Bloomberg Businessweek Weekend - September 23rd, 2022

Master will be back next week. The Federal Reserve firing its latest salvo in the fight against inflation on Wednesday, announcing a third consecutive jumbo interest rate hike. The FMC raised its policy interest rate by three quarters of a percentage point, and we anticipate that ongoing increases will be appropriate. We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to two that, of course, was the voice of Fed share j Powell.

The question is whether continued tightening will prove to be too much too soon. We'll discuss that prospect with our business week team. Also ahead on the program optimism about

the Labor picture at a critical US trade hub. We'll talk with the executive director at the port of Long Beach, and then we'll go beyond our borders for a look at China's decades long effort to build the ultimate surveillance state, and a business week reveals its annual ranking of the world's top NBA programs, and our cover story explores the evil, genius and incredible success of Apple's air pods. All of that to come, though. We begin with the Global Monetary

Policy Picture. The economic section this week has a piece about the big gamble that central banks around the world are following the Fed's lead and raising rates. For More Carol and I spoke with Business Week editor Joe Weber and Bloomberg's rich Miller. You know, it's incredible. When you

look through it. It's like nineties central banks of you know, hiked and you know like more than half of them have hiked by pre court as some of the more more than that, as you say, like everybody's trying to out Haaulk each other, right, and there are some people worried, you know, with everybody going in the same direction, the boat's going to tip over into global recession. Right. So that's one thing and the other thing is when the raise rates, you first see it in the stock market,

stock market weekends. Then you sort of see it in, you know, the housing market, the Housing Market Solce, and it comes at the very end, it comes into inflation. But, as you say, if they're myopically, you know, focusing on inflation, that means they're probably going to Overdo it and that's gonna push us into a recession, maybe your recession. You know, all all around the globe rich and we're talking millions

of jobs here. As you write in your piece, analysts at black rock reckon that bringing inflation back to the feds two goal would mean a deep recession and three million more unemployed, and then also hitting the ECBES target would require an even bigger contraction. All that, right now is is spelling out a global recession, something that affects the entire globe. So what does this look like when

it comes to economic growth? Translating that three million unemployed into like growth, you you probably have two, two, and a contraction in the economy, in the U S economy. Uh, an actual contraction as opposed to sort of, you know, the sort of phony contraction that we got earlier this year when it was mainly because we were importing more. But you know, this would be actual contraction and you know pain, the pain would be in the labor market.

And you know, one of the questions is, you know, you know the politicians now, with the most part except for UH senator war, and they're sort of cheering the Fed on. Yeah, inflations bed. Go ahead, fed, raise the race. But you know, once, once you start seeing some pain, j Powell has promised us, you you wonder whether the politicians will change their tune, which were already saying pain. And it made me want to ask you about lag effect.

What is it really I mean we're seeing it already on housing, but the successive and cumulative interest rate hikes by global central banks right all of a sudden, I feel like it's like when you know you've got a clog and you're pushing through, nothing's happening and then all of a sudden it comes flying through. I'm waiting for that. Is that what's going to happen? I mean, that is the danger and that's in the past why the central banks would when they did race rates, they'd go in

small steps, like basis points. So you go, you go slowly and you see that you know you have a little more time to see what they impact your rates were having. You know so, but when you're going and when you're galloping ahead in like seventy five basis point chunks, you know, you don't have as much time to sort of gauge how how the earlier hikes were are affecting growth. And, as you say, housing is kind of in the crosshairs here.

But you know, if housing weekends and you know, people are buying lesser appliances, people Um feel that their house prices are going down and they're gonna save more and that just has ripples. So it just takes time. But you know, as you say, it could sort of be like, you know, an exploding toilet right could splash right into our faces. But I don't want to be graphic here. Joe was known for some gracy. No, I know the bar bag was the favorite. Might need to dust that

one off. Look for the you know, your passenger next to you. You can get there. Back to Um rich. One of the things that I thought was a little bit frightening, that I hadn't totally appreciated was um the growth forecast charts in your story US goes down pretty dramatically when you start to look out euro area worse.

UK Man, that looks really bad from the sense of the folks that you talked to in the daddy that you're looking at it is it starting to feel like there's that pit in the stomach that's like, Oh God, this is going to get really bad. Truth be told, the U S we you know, we've held up surprisingly well. The Labor markets held up pretty well. The problem in the US is we've got this you know, embedded inflation problem.

That the strongest the economy is, it means probably the Fed's going to have to work that much harder to slow things down, and that's when you know, you you get risk that they slow it down too much and we go slip in into a recession rich real quickly. Just Kinda at here. Is Inflation still a supply problem or is it now kind of more demand problem, and

that's where the Fed can do something. I think in the US it's probably becoming more and more demand problem, particularly in the labor market with, you know, wages are going up about five six percent a year and to be consistent with the Fed's target they have to be going up three and a half percent. So I got a long way Togo that's why people think unemployment's gonna have to go up a lot. So workers finally get a break and now it's like, yeah, I'm sorry about that,

it's not a good thing. We won't blame you, rich or we can all started here, because the rich Miller is excellent reporting. He's in DC, so there's nothing you can do directly. That was Bloomberg Economic Editor Rich Miller, along with business week editor Joel Weber, and coming up optimism on the Labor front and on supply chains at America's second busiest port. Mario Cordero, executive director of the port of Long Beach, joins US next. You're listening to

Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim stinnoby from Bloomberg radio. It's the second busiest port in North America, generating some two point six million jobs across the US, with some seventy five shipping lines connecting long beach to

two hundred and seventeen seaports. So just how healthy do our supply chains look right now, with a smaller backlog and fading concerns about potential work stoppages at our docks and on the nation's rail system. With more on the state of our shipping in cargo industry, we welcome back the executive director of the port of Long Beach, Mario Cordero. When you look at the metrics here, currently we have in the San Peter Bay Complex twelve vessels backed up

trying to get into the ports. So if you go back to January, that number was one hundred and nine. So just on that alone it's a tremendous progress is being made. Is Any of that seasonal? You know we're in peak season right now and I think we're at the peak, so to speak. Again you're looking at the numbers of the consumer demand or some softening on that. So for the third and fourth quarter of the year, I think we're looking to diminish demand turns on the

consumer front. I feel like you have such a great vantage point when it comes to you what's going on on an economy and we're all kind of on pins and needles trying to figure out what comes next. What is your read on the state of the U S economy right now? I think we have a strong economy. We certainly have a strong labor market and keep in mind where we were two years ago. I think part of the two years was terrible, right, the outlier. So are we pre pandemic levels? Are Like? How do you

in terms of in terms of the job market? I think we're approaching pre pandemic levels in terms of the jobs that have been added since then. But I think the point is we've had a very fast recovery from a worse scenario that we experience. So in that regard the economy was real hot and now, of course, what we're trying to do as a nation is kind of

soften that. When you look at the activity at the port, and it's really just fascinating about just the the amount of flow through there and what the imports of the exports moving through your port. Largest trading partner country is China, which accounts for so much of it. Does recession come to your mind a lot in terms of the activity

you're seeing? A good friend of mine, economist Paul Bingham, who has been following this industry for many, many years, once said tell me how many containers go through the Poort Long Beach and I'll tell you how good the economy is. So so far good. Is Inflation a concern? Yes. However, again, if you look at the latest plan of action by the Federal Reserve, they believe they may be able to

control this. Will wait to see what that decision is, uh, in the coming week, whether that's point seven, five or one, oh increase. But I think it's safe to say that again we went through an unusual quick recovery. The consumer demand has really been extraordinary in the last year and a half. Energy prices have gone down. Admittedly, grocery prices have gone up. So I think what we're looking to is again a very good job market, good consumer demand, considerably, uh,

considerable in terms of what we experienced puriously. But again we are looking at some economic growth, certainly in the global arena and at the United States. I think we're going to feel some of that also. So it sounds like you're saying we're not in a recession right now. Today. We're not. I mean, you know, is it removing towards your recession? Fore? I mean there's a debate. I know that all this is uh highlights. How many like do

people book? Help me out with, like the shipping understanding shipping, having recently been at the Panama Canal fascinating to just understand it. Same thing with your report. Do our companies booking for December? Are they booking for November? Like, how much visibility or how much forward looking visibility do you actually have to get an idea of? Wow, things are

going to slow down. Well, what I can tell you is part of the problem that we variance here in the nation's largest, most strategic gateway is the advancing of that inventory. So, looking forward, some of these companies were advancing the inventory, but they certainly didn't want to put us back to where we were in the second half of uh so I think, uh, it's interesting to watch. You know, there's some bigger company to start looking at

their labor force. Uh. But at this point I will say that in terms of the coming holiday Christmas season, we're gonna be very well established in terms of that inventory because much of that has been advanced already. It's already it's already where it needs to be. Right I mean for the poor lamumage. If you look at the first eight months of this year, we've superseded the numbers of our record year last year at this point by four point six percent. So that's kind of an indicator

in terms out of continued volume. But again, it's gonna be interesting to see how we end the third and approach the fourth quarter, because it doesn't make me feel like people are pulling a lot of stuff forward because they just don't want to be caught off guard like things can get it more expensive, so they're buying now. Yeah, or empty shelves, and you don't want that in Christmas rights, but especially if you're a retailer. Correct, and I firmly

believe we're not going to see that scenario for sure. Hey, tell us a little bit about what you're saying based on where poor traffic is coming from and what that says about economies around the world. I know you guys have a really good view on Asia. Is there any softness there? What we see in Asia, more specifically China? You are seeing a slowdown there. UH, in China. So that is the domino effect. But is that? Is that

based on lockdowns in China? Is it based on the covid zero policy, or is it is it all tied to that? It's all tied to what precipitated these times, that is, the covid nineteen pandemic. So I think again, Um, we'll see how China handles this. I mean the good news is I don't think you're going to see the kind of lockdowns in China and we saw in the past because they're also watching their numbers in terms of

their economic growth. So there'll be a softening and as we approach three I believe that the good news the supply change. Certain United States. I think we're now seeing some semblance of normalization and moderation and supply change, so that's very good news. Why is it still such a lag or such a problem and not back to what it should be? I think a lot has to do at the congestion in the inland in the model yards. I mean this goes back to Chicago in the hubs there.

I think the class one railroads have been rather challenge. They have their own challenges, would be regard to shortage of labor and equipment issues. So I think unfortunately we've been the victims of the lack of that rail car which in my view, should not happen at the world's most strategic, significant gateway. I am disappointed on that point that it's happened. We're talking with Mario Coudero. He's executive

director of the port of Long Beach. As we said, it is the second busiest port in North America and so a great way to get a feel of what's going on in the economy. Do you feel like, based on what happened and the supply chain problems and just it wasn't just port issues, but it was trucking, it was just kind of all along the line, that we will ultimately see in some ways, more automation potentially come

into this industry? I think the good news for those of us in this industry people finally saw the importance and witness the importance of a supply chain. We all found out that the supply chain is not as resilient as some people may have thought. We took it for granted.

We took it for granted. So you know, the essential workforce, which includes obviously our safety officers, are people in the health industry during this pandemic, but also are people who work in goods movement, people who work, men and women who work on the docks, the truckers, the railroad workers, essential workers who moved commerce, which has a great impact, obviously, on our GDP, our economy. So I think the good news for us is. It's not just about talk of

how importance this industry is. We've seen it, particularly from this administration, in terms of the investment, the funding in this industry in America Sports. That was Mario Cordero. He's the executive director at the port of Long Beach. Still had on Bloomberg Business Week. We go from ships to cars and the US auto giant playing the long game when it comes to winning the race to the top

of the E V food chain. This is Bloomberg Broadcasting from the financial capital of the world, Bloomberg Eleven, trio in New York, to Washington, D C, Bloomberg to Boston, Bloomberg one, Oh six one, to San Francisco, Bloomberg nine, six to the country Sirius Xm, Channel One ninety and around the globe the Bloomberg business and Bloomberg radio DOT COM. This is Bloomberg Business Week with Carol Messer and Bloomberg

quick takes. Tim Stenovan on Bloomberg Radio. The iconic American automaker General Motors wants to be the tortoise, not the hair, in the great electric vehicle race. That's according to Bloomberg News. Detroit Bureau Chief David Welch the story in the business section of this week's issue of the magazine, and it's adapted from David's newly released book charging ahead. GM, Mary

Barra and the reinvention of an American icon. And the company is betting that a slew of e V models due next year will prove the wisdom of its deliberate pace. So Business Week editor Joe Webber, Carol and I asked David White. GM has trailed the competition despite being an early mover in the e V space. GM at its heart is a really pragmatic company and one thing people forget about Mary Barrow, because they see her as the first email CEO, is she's an engineer and her sidekick,

Mark Royce is also an engineer. So for the first time since the sixties the company is run by engineers. They don't go for buzz. They don't try to jam a battery in an existing vehicle to get on the cover of business week, although that lightning cover was really,

really well done by my tellings. They you know, they decide, okay, we're going to build a battery pack that can host everything from a little Chevy Equinox and actually even smaller they're working on subcompacts for global markets all the way up to this huge nine thousand pound Hummer and everything in between. And they're going to build their battery plants. So, other than Tesla, GM has the only battery plant making battery packs and sells. It's in Orangetown, Ohio. It's going

right now. The second one is going to open in Spring Hill, Tennessee, near the old Saturn plant, next year. Again, engineering mindset. Get your building blocks in place, get your plants up, then you spawn this huge family of evs. What your story really injes on is this ultium, which is the battery platform. So what is Jim Hoping to accomplish there and where does this potentially allow them to go? Right now they've got too luxury electric vehicles in production.

They've got the Big Hummer and they've got a cadillac lyric, and this is sort of historic. GM goes back to Alfredson. Start off with your coolest stuff in your luxury brands and then slowly got down the scale. And next year they'll have chevy silverado pickup, which the year behind, but we'll compete with the fine fifty lightning. Then they have the Chevy bloody midsize. That should be family car for a lot of people. Not Super Cheap but pretty cheap.

Then about this time next year the Chevy Equinox. The Equinox, now that no one buys families and dams anymore, equinox is really Chevy's family car. And they're going to start this thing at thirty thousand which, other than the bold, which again compact, are Americans still like complex, will be the cheapest on the market. And it really to me that is it's two things. It's really the fruit of

this whole Al team thing. They believe they've got the scale and the platform where they can democratize electric vehicles by bringing mass market family card to people who don't have three other four expensive vehicles in their garage. And the other thing is it really is a litmus test or how ready Middle America is to go with battery powered vehicles and charge up the secret sauce. Seems to be this ultimum about it, and you write that it's

really about changing the way cars are made. So what's different? Ultimate? Basically, it's a battery pack that makes up the floor of the vehicle. This is way over simplification of the guys and the factories. And you're not doing that because I'm a girl, are you? I am the daughter of an engineer, so you can. You can go with it. I'm doing it because assembly board, but you're basically bolting whatever vehicle it is on top of that skateboard kind of platform.

It's not quite a skateboard, but close enough, so you can and it's also sort of a Lego set. So if you need to build it longer or wider or shorter or whatever, you can do that. The other thing they can do, and this is what they've done with the Hummer, you can actually stack them on top of each other. So if you have a big, heavy vehicle that has a thousand horse power, which the Hummer does, so you need a lot of power on board, you can just add more battery, which we have more electricity

by stacking these cells on top of each other. She can have a big and wide and you can stack them up for more energy. There's just really is kind of like a Lego said, but this really is. This is commercializing electric the battery itself doesn't have any special chemistry or special sauce. It's a commercialization and an industrial plan and you know, always interesting. We also had this hurts knows that. Hurts is going to get into this. So so clearly to have the scale and bring the

cost down. You know hurts is liking what they see out of GM. But so how does how does that kind of fit into bars master plan here? GM's plan is to sell a million evs in the US and I think really the only one who would be probably doing that by then Tesla and some Manoa sta. GM could be ahead by then because dog fleet. But it gives them, it gives gm a lot of different vehicles and a lot of potential, a lot of production in

their for potential sales line. So hurts likes what they see because they're saying they're going to buy vehicles from five different GM brands, so Buick, Cadillac, Chevy, GMC and also bright drop, which is GM's commercial band business. And so clearly hurts seas enough that GM has got enough production in their plan where over the next five years they can buy a hundred and seventy five vs. that

was Bloomberg News. Detroy Bureau chief David Welch. David's new book charging ahead GM, Mary Barra and the reinvention of an American icon is out now. Jill Leber there with us as well, and we should note that David helped to break the news from this past week that hurts plans to buy as many as one seventy thousand evs from General Motors over the next five years. So a big win for GM on that front. You're listening to

Bloomberg Business Week. Up next the story about China's Communist Party is building a new kind of political control and shaping the will of the people through the sophisticated and often brutal harnessing of data. This is Bloomberg Business Week on Bloomberg radio. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovik from Bloomberg radio.

Last week's Business Week cover story profile a Chinese spy who wanted general electrics trade secrets, and he ended up giving the U S Intel on China instead. We know espionage and the surveillance of other countries or nothing new, but when it comes to domestic surveillance, China is taking the practice to an entirely new level. Wall Street Journal Reporters Josh Chen and Liza Lynn are out with a new book surveillance state, inside China's quest to launch a

new era of social control. Carol and I began our conversation by asking Josh about the situation on the ground for the average citizen in the People's Republic. If you're walking down the street in China, especially these days with Covid, you're being you're being tracked in any number of ways. There are cameras with, you know, facial recognition capabilities that can they can pick your face out of a crowd. Cameras can can identify you by the way you walk.

There are microphones that can grab your voice and these days, you know, everyone's walking around with a covid health tracking APP in their pocket that tracks where they've been and how they've been exposed, whether their their level of exposure to uh to covid. A lot of things being tracked and, Lisa, both you and Josh like kind of cover this world

and the different aspects of the book. I want to get into what was the story and the reality that you were looking to tell in terms of the area that that you really cover, and you cover a lot of US business and Chinese topics. You look at Silicon Valley. So what is it that you wanted to tell when you guys set out to do this book together? Yeah,

on on my part, you know. Um, I guess I didn't set out to tell this, but in the process of research I had some really interesting findings and one of the findings was really how you know, US tech companies, particularly those in Silicon Valley, pioneers, such as like Sun

Microsystems and Cisco. They were one of the first building blocks of the Chinese surveillance stage back in like the year two thousand, when China helped one of its first security public security expos and the police was there to basically look at what companies had on offer. Like it was mainly Western companies that were selling the systems there

to them. I guess, to kind of summarize like how impactful, like some of the U s companies were, like Sun Microsystems, ended up selling China it's first fingerprint database, which is a sizable project for a country the size of China.

Fast forward to today. Um, what Josh and I did was we poured through several Chinese government contracts, particularly those looking at the surveillance systems bought by police, and what we realized was U s companies now weren't selling systems, but they were selling components, like part that built the

surveillance day. There was selling everything from low end hardware like heart described, because video surveillance requires a lot of storage, to things like cutting edge chips, you know graphic processing units sold by nvidia gpus, which originally were built to power like gaming, but actually we found that they're great for deep learning and all the ai applications, like facial recognition, for example, that can recognize like readers or people interests

in China. So the limits right that the US has been imposing on the likes of Nvidian a m D to prevent them from selling into China, Lisa. So this is something that could ultimately impact China's ability in terms of surveillance of those folks that are in the country. Yes, Um, in theory, you know, the supply chain is very opaque. Um that there are all sorts of ways and means that Chinese companies can get around like being on a trade black list, for example, or, you know, buying restrictions.

And I'll probably point you to an example of a Chinese company called since time. Since time is China's large as AI surveillance company and since time it's both on the entity list, the Commerce Department trade blacklist, and it is on the investment black list. So US investors cannot legally, they're not allowed to be trading on investing in sense

time shares. What we know, though, from the start of this year, when since time tried to list in Hong Kong, they actually told investors like they weren't impacted by the entity list at all, and that was because, since times, when since time was put on the entity list, it was one it was one entity. It was its paging

entity that was put on the list. So since time has multiple entities in like Shanghai, Um Hong Kong, and these entities were free to buy the type of high end US technology that the entity list was supposed to block. And in addition to that, when since time tried to I P O, since time it's a company that has a ton of US investors making up its investor base, like people like fidelity capital, Silver Lake. When the when they were put on the investment blacklist again, there was

a legal loophole. Essentially, the entity that was put on the investment blacklist with the Hong Kong entity and the entity listed in Hong Kong was a Cayman Islands one. So true, very smart maneuvering of where the entities a base. They managed to get get true um or get over get around these restrictions. These are Lyne China correspondent for the Wall Street Journal, who joins us on the phone from New York, and also Josh Chen, deputy China Bureau chief,

on the phone from Park City, Utah. Hey, Josh, I want to get into how this is all playing out in Shinjang, which a remote Asia frontier, of course, where we know that the country is oppressing the weaker population. What does it look like they're j John, is that it's a massive, massive area about twice the size of

Texas or northwestern and very rich in resources. Um and has also long been a sort of typical place for the Communist Party to control, and that's because it has a large population of weakers and other Turkic Muslims who really chafe at Chinese rule and so Um. You know, for about the past five years or so the Communist Party has been running what you know, what is best described as a sort of campaign of forcible assimilation, using

surveillance technology and a network of internment camps. Um, and I first went there discovered some of this in seventeen Um. At the time, no one really knew what was happening there. Um, and you know I mean that's been a China correspondent at that point for for more than a decade. And Uh, and what I saw that was just one of the most shocking things that I've seen in China. And you know, essentially, if you were a weaker Um in Sxinjiang, you are

subject to constant, pervasive, um suffocating surveillance. Right. So, if you go to a bank or a market or a hotel, any public place, you have to scan your face and your ID card. If you want to buy gasoline, you have to make everyone get out of the car again, stand your face and I d cards so they can

track how much gasoline you're buying in one place. If you want to buy a knife, they would they would take your I d information, all of your your home address and they would laser etch it into the knife in the form of a Qr Code. Uh. And then we collect date on things like how often you pray, you know, how far you go to the mosque? Do you own a Kuran? Um, what sort of movies and

music and Apps do you have on your phone? And they sent you collect all of this data to track and then sort weakers according to how much of a risk they might potentially pose to the Communist Party's rule in the future. Um, and then those, you know, those who are considered risky, are sent to camps to be subject to re education. Um, and so it really is a pervasive, just sort of unprecedented campaign that they're running

out there. We are in this really critical phase of major disruption innovation that we don't see off in our world, and maybe that's explaining also some of the kind of discomfort within the financial markets overall. But I do wonder about, you know, what is the next phase for China? Present, G very much out there front and center, you know, wants to lead on higher tech. Doesn't seem to care who he maybe ticks off in particular, something like the United States and the process. But I mean it's a

complicated relationship between the two. But I do wonder, you know, what is the next phase of China, one that obviously will surveil its population very closely. I mean, Josh, how do you see it? How do we need to think about China going forward, when many people, feel like investors included, will say that's going to be one of the big macro themes overall for the world, geo politically, market wise, economically,

what's happening in China? I think you're already seeing sort of the future of China with the with the covid pandemic Um, you know, with essentially you know in the past kind of that that pervasive, applicating surveillance was pretty much limited to Shinja. Now, with the COVID pandemic, that those systems and those those approaches and those technologies have

all spread to basically covered the entirety of China. Um, and it's clear that Jent Ping is willing and able to use those technologies to exert a tremendous amount of social control, very tight control. Earlier this year you had you had the Shanghai lockdown, for example. You know, the wealthiest in China not used to not used to experiencing

this sort of thing Um, and they were outraged. But you know, the Communist Party has persisted with Zero Covid and I think that's partly because they're confident that these new tools give them the ability to control the situation and the economy of society in China in ways that they haven't before. Still is a con in and layer on top of what Josh said. I mean, how do you, how does the world kind of need to think about China in the next I don't know, ten fifty years?

This is already happening. We're not going to have to wait ten or twenty years to see this happen. I would put it this way. In in the past two decades, US and Western companies have had very blind optimism on the operating in the Chinese market. Right. So, ten twenty years ago, China was seen as this easy place or profit. Commercial priorities overshadow any sort of deep thinking about the

possible human rights abuses that could happen. In the boardrooms you'd be hearing people talk about how far you could expand in China, what was the best way to get your product out in the market? In the last five years we've actually seen more like a paradigm shift in the way US companies are approaching China. We're seen in the last few years more and more reporting about the atrocities and seeing jail and now that the US government is actually trying to react to China's human rights issues

with like trade policy, not just foreign foreign policy. We're definitely seeing US companies become more cautious about the risk and less bushy, mush tailed and starry eyed about the potential of China. Are thanks to Josh Chen and Lesa Lynn of the Wall Street Journal. Check out their new book surveillance state, inside China's quest to launch a new era of social control. And that wraps up the first hour of the weekend edition of Bloomberg Business Week from

Bloomberg radio. I'm Tim Stanovic. Ahead in our next hour a dispatch from the Earth Shot Prize Innovation Summit. We hear from the Executive Chairman of Fortescue on the company's multibillion dollar decision to move away from fossil fuels. Plus, our Business Week team reveals its annual ranking of the world's best business schools, and our cover story on the stunning success of Apple's tiniest accessory. 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. Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg radio. Plenty ahead in our second hour of the weekend edition of Bloomberg Business Week, including our cup a story on the sneaky genius of Athol's Airpod's empire, plus

key conversations from the Earth Shot Prize Innovation Summit. FORTESCUS executive chairman explains the massive investment being made into decarbonizing the miners iron ore operations, and the CEO of the Earth Shot Prize tells us how innovation can affect climate change. First up this hour. It's at that time of the year again, Bloomberg Business Week unveiling its annual ranking of

the world's top NBA programs. Bloomberg Business Week Senior Editor Dimitro Cassinidis joined Carol and me to discuss the best b schools and, of course, reveal the top program drumroll please. Stanford is the number one school year second. Wait, this is not last year, this is two. Stanford has been the number one school for a few years running now, so no surprise. You know it's got a lot going for it. That is very much about what people are

looking for today. The classic industry draws, the proximity to the tech industry, very strong programs, very entrepreneurial programs. On every point it's really hitting the marks. So it's doing great. And then tie for second place, She University of Chicago and Harvard UH and the top five get rounded out with northwestern and Dartmouth. How often does like the top

five kind of stay the same? I mean I would say that it stays the same for a few years running, with some minor shifts among, you know, among the schools. This year, the top ten, we're all the same schools. Is last year one or two went down one, one or two one up one. You know, that's what you're

dealing with. There are also very minor differences, I want to say, at those levels in this ranking, like even though your number one or number two or number five, the points that are separating you from that next school are small and few unless it's one between number one and numbers two, three, four and five. Right, that is always very far ahead of well, that's what's so interesting. Eight.

Eight is the score that Stanford got. Um, I'm wondering, when it came to diversity, what the this looks like, because, you know, you click on that. And, by the way, this is the type of thing to go check out on Bloomberg DOT COM or look at it on the Bloomberg terminal, because it's a great interactive feature here. It's so funny because our producer would be like, should we put off the story? And that's what we said. It's so interactive because you really want to go online with it.

Exactly it is. Um, I think they've I just want to say first, not the one. There's a huge team behind this and the real people who are actually doing this, with the ones compiling, you know, looking at the data and building these amazing interactive tools. So definitely go to Bloomberg dot com, slash business hyphen schools, and you will

have an incredible experience. But diversity, yeah, well, it's you know, and Deversity is measured in different ways here and you can you can actually filter it in different ways here. But what does the rank look like when it comes to diversity? Well, you know, I mean I would say

it's it's uh, it's mixed. So we're looking at diversity in terms of gender diversity and then breakdowns with Um, black students and Hispanic students, and we say this in our overview, to the schools have and if there's one area where, you know, we feel like there's a little bit of work to be done, it's in working towards that parody. So parody is when you're trying to sort of reach relative equality among certain groups. You have seven

schools only where there was gender parody. That was met this year, eleven where black students had parody with, you know, other groups, and Um, eight schools for Hispanics. So it's it's not really you know, there's a ways to go and I think in some ways now we're starting to talk about how b schools, you know, are they not

even reflective of what's happening out in the world? There's so much talk and pressure, you know, e. s, G. Equality, diversity, Um, in the ranks of the C suites, and so that pressure, I think, is trickling over to the schools now to ensure that they are focused on getting those numbers up there. I am curious about the pandemic, as it was tricky right, obviously, the pandemic. Anybody in Academian and how that has at all impacted rankings or how you guys are looking at

the different schools in the program I don't think. I don't know that they've meaningfully affected the rankings, especially this year. We did come back with the rankings after a year off. Last year. Right one for but I think the pandemic has affected a lot of things on campus as we're talking to people, hearing about the priorities of students, the interests that are starting to emerge career wise, the classics are always there, UH, consulting, finance, technology, but now e

S G is a big one. Climate change is a big one. Um The pandemic and being home and experiencing life for two years in very different ways has focused people on different things. Interest in certain healthcare careers and how we're going to move forward from this age of Covid Um, maybe other pandemics, and what kind of opportunities are out there. I also think it's really focused the schools and the students on how they teach and how

they learn. So everybody values in person. I don't think that's ever going away, but now people know that flexibility is possible and there are really many different ways that you can fashion how learning is going to happen. When you say in person too, and I know we have to wrap up, and I do highly recommend people go online because it's just so cool to kind of click through the different schools and get their rankings and just

break it down so many different ways. But I do think in school, especially when you think about business schools, so much of it is outside entrepreneurs, successful entrepreneurs, business people who come into to speak and you get facetime Tim you know at firsthand when you're up at Columbia how important that is. That was Bloomberg Business Week senior editor Demitra a CASSIDI's on the top of business schools. Go online to Bloomberg dot com slash business week, where

you can check out the full ranking. Coming up next we'll take you to the Earth Shot Prize Innovation Summit and learn about an ambitious renewable energy goal announced by one of the world's top producers of iron ore. We're not moving away or curbing, where stopping all fossil fuel use.

I've been up to my site. So I've said to my major rights of these huge industrial sites says, ok, I'm coming up in and I'm going to switch off the diesel, I'm gonna switch off the oil and gas labor and if you guys do not have plans where I can keep them off, I'm probably gonna shut you down. Fortescue medals founder and Executive Chairman, Dr Andrew Forrest, joins us on the other side. He'll explain why now and how much the initiative is going to cost. You're listening

to Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovan from Bloomberg radio. Bloomberg News reported this past week that fortescue medals group will spend more than six billion dollars over the next decade to decarbonize it's iron ore operations. Carol and I were in attendance at the Earth Shot Prize innovations sime it held in New York's Plaza Hotel

on Wednesday. The event is geared towards spotlighting climate innovations to address the world's most pressing environmental challenges, and we had the chance to speak with Ford excuse founder and Executive Chairman, Dr Andrew Forrest, about the Australian miners pricey pivot toward renewable energy. So we're not moving away or curbing, where stopping all fossil fuel use. I've been up to

my site. So I've said to my major operators of these huge industrial sites, says will come coming up in and I'm going to switch off the diesel, I'm gonna switch off the oil and gas lever and if you guys do not have plans where I can keep them off, I'm probably going to shut you down. And they've come up with these most brilliant, practical plans because they're now part of the problem and they're fourth part of the solution.

And for six point two billion we can step beyond fossil fuel and return almost to billion dollars a year to share holders. It's got to be a good investment, right, all right. So help me out, Andrew. Why Now? Because we have the technology now. I mean, I'm an investor in breakthrough energy. I'm invested in this, in that. But why wait? I mean, everyone's sticking around waiting. The planet,

I promise you, is cooking. I'm a ecologist. What's happening in the oceans is way worse than what's happening on land. But it's blowing up on a soil on land. You know, the youth across the world can see it. Carbon credits, fuel, everything's getting way more expensive. Yet renewable energy is free, okay, and it's infinite. Why wait? It's it's not always free and infinite, though. It's not infinite in the sense of okay, well, if you're using solar, there's SNA time, if using wind,

there are ideas that are not windy. And if you're using hydro power, but there are sometimes that water levels. So how are your accounting from? You've heard of fossil fuel, right. They spend so much time pumping their gas down into these salt domes so they can draw it out later. We're not a lot different. I mean we don't have to throw it down for months. We'll have batteries. We have pumped Hydra, you know, water, up to the top of the hill in the day and run it down

at night. We have gravitational energy which runs these trades of ours. We've got the biggest heaviest trains on earth, right, five kilometer trains. They take forty tons of vinyl on their backs down to sea level. It's more than enough parabolical gravity energy than you'll ever need to send that train back up the hill and you how much of it is also though, in terms of the timing. What's

going on in terms of the macro environment? Obviously we're all talking a lot more about energy and the energy crisis that we're seeing over in Europe, specifically because of the Russian invasion in Ukraine. Everybody all of a sudden is putting their foot on the gas pedal when it comes to alternative energy. It's been there and yet the ramp up has taken longer. You talk about the technology being there, but how much of the macro forces are

also use? I'm seeing a ramp up the talk. I'm saying hang a ramp up a panic, and there should be, because we've never had a drying event this year around the world, not in the last hundred years in history, record temperatures in history. So there's a sense of panic now. But we are reacting to what is great for our shareholders. Six point two billion in one off, nearly a billion out, twenty million out every single year forever, and it does not take into account the three billion we earned on

the way through. So we're gonna build this thing up in the next several years, not in ten years, next several years. On the way through we start saving money. We saved eighty million last year. On the way through we will save a further three billion dollars. You take that three billion off the six point two. You don't have quite ray to return anymore. You have six rate to return. That kind of beats Warren Buffett's miracle of

nine percent. Right, and we're greed. So it's a business decision or business and you're also just looking at the environment. I am an ecologist, I am a scientist. Yes, I'm a business person, but my shareholders will not tolerate filanthby for a business. You do filanthy your dividends, Andrews, but our business must make money. This is a fabulous business decision. So do the other miners, the real tenders of the world, and more do they follow your lead? Look, they're good guys.

I've been in touch with the chief executives all the big miners. What have they told you? And I've said how you do? Please tell us. Would you share? So, of course we'll have full present full how to presentations. You get your senior leadership, I'll get my senior leadership. Will break down, dollar by dollar, piece by piece, time in the full by time and of all, how we are doing, not will do it. Are Doing. Are there

any obstacles that will come into play? At this point you've already worked it all out, because they do think about as people transition it's not always so fluid and smooth because there is such an establishment out there and push look, I think because it has not been done before, there's another company in the heavy manufacturing, heavy industry world that has done it. So I need the disbelief to

go away. I mean we started as a timely little company and we challenged the biggest industry and the resources world, which is iron know, it's like a closed shot, totally protected. Now we've busted it open, where one of the biggest players in the world two under billion tons a year. That's not chopped liver right spread around the world. Now we're taking that huge manufacturing center and stopping it using any fossil fuel and people are saying, yeah, if you

can do it, wise in everyone. Well, that's the question. Don't question that. We can do it. Question why isn't everyone else? Well, not everyone else has a background as in a college. That's part of it perhaps, but I also wonder if you can take us more into your thinking behind this, because you know, I spoke years ago and you were on the forefront of thinking about the

environmental concerns when it comes to mining. But something that I've been thinking about is, and I mean this with all due respect, if there's any sort of like a tournament that you're thinking about here, because, with all due respect, mining is is something that is not coherent. Okay, well, unfortunately, if we were to stop mining, we wouldn't be sitting here, this building, wouldn't exist, you know, everything would stop. So we have to do mining. Mining is not the problem.

How we minded. That's the problem. We have to mind brain, we have to mind zero emissions. The mining industry can step beyond fossil fuel. Now I have a sense of a tonement to my kids and to everybody because I'm part of a fossil fuel era. But I don't put coal in my iron. All My product has zero carbon in it. There's nothing in it. So if I can persuade my customers to put hydrogen, not coal, in it, then I'm super happy. But I haven't exported carbon. Ok,

that's not my business. I've exported iron and then carbon goes into the iron. I want to stop that. I want to La Saint to all my customers. We're gonna give you green iron first time in your lot. You've got green iron ore. Replace the call with hydrogen and you've got grain steele. That was fortescue founder and Executive Chairman, Dr Andrew Forrest. We'll have more from the Earth Shot Prize Innovation Summit just a little bit later in the

program you're listening to Bloomberg Business Week. Coming up next. The world's biggest company in terms of market cap is just raking in the cash on its smallest accessory. Our

cover story looks at the genius of Apple's airpods. This is Bloomberg Broadcasting from the financial capital of the world, Bloomberg Eleven, Rio in New York, to Washington D C, Bloomberg to Boston, Bloomberg one, Oh six, one to San Francisco, Bloomberg Nine, to the country Sirius Xm Chamber one nine and around the globe the Bloomberg business in Bloomberg radio DOT COM. This is Bloomberg Business Week with Carol Messer

and Bloomberg quick takes, Tim Stinovian on Bloomberg radio. For anybody scoffing at the idea of buying Apple's forthcoming augmented in virtual reality goggles. Just remember that the company has already enjoyed a massive windfallen items that had been similarly overlooked in their early days on the market. This week's Bloomberg Business Week cover story looks at perhaps the quietest smash hit of the Tim Cook era. We're talking about

air pods. For more on how a cooking company turned a lost leader into a cash machine, Bloomberg new senior markets reporter Katie Graidfeld and I turned to magazine columnist Max Chafkin and the editor of business week, Joel Weber. It's actually just an amazing success story, and when Max first started talking about this, it was like, you know, we we might not be able to break out the revenue on its own because of how apple kind of does its numbers, but like wow, if air pods were

its own company, it would be massive. How massive, Max? So yeah, as you said, Joel, that apple like considers air pods to be so irrelevant that it doesn't doesn't report this, but when you look at third party estimates, we're talking about probably twenty million or so pairs sold last year. That works out to, you know, roughly twenty billion dollars. So if air pods were its own company, you know, would be, you know, one of the large

companies in America. But and the fact that it's considered to be this kind of sideline thing is partly just a testament to apple's, you know, utter dominance. Does Tim Cook get enough credit for this, because you write in here, and I love this line, that basically critics are saying

that he's been managing the extremely lucrative decline of Apple. Well, I would argue that in general people are too you know, don't give enough credit to him cook, because I mean, obviously the market cap has gone up, you know, dramatically over over the last ten years. Um, there have been all these successes. Each time the apple does something, everyone makes fun of it. You know, we had that with

the way, we had that with beats. Um, we even had that with airpods where, Um, you know, the big story was how dumb they looked, and they do look dumb. On the other hand, they're they've been very successful. Okay, I'm sorry. Speaking of things that looked dumb, Google glass. Did I hold on? I'm sorry, no offense, Google glass. I remember when these things came out, okay, like a decade ago, and there's this great picture of mark injuries and wearing them because they raised this fund at injurase

in horror. What's totally focused on Google glass. Here we are, a decade later. We're all walking around wearing Google oh no, we're not. We're not all walking around wearing google glass. But the reason I'm bringing this up is because this is what your story is also about. Max. It's like, what are VR ambitions for apple and what can air

pods tell us about those? Well, I do think that if Google had tried to do what apple do with air pods, it wouldn't have been a successful and one of the reasons it was successful is both because apple is really good at marketing stuff, but also because it has this ecosystem and they effectively have locked, you know, hundreds of more than a hundred million people into this, into their system, so that once you're once you've got an eye phone, once your family has an iphone, it

becomes very hard to leave it. And I think we can see a similar dynamic with the VR headset. I mean, I think we're it's for sure that people will be disappointed when that thing comes out. Um. But but we've seen that over and over again with Tim Cook's Apple, where people the watch was kind of mocked. Air Pods are kind of mocked and I'm guessing this one will be too. And yet, like, insofar as VR is a category which people could debate, I think, if it is

a category, will be significant for Apple. Okay, so this category, that air pods, is part of wearables, home and accessories, fastest growing line of business. One reason for that might be because you know what happens when you lose your air pod, Max. What do you have to do? Well, as I've written the story, I've had three pairs of air pods. I don't even really like them, but I just keep buying them because, you know, they break or

they fall out. And even this morning I was I was, you know, riding the train to work and one fell out and I did not notice that had fallen out. And and so that's another seventy. Yeah, actually ordered that on you. He said, a little vibration uh to Um. So within that category. Just talked to us about why that category has been growing so fast. Well, it's really it's it's two products. It's the Apple Watch, Um and it's and it's air pods and air pods about half

of it. The Watch is a pretty significant chunk as well. Um and, and I do think it's kind of weird. Wall Street loves to to create this diconomy between services and products. That's that's such economy that apple likes, because services are growing very fast and they're very profitable. But it's not totally clear to me why you would consider, for instance, iicloud a separate business when when really what it is is like an add on thing you buy

with your iphone. Your iphone doesn't work without it, and I think in a lot of cases like these businesses have sort of merged where where they're all just sort of part of this overall iphone subscription that we're all paying, you know, close to a thousand dollars a year. Four that business week columnist Max Chafkin, along with the editor of the magazine, Joe Webber, on this week's cover story.

Katie Kraffeld with us there as well. You're listening to Bloomberg Business Week coming up, we're turning our attention back to the environment and the groundbreaking innovations being funded to help mitigate the threat of climate change. Carol Masser goes one on one with Hannah Jones, CEO of the Earth Shot Prize. Next this is Bloomberg. To protect his family from disaster, Steve used his camera phone by taking pictures of its important documents. Steve can always set them stored online.

Learn more simple disaster prep tips at ready DOT Gov. a message from female in the Idcount you're listening to Bloomberg Business Week with Carol Masser and Bloomberg. Quick Takes Tim stinovy from Bloomberg radio. This past Wednesday, Carol Masser and I broadcast our daily Business Week Program from the

first ever Earth Shot Prize Innovation Summit. The event was hosted by Michael R Bloomberg, the founder and owner of Bloomberg LP, the parent company of Bloomberg Radio, and the U N Secretary General's special envoy on climate ambition and solutions. The summit brought together heads of state, government and civil society leaders, philanthropists, business executives and grassroot climate activists from around the world. They spotlighted emerging innovations that are needed

to address the world's most pressing environmental challenges. His Royal Highness Prince William is the driving force behind the Earth shot program he delivered remarks remotely due to the recent passing of his grandmother, Queen Elizabeth the second. Just as President John F Kennedy so famously said as he challenged the United States of America to unite behind the goal of putting man on the moon, we choose to do these things not because they are easy, but because they

are hard. I know that the world is an uncertain place right now that many families and communities across the globe are facing unimaginable challenge us, from conflicts to energy crisis and food shortages. While addressing these in the short term, we must also remain resolutely focused on tackling the greatest challenges that threatened or tomorrow. The Earth Shot Prize awarded its first five prizes of one million pounds each last year.

It aims to recognize individuals with solutions for tackling the world's most pressing climate related problems or earth shots. With more on the work that the team is doing, carol cut up with Earth Shot Prize CEO Hannah Jones at the summit. The energy, by the way, in these places off the charts, which is exactly what we need. This week. We need urgent optimism and we need people feeling totally energized by the possibility. And that really takes me back

to our founder, Prince William P um. He founded the earth shot prize after having two insights. He was in a conservation project that was really successful in Namibia, but he felt terribly frustrated that this successful solution wasn't going to scale, it wasn't going to be replicated around the world. And yet it was helping poachers become conservationists, it was changing the entire landscape. So why wasn't anyone scaling it?

The second insight was that the dialogue at the time back in t was so full of fear and anger that he was worried that we wouldn't get to action and change if we didn't inject optimism into the conversation. So we married those two insights and he created the Earth Shot Prize. And the Earth Shot Prize is meant to be a beacon for urgent optimism and putting the spotlight on solutions that, if scaled, could repair and regenerate the planet. And you've got five different categories. Checking me

a little bit about we do. So we did a lot of research into how we should do this and we've set up five earth shot challenges. One is oceans, which, by the way, I'm so in love with the innovation happening in oceans. One is in biodiversity, one is around waist cleaner and climate change, and if you think about it, all of those things are the things that we need to see repaired and restored and regenerated for the Earth

to be livable, equitable sustainable. So we award one million pounds each to a winner in each of the categories each year. But Prince William is very clear with us the team. We're going to have fifteen finalists as a whole and they are our family and we are here to support them all, irrespective of who ultimately wins the big money, and we see the money as catalytic. So we have this incredible partnership and collective of partners, of

which Bloomberg Philanthropy's is obviously a key one. And so when we bring the finalists out into the spotlight, we're also looking at how we can give them access to talent, access to advice, access to networks of power and ultimately to blended capital, because we want them to go from being a great working prototype that, if they were scaled, could make a huge impact. Let's do that fast, everybody.

You know what was interesting too, as you guys reached out around the globe right people renominating a lot that you had to go through. What was it that made somebody stand out that you said, I want these people to be a finalist and an ultimately, a winner? It's a great question and it's the hardest part of our job. We have a price council that are made up of

some incredible people. Christianity forget is we have Hindu Ibrahim, we have Sir David Attenborough, the prince, the list goes on, Queen Bran, and they have to actually get to a place where they have to make the final five. Let me tell you, this is a terrible conversation. But before there we have a very rigorous process. So we have official nominators that bring in nominations every year and from that we're looking for, first of all, are these diverse?

Do they represent really all of the countries in the world? Do they bring women to the four? Do they bring indigenous communities to the four? How do we make sure that we have representation? Secondly, I think do they have a potential to make an impact? So right now they're working prototype, but how are they going to impact? If they went to scale, carbon or biodiversity or sustainable livelihood creation, how will they make an impact and do we see

a pathway to helping them? And if so, they get to the next stage, which is how can they inspire the world? And really that's a very complicated process. We have technical experts we really bring in. We have an ex external group that helps us, Deloitte, so that we make sure it's fair, objective and consistently. We wanted to ask you is I do feel like there's a lot of momentum, certainly the investment world when it comes to the E S G space. Right a lot of money

going into sustainability environment. Um. What is it that set to you guys, apart with what you're doing at Earth Shot? Well, you know, there's not a day when I don't meet with a philanthropist or a VC, with an e s g fund or an impact investor and after an initial conversation they look at me and say, can I tell you a secret? Could you be ideal pipeline? I don't have enough things that I know what to invest in interesting.

Now we are sitting on this incredible we've got already over two thousand nominations just in eighteen months and we're vetting, you know, to get through a different stage. We're looking at them and we're saying, but how can we match make? How can we match make er ECO innovators with blended capitals? Talking to some of your finalists, they say there's a lot of things having a seen at the table, but capital. It's crucial for scale with ability. Imagine that you are

any one of these finalists or innovators. You're not walking down Sands Hill road and bumping into a VC every day. Right. You're living in Nigeria thinking of how you do a low cost solar leasing program to help people in the local slums to have access to green electricity. But you need funding, but you have no access to those networks of privilege. Prince William was very clear. I want to use my privilege and my platform to convene and make

that funding conversation happening faster. But having worked so much with entrepreneurs, what I'll also tell you this. When you go on that journey from being a prototype to being scale, you don't just need money, right. You need advice, you need to support, you need compassion and kindness, you need leadership training, storytelling training. So that's something that we're also

really supporting and our Global Alliance of partners. They're not just putting capital and they're putting staff in, they're putting expertise in their opening up their supply chains, you know. And what's interesting is, you know, when we think about the world capitals and entrepreneurs, they're are doing some really cool things, but we're talking literally about saving the world, saving the planet, Earth Shot. We talk about moon shots right,

like doing the unthinkable. This is about existence for everyone, and that's where you talk about oceans and earth and energy. I mean, this is what we're talking about. It is and you know, one of the things to think about is this is the sixtieth anniversary of the Moon Shot and Prince William was really influenced by President Kennedy's Moonshot challenge to the American people because it did two things.

He didn't just challenge them to land a man on the moon and bring them home safely when we knew none of the answers to how to do that. What actually happened was it unleashed a wave of innovation that shaped economic and social progress and, maybe more importantly, he unleashed a new mindset in the American people, which was we can turn the seemingly impossible possible. We have to make this be a short decade and we have to unleash that mindset again. We have innovation all over the

world happening. We've got to believe we can do this and change the trajectory of the planet, and it will take all of us. That was Hannah Jones. She's chief executive officer at the Earth Shot Prize. She spoke with Carol at the Earth Shot Prize Innovation Summit this past Wednesday. The event was hosted by Michael R Bloomberg, the founder and owner of Bloomberg LP, the parent company of Bloomberg Radio, and the U N Secretary General's special envoy on climate

ambition and solutions. The summit brought together heads of state, government and civil society, Les Philanthropists, business executives and grassroot climate activists from around the world. They spotlighted emerging innovations that are needed to address the world's most pressing environmental challenges. And that wraps up the weekend. Edition of Bloomberg Business Week from Bloomberg radio. Thanks so much for joining us. I'm Tim Stanovik. Carol Masser will be back with US

next week. Be sure to tune into Bloomberg Business Week. It's Monday through Friday. It starts at two 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 podcast. You can 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 and on the Bloomberg terminal, and 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. This is Bloomberg. What is dedication? The thing that drives me every day as a dad is dairy on him.

We call him UH data. For sure. Every day he's hungry for something, whether it's attention, affection, knowledge, and there's this huge responsibility in making sure that when he's no longer under my wing, that he's a good person. I think the advice I would give is you don't need to know all the answers. The craziest thing was believing that your dad knew everything. So as a dad, you felt like you had to know everything, you had to get everything right. It's okay to make mistakes as long

as it's coming from love. Then you know it kind of starts to work itself out. I want him to be able to sit back one day and go we worked together, we did a good job. That's dedication. Find out more at Fatherhood Dot Gov. brought to you by the U S Department of Health and Human Services and the Ad Council.