Goldman CEO’s Year of Empty Offices

or Bloomberg dot Com. You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio, or watch us on YouTube search Bloomberg Global News. I want to get right to our next guest. Mike al Qaire is with US, president and CEO of the healthcare improvement and supply chain company. It trades on the NASDAC it's called Premier, and he is back with us on the phone from Dallas. Mike, nice to have you back with us. You guys are front and center when it

comes to the healthcare and COVID supply chain. What does it look like right now? And first of all, how are you do you have? Mike? Uh No, So okay, We've got you. How are you hey? Good? Carol and Tim, thanks for having me back. So just a quick update on the vaccine distribution numbers. UM. Right now, we're doing about two point three million vaccines per day. That compares to about five forty thousand, uh the first six weeks

of the pandemic, So we're catching up. I think the most important part that number is that we're on track to exceed the Biden's administration goal of hitting hundred and fifty million vaccinations in the first hundred days. That goal was a little low though, right Well, I you know, it's interesting. I think when people were thinking about when he said it, it seemed a little bit high, but and seemed aspirational. But I will tell you today, uh, we seem to be attract to surpasses. What about when

it comes to Ppe? Right now, the story, if we think back to a year ago, was do not buy masks if you're a consumer, not just because you need trees are of them for healthcare professionals and there was a worldwide shortage, but also because we didn't know that this was the type of thing that was so easily transmittable through breathing. Where are we when it comes to Ppe, not just for for us but for healthcare professionals right now,

what does the supply chain look like? Yeah, I just I guess the first thing we've learned with this whole issue with COVID as it relates to PE, is that we've got to diverse supply our portfolio manufacturing, just like you would hedge against risk if you've had an investment portfolio and there was such an overdependence on China and

other Southeast Asian organizations or countries. Um. And I think that you know today where we are premiers taking steps along with a number of others, to try to create more resiliency in that supply chain, where we've made investments along with our healthcare systems and the domestic production of face mask, made investments in the production of isolation gown uh.

And we're also doing similar stuff with exam gloves and generic drugs because we think that obviously those uh uh, these supply chains are have a lack of resiliency to them, So we want to create a bit more resiliency and obviously create more diversification the supply chains. Yeah, how easy is that to do, especially when it's you know, we've all kind of farmed everything out too in many ways,

a lot of emerging markets. So it's a great question. Look, we've been talking about this for the last ten years. It's been a significant issue on our minds, um and and it's tougher now obviously to do it. But we were able very very quickly to stand up exam glove or I'm sorry, face masks and is inflation gowns. We have a partner that's going to be able to stand up exam gloves probably domestically in the next eighteen months.

I'll pull you while. While it's difficult, we have to do it because, uh in, the only economy that crew was China at six point five, and the US economy shrank during the pandemic at almost four. So I think that there's been this great shift of wealth from the U s to obviously to China, and we've got to rectify that by creating a more resilient supply chain. Easier said than done, though it's absolute. The inswards have been done,

but we've got to start the hard work now. And by the way, I heard a little bit of your interview at the prior folks on what the administration is doing from you know, really one of the next steps they're thinking about through taxes and those kinds of things. I think the administration has to be a lot more proactive to supporting domestic manufacturing of a lot of these critical items as well making it more more friendly to

actually manufacture. Here in the stage, so Mike, safe to say, just got twenty five seconds left here, you would be opposed to increasing the corporate tax rate. You know, I'm going to stay out of the corporate tax rate. But what I what I would like to say is that we are very interested in the administration of making it more friendly for domestic bottom understood. Hey, Mike, listen, thank you so much and for going with the flow today, especially as we had to step into the President for

his update on the COVID relief package. Alright, Mike, thank you so much. Mikelaer, he's president and chief executive officer at Premiere on the phone in Dallas. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. So right now, the current issue of Bloomberg Business Week features a deep dive into equality. It's all part of our enhanced and you know, kind of a reset we're doing on our equality vertical here

at Bloomberg. It also coincides with the Bloomberg Ee Quality Summit, UH this week. We've covered several of the stories in the magazine on our air in the past week or so, but one more we wanted to bring you, and this tim is about the new data that exposes precisely how white and male some US companies are. It's an interactive feature, so I highly encourage you to check it out on the website when you are done listening to us. Joel Webber is editor of Bloomberg Business Week. Jeff Green is

Managing Diversity reporter at Bloomberg News. Joel, talk a little bit about the presentation of this because that is a big part of the story here. Yeah, and and to be clear, the magazine and and me, which is a very little credit for this poet. Same with we. We we tried to make the team tried to make the interactive be you know, the glory here and and we were able to take a slice of this and bring it into print because we thought it was such an

important topic. Um. And that is really like the heart of this thing was to actually like look at corporate America and and it does as you would expect. It is very white. But to actually be Bloomberg and put data behind that and actually attempt to show progress was really what the this project was all about. So so Jeff talked to us about how you went about getting this data, what it revealed, and what you're starting to

watch as this is an ongoing project. Yeah, I mean, I think the really really key thing here is that when we first did this last year, companies were agreeing to show us this stata, which is not required to be released publicly. In fact, the Supreme Court has made it very clear they can't be compelled to do it,

so it has to be voluntary. And so in this time around we have thirty seven with another thirty promising yet this year to show so the among the SMP one hundred, the hundred largest companies in the US, a majority, a significant majority. By the end of this year, we'll be sharing this data that they have been keeping private for decades. So I mean that's almost more interesting than what it's showing, which is kind of what we know, but in a way that now makes them much more

accountable to it. We'll talk about this the e O one form because that's where some of this data come from, right right, And this is very important for people to understand because there's been there were a lot of people said, why are you being such a stickler, why are you saying CEO one or nothing. Well, what happens is every year all company these with more than a hundred employees acceptoring COVID. They've been delayed, but they will be doing

it again. Basically next month. I have to report the racial and gender breakdown of their workforce in detail. And there's a it's very you know, very instructive, is how to do it. So even if it's not shared publicly, there is an aggregate database of the entire workforce for the United States that that that we can see and there's no such thing, there's no other source for this kind of information. So when a company gives us their individual form, we can compare them against their industry, we

can compare them against the country. We can do things that you can't do with what people just throw up on their diversity page and say this is what we're showing you. Well, I always feel like the devils and the details. The deeper you you really dive into numbers, you really get a much truer picture, and it's really cool, Like as to mention, it's interactive, so you can put in down costco, Facebook, uh and video and really get

a good handle on how they're doing. Overall. Though, when we do take that big odd look Jeff, how are companies doing? What are the numbers? Well, I mean it's kind of where we know they say they are, but

in a much more detailed way. And it also just kind of shows how much diversity right now is sort of focused on um Asian employees tend to be overrepresentative in terms of where they where companies shift if they're not a lot of the companies that have given us their data actually are underrepresented in terms of white workers, but where they shift to is um in Asian workers, especially tech and Hispanic and black workers. The the I

guess the poor employees are not faring as well. There's a few exceptions where you have companies that are maybe in the consumer space. Um you look at McDonald's and Starbucks have managed to move some of their employees from from the workforce into the into the management ranks. But it's it's it really kind of shows especially if you if you look at it all as a big snapshot, which you can do with one of the graphics kind

of where everything falls out. There's very few company that are um overrepresented or even represented in terms of black employees for example. Well, and that's interesting stuff because and it makes me kind of red between the lines here because just in in the wake of George Floyd social unrest, like it's almost like the companies, and these are the biggest companies in corporate America now recognize that they basically have to put this out in the open and actually

like confront it and not try away from it. So is that what kind of tone are you have you been able to pick up on from the companies just in terms of their willingness to finally cooperate. Yeah, I think there's a very much a tone of like, you know, Okay, this doesn't look good, but it's better than being like cited is among the nose that won't share. Obviously, some companies are still willing to you know, stand by. They

don't think this is a good measure. They have lots of reasons why they don't want to show this to us. But I think ultimately the you know, sort of the momentum is against them now. And companies are basically saying transparency is part of the is basically the cost of entry now to show that you're you're serious about this. Where a year or two ago, um, the focus was on gender, which is a lot easier to show because

it's one measure. This is a lot more complicated and um, you know, asking people to present this in a way that you can compare to other companies is key now. Hence why we have this tool, and it's something that will continue to develop as we go forward. M Jeff, we kept you busy in the issue. I also want to talk about the back page that you also wrote, which is about the diversity officer hiring is pre It's basically like within corporate America, they know they have this problem,

they're trying to address it. What what job if you're if you want to be an executive in corporate America right now, what's the best way to get that to get hired? Yeah, well, I mean there are a lot of companies hiring chief diversity officers for the first time and and also kind of refreshing what their approach to it, which is kind of part and parcel with people want to show their showing their data they're more willing to share, and they also want to show some sort of tangible

evidence that they're trying to do something. I mean, the risk is that they hire a person and not with the resources behind it, and not to the results and then sort of say, see, I told you so, Um, we tried and you know, nothing changed, which is kind of where the pressure is now is to actually tie these executives and all executives to outcomes. And so you're you're seeing a lot of companies bringing their first chief diversity officer, but they were now reporting to the CEO

as opposed to maybe through HR in a couple levels. Yeah, it's definitely been up to um. Listen, those are the both stories, just really really smart and full of lots of information. It's in the current issue of Bloomberg Business Week magazine. Jeff Green, thank you so much, Bloomberg News, along which Old Weber, the editor of Bloomberg Business Week magazine. This is Bloomberg Business Week with Carol Masser and Bloomberg

Quick Takes Tim Stinovich from Bloomberg Radio. So we've been talking about at this this is among our most right on the Bloomberg And once we get into it. You are going to totally know why it's among the most read. It's about Goldman Sachs. It's about Goldman's modern CEO, David Solomon, and it covers everything tim from empty offices to island getaways, even with a stop in the Hampton's along the way. On is Finance reporter for Bloomberg News, joins us on

the phone from New York Street. I'm so glad I get to talk to you again about this story. We spoke on quick Take earlier today. Um, look, what do you think is the juiciest detail from what you learned about Goldman Sacks over the last year. Then thanks. It's always that it's always good to talk to you, whether that's twice or more times in a day, and always they're just speak to do Carol, thank you. And I'm just being nice because I'm hoping when you get your

own jet you would take us along. I will, I will, I promise. Look on gold Honestly, I think the bigger picture is what's really important here. You have a film that is doing, by all accounts, really really one of the stock is it in all time high? It's obviously Wall Street focused operation. It's one of the most premier investment banks out It is the premier investment bank out there.

Great trading performance, great banking performance, in part aided by the wings fall from the pandemic that has held so many other big banks with their Wall Street operations. Then why is it that when everything is supposed to be good, there is still so much grumbling internally? And and and that's that's the question that we've tried to explore here. There's obviously some level of frustration with the CEO leadership style.

You've seen senior level defections, and at a time when there are numerous lucrative opportunities for successful golden executives outside of the banking space, and many of them seem to be taking up on that opportunity. And there's without a doubt the underlying theme of and it's something that affects government but also every other large bank. As we think about a wind down to the pandemic, hopeful wind down to the pandemic, we're also trying to figure out what

the you normal will look like. How much flexibility will bank provide And that's a key question because that will play a big role in the kind of talent you can attract so every company has to wrestle with it, and that has also been a source of tension inside Goldman Sex because of what appears to be a hardline stance of the CEO David's owner. So, okay, so many different places we could go, but first of all, I kind of, you know, put a note to myself, let's

just start with the jet, because is that normal? I feel like sure, if you go pre financial crisis, a lot of corporations had their own private jet. It was the norm. I don't think we would fingerpoint or anything. It was just the way CEO has got around is that the case for Wall Street? Was it that way? And has it not been that way? And so it's kind of a bit of an anomaly for Goldman. I think it's an extremely fair point to make. Carol jets

by themselves are not normally on on Wall Street. An executive jet might be seen as normal in fact, but Goldman fact long may day point of not buying one, not having its own private jet, because it was one of the extravagance. But invite our public schand and even those who have it, it would be hard to certifind

cases where they've used it. Extensively for personal trips, and Goldman's only had jets for a few months now, and from what we have been able to see in the record we've seen, it seems half of those trips have been these we can getaways. But then you also have to juxtapose that with what is happening in the broader

world right now. You have a firm whose CEO has access to the corporate asset to be able to escape to these getaways, while at the same time his subordinate and the public at large are still dealing with the rigors of pandemic life. That brings a whole level of strain.

And when you know that your boss has access to these getaway and at the same time want to back in the city, want you back at the desk, because he believed that is what will keep innovation going, and that is what will make sure that the film continues to strive. There is obviously a bit of a right a level of fiction, and that messaging mismatch has to be address. Listen that tension you get into so well in this story, we can't go through it all and it is really a must read. As we said, it

is among our most read on the Bloomberg. So I'll put it out on Twitter and highly recommend everybody go to Bloomberg dot com and check it out. Tree, thank you so much. Tree. Not Jon finance reporter at Bloomberg News joining us on the phone from New York City. And that's really that important point that he said, come on, I want people back at work, and yet he has the luxury to kind of jet off to different places. Yeah, that's a great point. I want people back at work too. Yeah.

I know. Well they're slowly coming back, slowly, slowly. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes. Tim Stinovic from Bloomberg Radio. Let's get into our next guest, because listen, we keep a watch on bitcoin every day. Did drop back a little bit today after scaling a fresh record on bets at some of the pandemic relief payments in the US will end up chasing the digital tokens towering rally. We've been writing about that, uh and

also writing about bitcoin. In his weekly column, he tackles maybe how central banks get into the cryptocurrencies. Let's bring in Bloomberg New Economy editorial director Andy Brown. He's with us on the phone in New York City, Andy, good to have you here with us. I feel like bitcoin is one of those things as we continue to watch it take out level after level, there's either people who are all in on it are people who don't like

it at all. Yeah. Well, you know, just looking into the whole issue of cryptocurrencies, in bitcoin, it strikes you how how shockingly retrograde this whole thing is, right, I mean, you know, you start, you start with the environment. I know this is is a terribly unpopular thing to say with bitcoin Enthusually, I have to will argue against it.

The true to the matter is that bitcoin in producing bitcoin requires massive amounts of computing power and according to the analysts, analysts that the researchers at Cambridge University equal it equals the carbon emissions equal to the equal to the entire output of Argentina. Okay, so it's terrible for the terrible for the environment. In terms of a medium

of exchange, it's really super inefficient. Now there are layers that are being built on top of the of bitcoin, but right now you can do about four or five or six transactions every second versus literally thousands that are done by visa and master cards, so it's clunky. Janet Yellen was just the other days saying this is extremely inefficient. And then as a store of value, I mean this time last year it was trading at something like less

than ten thousand. Now it's it's up as as as you as you say, now hitting hitting new new records. So you know, in terms of what it is, uh. And of course nobody actually actually knows what what what what value it represent beyond scarcity, right, so basically as a string a string of software code. Uh. And and there's this artificial scarce because only twenty one million bitcoin will ever be produced or mind as as as they say, uh, and yet it actually does represent right now, there's there's

a very fundamental threat uh to central banks um. And central banks are really scrambling to come up with a response to this thing. Um. And it does seem as though China is at the forefront of the response to this challenge by coming up with a central bank issued digital currency. And again, you know, this is something that banks are now looking at. They didn't want any part

of cryptocurrencies, but they're being forced to respond. Janet Yell and the other day said, well, yeah, actually you know, uh, maybe a digital dollar would be a good idea. Maybe it would facilitate payments and so on. Um, you know, and and and kind of the thought is that the irony here is that you know, the the the people who invented bitcoin. This this was very much a libertarian experiment,

a radical experiment and peer to peer money. You you you took out the middle person, right that the banks, the monetary authorities. What would you know the unintended consequences of this, Maybe that they have that they're going to spur the creation of these ultimate top down currencies issued by monetary authorities, central banks, um, all over the world. And actually, you know that may not be such a terrible thing, to the extent that you know, you could

really blur the lines between monetary and fiscal policy. China and China they're talking about, you know, using using central bank issued currency, for instance, to you know, issue helicopter money to businesses, right individuals, right unlimited queue for the for the for the for for the masses, um, you know, and and uh, it's it's it's just something that they're actively considering. This is this isn't some kind of wild theory.

This is the practical application that they're talking about in China. Right, Well, it's and it's fascinating. Like you mentioned John Yelle in the one eight that she's done, but you do talk about China. And listen, since we have you, we've got to ask you about all of the headlines, the flur of headlines, including one this morning coming out of China about the Chinese government asking Ali Baba to sell media assets. You know, we are seeing increasingly andy this campaign to

curb the influence of China's technology moguls um. We continue to see that expand what's the endgame and what's what does this ultimately mean in terms of especially China's plan to be operating on a more sophisticated kind of industrialized scale. Yeah, you know, look, I think you can look at this in in in two ways. I mean, one way is clearly they've launched the launching the mother of all antitrust

investigations now into UH into Ali Baba. Uh. It looks as though this is now going to spread from Ali Baba to ten Cent, And so you could say that you know, as they're going through Ali Baba's business is trying to figure out ways where it is abusing its monopoly, perceived to be abusing its monopoly. Now they're taking a look at the whole issue of media, and so according to the Wolf's Reet Journal, Ali baba Is may have

to divest its media assets. You know, the other way I look at this is, you know, from a from a political perspective, I would say this is deeply negative and deeply troubling for Jagna because in China, you know, media is. Of course they're saying, oh, you know, we're we're in media not because we want to control the message, you know, not because we want to we we we we we we want to have political influences, all about

leveraging technology to help media companies. That's not the way regulators look at it at all, as far as they concerned media politics, Media is propaganda. Propaganda is shaping public opinion. And as far as the party is concerned in China, that is a plank, a central plank all the way it holds power and and and and perpetuates its rule. This is deeply now a deeply political tone that the antitrust investigation against Ali Baba has has has has has taken.

Yeah listen, and it just feels like almost every morning or every day or every week that there's another headline against one of the major Chinese players. Um, Andy, thank you so much, really appreciate a. Bloomberg New Economy editorial director Andy Brown with us on the phone in New York City, macro a journal Now, but you let me drive? Oh no, no, no, no no, please, I'll do the right revel I want to try. Just drive, baby, question trying. This is the drive to the globe. Thanks, we'll try

us on Bloomberg Radio. All right, just wout eleven minutes left in the Monday trading session. The IDEs of March. So it's happening, it's happening. Hey, Let's bring in J. J. Ken In. He's chief market Strategies at t D A Merge Trade, joining us once again on the phone from Chicago. Are you spooked at all? Girl? I spook. No, not at all. Let's get here. We're saying the IDEs of March, you know, little nervousness here. Well, it is funny though,

isn't it. You know, as we set new records on Friday, if I were reading the you know press over the weekend, not knowing what happened, I would think that we were in the middle of a terrible, terrible stock market right now. That is amazing. I'm many people are just waiting for the fall, so to speak, as we continue to rally.

Were they right to feel the way? And here I am looking at the last few minutes of trading today and we're seeing another leg up on the major equity servicing buying into the clothes here, Um, but are investors are individuals right to be a little nervous. Maybe it's not even this this year's story, Maybe it's in the next year's story. Well, I think, you know, you bring up a great point. Part of it should depend on

your time frame quite a bit. But I do think that healthy, healthy pessimism is always a good thing when you are investing. There's no question about that. But you know, you can't stop it for you can't. You can't let that stop you from investing in quality names that are doing wealth. And you know, as we talk right now, we're seeing bonds rally quite a bit as the S

and P s rally quite a bit. I think the thing that maybe people should be concerned out at the moment is that the relationships are still a little bit askew, and I would expect that to continue, and I would expect actually volatility to continue for at least till the end of the month, and certainly this week as we have quade people witching exploration on Friday, and so it'll be interesting for me to see how many people are sort of rolling positions forward or are people going to

have the same enthusiasm for the summertime as they've had for the uh, you know, first quarter of the Well, speaking of enthusiasm, our colleague David Weston spoke with A Bank of America's CEO, Brian moynihan earlier today, and one thing that struck me from part of the interview that we played right here on Bloomberg Radio is when he talked about consumer spending and credit card use and the way they were rebounding really strongly, seeing significant shifts after

people get vaccinated in April. Data will probably show quote massive growth compared with what kind of preview does that give you for what things look like on the other side here and what is that and how much of that is priced in already in stocks? Right? How much of that optimism is already priced in? Well, I think him that's really going to be the question that we hit,

in my opinion, out a couple of months. And the reason I say that it's at the same time that you're talking about that, you're also getting checks going in the mail this week, so people get excited about that. But where I think the real test comes is, you know, but I believe and trying after May first, we're also you know, every adult silso to get vaccinating. So let's say they come to June. What happens then when people who have been at a home for close to eighteen

months in many cases, will fall between twelve and eighteen. Uh, productivity, you know, as they say, it's never been higher, creativity never been lower because people have been working so much, but not in groups, and everybody has a bunch of vacation time saved up. What I'm worried about. To be honest with you, it's third quarter GDP because you may come to the situation where so many people say I'm

going outside. I don't care. I just want to enjoy life for a little while, because I haven't really done that. And I know, I mean, I say it kind of smirking, but I do think it's a real threat to things, uh for a core, because I really feel like you live in New York, I live in Chicago. We know how precious nice weather is. And I think that that's a risk of the account. But but maybe that would

manifest in other consumer spending. Right if we think about it from the perspective of the way that we hit a hospitality right and traveling leisure like that could be a boon, then that could be a boon, And I I believe you're absolutely right, And actually theoretically, I think it could be a boon for the energy market to to be uh quite out oft also, but that also

has longer term effects. And so I think that if you see GDP start could come down, even if it's just for a quarter, then it's okay, how do we recover from that, because hopefully we don't need any more stimulus after this one, et cetera. And if it's that's at the same time as we start to see some text proposals, that's the only thing that I see concerns

me longer. Yeah, but we seem to somehow manager I don't know, no offense, but I feel like companies figure out a way in terms of their effective tax rate to actually despite a you know, actual tax rate that they're supposed to pay, they ultimately pay up less j J. So it's not so onerous on the corporate community bottom line. No, No,

that's true, Carol, But I just mean spending in general, etcetera. Again, I think it's great when you know people have this optimism and there there's incredible optimism right now, and and love to see it. Like I said, even though you know, reading a lot of the reports of the market, you wouldn't know there's an incredible optimism, But days like today

make me believe there is. I guess what I'm really saying is I think anybody who believes sort of this shorter term volatility is going away is probably a little bit kidding themselves because there are things to worry about in the shorter term. But as we look for the rest, certainly for the rest of the next quarter, I just feel like we have a lot of momentum. We have checksitting,

we have people anxious to spend money. It's the second half of the year that I start to wonder about a little bit and can we continue with this great optimism prove all right? So having said that, then how do you position a portfolio at this point? What's your take well. I think, you know, financials as have been a great uh contributor to the market so far this

year half to be there. You know, they they fought for so many years the headwinds, and they were like a great boxer that wouldn't go down and kept getting punch in the face. And now with with the way they managed their business, the ability to collect funds and now they actually have true banking functions hopefully back and a little bit of a spread even though again I know I'm talking about at ten year rate, it's just over one point six. As if it's unbelievable us, let's

face it. In perspective of historical it's nothing but the trends in the right direction for them. And I think Tommy hit on something on for a few minutes ago, and that is the hospitality industry, you know, small businesses all the way through these stocks and airlines. So I

do think they have a great opportunity. The only thing that I think puts a little bit of a crimp in there, and and I don't know what I'll slow it down in the short term is actually a prude Prices continue up above seventy as we speak right now. You know West Texas is eight, but we uh, if we get above seventy, I think that puts a little bit of expense, perhaps back on airlines. J J. In five seconds, is there a ten year yield number that scares you? All? Right? Well, there it is, all right,

we're watching. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube. Search to Bloomberg Global News