no chance I'm buying either of those SUVs. Just FYI, we just have about a minute lap, Chris. I just want to get to

one other thing that's in pursuits. It's a fun section because I'm more likely to go to Sweden's Arctic retreat than buy one of these high end SUVs. Just quickly, just tell us about this. I mean, you may remember recently that a pilot made headlines for doing a three hundred and sixty three turn on his flight so that his passengers could see the northern lights. And suddenly everybody was like, oh my god, I gotta go see the

northern lights. And you kind of think of the northern lights as like standing in a field, which I have seen, like standing in a field, having your toes freeze. Like then you're like, okay, I saw the northern lights and then you're like, all right, now I'm in Swedish Lapland, do I do? And we wanted to do a story about how much how much other stuff there is to do, what other things to see in nature, what other zany activities to do. You can go mushing, you can go

ice fishing, you can do lots of different things. And the Arctic tweet is this really great, really small place in Swedish Lapland where you can go and just see amazing things and do amazing things. I have to say, it just looks like so much fun. It looks like you were so out in nature. And I feel like, like I said, I can't afford the Ferraria suv, but I think I can afford this. Read more, folks. It's in the pursuit section, along with another also along with

a really fun story about a reality show. When it comes to artists, there is actually an art reality show. Who knew, right, Yes, there's a reality show competition show for artists. And as you'll be shocked to know that, our famous arts writer James Army was not a fan. He no, he didn't like it. He was nutshy about that. Chris, thank you as always, and our thanks to Hannah Elliott. Always so much fun when we get to check in

with you guys. The editor of Pursuits of course, Chris Rouser and our unrivaled auto columnist Hannah Elliott, thank you again both for joining us. You're listening to Bloomberg Business Week. Coming up. From elite driving to elite dwellings. We look at the market seven, eight and even nine figure homes. That's next. This is Bloomberg. You're listening to Bloomberg Business Week with Carol Messer and Tim Stenovic from Bloomberg Radio.

Underway a broader shift among America's ultra rich and powerful in the wake of the COVID nineteen pandemic. There moves away from places such as New York's Upper East Side and San Francisco's nob Hill to warmer, less dense regions of Florida and Texas have lifted real estate prices in some locales while leaving other neighborhoods behind. Now, among the Bloomberg analysis findings, New York City falls as Florida gains in a shift of the most expensive areas to live

in the United States. Our next guest is seeing this trend as well. Bonnie Stone Cellars is co founder and chair of Forbes Global Properties. It's a consortium of global firms and brokers that deal in luxury properties around the world. Bunny stop, I'd explain what's hot, what's not, and why prices have remained high despite the fact that there's a slowdown in the volume of sales. We're seeing a shortage

of supply and that's bolts forring the prices. And it's true that there are new places where the top sales are arising. In fact, pomp Beach had the highest price sale in twenty twenty two at one hundred and seventy three million, so the price is still high. Slow down in sales it makes sense, right, if there are not enough properties coming out of the market basic supply and demand, you're going to see those prices stay high. But it's also ultimately because the supplies in there, it's going to

bring down the volume. Do you see any of that changing anytime soon? Well, I mean if you just kind of look at the trophy sales in twenty twenty two, I think you would say that we wouldn't see that changing soon. The top twenty the top twenty five sales and twenty twenty two range from seventy three million to

one hundred seven d three million. These were higher prices in many locations than we've ever seen before, and many of these are purchased by people where a softer economy a higher interest rate will have no effect the billionaires around the world. By all of the homes this year, the more than fifty percent were in the United States. I think partially that's because the international buyers are weren't as fluid during COVID as we hope they will be

in twenty twenty three. And just to put a fine point on it, kind of interesting, but South Florida had the most top trophy sales in the United States and that was followed by Los Angeles, And then it didn't happen until we got to Hong Kong that we had an international city in the top three of the top sales trophy sales. What is it that's going on in Florida? Is it like, what are you seeing in the time that you've done this how many years? Is there something

really distinct going on in Florida right now? Well, I wouldn't think I think there's anything in particular about Florida other than the fact that there were no taxes here. Yeah, but that's not new, right, right, that's not new. But I would suggest that a lot of the amenities that the top buyers are looking for happen to be found in homes here, and those amenities number one for twenty

twenty two, based on our research, or outdoor space. It turns out that people are now investing in entertaining again and being with other people, and they want that outdoor space and a lot of it with which to interact. The second item is being close to amenities that they like to spend time with. Vacation where you live and the beach in Florida is a strong factor as well. That was Bonnie stone Seller's co founder and chair of

Forbes Global Properties. Check out that full interview. You can find it on our podcast feed, and that raps up the weekend edition of Bloomberg Business Week from Bloomberg Radio. Thanks so much for joining us, and a big thank you to Bloomberg colleagues Jes Metten and Mike Regan for sharing some co hosting duties while Tim is on leave. Be sure to tune into Bloomberg Business Week Monday through Friday, starting at three pm Wall Street Time on Bloomberg Radio.

You can also watch our daily broadcast on YouTube. Just search Bloomberg Global News and check out our Bloomberg Business Week podcasts. Find that at Bloomberg dot com, Apple, or

wherever you get your podcasts. Bloomberg Business Week is available on newstands now at Bloomberg dot com, Slash BusinessWeek, and always on the Bloomberg terminal, and you can also see us on Bloomberg Originals, available on Bloomberg dot com, Slash Originals, and streaming platforms including Roku, Amazon, Fire TV, Samsung TV Plus and more. Have a good and safe weekend, everybody. I'm Carol Masser. Stay with us. Today's top stories and global business headlines are coming up right now