Bloomberg Businessweek Weekend - March 11th, 2022

edition of Bloomberg Business Week. Stocks and commodities seeing big swings this past week, with the war in Ukraine still raging and another thing as expected, CPI in the United States hitting a fresh forty year high in the month of February. That latest inflation print comes against the backdrop of this week's coming f O M C rate decision on Wednesday, with an interest rate hike all but certain, We're going to discuss the Fed's path forward in just a bit. Safe to say, Tim, it ain't easy for

the fan. No. I think I've said this many times, but I wouldn't want to be in j palace spot right now, that's for sure. Also ahead on our broadcast, renewable energy, how soon can it be scaled up? In a world where false fuels are increasingly being shown for both political and environmental reasons. We'll find out from the CEO of SunPower, and our investigative team spotlights the latest Olympic sport to be plagued by revelations of young female

athletes being sexually abused by respected older men. All that to come. We begin, though, with the cover story of the new issue of Bloomberg business Week, Russian President Vladimir Putin's endgame for the war in Ukraine. That story from Bloomberg News Senior reporter for International Affairs, Mark Champion. He joined us along with Bloomberg business Week editor Joel Webber to help us understand what exactly Putin's objective is now

that an easy victory that's out of reach. It started as one thing, and I think, as uh, the invasion probably is not going quite as he had hoped or or even planned. I think that has the potential to change, and probably has more potential change from from here. But when Mark and I first started talking about this article, it was like it was a little bit of a mind meld because I went to someplace that he was like, wait, wait, I got I got this all right, and we're gonna

write it. And he said, all we gotta do is look at Putin's history. So Mark walk us through a little bit of that, because that if we if we spend out forward, might tell us what the in game in Ukraine becomes. Yes, so you know, essentially Putin wanted control of Ukraine, uh. And you know, so that involves

putting someone in charge. And so his initial strategy was to move in very quickly, light footed, send special forces into the centers of Kiev and other cities, take out the government, replaced them with something more friendly, uh, and then he would be able to have them fulfill whatever needs he had. UM. But the difficult none of that happened, of course, and so he's now in a much more traditional way of trying to subdue populations, which he's done before.

He did it in Church again, or rather Russia did in nine and then he in two thousand UM and again in Syria. He's done something similar. Russia has done

something you know, somewhat similar in Georgia. But what they kind of had in common was that he was able to crush these places to reduce I mean, the Russians reduced gross needs to rubble Um and Aleppo to rubble, and Harms to rubble all these places, Um and he was able in Syria to maintain someone in power who you know, was the guy he wanted um, and in in Churchenya he was able to put someone in power.

But the situations are so different. Ukraine is so much bigger that I think, you know, it's it's very clear he can't he can't do that here. So what he has to do is just keep crushing resistance until Zelenski, President's Lensky gives him what he wants. Right, it is hard Mark to figure out how at this stage of the game, how does President Putin, you know, create a neighbor that is friendly and pro Russia. It's hard to see that. It's it's absolutely not happening. And so that

you know that Plan A has completely failed. Uh, and it is a disaster for him. Frankly, you know it's

a strategic disaster already. Um. But you know he will hope to come out of it with something and you can see it in the in the his his spokesman d metro Pskoff a couple of days ago said, you know, well, you know we could stop this immediately, and instead of saying, as you know Putain had done before, once we denatified the country, which basically meant regime change, and once we demilitarize it, which means the army being obliterated basically and

and disarmed, um, and there would be no Ukrainian Army. So he's instead of using those words, he said, you know, we need nature neutrality. We need recognition of Crimea as Russian. We need recogn nition of the Don busts, these separatist territories that they've been finding over eight years, that we need recognition of those as independent states. Um. That's not something that presidents the Aliensky can do. But he's now said, you know, well we can talk about NATO neutrality. UM,

but there's still a long way to go. What's a realistic way for for us to try to understand how this continues? If I'm going to be very pessimistic, UM, I cannot see a situation in which Zienski can sell uh, the recognition of any of these um, these territories. He said that he's willing to negotiate about their status. And you can imagine, you know, going back to the kind of talks that they've had before about how much autonomy

and on what terms should the Don beast territories have autonomy. Um, and you could, you know, finesse something on Crimeanson. But Butin needs something more than that. He needs, you know, he wants to he needs to win his Aren't it a huge war here, the largest since World War Two in Europe? And he needs more than just you know, a statement from the Ukrainians that they won't join NATO. And you know, you have to remember that, you know, in the weeks before this started, Yankees again already said

that he was willing to talk about NATO. UM. And you have to remember too that before any of this started, in two thousand and fourteen, before the annexation of Crimea, Ukraine had it written into law that it was a neutral country. That was Bloomberg New Senior Reporter for International Affairs, Mark Champion on this week's cover story. You can find it on the Bloomberg Terminal, online at Bloomberg dot com

and on newsstands now. Coming up next are Editors round Table on the Fed's uneasy quest to keep the US out of recession and Vladimir Putin's difficult mission maintaining a market economy. You're listening to Bloomberg Business Week. This is Bloomberg This is Bloomberg Business Week with Carol Messer and

Bloomberg Quick Takes. Tim Stenovan from Bloomberg Radio. Welcome to the Bloomberg Business Week Editors Round Table, our weekly conversation with the editors of the magazine talking about one of the stories that we all should be talking about, and that is the US Federal Reserve. Joining us is a Business Week editor Joel Weber, along with the economics editor of the magazine, Christina Lynn Blad. Also joining us Bloomberg

News FED reporter Matt Bosler. Joel, Look, every FED meeting of late has been one that's watched really closely, but I gotta say this one certainly feels like the one that we're going to be watching the most closely in a very long time. I mean, you're right, like every one of these things, it's like every everybody stops what they're doing Bloomberg and like tunes in. And I really think that this this coming week is going to be um even even quieter as this happens, and you know,

expected rate hike. The question is going to be if it's twenty five basis points, which which would be sort of a dovish move all things considered. But within the FED there's this dynamic of of a very hawkish UH quotient and there's an open question of like how much, um, how much the room will go with that hawk ish uh sentiment, right, And if that happens, then we might be looking at a fifty basis point move. And all of this sets up sort of what's to come over

the rest of the year. Where heading into it all, the FED has been very clear that uh, that they will be raising rates. But now that the now we have inflation numbers really bad, forty year high in the US, right. We also have a war, we have oil prices increasing. All of these things create this enormous challenge for the FED to do what's called effectively a soft landing, which is bring us down land this plane. It was already

gonna be hard. Everything's just stacking up against them, right, um, Christina, We've had a soft landing from the FED before, but it's been a while. It's been in the nineties. Yeah, and they're greenspan um. But it can be people out there in the auditive like who what I mean as legendaries, I think about a younger, right, you know, individual out there who's like why do I need to worry about

this stuff. There's what we talked to some people who are like, there have been sort of semi soft landings, not completely skating off the runway right. So, um, you know, I think Powell has talked a lot about how it may be possible, how you know that the damage to the job market in particular could be less than might have been anticipated in in years prior you know, trying

to do this. But there is this question about sort of how well they have to frontload bigger increases um in order to tain inflation that now has even more upward pressure on it from energy prices. So, Matt, come on in here, because you cover the FED really closely. Talk about the tools that the Fed actually has at its disposal to stick this soft landing. And look the context here and stable prices not achieved right now, maxim

employment by a lot of measures that is achieved. Yeah, the short answer might be they don't really have the tools because you know, especially when you look at what's going on with inflation right now and what's likely to happen with inflation as a result of the war in Ukraine, these are a lot of things that are you know, far outside of the fed's control in terms of the

things that they're able to affect. So when you're talking about global food prices, global energy prices, things like that, higher interest rates aren't really going to do much to curb those and so I think for the FED they're more thinking of it. From the perspective of the risk is that people see these higher prices, inflation expectations go up. This becomes a sort of self self fulfilling spiral that then becomes harder to uh, you know, bring down more

in the medium term. I think the big risk for the FED, you know, at this coming meeting is they're putting out new projections for interest rates for the first time since December, and so from that perspective, the dot plot correct and they've been getting really hawkish since December,

since the last time those projections came out. This war started kind of right at the beginning of the you know, multiweek planning process that takes place before these fo MC meetings, and so there's just no way that as they're compiling their projections and trying to figure out, you know, where they're at versus December, that this has gone on far enough for them to really account for it, and so I think the risk is that you see projections for

interest rates marked up rather dramatically from December to March, and that itself might already be stale, and the market might look at that and get a little spooked out. Okay. The other elephant in this room is the one that Christina and I have talked about a lot, which is, Okay, we're gonna raise rates, right, whether it starts at or fifty. But say over the course of the year we see rates go up every single time that there's a chance

to rease them, what if that doesn't actually address inflation. Matt, Well, at least the Fed will have higher interest rates and then they'll be able to cut them, you know, when we get this slow down real activity. Right. But I mean, that's that's why this inflation expectations point is really important, and it's something that um Our economist David Wilcox wrote

about recently. You know, despite the high inflation we're seeing, you know, inflation at forty year high and it keeps going up a month after month, we haven't really seen this bleed through to consumer household inflation expectations yet. And so in that sense, you know, the Fed's task here is not necessarily a huge one, you know. They just have to start moving interest rates up towards what they

consider to be more normal levels. And I think that will kind of, you know, cool things off for everyone in terms of the pressure that everybody is feeling to respond to this situation right now, even if higher interest rates in and of themselves aren't really going to help bring inflation down much in the near term. I mean, this is like one of the things you guys do so well, and I think about, you know, in terms of explaining the FED what they do and the implications.

But I do wonder Christina. You know, so many people have come on air and said, how does the FED kentuct monetary policy when what's going on with the supply chain disruptions and a lot of the inflationary pressures are way beyond their control. Well, I mean that's what's been raised in a lot of countries. And one of tho stories we did in this section also was about Brazil,

where um, they've been hiking. Now that they've done more than eight hundred basis points of hikes, um and and more coming and inflation is taking a while to come down. But I think this idea of anchoring expectations is really important, and it's important everywhere in Latin American countries. There, you know,

it's tougher because people are used to it. But this, this paper that Matt mentioned about Wilcox did, it was really interesting to me because it brought up the idea that in the US there's people who have never experienced inflation, so they don't have this kind of knee jerk responses like that they that they had in the seventies, where people had been actually for several decades experienced you know,

pretty high you know, periods of high prices. So um, I think I would say the American consumer is I said, flustered, but not panicked, uh necessarily. And if you look at projections, you see you know, people seeing prices moderating. That's that's just super important to what the FED are you saying? Transitory? I didn't hear that wants to camp now? And that's

this week's Bloomberg Business Week Editors Round Table. Our thanks to Business Week editor Joe Weber, along the economics editor of the magazine, Christina Linblad, and Bloomberg News Fed reporter Matthew Bosler. Still ahead on Bloomberg Business Week. With energy prices soaring, firms in the renewable space or getting a big lift, the question is are they ready to fill the void of traditional fossil fuels right now? Our conversation

with SunPower CEO on the other side. This is Bloomberg broadcasting from the financial capital of the world, Bloomberg Eleve in Frio in New York to Washington, d C. Bloomberg 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. As we've been reporting, the Russian invasion and subsequent war with Ukraine has many fronts and moving parts, most importantly the humanitarian want the impact, of course on the lives of Ukrainians. It's also leading to a big rethink on where the world gets its energy and what type of energy it should be using. With that in mind, we had the opportunity to talk with the chairman and CEO of SunPower,

Peter Farisee. Tim it's a renewable energy company has got about a three point six billion dollar market cap. It shares jump nearly or so earlier in the week, driven by rising prices and sweeping sanctions on Russian imports. All of a sudden, the world again right aggressively investors to looking at those alternative energy companies. It's really interesting. You know, last year, the residential solar business grew across the US

about thirty year over year. So far this year we're seeing double that, you know, maybe triple that in terms of customer interest. So just over the past couple of weeks, we've seen a record number of appointments and record number of bookings. And I think it all has to do with what you're describing. You know, people are becoming more

and more aware of their energy needs. They're becoming more and more aware of how much their utility bills are increasing dramatically, and renewable energy, specifically solar is such a great, great alternative for consumers here in the US. So it seems to be. And look, this is based on my cursory research, because um, I live in an apartment building in Brooklyn. Uh we I mean, I gotta tell you guys,

we are we got our Connent billt UH. The charge for electricity last month went up three x. It was three x costs from the previous month, so a massive increase. We looked into solar. The bid that we got for solar says that it could only cover six percent of our buildings electric electric use, so it's not necessarily great at least at this point for big buildings. My friends who live in the suburbs, however, can't get solar installed on their roofs fast enough and they are giving electricity

to the grid. Totally true. You know, even out here you said, I'm coming in from Seattle. I want you to know, actually it's a partly sunny, partly cloudy day out here, and my solar panels have generated fifty lots of energy and I'm taking about ten of that and selling it back to the grid. So you know, it's it's kind of a misconception that solars only for the southern part of the US, or you know, only for areas that have, um, you know, a lot of government subsidy.

Our our research indicates that you know, as many as a hundred million holmeowners here in the US would save money every month net of their solar costs if they put solar on the then, um, you know, I don't know if you've seen this trend, tim, but more and more people were also getting solar plus battery storage, and battery storage permits you to build up, you know, your storage from the sun during the day and then use that to power your house at night and power your

house through any unexpected interruptions and power. So it's really you know, for residential consumers. I think it's a business that we expect to grow dramatically over the next decade. And we're glad it is because if you read the u N Report, you know the impact of climate change is dramatic. So in addition to saving money, people love being able to make a positive difference in the world. So help me out, Peter, and my team knows, um,

because I say this whenever we talk solar. I remember growing up and we had a golf course near us and there was some new homes built and they put solar panels and then they never know which was cool, it made soundse they could tap into the sun. They didn't sell until the solar panels were removed. I know the dynamics and business has changed. I'm older, so that's a while ago. But why is it taking so long

for alternative energy to ramp up more aggressively? What's where is it in the supply chain or um the process that things get hung up? Is it cost? Is it efficiency? Is it? What? Well? Carol, First of all, I think your perception is a good example. I think many people in the US still think of solar from that timeframe. You know, the panels were ugly, they were kind of big and bulky. Maybe the energy savings was low enough that it wasn't worth, uh, the investment. And that's what's

changed dramatically. The cost of solar has actually come down about over the last eight years, which is dramatic obviously, and because of more and more efficiencies in production. So these new panels, which are you know, mostly clean, kind of black glass, almost like a flat screen TV looking,

they look more attractive, They're much lower cost. And then at the same time, you know, as Tim was saying with his bill to hold, the bills you know, are rising much faster than the consumer price index, much faster than inflation. You put those two things together, it's become much more economically attractive. And then I think the products

themselves are a lot more attractive on people's homes. So from our research, people who put solar on the rooftop it actually adds value to their home at resale because people know coming in, Wow, I'm gonna have a very small utility bill because this home already has solo on. That was Peter Pharisee. He's chairman and CEO of sun Power. You're listening to Bloomberg Business Week. Coming up next, we're gonna take a look back at our Bloomberg Live event

from this past week. It's all about the transformation of work post pandemic, or as we get out of this pandemic. We're talking work shifting. Two point oh top executives sharing their vision for the future of work and the key to talent retention. Today, here's a hint, not just about the money. Surprise you. Yeah, that did surprise me. Actually, I wonder if all of you out there, if that's

a surprise to you as well. This is Bloomberg. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. This week, Bloomberg Live hosted an event. It was called Work shifting two point out, redefining normal. The event held in person. It was our first Bloomberg Live event in New York City in person since the gatherings aimed to dig into what our work life is in two as we increasingly are

getting back to the office, at least some of us are. Yeah, there's a lot of office buildings still empty. Tim and I participate in the event and led several discussions. Among them was what I did with Frank because suits she's executive vice president and chief People, Policy and Purpose officer over at Cisco. It's a company with dozens of employees caught right now though in the midst of war in

Eastern Europe, it's really hard. UM and uh, you know, about four weeks ago we started to offer our employees in Ukraine the ability to relocate out of the country and I had a small number of our employees take us up on that. In the last we have about seventy employees in Ukraine. UM. In the last week and a half, we've had about thirty families up to leave,

and so we're helping them get to Poland. UM. From a Russia perspective, our employees are struggling to UM and so we have a much bigger operation there, and we have UM put our employees on a paid leave given the the U S sanctions, and we're doing our best just to of course adhere to the sanctions and and take care of our people. But it's it's heavy and it's hard. Is it changing strategy? Rethink and what this

year looks like. I mean, we are at this point where our in house strategists are saying that the longer this goes on, we've got to rethink what the second half of this year looks like. It's significant, you know, I will tell you it's another really challenging example of a huge event putting the focus on people and then putting the focus on business and what needs to evolve. And so it's something that we're staying close to. We're trying our best to remain hopeful UM in an environment

where there's not a lot of that. Right now. It does feel like it's a reminder of the last couple of years. There's things are coming at us from so many different angles, all right, So the American workforce, the Cisco workforce in general, if we can take a step back prior to kind of the latest UM I don't want to call it a black Swan event, but stress on our system, UM, how are they doing? So I would say they're they're doing well. And I saw some of the poll numbers that you do agree with them.

I agree with most. I felt like the productivity number was a little bit lower, UM, so we have felt like we didn't see a productivity dip whatsoever. We are trying really hard to get that well being perception up UM. And so you know, what I would say is that our people have found a new way to work and the market right now for talent, as you all know, it's so incredibly hot that I think people are asking the question right now is it worth it? Where do

I want to be? And so I think you have this moment where companies are trying to be their best for their people, and their people are really thinking about what's next. Well, it's interesting you guys go out and survey quarterly do your work for us, UM, How has it changed through the life of the pandemic, and what of the results do you think stick with us longer term? Because I think we're trying to find out is the

normal with us for a little while? Memories are short, we go back to the way it was or does it stay with us? Okay, So it's really interesting. So I'll tell you about the elements that have changed the most over the last two years. So the first is around well being. So about two years ago, what we could see was that women and our people leaders had lower well being than our individual contributors. And what we basically said at that moment was, our people are caregivers

in every aspect of their life. You're caring for your teams, you're caring for loved ones, and so we we started to reconcile that and put programs around how to help it. Recently, what we saw is that men's well being has also dropped. So women have held men have met them there and so we just see a lot of our employees struggling with well being. And so that's one thing that we've seen. Does that stay with us? I feel like we are

all very sensitive, very aware. We're asking about everybody. Managers are asking they seem to care. Does it stay? I think it does stay? I do um. I think you're also going to see companies get more and more creative around how they address well being and some of the root cause issues, not just how do I help you at work with this issue, like how do I help

you where you are at the moment. That's how we're looking at it from a Cisco perspective, and so I can see that shift, which makes me optimistic that well being will be a conversation for us into the future. I think the other thing that the Engagement Pull survey show is that when leaders are checking in with their people, when our people feel attention and um, that really impacts retention for the company, connection to the executives, into the

overall strategy of the company. And so there's some basic things that our surveys tell us there as well that will continue to lean into the relationship with manager management. Yes, boys, yes, there's probably been a lot written about it, but we really understand that it does make a difference in terms of retention and connection for workers, especially at a time when it's such a tight labor force that a lot of workers can go. They have a lot of choices, right,

that's right. I think what we see is that at Cisco, the data shows us that when a leader says, hey, how is it going, what can we be doing better? You have twenty one times higher likelihood of holding onto that talent and so just the curiosity and the interest in what can be better is so huge. That's Bark of Students, Executive vice president and chief People, Policy and Purpose Officer over at Cisco and Tim you also had a really good conversation at the event. Well, thank you,

that's really kind of you. But it actually happened right after your your chat with Fran Rob thousand and I took the stage. You might recognize Rob's name. He's Vice chair Preudential Financial, formally CFO of the company. He's been doing research into the state of the American workforce at Predential for years. We started, though, by talking about what Russia's invasion of Ukraine means for the US, which is ce coming out of this, there is a lot of

a hotility in the marketplace. Um you know, outside of the Amanitarian issue. It's a it's a it adds uncertainty into the economic outlook, and you know, the FEDS going through a process of figuring out, you know, how do we normalize interest rates in light of inflation environment and and try to balance um that with with you know, sort of the implications the economy. This makes all of

that much more difficult and so UM. You know, in the pulsing American Worker UM survey, one of the things that comes through there is this insecurity that individuals have around their own financial outlook. This only compounds that, right, So for every individual you're sort of looking at UM before this UM an uncertain sort of economic environment and are are you making enough progress against inflation and other

and other needs? Uh? And now I think that picture gets murkier and adds even more anxiety to the individual American It's interesting that you mentioned that worded security. Did go back and watch the conversation that we had a year ago and I opened by asking you how the American worker is doing? And you use some words that that hit me pretty hard. Uh. Recently you've said they felt quote insecure about having relevant skills in a rapidly

changing environment. They felt vulnerable about the lack of financial stability to get through a pandemic. Here we are a year later, lots of stimulus later. Unemployment rate at that point was just under six point five percent. Now it's under four percent. How's the American worker doing right now? Yeah? So, UM, it's interesting when we look at survey to survey overt as you said, we've been doing this in two thousands seventeen, and you look at the trends over that period of time.

The two things that I spent a lot of time looking at are around financial security. Obviously, we care a lot about that, both for our own employees and because you know, American workers are customer at the end of the day too, so we're we spent a lot of time thinking about that and then skilling because um ultimately, financial security starts with having a good job with benefits.

To have a good job with benefits requires that you have a skill base, and unfortunately, tim what we're finding is that we're not making much progress on either of those fronts. For actually maybe even going backwards. Our most recent survey said seventy of the survey indicated that they're actually in a better financial position today than they were a year ago. But seventy percent of which is pretty pretty remarkable. Yeah, it's a it's a good number, right,

sort of have better off. But the problem is they're still insecure because we had this gap, and all they've done is they've been progress against the gap, but there's still a remaining gap. So seventy percent of them are insecure about their financial future in retirement. That's up ten points from the beginning of the pandemic and five points from when we surveyed just you know, a quarter or

so ago. So how does how do you square that with the great resignation and what we've seen coming from the American worker in terms of not just jobs switching, but leaving the workforce entirely. Yeah, So it's you know, it's interesting. On the surface of it looks like, you know, these things don't sort of fit with each other. If people are insecure, why are they leaving. Well, part of the reason they're leaving, there's sort of as we think

about those motivators, compensation is in there. They are looking to leave in order to find sort of a better financial equation. That financial equation includes not just direct combook benefits as well, um, and so there is a motivation there that's that's sort of behind this great resignation. But in the other pieces of that actually have to do with part of the topics that we're in this earlier panel, which is it's really about a big motivator. There is

around this whole work life balance. People are looking for greater flexibility than they're able to get and they're also looking for career development. Those are the two things outside of compensation that come up repeatedly in our surveys. Um and if you look in fact, so in our survey of the people we survey, it had recently changed jobs. Right, one third of them took a pay cut when they changed jobs. That that blew me away when I saw

that statistic. They took a pay cut because ostensibly they wanted a job with a better quality of life or what they interpreted as a better quality of life, more flexible. Yeah, yeah, and so um sot percent of them actually took a part time job or a gig job because they were

trying to find that kind of a balance. But yeah, so the motivator seems to be that, you know, compensation is always is always a motivator that becomes table stakes as as leaders think about these things in their own workforce. But the reality is it's so much deeper than that. And this, this flexibility around balancing work and life has become a major motivation for individuals. So what's a manager

to do? And and look answer this question from the perspective of what you're doing at at Prudential and what managers are doing at Prudential when it comes to talent retention, can you give us some insight there and who's leaving, how you're keeping them? Yeah, so you know, so you start with, as I said, compensations, table stakes. You need to be at market. But if if all you focus on and I hear a lot of narrative around this, well,

we've gotta pay competitively. Yes, we have to pay competitively. But if that's where you stop, your relationship with your employee becomes transactional. That was Rob VAL's advice chair at Prudential Financial. Catch the full interviews with him, Cisco's fran kitt Suitis, and more top executives. You can do that by going to Bloomberg Live dot com and searching for are workshifting two point oh events. That wraps up the first hour of the weekend edition of Bloomberg Business Week

from Bloomberg Radio. I'm Carol Masser and I'm Tim Stanovac. Ahead in the next hour, the CEO of Petco on growth, the story of a sports dynasty in Los Angeles coming to the small screen, and our investigative team reveals a pattern of sexual abuse in the sport of show jumping in the upheaval taking place inside the rich and powerful equestrian community. All of that to come. This is Bloomberg. 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 Masser and Bloomberg Quick Takes Tim Stinovik on Bloomberg Radio. Hi, I'm Carol Masser and I'm Tim Stanovk. Lenny ahead in our second hour of the weekend edition of Bloomberg Business Week, including Petco CEO Ron Coglin on the company's latest round of earnings and also

about growth to come. Plus Hollywood meets Sports. We're going behind the scenes of HBO's new series Winning Time, the Rise of the Lakers Dynasty. First up this hour a story by Bloomberg's Olivia Carville, who you might remember reported out a revealing Business Week cover story last summer about Airbnb's handling of violent crimes at its listings. This week, she looks at sexual abuse in the world of show

jumping and the efforts to impede safe sport. It's an organization that was set up to help young athletes who have been victimized by misconduct. Olivia joined us along with Business Week editor Joe Weber. It's a rarefied world. The sport that we're talking about here is equestrian, Uh, it's an Olympic sport. Olivia Carverlo's reporting on this has just

been an amazing one. UM was really just honored to publish it in the magazine and and also talk about it UM today because ultimately a lot of this legacy of what she writes about in the story actually goes back to Larry Nassa and what happened in the gymnastics world, and there there have been many things that have changed since that moment um a couple of years ago, one being this organization Safe Sport that was founded by US

Congress to basically help police sex abuse and protect young athletes. UM. But what's happened and what Olivia's reporting revealed is that there's sort of one community that has resisted any sense of discussion about this and has not liked watching its heroes fall. So Olivia bring us into the story and

what happened at the stables? Yeah, sure, and thanks so much for having me on This was a really important story from my perspective as well, just to be able to tell these young writers um stories, to hear it in their own words, what happened to them, what does grooming look like to them, and why their community was in a sense actually attacking them in some cases. I think with an equestrian we have seen really a late sport be torn apart by um by safe sport be

torn apart by its history. And here you've actually got some you know, pretty wealthy individuals who have spent their life within the sport coming out and attacking safe sport, this watchdog agency and also questioning the antics of some of these survivors, which has been really sad to see. Um, I'm kind of starcked that this hasn't come out sooner. Again, it's like what it was once again, a situation of

the institution protecting itself. Yeah, that's right. I think if you look back in Olympic sporting communities, there has been a history of prominent figures who have been accused of sexual misconduct being covered up by the national governing bodies, and we've certainly seen that within equestrian some of the most prominent figures that we mentioned in this piece, Um, you know, headhead complaints about sexual misconduct raised against them,

but it had never really resulted in them being banned at all. And yet with the creation of Safe Sport, we're seeing some of these individuals finally being held accountable, and the sport doesn't like that, Olivia. The pieces filled with powerful but harrowing anecdotes and stories about people who

were affected, but also some really startling statistics. Through the end of seven of the one thousand two sanctions that the Center had handed down and publicized, we're talking Safe Sport here UM in its discipline and database, had been against members of the US Equestrian Federation. By comparison, members of the U S t A, the U S Tennis Associations eight times as big have only received thirty five

Safe Sport sanctions. What's going on with equestrian Yeah, I think we're seeing a bigger number of equestrians sanctioned by Safe Sport than other sports, and that is causing a pushback from within the sport as well. I think that this is a sport that has historically been very insular, very exclusive. They don't like to let outsiders in. It was quite a challenging story to write because it's hard

to break into this community. And so when they started to be sanction from historic cases going back to the seventies eighties, the sport started to fight against that. It's a sporting community that doesn't like being told what to do and is willing to push back and challenge those in power when it doesn't believe they're getting it right. So Juris Cologne was appointed Chief executive Officier of Safe Sport. Had a background where she was. She previously had worked

at the National Center for Missing and Exploited Children. What was her experience coming in to Safe Sport and taking over the rens of the organization. Yeah, Juris was a pretty incredible interview. Actually, she um she was shocked when she came in and started running Safe Sport. She had been working in child safety before, but she had never experienced so much animosity, so much hostility, so much anger.

Because when you're working within child's safety at the elite sporting level, the the people who want their children to win. There is a sense of desire to win, but also ambition.

This is particularly equestrian. It's a community of very rich and very powerful individuals and they did push back against Juriss, and she actually mentioned to me and in her interview how on her first week on the job, she received a call from the mother of a young writer who wanted her daughter's trainer to be reinstated, had been removed for sexual misconduct, and she wanted him back in the

job because she wanted her child to win. And that's something that Juris had never really experienced before in any in any of her previous roles in this area. Let's kind of talk about who she's had to struggle with. The critics, the people who are critical of Safe Sport. What's the rationale? What are they objecting to. The critics are saying Safe Sport lacks transparency, it lacks to process.

They believe that it is unconstitutional in the US to have an organization set up that is labeling people guilty before proven innocent. And they're coming off to Jeras and they're coming off to Safe Sport for that reason. That was Bloomberg investigative reporter Olivia Carrville and Business Week gator Joe Webber. For more on this story, check out this week's issue and go to Bloomberg dot com slash qt for the latest installment of our Business Week storyline series

on Bloomberg Quicktake. You're listening to Bloomberg Business Week coming up. Another strong earnings report from Peto has investors pretty excited. The CEO says, though there's a lot more to come. Ron Coglin on the pet care giants key to sustained growth. This is Bloomberg. This is Bloomberg Business Week with Carol

Messer and Bloomberg Quick Takes. Tim Spinovik from Bloomberg Radio shares a Peto rolling this past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it up to its full your outlook for adjusted earnings and revenues. Okay, we all know this pets all the rage during the pandemic. I know somebody sitting close to me right now who got a new doggie, got a new puppy? Did? How's your

puppy done? Really good? Okay? Good? Well it really really well? Yeah? Well probably good and well if it's being trained well right, well, it does seem that the trend is continuing even as the threat of COVID. Waynes with more on how the business achieved a seventh consecutive quarter of double digit COMPS store sales growth. We spoke with pet Co chairman and ce L of pet Ki Ron Coglin. We made a big bet that we were going to develop an ecosystem

of that's the full offering that pet parents want. So we have our own vets, we have grooming, we have training, we have supplies, we have food, and we do it in stores. We also do it digitally and that was a big bet versus trying to be expert at one part of the thing, which is what basically everyone else does. Um. Pet parents say that's what they want. They want a partner to manage their pet lives. I'm sure it's not

easy for you. I used to go to one place for a vet, one place for a grooming, one place for food my hunches. You probably do that right now, kind of still do. But I do a lot online in terms of products like and that simplifies my world. Yeah. But if you could do it all in one place and then that company knows you and knows your data, and the groomer knows the same thing that the vet knows, we take better care of you, and so that strategy is working. The second thing that's working is our omni

channel strategy. UM eight p of our online orders get fulfilled through our pet care centers we call the micro distribution centers. That means there's faster the customer and lower cost. Does that mean they walk into or no, it's separate distribution centers. There's three. It's your local petc right. It had three different versions. One we might ship from that store to you if you order it online too, you

could same day delivery what you can't do online. Or three you might go in and pick it up if you're short on order. Oh I need to get food and on my way home and you you know, bopus it's just like you you order a head on your Starbucks as an example. UM. So that's really working for us. And then our vet business is working. And we had a big announcement last week. We we had a joint venture with a vet partner and we bought them out last week we announced it and so we're bringing eight

hundred veterinary professionals into our system. And one of the biggest questions I get from investors is can you hire enough vets? And you might have hired my vet who we loved and adored and he became part of a bigger practice and then is gone Avana. Is our investors seeing the story? Though? Though? Are they hearing the story? Because the stock is doing well today, but it did hit a hit a record low in late February. It's down thirty percent from its highs of last year. What

are investors missing here? Yeah? I mean we got caught in some of the market downturn. Um that that happened, and we just need to prove it over time. And that's why I'm so proud of the seven quarters of a double digit growth with the margin expansion, and also our bullishnists was evidenced by our guide which was above consensus. There were people who questioned whether we could grow in the second half of the year. We did so at double digit rate. There are people who questioned whether we

can lap next year? Uh, And we showed a big you know, a nice guide going forward that people appreciate, and I think that's why the stock is responding. In addition to the fact that I think that there is a premium for companies that can execute in these times, whether it's the labor issues, um, whether it's the different economic issues. People who can execute are getting a premium Right now, what segment of your business sees the biggest growth?

Because you talked about a couple of different things, and I'm you know, there's omni channel, there's digital, there's in the store, there's you know, the vet services they're selling pets. What is it? What is it that really juices the top and bottom line and profitability? Uh? I love all my kids and uh that's not my love a little bit more. Um. The truth is they're all growing. But if you look at our digital business, yeah, we grew a hundred and forty three on a two year basis.

We more than doubled our digital business in the last two years. I mean that's astounding. How much How often do you more than double a business that already had scale in two years? We did last quarter. So how bunch of revenues is digital? Purely digital? Digital is between fift and how much of Somebody who is digital then walked in the store, like, what are you looking for when you're when you're omni channel? I was just talking

to Chippotle their omni channel, Right, they have Chippotland. You're digital only. You can go to the store, you can use the app, there's all these different things. How many like how many people are going to the stores buying online? Like you want somebody who's all in. That's the way

the world is going. So if I go through the recent sequence two thousand twenty happened and everyone went online, right, even my father who loves going to stores, all of a sudden became an online customer for the first time. Then in twenty one people thought maybe they won't come back, they came back to our stores in droves and more

and more. It is this omni channel customer we call it retail three data where you really bring this promise of amni channel that we've all been talking about for years together, not only for that experience, but also as fulfillment centers. You hear Target talking about using their targets as fulfillment center and we're the strategy got me to go to a Target store in a long time, very time, And we truly believe we're one of the retail three

out a leaders in defining that. Where are you seeing inflationary pressure beyond what every other business talks about transportation and wages? I mean, is it pet food going to get so much more expensive because of the rise in commodity costs, fertilizer, getting more expensive, meat, getting more expensive grain, being shut off from so much of the world with

Russia's invasion of Ukraine. Where are you concerned about inflationary pressure? Yeah, you never like to see inflationary pressure come at you as a retailer, and you don't like to pass it through. UM. There's been quite a bit in UM. We have the highest end customer in the category UM, so we've been

able to pass that on. But at the same time, we're making sure that we provide options for customers, so whether that you know, all the way from the top end of fresh frozen too high end kibble to medium price wholehearted own brand UM to our vital care program that we actually announce an enhancement to where for nineteen dollars a month you can get grooming veterinary discounts on

products and you can save two three d dollars. So, yes, we're having to pass it through, but we're also coming up with options and ways for customers to save to offset some of that, so you're able to maintain margins. We're able to we actually we we had sequential improvement in our margins this past quarter and that can continue with those inflationary pressures, whether it's food, whether it's labor. At mein trust, we're talking about energy, and that's a

throughput for everything. So the guide that we provided had EBITDA margin expansion, WEBDA margin expansion pretty much every quarter. How do you feel about the second half? And I think about the conversation we have with Gina Martin Adams earlier, who covers the markets, and she said another month of maybe the war and things that I start to rethink, um, how the second half looks. In terms of the equity front. We have yet to hear companies taking down the revenue numbers.

You raise them for the year, you feel really confident or is there something out there that says this could change? You know, we haven't no excuse mentality in our companies. So we took labor hits, we took supply chain hits, and we still delivered eighteen percent growth on the year and growth on the quarter. So yes, we're we take those, but at the same time we have massive addressable market opportunities. That was PET co chairman and CEO Ron Coglin. Still

to come on Bloomberg Business Week. A sports story that was destined for Hollywood. In fact, that's where it all began. How The Rise of the l A Lakers basketball Dynasty

became the subject at a star studded HBO series. This is Bloomberg Broadcasting from the financial capital of the World, Bloomberg Eleve in Frio in New York to Washington, d C. Bloomberg to Boston, Bloomberg one oh 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. I

don't care who you are. If you're a human being with two eyes and a heart, this game, this industry makes you feel good. What industry sweatsocks? No show business. The voices you just heard they were those of actors John C. Riley and Sally Field, Riley playing the role of late l A Lakers owner Jerry Buss and Field playing his mom Jesse. It's all in the new HBO series Winning Time, The Rise of the Lakers Dynasty. It

premiered on HBO last weekend. The new limited series recounts the team's dominant decade long run and the bond it created between the world's sports and entertainment. It's based on book by author Jeff Perlman. It was called Showtime Magic, Kareem Riley and the Los Angeles Lakers Dynasty of the nineteen eighties, and Jim Hecked, co creator, writer and executive producer of the TV adaptation, Well, he just had to

bring it to the screen. And it's whole thing came about because I was in a really bad part of my life, Like it was a really dark time. I was like going through a horrible break up. My career was not doing well. I was super depressed, and so

I took up like meditation. Not to sound to l a, but like I just was desperate and and in the you know, early experimenting with that, like I had this thought, like, you you need to stop trying to write stuff that you think other people would want to see and only do the show that you would want to see. And it was the very next day I heard about Jeff's book on the radio and I stood in on I was at book Soup at nine o'clock in the morning

when the doors opened to buy it. When the book came out, the first day it was out, and then I read it, you know, by eleven, and I called my age and it was like, I want to do like Friday Nights with the Lakers in the eighties. And he was like, Jim, this is the thing that's going to be written on your gravestone. So I love that. I'm not looking forward to any gravestones. But so I threw across the water. I showed up. This is two

thousand fourteen Easter Sunday, two thousand fourteen. I showed up on Jeff's doorstep in New Rochelle with a tomato, a block of chocolate, and a bottle of non alcoholic line. And because he had had some stuff option and nothing ever came out of it, had zero expectations, you know, I was like, yeah, sure, take a shot at it. Whatever, and he said, you know, as soon as the door closed, he turned to his wife and they're like, nothing's ever going to come out of that, uh, And for a

while nothing did. We got a lot of notes. People are like, you'll never be able to cast magic and create, you know, but you did. You did? What what What went into the thinking of how you had to cast them? Because you're not gonna you know, these are iconic players, iconic individuals. Yeah. I mean everybody said it was impossible. Were you going to find a guy six nine seven foot that can play basketball and also act on the level that they'll be, you know, capable of being in

a premier HBO drama. And Francie mas Or, a casting director, did an open call. She found those two guys the second we saw magic on the tape, like that's him. You see the camera, I'm sorry, you see the smile,

and you're like, that's the guy. And then in Solomon Hughes, who plays Kareem, we found a PhD. You know, who's a professor who can capture that intellectual, interne internal, you know, world of Kareem and had no acting experience because like a natural and just gets better and better, and he's the guy's an amazing actor. You know. It's it's it's it's just watching genius talents at work because they have no background and and they're incredible. I I stayed by

reputation on their performances. Hey take us back, as a fan of the l A Lakers, is there a game that you remember a moment in time watching them play that just really stands out for you. Yeah, it's so funny because it's probably the bad moments I remember the most, Like when they lost to the Celtics in Game seven of the eighty four finals. I don't want to spoil this stuff that you can look it up in my mind and find out if they want are lost, but like, yeah,

I cried my eyes out of that. My dad took me to the finals in eighty three and they got swept by the Sixers, And uh, those are the ones, probably unfortunately, that I remember the most. Those are the ones to stand out, you know, even even with all the wins, it's the losses that kind of stick with you. And I've talked to some of the players and stuff. They say the same thing, you always remember the losses more.

I'm wondering if you, you know, you go back to your childhood and you think about these games, you think about watching him in person, you think about watching them on TV. And I'm wondering when you were shooting this and actually going back and looking at that footage, if if any of your memories were kind of very different from what that ended up being. Surprisingly, I did not remember what it was like to watch Magic Johnson play basketball.

And when I went back on YouTube, I was like, well, you know, and probably a lot of people into thirty I've never seen him play, and it's like, it's incredible what he does with the ball. Sometimes you can't even you know, figure out what he did with the ball to get there. And and so that was like way better than I thought it was. Hey, Jim, when you look at the NBA today or perhaps the NBA of the last decade, where do you see the rise of the Lakers? I mean, look, the Jerry Bust changed everything

about the way that we experienced sports and entertainment. Like he merged the two. He created a rock concert at a sporting event. The Laker girls came in. Yeah, there weren't cheerleaders at basketball games. I want something like the Dallas Cowboys have. There wasn't, you know, there was just the organ would occasionally go da da da charge. You know. It wasn't the lights and the he changed the lighting. He just lit the cord and kept the rat with

the rest dark like a concert. That's Jim Hacked. He's co creator, writer, and executive producer of the new HBO series Winning Time. You're listening to Bloomberg Business Week Coming up, how to build a portfolio of luxury. Our Pursuits team on the keys to collecting fine jewelry and writing in style. This is Bloomberg. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovik from Bloomberg Radio.

This week, our Bloomberg Pursuits team is shining a light on an alternative asset class. Well, if you're thinking it's cryptocurrency, your n f T s not this time around. This one that we're going to talk about has a long history of bringing return on investment and the market has never been hotter. We are talking about find Jewelry for more on the keys to building your own portfolio of precious stones. We're not talking watches here, by the way,

We turned to Bloomberg Pursuits editor Chris Rouser. Chris, these high priced items, they kind of never go out of style. Let's let's start at the beginning here at that that kind of the base. So for for those who are looking to add to their collections or even start a collection, what do we need to know. Well, one of the great things about jewelry actually Tim is that it doesn't have to be super high priced. I mean, jewelry generally

is a luxury. But with when you're investing in art, you know you're not really going to get much of a return on your investment unless you're spending more than a hundred thousand dollars or up. Whereas with jewelry, actually much more, much less valuable items can hold their value. Um, so you don't have to be shelling out tons and tons of money. You can get something for a few thous dollars that may hold its value and grow in

in the coming years. But the things to start with are you should look for jewelry that's vintage, so that jewelry that's between years old, that's high quality, so it looks nice. Uh, it's in good conditions, so it's not been batter too much, and it's signed by the jeweler that made it, so it has a stamp from like Cardier or or something like that. Hold on, how do you know if this stuff is legit? How do you not watch Antique road Show? I have not come on right, Chris.

We all know about what to look for. Yes, well, just go on Antique road Show and have them check out what you should do is find a jeweler in your city or town um that is reliable that you can work with, and they'll have certificates of authenticity for everything from the designer to the gem itself, and they'll get the gem checked out. So you know, once you buy something from a dealer like that, then you can go back to that same dealer if you want to sell it again. I love too that you included in

the store, right. I mean, there is a great book. There's also online courses, but as you said, there's I guess, kind of the industry bible right when you really kind of want to educate yourself about starting to invest in

in fine or older jewelry. For those people who don't want to, let who don't see this as a hobby, there's the book Understanding Jewelry, which is by two former son of these jewelry executives, and that really explains the history of jewelry and what you need to know and what the good periods from the different designers are, which is a great place to start. Okay, Well, I just but I'm curious, like what makes something rare? Right, Like I feel like there's tons of stuff out there and

I understand about like the looking for marks. My mom had a good friend that she's like, whatever you're buying, always turn it over and looking like what the prints are and the marks on the back of something. Um. But but what what's rare? I mean? Is it just limited quantities? Is it? What is it? Chris? Yeah? So some A lot of the jewelry houses that are really uh, that really have stuff that holds its value are once you've heard of so Bulgari and Cartier and Rankles and

our Pels and Tiffany. But those companies do make a lot of certain things, So like a Tiffany bean necklace is something that every girl I knew growing up wanted to get. We're the same you and I, Chris, are the same vintage Okay, I think we're the exact same anage or maybe is that still? Are they as well? Yes? Totally um. But but those companies and other companies make limited edition items that are harder to find or things that they only made for a certain period of time.

So things that are deliberately limited or if you can find something one of a kind are the things that are going to go up in value the most. And and one of a kind things. You know, a lot of jewelries jewelers make something custom for their clients. Doesn't have to be a huge, famous jeweler. It could be someone you know, an artisan where you live or whatever, and those one of a kind things actually can go up in value. So, Chris, how much are we talking

money wise here? Um? You know you said that it doesn't have to be expensive, but a lot of the examples in this pursuits p We're talking hundreds of thousands of dollars at least what they're selling for now. Yeah. So some of the examples we list are things that are sold at auctions, so there's public records of them.

So in two thousand twelve, six point seven cash six point seven carrot cash near Sapphire auctioned for two hundred and six thousand dollars, and then last year a very similar size one was bought for five hundred and fifty thousand dollars. So that's more than doubling in value in in ten years. Um and amethyst cuff from Bell Prone sold in two thousand three for twenty six thousand dollars, and in twenties twenty one that same cuff went for

eighty seven thousand dollars um. So that's you know, almost three growth in less than twenty years. All right, So Tims thinking I can do this. I can buy this like really cool old ballll, or I could send my son to college, or I could think about buying another piece of real estate. Hey, before we move on, because we want to get to Hannah Hannah Elliott, who covers all things when it comes to cars. Um, what kind of stones though do we want to by? Is it diamonds?

Is it rubies? What is it? The big three are emeralds, rubies and sapphires, and those, especially if they're from the coveted places, are really extremely investment worthy. So uh, pigeons, blood, rubies from from Burma, which used to be uh problematic and are less so now. Um. And then also diamonds, I mean diamonds sort of reigned supreme as the investment. You should see the notes Tim is taking totally getting ready to do some of this. It's always like do

I send my kids to college? Or do I have some fun? I don't Why is it always about college? It's always about college reality? Alright, So maybe you want to pick up a pricey gem, uh, and then get into your Ferrari to t B because I don't know if that's exactly what Hannah Elliott did, but she covers all things cars when it comes to pursuits. Hannah, good to have you here with us. UM, tell us about

this this new car from Ferrari. I have to say, I would love to pick up, you know, a diamond or a ruby and then get into my Ferrari and right, that sounds great. Um, this is the new V six Ferrari, which is a really big deal. Um. Ferrari made a V six engine in the late nineteen fifties and sixties. You might have heard something called a Ferrari Dino or a Dino UM, and that at the time was considered

kind of an entry level car. In fact, Ferrari didn't even put its own badge on the Dinos, even though they were making them. And even though you know that car was named after in the Ferrari Sun who had

been killed, you know, Ferrari Um. But because that was a V six engine and Ferrari was so famous for making the V twelves, it was kind of considered, oh, it's just you know, as a little as a little thing, but it's not a real Ferrari quote unquote, So fast forward to last week in Spain and Saville, and now we're in this new B six Ferrari, which also has hybrid technology, the V six compared with the hybrid votor. Um,

this is anything but an entry level Ferrari. This is eight hundred and nineteen horse powers worth a Ferrari um and with a price tag about three d and two dollars starting. It's definitely not the entry level Ferrari. But it is really fast, fun, beautiful. Um, it's a real treat. Well what was it like to drive it? You? You got up, you know, you went over a hundred and six in Spain in this thing? What did it feel like? Um? I have to say this has to be maybe the

lightest and most elegant Ferrari i've driven. Um. It weighs like Towns, which is really incredibly light and is so dialed in. Um. We were on the track called Monte Blanco, which is outside the Ville, which is how we were able to drive so quickly. UM, and you know it just I think it does if I remember right, zero to sixty two and two point nine seconds. UM. So

this is a really fast, fast car. And you know, one of the pro drivers I was with told me it was actually faster than the law Ferrari around the Fiorano circuit, which is the home the home track in Italy. It's a lat Ferrari. If you'll remember, this is a two million dollar supercar, and yet here we are with this v six, this NEWVIE six that's actually faster around the track because it's so light, because it's so dialed in, because it has that whopping power even though it is

a six. It's incredible specs zero as you said, to sixty two and two point nine seconds top speed, more than two d five total horsepower. Chris, I have to say, when I was reading Hannah's column, um, I'm thinking she was not though, going more than a hundred sixty miles an hour when she was behind that herd of goats. Yeah,

I love this. I love when Hannah gets to go out into the wilderness with these cars because Ferrari's um, these cars are like very low to the ground, and they're not they're not usually design to be really taken out on the rough roads. But Hannah got to do it in sort of the hills of the Ville. So

tell us about that Hannah. Yeah, it was. I have to say, in Ferrari's defense, both of the road course that we drove was gorgeous, completely flat, you know, roads that didn't even have a dividing line, which was a little bit jarring. I mean it was just like at this open flat road in the hills. So I give Ferrari full credit for a beautiful driving course, but there were some pockets that were very um chewed up, let's say, because this is really rural Spain. And when I mean rural,

I mean like I heard of God walking down the road. Um. They actually told me this is a big hunting this this area that we were driving was a big hunting area. Um. And so it's just you know, life in the countryside. And I have to say I have I have been another sports cars that are they're odd, but they're also really stressful to drive because the littlest um incline or divid can really scrape underneath. And I have been to

say the TTP passed with slide colors. Thanks for all of that reporting in that update on that we gotta run guys, Thank you so much. That's our Bloomberg Pursuits editor Chris Rouser, also our Auto columnist Hannah Elliott. A big thanks to them for taking us through this week's pursuit section and beyond getting behind the wheel that Ferrario, I kind of felt like I was there in Spain with Hannah. All Right. That wraps up the weekend edition

of Bloomberg Business Week from Bloomberg Radio. Thanks so much for joining us. I'm Carol Masser and I'm Tim Stanivik. Be sure to tune into Bloomberg Business Week Monday through Friday, starts at two pm Wall Street Time on Bloomberg Radio. You can also watch our daily broadcast on YouTube search Bloomberg Global News. Also check out our Bloomberg Business Week podcast. You can find it at Bloomberg dot com, Apple, or

wherever you get your podcast. Bloomberg Business Week is available on newstands, now, at Bloomberg dot com and on the Bloomberg terminal. You can also see me on Bloomberg Quick Take available at Bloomberg dot com, slash qt, and streaming platforms like Roku, Apple TV, Samsung TV, and more. Have a great weekend, everyone, Stay safe. This is Bloomberg mmmm