WEBVTT - Bloomberg Wall Street Week: Pelosi, Froman and Summers 0:00:00.160 --> 0:00:03.360 This is Bloomberg Wall Street Week. What's the state of 0:00:03.400 --> 0:00:06.360 corporate governance? The deficit is a real issue. The use 0:00:06.400 --> 0:00:09.800 economy continues to send mixed signals to the financial stories 0:00:09.800 --> 0:00:12.680 that cheap our world fed action to con concerns over 0:00:12.760 --> 0:00:16.240 dollar liquidity and encouraging China data. The five hundred wealthiest 0:00:16.239 --> 0:00:18.360 people in the world. Through the eyes of the most 0:00:18.480 --> 0:00:22.520 influential voices Larry Summers, the former Treasury Secretary, Star CEO, 0:00:22.640 --> 0:00:26.360 Kevin Johnson sec Chairman j Clayton. Bloomberg wool Street Week 0:00:26.480 --> 0:00:30.520 with David Weston from Bloomberg Radio. President Trump says we 0:00:30.600 --> 0:00:33.360 have to run the risk, and the markets appear willing 0:00:33.400 --> 0:00:36.840 to do just that. This is Bloomberg Wall Street Week. 0:00:36.880 --> 0:00:40.800 I'm David Weston. Welcome back. The Senate is back in session, 0:00:41.080 --> 0:00:43.400 and as much as Congress has done already to help 0:00:43.440 --> 0:00:46.560 the economy, there's more work left to be done, including 0:00:46.680 --> 0:00:49.960 assistance to state and local governments to help the most 0:00:50.040 --> 0:00:54.640 vulnerable to the pandemic. Unfortunately, they often include the poor 0:00:55.040 --> 0:00:57.360 and people of color. But if there is to be 0:00:57.440 --> 0:01:00.720 another major move to shore of the economy, Speaker Nancy 0:01:00.720 --> 0:01:02.800 Pelosi wants to make sure it starts in the House 0:01:02.880 --> 0:01:06.200 of Representatives and we asked her why, Well, let me 0:01:06.240 --> 0:01:08.319 just say that I'm very proud that our first four 0:01:08.360 --> 0:01:14.240 bills on this subject have been all bipartisan, overwhelmingly bipartisan. UH. 0:01:14.319 --> 0:01:16.640 As we take up the fifth bill, we're following the 0:01:16.720 --> 0:01:19.600 path of what was in the other bills. For example, 0:01:19.640 --> 0:01:22.199 we had state and local in the first CARES bill. 0:01:22.319 --> 0:01:25.520 Here's one and that is what we have in this bill. 0:01:25.760 --> 0:01:31.759 Honor our heroes, police and fire, healthcare providers, transit workers, teachers, 0:01:32.080 --> 0:01:34.759 all of the people who postal workers, all the people 0:01:34.840 --> 0:01:38.959 who make our system work and in many cases risk 0:01:39.080 --> 0:01:41.959 their lives to save other people's lives, and now they 0:01:41.959 --> 0:01:46.039 may lose their job because of the revenue loss as 0:01:46.040 --> 0:01:50.600 well as coronavirus costs that states and menuntipalities are are 0:01:51.400 --> 0:01:55.800 UH sufferings. A b that we if we are open up. 0:01:55.880 --> 0:01:59.640 The key to opening up, to unlocking the lockdown is testing, 0:01:59.720 --> 0:02:03.520 test sting, testing, tracing, tracing, racing, treatment, treatment. We have 0:02:03.680 --> 0:02:08.520 to do that. It's science requires it. Everyone agrees that 0:02:08.560 --> 0:02:11.359 we have to. It's a health issue that is going 0:02:11.400 --> 0:02:15.600 to solve the fiscal of the financial UH issue as well. 0:02:15.960 --> 0:02:18.320 And then third, we want to put money in people's 0:02:18.320 --> 0:02:22.840 pockets on our hero state and local testing, testing, testing, Uh, 0:02:22.919 --> 0:02:25.560 let's make sure that we address the disparities and all 0:02:25.600 --> 0:02:31.079 the rest by identifying really where this uh cruel virus 0:02:31.320 --> 0:02:36.000 is creeping out there. It's it's it's so scary. And 0:02:36.040 --> 0:02:39.680 then third, putting money in people's pockets. What do we 0:02:39.720 --> 0:02:43.440 do unemployment insurance, whether we do issues that relate to 0:02:43.480 --> 0:02:46.280 direct payments in the rest of that, that's what we 0:02:46.360 --> 0:02:48.519 have to do. Now. We had all three of those 0:02:48.600 --> 0:02:51.520 in the previous bills. So this is not plowing any 0:02:51.560 --> 0:02:55.440 new territory. It's digging deeper. It's more money for example, 0:02:55.520 --> 0:02:58.400 state and local. It has the support of Republican and 0:02:58.480 --> 0:03:02.639 Democratic governors through out the country, also state of the 0:03:02.760 --> 0:03:08.160 municipalities and counties, bipartisan support throughout the country. It's a 0:03:08.160 --> 0:03:12.520 big ticket because we are it's a big challenge. It's 0:03:12.680 --> 0:03:16.919 only for coronavirus. That is outlays and revenue loss. Now, 0:03:16.960 --> 0:03:19.200 there are some issues that we just don't that are 0:03:19.240 --> 0:03:22.360 philosophical that we haven't been able to crack, and that 0:03:22.560 --> 0:03:28.400 is food stamps SNAP, the SNAP program. For some reason, 0:03:28.480 --> 0:03:30.920 that's not something that we can get the other side 0:03:31.000 --> 0:03:32.919 to agree on. But we have to do it. In 0:03:33.000 --> 0:03:36.920 American people know that we have to do that. Brookings 0:03:36.920 --> 0:03:39.480 Institute just put out of report that moms say that 0:03:40.040 --> 0:03:43.840 one in four children do not have any they have 0:03:44.120 --> 0:03:46.840 our food insecure, one in four children in our country. 0:03:47.440 --> 0:03:50.160 That it's always been a problem, more than one in five, 0:03:50.240 --> 0:03:53.920 one in six. Now it's exacerbated by all of this. 0:03:54.000 --> 0:03:58.800 So again, there's some issues that are traditional debates that 0:03:58.840 --> 0:04:01.440 we have, but they shouldn't be any question that we 0:04:01.480 --> 0:04:08.000 would have now. Foot stamps, unemployment insurance, direct payments, so 0:04:08.040 --> 0:04:11.000 many of these things serve as a stimulus to the 0:04:11.000 --> 0:04:15.800 economy as well. So uh, but the secret the Chairman 0:04:15.840 --> 0:04:19.119 of the FED said, think big. Interest rates are so low, 0:04:19.320 --> 0:04:23.400 think big, And we're taking his guidance on that. Mad speaking, 0:04:23.480 --> 0:04:25.200 you said that for some reason you can't get the 0:04:25.240 --> 0:04:27.640 Republican side to move on food stamps. Can they get 0:04:27.680 --> 0:04:29.360 you to move on some of the things that they want, 0:04:29.400 --> 0:04:32.159 such as payroll tax that's something President Trump keeps talking about, 0:04:32.279 --> 0:04:34.560 even capital gains tax. Are you willing to put on 0:04:34.600 --> 0:04:38.720 the table at least some adjustments and taxation. Well, let 0:04:38.720 --> 0:04:42.039 me just say this, if you want to compare the 0:04:42.160 --> 0:04:44.960 need for us to change the capital gains tax, which 0:04:45.080 --> 0:04:49.279 once again, once again UH ignores the fact that there 0:04:49.279 --> 0:04:52.599 are people in our country that are hungry, and that 0:04:52.680 --> 0:04:57.120 there is some equivalence to that. I respectfully disagree. There 0:04:57.160 --> 0:05:01.159 are certain things that are urgent, the urgent to have 0:05:01.240 --> 0:05:04.640 a discussion of tax policy. Save that for another day 0:05:04.839 --> 0:05:07.320 and do it in a bipartisan way. But don't draw 0:05:07.320 --> 0:05:10.040 any lines in the sand. We're not he shouldn't. Do 0:05:10.040 --> 0:05:11.919 you have a sense at this point, I understand the 0:05:11.920 --> 0:05:13.599 plan isn't put together. You have a sense of how 0:05:13.680 --> 0:05:16.160 big this might be? How big is this bread box? 0:05:16.200 --> 0:05:18.480 Do we think big? It would be big? Well, see, 0:05:18.520 --> 0:05:22.000 for example, when we went from UH state and local, 0:05:22.640 --> 0:05:26.160 that was how we embraced it before. Now it's state 0:05:27.080 --> 0:05:31.039 and local separate, and so it will practically doubled what 0:05:31.080 --> 0:05:34.000 we would be doing. And that's a big ticket item. 0:05:34.640 --> 0:05:38.840 We're doing that the testing in a way that has 0:05:38.880 --> 0:05:41.640 a strategic plan. That's what we asked them to do. 0:05:41.880 --> 0:05:45.039 In the last bill. We had testing, testing, testing, in 0:05:45.080 --> 0:05:48.039 our March fourth bill that passed the House that day. 0:05:48.279 --> 0:05:50.920 We had testing in the most recent bill. We still 0:05:51.000 --> 0:05:55.120 do not have what the scientists tell us is necessary 0:05:55.360 --> 0:05:59.359 to reach out into the communities with a band of 0:05:59.440 --> 0:06:02.560 people to do the tracing so that we can rid 0:06:02.600 --> 0:06:07.279 ourselves of this plague, and that costs money. And then 0:06:07.320 --> 0:06:10.120 the direct payments, that's that's a big ticket item, and 0:06:10.160 --> 0:06:13.440 that's what we are working on now. Where do we 0:06:13.480 --> 0:06:17.240 get the most return for the best help to our 0:06:17.720 --> 0:06:22.799 people who are desperate. People are desperate, they're heartbroken because 0:06:22.800 --> 0:06:26.600 of loss of life, threat to life, but so many 0:06:26.640 --> 0:06:32.000 of their aspirations professionally, businesses, a community involvement in the 0:06:32.000 --> 0:06:36.000 rest are so stifled by what's happening. And we really 0:06:36.040 --> 0:06:38.800 have to address that, and if we don't, it's going 0:06:38.839 --> 0:06:41.839 to cost us a lot more money. So this is 0:06:41.839 --> 0:06:44.800 a prevention in many ways. That was Speaker of the 0:06:44.800 --> 0:06:48.560 House Nancy Pelosi coming up on Wall Street Week. This 0:06:48.680 --> 0:06:52.159 economic crisis has shown us some of the glaring inequalities 0:06:52.200 --> 0:06:55.760 in financial services in this country. We talk with MasterCard 0:06:55.880 --> 0:06:59.080 Vice chairman Michael Frohman about what can be done about 0:06:59.120 --> 0:07:08.119 those that. Next on Wall Street Week on Bloomberg This 0:07:08.600 --> 0:07:13.119 is Bloomberg Will Street Week with David Weston from Bloomberg Radio. 0:07:13.480 --> 0:07:18.400 When Congress approved checks to most Americans, some people got 0:07:18.440 --> 0:07:21.160 their payments much faster than others did. And independent on 0:07:21.200 --> 0:07:24.440 whether they had direct deposit relations with the I R S. 0:07:24.720 --> 0:07:27.040 It pointed once again to the plight of millions of 0:07:27.080 --> 0:07:31.160 Americans who are unbanked or underbanked. We talked with MasterCard 0:07:31.200 --> 0:07:34.000 Vice chairman Michael Frohman about the nature of the problem 0:07:34.160 --> 0:07:37.200 and what can be done about it. About five years ago, 0:07:37.280 --> 0:07:40.720 MasterCard committed to bringing half a billion people who have 0:07:40.840 --> 0:07:44.320 been excluded from the financial system into the system. We 0:07:44.400 --> 0:07:47.240 achieved that goal last quarter about nine months. I had 0:07:47.240 --> 0:07:50.160 a schedule and we decided that now more than ever, 0:07:50.640 --> 0:07:52.920 it's important to make sure people have access to the 0:07:52.960 --> 0:07:56.080 digital economy, so we doubled down. We've raised that goal 0:07:56.120 --> 0:08:00.720 now to a billion between now and also said it's 0:08:00.720 --> 0:08:04.680 really important to bring fifty million micro and small businesses 0:08:05.160 --> 0:08:08.000 into the economy. And because it continues to be a 0:08:08.040 --> 0:08:11.200 gender gap when it comes to financial inclusion, women tend 0:08:11.200 --> 0:08:14.400 to lack about nine percent behind men in terms of 0:08:14.400 --> 0:08:17.200 being included, we're gonna we're gonna focus in particularly on 0:08:17.240 --> 0:08:21.120 reaching twenty five million women owned or women run businesses 0:08:21.560 --> 0:08:24.040 around the world. So, Michael, give us a sense of 0:08:24.040 --> 0:08:25.840 the geography first, I mean, how many of these are 0:08:25.840 --> 0:08:28.720 the United States? How many there are overseas because Massacret 0:08:28.720 --> 0:08:31.360 of course is a global company. Well, you know, they're 0:08:31.360 --> 0:08:34.000 about a one point seven billion people around the world 0:08:34.040 --> 0:08:37.400 who were still excluded from the financial system. Most of 0:08:37.440 --> 0:08:39.720 them are in developing countries, but there are people right 0:08:39.720 --> 0:08:42.080 here in the United States and in Europe who were 0:08:42.120 --> 0:08:46.240 also excluded, people who are unbanked or underbanked. Their estimates 0:08:46.280 --> 0:08:48.400 as in the US is somewhere between thirty and forty 0:08:48.440 --> 0:08:52.800 million people who have no formal relationship to the financial system. 0:08:53.120 --> 0:08:54.760 So a lot of what we're focused on, and when 0:08:54.800 --> 0:08:56.840 it will vary from country to country as it has 0:08:56.840 --> 0:09:00.400 over the last five years, is figuring out how best 0:09:00.440 --> 0:09:04.520 to reach them. Sometimes it will be through government disbursement programs, 0:09:04.559 --> 0:09:09.080 and for example, millions of people will get their economic 0:09:09.320 --> 0:09:13.360 payments from the government on one of our cards. Um 0:09:13.480 --> 0:09:16.680 Sometimes it will be working with with fin techs who 0:09:16.720 --> 0:09:20.040 have a capability of bringing people into the financial system 0:09:20.559 --> 0:09:23.719 that didn't exist five or ten years ago. Or it 0:09:23.720 --> 0:09:26.719 will be partnering with other companies. We have a partnership 0:09:27.200 --> 0:09:29.800 with a group called Annoymans, which is a big coffee 0:09:29.800 --> 0:09:33.840 trading group, to help put their workers, for example in Mexico, 0:09:34.600 --> 0:09:37.679 on digital payments, and it means that the worker, the 0:09:37.960 --> 0:09:41.280 grower of the of the coffee, is getting more for 0:09:41.679 --> 0:09:44.360 her product than she might have gotten before because we've 0:09:44.360 --> 0:09:47.720 eliminated the need to go through middlemen and go through cash. Michael, 0:09:47.760 --> 0:09:50.640 you mentioned small businesses as as part of this UH. 0:09:50.720 --> 0:09:52.320 It gives us a sense of what you're seeing with 0:09:52.400 --> 0:09:55.040 MasterCard by the extent of which small businesses are drawing 0:09:55.040 --> 0:09:57.199 down on their credit as a practicmounter, putting it on 0:09:57.240 --> 0:09:59.760 their credit card, or for that matter, just not buying 0:09:59.760 --> 0:10:03.120 things at all, maybe with reduced activity. Well, we're certainly 0:10:03.160 --> 0:10:07.640 seeing uh an impact here. People are focusing on essential 0:10:07.679 --> 0:10:12.559 purchases like groceries and and and pharmacy purchases. UH there's 0:10:12.600 --> 0:10:16.640 a big movement from brick and mortar to e commerce. 0:10:17.600 --> 0:10:19.280 But even where people where there is brick and mortar, 0:10:19.280 --> 0:10:22.040 where people are going face to face, we're seeing a 0:10:22.080 --> 0:10:25.359 big rise and what we call contact with payments about 0:10:25.880 --> 0:10:29.199 growth around the world and people going and just tapping 0:10:29.200 --> 0:10:31.079 their card because they don't want to hand over their 0:10:31.080 --> 0:10:33.560 card to somebody, they don't want to handle cash, they 0:10:33.600 --> 0:10:35.560 don't want to have to put in a pin number, 0:10:35.840 --> 0:10:37.760 and so being able to just tap and go is 0:10:37.800 --> 0:10:42.760 a safe and secure way of making payments. Small businesses, 0:10:42.760 --> 0:10:46.280 as you said, are particularly hit by this crisis. We've 0:10:46.280 --> 0:10:49.640 committed two hundred and fifty million dollars of products and 0:10:49.720 --> 0:10:53.440 services and financial support over the next five years too 0:10:53.440 --> 0:10:57.560 small and medium sized businesses to help them digitize, bring 0:10:57.600 --> 0:11:01.120 them into the e commerce environment, make sure that their 0:11:01.120 --> 0:11:05.480 transactions are safe and secure from cyber attack and from fraud. 0:11:05.840 --> 0:11:08.200 And that's going to be an area of continued focus 0:11:08.760 --> 0:11:11.320 in the United States and around the world. Michael, One 0:11:11.320 --> 0:11:13.839 of the questions we're asking almost all of us right 0:11:13.840 --> 0:11:16.760 now is to what extent is this pandemic changing what 0:11:16.800 --> 0:11:18.720 we're going to be as opposed to just making us 0:11:18.720 --> 0:11:21.200 get there faster. Talk about the contactless payment is at 0:11:21.240 --> 0:11:22.880 some place we're going to get anyway, and to what 0:11:22.920 --> 0:11:26.160 extent has that really been rushed because of this pandemic. Well, 0:11:26.200 --> 0:11:31.040 I think this crisis has underscore just how important digitization 0:11:31.240 --> 0:11:35.400 is for individuals to be able to transact, to to 0:11:35.440 --> 0:11:38.560 get payments from their government, for small businesses to be 0:11:38.600 --> 0:11:43.040 able to be in contact with their customers through through 0:11:43.080 --> 0:11:46.040 e commerce, and to to do transactions in some form 0:11:46.679 --> 0:11:51.000 other than cash. So that trend was already underway, but 0:11:51.080 --> 0:11:53.959 I think this has accelerated it um and certainly in 0:11:53.960 --> 0:11:57.120 the United States, which had lagged behind a number of 0:11:57.200 --> 0:11:59.960 other markets when it came to contactless payments, we've seen 0:12:00.000 --> 0:12:03.440 a dramatic increase in demand for contact less. One of 0:12:03.440 --> 0:12:04.840 the things that we've heard a lot about from the 0:12:04.840 --> 0:12:08.360 major banks, in part is reserving for possible bad credit, 0:12:08.440 --> 0:12:10.720 because people are going to have a tougher time paying 0:12:10.720 --> 0:12:13.280 their credit cards off when they come do given the 0:12:13.320 --> 0:12:15.920 fact they're losing their jobs. As a practical matter, what 0:12:15.960 --> 0:12:18.679 are you seeing at MasterCard and what adjustments are you 0:12:18.760 --> 0:12:21.640 making for that? So, David, I'd like to say that 0:12:23.000 --> 0:12:25.720 Apple is not a fruit, Amazon is not a river, 0:12:25.840 --> 0:12:28.400 and MasterCard is not a credit card company. It's actually 0:12:28.400 --> 0:12:31.560 the banks who extend loans, where the infrastructure, where the 0:12:31.600 --> 0:12:35.199 technology that makes the payments happen. And one thing that 0:12:35.200 --> 0:12:37.600 that we have MasterCard had been committed to is is 0:12:37.640 --> 0:12:40.680 being a multi rail company. So we want to help 0:12:40.720 --> 0:12:43.679 people pay any way they want to pay, maybe that's 0:12:43.679 --> 0:12:46.440 on a credit card or a debit card, or account 0:12:46.440 --> 0:12:49.520 to account um or digitally. So we want to make 0:12:49.520 --> 0:12:52.800 sure we have now the capability were the only global 0:12:52.920 --> 0:12:56.360 multi rail company that can help people pay in any 0:12:56.400 --> 0:12:58.360 in any way if they want to, and if credit 0:12:58.400 --> 0:13:00.600 is not appropriate at the moment, then they can rely 0:13:00.679 --> 0:13:05.439 on debit or account to account payments. But we're sometaly 0:13:05.440 --> 0:13:08.200 doing everything we can to help our our customers and 0:13:08.240 --> 0:13:11.800 their customers get through this crisis. Okay, last question, Michael, 0:13:11.840 --> 0:13:14.720 I want to draw from your experience as a the 0:13:14.840 --> 0:13:17.079 U s t R the United States Trade Resent, as 0:13:17.120 --> 0:13:19.040 well as your experienced down master Card. Do you have 0:13:19.080 --> 0:13:21.800 any concern that as people are looking around the world 0:13:21.840 --> 0:13:24.800 and saying maybe globalization went too far, that maybe some 0:13:24.880 --> 0:13:27.040 of the about borders being put up in some places 0:13:27.040 --> 0:13:29.480 are not just for immigration, not just for trade, but 0:13:29.559 --> 0:13:32.520 could be actually for credit and for payment systems. Well, 0:13:32.720 --> 0:13:36.320 we do have a concern that that that people will 0:13:36.600 --> 0:13:43.840 uh countries will resort towards nationalism, nativism, protectionism. Um. You know, 0:13:44.200 --> 0:13:49.400 governments have absolutely legitimate interests and concerns about about privacy, 0:13:49.880 --> 0:13:52.880 wanting to make sure that they've got the best possible 0:13:53.000 --> 0:13:56.280 financial infrastructure in the country. But one thing that this 0:13:56.679 --> 0:13:59.920 crisis underscores, for example, is just how important that they're 0:14:00.080 --> 0:14:05.000 it is that there be really robust systems with cybersecurity 0:14:05.040 --> 0:14:08.320 protection with anti fraud protection and that you're able to 0:14:08.400 --> 0:14:12.320 see trends in data across countries so that you can, 0:14:12.520 --> 0:14:14.079 whether it's see i am AP for the World Bank 0:14:14.200 --> 0:14:17.640 or other institutions, take action to make sure you're addressing 0:14:18.360 --> 0:14:21.440 those who are most those are most vulnerable and being 0:14:21.680 --> 0:14:27.600 having a global payment capability UH seeing having access to 0:14:27.720 --> 0:14:31.640 multiple countries allows that to happen. So we're very committed 0:14:31.640 --> 0:14:35.320 to working with governments through this crisis. We're helping a 0:14:35.320 --> 0:14:38.920 lot of them both through our data analytics to understand 0:14:38.920 --> 0:14:41.520 the impacts of the COVID crisis and to our payment 0:14:41.560 --> 0:14:45.440 capability to help them disburse funds to small businesses and 0:14:45.640 --> 0:14:48.320 to individuals, and will continue to work with them as 0:14:48.360 --> 0:14:50.520 we come out of this crisis to ensure that they've 0:14:50.560 --> 0:14:55.560 got strong and secure payment systems UH in each country. 0:14:55.920 --> 0:14:59.480 That was Michael Froman, vice chairman of MasterCard. Coming up 0:14:59.480 --> 0:15:02.720 on Wall Street Week, how technology is helping us remake 0:15:02.760 --> 0:15:05.560 our lives in the time of the coronavirus and how 0:15:05.600 --> 0:15:08.320 it can do a better job. That's next on Wall 0:15:08.360 --> 0:15:16.840 Street Week on Bloomberg. This is Bloomberg World Street Week 0:15:17.080 --> 0:15:21.320 with David Weston from Bloomberg Radio. This week IBM also 0:15:21.360 --> 0:15:24.880 announced new ways of using technology to support the enormous 0:15:24.880 --> 0:15:27.440 weight that we're putting on I T in this age 0:15:27.480 --> 0:15:31.200 of social distancing. I talked with the new CEO of IBM, 0:15:31.280 --> 0:15:34.200 R Vin Krishna, about the way it is responsing to 0:15:34.240 --> 0:15:36.800 the needs of its customers, needs that none of us 0:15:36.920 --> 0:15:39.960 could have anticipated when we look at the pandemic and 0:15:40.040 --> 0:15:43.800 what's unfolding upon us. First, let's just have a lot 0:15:43.800 --> 0:15:47.000 of sympathy for those who are impacted by it. But then, 0:15:47.160 --> 0:15:49.680 as you have all shifted to remote work, the need 0:15:49.760 --> 0:15:52.440 for digital technologies, the need for cloud, the need for 0:15:52.520 --> 0:15:57.000 AI has accelerated. As you pointed out, our audience went 0:15:57.000 --> 0:16:00.000 from thirty thousand to eighty seven thousand. I do believe 0:16:00.040 --> 0:16:03.480 that's a reflection of the acceleration that our clients are 0:16:03.520 --> 0:16:07.560 seeing in adopting these technologies. If we look at cloud, 0:16:07.920 --> 0:16:09.720 it's a great way to be able to reach your 0:16:09.760 --> 0:16:12.800 clients virtually, to be able to get all your employees 0:16:12.840 --> 0:16:15.960 connected back to the enterprise in a remoted, virtual way. 0:16:16.520 --> 0:16:18.920 If you look at AI, it's about the only way 0:16:18.960 --> 0:16:22.000 to get the extreme automation to be able to handle 0:16:22.040 --> 0:16:24.480 the workloads that are going to be thrust upon us, 0:16:24.520 --> 0:16:26.840 and that's why we're making so many announcements at this 0:16:26.920 --> 0:16:30.440 conference in both those realms as well as the client 0:16:30.560 --> 0:16:33.240 interests that we can see with the with the people 0:16:33.240 --> 0:16:35.800 who are attending these sessions remotely. So let's talk about 0:16:35.800 --> 0:16:37.800 those clients, because you talk to them every day. We've 0:16:37.840 --> 0:16:40.240 all become so dependent on this technology. What are the 0:16:40.240 --> 0:16:42.680 things you're hearing most of your clients about, what they need, 0:16:42.880 --> 0:16:45.000 what change they need, what have proven say and what 0:16:45.040 --> 0:16:47.960 are you trying to do to address those So so 0:16:48.000 --> 0:16:51.080 a couple David, just to make a point this thing. 0:16:51.360 --> 0:16:54.280 So I'll be talking to the chief Digital officer for 0:16:54.320 --> 0:16:57.640 Anthem during the conference, and what they're talking about is 0:16:57.640 --> 0:17:00.960 how do they connect all their air clients, the forty 0:17:01.000 --> 0:17:04.119 million people who get healthcare, and how can they connect 0:17:04.160 --> 0:17:07.720 with them digitally and remotely, and how can they infuse 0:17:07.800 --> 0:17:10.920 those experiences with AI and how can they build them 0:17:10.960 --> 0:17:13.560 on a hybrid cloud platform so they can run them 0:17:13.600 --> 0:17:16.440 at scale and now them up and down depending upon 0:17:16.440 --> 0:17:19.959 the need. So that's a great example of a client 0:17:20.280 --> 0:17:23.119 but it's the same story we hear from everywhere, whether 0:17:23.160 --> 0:17:29.040 from people in the airline industry, insurance, banking, telecom. It's 0:17:29.040 --> 0:17:32.480 about bringing hybrid cloud technologies so they can deploy the 0:17:32.520 --> 0:17:36.719 workload wherever it's it's fit for purpose, and then they 0:17:36.720 --> 0:17:40.920 can use AI to not only do extreme automation which 0:17:40.920 --> 0:17:44.640 helps take cost out, but to actually make the experience 0:17:44.680 --> 0:17:48.000 even richer for all their end clients. And that's why 0:17:48.119 --> 0:17:51.119 we begin to see the infusion of both those technologies 0:17:51.480 --> 0:17:54.640 going forward. A quick example, one of the products we'll 0:17:54.640 --> 0:17:57.639 announce here is in the category we call AI for 0:17:57.760 --> 0:18:02.080 I and the product is called Watson AI OPS. Outages 0:18:02.160 --> 0:18:05.120 in I T cost the industry about two and sixty 0:18:05.240 --> 0:18:09.359 five billion dollars, but that's if you react after the fact, 0:18:09.480 --> 0:18:11.919 that cost is still there. If we can begin to 0:18:12.000 --> 0:18:14.360 predict what may go wrong and be able to put 0:18:14.400 --> 0:18:17.199 it right in the workflow, right in all the collaboration tools, 0:18:17.440 --> 0:18:20.639 and fix it even before it happens, that brings huge 0:18:20.680 --> 0:18:24.840 power unlocking the potential of AI for our clients, and 0:18:24.920 --> 0:18:27.800 that is something we really really are excited about, in 0:18:27.840 --> 0:18:30.720 addition to the other hybrid cloud technology we're also bringing 0:18:30.720 --> 0:18:33.480 out at this conference. So I'm gonna say those of 0:18:33.560 --> 0:18:35.720 us who are working from home and experience some of 0:18:35.760 --> 0:18:38.760 the glitches that happen are eager to have those corrected. 0:18:38.920 --> 0:18:41.679 When will that product be available will really redeem some 0:18:41.720 --> 0:18:44.400 of the situations that we have where our system goes down, 0:18:44.640 --> 0:18:47.400 there's some problem, we have to reboot it, things like that. 0:18:47.400 --> 0:18:50.399 That product actually is coming out now. We're announcing it 0:18:50.440 --> 0:18:53.400 at the conference in May, and people can start purchasing 0:18:53.440 --> 0:18:57.040 it now for deployment in this quarter, meaning before before 0:18:57.080 --> 0:18:59.639 the month of June. So that is a great, great power. 0:19:00.000 --> 0:19:02.320 But it talked a little bit more on AI. If 0:19:02.320 --> 0:19:04.840 you look at AI and it's impact on COVID, something 0:19:04.880 --> 0:19:08.520 we're all unfortunately suffering from right now. But I look 0:19:08.560 --> 0:19:11.880 at medical research in India, I look at government services 0:19:11.880 --> 0:19:15.200 in Poland, I look at hospitals in the United States, 0:19:15.640 --> 0:19:18.840 and these examples go across dozens of countries. We can 0:19:18.880 --> 0:19:22.960 all begin to use intelligent AI assistance to really take 0:19:22.960 --> 0:19:26.800 away in triage out a lot of information that people 0:19:26.840 --> 0:19:30.119 are looking for. So in a hospital case, parents who 0:19:30.160 --> 0:19:33.359 are anxious about their children can interact with the AI 0:19:33.440 --> 0:19:36.800 assistant and be and that way you can take a 0:19:36.840 --> 0:19:39.479 thousand odd calls and take them out of the medical 0:19:39.520 --> 0:19:42.800 professionals hands, allowing the medical professionals to focus on the 0:19:42.880 --> 0:19:46.560 much more serious cases where the AI reacts with, Hey, 0:19:46.600 --> 0:19:49.240 this is serious enough that you should actually have a 0:19:49.280 --> 0:19:52.840 person now interact. I think these are really useful examples 0:19:53.160 --> 0:19:55.879 to show how AI can go, not just an I 0:19:55.960 --> 0:19:58.160 T as you pointed out, David, where we all would 0:19:58.200 --> 0:20:00.720 like all of our infrastructure to stay up all the time, 0:20:00.960 --> 0:20:03.360 and we do believe the tools in the next month 0:20:03.359 --> 0:20:05.520 I'm going to help there, but also in terms of 0:20:05.560 --> 0:20:10.359 helping our citizens and governments and medical professionals be able 0:20:10.400 --> 0:20:13.840 to help everyone deal with COVID nineteen. So when you 0:20:13.880 --> 0:20:16.880 make a very important point, they're mentioning various countries where 0:20:16.920 --> 0:20:19.919 this could be applied. The situation has been global when 0:20:19.960 --> 0:20:21.920 it comes to internet and digital At the same time, 0:20:22.040 --> 0:20:24.440 even before the pandemic, there were some countries that are 0:20:24.440 --> 0:20:26.919 trying to draw some borders when it came to data 0:20:27.240 --> 0:20:29.320 and when it came to some of the Internet's issues. 0:20:29.520 --> 0:20:32.680 Are you concerned Do you see any indications that the 0:20:32.720 --> 0:20:36.119 pandemic problems that we're seeing may actually increase the resistance 0:20:36.320 --> 0:20:39.760 two flows up data and information across borders. Look, David, Um, 0:20:40.200 --> 0:20:43.520 I'll sort of begin with my perspective. Um. Of course, 0:20:43.560 --> 0:20:46.119 the economies are always going to and nasues are always 0:20:46.119 --> 0:20:49.240 going to try to advantage themselves. But when we step back, 0:20:49.640 --> 0:20:52.320 I think both global trade and the free flow of 0:20:52.440 --> 0:20:56.120 data have shown that the entire economy, the global economy, 0:20:56.160 --> 0:20:59.960 gets better and everyone benefits. I think it's a fault deliver. 0:21:00.160 --> 0:21:02.679 And people think about a win lose. It's not a 0:21:02.760 --> 0:21:05.080 sports game, but it's a win lose. It's a win 0:21:05.160 --> 0:21:07.000 win if you can agrease the size at the bar 0:21:07.200 --> 0:21:11.800 for everyone. That was Arvin Krishna, CEO of IBM. Coming up, 0:21:12.240 --> 0:21:14.840 we wrap up the week with our special contributor Larry 0:21:14.920 --> 0:21:18.879 Summers of Harvard. That's next on Wall Street Week on Bloomberg. 0:21:24.680 --> 0:21:28.640 This is Bloomberg Wall Street Week with David Weston from 0:21:28.760 --> 0:21:32.159 Bloomberg Radio. We knew it was coming, and yet it's 0:21:32.160 --> 0:21:36.159 shocked us. Nonetheless, twenty point five million Americans losing their 0:21:36.200 --> 0:21:38.200 jobs in just one month, and every one of those 0:21:38.280 --> 0:21:41.720 jobs represents a family that has been appended. So it's 0:21:41.760 --> 0:21:44.800 hardly any surprise. The President Trump has said that we 0:21:44.920 --> 0:21:47.639 must get the economy going again, no matter what, and 0:21:47.680 --> 0:21:51.280 he recognizes there are certain risks involved in doing that, 0:21:51.680 --> 0:21:55.639 even if it means certain health and certain loss of life. Potentially, 0:21:56.160 --> 0:21:58.960 it really seems an unthinkable choice really, but let's be 0:21:59.000 --> 0:22:01.480 honest with ourselves. We know that sooner or later we 0:22:01.520 --> 0:22:03.560 have to get the economy going again. We also know 0:22:03.600 --> 0:22:06.320 that's gonna entail some risk. The question is how much 0:22:06.440 --> 0:22:09.000 risk and how best can we manage that risk? And 0:22:09.000 --> 0:22:10.879 so we begin with what we're told as a painful 0:22:10.960 --> 0:22:13.359 choice between tens of millions of people out of work 0:22:13.400 --> 0:22:15.960 on the one hand, and another hand, those whose life 0:22:16.240 --> 0:22:18.800 could hang in the balance. And to help us address 0:22:18.840 --> 0:22:21.960 that question, welcome now Wall Street Week special contributor Larry 0:22:22.040 --> 0:22:26.840 Summers of Harvard. He was, of course Secretary Treasury. Larry, 0:22:26.840 --> 0:22:29.040