1 00:00:01,400 --> 00:00:04,120 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along 2 00:00:04,120 --> 00:00:06,200 Speaker 1: with my co host of Bonnie Quinn. Every business day 3 00:00:06,240 --> 00:00:10,320 Speaker 1: we bring you interviews from CEO, market pros, and Bloomberg experts, 4 00:00:10,400 --> 00:00:13,600 Speaker 1: along with essential market moving news. Find the Bloomberg Markets 5 00:00:13,600 --> 00:00:17,000 Speaker 1: Podcast on Apple podcast or wherever you listen to podcasts, 6 00:00:17,000 --> 00:00:20,239 Speaker 1: and on Bloomberg dot com. Alright, let's take a look 7 00:00:20,320 --> 00:00:23,520 Speaker 1: at bitcoin for something just a little bit different. Why 8 00:00:23,520 --> 00:00:26,320 Speaker 1: not let's move to the digital currency space. We're looking 9 00:00:26,360 --> 00:00:29,080 Speaker 1: at thirty three eight hundred forty six today. It is 10 00:00:29,200 --> 00:00:32,440 Speaker 1: down about three tenths of one after a couple of 11 00:00:32,680 --> 00:00:35,400 Speaker 1: very down days in the last few days. Let's bring 12 00:00:35,400 --> 00:00:37,479 Speaker 1: in somebody who knows a lot about this. Meltham the 13 00:00:37,600 --> 00:00:41,319 Speaker 1: Mirrors is chief strategy officer from coin shares, Google's seven 14 00:00:41,400 --> 00:00:44,640 Speaker 1: hundred fifty million dollars in the digital space. Well to 15 00:00:44,840 --> 00:00:48,559 Speaker 1: thank you for joining. What do you make of the 16 00:00:48,600 --> 00:00:51,640 Speaker 1: flows into the likes of bitcoin over the last few 17 00:00:51,720 --> 00:00:54,959 Speaker 1: days and weeks and the amount of sort of new 18 00:00:55,080 --> 00:00:58,480 Speaker 1: vehicles that have cropped up, including Anthony scaramuci Is new 19 00:00:58,520 --> 00:01:02,560 Speaker 1: Bitcoin ETF. Yeah. Absolutely so great to be back on 20 00:01:02,600 --> 00:01:04,840 Speaker 1: the show, and I want to make a minor correction. 21 00:01:05,040 --> 00:01:07,600 Speaker 1: We actually coin shares hit a record high as three 22 00:01:07,600 --> 00:01:09,720 Speaker 1: point nine billion in a u M, so it's quite 23 00:01:09,720 --> 00:01:11,880 Speaker 1: a step up from the seven hundred fifty million we 24 00:01:11,920 --> 00:01:14,559 Speaker 1: had about a year ago. And actually on the first 25 00:01:14,600 --> 00:01:16,840 Speaker 1: trading day of the year this year, we had a 26 00:01:16,880 --> 00:01:19,720 Speaker 1: new high where we saw over two hundred million dollars 27 00:01:19,720 --> 00:01:23,160 Speaker 1: of our change trader products traded in one single trading 28 00:01:23,160 --> 00:01:26,920 Speaker 1: session January four, big day. So I'll definitely say there's 29 00:01:26,959 --> 00:01:31,600 Speaker 1: a lot of interest in crypto ETPs and crypto vehicles. 30 00:01:31,760 --> 00:01:35,000 Speaker 1: Just melt him. Let's let's carify exactly that you had 31 00:01:35,040 --> 00:01:37,560 Speaker 1: seven fifty million a year ago, you have what now? 32 00:01:37,600 --> 00:01:40,360 Speaker 1: And has it been due to flows or due to 33 00:01:40,440 --> 00:01:43,040 Speaker 1: the you know, the massive gains that we've seen in 34 00:01:43,080 --> 00:01:46,640 Speaker 1: the likes of bitcoin. Absolutely, so we have three point 35 00:01:46,720 --> 00:01:49,680 Speaker 1: nine billion in assets under management in our exchange traded 36 00:01:49,720 --> 00:01:52,560 Speaker 1: products and that is a result of two factors, as 37 00:01:52,600 --> 00:01:55,760 Speaker 1: you alluded to. One factor, obviously, is the price rise. 38 00:01:56,240 --> 00:01:59,480 Speaker 1: That in addition, we've seen a tremendous amount of inflows 39 00:01:59,520 --> 00:02:02,680 Speaker 1: into our et p s as well as other structured products. 40 00:02:03,200 --> 00:02:05,520 Speaker 1: And again what we're seeing is a tremendous amount of 41 00:02:05,520 --> 00:02:09,720 Speaker 1: participation from not just crypto native asset managers like ourselves. 42 00:02:10,120 --> 00:02:13,440 Speaker 1: We are currently the second largest asset manager in the 43 00:02:13,520 --> 00:02:17,840 Speaker 1: world in our industry. But we're also seeing traditional asset managers, 44 00:02:17,960 --> 00:02:22,080 Speaker 1: hedge fund managers Anthony Scaramucci, one River in the UK 45 00:02:22,560 --> 00:02:25,919 Speaker 1: entering into this market and in significant size. We're talking 46 00:02:25,960 --> 00:02:30,440 Speaker 1: about multibillion dollar vehicles here. So new inflows combined with 47 00:02:30,520 --> 00:02:33,720 Speaker 1: the price rally has resulted in a tremendous amount of 48 00:02:33,760 --> 00:02:37,239 Speaker 1: market activity across the board. Talk to us about the 49 00:02:37,240 --> 00:02:41,280 Speaker 1: trading that we've seen melt him in bitcoin just specifically, 50 00:02:41,720 --> 00:02:45,080 Speaker 1: it's had just extraordinary rise up here. I'm just looking 51 00:02:45,120 --> 00:02:47,280 Speaker 1: at it. You know, back in March, when a lot 52 00:02:47,280 --> 00:02:49,600 Speaker 1: of risk assets were melting down, it was about five 53 00:02:49,639 --> 00:02:51,880 Speaker 1: thousand dollars in here. We are, you know, just under 54 00:02:51,919 --> 00:02:55,280 Speaker 1: thirty four thousand after peaking it over forty. Talked us 55 00:02:55,280 --> 00:02:57,839 Speaker 1: about what we've seen in the price of bitcoin, maybe 56 00:02:57,840 --> 00:03:03,800 Speaker 1: even the recent volatility, uh bitcoin absolutely and the trading story. 57 00:03:03,960 --> 00:03:06,200 Speaker 1: You know, we have a large trading desk at our firm. 58 00:03:06,240 --> 00:03:09,239 Speaker 1: We're trading about five to seven billion of notional volume 59 00:03:09,240 --> 00:03:13,040 Speaker 1: every month. What we've really seen last year around this time, 60 00:03:13,120 --> 00:03:16,760 Speaker 1: the majority of bitcoin trading volume was in the bitcoin 61 00:03:17,080 --> 00:03:20,520 Speaker 1: teather trade pair. Teather UM, as some of your listeners 62 00:03:20,600 --> 00:03:24,600 Speaker 1: might know, is a blockchain based digital dollar. So the 63 00:03:24,639 --> 00:03:27,960 Speaker 1: majority of volume we saw was happening during Asia trading 64 00:03:28,000 --> 00:03:31,560 Speaker 1: hours in the Bitcoin teather trading pair. Over the last 65 00:03:31,600 --> 00:03:34,640 Speaker 1: twelve months and particularly in December and the start of 66 00:03:34,760 --> 00:03:37,600 Speaker 1: this year, what we've seen is an uptick in volume 67 00:03:37,680 --> 00:03:40,440 Speaker 1: in the Bitcoin USD pair, which is now the most 68 00:03:40,480 --> 00:03:44,600 Speaker 1: dominant pair, and in addition, a lot of trading activity 69 00:03:44,720 --> 00:03:48,480 Speaker 1: has shifted to US and UK market hours, So to us, 70 00:03:48,520 --> 00:03:51,080 Speaker 1: that's one of the clear indications that volume is starting 71 00:03:51,120 --> 00:03:53,920 Speaker 1: to shift. And then the last piece I'll add that's 72 00:03:53,960 --> 00:03:57,160 Speaker 1: important to note is, as many may know, the CME 73 00:03:57,240 --> 00:04:00,840 Speaker 1: in tween launched a bitcoin derivative market. They have a 74 00:04:00,920 --> 00:04:05,360 Speaker 1: futures contract and an options contract. In December, the Bitcoin 75 00:04:05,400 --> 00:04:08,760 Speaker 1: options contract at Semi hit an all time high of 76 00:04:08,880 --> 00:04:11,880 Speaker 1: one billion in monthly x three, and we're seeing a 77 00:04:11,920 --> 00:04:15,440 Speaker 1: tremendous amount of up kicking volume on that CME venue. 78 00:04:15,760 --> 00:04:18,719 Speaker 1: Whereas historically in the past, the majority of options and 79 00:04:18,720 --> 00:04:23,440 Speaker 1: derivatives volume had been on crypto native platforms, particularly those 80 00:04:23,480 --> 00:04:26,680 Speaker 1: based in the Asia Pacific region, we're now starting to 81 00:04:26,680 --> 00:04:30,880 Speaker 1: see a lot more participation in USD denominated markets tied 82 00:04:30,880 --> 00:04:34,560 Speaker 1: to the legacy banking system and access by institutions through 83 00:04:34,600 --> 00:04:39,599 Speaker 1: their existing scms and their existing brokerag providers. How do 84 00:04:39,640 --> 00:04:42,560 Speaker 1: you take a pair build him, mild him. I mean, 85 00:04:43,080 --> 00:04:46,520 Speaker 1: you know, obviously we quote bitcoin in terms of it 86 00:04:46,680 --> 00:04:49,520 Speaker 1: versus the US dollar. You talk about in versus tether 87 00:04:49,680 --> 00:04:53,240 Speaker 1: and others. What what are the what are the options 88 00:04:53,240 --> 00:04:56,560 Speaker 1: I suppose these days? Sure, so tether is a dollar, right, 89 00:04:56,640 --> 00:04:58,600 Speaker 1: Every tether is equal to a dollar. It's just that 90 00:04:58,680 --> 00:05:01,400 Speaker 1: the dollar is on a on a blockchain, so it 91 00:05:01,480 --> 00:05:05,440 Speaker 1: trades natively on chain. It's very similar to the concept 92 00:05:05,520 --> 00:05:08,560 Speaker 1: of the central bank digital currency, except for central bank 93 00:05:08,640 --> 00:05:11,480 Speaker 1: issuing it. In this instance, it's a private company issuing 94 00:05:11,480 --> 00:05:15,359 Speaker 1: it with the dollars held in reserve and collateral. And really, 95 00:05:15,360 --> 00:05:18,320 Speaker 1: I think the importance of the shift from tethered to 96 00:05:18,480 --> 00:05:21,680 Speaker 1: us D is an indication that more of the people 97 00:05:21,720 --> 00:05:25,560 Speaker 1: who are accessing capital markets in crypto are coming from 98 00:05:25,680 --> 00:05:28,880 Speaker 1: a bank accounts rather than being crypto native trading firms. 99 00:05:29,200 --> 00:05:31,880 Speaker 1: So I think that's really the key insight for US there. 100 00:05:32,440 --> 00:05:34,680 Speaker 1: And in terms of trade pairs, you know, bitcoin is 101 00:05:34,720 --> 00:05:38,080 Speaker 1: a very deep, very liquid market at this stage three 102 00:05:38,160 --> 00:05:41,360 Speaker 1: years ago not so deep, not so liquids, and today 103 00:05:41,800 --> 00:05:44,960 Speaker 1: it's a twenty four seven global market. UM is quoted 104 00:05:45,200 --> 00:05:48,600 Speaker 1: primarily in us D, but obviously there are hundreds of 105 00:05:48,960 --> 00:05:51,600 Speaker 1: trade pairs and various currencies, but the us D trade 106 00:05:51,640 --> 00:05:54,400 Speaker 1: pair is really the most prominent one, and that's certainly 107 00:05:54,400 --> 00:05:57,960 Speaker 1: the one we check at our firm. Extraordinary story, Milton, 108 00:05:58,000 --> 00:05:59,880 Speaker 1: thank you so much for joining us. We really pre 109 00:06:00,200 --> 00:06:03,320 Speaker 1: getting the update and the update on the assets under management. Uh, 110 00:06:03,320 --> 00:06:07,480 Speaker 1: that is just extraordinary. Of the past twelve months. Meltem 111 00:06:07,560 --> 00:06:12,520 Speaker 1: Demere's chief strategy off for Coin Shares Group just really 112 00:06:12,600 --> 00:06:15,320 Speaker 1: Vanni just that the growth in and the depth of 113 00:06:15,360 --> 00:06:17,839 Speaker 1: the marketplace, as Meltem was mentioned to me, that's one 114 00:06:17,839 --> 00:06:20,640 Speaker 1: of the most oppressive things, the depth of the marketplace. Yeah, 115 00:06:20,680 --> 00:06:22,559 Speaker 1: I mean, you know, let's not forget a bitcoin itself 116 00:06:22,600 --> 00:06:25,480 Speaker 1: is up three d thirty percent over the last twelve months, 117 00:06:25,600 --> 00:06:28,000 Speaker 1: so you know that accounts for for some of that. 118 00:06:28,120 --> 00:06:33,840 Speaker 1: But also these are such tremendously volatile assets, Paul, you know, yeah, 119 00:06:33,880 --> 00:06:36,280 Speaker 1: but as presumably as you talk to the bulls, as 120 00:06:36,279 --> 00:06:39,720 Speaker 1: this market becomes deeper and broader, uh, and and perhaps 121 00:06:39,720 --> 00:06:42,800 Speaker 1: more liquid with more players, that becomes a little bit 122 00:06:43,080 --> 00:06:47,560 Speaker 1: more stable, we'll see, and it's time to talk markets 123 00:06:47,800 --> 00:06:50,640 Speaker 1: once again. Now let's bring in Brent Shooty, chief Investment 124 00:06:50,640 --> 00:06:55,320 Speaker 1: Strategies for North will Western Mutual Wealth Management brand. It's 125 00:06:55,360 --> 00:06:58,640 Speaker 1: been quite a few months. It's been you know, crazy, 126 00:06:58,760 --> 00:07:01,760 Speaker 1: crazy times here in United States. The markets those seem 127 00:07:01,800 --> 00:07:05,600 Speaker 1: to obligely just gone higher and higher, at least equity markets, 128 00:07:05,720 --> 00:07:07,719 Speaker 1: and you know, more recently we've been getting a bit 129 00:07:07,720 --> 00:07:10,120 Speaker 1: of a shift in bond markets. What's that's what's the 130 00:07:10,160 --> 00:07:12,600 Speaker 1: main decision that you've had to make over the last 131 00:07:12,640 --> 00:07:17,200 Speaker 1: day four weeks. Well, I think your earlier comments about 132 00:07:17,280 --> 00:07:19,920 Speaker 1: kind of the markets moving higher and some of the 133 00:07:19,960 --> 00:07:22,000 Speaker 1: issues that are still out there, I want to point 134 00:07:22,040 --> 00:07:24,520 Speaker 1: out that the markets discount more into the future, and 135 00:07:24,560 --> 00:07:27,000 Speaker 1: so the markets are thinking about the end of COVID 136 00:07:27,040 --> 00:07:29,120 Speaker 1: nine king hopefully and I was getting back onto public 137 00:07:29,320 --> 00:07:31,720 Speaker 1: and those brighter days ahead in the future. And I 138 00:07:31,720 --> 00:07:33,760 Speaker 1: think that as you invest money, as you think about 139 00:07:33,760 --> 00:07:38,000 Speaker 1: those things. Um, certainly there has been some troubling data 140 00:07:38,000 --> 00:07:40,320 Speaker 1: out there's been some troubling things happen which have happened 141 00:07:40,360 --> 00:07:42,960 Speaker 1: in the last four weeks. But from an investment perspective, 142 00:07:43,000 --> 00:07:45,080 Speaker 1: I think it's important to point out that you always 143 00:07:45,200 --> 00:07:47,200 Speaker 1: need to be looking ahead, and I think the last 144 00:07:47,280 --> 00:07:49,160 Speaker 1: four weeks we've had to focus on that quite a bit, 145 00:07:49,480 --> 00:07:52,240 Speaker 1: making sure that we're looking ahead into hopefully the next 146 00:07:52,280 --> 00:07:55,800 Speaker 1: few months when the world looks just a bit brighter 147 00:07:56,080 --> 00:07:58,840 Speaker 1: and its operating on multiple centers that you're owth. So 148 00:07:58,920 --> 00:08:01,040 Speaker 1: I guess, in a way to your question, the last 149 00:08:01,080 --> 00:08:03,840 Speaker 1: four weeks, UM certainly looking at the data, but looking 150 00:08:03,880 --> 00:08:05,480 Speaker 1: ahead more so. And that's what the market is doing 151 00:08:05,560 --> 00:08:07,520 Speaker 1: right now. It's looking ahead to what happens in the future, 152 00:08:07,520 --> 00:08:09,640 Speaker 1: and it's seeing a brighter one ahead, all right, So 153 00:08:09,680 --> 00:08:12,640 Speaker 1: a brighter outlook ahead. Where are you going? Where are 154 00:08:12,640 --> 00:08:16,480 Speaker 1: you allocating capital? Brent Well? So, I think for the 155 00:08:16,520 --> 00:08:19,360 Speaker 1: last three years, technology growth stocks have been only game 156 00:08:19,400 --> 00:08:21,800 Speaker 1: in town and kind of ties into my cylinders of 157 00:08:21,840 --> 00:08:24,880 Speaker 1: growth commentary because I do think next year will be there. 158 00:08:24,920 --> 00:08:26,520 Speaker 1: This year, I should say, now we're in the new year, 159 00:08:26,800 --> 00:08:29,440 Speaker 1: um will be the first year in many actually three 160 00:08:29,480 --> 00:08:32,000 Speaker 1: that we've operated both in the US and the globe 161 00:08:32,040 --> 00:08:34,880 Speaker 1: on multiple cylinders of growth. And by that I mean 162 00:08:34,920 --> 00:08:36,880 Speaker 1: back in two thous eighteen we were kind of introduced 163 00:08:36,920 --> 00:08:41,280 Speaker 1: to the trade war that was designed to slow global growth, 164 00:08:41,600 --> 00:08:44,640 Speaker 1: and it was designed to harm manufacturing and exports around 165 00:08:44,640 --> 00:08:47,680 Speaker 1: the around the world, and that actually had a blowback 166 00:08:47,720 --> 00:08:49,680 Speaker 1: into the US. And so if you think about it, 167 00:08:49,720 --> 00:08:52,520 Speaker 1: technology was really unimpacted by that. It was the place 168 00:08:52,520 --> 00:08:56,320 Speaker 1: of earnings growth. Growth was narrow and the market was narrow. 169 00:08:56,480 --> 00:08:59,160 Speaker 1: Those two things were aligned as you look in the 170 00:08:59,840 --> 00:09:03,080 Speaker 1: one um that hopefully will be off the boil um. 171 00:09:03,160 --> 00:09:05,520 Speaker 1: So COVID, I should say, also kept that going. COVID 172 00:09:05,559 --> 00:09:08,160 Speaker 1: actually in the beginning narrowed the economy narrow the market's 173 00:09:08,200 --> 00:09:10,240 Speaker 1: technology was kind of the only game in town. And 174 00:09:10,360 --> 00:09:12,800 Speaker 1: recently you've seen the market broaden out because the economy 175 00:09:12,840 --> 00:09:14,959 Speaker 1: is brought out, and so we continue to think that's 176 00:09:14,960 --> 00:09:18,480 Speaker 1: a backrop in That means that things that haven't done 177 00:09:18,520 --> 00:09:21,520 Speaker 1: as well, like cyclical stocks, like value stocks, like small 178 00:09:21,559 --> 00:09:24,760 Speaker 1: cap stocks which started doing better in Q four, will 179 00:09:24,800 --> 00:09:26,839 Speaker 1: continue to do well into the new year. And that's 180 00:09:26,840 --> 00:09:29,679 Speaker 1: where we're focusing most of our attention on. That's fascinating. 181 00:09:29,720 --> 00:09:32,360 Speaker 1: So what kind of value plays are out there that 182 00:09:32,400 --> 00:09:35,960 Speaker 1: you see them well from a broad perspective. I we 183 00:09:35,960 --> 00:09:38,920 Speaker 1: we we use broad based et f s and mutual 184 00:09:38,920 --> 00:09:40,920 Speaker 1: funds for the most part, so we are investing along 185 00:09:41,000 --> 00:09:43,319 Speaker 1: the lines of just value stocks and some of those 186 00:09:43,320 --> 00:09:44,839 Speaker 1: sectors that have been harmed a lot. So I think 187 00:09:44,840 --> 00:09:47,600 Speaker 1: the financial stink energy UM think stocks that are just 188 00:09:47,720 --> 00:09:50,240 Speaker 1: cheaper than some of the growth stocks that have been 189 00:09:50,880 --> 00:09:53,440 Speaker 1: um bit up kind of because rates are low and 190 00:09:53,480 --> 00:09:56,080 Speaker 1: because their story. Stocks with a compelling future. I'm not 191 00:09:56,080 --> 00:09:58,680 Speaker 1: suggesting that future doesn't come to fruition. I just think 192 00:09:59,559 --> 00:10:00,920 Speaker 1: a year when you kind of get back to some 193 00:10:00,920 --> 00:10:04,600 Speaker 1: of the things are a bit more boring, like perhaps industrials, financials, 194 00:10:04,800 --> 00:10:08,480 Speaker 1: things where UM things that have been impacted for the 195 00:10:08,520 --> 00:10:11,000 Speaker 1: past few years because of some of these things that 196 00:10:11,040 --> 00:10:13,720 Speaker 1: are out there that have kept global growth from hiring 197 00:10:13,720 --> 00:10:15,920 Speaker 1: on all cylinders, which, as I mentioned before, I think 198 00:10:16,720 --> 00:10:21,120 Speaker 1: that alleviates so Brent, I guess the you know, one 199 00:10:21,120 --> 00:10:23,240 Speaker 1: of the issues for a lot of people as a 200 00:10:23,559 --> 00:10:27,120 Speaker 1: think about equity markets is market cap. The big cap 201 00:10:27,240 --> 00:10:29,880 Speaker 1: names you talked about have been such good stories for 202 00:10:29,920 --> 00:10:32,520 Speaker 1: a long time. And as we broaden out our view, 203 00:10:33,120 --> 00:10:36,480 Speaker 1: how are you viewing small cap mid cap stocks? Do 204 00:10:36,480 --> 00:10:41,960 Speaker 1: you do you still see UM? Is there opportunity there? Yes, 205 00:10:42,160 --> 00:10:43,760 Speaker 1: I mean I think they've certainly. I mean so in 206 00:10:43,800 --> 00:10:45,439 Speaker 1: the fourth quarter small and mid cap stocks and the 207 00:10:45,480 --> 00:10:48,199 Speaker 1: indextins we look at we're up twenties four and respectively. 208 00:10:48,679 --> 00:10:51,240 Speaker 1: I'm not suggesting that large caps aren't a bad story. 209 00:10:51,280 --> 00:10:53,880 Speaker 1: I think the SMP was up twelve. So it's not 210 00:10:53,960 --> 00:10:56,960 Speaker 1: that there isn't still opportunities within some of those other segments. 211 00:10:57,480 --> 00:11:00,640 Speaker 1: It's just that I think in all in mid cap 212 00:11:00,679 --> 00:11:03,520 Speaker 1: stocks and value stocks to that matter, have further room 213 00:11:03,600 --> 00:11:06,800 Speaker 1: to run. Look, growth versus value is at all time extremes, 214 00:11:06,880 --> 00:11:08,760 Speaker 1: and I think that's been logical for the reasons that 215 00:11:08,800 --> 00:11:12,680 Speaker 1: I mentioned. But as you think about think about more 216 00:11:12,720 --> 00:11:15,240 Speaker 1: monetary policies that that is not going to stop. They 217 00:11:15,280 --> 00:11:17,880 Speaker 1: have to have credibility in the future. They need to 218 00:11:17,960 --> 00:11:20,920 Speaker 1: persent inflation. The feds QUEI is designed to make you 219 00:11:20,960 --> 00:11:25,400 Speaker 1: take risk. Fiscal policymakers are not going to stop UM. 220 00:11:25,440 --> 00:11:28,400 Speaker 1: You have COVID hopefully alleviating its impact on the rest 221 00:11:28,400 --> 00:11:31,079 Speaker 1: of the economy. You have an inventory rebuild that has 222 00:11:31,120 --> 00:11:33,040 Speaker 1: to happen, and you have some pent up demand from 223 00:11:33,080 --> 00:11:36,800 Speaker 1: consumers who actually UM certainly in the aggregate, have saved money. 224 00:11:36,840 --> 00:11:38,880 Speaker 1: There's still are people who are in trouble and hopefully 225 00:11:38,920 --> 00:11:40,840 Speaker 1: stimulist gets them through and then they get jobs back. 226 00:11:41,240 --> 00:11:43,280 Speaker 1: But you have an economy that's going to be operating 227 00:11:43,280 --> 00:11:46,080 Speaker 1: on all cylinders, and to us, that means this recent 228 00:11:46,400 --> 00:11:51,000 Speaker 1: rotation that we have seen continues in because earnings growth 229 00:11:51,040 --> 00:11:53,680 Speaker 1: will broaden out and technology won't be the only game 230 00:11:53,679 --> 00:11:56,760 Speaker 1: in town. And so UM, that's where we're kind of focused. 231 00:11:56,880 --> 00:11:59,480 Speaker 1: Would you go so far then Brenda's to be short 232 00:11:59,600 --> 00:12:04,839 Speaker 1: some of these growth stocks, like a test for example. Now, UM, 233 00:12:04,920 --> 00:12:07,360 Speaker 1: that's not our ore. We are long term investors. We 234 00:12:07,360 --> 00:12:09,000 Speaker 1: take a long term approach and a long term out, 235 00:12:09,080 --> 00:12:11,800 Speaker 1: but we still own large cap stocks. Well, I suppose 236 00:12:11,840 --> 00:12:13,680 Speaker 1: what I'm really asking is do you think they're going 237 00:12:13,720 --> 00:12:15,680 Speaker 1: to settle off massively? You may not take a position 238 00:12:15,720 --> 00:12:17,600 Speaker 1: on it given what you do you know, but but 239 00:12:17,800 --> 00:12:20,360 Speaker 1: do you think they're going to sell off? No, I 240 00:12:20,360 --> 00:12:22,079 Speaker 1: don't know that there's a massive sell off out there. 241 00:12:22,280 --> 00:12:24,040 Speaker 1: And I think, and I've equated this in the past, 242 00:12:24,080 --> 00:12:26,720 Speaker 1: to let me make a caveat, I don't think things 243 00:12:26,840 --> 00:12:28,440 Speaker 1: in some of those stocks are anywhere near they were. 244 00:12:29,600 --> 00:12:32,439 Speaker 1: There are earnings, there are UM stories that are there 245 00:12:32,480 --> 00:12:36,000 Speaker 1: that are real versus what I think happened. I'm just 246 00:12:36,000 --> 00:12:39,640 Speaker 1: suggesting that investors a UM don't lose diversification because I 247 00:12:39,640 --> 00:12:41,600 Speaker 1: think right now the temptation is high to do so 248 00:12:42,000 --> 00:12:45,040 Speaker 1: because they've been emboldened by the past and be nudge 249 00:12:45,040 --> 00:12:48,120 Speaker 1: their portfolios UM in that direction because I think there's 250 00:12:48,160 --> 00:12:51,120 Speaker 1: the opportunity to add incremental performance above and beyond UM 251 00:12:51,160 --> 00:12:52,839 Speaker 1: what they would get by just taking you know, a 252 00:12:52,880 --> 00:12:56,200 Speaker 1: steady hold, buy and hold kind of perspective. Hey, Brent, 253 00:12:56,280 --> 00:12:58,439 Speaker 1: thanks so much for joining us again. We always appreciate 254 00:12:58,679 --> 00:13:02,719 Speaker 1: your perspective. Brent Shooty, chief investment strategist for the Northwestern 255 00:13:02,880 --> 00:13:07,160 Speaker 1: Mutual Wealth Management giving us his bullish call on the 256 00:13:07,240 --> 00:13:12,640 Speaker 1: markets for talking about that rotation trade, allocating a little 257 00:13:12,640 --> 00:13:15,199 Speaker 1: bit more to some of those UM growth I mean 258 00:13:15,240 --> 00:13:19,320 Speaker 1: the value stories cyclical names, maybe small caps as well. 259 00:13:21,760 --> 00:13:24,280 Speaker 1: It is time for Bloomberg Opinion. We're joined today by 260 00:13:24,360 --> 00:13:28,800 Speaker 1: Jonah Sarah. He's a Bloomberg Opinion columnist joining us. Joe's 261 00:13:28,800 --> 00:13:32,920 Speaker 1: out with a fascinating column today on a very important topic, 262 00:13:32,960 --> 00:13:37,520 Speaker 1: and that is what liability should the social media companies 263 00:13:37,640 --> 00:13:42,160 Speaker 1: like Twitter, like Facebook and others have for the content 264 00:13:42,240 --> 00:13:44,959 Speaker 1: that appears on their platform. And of course that is 265 00:13:45,000 --> 00:13:48,720 Speaker 1: absolutely front of in center right here. As President Trump 266 00:13:49,080 --> 00:13:52,240 Speaker 1: uh has been uh temporarily at least taken off of 267 00:13:52,240 --> 00:13:55,240 Speaker 1: both Facebook and Twitter for some issues as it relates 268 00:13:55,360 --> 00:13:58,559 Speaker 1: to last week's uprising. Uh in the Capital Joe, thanks 269 00:13:58,600 --> 00:14:00,920 Speaker 1: so much for joining us here. Love to get your 270 00:14:01,000 --> 00:14:07,280 Speaker 1: thoughts here, UM about this very important topic. UM well, 271 00:14:07,280 --> 00:14:10,720 Speaker 1: I've pretty brought a question. Um My, my core, my 272 00:14:10,840 --> 00:14:15,560 Speaker 1: core feeling is that, um, we just should not live 273 00:14:15,559 --> 00:14:20,720 Speaker 1: in a world where for Silicon Valley bros, you know 274 00:14:21,520 --> 00:14:26,200 Speaker 1: Tim named Tim and Mark and and and uh Jack 275 00:14:26,400 --> 00:14:31,680 Speaker 1: and and Sundar get to decide you know, who who 276 00:14:31,720 --> 00:14:33,480 Speaker 1: gets to be on their platform and who doesn't get 277 00:14:33,520 --> 00:14:35,640 Speaker 1: to be on their platform, or what kind of speech 278 00:14:35,680 --> 00:14:38,320 Speaker 1: I should say, gets to be on their platform. So 279 00:14:38,720 --> 00:14:43,160 Speaker 1: you know, there's a there's a fundamental problem there that 280 00:14:43,320 --> 00:14:48,720 Speaker 1: hasn't been solved. And um, you know, Facebook has fifteen 281 00:14:48,760 --> 00:14:54,160 Speaker 1: thousand content moderators and yet there's still all kinds of 282 00:14:54,160 --> 00:14:57,560 Speaker 1: hate speech on there. Obviously, this uprising was was in 283 00:14:57,640 --> 00:15:02,280 Speaker 1: no small part planned on Facebook, um and and Facebook 284 00:15:02,360 --> 00:15:04,440 Speaker 1: is always behind the curve and trying to get these things. 285 00:15:04,600 --> 00:15:07,520 Speaker 1: These things often in many cases leaves demand because they 286 00:15:07,520 --> 00:15:09,840 Speaker 1: don't violate their terms of service, and we barely know 287 00:15:09,880 --> 00:15:15,800 Speaker 1: what their terms of service are, so so continue No, no, no, 288 00:15:15,920 --> 00:15:18,240 Speaker 1: you go, you go your turn, All right, my turn. 289 00:15:18,320 --> 00:15:21,680 Speaker 1: I was going to say, what responsibility exactly does the 290 00:15:21,720 --> 00:15:24,480 Speaker 1: likes of Mark Zuckerberg and his company, which is in 291 00:15:24,560 --> 00:15:26,720 Speaker 1: the private sector, it's not a government company, it's a 292 00:15:26,760 --> 00:15:33,760 Speaker 1: private company. How much responsibility does he and the company have? Well, 293 00:15:33,800 --> 00:15:35,640 Speaker 1: do you mean from a legal standpoint or do you 294 00:15:35,680 --> 00:15:40,520 Speaker 1: mean from a societal and moral standpoint? From a societal 295 00:15:40,520 --> 00:15:42,920 Speaker 1: and moral standpoint first, because I imagine some of the 296 00:15:42,920 --> 00:15:44,920 Speaker 1: reasons we saw these actions being taken in the last 297 00:15:44,920 --> 00:15:47,240 Speaker 1: few days is actually from a legal standpoint, not from 298 00:15:47,240 --> 00:15:51,520 Speaker 1: a societal standpoint. But that's you know, opinion aside. I 299 00:15:51,520 --> 00:15:54,160 Speaker 1: don't I don't think that's true. You don't think I mean, 300 00:15:54,200 --> 00:15:57,040 Speaker 1: the key thing is, see, they have no legal liability 301 00:15:57,160 --> 00:16:02,160 Speaker 1: because of section to thirty of the nineteen Communications Now 302 00:16:02,280 --> 00:16:07,240 Speaker 1: excuse me, the the Communications Decency Act of So they 303 00:16:07,240 --> 00:16:10,800 Speaker 1: have no legal responsibility because they are they they have 304 00:16:11,160 --> 00:16:14,000 Speaker 1: they have immunity. They're just viewed as a platform and 305 00:16:14,000 --> 00:16:16,200 Speaker 1: anybody can put anything on there and the person who 306 00:16:16,200 --> 00:16:19,560 Speaker 1: puts it on has the liability. Now, you know, I 307 00:16:20,000 --> 00:16:22,520 Speaker 1: think this is a huge, huge problem because it doesn't 308 00:16:22,560 --> 00:16:25,440 Speaker 1: give these guys any incentive to take off the incendiary 309 00:16:25,560 --> 00:16:30,720 Speaker 1: kind of uh posts that, on the one hand, are 310 00:16:30,840 --> 00:16:35,080 Speaker 1: been very damaging to American to our politics, and to 311 00:16:35,240 --> 00:16:39,560 Speaker 1: our cultural norms. But on the other hand, they drive traffic, 312 00:16:39,800 --> 00:16:43,360 Speaker 1: they make money for the companies, so the companies don't 313 00:16:43,400 --> 00:16:45,720 Speaker 1: have a ton of incentive to take that stuff off. 314 00:16:46,440 --> 00:16:49,040 Speaker 1: Um and, So you know, my argument really is comes 315 00:16:49,040 --> 00:16:51,640 Speaker 1: down to this. You know, if you're a farmer company, 316 00:16:52,400 --> 00:16:54,480 Speaker 1: one of the reasons you want your drugs to work, 317 00:16:54,520 --> 00:16:56,360 Speaker 1: not the only reasons, but one of them is because 318 00:16:56,360 --> 00:16:59,840 Speaker 1: if they don't, you're gonna get sued to smithereen and 319 00:17:00,000 --> 00:17:03,440 Speaker 1: and and that helps keep companies in line. Um and 320 00:17:03,440 --> 00:17:08,080 Speaker 1: and and if Facebook and Twitter, and Apple and Amazon 321 00:17:08,320 --> 00:17:14,640 Speaker 1: all had the same um uh, the possibility of of 322 00:17:14,640 --> 00:17:18,480 Speaker 1: of of lawsuits, it would I believe change the way 323 00:17:18,560 --> 00:17:24,360 Speaker 1: they think and act about um about what they have online. Joe, 324 00:17:24,800 --> 00:17:27,560 Speaker 1: what do you think the appetite is within Washington to 325 00:17:28,560 --> 00:17:32,840 Speaker 1: eliminate Section to thirty of the Communications Act. I think 326 00:17:32,840 --> 00:17:36,520 Speaker 1: it's pretty high. Actually, um all the Republicans wanted, although 327 00:17:36,560 --> 00:17:39,199 Speaker 1: they wanted for a stupid reason. Um. They want it 328 00:17:39,240 --> 00:17:42,359 Speaker 1: because they think of it as a way to punish 329 00:17:42,400 --> 00:17:45,840 Speaker 1: the tech companies, especially Facebook and Twitter, because they claim 330 00:17:46,320 --> 00:17:50,640 Speaker 1: that you know, the conservative views don't get are censored, 331 00:17:51,280 --> 00:17:55,840 Speaker 1: which is bologny, which is just bologny. Um uh. But 332 00:17:55,840 --> 00:17:58,439 Speaker 1: but you know, there are a lot of Democrats who 333 00:17:58,440 --> 00:18:00,560 Speaker 1: have come around to this, to it too. I mean, 334 00:18:00,600 --> 00:18:04,480 Speaker 1: it's not it's not a slam dunk, but um uh. 335 00:18:04,520 --> 00:18:07,840 Speaker 1: There is a sense that something has to change and 336 00:18:07,880 --> 00:18:12,000 Speaker 1: that you can't keep pounting on Twitter and Spacebook to 337 00:18:12,000 --> 00:18:14,760 Speaker 1: to do this themselves because they just they don't have 338 00:18:14,840 --> 00:18:17,320 Speaker 1: the manpower and they don't really have the They're not 339 00:18:17,520 --> 00:18:21,600 Speaker 1: they don't have the willingness. So um so that's that's 340 00:18:21,600 --> 00:18:24,560 Speaker 1: what the issue is. Maybe. I mean, if somebody could 341 00:18:24,560 --> 00:18:27,760 Speaker 1: figure out a way to modify Section to thirty so 342 00:18:27,800 --> 00:18:33,159 Speaker 1: it creates some legal liability liability, um without getting rid 343 00:18:33,200 --> 00:18:36,480 Speaker 1: of it entirely, I think that would be a great solution. Well, 344 00:18:36,480 --> 00:18:39,400 Speaker 1: here's one for you. Don't go ahead. I mean, it's 345 00:18:39,400 --> 00:18:44,800 Speaker 1: not unlimited this immunity. It's specifically accept federal criminal liability. 346 00:18:44,880 --> 00:18:46,960 Speaker 1: So what if someone gets up there and argues that, 347 00:18:47,040 --> 00:18:49,760 Speaker 1: you know, across states people were planning to meet and 348 00:18:50,240 --> 00:18:55,919 Speaker 1: carry out violence on members of Congress last Wednesday? Is 349 00:18:55,960 --> 00:19:00,600 Speaker 1: that I mean, there's potential federal liability there they there is, 350 00:19:00,800 --> 00:19:04,320 Speaker 1: absolutely that's a very very narrow slice of the stuff. 351 00:19:04,320 --> 00:19:07,880 Speaker 1: That's on Twitter and Facebook. That's wrong. Um, for instance, 352 00:19:07,920 --> 00:19:11,240 Speaker 1: you know you can you can put anti Semitic slurs 353 00:19:11,359 --> 00:19:14,879 Speaker 1: on their kingdom. Come you can? You could until until 354 00:19:14,920 --> 00:19:16,840 Speaker 1: this year, you could be a holocaust and I are 355 00:19:16,840 --> 00:19:19,840 Speaker 1: on Facebook, so you know, and those things. There's there's 356 00:19:19,880 --> 00:19:23,560 Speaker 1: no there's no legal liability. The amount of legal liability, 357 00:19:23,840 --> 00:19:27,880 Speaker 1: you know, is very very narrow for these companies. You're right, 358 00:19:28,400 --> 00:19:31,880 Speaker 1: if a crime is being planned on Facebook and Facebook 359 00:19:31,880 --> 00:19:34,240 Speaker 1: don't do anything about it, that's the problem. But but 360 00:19:34,680 --> 00:19:39,320 Speaker 1: as a general rule, there's no legal liability. Joe, what 361 00:19:39,359 --> 00:19:42,199 Speaker 1: do you expect the response from Silicon valid to be 362 00:19:42,400 --> 00:19:47,280 Speaker 1: to some of this mounting pressure for regulating speech. Well, 363 00:19:47,640 --> 00:19:50,359 Speaker 1: I think they actually they're not going to be a 364 00:19:50,440 --> 00:19:54,320 Speaker 1: favorite eliminating to thirty, but they if you actually there's 365 00:19:54,359 --> 00:19:56,520 Speaker 1: a company called Axios, which I'm sure you've heard of, 366 00:19:56,560 --> 00:19:59,720 Speaker 1: which is an online site that's very aimed at the 367 00:19:59,760 --> 00:20:03,639 Speaker 1: water intend movers and shakers. Facebook advertises on that side 368 00:20:03,680 --> 00:20:06,840 Speaker 1: all the time, and their advertisements always say we want 369 00:20:06,880 --> 00:20:10,359 Speaker 1: to be regulated, it needs to be further regulated. What 370 00:20:10,400 --> 00:20:13,760 Speaker 1: they really want is for the federal government to take 371 00:20:13,840 --> 00:20:18,359 Speaker 1: this problem off their hands so that there are you know, 372 00:20:18,480 --> 00:20:22,359 Speaker 1: so that it becomes a government mandate that certain certain 373 00:20:22,400 --> 00:20:25,600 Speaker 1: speech has to be removed. So they don't they don't 374 00:20:25,640 --> 00:20:28,720 Speaker 1: feel like, you know, there there it's on them that 375 00:20:28,800 --> 00:20:33,399 Speaker 1: it's their decision. Um. So actually is the appetite is 376 00:20:33,480 --> 00:20:36,840 Speaker 1: higher than it's It's higher than you might think. Joe, 377 00:20:36,880 --> 00:20:39,000 Speaker 1: it's a great column. There's so much nuance in here, 378 00:20:39,080 --> 00:20:42,080 Speaker 1: and I urge everybody to rush out there and read 379 00:20:42,200 --> 00:20:45,119 Speaker 1: Jona Sarah's column today in bloom Reig Opinion. He is, 380 00:20:45,160 --> 00:20:48,280 Speaker 1: of course that the Jonah Sarah, but he's also a 381 00:20:48,320 --> 00:20:51,199 Speaker 1: bloom Big opinion columnists these days. Under today's column is 382 00:20:51,359 --> 00:20:54,639 Speaker 1: revoke social media's shield. But for the right reasons to 383 00:20:54,760 --> 00:20:57,240 Speaker 1: their Facebook and other platforms won't get serious about cleaning 384 00:20:57,320 --> 00:21:01,119 Speaker 1: up content until they face liability. It makes a great point, 385 00:21:01,200 --> 00:21:04,360 Speaker 1: Paul about how you know it's only now twelve days 386 00:21:04,400 --> 00:21:07,000 Speaker 1: before the end of the Tom presidency that you know 387 00:21:07,200 --> 00:21:09,720 Speaker 1: Twitter and Facebook are actually booting him off. You know, 388 00:21:09,760 --> 00:21:12,359 Speaker 1: it does seem the timing is not lost on a 389 00:21:12,359 --> 00:21:14,399 Speaker 1: lot of people. Yeah, yeah, it could definitely be a 390 00:21:14,440 --> 00:21:18,320 Speaker 1: little bit cynical about it. All right, it is time 391 00:21:18,320 --> 00:21:21,680 Speaker 1: to have a conversation about the climate. And you can 392 00:21:21,760 --> 00:21:24,439 Speaker 1: be absolutely sure that under John Kerry. Assuming that he 393 00:21:24,600 --> 00:21:26,560 Speaker 1: is the next climates are and that that all goes 394 00:21:26,560 --> 00:21:29,320 Speaker 1: ahead without any problems, we will have a very different 395 00:21:29,359 --> 00:21:32,480 Speaker 1: approach in this country to climate. Remy really was one 396 00:21:32,560 --> 00:21:35,760 Speaker 1: of the negotiators for the Paris Climate Agreement and he 397 00:21:35,840 --> 00:21:40,160 Speaker 1: joins us now. Remy, first of all, what's your anticipation 398 00:21:40,480 --> 00:21:43,600 Speaker 1: for when John carry takes office and how it will 399 00:21:43,640 --> 00:21:50,520 Speaker 1: manifest itself. It's a new post hivony hipole Yes from France. 400 00:21:50,880 --> 00:21:53,680 Speaker 1: Pleasure to be to be with you and to see 401 00:21:54,520 --> 00:21:59,800 Speaker 1: the momentum growing in the US behind climate. John ker 402 00:22:00,240 --> 00:22:04,400 Speaker 1: was the key actor of the Paris Agreement. I clearly 403 00:22:04,440 --> 00:22:08,480 Speaker 1: remember when I was the chief negotiater on finance back 404 00:22:08,480 --> 00:22:12,120 Speaker 1: in in twenty fifteen, and so a lot of of course, 405 00:22:12,119 --> 00:22:16,040 Speaker 1: a lot of expectations to see the US back on 406 00:22:16,240 --> 00:22:20,720 Speaker 1: board and very active domestically of course, but also on 407 00:22:20,800 --> 00:22:24,760 Speaker 1: the international stage. So, Remy, give us a sense, as 408 00:22:24,800 --> 00:22:28,280 Speaker 1: one of the negotiators and architects of the Paris Agreement, 409 00:22:28,880 --> 00:22:32,000 Speaker 1: why is it so important disagreement for climate change? And 410 00:22:32,000 --> 00:22:36,960 Speaker 1: what's really the focus right now for uh this agreement? Well, 411 00:22:36,960 --> 00:22:39,600 Speaker 1: we all know we have to do our homework in 412 00:22:39,600 --> 00:22:44,320 Speaker 1: each and every country for energy transition to change the 413 00:22:44,359 --> 00:22:50,080 Speaker 1: way we invest in housing, but that the emissions are 414 00:22:50,080 --> 00:22:53,879 Speaker 1: going everywhere and so we we need absolutely need to 415 00:22:53,920 --> 00:23:00,760 Speaker 1: common framework and way more international cooperation with the Chinese, is, Europeans, 416 00:23:00,800 --> 00:23:05,679 Speaker 1: with African countries. And that's what the Paris Agreement was about, 417 00:23:06,359 --> 00:23:11,920 Speaker 1: a common framework with a clear mechanism, with a ratchet 418 00:23:11,960 --> 00:23:16,680 Speaker 1: close never expanding ambition. And this is what we will 419 00:23:16,760 --> 00:23:23,040 Speaker 1: discuss this year in Glasgow by November, headed by the 420 00:23:23,160 --> 00:23:27,280 Speaker 1: UK Government with CUP twenty six, five years after the 421 00:23:27,320 --> 00:23:30,480 Speaker 1: Paris Agreement, we will take stock of where we stand 422 00:23:30,840 --> 00:23:33,679 Speaker 1: and hopefully increase ambition. And that's for the voice of 423 00:23:33,760 --> 00:23:37,080 Speaker 1: John Kerry, the voice of Brian D's, the voice of 424 00:23:38,080 --> 00:23:41,840 Speaker 1: Jonathan Pershing, the whole team that is back in business 425 00:23:42,160 --> 00:23:46,040 Speaker 1: will be so important. Are they speaking to corporate America, 426 00:23:46,200 --> 00:23:49,800 Speaker 1: Corporate France, corporate Germany and whatever country you know we 427 00:23:49,880 --> 00:23:52,199 Speaker 1: might be talking about, or are they actually speaking to 428 00:23:52,240 --> 00:23:57,280 Speaker 1: the governments. What can governments do? Um An interesting point 429 00:23:57,440 --> 00:24:00,320 Speaker 1: in the Paris Agreement and the way the French Monment 430 00:24:00,480 --> 00:24:04,159 Speaker 1: at that time organized the discussion is that it was 431 00:24:04,240 --> 00:24:09,439 Speaker 1: not a classic inter governmental UN discussion. We tried to 432 00:24:09,640 --> 00:24:15,600 Speaker 1: expand and you're financial Radio, so we tried to light 433 00:24:15,720 --> 00:24:19,840 Speaker 1: up each segment of the financial sectors at that time 434 00:24:20,400 --> 00:24:22,440 Speaker 1: and then we can measure what is happening. So see 435 00:24:22,480 --> 00:24:26,879 Speaker 1: what the green ball market became in five years, and 436 00:24:26,920 --> 00:24:31,000 Speaker 1: we certainly will go away farther in the coming months 437 00:24:31,520 --> 00:24:36,000 Speaker 1: and years. And so yes, the private sector, private financiers, 438 00:24:36,280 --> 00:24:40,000 Speaker 1: private corporations are key in this effort. But you need 439 00:24:40,000 --> 00:24:42,359 Speaker 1: the instruments to lenk public and private, of course, and 440 00:24:42,400 --> 00:24:46,680 Speaker 1: that's that's what public development banks are about, remy. One 441 00:24:46,720 --> 00:24:50,000 Speaker 1: of the first moves from President Trump and his administration 442 00:24:50,080 --> 00:24:53,720 Speaker 1: was to pull the U S out of the Parish agreement. 443 00:24:53,760 --> 00:25:00,600 Speaker 1: What were the practical ramifications for that? Uh move? What 444 00:25:00,720 --> 00:25:04,240 Speaker 1: good news is that it takes two years to really 445 00:25:04,280 --> 00:25:07,720 Speaker 1: come out of such an agreement. So the real so 446 00:25:07,920 --> 00:25:11,840 Speaker 1: there was still the US team in the negotiation for 447 00:25:11,840 --> 00:25:15,880 Speaker 1: for for the last few years, and since the President 448 00:25:15,960 --> 00:25:19,400 Speaker 1: elect Biden decided to come back, there will be no 449 00:25:19,400 --> 00:25:23,800 Speaker 1: no interruption in the US in the negotiation. But of 450 00:25:23,840 --> 00:25:26,760 Speaker 1: course the decision had a lot of consequence on the 451 00:25:27,240 --> 00:25:30,919 Speaker 1: on the momentum, and hopefully there was the American pledge 452 00:25:31,400 --> 00:25:37,280 Speaker 1: with the cities, with NGOs, with corporations taking the home 453 00:25:37,840 --> 00:25:40,840 Speaker 1: and and doing more and now we expect the government 454 00:25:40,880 --> 00:25:44,359 Speaker 1: to come back. So you were just offering us a 455 00:25:44,359 --> 00:25:46,879 Speaker 1: little opening there. Ramy. You are a chair of the 456 00:25:46,880 --> 00:25:50,159 Speaker 1: International Development Finance Club, and you just mentioned how you 457 00:25:50,200 --> 00:25:54,200 Speaker 1: know international banks and into governmental banks are very necessary 458 00:25:54,200 --> 00:25:56,840 Speaker 1: when it comes to things like climate agreements and so on. 459 00:25:57,040 --> 00:26:00,640 Speaker 1: How does your International Development Finance Club play a part 460 00:26:00,640 --> 00:26:04,920 Speaker 1: in all of this. Well, in the way Europe, Asia, 461 00:26:05,080 --> 00:26:10,400 Speaker 1: Latin America, Africa developed and is now fighting against climate 462 00:26:10,480 --> 00:26:15,159 Speaker 1: change and against inequalities, you have at the center of 463 00:26:15,280 --> 00:26:20,320 Speaker 1: our economic system a public financial body, public development banks. 464 00:26:20,520 --> 00:26:24,080 Speaker 1: Remember in the US during the thirties you had this 465 00:26:24,520 --> 00:26:29,320 Speaker 1: Reconstruction Finance Corporation that was the instrument the federal public 466 00:26:29,359 --> 00:26:32,720 Speaker 1: instruments at the end of President Roosevelt to come out 467 00:26:32,880 --> 00:26:37,720 Speaker 1: of the crisis. And so we decided last November to 468 00:26:37,960 --> 00:26:40,639 Speaker 1: gather them all. There are four hundred and fifty public 469 00:26:40,720 --> 00:26:44,200 Speaker 1: development banks in the world. It amounts to two point 470 00:26:44,280 --> 00:26:48,399 Speaker 1: three trillion dollar investments each year, so that's ten percent 471 00:26:48,760 --> 00:26:55,840 Speaker 1: of global total investments that are public and to work collectively. 472 00:26:55,840 --> 00:26:58,160 Speaker 1: And so we we are expecting, we are dreaming and 473 00:26:58,240 --> 00:27:04,679 Speaker 1: having again us counterpart Senator Mark here. You know so 474 00:27:05,000 --> 00:27:08,919 Speaker 1: active behind the Green New deal was present at this 475 00:27:09,280 --> 00:27:13,919 Speaker 1: Finance in Common summit, and he supported the Finance in 476 00:27:13,960 --> 00:27:17,840 Speaker 1: Common coalition and we will pursue in twenty one and 477 00:27:17,960 --> 00:27:23,119 Speaker 1: certainly a liaise with all US colleagues to do more Remy, 478 00:27:23,200 --> 00:27:27,040 Speaker 1: how has the pandemic, the global pandemic, impacted the mission 479 00:27:27,080 --> 00:27:33,800 Speaker 1: of the Paris Agreement. Uh, well, the pandemic, of course 480 00:27:34,119 --> 00:27:40,360 Speaker 1: is slowing down international cooperation and that's where it's so 481 00:27:40,520 --> 00:27:46,560 Speaker 1: important to rely on national forces. So of course, now 482 00:27:46,600 --> 00:27:50,399 Speaker 1: we have the global framework, the Paris Agreement, that is 483 00:27:51,040 --> 00:27:55,080 Speaker 1: still alive and very active and probably more vibrant than 484 00:27:55,320 --> 00:27:58,480 Speaker 1: in the previous years. But we need to have a 485 00:27:58,560 --> 00:28:01,240 Speaker 1: lives we need to afforce is, we need to have 486 00:28:01,359 --> 00:28:07,399 Speaker 1: institutions in each and every constituency. Because the DSDGS, the 487 00:28:07,480 --> 00:28:12,320 Speaker 1: Sustainable Development Goals, the Paris Agreement, it's not about international affairs. 488 00:28:12,359 --> 00:28:16,480 Speaker 1: It's really about the way we produce, the way we consume, 489 00:28:17,240 --> 00:28:20,040 Speaker 1: the way we live and what we have to change. 490 00:28:20,080 --> 00:28:21,720 Speaker 1: And you well, we know we have to do it 491 00:28:21,760 --> 00:28:23,720 Speaker 1: in France. You know you have to do it in 492 00:28:23,760 --> 00:28:27,520 Speaker 1: the US. And certainly that was part of the debate 493 00:28:27,600 --> 00:28:30,840 Speaker 1: in the discussion. And now we have to join forces 494 00:28:30,920 --> 00:28:34,400 Speaker 1: and do it together. Remy Reyou, thank you so much 495 00:28:34,480 --> 00:28:39,080 Speaker 1: for joining us. Remy Reyu Chair International Development Finance Club, 496 00:28:39,400 --> 00:28:43,080 Speaker 1: also a Paris Agreement negotiator and UM a vantage to 497 00:28:43,160 --> 00:28:45,640 Speaker 1: be very eating to see how quickly the U s 498 00:28:45,680 --> 00:28:49,840 Speaker 1: re engages in this Paris Agreement. UM when the President 499 00:28:49,960 --> 00:28:53,080 Speaker 1: elect takes office on January twoine clearly as a big 500 00:28:53,120 --> 00:28:58,440 Speaker 1: part of uh Mr Biden's campaign to re engage with 501 00:28:58,680 --> 00:29:01,560 Speaker 1: on a global scale of our partners to fight climate change. 502 00:29:02,920 --> 00:29:05,560 Speaker 1: Thanks for listening to the Bloomberg Markets podcast. You can 503 00:29:05,600 --> 00:29:09,360 Speaker 1: subscribe and listen to interviews at Apple Podcasts or whatever 504 00:29:09,360 --> 00:29:12,479 Speaker 1: a podcast platform you prefer. I'm Bonnie Quinn. I'm on 505 00:29:12,520 --> 00:29:15,080 Speaker 1: Twitter at Bonnie Quinn, and I'm Paul Sweeney. I'm on 506 00:29:15,080 --> 00:29:18,040 Speaker 1: Twitter at pt Sweeney. Before the podcast, you can always 507 00:29:18,080 --> 00:29:19,920 Speaker 1: catch us worldwide at Bloomberg Radio.