Bloomberg Markets: The Close (10/22/2021)

Bloomberg Markets: The Close (10/22/2021)

THIS IS BLOOMBERG. ANNOUNCER:
THE MOST CRUCIAL MOMENTS IN THE TRADING DAY.
THIS IS "BLOOMBERG MARKETS: THE CLOSE."
WITH CAROLINE HYDE, ROMAINE BOSTICK, AND TAYLOR RIGGS. CAROLINE:
WE ARE LIVE FROM THE ACADEMY MUSEUM OF MOTION PICTURES IN
LOS ANGELES. THIS IS SPECIAL EDITION.
ROMAINE: THE ENTERTAINMENT EDGE.
WE ARE OVERLOOKING WILSHIRE BOULEVARD IN LOS ANGELES.
COMING UP, WE WILL SPEAK TO A BIG LINEUP OF FOLKS ABOUT THE
ENTERTAINMENT INDUSTRY. WE WILL KEEP AN EYE ON THE
MARKETS AS WELL. CAROLINE:
WE WILL BE TALKING ABOUT THE RESTAURANT INDUSTRY.
THE LABOR SHORTAGE, THEN WE WILL DIG INTO THE MEDIA
LANDSCAPE. OUR GUEST IS THE OWNER OF A LOS
ANGELES NEWSPAPER. ROMAINE: TAYLOR, WE WILL BRING YOU BACK
SOMETHING NICE. WHAT'S GOING ON IN NEW YORK?
TAYLOR: I WANT SOME SOUVENIRS. THE EQUITY MARKETS ARE MISSING
THE SUNSHINE. WE ARE COMING OFF OF RECORD
HIGHS YESTERDAY. THE NASDAQ IS THE BIGGEST
UNDERPERFORMER. YOU ARE SEEING YIELDS ON THE
LONG AND. — ON THE LONG END. TECH IS THE BIG UNDERPERFORMER
BECAUSE OF SNAPCHAT. HAVING THE WORST ONE-DAY DROP
EVER. WE'VE BEEN TALKING ABOUT FACEBOOK AND THE CONCERN ABOUT
THE APPLE IOS CHANGE TO PRIVACY.

SNAP IS GETTING HIT HARD BY
THIS. A KEY QUESTION FROM ANALYSTS IS
WHY DID WE GET A HEADS UP? — WHY DIDN'T WE GET A HEADS UP?
YIELDS ARE COMING IN MAYBE BECAUSE JAY POWELL SAID WE ARE
ON TRACK TO TAPER. HE MADE IT CLEAR THE RISKS ARE
TILTED TO THE UPSIDE. YOU ARE SEEING THESE BREAKEVENS
START TO CLIMB. CAROLINE: WE HAVE THE PERFECT GUEST TO
DISCUSS ABOUT THE SUPPLY CHAIN ISSUES. THE INFLATIONARY TISSUES THAT
JAY POWELL WAS TALKING ABOUT, ALSO FRANCINE LACQUA WHO WAS
DISCUSSING THIS. OUR GUEST KNOWS ABOUT THE
TENSION THE BOTTLENECKS PUT ON THE INDUSTRY.
WHERE YOU STAND ON INFLATIONARY RISKS? >> INFLATIONARY RISKS ARE
ELEVATED. THE EXPECTATION WE CAN SEE IN
THE MARKET FOR BONDS, THE DIFFERENCE BETWEEN TIPS AND
NOMINAL'S IS SANGUINE. ELEVATED FOR A COUPLE OF YEARS
GETTING THROUGH THE REOPENING OF THE ECONOMY THEN SETTLING
BACK DOWN A FEW YEARS FORWARD DOWN TO JUST ABOVE 2%.
THE RISKS TO THE CENTRAL TENDENCY I THINK ARE ELEVATED.
WE ARE RUNNING AT 5% INFLATION.

EVEN THE TRIMMED INFLATION, THE
UNDERLYING RATE OF INFLATION, THERE ARE UNDERLYING GAUGES.
THINGS THAT WE USE LIKE ENERGY, FOOD. IT'S STILL RUNNING AT 4%. WE ARE AT AN ELEVATED RATE OF
INFLATION, BUT THE MARKET IS BETTING THAT IT COMES BACK.
ROMAINE: I'M CURIOUS OF HOW YOU MITIGATE
THAT RISK. WE HAD HEADLINES EARLIER, JAY
POWELL TALKING ABOUT INFLATION SIGNALING CONCERN THAT HE
HASN'T NECESSARILY SIGNALED IN THE PAST. IT IS THE FED TOO
LATE TO THE PARTY? >> IT'S LESS ABOUT THE FED AND
MORE ABOUT MONETARY POLICY. WE HAD THE GREAT DISASTER
RELIEF PAYMENTS — FISCAL POLICY, I'M SORRY.
IT'S MORE ABOUT THE SCOPE POLICY.
WE WERE WIRE TRANSFERRING MONEY INTO PEOPLE'S ACCOUNTS AS WELL
AS MONETARY STIMULUS. WHEN YOU COORDINATE FISCAL AND
MONETARY, THAT'S HOW YOU GET INFLATION. ROMAINE: YOU TALK ABOUT THE BIG SESSION
WE HAD, THERE WAS AN INCREASE IN HOUSEHOLD INCOME.
THERE'S MORE MONEY POTENTIALLY COMING DOWN THE PIPELINE.
IS THAT TROUBLESOME? >> IT DEPENDS.
FROM AN INFLATION RISK PERSPECTIVE, IT IS TROUBLESOME
IF WE ENACT NEW SOCIAL PROGRAMS AND DON'T PAY FOR WITH TAX
REVENUE.

THAT'S A RECIPE FOR CONTINUED
HIGH INFLATION. THE MARKET IS BETTING THAT'S
NOT WANT TO HAPPEN. IF YOU'RE LOOKING AT CORPORATE
PROFITS, THAT'S GREAT FOR CORPORATE PROFITS. THERE'S AN ACCOUNTING IDENTITY
THAT BASICALLY SAYS THAT AN INCREASE IN GOVERNMENT DEFICITS
FLOWS EITHER INTO INDIVIDUAL SAVINGS OR CORPORATE SAVINGS
AND THAT'S ANOTHER WORD FOR PROFITS. IF YOU HOLD INDIVIDUAL SAVINGS
CONSTANT, HIGHER SAVINGS MEANS MORE PROFITS. AT THAT WERE TURNAROUND AND
THERE'S NO INDICATION IN WASHINGTON THE DEFICIT SPENDING
IS WINTER AND. — IS GOING TO AND. — GOING TO END, CAROLINE:
SOMETIMES PEOPLE ARE LOOKING AT GROWTH STOCKS AS A HAVEN.
WHEN YOU LOOK AT SNAPCHAT, THE OWNER BASED IN L.A.
HAVING A TERRIBLE TIME IN THE MARKET TODAY. OUR GROWTH STOCKS A POTENTIAL
HAVEN WHEN WE LOOK AT INFLATIONARY PRESSURES? >> I DON'T THINK THAT STOCKS IN
GENERAL ARE GOING TO BE A HAVEN FROM INFLATION.
CERTAINLY NOT THE HIGHFLYING GROWTH STOCKS. THE SENSITIVITY TO THE DISCOUNT
RATE SHOULD BE MUCH HIGHER. THEY HAVE MUCH MORE DISTANT
FUTURE CASH FLOWS.

WHEN WE SEE AN INFLATION SCARE,
WE SEE THE NASDAQ UNDERPERFORM THE S&P AND THE DOUBT. — AND ABOUT — AND THE DOW.
SENSITIVITY IS OVERBLOWN. THINK ABOUT THE PROFITS
GENERATED BY GOOGLE, MICROSOFT, APPLE, AMAZON AS BEING
DEPENDING ON YOUR POLITICAL PERSUASION, YOU CAN THINK OF IT
AS HAVING A MOAT AROUND YOUR BUSINESS. A PROGRESSIVE MY CALL IT
MONOPOLY RENTS. IT'S LESS ABOUT INFLATION
MISSING TO THE UPSIDE AND MORE ABOUT POLICY THAT IS DESIGNED
TO ADDRESS THE LACK OF COMPETITION.
MAKE NO MISTAKE, THERE ARE A NUMBER OF PEOPLE ON JOE BIDEN'S
ECONOMIC TEAM WHO TEND TO ADDRESS THIS.
— WHO INTEND TO ADDRESS THIS. ROMAINE: WHAT ABOUT VALUE? WHEN YOU TRY TO DEFINE VALUE IN
THIS ENVIRONMENT, WHAT IS IT? >> IT'S AN ENORMOUS DISPERSION
BETWEEN THE PRICING OF GROWTH STOCKS AND VALUE STOCKS.
WE ARE NOT AT THE HIGHEST VALUATION DISPERSION EVER.
THAT WOULD HAVE BEEN THIS TIME LAST YEAR. EXCLUDING THAT TIME, WE ARE AT
THE WIDEST DISPERSION, THE BIGGEST DIFFERENCE IN THE
PRICING OF GROWTH STOCKS VERSUS VALUE STOCKS.
BASED UPON WHAT WAS HAPPENING OVER THE LAST DAY OR TWO, I
WILL GIVE YOU A TRADE THAT GETS AT THE ESSENCE OF WHAT WE DO IN
OUR CONTRARIAN VALUE ORIENTED INVESTING.

I DON'T HAVE DEEP EXPERTISE ON
INDIVIDUAL STOCKS. WHEN I SEE INTEL TRADE-OFF BASED ON A TEMPORARY ISSUE, SO
FAR AS I UNDERSTAND IT MISSED ON TOPLINE REVENUE BECAUSE FOLKS LIKE COMPAQ AND HP ARE
CONSTRAINED IN THE PARTS THEY ARE GETTING SO THEY REDUCED
THEIR CPU ORDERS. THAT'S WHAT COME BACK. NOW IT'S PRICED AT LESS THAN
$50 PER SHARE. IT'S HARD TO GET A DECENT
RETURN FROM THOSE PRICES. THE MARKET PRICE HIDES THE
ENORMOUS DISPERSION. SHORTING WE WORK RECENT SPAC
IPO , I GIVE IT — WE TEND TO HAVE A DIVERSIFIED SET OF
POSITIONS THAT WERE LONG ON CHEAP STOCKS ON'S — RECENTLY
HAD TROUBLE. WE TEND TO AVOID STUFF YOU
CAN'T EVEN FIGURE OUT HOW TO PRICE A COMPANY THAT HAS NEVER
MADE MONEY AND CONTINUES TO BURN CASH.
THOSE ARE THE OPPORTUNITIES THAT PRESENT THEMSELVES IN
TODAY'S MARKET.

ROMAINE: THE FOLKS AT RESEARCH
AFFILIATES ALWAYS FIND A WAY TO SNIFF THOSE OUT. WE ARE LIVE FROM THE ACADEMY
MUSEUM OF MOTION PICTURES HERE IN LOS ANGELES.
A LOT MORE COMING UP ON THE SHOW. CAROLINE: ABOUT HOW CAN WE HELP BUILD
WEALTH. ROMAINE: ALSO, THE CHALLENGES IN THE
RESTAURANT INDUSTRY. OUR GUEST IS OPENED THREE NEW
RESTAURANTS THIS YEAR. AND A BILLIONAIRE FOUNDER OF
IMMUNITY BIO. HE PLANS TO BUILD A COMPLEX IN
SOUTH AFRICA TO PRODUCE VACCINES .
HE WILL BE HERE TO TALK ALL ABOUT THAT. TO OUR VIEWERS WORLDWIDE, THIS
IS BLOOMBERG.

TAYLOR:
WE ARE LOOKING AT SNAPCHAT HAVING THE WORST DAY EVER.
FACEBOOK WARNED US ABOUT THE CHANGES TO THE SOFTWARE.
SNAP SAID THEY WON'T WORRY. THAT CHANGED YESTERDAY. OUR GUEST IS A SENIOR ANALYST. WHY WEREN'T WE GIVING — GIVEN
A HEADS UP THAT IT WAS GOING TO IMPACT THEM? >> TWO THINGS HAPPENED.
ONE IS PRICING. ADVERTISERS ARE SEEING LOWER
ROI FURTHER SPENDING DOLLARS FOR ADS.
THESE COMPANIES CAN TRACK USER ACTIVITY OUTSIDE THE APP. THE STOCK WAS PRICED PERFECTION
IN TERMS OF THE RICH VALUATION. THEY WERE TRADING AT OVER 20
TIMES SALES. THE ROOM TO MISS WAS MARGINAL
AND THEY CAME OUT WITH A MUTED FORECAST.

THAT'S WHY WE SAW
SUCH A WILD REACTION IN THE STOCK. TAYLOR:
ROMAINE, OUT TO YOU IN LOS ANGELES. ROMAINE:
SANTA MONICA ISN'T THAT FAR AWAY. NBA OR CFA? THAT'S A BIG DEBATE.
ROBIN YOUNG IS A CEO OF BEHAVING WEALTHY.
SHE WILL BE HERE TO TALK ABOUT THAT AND EDUCATION, FINANCIAL
LITERACY. ROMAINE:
FROM ONE COAST TO THE NEXT, WE ARE AT THE ACADEMY MUSEUM OF
MOTION PICTURES. WE'RE GOING TO TALK NOT ABOUT
ENTERTAINMENT, BUT ABOUT WEALTH, INEQUALITY, AND HOW YOU
ADDRESS THAT. CAROLINE: THE HAVE AND HAVE-NOTS.
THE RICH GET RICHER, THE POOR GET WITH BEHIND — LEFT BEHIND.
ROMAINE: ROBIN YOUNG IS A CERTIFIED
FINANCIAL PLANNER AND A CEO. NICE TO SEE YOU.
WE HAVE SPOKEN WITH YOU BEFORE.

IN THE CONTEXT ABOUT
AFRICAN-AMERICANS AND PEOPLE WHO DIDN'T NECESSARILY FIT INTO
THE TRADITIONAL WORLD OF FINANCE AND HOW WE HAVE REACHED
THE STAGE WHERE THERE'S A LOT MORE AWARENESS ABOUT BEING
INCLUDED AND MORE IMPORTANTLY, ASSERTING YOURSELF INTO THAT. >> I FOUND THAT CREDENTIALS
OPEN THE DOOR FOR YOU. WHETHER IT'S CFA OR MBA, THEY
CAN OPEN THE DOOR BUT YOU HAVE TO BUILD SOFT SKILLS TO TURN
THAT INTO SUCCESS. CAROLINE: SOFT SKILLS, MARKETING SKILLS,
HOW HAVE YOU ENSURED THAT YOUR BUSINESS REMAINS RELEVANT AND
IS GETTING ITS MESSAGE ACROSS TO THE RIGHT PEOPLE? >> MY FAVORITE GROUP OF PEOPLE,
I CALL THEM THE EMERGING WEALTHY.
THEY HAVEN'T TURNED THEIR INCOME INTO WEALTH.
MY CLIENT IS THE PERSON WHO SAYS THE END OF THE YEAR WHERE
DID MY MONEY GO? IT'S IMPORTANT THAT YOU
UNDERSTAND THERE ARE CERTAIN MONEY HABITS YOU MUST EXHIBIT
IN ORDER TO TURN IN — INCOME INTO WEALTH. THAT'S THE KEY.
ROMAINE: A LOT OF PEOPLE IN THE BLACK
COMMUNITY, IT WAS ALL ABOUT SAVER CERTAIN PERCENTAGE OF
YOUR PAYCHECK OR DON'T SPEND AS MUCH ON THE FRIVOLOUS CONSUMER
GOODS.

A LOT OF YOUNGER PEOPLE, THEY
ARE LOOKING AT THAT AND SAYING IT'S NOT GOING TO CUT IT. >> CORRECT.
IT WAS AN INCOMPLETE LESSON WE WERE YOUNGER.
A MORE COMPLETE LESSON HAPPENED, I MANAGED $1 BILLION
FOR 500 CLIENTS IN MY PREVIOUS JOB AND I LEARNED THESE WEALTHY
HABITS. INCOME EARNERS DIDN'T KNOW
THESE HABITS. I SAID WHAT IF I HELP THEM
LEARN THESE HABITS? SOME OF THEM ARE WHAT DO YOU
REALLY WANT? INCOME EARNERS CAN BE VAGUE.
WEALTHY PEOPLE ALWAYS KNOW WHAT THEY WANT.
NUMBER TWO, THEY HAVE TO KNOW WHAT IT COSTS.
WHERE ARE YOU IN RELATIONSHIP TO YOUR GOALS?
NUMBER THREE, HOW DO YOU TURN YOUR INCOME INTO WEALTH?
WEALTHY PEOPLE ARE SO FOCUSED ON THAT.
INCOME EARNERS ARE LIKE HERE ARE MY EXPENSES, THIS IS WHAT I
WANT TO DO AND WE WILL SEE WHAT HAPPENS.

THOSE HABITS, IT'S THE DIFFERENCE BETWEEN WEALTH AND
FREEDOM AND THE RAT RACE OF SPENDING AND EARNING. CAROLINE: WE ARE STARTING TO SEE A MORE
DISRUPTIVE FINANCE. WE CALL IT DEMOCRATIZATION.
THE ABILITY TO CHEAPLY YOUR MONEY TO WORK IN ASSETS.
IS THAT HOW YOU'RE SAYING YOU NEED TO PUT YOUR INCOME TO WORK?
HOW ARE YOU SAYING YOU CAN SAFELY BUILD AND FOR THE
LONG-TERM? >> YOU HAVE TO UNDERSTAND WHAT
YOUR GOALS COST? ONCE YOU KNOW THAT, YOU KNOW
HOW MUCH OF YOUR INCOME TO ALLOCATE THEIR.
— ALLOCATE THERE. YOU DON'T KNOW HOW TO ALLOCATE
IF YOU DON'T KNOW WHAT TO DO. THEN YOU HAVE TO BALANCE GROWTH
WITH PRESERVATION. HOW LONG IS IT TAKE YOU TO GROW
THAT MONEY AND YOU WANT TO MAKE SURE YOU PROTECT IT.
YOUNGER PEOPLE DON'T ALWAYS THINK THROUGH THE BALANCE OF
GROWTH AND PRESERVATION.

WHEN YOU SAY WHAT CAN YOU DO,
YOU HAVE TO SAY WHERE ARE YOU GOING?
WHAT RETURN DO YOU NEED TO GET TO YOUR GOAL? I SAY YOUR FIRST 500,000
DOLLARS SHOULD BE A SIMPLE EXERCISE IN INVESTING. ROMAINE: THE LINE IS RISK AND WHAT RISK
PEOPLE ARE WILLING TO TAKE. >> PART OF RISK IS
UNDERSTANDING YOUR STOMACH. IF YOU'RE YOUNG, PEOPLE SO YOU
CAN BE AGGRESSIVE AND YOU HAVE TIME. BUT WHAT IF YOU HAVE A LOW
TOLERANCE FOR RISK? OR YOUR OLDER AND YOU HAVE A
HIGH TOLERANCE FOR RISK? LET'S PROTECT MY MONEY, THEN
GROW.

FOR EXAMPLE, IF YOU HAVE $100,000 AND YOU LOSE 40% OF
THAT, YOU HAVE TO RETURN 67% TO GET BACK TO $100,000.
LET'S PROTECT WHAT YOU HAVE FIRST. CAROLINE:
HOW ARE YOU TARGETING PEOPLE AT A YOUNGER AGE TO UNDERSTAND
THAT? >> THERE IS NOT ENOUGH
FINANCIAL LITERACY. THERE IS A MYTH THAT IF YOU
DON'T HAVE A LOT TODAY, THAT YOU SHOULD WAIT UNTIL YOU HAVE
A LOT. THAT'S THE ABSOLUTE WRONG MESSAGE.
THE RIGHT HABIT IS WHAT ARE YOU DOING WITH THE INCOME THAT YOU
HAVE TODAY AND TURNING THAT INTO RETURNS?
ONE BEHAVIOR SHOULD YIELD YOU THREE TIME RICHER RESULTS.
ROMAINE: ROBIN YOUNG IS THE CEO OF
BEHAVING WEALTHY. WE ARE TOP THE ACADEMY MUSEUM
OF MOTION PICTURES BROADCASTING LIVE TO OUR VIEWERS WORLDWIDE.
YOU ARE WATCHING BLOOMBERG. ♪ I'M MARK CRUMPTON.
THIS IS BLOOMBERG. ♪ ROMAINE: LIVE FROM THE ACADEMY MUSEUM OF
MOTION PICTURES, THIS IS A SPECIAL EDITION. CAROLINE:
TAYLOR, YOU'RE HOLDING DOWN THE FORT IN NEW YORK. TAYLOR:
MY LAST DAY OF COMMODITY CLOSE.

LET'S LOOK AT CRUDE.
EARLIER, WE WERE LOOKING AT HIGHER.
WE ARE NOW UP ON OIL FOR NINE STRAIGHT WEEKS.
THE HIGHEST YOU HAVE SEEN SINCE OCTOBER 2014. GAS IS UP AS WELL.
ALUMINUM, COPPER, YOU NAME IT. THEY HAVE BEEN DOWN. ERASING EARLIER GAINS GIVEN
THAT THE ENERGY CRISIS CONTINUES TO ROIL SOME OF THE
MARKETS. YOU ARE GETTING A SUPPLY
OUTLOOK IMPROVING AND MANNED COMING FROM CHINA. LET ME BRING YOU TO THIS
TERMINAL CHART. IT IS RISING GLOBALLY
EVERYWHERE YOU GO. IT HAS GONE VERTICAL.
THAT'S A SCARY CHART. CAROLINE: ENERGY PRICES GOING UP.
CRUDE PRICES GOING UP. INFLATION.
RESTAURANTS HERE ARE AT THE HEART OF WHAT HAPPENS. THE INDUSTRY IS SUFFERING
GLOBALLY SINCE THE PANDEMIC BEGAN.

OUR GUEST IS THE OWNER OF A
GROUP, A MEMBER OF THE INTERNATIONAL RESTAURANT
COALITION WHO JUST OPENED TO RESTAURANTS IN LOS ANGELES THIS
WEEK. KNOWN FOR FABULOUS FOOD AND
WINE , NOW GOING ON TO OPEN MORE AND A HOTEL COMPLEX.
WHAT IS IT LIKE OPENING IN THIS CURRENT ENVIRONMENT? >> I HAVE BEEN IN THE INDUSTRY
FOR A VERY LONG TIME. I HAVE NEVER EXPERIENCED WHAT
WERE GOING THROUGH RIGHT NOW.

NORMALLY, WE HAVE AN ENORMOUS
STAFF, TOO MANY PEOPLE THAT WE TRAIN.
WE OPEN UP AND WE ARE BUSTLING AND FULL OF STAFF.
WE ARE STRUGGLING RIGHT NOW. WE DON'T HAVE ENOUGH STAFF TO
OPEN ALL OF THE VENUES SEVEN DAYS PER WEEK.
WE DON'T HAVE ENOUGH STAFF FOR BRUNCH OR LUNCH.
IT HOLDS BACK OUR ABILITY TO OPEN, OPERATE, GROW, AND CREATE
A BUSTLING ECONOMIC ENVIRONMENT. ROMAINE:
WITH REGARD TO THE LABOR, WHERE IS THE SHORTAGE? >> IT'S ACROSS THE BOARD.
SOMETIMES I THINK THE KITCHEN MIGHT BE WORSE OFF BECAUSE
FINDING SKILLED LABOR, PEOPLE WHO REALLY KNOW WHAT THEY'RE
DOING AND A KITCHEN IS HARD. WE ARE HIRING A LOT OF PEOPLE
THAT DON'T HAVE EXPERIENCE AND HAVING TO TRAIN THEM FROM ZERO.

SERVERS, BARTENDERS, THESE ARE
NORMALLY WELL-PAID JOBS BECAUSE THEY GET TIPS, BUT NOW IT'S
IMPOSSIBLE. CAROLINE:
EUROGROUP, I NATURE IT'S — YOUR BY NATURE IS FIND DANNING.
— FINE DINING. CAN YOU PASS ON COST INCREASES? >> THAT IS A FINE LINE THAT WE
HAVE TO BALANCE ALL THE TIME. WE ARE CONSCIENTIOUS OF WHAT
WERE CHARGING. WE DON'T WANT PEOPLE TO FEEL
THAT THEY ARE BEING GOUGED, BUT AT THE SAME TIME THE RESTAURANT
INDUSTRY CURRENTLY DOES NOT CHARGE ENOUGH FOR WHAT WOULD
PROVIDE. THE COST OF THE FOOD, LABOR,
FUEL TO GET THE FOOD TO US. OUR ENERGY COSTS.
ALL OF THAT HAS GONE UP DRAMATICALLY.
THE PUBLIC DOESN'T HAVE THE TOLERANCE FOR THE INCREASED
PRICE THAT COMES ALONG WITH IT. WE ARE CONSTANTLY TRYING TO DO
MORE WITH LESS. WE ARE REALLY SENSITIVE TO IT.
WE CAN'T PASS IT ON THROUGH AUTOMATICALLY.
WE HAVE TO BE VERY CAREFUL. ROMAINE:
THESE WERE FREE PANDEMIC ISSUES AS WELL.
— PRE-PANDEMIC ISSUES AS WELL. WERE THERE CHANGES MADE TO THE
BUSINESS MODEL WHERE MAYBE IT MADE THE MARGINS A LITTLE MORE
SECURE? >> WE HAVE WANTED TO MAKE
CHANGES TO THE BUSINESS MODEL.

IT'S LIKE RESTARTING A WHOLE
NEW SYSTEM. SOME PEOPLE HAVE BEEN VERY
SUCCESSFUL WITH IT. WE HAVE BEEN TRYING TO INCLUDE
THE BACK OF THE HOUSE, THE KITCHEN IN THE GRATUITY POOL
BECAUSE HISTORICALLY, THOSE WHO WORK IN THE BACK OF THE HOUSE
ARE THE LOWEST PAID AND THEY WORK INCREDIBLY HARD.
WE ARE TRYING TO BALANCE THAT OUT.
A LOT OF RESTAURANTS ARE DOING SERVICE CHARGES INSTEAD OF
GRATUITIES. THERE CHALLENGES WITH THAT ALSO.
THE ROOTS GO SO DEEP IN THE SYSTEM AND IT'S SO HARD TO MAKE
DRAMATIC CHANGE. IT'S MORE ABOUT CHIPPING AWAY
GRADUALLY.

CAROLINE: YOU HAVE BEEN ONE OF THE KEY
VOICES ON A GROUP OF INDEPENDENT RESTAURANT TOURS
WHO LOBBIED THE GOVERNMENT TO SAY WERE HAVING A DISASTROUS
TIME, NOW WHAT. ARE YOU LOOKING TOWARD THE
ADMINISTRATION FOR HELP WHEN IT COMES TO EDUCATING PEOPLE WHO
WANT TO GET INTO THE INDUSTRY? REBALANCING WHAT IT TAKES TO
GET THERE? >> WE ARE ACTIVELY LOBBYING
CONGRESS AND THE SENATE RIGHT NOW. EARLIER IN THE YEAR, THEY
PASSED THE RESTAURANT REVITALIZATION ACT AS PART OF
THE GREATER RESCUE PACKAGE. IT PROVIDED MONEY TO
RESTAURANTS AND GRANTS. ONLY A FRACTION OF THE
RESTAURANTS WERE ABLE TO GET THEM BECAUSE THE MONEY RAN OUT.
THEY'RE STILL ABOUT A HUNDRED THOUSAND RESTAURANTS THAT
DIDN'T GET THE GRANTS. WE HAVE BEEN DESPERATELY
BEGGING CONGRESS TO RE-UP THE FUND.
THIS IS THE LIFELINE WE NEED AT THE MOMENT.
WE ARE FACING THE FALL AND WINTER.
WE DON'T KNOW WHAT'S GOING TO HAPPEN WITH ANY OF THE VARIANTS
THE COME ALONG.

HERE IN LOS ANGELES, WE DEAL
WITH COLD WEATHER AND RAIN. PEOPLE ARE MORE RELUCTANT TO
EAT OUTSIDE, BUT THEY WANT TO EAT INDOORS.
WE'RE NOT SURE WHAT WERE FACING. ROMAINE:
GIVE US A SENSE OF WHAT THE RESTAURANT SCENE IS LIKE HERE.
HAVE THE NUMBERS GOTTEN BACK TO 2019 LEVELS WITH REGARD TO THE
NUMBER OF PEOPLE COMING IN OR ARE YOU STILL SHORT? >> THE DESIRE ON THE PART OF
THE GUEST IS THERE. PEOPLE WANT TO GO OUT AND FEEL
LIKE IT'S OLD TIMES. THEY ARE TIRED OF MAKING
SOURDOUGH BREAD AT HOME. THERE WERE TO HAVE THAT
EXPERIENCE. WE ARE COMMUNAL, SOCIAL BEINGS.
WE WANT TO BE IN A ROOM WITH PEOPLE.
A LOT OF RESTAURANTS MAY NOT BE ABLE TO TAKE ALL OF THESE
RESERVATIONS AND GUEST BECAUSE WE DON'T HAVE ENOUGH STAFF TO
SERVE THEM. WE DON'T HAVE THE SUPPLIES WE
NEED AND THE PUBLIC WANTS THINGS TO BE NORMAL AND WERE
HAVING A HARD TIME PROVIDING NORMAL AGAIN.

ROMAINE:
IT'S A BIG CHALLENGE. MAYBE ONE DAY, WE WILL GET
THERE. WE GOT TO A FEW RESTAURANTS AND
PEOPLE WANT TO COME BACK. WE APPRECIATE YOU STOPPING BY
TO BE WITH US TODAY. SHE IS THE OWNER OF A
RESTAURANT GROUP. WE ARE GOING TO PIVOT FROM THAT
TO CHIPOTLE. THE CEO JOINING US RIGHT NOW IN
THE NEXT HOUR LIVE FROM LOS ANGELES, THIS IS BLOOMBERG. ♪ CAROLINE:
THE ACADEMY MUSEUM OF MOTION PICTURE, IT'S ALL ABOUT HOW THE
MAGIC IS MADE. ROMAINE: THERE ARE A LOT OF PEOPLE
BEHIND THE SCENES THAT WE DON'T TALK ABOUT.

CAROLINE:
THE MAKEUP ARTISTS, THE CREW, THEY ARE NOW FIGHTING FOR
BETTER REPRESENTATION, BETTER LABOR WAGES. ROMAINE:
WE WILL TALK ABOUT THAT WHILE WERE OUT HERE.
ALSO THE OTHER ISSUES GOING ON WITH FREEDOM OF SPEECH AND
CONTENT. CAROLINE: NETFLIX, THE RECENT WALKOUT.
WERE GOING TO DIG INTO ALL OF. TAYLOR:
FUN HAVING THEM OUT IN L.A.. WE ARE LOOKING AT THE STOCKS
HAVING GOOD DAYS. AMERICAN EXPRESS HEADING TO ITS
BEST DAY IN ALMOST A YEAR AFTER THIRD QUARTER SALES AND PROFIT
TOPPED ESTIMATES. DAVE, ARE YOU GETTING EXTRA
PERKS WITH THESE AMEX POINTS? DAVE: I HAVE GOTTEN A NUMBER OF
SOLICITATIONS FOR THE PLATINUM CARD. THAT'S A BIG DEAL. IT'S A BIG REASON WHY THE
COMPANY'S EARNINGS AND REVENUE, NOT MY SOLICITATIONS BUT THE
PUSH FOR THE PLATINUM CARD WHY EARNINGS AND SALES BEAT
ESTIMATES.

YOU LOOK AT THE NUMBERS IN
TERMS OF CUSTOMERS USE OF CARDS, AN INCREASE OF 37% FROM
A YEAR AGO IN TERMS OF DOLLARS. 10% JUST FROM THE SECOND
QUARTER. YOU CAN REALLY SAY THAT SPENDING IS BACK AFTER TAKING A
HIT LAST YEAR DURING THE CORONAVIRUS PANDEMIC.
ALL OF THAT COMES AT A COST. THE PLATINUM CARD, YOU PAY $695
PER YEAR. BUT, ACCESS TO JETS AND CREDITS
ON STATEMENTS. 27% OF THE REVENUE — $.22 OF EVERY DOLLAR
TURNING INTO PROFIT. WHICH WORKS TO THEIR FAVORITE. THE CARD REWARD EXPENSE WAS
HIGHER THAN ESTIMATES. NOW WE TURN TO THE INCOME SIDE.
PEOPLE USING THEIR CARDS MORE, THAT MEANS THEY MAKE MORE MONEY
FROM FEES.

AN INCREASE THEIR. THE CARD FEES, $695 FOR THE
PLATINUM CARD UP 10%. PUT THAT TOGETHER, YOU HAVE A
25% INCREASE IN REVENUE. IT'S BETTER IN TERMS OF CARD
ISSUANCE. AMEX A WHOLE LOT BETTER THAN
DISCOVER FINANCIAL. CAPITAL ONE, THEIR RESULTS ARE
DUE ON TUESDAY. WE WILL SEE IF THERE IS ANY
CARRYOVER FROM WHAT WE SEE OUT OF AMERICAN EXPRESS. TAYLOR:
WE WILL BE SURE TO GET YOU BACK. COMING UP, A BILLIONAIRE
FOUNDER AND OWNER OF THE L.A. TIMES, HE IS NEXT.
WE WILL TALK ABOUT THE EFFORT TO DEVELOP A NEW COVID-19
VACCINE AND BUILD A NEW COMPLEX IN SOUTH AFRICA. CAROLINE:
WE ARE LIVE FROM THE ACADEMY OF MOTION PICTURES IN LOS ANGELES.
A STORY DRIVEN BY OUR OWN REPORTING HAS BEEN THE
EMPLOYEES AND NETFLIX NOT PLEASED.
AFTER THE CONTROVERSIAL DAVE CHAPELLE COMEDY SPECIAL
FEATURED JOKES, TALK, AT THE EXPENSE OF TRANS PEOPLE.
SOME EMPLOYEES WALKED OUT THE COMPANY'S HEADQUARTER ON
WEDNESDAY.

THE CEO WAS DEFENDING THE
DECISION ON AIR TO STAND BY THE SPECIAL. THIS WAS ALL BLOWN OPEN BY OUR
OWN REPORTING OF WHAT THEY WERE PAYING THE SHOW FOR DAVE
CHAPELLE. ROMAINE: IT RAISES BROADER ISSUES WHEN
YOU HAVE A PLATFORM LIKE NETFLIX THAT OUT SO MUCH
CONTENT ACROSS A DIVERSE RANGE OF TOPICS AND INTERESTS.
YOU'RE ALWAYS GOOD TO HAVE A SITUATION WHERE MAYBE ONE
PERSON'S COMEDY IS ANOTHER PERSONS OFFENSE. IT SEEMS LIKE EMPLOYEES WENT TO
NETFLIX EXECUTIVES TO SAY MAYBE YOU SHOULDN'T DO THIS AND THEY
MADE IT CLEAR THAT THEY WANTED TO SUPPORT THE FREEDOM OF THESE
ARTISTS TO MAKE WHAT THEY MAKE. THAT THERE ARE CONSEQUENCES,
THEY HAVE TO DEAL WITH IT. CAROLINE:
WHAT'S INTERESTING IS THE CULTURE AT NETFLIX.
IT HAS A TRANSPARENT RADICAL OPENNESS THAT SHARES
DOCUMENTATION OF EACH OTHER'S PAY, OF DEALS STRUCK WITH
CERTAIN SHOWS. THE FLIPSIDE WAS YES WE WILL
SHARE THIS WITH YOU ONLY IF IT REMAINS WITHIN OUR FOUR WALLS.
THAT WAS BROKEN DOWN. TAYLOR: IT'S INTERESTING NOT ONLY WITH
NETFLIX, BUT IT FEELS LIKE TECH IN GENERAL, THEY HAVE THESE
CRISES WHERE THEY ORGANIZE WALKOUTS AFTER INTERNAL
DISCUSSIONS WITH CEOS AND MANAGEMENT OVER ISSUES THAT
THEY DO OR DON'T BELIEVE IN.

CERTAINLY WITHIN THE TECH
INDUSTRY, IT FEELS LIKE THIS HAPPENS A LOT. ROMAINE:
ONE THING WE'RE TRYING TO GET AT IN OUR TRIP OUT HERE TO THE
MUSEUM IS THE INTERSECTION OF ALL THIS.
YOU HAVE THE CONTENT CREATORS, THE PLATFORM, THE PEOPLE BEHIND
THE SCENES. SOMETIMES, THEY ARE IN CONFLICT
AND YOU WONDER HOW THEY MANAGED TO BRING IT ALL TOGETHER SO
THAT YOU GET THE FINAL PRODUCT IN A WAY THAT — IT'S FAIR.
CAROLINE: WE HAVE JUST SEEN THE AVOIDANCE
OF A WALK OUT MORE BROADLY THE COMMUNITY.
BUT IT'S ON THE SCENES IN MOVIES.
THAT WAS MANAGED TO BE AVOIDED, BUT IN L.A.
ON A DAY WE HAD TRAGIC NEWS OF THE FILM WITH ALEC BALDWIN
WHERE AN EXCELLENT OCCURRED, LET'S NOW PIVOT TO OUR SPECIAL
GUEST. HE IS THE FOUNDER AND CHAIRMAN AND GLOBAL CHIEF OF
HIS COMPANY. ALSO THE OWNER OF L.A. TIMES.
HE IS A MEDIA MOGUL BUT ALSO A MAN HELPING FOSTER MEDIA
PARTICULARLY HERE IN L.A.. LIKE — WHAT'S IT LIKE TO MAKE
SURE THAT THE NEWS OCCURS AND PRESENTED TO THE MARKET IN A
WAY THAT MAKES SENSE TO YOU? >> TO TAKE THE BRAND TO A NEWS
ORGANIZATION IS VERY EXCITING.

WITH THEIR EXECUTIVE EDITOR, WE
WILL BE ABLE TO SEE THE EVOLUTION OF THE NEWSPAPER.
ROMAINE: WITH REGARD TO APPETITE FOR
THAT, PARTICULARLY AT A LOCAL LEVEL IN LOS ANGELES AND EVEN
ACROSS THE COUNTRY, IS THE CONSUMER APPETITE STILL THERE? >> WE NEED TO ENGAGE.
IN LOS ANGELES, WHERE THE SPORT CENTER OF THE COUNTRY WITH THE
DODGERS, LAKERS, CLIPPERS, RAMS. WE HAVE THE MUSIC CENTER,
THE FOOD CENTER, THE ENTERTAINMENT CENTER, AND NOW
THE WEST COAST LEADS IN INNOVATION AND CLIMATE CHANGE.
THERE ARE SO MANY AREAS THAT ARE SPECIFIC TO THIS REGION BUT
ALSO WE LEAD THE NATION AND THE GLOBE AND THE OPPORTUNITY FOR
THE L.A. TIMES TO REPORT ON THAT AND THE
VOICE FOR THE PEOPLE HERE ON THE WEST SIDE OF THE NATION IS
REALLY EXCITING. CAROLINE:
WHAT'S AMAZING IS THE BREATH OF WHAT YOU COVER.
TIN EWING TO FOSTER THE WORLD OF MEDIA — MEDIA AND NEWS ALSO
THE WORK YOU HAVE DONE PREVIOUSLY.
FIGHTING CANCER, ENSURING THAT VACCINES AGAINST COVID-19 ARE
MORE ACCESSIBLE AND EMERGING MARKETS.
CAN YOU TALK US THROUGH WHAT YOU'RE FOCUSING ON? >> WHEN I SOLD THE COMPANY IN
2010, WE EMBARKED ON A TENURE PROGRAM — 10 YEAR PROGRAM.
THE COMPANY NOW WHICH WE HAVE TAKEN PUBLIC IS THE COMBINATION
OF DECADES WORTH OF WORK.

COVID, WE WERE ALREADY IN 150 PATIENTS WITH OUR VACCINE AND
CANCER AND WE VOWED TO EMBARQ ON ONE OF THE FIRST
PREVENTATIVE CANCER TRIALS AND COLON CANCER. THE DATA THAT WE HAVE NOW WITH
PANCREATIC CANCER, BREAST CANCER, LUNG CANCER, AND
BLADDER CANCER VIOLATES — ELEVATES THIS CONCEPT. IF YOU ACTIVATE YOUR IMMUNE
SYSTEM, YOU CAN CHANGE THE PARADIGM OF CANCER.
WHERE USING THAT EXACT SAME APPROACH FOR COVID.
IN ORDER TO ADDRESS THE PANDEMIC AND COVID, WE NEED TO
STOP THE TRANSMISSION. ROMAINE: REALLY IMPORTANT STUFF.
I WISH WE HAD MORE TIME WITH YOU.
WE APPRECIATE YOU TAKING THE TIME TO BE WITH US. THAT'S THE FOUNDER OF IMMUNITY
BIO. WE ARE OUT HERE IN LOS ANGELES
ATOP THE ACADEMY MUSEUM OF MOTION PICTURES.
A BEAUTIFUL DAY.

CAROLINE: PART OF THE MUSEUM HAS BEEN
OPEN FOR A COUPLE OF WEEKS. WONDERFUL NEW EXHIBITS THAT YOU
HAVE TO COME SEE. GO ONTO INSTAGRAM, TWITTER.
CHECK OUT THE BEHIND-THE-SCENES GOING ON HERE IN A LIGHT. THIS IS BLOOMBERG. ANNOUNCER:
THE MOST CRUCIAL MOMENTS IN THE TRADING DAY.
THIS IS "BLOOMBERG MARKETS: THE CLOSE."
WITH CAROLINE HYDE, ROMAINE BOSTICK, AND TAYLOR RIGGS. CAROLINE:
WE ARE LIVE FROM THE AMERICAN ACADEMY OF MOTION PICTURES.
ONE HOUR LEFT IN TRADING. ROMAINE:
WE HAVE A LOT TO TALK ABOUT IN TERMS OF WHAT IS HAPPENING IN
THE MARKET AS WELL AS OUTSIDE THE MARKET.
THE DIRECTOR OF THIS MUSEUM IS GOING TO JOIN US LATER THIS
HOUR.

CAROLINE: LET'S CHECK IN ON WHAT'S
HAPPENING WITH THE MARKETS. TAYLOR:
I AM TRYING TO BE ALL OVER. WE'RE LOOKING AT THE WINNERS
AND LOSERS. BOND YIELDS ARE FALLING ACROSS
THE BOARD. YOU ARE GETTING A MIXED.
TECHNOLOGY IS THE LAGGARD ON THE DATE.
IT'S PULLING DOWN EVERYTHING WITH IT. MATTEL IS HIGHER — IT WAS
SNAP IS NOT HAVING A GOOD DAY. ONE OF THE WORST DAYS ON RECORD
GIVEN THE SUPPLY CHAIN AND THE IMPACT FROM THE APPLE IOS
SYSTEM. ANALYSTS ARE SAYING INTEL
CONTINUES TO HAVE A SERIES OF PICKUPS BUT THAT MEANS IT'S
GOOD NEWS FOR AMD. CAROLINE:
THE MOOD MUSIC SURROUNDING THE MARKET IS ONCE AGAIN FOCUSED ON
INFLATION. WHAT DOES THAT MEAN IN TERMS OF
POLICY? JAY POWELL SOUNDS LIKE HE MAY
BE MORE WORRIED ABOUT INFLATION THAN PREVIOUSLY THOUGHT. >> NO ONE KNOWS WHERE INFLATION
IS GOING TO BE NEXT YEAR.

IF WE FORECAST TO RAISE THE
RATE NOW AND WE DO THAT, THEN WE HAVE BRIDLED THE ECONOMY AND
IF WE ARE WRONG AND INFLATION COMES BACK DOWN, THEN WE HAVE
BRIDLED THE ECONOMY WITH MILLIONS OF WORKERS ON THE
SIDELINES NOT ABLE TO COME BACK IN. THAT'S A COST TO THEM.
THE OTHER THING I WOULD LIKE TO MENTION IS A COST TO US AS THE
ECONOMY. CAROLINE: HER BUTTON IS ALMOST AS NICE AS
YOURS. ROMAINE: IT'S BEAUTIFUL. I SHOULD START THAT TREND.
CAROLINE: MEANWHILE, WE TALK ABOUT THE
TREND OF INTEREST RATES. IT'S WONDERFUL TO BE HERE LIVE
IN CALIFORNIA WITH YOU. >> I LIVE ABOUT FIVE MILES AWAY.
IT TOOK ME ABOUT 90 MINUTES TO GET HERE.

[LAUGHTER] CAROLINE:
IT'S HILARIOUS HOW LONG IT TAKES TO GET EVERYWHERE.
EXTRAORDINARY HOW LONG IT TAKES TO GET YOUR GOODS ANYWHERE AT
THE MOMENT. WE WERE AT THE PORT OF LONG
BEACH YESTERDAY. HOW IS THAT INFECTING —
AFFECTING WHERE YOU INVEST? >> THERE'S NO QUESTION
INFLATION IS THE PROBLEM OF THE DAY.
THE THING ABOUT COVID IS, IT'S AN EQUAL OPPORTUNITY PAIN IN
THE BUT. IT'S AFFECTING SUPPLY-SIDE AND
DEMAND-SIDE. YOU HAVE PANDEMIC RELATED
PICKED UP DEMAND ISSUES, LABOR SHORTAGES.
THEN YOU ADD OIL AND WHETHER ON TOP OF THAT. EACH OF THESE PRESSURES HAS A
DIFFERENT SOURCE, A DIFFERENT HALF-LIFE.
AND A DIFFERENT REMEDY TO JULIE. WE SEE THEM MAINLY AS
TRANSITORY. THE LABOR WAGE ISSUE IS CLEARLY
THE DOMINANT PRESSURE. CHAIRMAN POWELL NOTED THAT IN
HIS COMMENTS. WE ARE THAT CAREFULLY. ROMAINE:
LET'S TALK ABOUT CHAIRMAN POWELL AND HOW THE FED REACTS
TO THIS.

DO YOU NORMALIZE FED POLICY IN
THIS ENVIRONMENT OR DO YOU WAIT FOR MORE EVIDENCE? >> ACCORDING TO THE NEW
PLATFORM, THE NEW TARGETING POLICY, THEY WILL HAVE TO WAIT
A LITTLE LONGER. I DON'T PRETEND TO KNOW EXACTLY
WHAT THEY ARE TAPERING. THAT LEAVES OPEN THE WINDOW FOR
THEM TO HIKE MID 2022 IF NECESSARY.
WE DON'T SEE IT COMING BEFORE THAT. THE INFLATIONARY PRESSURES
THERE ARE DIFFERENT ONES AND MANY MAY SETTLE DOWN IN THE
NEXT FEW MONTHS.

CAROLINE: MEANWHILE, YOU HAVE TO WHETHER
THE TREND — GYRATIONS IN THE MARKET. WE HAVE SUDDENLY PRESSURE ON
YIELDS. WHAT DO YOU DO IN TERMS OF A
MULTIPLE ASSET APPROACH? ARE YOU CHANGING THINGS FROM A
MANAGEMENT PERSPECTIVE? >> WE REMAIN NEUTRAL ON OUR
OVERALL VALUATIONS. THE GLASS IS HALF EMPTY HAVE
FULL. I LOVE THE ARNOLD PALMER. IN YOUR FIXED INCOME
PORTFOLIOS, HERE'S WHERE YOU CAN TUNE IT, DILUTE IN BETTER.
WE REMAIN SHORTER IN DURATION. IN NOMINAL AND REAL TERMS.
SHORT-TERM DIPS SO YOU'RE COVERED ON THE INFLATION AND
STRAIGHT ASPECT. ON THE EQUITY SIDE, — ROMAINE:
SO YOU ARE SHORTENING THE DURATION, BUT IS THE VALUE
STILL THERE? >> YES, OUR STOCK BOND
ALLOCATION, WE ARE STANDING AT WHATEVER OUR NEUTRAL OR
STRATEGIC LONG-TERM ALLOCATION IS FOR THE PORTFOLIO WE ARE
TALKING ABOUT.

WITHIN THE EQUITY PORTFOLIOS,
OR TRYING NOT TO GET TOO CUTE BY FIGURING OUT WHICH SECTORS
HAVE PRICING POWER. YOU DON'T KNOW WHICH OF THE
INFLATION SHOCKS ARE GOING TO AFFECT THE EQUITY SECTORS.
IF IT'S OIL, THAT'S DRASTICALLY DIFFERENT THAN IF IT'S SUPPLY.
WE ARE LEANING TOWARD SMALL-CAP STOCKS. YOU HAVE A VALUATION MORE
ATTRACTIVE IN THAT SECTOR THAN POSSIBLY IN LARGER CAP SECTORS.
THAT'S WHERE WERE LEANING. CAROLINE:
IS GOLD WORKING FOR PEOPLE AT THE MOMENT?
DARE I SAY CRYPTOCURRENCY. ARE YOU LOOKING AT MORE VARIED
TYPE OF ASSET ALLOCATION? >> GOLD, A GREAT SAFE HAVEN.
WHEN THE STUFF HITS THE FAN, GOLD IS ONLY PLACE TO GO.
OR UNDER YOUR MATTRESS.

YOU CAN'T MANAGE A PORTFOLIO TO
THE WORST CASE SCENARIO. GOLD HAS BEEN AROUND A LONG
TIME. BITCOIN IS NO GOLD. IT IS NOT A SAFE HAVEN, QUITE
THE OPPOSITE. ALTHOUGH IT APPEARS TO DO WELL
ON THE PANIC HITS THE MARKET, I WOULDN'T ON BITCOIN FOR A SAFE
HAVEN ASSET. THE ECONOMY IS DOING WELL.
WE ARE RECOVERING. U.S. AND GLOBAL ECONOMIES, WE ARE
RECOVERING NICELY. WE HAVE A LITTLE BIT OF FEVER
IN TERMS OF INFLATION, BUT RECOVERING SMARTLY. U.S. ECONOMIC GROWTH IS EXPECTED TO
BE 5.5% IN REAL TERMS. THINK BACK TWO YEARS AGO, WE WOULD
HAVE KILLED FOR 4% REAL GROWTH. OVERALL, WE ARE DOING WELL FOR
RECOVERING ECONOMY.

NO REASON TO PANIC.
CERTAINLY NO REASON TO RUN TO YOUR MATTRESS. CAROLINE:
GREAT TO HAVE YOU HERE AND WE LOVE YOUR SENSE OF HUMOR.
LET HIM GET BACK TO HIS HOUR AND A HALF COMMUTE FIVE MILES
FROM HERE. TAYLOR: IN NEW YORK, WE CAN AVOID THOSE
PESKY COMMUTES. COMING UP, WE ARE KEEPING A
CLOSE EYE ON THE MARKETS. OUR GUEST IS A FUND PORTFOLIO
MANAGER.

PLUS, WE WILL BE SPEAKING WITH
CHIPOTLE CEO. HIS OUTLOOK FOR THE FOURTH
QUARTER AND WHY BRISKET IS LEAVING THE MENU.
AND WE WILL SPEAK WITH THE COFOUNDER OF THE NATIONAL
WOMEN'S SOCCER LEAGUE TEAM ANGEL CITY WITH HER PARTNER
ACTRESS NATALIE PORTMAN. ALL THAT AND MORE COMING UP.
THIS IS BLOOMBERG. TAYLOR:
WE ARE COMING OFF THE HIGHS. WE HAD A RECORD HIGH YESTERDAY.
WE ARE SIX POINTS FROM THAT. THE NASDAQ AND TECHNOLOGY IS
THE UNDERPERFORMER TODAY. BOND YIELDS ARE FALLING.
THAT'S TYPICALLY THE RELATIONSHIP THAT WE DON'T SEE. VOLATILITY IS GOING NOWHERE.
WHAT — LET'S DO ALL OF THIS AND MORE IN OUR OPTIONS INSIGHT.
JOINING US NOW IS FRANCIS STACY.

WITH NO VOLATILITY, YET WE ARE
NEAR RECORD HIGHS, WHAT IS THIS CLIMBING THE WALL OF WORRY? >> WE ARE IN EVERY DAY.
EVEN THOUGH VOLATILITY HAS BEEN BACKING OFF, YOU HAD A LITTLE
BIT OF UPTICK IN THE SKEW FROM OCTOBER 5 THROUGH 15TH.
PEOPLE ARE BUYING OUT OF THE MONEY PROTECTION.
THAT'S CLIMBING THE WALL OF WORRY.
STILL, I DON'T SEE MUCH SELLING MOMENTUM TODAY GIVEN THE FACT
THAT WE HAVE JUST HIT ALL-TIME HIGHS.
MARKETS HAVE MOSTLY PRICED IN THE TAPER CONVERSATION AND THEY
THINK THAT JAY POWELL IS GOING TO START TAPERING IN NOVEMBER.
MARKETS ARE PRICING IN AND BALANCE SHEETS AND EARNINGS ARE
ABSORBING THESE WORRIES QUITE NICELY.

TAYLOR:
ARE YOU TAKING ADVANTAGE THROUGH TRADE?
WE HAVE BEEN LOOKING AT OIL A LOT. >> OIL IS INTERESTING BECAUSE
OIL HAS LOW STOCKPILES AT THIS POINT. WITH INCREASING DEMAND. IF WE HAD PEAK DELTA VIRUS
CASES IN Q3, WE HAD A POTENTIAL FOR RATE ACCELERATION FROM Q3
TO Q4. THE LIKELIHOOD OF THAT WILL BE
DEPENDENT ON THURSDAY GDP NUMBER.
IN THAT CASE, YOU HAVE A LOT OF DEMAND WITH LOW STOCKPILES.
THE LAST TIME THAT OCCURRED, OIL WENT UP TO $100 PER BARREL.
TAYLOR: WE ARE SEEING IT TRADE HERE
WITH USO. CAN YOU WALK US THROUGH THAT? >> YES.
IN THE SHORT-TERM, OIL IS OVERBOUGHT SO OUR TRADE IS NOT
GOING TO BE DIRECTIONAL. WE LIKE USO. WE ARE BUYING THE USO DECEMBER
17 56 CALLS AND PUTS. TAYLOR: WONDERFUL.
WE APPRECIATE YOUR TIME. IT'S THE REFLATION TRADE THAT
CONTINUES TO REMAIN EN VOGUE. COMING UP, WE GOING TO TALK
ABOUT INFLATION WITH CHIPOTLE.

WE ARE LOOKING AT SHARES
TRADING LOWER TODAY AFTER THE CHAIN BEAT TOP SALES ESTIMATES.
WHAT'S COMING FOR THE FOURTH QUARTER?
WE ARE GOING TO HEAR IT ALL FROM CHIPOTLE CEO.
BUT BEFORE THAT, BEHIND THE SCENES WITH CAROLINE AND REMAIN
AT THE ACADEMY MUSEUM IN LOS ANGELES. CAROLINE: THE MOVIE INDUSTRY, TV TRIBUTE
A LOT TO THE ECONOMY. WAGES, JOBS, 90,000 COMPANIES
SUPPORTED BY THIS. ROMAINE: A LOT OF THAT IS DEPENDENT ON
GETTING PEOPLE IN THE SEATS THEATERS.
WE ARE AT THE ACADEMY MUSEUM IN LOS ANGELES.
IT ALL STARTS WITH CONTENT AND THE FOLKS WHO MAKE IT. CAROLINE:
WE WILL BE TALKING ABOUT THE FUTURE OF CONTENT.
THE WAY IN WHICH YOU PAY FOR CONTENT AND THE CREATORS.
PERHAPS TRIP TO ACTION. TAYLOR:
DOES THIS MEAN CONCERN OVER SHARES OF CHIPOTLE FOR THE
FOURTH QUARTER. THEY ALREADY RAISED THEIR
PRICES EARLIER THIS YEAR. WE ARE GETTING A PLANT-BASED
CHORIZO. NO MORE CAULIFLOWER RICE FOR ME.
LET'S DO IT ALL WITH THE CEO OF CHIPOTLE.

TALK TO US FIRST ABOUT
FOURTH-QUARTER OUTLOOK. >> THANKS FOR HAVING ME. GOING FORWARD, WE ARE DEALING
WITH A SIMILAR CHANGES — CHALLENGES YOU ARE SEEING
ACROSS THE INDUSTRY IT'S A DIFFICULT LABOR MARKET AND THE
SUPPLY CHAIN CONTINUES TO BE UNDER PRESSURE. WE ARE PRETTY CONFIDENT ABOUT
HOW WE CAN NAVIGATE THE HEADWINDS OVER THE COMING
MONTHS. AND KEEP OUR LONG-TERM PLANS IN
PLACE WHICH IS GETTING AFTER $3 MILLION AVERAGE UNIT VOLUMES.
ADDING OVER 3 MILLION RESTAURANTS IN THE FUTURE AND
— ADDING RESTAURANTS OVER THE FUTURE AND HAVING MARGINS TO GO
WITH THAT. CAROLINE: YOU HAVE BEEN VERY TRANSPARENT
ABOUT RAISING THEIR PRICES. BECAUSE YOU WANTED TO PAY MORE
FOR LABOR. WHAT ELSE ARE YOU HAVING TO
COME UP WITH TO ATTRACT NEW PEOPLE TO COME UP WITH YOU AND
NOT MOVE SOMEWHERE ELSE OR DEMAND HIGHER WAGES? >> ONE OF THE THINGS THAT WE
HEAR RECENTLY IS IT'S A BIG DEAL. WE HAVE TO DO A BIG JOB OF
COMMUNICATING THAT. AS WELL AS THE GROWTH
OPPORTUNITY IN OUR COMPANY. THE IDEA THAT WE'RE GOING TO
ADD 3000 RESTAURANTS MEANS YOU CAN GO FROM BEING A CREWMEMBER
TO A MANAGER TO A MULTIPLE UNIT LEADER IN SHORT ORDER.
THAT MEANS TREMENDOUS PROFESSIONAL GROWTH AND
PERSONAL GROWTH.

WE NEED TO MAKE SURE WE GET
ACROSS THE GROWTH STORY FOR THEM AS MUCH AS THE GROWTH
STORY FOR OUR COMPANY. WE HAVE TO KEEP AN EYE ON WAGES
AND THE BENEFITS WE PROVIDE. WE WANT TO BE A LEADER.
WANT PEOPLE TO FEEL GREAT AND FULL OF PRIDE THAT THEY WORK AT
CHIPOTLE. WE HAVE TO DELIVER THE TOTAL
PACKAGE. WE ARE FORTUNATE THAT WE ARE
COMPANY BASED ON THE SIMPLE PURPOSE OF FOOD WITH INTEGRITY.
WE ARE ALSO FORTUNATE TO BE A COMPANY THAT HAS THE PRICING
POWER AND THE BALANCE SHEET TO MOVE WAGES IF WE NEED TO AND
HANDLE OTHER INPUT COSTS THAT MAY COME OUR WAY. ROMAINE: ON THE LABOR ISSUE, WHERE YOU
STAND WITH STAFFING? ARE YOU WHERE YOU NEED TO BE
ACROSS THE STORES? >> WE ARE IN A PRETTY GOOD SPOT.
THE BULK OF OUR RESTAURANTS, THE MAJORITY ARE STAFFED AND IN
GREAT SHAPE.

ALSO THE DIGITAL AND FRONTLINE
BUSINESS. WE HAVE A COUPLE HUNDRED
RESTAURANTS WHERE WE CONTINUE TO BE CHALLENGED WITH STAFFING
AND THEY ARE SPRINKLED ACROSS THE COUNTRY.
WE'RE WORKING CLOSELY WITH OUR TEAMS AND OUR LEADERS IN THOSE
MARKETS TO GET THOSE RESTAURANTS STAFFED.
IT TAKES DIFFERENT THINGS. WE ARE DIGGING INTO IT AND
MAKING SURE WE ARE PROVIDING THE RIGHT INCENTIVES TO GET
PEOPLE TO JOIN THE BUSINESS WHERE WE ARE UNDERSTAFFED.
THEN, RETAIN 100,000 EMPLOYEES THAT WE CURRENTLY HAVE.
THAT IS EQUALLY AS IMPORTANT TO US TO DEVELOP AND RETAIN THE
EMPLOYEES WE HAVE. TAYLOR: YOU PUT PLANT-BASED ITEMS ON
THE MENU, ARE YOU GOING TO TAKE THEM OFF ARE YOU JUST TESTING
OUT THE CONSUMER APPETITE? >> WE GOT TREMENDOUS
INGREDIENTS AND I'M GLAD YOU LIKED THE CAULIFLOWER RICE.
I WAS A FAN AS WELL. THE PLANT-BASED CHORIZO IS
GOING TO BE A LIMITED TIME OFFER AS WELL. IT IS FABULOUS.
I HAD THE OPPORTUNITY TO GO TEST IT OUT IN A COUPLE MARKETS.
I WILL GIVE YOU AN INSIDE TIP, THE CHORIZO WITH A LITTLE WHITE
RICE AND SOME QUESO IN A BURRITO IS TOUGH TO BE.
IT'S REALLY GOOD.

OUR GUYS DO A TERRIFIC JOB.
WE WILL CONTINUE TO KEEP THE CURRENT INGREDIENTS DELICIOUS
AND FIND WAYS TO BRING ON NEW INGREDIENTS WHERE IT MAKES
SENSE. CAROLINE: WE WERE JUST DOWN AT THE PORT
OF LONG BEACH YESTERDAY TALKING ABOUT EXTRAORDINARY THINGS
GOING ON IN TERMS OF SUPPLY CHAIN.
YOU TALKED ABOUT THE DIFFICULTY NAVIGATING IT.
WHAT ARE SOME OF THE MOST WHILE THINGS YOU ARE HAVING TO DO —
WILD THINGS YOU HAVE TO DO TO GET THINGS INTO YOUR
RESTAURANTS IN THE U.S. OR ELSEWHERE? >> I CAN SEE THE PORT OF LONG
BEACH FROM WHERE WE LIVE AND IT'S AMAZING TO SEE THE SHIPS
SENDING OUT THERE WAITING TO GET IN.

THE TEAM DID A GREAT JOB OF
BUYING ADDITIONAL HVAC AND CHAIRS AND TABLES TO OPEN NEW
RESTAURANTS SO WHEN WE REALIZED IT WAS GOING TO TAKE LONGER TO
GET THESE GOODS, WE PRE-BOUGHT THEM SO WE COULD CONTINUE TO
OPEN RESTAURANTS AT A GOOD CLIP. I HAVE TO HAND IT TO OUR SUPPLY
CHAIN TEAM. OUR LEADER CARLOS HAS DONE
FABLESS JOB WORKING WITH OUR PARTNERS TO BRING GREAT
PRODUCTS BRISKET, BUT ALSO TO KEEP US IN STOCK WITH CHICKEN.
WE ARE IN CONSTANT COMMUNICATION WITH OUR KEY
SUPPLIERS AND PARTNERS.

KIND OF LIKE AN EVERYDAY EVERY
WEEK THING TO HOW YOU CONTINUE TO KEEP THE SUPPLY FLOWING AND
KEEPING OUR CUSTOMERS HAPPY AND KEEPING THE RESTAURANTS ROLLING.
ROMAINE: GETTING CREATIVE. WE THANK YOU SO MUCH.
THE CEO OF JUUL PUBLIC, STAY WELL. I AM MARK CRUMPTON.
THIS IS BLOOMBERG. ♪ >> THE MOST CRUCIAL MOMENTS
IN THE TRADING DAY. THIS IS "BLOOMBERG MARKETS: THE
CLOSE," WITH CAROLINE HYDE, ROMAINE
BOSTICK, AND TAYLOR RIGGS. CAROLINE:
LIVE FROM HOLLYWOOD AND THE ACADEMY MUSEUM OF MOTION
PICTURES, TO BE PRECISE, THIS IS A SPECIAL EDITION OF
"BLOOMBERG MARKETS: THE CLOSE." ENTERTAINMENT EDGE.
I'M CAROLINE HYDE. ROMAINE: YOU CAN SEE HOLLYWOOD IN THE
HILLS, IN THE BACKGROUND. WE ARE OVERLOOKING WILTSHIRE
BOULEVARD ATOP THE MUSEUM. WE HAVE HALF AN HOUR BACK IN
THE TRADING DAY AND WE WILL GET BACK TO OUR CONVERSATION IN LOS
ANGELES, BUT I WANT TO JUMP OVER TO NEW YORK, ALSO
BEAUTIFUL, TAYLOR KEEPING AN EYE ON THE MARKETS. TAYLOR:
WE ARE TRYING TO HOLD ONTO SOME OF THE RECORDS WITHIN THE S&P
YESTERDAY.

THERE IS A LITTLE MORE GREEN ON
THE SCREEN THAN RED, BUT TECHNOLOGY IS ON THE BOTTOM AND
DRAGGING EVERYTHING DOWN WITH IT. REAL ESTATE, UTILITIES, YOU
NAME IT, ALL IN THE GREEN. BONDS ARE CLIMBING, WHICH MEANS
YIELDS ARE FALLING. I MENTION TO TECHNOLOGY, AND
WOW, 100% ON THE DAY. SINCE IT LAUNCHED, 1128.
$91 A SHARE. GREW 1300%-SOMETHING IN SEVEN
DAYS. LET'S TAKE A LOOK AT IT UPON
MEET — BEYOND MEAT. GETTING A REDUCED DEMAND ON
SOME OF THEIR ORDERS WITH SUPPLY CHAIN ISSUES. NAVIGATING THE SUPPLY ISSUES
PRETTY WELL. CAROLINE: LOVE THE INFORMATION.
LET'S TALK ABOUT CALIFORNIA. LARGEST STATE ECONOMY IN THE
UNITED STATES. OUR GUEST KNOW SOMETHING ABOUT
CAPITAL IN LOS ANGELES AND LOOKING FOR OPPORTUNITY ON TECH.
SHE IS NATALIE PORTMAN'S BUSINESS PARTNER AND COFOUNDER OF THE FIRST MAJORITY
WOMAN-OWNED SPORTS LEAGUE IN THE UNITED STATES.
SHE IS ALSO SOMEONE VERY FOCUSED ON DIVERSITY.
LET'S TALK FIRST AND FOREMOST ABOUT WOMEN-LED SPORT.
IT IS TOTALLY CHANGING THE GAME HERE, AND I LOVE IT. >> WELL, WE TOOK A LOOK AROUND
AND STARTED OUT AS FANS, AND I WENT TO THE 2015 WOMEN'S WORLD
CUP IN VANCOUVER AND TRIED TO BUY A BUNCH OF JERSEYS FOR MY
DAUGHTERS — I HAVE THREE DAUGHTERS, AS WELL AS WATCH
CONTENT ONLINE.

I COULDN'T FIND ANY OF IT.
I AM ON A MULTIYEAR JOURNEY TO FIGURE OUT WHY AND I AM HAPPY
TO TELL YOU MORE ABOUT THAT. ONE DAY NATALIE PORTMAN TEXTED
ME AND SAID WHY DON'T WE START A TEAM, WHY DON'T WE BUY A TEAM?
ANNALEE AND I HAD JUST GOTTEN TO KNOW EACH OTHER BY
SUPPORTING THE PAY EQUITY — NATALIE AND I HAD JUST GOTTEN
TO KNOW WHICH OTHER BY SUPPORTING PAY EQUITY FIGHT.
NATALIE BROUGHT HER ACTRESS FRIENDS BECAUSE THEY HAVE BIG
INSTAGRAM FOLLOWINGS AND THE LIKE.
IT STARTED AS PURE ACTIVISM ENTERED INTO A BUTTERFLY EFFECT
THAT TURNED INTO MORE WOMEN OWNERS COMING IN AND THE
BUSINESS SIDE TAKING OFF. IT STARTED WITH FRIENDSHIP AND
FANSHIP, AS PLAYERS LIKE TO CALL IT. ROMAINE: WHAT IS THE REACTION FROM THE
FAN SIDE? KARA: IT IS ABSOLUTELY MIND BLOWING.
I PINCH MYSELF EVERY TIME I WALK INTO LAX STADIUM.

WE HAVE SOLD 11,000 SEASON
TICKETS CAN WHICH IS MORE THAN SEVERAL OTHER PROFESSIONAL
TEAMS IN LOS ANGELES. WE SOLD OUT PREMIUM SEATS IN
THREE DAYS. IT IS OUR COMMUNITY THAT MAKES
THAT HAPPEN. WE SAW THEM IN THE STANDS WITH
THE SIGN "BRING THE WOMEN TO L.A."
AND THEY MADE IT ALL POSSIBLE. CAROLINE:
IT NEEDS FANS BECAUSE THAT IS WHERE THE MONEY COMES IN.
THE CONTENT HAS TO SELL TO BE ABLE TO REACH — THAT HAS
ALWAYS BEEN THE ARGUMENT, HASN'T IT, WHY WOMEN DON'T MAKE
SO MUCH IN TENNIS.

WHY WOMEN AREN'T MAKING THE
SAME IN ALL SPORTS. THE ARGUMENT IS YOU NEED THE
RIGHT SORT OF VIEWERS. WHAT KIND OF ECONOMICS TELL YOU
THIS IS WHY WE SHOULD HAVE EQUITY? KARA:
SPORTS REALLY COMES TO THREE PRIMARY REVENUE STREAMS, WHICH
YOU PROBABLY KNOW. SPONSORSHIP, TICKETING, MEDIA
REVENUE. FOR YEARS, I WAS RUNNING AROUND
SAYING WE DO BETTER IN ALL THREE OF THOSE AREAS AND PEOPLE
SAID NO, NO, NO, PEOPLE DON'T WANT TO WATCH. ULTIMATELY WE JUST STARTED —
WE JUST HAVE TO BELIEVE THEY ARE WRONG.

THE STAT I LEANED INTO WHEN I
STARTED THE TEAM WITH NATALIE PORTMAN IS ONLY 4% OF SPORTS
COVERAGE GOES TO WOMEN'S SPORTS. IF YOU DON'T KNOW IT EXISTS,
YOU DON'T KNOW TO BUY A TICKET CAN YOU DON'T GET THE
SPONSORSHIP DOLLARS. IT IS EITHER A VICIOUS CYCLE OR
A VIRTUOUS CYCLE. IN OUR INITIAL CASE WE SET AT
LEAST A THOUSAND TICKETS. — 8000 TICKETS.
WE GET SPONSORSHIPS AT A CERTAIN LEVEL.
AND THAT WOULD MAKE THESE TEAMS WITH HUNDREDS OF MILLIONS OF
DOLLARS.

I AM HAPPY TO GO THROUGH OUR
NUMBERS. WE HAVE SHOWN THAT IN A COUPLE
OF THE REVENUE STREAMS THAT HAVE — AS HAVE OTHERS IN THE
LEAG UE. CAROLINE: WE WERE TALKING TO BYRON ALLEN,
WHO IS PERHAPS USING A MORE AGGRESSIVE STANCE TO PUSH FOR
MORE ADVERTISING DOLLARS TO GO TO BLACK-OWNED MEDIA.
HOW DO YOU SEE ADVERTISING DOLLARS AND SPONSORSHIP GOING
TO WOMEN-OWNED MEDIA, BRANDS, ENTREPRENEURS?
ARE WE STILL TALKING ABOUT TSUNAMI THAT IS YEARS AWAY?
KARA: FROM A BUSINESS STANDPOINT IT
IS FASCINATING, BECAUSE YOU HAVE TRADITIONAL SPONSORS THAT
HAVE COME INTO SPORTS AND WE ARE FORTUNATE TO HAVE MANY OF
THEM — HEINEKEN, GATORADE, ETC.

DOORDASH IS IRA JERSEY SPONSOR.
IT IS AN 8-FIGURE DEAL, THE LARGEST IN WOMEN'S SPORTS, AS
BIG OR BIGGER THAN MANY ON THE MEN'S SIDE OF THE LEAK.
WHAT WE ARE SEEING IS A WHOLE NEW WAVE OF SPONSORS COME IN. WE HAVE PEOPLE LIKE RITUAL AND
COMPANIES LIKE THAT THAT HAVE NEVER COME IN AND SPONSORED
SPORTS FOR, WOMEN'S FRIENDS. AND WE KNOW WOMEN'S CONSUMPTION
IS MUCH HIGHER THAN MEN'S. WE ARE SEEING THAT CHANGE AND
WE ARE SEEING AT ACROSS THE TECH LANDSCAPE AS WELL MORE
ODDLY. ONE — MORE BROADLY. WE HAVE TRIED TO SHOW THAT IT
GOES HAND-IN-HAND WITH CAPITALISM AND CREATES A
VIRTUOUS CYCLE BIT FOR EVERYONE OF OUR SPONSORS WE DONATE 10%
TO LOCAL COMMUNITY CAUSES. WITH DOORDASH WE ARE SOLVING
FOR FOOD INSECURITY AND WE DELIVER 50,000 MEALS BY THE END
OF THE YEAR AND IN OTHER PLACES WE ARE CREATING PATHWAYS FOR
WOMAN PLAYERS TO GO INTO THE BUSINESS SIDE OF THE OPERATION.
ANYWAY, YOU ARE SEEING DOLLARS GO INTO WOMEN'S SPORTS IN A WAY
YOU HAVE NEVER SEEN IT HAPPEN BEFORE.

ROMAINE:
YOU'RE OBVIOUSLY A BIG PART OF THAT.
KARA, REALLY GREAT TO SEE YOU. UNTIL CITY COFOUNDER AND
UPFRONT VENTURES MINUTE — ANGEL CITY COFOUNDER AND
UPFRONT VENTURES MANAGING PARTNER.
CAN YOU GO DOWN TO THE CLOSING BELL IN NEW YORK.
DON'T GO ANYWHERE. YOU ARE WATCHING BLOOMBERG. ROMAINE:
THIS IS "BLOOMBERG MARKETS: THE CLOSE."
WE ARE COUNTING YOU DOWN TO THE CLOSING BELL LIVE FROM LOS
ANGELES, TOP OF THE ACADEMY MUSEUM OF MOTION PICTURES.
CAROLINE: WE ARE TALKING ABOUT CONTENT,
THAT BEING KING, LABOR ISSUES NOT JUST THE WORLD OF CONTENT,
BUT RESTAURANT GROWTH, AND WHAT THE SUPPLY ISSUES MEAN FOR THE
WORLD OF INVESTMENT. ROMAINE: LET'S TALK ABOUT WHAT IS
HAPPENING IN THE MARKETS AND GET PERSPECTIVE. A PORTFOLIO MANAGER JOINING US
NOW, ALSO EDITOR OF "THE PRUDENT SPECULATOR."
WE HAVE BEEN TALKING ABOUT THE ONE THING THAT IS ON EVERYONE'S
MINDS IF YOU ARE AN INVESTOR, THAT IS INFLATION, NOT JUST
WHETHER IT IS TRANSITORY, BUT WHETHER IT WILL HAVE A MATERIAL
IMPACT ON PEOPLE ALLOCATING CLOSING >> THE INTERESTING
THING IS IF YOU LOOK AT THE DATA, WHICH WE DO, WE ARE
STUDENTS OF MARKET HISTORY, YOU SEE THAT HIGHER INFLATION RATES
IS NOT A BAD THING FOR THE EQUITY MARKETS ON AVERAGE.
THERE IS ALWAYS DIVERGENCE IN THE MAX AND MIN RETURNS.
STOCKS HAVE DONE WELL WITH HIGHER INFLATION RATES AND
HIGHER INTEREST RATES.

INTEREST RATES ARE
EXTRAORDINARILY LOW TODAY. WHEN I MEAN HIGHER INTEREST
RATES, WE ARE NOT TALKING 5%, 6%, 7% 10-YEAR TREASURY.
INTEREST RATES ARE EXTRAORDINARILY ATTRACTIVE AT
THIS LEVEL AND MAKE STOCKS APPEALING. CAROLINE:
WE ARE NOT GETTING CUTE, TO TURN OF PHRASE.
TRYING TO PICK INDUSTRY WINNERS WITHIN THIS INFLATIONARY
PRESSURE, BECAUSE YOU DON'T KNOW WHICH PART IS GOING TO POP
NEXT. DO YOU AGREE WITH THAT? ARE PEOPLE NOT TRYING TO LOSE
OUT IN ENERGY OR FOOD? JOHN: WE HAVE A BROADLY DIVERSIFIED
PORTFOLIO TO BEGIN WITH, SO WE ARE NOT MAKING MAJOR SHIFTS IN
OUR ALLOCATION BECAUSE OF INFLATION.
ENERGY STOCKS HAVE GONE WELL AND COMMODITY-EXPOSED STOCKS
HAVE DONE WELL. IF YOU ARE INTERESTED IN GOLD,
WHICH HAS NOT HAD A MASSIVE MOVE UP — PEOPLE ARE WORRIED
ABOUT INFLATION, BUT HE MIGHT THINK GOLD WOULD POP A LITTLE
BIT FURTHER. THESE DAYS AGO CURRENCIES A–
CRYPTOCURRENCIES ARE A WAY CAN EXPRESS CONCERN. ROMAINE:
DEFINITELY GOT TO GET YOUR THOUGHTS ON CRYPTO.
THAT IS MUSIC TO OUR EARS. A CONVERSATION WITH JOHN
BUCKINGHAM, PORTFOLIO MANAGER FOR KOVITZ. ALMOST 1:00 P.M.
IN LOS ANGELES AND 4:00 P.M.

IN NEW YORK.
CLOSING DOLLARS ARE UPON US. COUNTING YOU DOWN TO THE CLOSE
FROM LOS ANGELES, NEW YORK, TO OUR VIEWERS WORLDWIDE, THIS IS
BLOOMBERG. CAROLINE:
THIS IS THE COUNTDOWN TO THE COAST LIVE FROM THE ACADEMY
MUSEUM OF OCEAN PICTURES. –MOTION PICTURES.
BEAUTIFUL DAY IN HOLLYWOOD. I AM CAROLINE HYDE. ROMAINE: I AM ROMAINE BOSTICK MARKETS
UNCHANGED ACROSS THE BOARD, TAYLOR. TAYLOR: I THINK ON THE S&P 500,
TYPICALLY — I JUST WANTED TO SHOW A WEEKLY CHART, ESPECIALLY
THE BIG LOSSES WITHIN TECHNOLOGY.
DOWN ABOUT ONE TO 1.5%. STILL UP FOR THE WEEK ACROSS
ALL THE MAJOR AVERAGES FOR THE SECOND STRAIGHT WEEK.
WE ARE POSTING BACK TO MY GAINS, ROMAINE
BOSTICK–BACK-TO-BACK GAINS, ROMAINE. ROMAINE:
SO WHAT IS HIS PORTFOLIO MANAGER FOR –STILL WITH US IS
PORTFOLIO MANAGER FOR KOVITZ. YOU IS TOUCHED ON
CRYPTOCURRENCIES. THERE WAS A BROADER
CONVERSATION ABOUT RISK-TAKING IN AN ENVIRONMENT WHERE
MONETARY POLICY IS DISTORTED, FOR LACK OF A BETTER WORD, EVEN
FISCAL POLICY TO AN EXTENT. JOHN:
I'M STILL PARTIAL TO EQUITIES IN HIS ENVIRONMENT.
THE FEDERAL RESERVE HAS BEEN SUPPORTIVE OF THE FINANCIAL
MARKETS, OF COURSE, AND INTEREST RATES ARE STILL LIKELY
TO REMAIN LOW, EVEN IF RATES DO MOVE UP SOMEONE.
I'M NOT MAKING BIG SHIFTS OR ANYTHING LIKE THAT.
I THINK THAT STOCKS ARE ATTRACTIVELY PRICED WHEN YOU
THINK OF THINGS FROM A DIVIDEND PERSPECTIVE.
OUR PORTFOLIOS ARE YIELDING 2 TO 2.5%.
THINK OF WHAT YOU ARE GETTING ON A BOND PORTFOLIO OR
"SUPERSAFE" 10-YEAR TREASURY.

STOCKS ARE ATTRACTIVE FROM AN
INCOME PERSPECTIVE. CAROLINE: HOW TO YOU HEDGE THAT RISK?
THE IMF IS TALKING ABOUT BOUTS OF VOLATILITY. JOHN:
THAT IS PART OF THE PROCESS. VOLATILITY IS NORMAL.
5% DECLINE HAPPEN THREE TIMES A YEAR AND 10% KLEINS HAPPEN
EVERY 11 MONTHS. WHAT WE FOCUS ON IS GETTING THE
ALLOCATION RIGHT IN THE FIRST PLACE AND ASSURING LONG-TERM
INVESTORS ARE INVESTED PROPERLY. STOCKS RELATED TO THE
MULTI-YEAR TIME HORIZON ARE GOING TO DO JUST FINE HERE, NOT
WITHOUT SOME UPS AND DOWNS OF COURSE.
NO REASON TO DUMP A STOCKS AND BY SOME OTHER ASSET CLASSES.

WHERE ARE YOU GOING TO GO THESE
DAYS WITH YIELDS SO LOW? ROMAINE:
I'M SURE YOU HAVE TO HAVE YOUR EYE ON THE BROADER
MACROECONOMIC PICTURE, AND A LOT OF PEOPLE ARE TRYING TO
GUESS WHERE WE ARE IN THIS ECONOMIC CYCLE, AND THAT FEEDS
INTO THE MARKET CYCLE HERE. THE ECONOMY AS IT STANDS NOW
DEFIED A LOT OF EXPECTATIONS WITHIN THE PANDEMIC AND EVEN
COMING OUT. JOHN: EXACTLY, AND THAT IS THE POINT
WE WOULD MAKE, PEOPLE ARE FRIGHTENED ABOUT ECONOMIC
GROWTH, FOR-PROFITS, THE ELECTION A YEAR AGO AT THIS
TIME WAS GOING TO BE THE END OF THE WORLD IF A DEMOCRAT WON IN
A DEMOCRATICALLY-CONTROLLED CONGRESS.
OBVIOUSLY, THAT HASN'T BEEN THE CASE EVEN THOUGH THAT OCCURRED.
STOCKS HAVE DONE JUST FINE.

I THINK EQUITIES ARE A GREAT
PLACE FOR LONG-TERM MONEY. SHORT-TERM, WHO KNOWS WHAT WILL
HAPPEN IN THE NEAR TERM? SEPTEMBER WAS A DISMAL ONE.
THE S&P 500 HAD ONE OF THOSE 5% DECLINES. NOW WE ARE AT ALMOST AN
ALL-TIME HIGH, CLOSE TO THE 30,000 NUMBER THE JAMES
GLASSMAN PONTIFICATED IN 1999. CAROLINE:
AND NOW WE ARE ABOUT TO HIT IT. MAYBE YOU COULD MAKE AN HNFT.
I'M CURIOUS HOW YOU CONVINCED YOUR CLIENTS TO REMAIN INVESTED.
IS ANYONE WANTING TO GET INTO CASH? IS ANYONE NERVOUS? JOHN:
EVERYONE IS NERVOUS ALL THE TIME, BUT THE WAY YOU TRY TO
PROVIDE CALM IS PROVIDE DATA.

WE ARE OF MARKET HISTORY.
RISING INTEREST RATES ARE BAD FOR STOCKS — THAT SOUNDS GOOD
FROM A TEXT PERSPECTIVE — EXPERT PERSPECTIVE, MAY BE GOOD
EQUITIES HAVE RISEN DESPITE — CAROLINE:
AREN'T WE IN UNPRECEDENTED TIMES? JOHN:
WE ARE ALWAYS IN UNPRECEDENTED TIMES.
YOU NEVER STEP IN THE SAME STREAM TWICE F HISTORY IS A
GUIDE, NOT THE GOSPEL. TAPERING, THAT IS A BOGEYMAN
FOR PEOPLE, BUT IF YOU GO BACK TO 2013, 2014, WE HAD A THREAT
OF TAPERING, AND JANET YELLEN'S FED DID TO TAPER, AND THE
RUSSELL 2000 VALUE INDEX MADE 50% FOR THE TWO-YEAR TIME SPAN.
ALSO THINGS WILL SCARE INVESTORS, BUT TRY TO TAKE —
LOTS OF THINGS WILL SCARE INVESTORS, BUT TRY TO TAKE A
CALM VIEW OF THINGS. WE WILL GET TO DOW 50000 AND
SEVEN YEARS EVERY HAVE A NORMAL RETURN FROM WHERE WE ARE TODAY.
NOT EXCESSIVE RETURN FROM JUST NORMAL. ROMAINE:
WHAT ABOUT OVERALL ALLOCATIONS? WE HAVE A LOT OF CONVERSATIONS
ABOUT THE TRADITIONAL 60-40 PORTFOLIO.
A A LOT OF PEOPLE SAY THEY ARE STILL STICKING BY IT.
MAYBE THE DURATION ON THE 40 IS A LITTLE BIT SHORTER, BUT THE
ACTUAL ALLOCATION ON THE PERCENT BASIS REMAINS THE SAME.
JOHN: WE LOOK AT IT AND SAY YOU WANT
TO DO 120 MINUS YOUR AGE FOR YOUR ALLOCATION RATHER THAN 100
MINUS YOUR AGE.

PEOPLE ARE LIVING LONGER,
PEOPLE NEED INCOME FROM YOUR PORTFOLIO.
LET'S SAY OK, I WANT TO GET OUT OF EQUITIES AND INTO FIXED
INCOME TODAY. YES, BONDS ARE SAFER, BUT
INTEREST RATES ARE LIKELY TO RISE, THAT IS GOING TO HURT THE
PRICE OF THOSE BONDS. OBVIOUSLY, HOLD THEM TO
MATURITY, BUT YOU CAN'T HAVE A VERY LOUSY REAL RETURN BECAUSE
OF THE INFLATION THAT WE ARE SEEING.
EQUITIES ARE GOING TO ALLOW YOU TO KEEP UP WITH INFLATION.
MOST INVESTORS, THEY SHOULD BE THE LION'S SHARE OF THEIR
LONG-TERM ALLOCATION.

SHORT-TERM, CASH AND SAFER
THINGS, BUT LONG-TERM, EQUITIES ARE THE PLACE TO BE. CAROLINE:
LOCAL LONG-TERM PERSPECTIVE. JOHN BUCKINGHAM.
TAYLOR, ALL ABOUT THAT 60-40. WHAT ARE YOU WATCHING IN TERMS
OF THE WORLD OF ASSETS? TAYLOR: WE ARE LOOKING AT BREAKING NEWS
WE HAVE HERE. PISTOL BIOSCRIP HAS EXPRESSED
INTEREST IN ART — BRISTOL-MYERS SQUIBB HAS
EXPRESSED INTEREST IN ACQUIRING A RIVAL BIOPHARMACEUTICAL FROM. WE HAVE NO INDICATION ON THE
PRICE, BUT THE COMPANY SPECIALIZES IN THERAPIES FOR
SEVERE AUTOIMMUNE DISEASES.

THIS IS ACCORDING TO THEIR
WEBSITE. LOOKING AT ACQUIRING THIS FIRM
BUT REALLY TRYING TO FIGURE OUT EXACTLY WHAT THE PRICE WOULD BE
IF ANY. IT IS A BLOOMBERG SCOOP. VERY WELL DONE BY A BLOOMBERG
TEAM. LET'S LOOK AT OTHER MOVERS WE
ARE FOLLOWING THAT HAVE BEEN TALKING ABOUT THIS STOCK.
BEYOND MEAT, IT HIGHLIGHTS SUPPLY CHAIN.
THEY SAW A DECREASE IN REGIONAL ORDERS A LONGER THAN EXPECTED
BECAUSE THEY HAVE A DISTRIBUTOR THAT DID NOT MATCH UP TO THE
LABOR NEEDS. THAT IS A LABOR SHORTAGE
UNDERWAY. THEY ARE DROPPING 11.5%.

WHY?
INFLATION. WE ARE TALKING FIVE-YEAR AND A
10-YEAR INFLATION AND THE BREAKEVEN EXPECTATIONS.
16-YEAR HIGH ACROSS THE CURVE. THIS HIGHLIGHTS THE PRESSURE WE
CONTINUE TO SEE NOT ONLY ON THE SUPPLY CHAIN, BUT THE INPUT
COSTS AS WE GET EARNINGS THAT TRICKLE WE ARE MOVING CLOSER
TO THE CLOSING BELL. FULL MARKET COVERAGE HAPPENING
RIGHT HERE ON BLOOMBERG. WE TAKE YOU TO THE BELL AND
BEYOND. ♪ >> "BEYOND THE BELL,"
BLOOMBERG'S COMPREHENSIVE CLASS PLATFORM COVERAGE OF THE U.S.
MARKET CLOSE, STARTS RIGHT NOW. ROMAINE:
RIGHT NOW WE ARE TWO MINUTES AWAY FROM THE END OF THE
TRADING DAY. ROMAINE BOSTICK, CAROLINE HYDE
IN LOS ANGELES, TAYLOR RIGGS IN NEW YORK COUNTY YOU DOWN TO THE
CLOSING BELL. OUR GLOBAL SIMULCAST IS JOINED
BY CAROL MASSAR AND TIM STENOVEC, BRINGING TOGETHER OUR
AUDIENCE ACROSS RADIO, TELEVISION, YOUTUBE, AND BEYOND.
CAROL: YES INDEED.

I'M WATCHING THE FINANCIALS,
BEST-PERFORMING MAJOR INDUSTRY GROUP IN THE S&P 500.
THANK YOU, AMERICAN EXPRESS, BECAUSE THAT SUCK HITTING AN
ALL-TIME RECORD. PEOPLE ARE SPENT–BECAUSE THAT
STOCK HITTING AN ALL-TIME RECORD.
PEOPLE ARE SPENDING AT RECORDS. THAT HAS PUSHED THE FINANCIALS
FIRE TODAY. TIM: THE FLIPSIDE IS WHAT IS
HAPPENING ON THE NASDAQ. TECH STOPS, SNAP'S
UNDERPERFORMANCE DRAGGING DOWN TECH AND SOCIAL MEDIA COMPANIES.
GOOGLE'S INTEL DRAGGING DOWN THE NASDAQ RIGHT NOW.
FACEBOOK AND AMAZON, TAYLOR. TAYLOR:
IT IS INTERESTING YOU TALK ABOUT THAT BECAUSE TECHNOLOGY
HAS BEEN THE UNDERPERFORMER TODAY.
IT ACCELERATED WITH SOME OF THE FED COMMENTS WE GOT THIS
MORNING OUT OF JAY POWELL. WE HAD A GREAT CONVERSATION
BETWEEN HIM AND FRANCINE LACQUA AND HE REITERATED THAT WE ARE
ON FOR A TAPER, BUT NOTING THE INFLATIONARY EXPECTATIONS AND
BOTTLENECKS ARE PRICED TO THE UPSIDE.
YIELDS RALLIED ON THAT NEWS, BUT THEN TECH UNDERPERFORMED.
CAROLINE: A LITTLE BIT WORRY ABOUT THE
REACTION FUNCTION OF THE FED.

ALSO, WE HAD THE SAN FRANCISCO
FED SAYING THAT THIS INTEREST RATE ENVIRONMENT IS NOT READY
FOR US YET. YOU CAN SEE THE BOARD FOR OUR
TELEVISION AUDIENCE. NOT QUITE 36,000, BUT UP ON THE
DAY. 74 POINTS. S&P 500 IN THE RED.
DOWN FIVE POINTS. COMING OFF THE RECORD HIGH.
NASDAQ LOWER. DOWN 125 POINTS.
WE ARE WATCHING THE RUSSELL 2000. WE CAN GO TO THAT.
WE TALKED ABOUT THE POTENTIAL OUTPERFORMANCE OF THAT CYCLICAL
SECTOR. YOU LOOK AT THE RUSSELL 2000,
WHILE. — WOW. YES. CAROLINE:
BRISTOL-MYERS SET TO TAKE A TAKEOVER APPROACH. CAROL:
THAT'S DOCTORS SHOT UP ALMOST 27%. WHAT THAT IS ONE OF THE
OUTPERFORMANCE. M&A ON TRACK FOR RECORD YEAR.
WE SEE THOSE DEALS COMING IN. TAYLOR: YES. AMEX.
WE LOOK AT THE SECTOR WINNERS AND LOSERS.

YOU ARE RIGHT.
DIVIDENDS AND BANKS. DESPITE YIELDS FALLING, THOSE
TWO SECTORS ARE THE BEST PERFORMERS, UP 1.5%.
MAY BE SOME OF THE BENEFITS FROM THE PLATINUM CARD HELPING
THAT COMPANY. DOWN TO THE DOWNSIDE.
MEDIA IN SEMICONDUCTORS. VERY THIN. INTEL AND SNAP. CAROL:
WHAT IS THAT AMERICAN EXPRESS PLATINUM CARD, $675 A YEAR?
DIGITAL WORLD ACQUISITION CORP.. SOARING FOR A SECOND DAY, IT
HAS SKYROCKETED 1225% SINCE AN ANNOUNCEMENT IT WILL MERGE WITH
TRUMP MEDIA AND TECHNOLOGY GROUP. 107% TODAY. WE SAW MORE THAN A DOZEN
TRADING HALTS AS A RESULT. ALSO, A HOT DOG AND HAMBURGER
RESTAURANT MADE ITS TRADING DEBUT, UP ALMOST 29%.
HAVING A MUCH BETTER FIRST DAY OF TRADING THAN YESTERDAY. MATTEL AS WELL. UP .6%. ALMOST 8% IN TODAY'S SESSION,
THIRD-QUARTER QUARTER RESULTS EXCEEDING EXPECTATIONS.
WORKING THROUGH BOTTLE TEX. BRAZING — BOTTLENECKS.
RAISING GUIDANCE. WE WILL CATCH UP RIGHT HERE.
TIM: I HAVE THE DECLINERS. SNAP. TAKING A TUMBLE TODAY.
CHIP SHARES RECORD ONE-DAY DECLINE, DOWN CLOSE TO 27% FROM
A 26.59%. THE COMPANY WARNING APPLE DATA
COLLECTION RULES ON SUPPLY CHAIN ISSUES ARE WEIGHING ON
SPENDING. COMPANIES WILL CUT DOWN ON
ADVERTISING IF THEY'RE HAVING TROUBLES GETTING TO CONSUMERS
AS A RESULT OF HIGHER CAUSE.

FACEBOOK LOWER. TWITTER LOWER.
WE WILL GET EARNINGS NEXT WEEK. MORE DETAILS. INTEL SAYING PROFITABILITY WILL
TAKE A HIT DUE TO INCREASED SPENDING ON MANUFACTURING TO
KNOLOGY. THE COMPANY DOWN MORE THAN
11.6%. THE CEO SAYING HE ONCE TO
MAXIMIZE THE LONG-RANGE OF THE BUSINESS.
BEYOND MEAT TAKING A HIT, SHARES DOWN MORE THAN 11%. THEY WERE DOWN AS MUCH AS 16%
AFTER THEY REDUCED REVENUE GUIDANCE FOR THE THIRD QUARTER,
CITING A DECLINE IN RETAIL ORDERS, OPERATIONAL CHALLENGES,
ONGOING IMPACTS OF COVID-19. RETAIL IS IMPORTANT FOR THE
COMPANY. THE TASTE FOR BEYOND, THE
DEMAND IS NOT AS MUCH AS IT WAS A YEAR AGO.
I KNEW YOU WOULD NOT LIKE THAT. >> WE WOULD DO TEX NEXT, YIELDS
FIRST, TESLA ALMOST AS BIG AS FACEBOOK, DIGEST THAT FROM A
MARKET CAP PERSPECTIVE, TAKE A LOOK AT WE ARE ON THE YIELDS,
AND WHAT IS CRAZY, THIS IS TOTALLY HYPED THE ACTION, WHERE
YOU DON'T AND MAYBE YOU DON'T REMEMBER AND TUESDAY,
WEDNESDAY, THURSDAY, YIELDS, AND A BIG RALLY, SO IT LOOKS
LIKE ON THE WEEK YOU ARE STILL DOWN OR UP SIX BASIS POINTS OR
SO, BUT THIS HIDE SOME OF THE VOLATILITY WE GOT.
WE WERE WORRIED ABOUT INFLATION, BUT THEY SAY PERHAPS
LOOKING AT IT.

YOU GOT BONDS CAPTURING A BID.
ROMAINE: YES. THAT IS SOMETHING TO WATCH.
NEXT WEEK, WE WILL WATCH EARNINGS.
THE BUSIEST WEEK OF THE SEASON. AT LEAST FOR LARGE-CAP
COMPANIES. IT IS A LOT OF BIG TECH
COMPANIES. MAYBE WE SHOULD STAY IN
CALIFORNIA FOR ANOTHER WEEK? CAROL:
YOU ARE NEVER COMING BACK. WHAT A DAY TO BE HERE. TAYLOR:
LOS ANGELES, THE MOVE, THE RECORD MOVE SNAP, YOU WOULD
JUST CLEARLY, THE MANEUVER AND THE IMPACT OF APPLE, WE WILL SEE THAT HIT THE LIKES OF
FACEBOOK, TWITTER. $150 BILLION WIPED OFF? RAMIFICATIONS ACROSS THE AD
BUSINESS FOR ALL COMPANIES BY ONE COMPANY. TIM:
THIS IS SOMETHING FACEBOOK HAD TALKED ABOUT FOR QUITE A WHILE,
AND INITIATIVE.

BUT MAYBE YOU MADE A GOOD POINT
THAT SNAPS ADVERTISERS ARE BIG COMPANIES, WHERE AS A COMPANY
LIKE HIS BOOK RELIES ON SMALL BUSINESSES FOR ADVERTISING, OR
PERHAPS COULD NOT SEE IT AS BIG OF A HIT WHEN IT COMES TO
SUPPLY CHAIN CHALLENGES THAT SNAP REFERRED TO BECAUSE OF
THOSE SMALLER BUSINESSES ARE NOT SEEING THE SAME SUPPLY
CHAIN CHALLENGES. >> CAN WE TALK ABOUT THAT.
A HUGE REPORT WAS PUT OUT, SAYING THEY WERE TALKING A LOT
ABOUT FACEBOOK'S IMPACT FROM THE APPLE IOS SPACE, AND YES,
WARNING PEOPLE, YES, WORRIED, AND SAYING SNAP IS CONSISTENTLY
DOWNPLAYED THIS. THEY WERE PRAISING APPLE FOR
THE CHANGES, THEN YOU GET THE NEWS LIKE YESTERDAY AND
EVERYBODY'S LIKE, WHAT, YOU TOLD US THIS WAS NOT A PROBLEM? >> IT PLAYS INTO THIS BIGGER
PICTURE. WE KNOW THAT CAROLINE AND
ROMAINE YOU HAVE BEEN ON THE WEST COAST AND YOU SEE THE PORT
PROBLEMS, DEMAND IS STRONG, WE SOUGHT IN THE AMEX NUMBERS, WE
SEE THE CONSUMERS ARE BUYING, IT IS JUST THE SUPPLY CHAIN IS
PREVENTING THAT DEMAND FROM BEING MAPPED, AND THAT IS WHAT
IS GOING ON, AND LEADS TO SNAP, WHY WOULD YOU ADVERTISE IF YOU
CANNOT MEET DEMAND, SO IT IS AN INTERESTING CONUNDRUM THAT THE
ECONOMY IS DOING OK, DEMAND, CONSUMER SHOPPING, BALANCE
SHEETS STRONGER THAN EVER, BUT DEMAND CAN'T BE MET.

ROMAINE: YEAH, ONE THING WE LEARNED
YESTERDAY WAS ALL THE DISRUPTIONS WE TALKED ABOUT AT
THE PORT, THEY ARE STILL ON PACE FOR RECORD YEAR.
THEY ARE NOT HURTING IN THAT REGARD. CAROLINE:
PERHAPS THEY WANT TO BE GOING OUT AND TRYING OUT NEW MODES OF
COMMUNICATION WITH YOUR BUYERS. YES, YOU MIGHT STICK TO YOUR
INSTAGRAM AND FACEBOOK, BUT WILL YOU GO THE NEW AVENUES, TO
TALK, SNAP, WIN YOU'RE GOING TO RUN OUT OF GOODS, AND YOU'RE
COMMITTED TO THE AMOUNT OF VOLUME YOU CAN TO BE ABLE TO
PUT ON THE SHELVES.

>> WHAT ARE YOU LEARNING IN LOS
ANGELES, SUPPLY CHAIN, NETFLIX? CAROLINE:
THAT THE TRAFFIC IS TERRIBLE. ROMAINE:
EVERYONE KNOWS, THIS IS ON THE GROUND SHOE LEATHER REPORTING
WE HAVE BEEN DOING OUT HERE IN LOS ANGELES ALL WEEK.
WE ARE GETTING A NICE READ, NOT ONLY ON THE ECONOMY, BUT REALLY
ON THE IDEA OF WHAT THE NEXT STEP IS AND HOW PEOPLE ARE
INVESTING. IS THAT SERIOUS ENOUGH? TIM: I HAVE SEEN YOUR INSTAGRAM.
IT LOOKS LIKE YOU'RE HAVING FUN. >> HAS EVERYBODY HAD THE AAA
BRISKET? >> NO.
WE HAVE BEEN EATING MORE HIGH LEVEL. >> OK. >> ALL RIGHT GUYS. >> HAVE FUN. >> SAFE TRAVELS. >> WE LOOK FORWARD TO HAVING
YOU BACK. THAT WOULD DO IT FROM BEYOND
THE BIG, CROSS-PLATFORM COVERAGE.
WE WILL SEE YOU AGAIN AND BE BACK ON THE EAST COAST ON
MONDAY. >> MORE MARKETS COVERAGE IS
COMING UP. CAROLINE AND ROMAINE WILL SIT
DOWN WITH THE DIRECTOR AND PRESIDENT OF THE ACADEMY MUSEUM
OF MOTION PICTURES AFTER A SUCCESSFUL LAUNCH TO THE PUBLIC
IN SEPTEMBER.

THIS IS BLOOMBERG. ♪ >> THIS IS A SPECIAL EDITION OF BLOOMBERG MARKETS THE CLOSE,
LIVE IN LOS ANGELES. WE ARE AT THE LARGEST MUSEUM IN
THE U.S. DEVOTED TO THE ARTS, SCIENTISTS, AND ARTISTS OF
FILMMAKING. IT FINALLY OPENED ITS DOORS TO
THE PUBLIC ON SEPTEMBER 30. JOINING US NOW IS THE MAN
BEHIND THE MUSEUM FROM A DIRECTOR AND PRESIDENT, BILL
KRAMER. THANK YOU FOR HAVING US. >> THANK YOU FOR BEING HERE.
ROMAINE: I ASSUME IT HAD TO BE A
CHALLENGE GIVEN THE PANDEMIC TO OPEN. HOW WAS IT? BILL:
THE PANDEMIC FORCED US TO MOVE THE OPENING A FEW TIMES, BUT WE
KEPT CONSTRUCTION GOING THROUGHOUT THE PANDEMIC
THANKFULLY, AND WE OPENED ON SEPTEMBER 30 AT 50% CAPACITY,
WITH COVID PROTOCOLS IN PLACE, AND WE HAVE BEEN SOLD OUT EVERY
DAY. PEOPLE HAVE BEEN WAITING FOR
THIS MUSEUM FOR 92 YEARS, SO THEY ARE READY. THEY ARE COMING.
CAROLINE: DEMAND IS THERE. WHAT ABOUT THE PHILANTHROPIC
GIVING IN THE WAY THIS CAME TO BE, HAVE PEOPLE BEEN WANTING TO
DO THAT TO HELP IN THE ECONOMY, WILLING TO SUPPORT THE
INSTITUTION? BILL: ABSOLUTELY.

WE CLOSED OUR 388 MILLION
DOLLARS CAPITAL CAMPAIGN LAST NOVEMBER IN THE MIDDLE OF THE
PANDEMIC. WE HAVE HAD INCREDIBLE SUPPORT
FROM THE INDUSTRY, BLOOMBERG, MANY OTHER PLACES, SO PEOPLE
KNOW THERE IS VALUE IN A CULTURAL INSTITUTION DEVOTED TO
MOVIEMAKING. LOS ANGELES HAS WANTED THIS FOR
A LONG TIME. ROMAINE: MOVIEMAKING HAS CHANGED A LOT
FROM THE DAYS WHEN WE WERE KIDS AND WENT TO A PHYSICAL THEATER,
OR MAYBE AN ART MOVIE. NOW PEOPLE HAVE THE OPTION OF
PULLING UP NETFLIX, HULU AND WATCHING THE SAME THING THAT
WOULD NORMALLY BE IN THE THEATER .
HOW HAS THAT CHANGED THE INDUSTRY? GO:
BOTH ARE IMPORTANT. THE MUSEUM BELIEVES DEEPLY IN
THE THEATRICAL EXPERIENCE. WE ARE SITTING ON TOP OF THE
1000-C THEATER AND HAVE ANOTHER 288-C THEATER, SO WE HAVE
SCREENINGS OF FILMS TIED TO OUR EXHIBITION SERIES, PROGRAMS,
GENRES, BUT TED SORRENTO'S AS THE CHAIR OF OUR BOARD.
WE KNOW THAT WE LIVE IN A WORLD NOW WHERE STREAMING OFFERS AN
INCREDIBLE AMOUNT OF VIEWING OPPORTUNITIES, EMERGING ARTIST
CAN HAVE THEIR FILM SEEN BY SO MANY MORE PEOPLE AROUND THE
WORLD MORE QUICKLY, BUT WE KNOW THE NATURAL EXPERIENCE WON'T GO
AWAY, AND IT IS IMPORTANT TO SEE FILMS IN THE SETTING IN
WHICH THEY WERE DESIGNED TO BE SHOWN.

CAROLINE:
WHAT ABOUT THE SUPPORT SYSTEM FOR THE ECOSYSTEM, WHETHER THE
LABOR IN PARTICULAR AT THE MOMENT, AND INDEED, THERE IS
CONTROVERSY ABOUT MOVIEMAKING , LACK OF DIVERSITY, WHETHER IT
BE SUPPORT FROM A WAGE POINT OF VIEW, BUT ALSO A HEALTH-CARE
POINT OF VIEW FOR THOSE HELPING TO MAKE THE FILMS BE ON THE
CAMERA AND STARS. HOW DO YOU FEEL IT IS IN LOS
ANGELES NOW IN THE INDUSTRY? BILL:
ONE GOAL IS TO TELL BE DIVERSE, INCLUSIVE, EQUITABLE STORIES OF
OUR HISTORY, LEGACY, THE ARTS, ARTISTS, AND IN ALL OF THAT, WE
ARE CREATING A SAFE SPACE TO TALK ABOUT THESE ISSUES .
THE INDUSTRY HAS SOMETIMES BEEN LESS THAN POSITIVE ABOUT EQUITY
AND PAY GRADES, AND THERE HAS BEEN RACISM, SEXISM, AND
DEPRESSION, AND THERE HAS BEEN A LOT TO CELEBRATE.
THIS IS A PLACE TO TALK ABOUT ALL OF THOSE THINGS TO BUILD A
BETTER FUTURE, BY ADDRESSING AND NOT A SAFE SPACE FOR THOSE
DISCUSSIONS. ROMAINE: WITH REGARDS TO THAT DIVERSITY
IN THE PUSH WE HAVE SEEN TO MAKE THE ACADEMY MORE
INCLUSIVE, HOLLYWOOD MORE INCLUSIVE, THE ENTERTAINMENT
INDUSTRY MORE INCLUSIVE, HAS THE FEEDBACK YOU HAVE GOTTEN
FROM YOUR MEMBERS OR OTHER FOLKS BEEN SUPPORTIVE OF THE
OVERALL MISSION, ARE THEY ON BOARD WITH THIS? BILL: YES.
OUR CORE EXHIBITION IS COLD STORIES OF CINEMA, BECAUSE
THERE IS NOT ONE STORY ABOUT HER HISTORY, SO THEY ARE BEHIND
THE FACT WE ARE ROTATING MANY DIFFERENT STORIES TO OUR CORE
EXHIBITIONS THAT ALLOW US TO TELL A MULTITUDE OF STORIES,
HIGHLIGHT MANY DIFFERENT ARTISTS, AREAS, AND MANY PEOPLE
ARE HUNGRY FOR THESE DISCUSSIONS.
WE HAVE HAD A RECKONING OVER THE PAST SEVERAL YEARS.
I THINK PEOPLE EXPECT A MORE DIVERSE AND INCLUSIVE VIEW OF
OUR HISTORY.

CAROLINE: IT'S NOT JUST ABOUT HISTORY,
BUT THE FUTURE. YOU ARE EMBRACING THAT.
YOU STARTED YOUR OWN NFT, RAISING FUNDS.
TALK TO US ABOUT IT. BILL: ONE OF THE MANY THINGS THE
PANDEMIC HAS SHOWN US IS THAT CULTURAL INSTITUTIONS,
NONPROFITS, ORGANIZATIONS NEED TO DIVERSIFY THEIR BASE OF
SUPPORT. SO MANY OF OUR PEER ORGANIZATIONS WITHIN THREE OR
FOUR WEEKS OF THE SHUTDOWN LAST YEAR LAID OFF STAFF, FURLOUGHED
STAFF, CLOSED, BECAUSE THE TICKET SALES, EARNED INCOME
STREAM STOPPED, AND THERE WAS NO BUFFER FROM THE CONTRIBUTED
REVENUE SIDE OR ENDOWMENT OR BOARD MEMBERS, SO WE ARE ALWAYS
LOOKING AT APPROPRIATE AND INTERESTING WAYS TO BRING IN A
DIVERSIFIED BASE OF SUPPORT.

THE NFT WE JUST ISSUED IS ONE
WAY OF DOING THAT. WE ARE EXTREMELY EXCITED ABOUT
THE FUTURE OF THAT. ROMAINE: WE WALKED AROUND THE MUSEUM.
YOU SAW BRUCE, THE SHARK. CAROLINE: 20 ROMAINE: 5 METERS.
WHAT IS YOUR FAVORITE PART? BILL: WE LOVE ALL HER CHILDREN
EQUALLY. I AM MOST PROUD OF THE GALLERIES WE HAVE CO-CURATED
WITH INCREDIBLE ACADEMY MEMBERS, FILM ARTISTS, SPIKE
LEE AND OTHERS. THESE ARE PERSONAL ENVIRONMENTS
THAT WE BUILT WITH THEM THAT TELL THE STORY OF THE
FILMOGRAPHY, INTERESTS, AESTHETICS.
YOU CAN ONLY SEE THAT HERE. ROMAINE:
GREAT TO HAVE YOU AND WE APPRECIATE YOU HOSTING US TODAY.
THAT IS THE DIRECTOR AND PRESIDENT OF THE ACADEMY MUSEUM
OF MOTION PICTURES, WHERE WE ARE SITTING RIGHT NOW. CAROLINE:
ABSOLUTELY BEAUTIFUL. I LOVE BRUCE.
MY NEW BEST FRIEND. THE ONLY ONE REMAINING FROM THE
REAL FILM JAWS. 25 FEET LONG. TIME NOW FOR FIRST WORD NEWS.
MARK? MARK: THANK YOU. THE BATTLE OVER A STRICT
ABORTION LAW IN TEXAS IS HEADED TO THE U.S. SUPREME COURT.
IT HAS AGREED TO HEAR ARGUMENTS IN THE CASE.
THAT LEAVES THE LAW IN PLACE FOR NOW.
THE DECISION TO LET THE LAW STAY IN EFFECT CAME OVER THE
DISSENT OF JUSTICE SO NOT TO THUNDER MAYOR — JUSTICE SONIA
SOTOMAYOR.

THE UNITED STATES POSTED THE
SECOND LARGEST ANNUAL BUDGET DEFICIT ON RECORD FOR 2021, AS
PANDEMIC RELIEF SPENDING SUSTAINED THE FEDERAL
GOVERNMENT'S MASSIVE BORROWING NEEDS.
THE TREASURY DEPARTMENT SAYS THE DEFICIT FOR THE FISCAL YEAR
THROUGH SEPTEMBER WAS $2.77 TRILLION, COMPARED WITH $3.1
TRILLION IN THE PREVIOUS YEAR, THE RESULTING GAP WAS $897
BILLION LESS THAN FORECAST IN THE BUDGET OUTLINED EARLIER
THIS YEAR. ALEC BALDWIN SAYS HE IS
COOPERATING WITH AUTHORITIES INVESTIGATING HIS FIRING OF A
PROP GUN THAT LED TO THE DEATH OF A CINEMATOGRAPHER ON A FILM
SET. THE FILM'S DIRECTOR WAS ALSO
WOUNDED. ON TWITTER, HE SAID "THERE ARE
NO WORDS TO CONVEY MY SHOCK AND SADNESS REGARDING THE TRAGIC
ACCIDENT." BALDWIN IS A PRODUCER AND STAR
OF THE FILM, WHICH WAS BEING SHOT IN NEW MEXICO.
REDUCTION HAS BEEN STOPPED.

NO CHARGES HAVE BEEN FILED.
WE WILL HAVE MORE ON THE STORY, COMING UP.
GLOBAL NEWS 24 HOURS A DAY ON AIR AND ON BLOOMBERG QUICKTAKE
POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN
MORE THAN 120 COUNTRIES. I AM MARK CRUMPTON.
THIS IS BLOOMBERG. ♪ CAROLINE:
AS WE WRAP UP, WE CANNOT OVERLOOK WHAT IS IN PROCESS,
THE FATAL SHOOTING ON THE SET OF ALEC BALDWIN'S MOVIE.
WE CONTINUE TO SEE GROWING UNREST IN HOLLYWOOD, CLOSURES,
RESTRICTIONS. WE WANT TO RECOGNIZE THE
PROTESTANT NETFLIX, AND THE NEW LABOR AGREEMENT BETWEEN
HOLLYWOOD STUDIOS AND ONE OF THE INDUSTRY'S MOST POWERFUL
UNIONS.

JOINING US TO DISCUSS THIS IS
OUR GUEST FROM LOS ANGELES. WHAT IS THE LATEST?
THIS IS A SAFETY ISSUE. CHRIS: YES. ALEC BALDWIN APOLOGIZED AND
SAID HE WAS DEVASTATED AND IS COOPERATING WITH THE
INVESTIGATION. HE WAS HOLDING THIS PROP GUN
THAT WAS OFF AND KILLED THE DIRECTOR OF PHOTOGRAPHY AND
WOUNDED THE DIRECTOR OF THE MOVIE YESTERDAY AFTERNOON IN
SANTA FE. THE SHERIFF'S DEPARTMENT IS
INVESTIGATING AND THEY'RE STILL TRYING TO FIGURE OUT WHAT
EXITED THE GUN, A BULLET, OR SHRAPNEL SOME PEOPLE SUGGESTED.
I HAVE SEEN BOTH EXPLANATIONS. THEY HAVE NOT PRESS CHARGES IN
ANY WAY. THERE IS A LOT OF DISCUSSION ON
SOCIAL MEDIA AND IN THE HOLLYWOOD COMMUNITY ABOUT WHAT
THIS MEANS GOING FORWARD. A LOT OF PEOPLE SAYING WE DON'T
EVEN NEED PROP GUNS ON THE SET. THEY CAN RE-CREATE THE MUZZLE
SHOT IN THE SOUND OF A GUN GOING OFF INSTEAD OF TAKING THE
CHANCE.

ROMAINE: THERE HAS BEEN A LOT OF
DISCUSSION ABOUT THE WORKING CONDITIONS ON THAT PARTICULAR
SET AND ON OTHER FILMS. ONE OF THE MAIN UNIONS THAT REPRESENTS
FOLKS BEHIND THE CAMERA ISSUED A STATEMENT ON THAT.
WHAT WE KNOW ABOUT THE DEMANDS THEY'VE BEEN MAKING AND WHETHER
SOME OF THOSE ISSUES HAVE BEEN ADDRESSED? CHRIS: THE PEOPLE INVOLVED WERE
MEMBERS OF THE UNION THAT NARROWLY AVERTED A STRIKE LAST
WEEKEND. THEY HAVE NOT SETTLED THE
CONTRACT. 60,000 INDUSTRY WORKERS WERE
HAPPY WITH WHAT THEY GOT. THEY WERE COMPLAINING.
THEY WERE GOING TO GO ON STRIKE. THEY GOT INCREASES IN PAY, AS
MUCH AS 60% FOR THE LOWEST PAID WORKERS, COMMITMENTS FOR MEAL
BREAKS, AND MOST IMPORTANTLY, THE BIG ISSUE IS WORKING OVER
THE WEEKEND, WHEN THEY ARE CAUGHT LATE ON FRIDAY AND WORK
INTO THE WEEKEND, AND NOW THEY HAVE COMMITMENTS FROM THE BIG
STUDIOS TO HAVE MANDATORY TIME OFF SO THAT THEY CAN REST AND
GO BACK TO THEIR LIVES.

THEY WANT A LOT.
THE CONTRACT IS NOT FORMALIZED. STILL SOME OF THE YOUNGER
MEMBERS IN PARTICULAR ARE MORE VOCIFEROUS AND WERE NOT TOLD
WHAT THE TERMS WHERE. THEY HAVE NOT SET A FINAL DATE
OF IT THAT WOULD BE THAT. CAROLINE:
WE ARE TALKING WITH SOME OF THE COMPONENTS OF THE LABOR UNION
AGREEMENT WE GOT BETWEEN HOLLYWOOD STUDIOS AND ONE OF
THE MOST POWERFUL UNIONS TO TALK ABOUT WORKING CONDITIONS,
AND OF COURSE, THE WAGE INCREASES. WE KNOW THEY ARE TALKING ABOUT
SUPPLY CHAIN AND LABOR SHORTAGES AND WAGE INCREASES.
TALK TO US ABOUT WHAT WE KNOW. CHRIS: WELL, YOU KNOW, AS WE ARE
SEEING THIS MOMENT, LABOR ACROSS MANY INDUSTRIES, PEOPLE
HAVE GOTTEN ACCUSTOMED TO WORKING FROM HOME OR NOT
WORKING AS OFTEN AS THEY DID BEFORE, SO IT IS A CHALLENGE
FOR ALL INDUSTRIES, HOLLYWOOD INCLUDED.
HOLLYWOOD HAS BEEN TRYING TO RAMP UP PRODUCTIONS, SO THAT
HAS BEEN A BIG PRESSURE POINT, AS ALL OF THESE BIG COMPANIES
TRIED TO GET MORE TV AND MOVIES SO THEY MAINTAIN THE
SUBSCRIBERS GROWTH THEY HAVE BEEN SHOWING. TAYLOR:
THANK YOU AS ALWAYS. WE APPRECIATE YOUR TIME AS WE
TALK ABOUT A WIDE VARIETY OF ISSUES.

THAT COVERAGE IS ENDING.
STAY TUNED. WHAT DID YOU MISS IS COMING UP
NEXT. WE WILL BE WRAPPING UP THE AFTERNOON AT THE ACADEMY MUSEUM
OF MOTION PICTURES. THIS IS BLOOMBERG. ♪.

As found on YouTube

Looking to see what kind of mortgage you can get? Click here to see

Leave a reply

Your email address will not be published. Required fields are marked *