1 00:00:00,160 --> 00:00:03,360 Speaker 1: This is Bloomberg Wall Street Week. What's the state of 2 00:00:03,400 --> 00:00:06,360 Speaker 1: corporate governance? The deficit is a real issue to use. 3 00:00:06,400 --> 00:00:09,880 Speaker 1: Economy continues to send mixed signals, the financial stories that 4 00:00:10,039 --> 00:00:13,000 Speaker 1: cheap our world fed action to con concerns over dollar 5 00:00:13,039 --> 00:00:16,520 Speaker 1: liquidity and encouraging China data. The five hundred wealthiest people 6 00:00:16,520 --> 00:00:19,160 Speaker 1: in the world. Through the eyes of the most influential 7 00:00:19,239 --> 00:00:22,520 Speaker 1: voices Larry Summers, the former Treasury Secretary, star Ward CEO, 8 00:00:22,640 --> 00:00:26,360 Speaker 1: Kevin Johnson, sec Chairman J Clayton. Bloomberg wool Street Week 9 00:00:26,480 --> 00:00:30,120 Speaker 1: with David Weston from Bloomberg Radio. United States got a 10 00:00:30,160 --> 00:00:33,760 Speaker 1: new president this week in an inauguration unlike any other, 11 00:00:34,040 --> 00:00:37,600 Speaker 1: with twenty five thousand National Guard troops called in prosecurity 12 00:00:37,920 --> 00:00:41,320 Speaker 1: and hardly anyone in the audience kept away because of COVID. 13 00:00:41,800 --> 00:00:44,199 Speaker 1: But it was more than just a change in administration. 14 00:00:44,360 --> 00:00:47,680 Speaker 1: It was a change in philosophy and tone and approach. 15 00:00:48,400 --> 00:00:56,680 Speaker 1: This is Bloomberg Wall Street Week. I'm David Weston, Kennedy, London, Baines, Johnston, 16 00:00:56,760 --> 00:01:03,560 Speaker 1: blue Son, George Walker Bush to solemnly that I will 17 00:01:03,800 --> 00:01:07,399 Speaker 1: execute the office of President to the United States faithfully, 18 00:01:07,720 --> 00:01:12,640 Speaker 1: that I will execute the faithfully. The President officer President 19 00:01:12,640 --> 00:01:16,560 Speaker 1: of the United States, faithfully, so help me go. Donald 20 00:01:16,600 --> 00:01:21,480 Speaker 1: John Trump, do solemnly swear that I will faithfully execute 21 00:01:22,040 --> 00:01:26,160 Speaker 1: that I will faithfully execute the office of President of 22 00:01:26,200 --> 00:01:30,560 Speaker 1: the United States, the office of President of the United States. 23 00:01:31,120 --> 00:01:35,360 Speaker 1: That was a glimpse of inaugurations past. This inauguration was 24 00:01:35,400 --> 00:01:39,200 Speaker 1: like no other, without the hundreds of thousands of people 25 00:01:39,240 --> 00:01:43,280 Speaker 1: on the mall because of COVID nineteen, but with thousand 26 00:01:43,400 --> 00:01:46,760 Speaker 1: National guardsmen occupying the capital to prevent a repeat of 27 00:01:46,760 --> 00:01:49,640 Speaker 1: the riots from two weeks before. It did share with 28 00:01:49,720 --> 00:01:53,920 Speaker 1: earlier inaugurations the attention of the entire world. And Richard has, 29 00:01:54,120 --> 00:01:57,000 Speaker 1: President of the Council and Form Relations, thinks President Biden 30 00:01:57,320 --> 00:02:00,240 Speaker 1: used it to start to rebuild alliance as it had 31 00:02:00,280 --> 00:02:04,680 Speaker 1: suffered under his predecessor. At the back of every allies 32 00:02:04,760 --> 00:02:08,840 Speaker 1: head is the concern over whether this divided country can 33 00:02:08,880 --> 00:02:11,840 Speaker 1: be there for them, and also what comes in four years. 34 00:02:12,160 --> 00:02:14,799 Speaker 1: And to put it bluntly, how are they to understand 35 00:02:14,840 --> 00:02:17,320 Speaker 1: where America is in the ark of its history, where 36 00:02:17,320 --> 00:02:20,239 Speaker 1: the last four years the aberration and this is now 37 00:02:20,280 --> 00:02:23,200 Speaker 1: the restoration of the normal, or will it turn out 38 00:02:23,240 --> 00:02:25,960 Speaker 1: that the last four years were a harbinger? Will have 39 00:02:26,040 --> 00:02:28,480 Speaker 1: four years of Joe Biden, but then we go then 40 00:02:28,520 --> 00:02:30,919 Speaker 1: we're going to return to some version of Trump is 41 00:02:30,960 --> 00:02:34,400 Speaker 1: um with without demand. And that's the question mark that 42 00:02:34,520 --> 00:02:37,720 Speaker 1: Mr Trump planted around the world, which I wonder if 43 00:02:37,720 --> 00:02:40,560 Speaker 1: there's one place in which we shouldn't really expect too 44 00:02:40,639 --> 00:02:42,960 Speaker 1: much of a deviation, because we did here in the 45 00:02:43,000 --> 00:02:48,000 Speaker 1: confirmation testament from Tony Blincoln, and he seemed to indicate 46 00:02:48,080 --> 00:02:50,560 Speaker 1: maybe they would be just as tough on China as 47 00:02:50,639 --> 00:02:52,680 Speaker 1: President Trump had been. And by the way, Janet Yellen, 48 00:02:52,720 --> 00:02:55,280 Speaker 1: the nominee for Treasury, also had some harsh things to 49 00:02:55,280 --> 00:02:59,160 Speaker 1: say about China. Oh, I think there'll be more consistency 50 00:02:59,240 --> 00:03:02,440 Speaker 1: than than French there. David, You're exactly right. I think 51 00:03:02,480 --> 00:03:05,560 Speaker 1: it reflects a shift in American thinking about China. It's 52 00:03:05,560 --> 00:03:09,920 Speaker 1: a bipartisanship, much more critical, much more skeptical. But this 53 00:03:10,000 --> 00:03:12,480 Speaker 1: is a very different China. This is sij and things China. 54 00:03:12,800 --> 00:03:16,760 Speaker 1: It's more repressive at home economically, it's not evolved in 55 00:03:16,800 --> 00:03:20,720 Speaker 1: ways that people expected or hoped for. That's stronger militarily, 56 00:03:20,800 --> 00:03:24,760 Speaker 1: it's much more assertive diplomatically. So I think you're going 57 00:03:24,840 --> 00:03:27,400 Speaker 1: to get You're going to get a much more pushback 58 00:03:27,480 --> 00:03:30,920 Speaker 1: from the United States. Richard, this is Rick Davis and Washington, 59 00:03:31,080 --> 00:03:32,560 Speaker 1: and I wanted to get back to sort of the 60 00:03:32,560 --> 00:03:35,880 Speaker 1: global point of view, because you're right. I mean, I've 61 00:03:35,920 --> 00:03:37,680 Speaker 1: spent a lot of time traveling around the world and 62 00:03:37,680 --> 00:03:39,880 Speaker 1: where there's a lot of questions, but heads of state 63 00:03:40,040 --> 00:03:43,080 Speaker 1: over uh sort of what is the arc of the US? 64 00:03:43,200 --> 00:03:47,000 Speaker 1: And and obviously I think Biden leaned into that. President 65 00:03:47,040 --> 00:03:51,120 Speaker 1: Biden leaned into that by talking about re engagement and 66 00:03:51,120 --> 00:03:53,480 Speaker 1: and and by the power of our example I think 67 00:03:53,560 --> 00:03:56,480 Speaker 1: was his quote. And and what would those examples be 68 00:03:56,520 --> 00:03:58,360 Speaker 1: in the near term? I mean, what would you like 69 00:03:58,480 --> 00:04:02,360 Speaker 1: to see this administration do, either through his cabinet, members 70 00:04:02,360 --> 00:04:05,000 Speaker 1: of the president or the vice president, to actually try 71 00:04:05,080 --> 00:04:07,440 Speaker 1: to get back in the game and re establish that 72 00:04:07,520 --> 00:04:09,680 Speaker 1: kind of global trust. Well, the biggest thing would be 73 00:04:09,720 --> 00:04:13,320 Speaker 1: competence and progress versus COVID nineteen might be the single 74 00:04:13,360 --> 00:04:18,039 Speaker 1: most important national security statement the United States could make. 75 00:04:18,560 --> 00:04:22,480 Speaker 1: I think rebooting to some extent the American economy, American 76 00:04:22,520 --> 00:04:26,680 Speaker 1: economic growth would be welcome. The demonstration that our politics, 77 00:04:26,680 --> 00:04:30,000 Speaker 1: our institutions can hold you will have the United States 78 00:04:30,040 --> 00:04:34,360 Speaker 1: re enter various international arrangements. We left the Paris Climate 79 00:04:35,080 --> 00:04:38,440 Speaker 1: Accords the World Health Organization, and there will be a 80 00:04:38,480 --> 00:04:42,960 Speaker 1: big emphasis on simply talking to allies, to consultations, and 81 00:04:43,000 --> 00:04:46,160 Speaker 1: that suggests multilateralism, which which basically puts an end to 82 00:04:46,200 --> 00:04:49,400 Speaker 1: two things. It puts an end to America acting on 83 00:04:49,440 --> 00:04:52,039 Speaker 1: its own in the world, which was something that Mr 84 00:04:52,080 --> 00:04:54,640 Speaker 1: Trump stood for. And it also puts an end to 85 00:04:54,760 --> 00:04:59,680 Speaker 1: the bias towards isolationism. So this will be an administration 86 00:04:59,760 --> 00:05:03,280 Speaker 1: that lean into diplomacy and foreign policy, and it will 87 00:05:03,360 --> 00:05:05,919 Speaker 1: lean into a collective approach, and I think for the 88 00:05:05,960 --> 00:05:09,159 Speaker 1: most part that will be welcome. So Richard Dubar Hacket 89 00:05:09,160 --> 00:05:11,599 Speaker 1: expression from an old car commercial, as I recall, this 90 00:05:11,640 --> 00:05:15,719 Speaker 1: ain't your father's world anymore. I mean, what gave rise 91 00:05:15,880 --> 00:05:20,320 Speaker 1: to the post World War two structures doesn't obtain anymore. 92 00:05:20,560 --> 00:05:22,359 Speaker 1: So it's not just a matter of going backward, right, 93 00:05:22,360 --> 00:05:24,360 Speaker 1: it has to go forward. Is there a vision? Does 94 00:05:24,400 --> 00:05:26,760 Speaker 1: the Biden camp have a vision of how we can 95 00:05:26,760 --> 00:05:30,520 Speaker 1: rebuild better? That's a great question, David. The answer is 96 00:05:30,560 --> 00:05:33,359 Speaker 1: not yet. So I think the initial thrust of the 97 00:05:33,400 --> 00:05:36,640 Speaker 1: administration would be what I would describe as repair things 98 00:05:36,640 --> 00:05:39,400 Speaker 1: we've just been talking about, to stabilize the home front, 99 00:05:39,880 --> 00:05:42,240 Speaker 1: to get the United States back on the playing field 100 00:05:42,240 --> 00:05:47,840 Speaker 1: of international organizations and diplomacy to revive alliances. And then 101 00:05:47,880 --> 00:05:50,800 Speaker 1: you've got the heavy lifting. What will the United States 102 00:05:50,800 --> 00:05:53,440 Speaker 1: do visa v Russia and China to manage those great 103 00:05:53,440 --> 00:05:57,440 Speaker 1: power rivals? What will we actually do on climate? Can 104 00:05:57,520 --> 00:06:01,880 Speaker 1: we structure the digital space, which is clearly essentially the 105 00:06:02,360 --> 00:06:04,880 Speaker 1: wild West? What can we do so the world is 106 00:06:04,920 --> 00:06:07,760 Speaker 1: better prepared for the next pandemic and is better able 107 00:06:07,800 --> 00:06:10,080 Speaker 1: to deal with the existing one. So I think that's 108 00:06:10,240 --> 00:06:12,120 Speaker 1: you know, there's a little bit of time there. That's 109 00:06:12,120 --> 00:06:14,480 Speaker 1: why you gotta get everybody up to speed in their jobs, 110 00:06:14,480 --> 00:06:17,159 Speaker 1: got to get the inter agency system working. But I 111 00:06:17,200 --> 00:06:20,920 Speaker 1: think the the idea of innovation, of moving forward, We're 112 00:06:20,960 --> 00:06:23,159 Speaker 1: not going to know that for a few months, but 113 00:06:23,240 --> 00:06:27,400 Speaker 1: that'll be the ultimate test of this administration's foreign policy. 114 00:06:27,560 --> 00:06:30,320 Speaker 1: That was Richard Hayes, president of the Council on Foreign 115 00:06:30,360 --> 00:06:33,679 Speaker 1: Relations and author of the best selling book The World 116 00:06:34,080 --> 00:06:37,600 Speaker 1: of Brief History. Coming up. What the Biden administration means 117 00:06:37,680 --> 00:06:40,800 Speaker 1: for the economy and for business. That's next on Wall 118 00:06:40,839 --> 00:06:55,320 Speaker 1: Street Week on Bloomberg. This is Bloomberg Wall Street Week 119 00:06:55,520 --> 00:06:59,640 Speaker 1: with David Weston from Bloomberg Radio. President Biden's pick for 120 00:06:59,760 --> 00:07:02,680 Speaker 1: Trayasury Secretary, Janet Yellen was one of the first of 121 00:07:02,720 --> 00:07:05,640 Speaker 1: his cabinet nominees to have a confirmation hearing. In her 122 00:07:05,760 --> 00:07:09,279 Speaker 1: three hour testimony to the Senate Finance Committee, the former 123 00:07:09,279 --> 00:07:12,840 Speaker 1: FED Chair pressed President Biden's one point nine trillion dollar 124 00:07:12,920 --> 00:07:16,960 Speaker 1: fiscal stimulus package as essential to fight the economic harm 125 00:07:17,120 --> 00:07:20,880 Speaker 1: being done by the coronavirus. Neither the President, Alex nor 126 00:07:20,960 --> 00:07:26,240 Speaker 1: I proposed this release relief package without an appreciation for 127 00:07:26,280 --> 00:07:30,480 Speaker 1: the country's different and economists don't always agree, but I 128 00:07:30,520 --> 00:07:35,440 Speaker 1: think there is a consensus now. Without further action, we 129 00:07:35,560 --> 00:07:40,000 Speaker 1: risk a longer and more painful recession now and longer 130 00:07:40,120 --> 00:07:44,200 Speaker 1: term scarring of the economy later. Members of the Committee, 131 00:07:44,400 --> 00:07:47,920 Speaker 1: these are very ambitious goals, and I know we will 132 00:07:47,960 --> 00:07:51,280 Speaker 1: need to work together. Yell and support for the President's 133 00:07:51,280 --> 00:07:55,280 Speaker 1: stimulus plan met some resistance from Republican lawmakers, who expressed 134 00:07:55,280 --> 00:07:57,880 Speaker 1: concern that the level of spending on top of what 135 00:07:57,960 --> 00:08:01,600 Speaker 1: has come already could hurt rather than help. Here's South 136 00:08:01,640 --> 00:08:05,080 Speaker 1: Carolina Senator Tim Scott. But the one point nine trade 137 00:08:05,120 --> 00:08:08,160 Speaker 1: dollar package that has been presented to us is a 138 00:08:08,240 --> 00:08:13,120 Speaker 1: package that focuses on some priorities that I think will 139 00:08:13,360 --> 00:08:16,320 Speaker 1: actually hurt our economy as much as it would improve 140 00:08:16,360 --> 00:08:20,160 Speaker 1: our economy. Yelling also showed some potential continuity with some 141 00:08:20,240 --> 00:08:24,240 Speaker 1: Trump administration policies, particularly in her tough stance on China, 142 00:08:24,600 --> 00:08:28,400 Speaker 1: which she called the United states most important strategic competitor. 143 00:08:28,760 --> 00:08:34,920 Speaker 1: We need to take on China's abusive, unfair, and illegal practices. 144 00:08:35,640 --> 00:08:42,120 Speaker 1: China's undercutting American companies by dumping products, erecting trade barriers, 145 00:08:42,440 --> 00:08:47,200 Speaker 1: and giving illegal subsidies to corporations. But the Treasury Secretary 146 00:08:47,280 --> 00:08:50,800 Speaker 1: nominee did not condone Trump administration suggestions that the country 147 00:08:50,880 --> 00:08:54,040 Speaker 1: might benefit from a weaker dollar, saying that should be 148 00:08:54,120 --> 00:08:57,840 Speaker 1: left strictly to the markets. I believe in market determined 149 00:08:57,920 --> 00:09:01,560 Speaker 1: exchange rates. The value of the US dollar and other 150 00:09:01,720 --> 00:09:06,040 Speaker 1: currencies should be determined by markets. It's been only a 151 00:09:06,120 --> 00:09:09,200 Speaker 1: dozen years since Congress had to bail out the economy 152 00:09:09,200 --> 00:09:12,000 Speaker 1: from the Great Financial Crisis, and Sheila Bear was a 153 00:09:12,120 --> 00:09:14,640 Speaker 1: key official in that rescue effort as head of the 154 00:09:14,679 --> 00:09:18,280 Speaker 1: Federal Deposit Insurance Corporation. She says there will come a 155 00:09:18,360 --> 00:09:22,080 Speaker 1: time to be frugal, but it is not now. Well. 156 00:09:22,120 --> 00:09:24,000 Speaker 1: I didn't think she's right. You need to go big 157 00:09:24,080 --> 00:09:27,160 Speaker 1: right now. The country, the economy is still in serious trouble, 158 00:09:27,320 --> 00:09:29,680 Speaker 1: and once again the people are beetting hit the hardest 159 00:09:29,880 --> 00:09:34,320 Speaker 1: or low low income, low middle income families and the 160 00:09:34,360 --> 00:09:38,760 Speaker 1: lion's share of the the assistance. You've got supplemental unemployment, 161 00:09:38,800 --> 00:09:43,040 Speaker 1: you've got direct household payments. I think that's money well 162 00:09:43,040 --> 00:09:45,559 Speaker 1: targeted and needs to be spent. Families need help, They're 163 00:09:45,600 --> 00:09:49,720 Speaker 1: still struggling, and so I agree with her. So targeting, 164 00:09:49,720 --> 00:09:51,880 Speaker 1: we talked about targeting A lives of Republicans talk about it. 165 00:09:52,040 --> 00:09:54,160 Speaker 1: We never seem to quite get there. I mean, it's 166 00:09:54,160 --> 00:09:56,400 Speaker 1: a practical matter. Even the PPE and things like that, 167 00:09:56,520 --> 00:09:58,040 Speaker 1: it appears that it's going to the top and at 168 00:09:58,080 --> 00:09:59,800 Speaker 1: the bottom. What can we do better to make sure 169 00:09:59,800 --> 00:10:02,200 Speaker 1: it let's get to the people who needed well. I 170 00:10:02,200 --> 00:10:05,320 Speaker 1: think the shift of fiscal away from monetary policy is 171 00:10:05,520 --> 00:10:08,560 Speaker 1: hugely important, notably as one point nine trillion does not 172 00:10:08,640 --> 00:10:11,559 Speaker 1: include additional money to you know, backstop the Fed of 173 00:10:11,679 --> 00:10:14,280 Speaker 1: its interventions. The Fed just not equipped to get money 174 00:10:14,320 --> 00:10:17,560 Speaker 1: to main street. They put money into financial markets. You know, 175 00:10:17,640 --> 00:10:19,640 Speaker 1: wall streets were doing really really well since the Great 176 00:10:19,640 --> 00:10:22,880 Speaker 1: Financial Crisis. Not so much for that lower eighty percent. 177 00:10:23,040 --> 00:10:25,439 Speaker 1: Really that the people who work for a living and 178 00:10:25,520 --> 00:10:29,840 Speaker 1: results rely on labor income, non investment income to live. 179 00:10:30,360 --> 00:10:33,080 Speaker 1: So just the shifting back to fiscal that's a much 180 00:10:33,120 --> 00:10:35,880 Speaker 1: better approach to get money actually in the hands of families. 181 00:10:36,160 --> 00:10:38,520 Speaker 1: And you know, direct payments is a very efficient way 182 00:10:38,600 --> 00:10:40,560 Speaker 1: to get money out quickly, which is really what we 183 00:10:40,640 --> 00:10:43,120 Speaker 1: need to do. You know, I need a lot of bureaucracy, 184 00:10:43,240 --> 00:10:45,600 Speaker 1: there's no you know, there's all this debate about whether 185 00:10:45,640 --> 00:10:47,720 Speaker 1: people earn it or not, or deserve it. You know, 186 00:10:47,840 --> 00:10:49,760 Speaker 1: I kind of look at all the trades that have 187 00:10:49,800 --> 00:10:51,880 Speaker 1: gone to Wall Street and I kind of have disdained 188 00:10:51,920 --> 00:10:54,760 Speaker 1: for that. The lower eighty percent of the population, which 189 00:10:54,800 --> 00:10:57,160 Speaker 1: is well, you know, which is where these payments will reach, 190 00:10:57,679 --> 00:10:59,600 Speaker 1: they've not done so well all right. It took them 191 00:10:59,600 --> 00:11:01,920 Speaker 1: ten years to recover. They were finally just catching up, 192 00:11:01,960 --> 00:11:03,920 Speaker 1: and we have this hit. So I think there's some 193 00:11:04,640 --> 00:11:07,720 Speaker 1: inequities of the past being addressed with these payments as well. 194 00:11:07,760 --> 00:11:09,439 Speaker 1: But at least we know where the money is going. 195 00:11:09,480 --> 00:11:12,600 Speaker 1: It's going to households. They can spend it on consumption, 196 00:11:12,760 --> 00:11:14,800 Speaker 1: they can pay rent, they can pay their bills, they 197 00:11:14,800 --> 00:11:18,199 Speaker 1: can save some of it, they can budgers their emergency savings. Again, 198 00:11:18,240 --> 00:11:20,600 Speaker 1: I think that's money, well spent. So one of the 199 00:11:20,600 --> 00:11:23,080 Speaker 1: things that this pandemic is really exposed is some of 200 00:11:23,120 --> 00:11:27,080 Speaker 1: the racial and economic injustice across the country. The black 201 00:11:27,120 --> 00:11:30,040 Speaker 1: communities and the Hispanic communities and for that matter, the 202 00:11:30,080 --> 00:11:33,000 Speaker 1: Native American communities have really been particularly hard hit. Is 203 00:11:33,040 --> 00:11:36,240 Speaker 1: there anything that either the FED or the Congress can 204 00:11:36,280 --> 00:11:39,439 Speaker 1: do to really readjust that, to really target the assistance 205 00:11:39,760 --> 00:11:41,520 Speaker 1: for the people that really needed that, is to say, 206 00:11:41,559 --> 00:11:45,680 Speaker 1: the minority communities. Yeah. So there's a lot of structural 207 00:11:45,720 --> 00:11:49,040 Speaker 1: bias in our system. We need to, you know, fundamentally 208 00:11:49,080 --> 00:11:53,000 Speaker 1: rethink policy. So the way for instance, banking my my 209 00:11:53,559 --> 00:11:56,280 Speaker 1: neck of the woods, the way we think about risk 210 00:11:56,440 --> 00:11:59,720 Speaker 1: and risk weate uh, you know, bank capital requirements, there's 211 00:11:59,720 --> 00:12:03,200 Speaker 1: a lot out of racial bias built into the assumptions 212 00:12:03,240 --> 00:12:06,240 Speaker 1: that we use. So I think that's another area where 213 00:12:06,280 --> 00:12:08,120 Speaker 1: I hope Janet Ellen will take a fresh look. I 214 00:12:08,160 --> 00:12:10,719 Speaker 1: hope to Fend and another bank regulators will take a 215 00:12:10,760 --> 00:12:14,920 Speaker 1: fresh look how we think about credit. I think there's 216 00:12:14,960 --> 00:12:17,360 Speaker 1: there's a lot of systemic bias. And there's one example 217 00:12:17,400 --> 00:12:20,520 Speaker 1: of where policies generally can have um, you know, things 218 00:12:20,559 --> 00:12:22,160 Speaker 1: that were not even where I should be aware of 219 00:12:22,200 --> 00:12:25,480 Speaker 1: but have not been, so that in addition to them 220 00:12:25,520 --> 00:12:30,160 Speaker 1: just focusing on low income families where unfortunately minorities are 221 00:12:30,200 --> 00:12:33,560 Speaker 1: disproportionately represented. I fear we're gonna have it. You know, 222 00:12:33,679 --> 00:12:36,160 Speaker 1: we're going to be worsening our structural and employment problem. 223 00:12:36,320 --> 00:12:40,400 Speaker 1: You know, labor force participation is going again, job retraining, 224 00:12:40,520 --> 00:12:45,000 Speaker 1: job growth, wage growth, job retraining. I'm I'm for you know, 225 00:12:45,120 --> 00:12:47,640 Speaker 1: some kind of universal basic income to to provide some 226 00:12:47,679 --> 00:12:51,760 Speaker 1: type of you know, based support for working families when 227 00:12:51,800 --> 00:12:54,319 Speaker 1: we get through cycles like this that got something automatically 228 00:12:54,360 --> 00:12:57,240 Speaker 1: to fault back on. There are a whole host of things. 229 00:12:57,360 --> 00:13:00,160 Speaker 1: You know, let's face it, working families have been work 230 00:13:00,200 --> 00:13:02,480 Speaker 1: by both parties for way too long. And so I'm 231 00:13:02,520 --> 00:13:04,960 Speaker 1: hoping that that Mr Biden and Janet Yelling and others 232 00:13:05,040 --> 00:13:07,360 Speaker 1: of his team are really going to be refocused on this, 233 00:13:07,400 --> 00:13:09,080 Speaker 1: and I think they are. So. One of the things 234 00:13:09,080 --> 00:13:11,240 Speaker 1: that you focused on during the Great Financial Crisis were 235 00:13:11,400 --> 00:13:14,520 Speaker 1: really the safety and security of our financial system. As 236 00:13:14,559 --> 00:13:17,560 Speaker 1: we go through this crisis and you look from the outside, now, 237 00:13:18,000 --> 00:13:22,760 Speaker 1: do you see places that you're concerned about the financial system? 238 00:13:22,800 --> 00:13:25,880 Speaker 1: I do. I think the the unbanked sector, excuse meb 239 00:13:26,120 --> 00:13:29,719 Speaker 1: the non bank sector is a continuing source of turmoil. 240 00:13:29,760 --> 00:13:33,440 Speaker 1: In last March, we had market disruptions, same suspects, right, 241 00:13:33,520 --> 00:13:37,079 Speaker 1: money market funds, highly leveraged chedge funds, leveraged corporate et 242 00:13:37,320 --> 00:13:39,400 Speaker 1: f s. The FAT again had to come in and 243 00:13:39,400 --> 00:13:42,800 Speaker 1: provide a lot of quidity, a lot of bailouts. Whether 244 00:13:42,840 --> 00:13:44,560 Speaker 1: that was right or not, I don't know. I just 245 00:13:44,679 --> 00:13:47,480 Speaker 1: I do know that when we resort to bailouts as 246 00:13:47,520 --> 00:13:52,440 Speaker 1: opposed to using regulation to prevent these unstable structures to 247 00:13:52,520 --> 00:13:56,320 Speaker 1: begin with, we just reinforced risky bad behavior. So we 248 00:13:56,360 --> 00:13:58,959 Speaker 1: need a fisher cut bait. Stop the bailouts, let them 249 00:13:58,960 --> 00:14:01,719 Speaker 1: go down, let the market funish them, new away with them, 250 00:14:01,840 --> 00:14:05,440 Speaker 1: or start providing some meaningful potential supervision to present to 251 00:14:05,559 --> 00:14:10,640 Speaker 1: prevent these unstable structures from proliferating. Maybe some combination of both. 252 00:14:10,720 --> 00:14:12,760 Speaker 1: But the end bank sector, excuse me, think of the 253 00:14:12,840 --> 00:14:15,880 Speaker 1: m bank non bank sector is definitely an area of 254 00:14:15,920 --> 00:14:19,360 Speaker 1: continued financial fragility. And I think again, Janet Yellen is 255 00:14:19,400 --> 00:14:23,760 Speaker 1: chair of the Financial Stability Oversight Council, which has the authority, 256 00:14:24,000 --> 00:14:27,040 Speaker 1: the cross cutting regulatory authority to deal with this. This 257 00:14:27,160 --> 00:14:29,160 Speaker 1: I hope will be a high priority for her as well. 258 00:14:29,400 --> 00:14:33,080 Speaker 1: That was Sheila Bear, former fdi C chair coming up 259 00:14:33,160 --> 00:14:35,960 Speaker 1: to the President, Biden wants to increase the federal minimum 260 00:14:36,000 --> 00:14:38,680 Speaker 1: wage to fifteen dollars an hour. But what would that 261 00:14:38,800 --> 00:14:41,040 Speaker 1: do for the economy and what's it got to do 262 00:14:41,160 --> 00:14:44,480 Speaker 1: with the pandemic? We asked contributors Larry Summers of Harvard 263 00:14:44,560 --> 00:14:48,120 Speaker 1: and Glenn Hubbard of Columbia. That's next on Wall Street 264 00:14:48,160 --> 00:14:57,640 Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with 265 00:14:57,800 --> 00:15:02,160 Speaker 1: David Weston from Bloomberg Brady. President Biden wants to raise 266 00:15:02,200 --> 00:15:05,520 Speaker 1: the federal minimum wage to fifteen dollars an hour, a 267 00:15:05,560 --> 00:15:09,080 Speaker 1: measure he included in his day one priority of passing 268 00:15:09,120 --> 00:15:11,720 Speaker 1: a stimulus bill to support the economy. People on both 269 00:15:11,760 --> 00:15:15,200 Speaker 1: parties now recognized it's time to raise the minimum wage 270 00:15:15,480 --> 00:15:18,800 Speaker 1: so hard working people are in at least fifteen dollars 271 00:15:18,800 --> 00:15:21,760 Speaker 1: an hour minimum. A move to fifteen dollars an hour 272 00:15:21,920 --> 00:15:25,080 Speaker 1: would be more than double the current minimum wage of 273 00:15:25,120 --> 00:15:28,680 Speaker 1: seven dollars five cents, which hasn't been changed since two 274 00:15:28,760 --> 00:15:32,000 Speaker 1: thousand nine. If passed, it would provide a pay hike 275 00:15:32,080 --> 00:15:36,440 Speaker 1: to nearly four hundred thousand Americans who are earning minimum wage. 276 00:15:36,920 --> 00:15:40,760 Speaker 1: Here's ever COREPS co chairman and co CEO Ralph Schlastein. 277 00:15:41,040 --> 00:15:46,480 Speaker 1: I mean a fifteen minimum wage basically gets you to 278 00:15:46,680 --> 00:15:50,560 Speaker 1: the poverty line for a family of four. Until now, 279 00:15:50,640 --> 00:15:53,760 Speaker 1: it's been the states leading the charge in raising minimum wages, 280 00:15:54,040 --> 00:15:57,320 Speaker 1: with twenty nine states and the District of Columbia already 281 00:15:57,440 --> 00:16:02,080 Speaker 1: taking action. Here's former Massachusetts Daval Patrick. All of the 282 00:16:02,160 --> 00:16:07,720 Speaker 1: evidence historically is that the economy grows after the minimum 283 00:16:07,720 --> 00:16:11,640 Speaker 1: wage has been raised. It is not the burden that 284 00:16:11,760 --> 00:16:14,360 Speaker 1: it is, and that it has been sort of told. 285 00:16:14,680 --> 00:16:17,920 Speaker 1: Critics say that raising the minimum wage could come at 286 00:16:17,960 --> 00:16:22,080 Speaker 1: the cost of millions of jobs. Like South Carolina Senator 287 00:16:22,120 --> 00:16:25,680 Speaker 1: Tim Scott. The one thing that even the Congressional Budget 288 00:16:25,720 --> 00:16:29,480 Speaker 1: Office recognizes is that by increasing the minimum wage to 289 00:16:30,320 --> 00:16:33,840 Speaker 1: fifteen an hour, it could shut her somewhere around three 290 00:16:33,880 --> 00:16:37,080 Speaker 1: point seven million jobs on the high end, a minimum 291 00:16:37,080 --> 00:16:39,800 Speaker 1: of one point three million jobs in our economy. One 292 00:16:39,840 --> 00:16:43,000 Speaker 1: of those critics is Walmart CEO Doug McMillan. At a 293 00:16:43,040 --> 00:16:46,480 Speaker 1: business roundtable event this week, the CEO agreed that seven 294 00:16:46,480 --> 00:16:49,560 Speaker 1: dollars cents an hour is too low, but called for 295 00:16:49,600 --> 00:16:53,720 Speaker 1: a higher wage that takes into account geographic differences and 296 00:16:53,960 --> 00:16:59,040 Speaker 1: small businesses. Ralph Schlastin again well I think that the 297 00:16:59,080 --> 00:17:04,600 Speaker 1: CEO of Walmart is UH making a sensible statement that 298 00:17:04,720 --> 00:17:10,080 Speaker 1: one size fits all. UH isn't UH perfect. Some CEOs, 299 00:17:10,200 --> 00:17:13,320 Speaker 1: like some states are not waiting for the federal government 300 00:17:13,359 --> 00:17:16,280 Speaker 1: to raise wages for workers. No matter what happens on 301 00:17:16,320 --> 00:17:18,640 Speaker 1: the government level and federal level or the state level. 302 00:17:18,920 --> 00:17:21,480 Speaker 1: We have companies and I see the signs and I 303 00:17:21,520 --> 00:17:24,959 Speaker 1: see companies are coming forward. UM, we have to do 304 00:17:25,000 --> 00:17:28,959 Speaker 1: what's the right, which is bringing the minimum which at 305 00:17:29,080 --> 00:17:33,520 Speaker 1: least fifteen dollars to stop. That was Chobani CEO Hamdi Ulukaya. 306 00:17:33,960 --> 00:17:37,159 Speaker 1: Regional differences in the cost of living and the timing 307 00:17:37,200 --> 00:17:40,600 Speaker 1: of a potential hike in the minimum wage raises concerns 308 00:17:40,680 --> 00:17:44,199 Speaker 1: with some economists. Here's Doug holtz Ecan, the president of 309 00:17:44,240 --> 00:17:47,280 Speaker 1: American Action Forum. I don't think it belongs in here. 310 00:17:47,560 --> 00:17:50,280 Speaker 1: It's it's not stimulus, it's not relief. It gets in 311 00:17:50,320 --> 00:17:53,520 Speaker 1: the way of recovery and the labor market. UH, and 312 00:17:53,560 --> 00:17:57,160 Speaker 1: so I expect that to drop out. Our roundtable reaction 313 00:17:57,280 --> 00:17:59,639 Speaker 1: to arise in the norum wage were welcome now. Walter 314 00:17:59,840 --> 00:18:03,120 Speaker 1: we contributors Larry Summers, who served as Treasury Secretary under 315 00:18:03,119 --> 00:18:05,760 Speaker 1: President Clinton and then as Director of the National Economic 316 00:18:05,760 --> 00:18:09,239 Speaker 1: Council under President Obama and Glenn Hubbard, who chaired the 317 00:18:09,240 --> 00:18:12,440 Speaker 1: Council of Economic Advisors under President George W. Bush. Welcome 318 00:18:12,480 --> 00:18:14,240 Speaker 1: to both of you. Larry miss Let's start with you. 319 00:18:14,280 --> 00:18:17,480 Speaker 1: What would be the effects on the economy overall of 320 00:18:17,600 --> 00:18:20,679 Speaker 1: arise to fifteen dollars an hour from the minimum wage? 321 00:18:20,720 --> 00:18:23,119 Speaker 1: I read from the CBO from the Congressional Wedro office 322 00:18:23,160 --> 00:18:25,280 Speaker 1: that on the one hand, you'd lose one point three 323 00:18:25,280 --> 00:18:27,040 Speaker 1: million jobs. On the other hand, you take a lot 324 00:18:27,040 --> 00:18:29,280 Speaker 1: of people out of poverty. I think you would take 325 00:18:29,280 --> 00:18:31,800 Speaker 1: a lot of people out of poverty. I think I'm balanced. 326 00:18:31,880 --> 00:18:38,480 Speaker 1: It's probably positive. I worry less about job destruction, and 327 00:18:38,640 --> 00:18:42,520 Speaker 1: I worry that employers will stop paying benefits when they 328 00:18:42,560 --> 00:18:46,480 Speaker 1: have to pay higher wages. I worried that employers will 329 00:18:46,560 --> 00:18:52,440 Speaker 1: shift away from the most vulnerable and inexperienced workers towards 330 00:18:52,880 --> 00:18:57,960 Speaker 1: uh workers with more experience and more education. And so 331 00:18:58,080 --> 00:19:01,960 Speaker 1: I think I'd probably prefer to see a more gradual 332 00:19:02,000 --> 00:19:06,600 Speaker 1: approach and a more differentiated approach to a major minimum 333 00:19:06,640 --> 00:19:09,760 Speaker 1: wage increase. But if we're gonna have a major if 334 00:19:09,760 --> 00:19:12,080 Speaker 1: we're gonna have a minimum the question is whether to 335 00:19:12,560 --> 00:19:16,000 Speaker 1: do this or to do nothing. I would unbalance favor 336 00:19:16,080 --> 00:19:18,280 Speaker 1: doing this. So Glenn, is there a third alternative to 337 00:19:18,320 --> 00:19:20,880 Speaker 1: address perhaps some of what Larry is concerned about. I've 338 00:19:20,920 --> 00:19:23,240 Speaker 1: heard it suggested that the problem with the minimum wages 339 00:19:23,480 --> 00:19:26,360 Speaker 1: essentially acts as attacks on the employer. A better way 340 00:19:26,440 --> 00:19:28,359 Speaker 1: would be to get money into the hands of people 341 00:19:28,400 --> 00:19:31,800 Speaker 1: who needed through increasing the earned income tax credit, because 342 00:19:31,800 --> 00:19:33,720 Speaker 1: that's attacks on all of us that shared equally. It 343 00:19:33,760 --> 00:19:37,680 Speaker 1: doesn't penalize you for employing people. Well, I think that's right. 344 00:19:37,520 --> 00:19:39,880 Speaker 1: I think President Biden got it right when he said 345 00:19:39,920 --> 00:19:42,920 Speaker 1: people who worked forty hours a week should not be poor. 346 00:19:43,080 --> 00:19:46,120 Speaker 1: That's a moral statement, it's an economic statement, but it's 347 00:19:46,119 --> 00:19:48,280 Speaker 1: not a comment on the minimum wage per se. I 348 00:19:48,280 --> 00:19:50,680 Speaker 1: would think that the e I T C and increased, 349 00:19:50,720 --> 00:19:55,000 Speaker 1: particularly for childless workers who have not received much work 350 00:19:55,040 --> 00:19:57,840 Speaker 1: support from the I T C. And President Biden has 351 00:19:57,840 --> 00:20:02,440 Speaker 1: talked about that, and also big government support for training 352 00:20:02,680 --> 00:20:06,199 Speaker 1: for community colleges. These are the kinds of things that 353 00:20:06,240 --> 00:20:08,960 Speaker 1: could help raise the wages of low wage workers. So 354 00:20:09,000 --> 00:20:12,160 Speaker 1: a gradual increase in the minimum wage may on balance 355 00:20:12,240 --> 00:20:15,680 Speaker 1: be fine if it's gradual and not and not all 356 00:20:15,800 --> 00:20:19,560 Speaker 1: the way so fast. But I think of building bridges 357 00:20:19,600 --> 00:20:22,200 Speaker 1: to the future for workers is a much better idea. 358 00:20:22,359 --> 00:20:26,040 Speaker 1: That's Glenn Hubbard of Columbia and Larry Summers of Harvard 359 00:20:26,320 --> 00:20:29,600 Speaker 1: coming up. Our conversation on the new Biden administration continues. 360 00:20:30,119 --> 00:20:38,879 Speaker 1: That's next on Wall Street Week on Bloomberg. This is 361 00:20:38,920 --> 00:20:43,280 Speaker 1: Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 362 00:20:43,440 --> 00:20:45,920 Speaker 1: European Central Bank met this week and although I didn't 363 00:20:45,920 --> 00:20:49,560 Speaker 1: surprise anyone and what it did, President Christine Lagard did 364 00:20:49,600 --> 00:20:52,440 Speaker 1: warn the possibility of a double dip recession in Europe 365 00:20:52,480 --> 00:20:55,040 Speaker 1: as a result of further shutdowns triggered by the pandemic 366 00:20:55,440 --> 00:20:58,040 Speaker 1: and reinforcing amount of Laguard's warning, where p m I 367 00:20:58,119 --> 00:21:01,840 Speaker 1: numbers showing further contracting and Yurozone and UK business activity 368 00:21:02,000 --> 00:21:04,119 Speaker 1: in the month of January. We turn once again to 369 00:21:04,160 --> 00:21:07,080 Speaker 1: our roundtable for a reaction to what we're seeing and 370 00:21:07,160 --> 00:21:10,360 Speaker 1: continued European economics offteness. So Glenn, I'll start with you. 371 00:21:10,720 --> 00:21:13,480 Speaker 1: Is there anything that Madame Legard, for that matter, fiscally 372 00:21:13,520 --> 00:21:15,320 Speaker 1: they can do over there? Is this all a matter 373 00:21:15,359 --> 00:21:19,320 Speaker 1: of vaccinating people? Well, it's first and foremost of public 374 00:21:19,359 --> 00:21:23,320 Speaker 1: health crisis, and vaccination is important and all of the 375 00:21:23,320 --> 00:21:27,360 Speaker 1: prophylactics to fight the spread of the disease. But there 376 00:21:27,359 --> 00:21:30,399 Speaker 1: are fiscal policy actions that need to be taken to 377 00:21:30,520 --> 00:21:34,960 Speaker 1: sustain workers, to sustain firms during this period, so that 378 00:21:35,000 --> 00:21:39,480 Speaker 1: you don't have a K shaped recovery. Is the vaccine 379 00:21:40,080 --> 00:21:43,720 Speaker 1: finally comes aboard. So I think for Europe, fiscal policy 380 00:21:43,800 --> 00:21:46,800 Speaker 1: is going to be more important than just asking President 381 00:21:46,880 --> 00:21:49,480 Speaker 1: Legard to do her jo. So so Larry's talking about 382 00:21:49,480 --> 00:21:51,120 Speaker 1: how K shape recovery, I wonder if there's a different 383 00:21:51,160 --> 00:21:52,880 Speaker 1: kind of case shape recovery if you take a look 384 00:21:52,880 --> 00:21:55,680 Speaker 1: at China. China seems to be rebounding quite nicely, if 385 00:21:55,680 --> 00:21:58,960 Speaker 1: we can say that about the pandemic. Europe is really struggling. 386 00:21:59,000 --> 00:22:00,800 Speaker 1: Maybe the US is somewhere in between. Are we seeing 387 00:22:00,800 --> 00:22:04,200 Speaker 1: early divergence among the nations right now in recovering their 388 00:22:04,200 --> 00:22:08,159 Speaker 1: economies from the pandemic? I think we are, David, And 389 00:22:08,440 --> 00:22:12,400 Speaker 1: I think ultimately what historians may notice out of this 390 00:22:12,520 --> 00:22:18,560 Speaker 1: moment is how much better Asia did than the West did. 391 00:22:19,560 --> 00:22:23,360 Speaker 1: And they order of magnitude, and I mean that literally 392 00:22:23,480 --> 00:22:25,800 Speaker 1: by more than a factor of ten, in some cases, 393 00:22:26,040 --> 00:22:30,000 Speaker 1: by more than a factor of hundred differences in performance 394 00:22:30,600 --> 00:22:35,000 Speaker 1: between Asia. Large parts of Asia and large parts of 395 00:22:35,040 --> 00:22:40,399 Speaker 1: the West. That's something that goes beyond Donald Trump versus 396 00:22:40,440 --> 00:22:45,359 Speaker 1: somebody else as the head of state. And I think 397 00:22:45,400 --> 00:22:49,000 Speaker 1: that's something that's going to get a lot of attention 398 00:22:49,160 --> 00:22:54,160 Speaker 1: going forward. And I think that it's why, in addition 399 00:22:54,200 --> 00:22:58,359 Speaker 1: to the human issues, um, what President Biden is able 400 00:22:58,400 --> 00:23:00,200 Speaker 1: to do in the next three months is going to 401 00:23:00,280 --> 00:23:05,320 Speaker 1: be so profoundly important. If there was ever a test 402 00:23:05,359 --> 00:23:10,320 Speaker 1: of whether government by the people was effectively government for 403 00:23:10,520 --> 00:23:14,280 Speaker 1: the people, it's in the ability to protect people from 404 00:23:14,320 --> 00:23:19,960 Speaker 1: a pandemic. And right now democracies of the United States 405 00:23:20,040 --> 00:23:25,360 Speaker 1: and Europe are not looking particularly good relative to more 406 00:23:25,400 --> 00:23:30,240 Speaker 1: authoritarian UH States, and I think that's a very profound 407 00:23:30,400 --> 00:23:33,679 Speaker 1: question going forward. Glenn, do you agree with that, and 408 00:23:33,720 --> 00:23:35,639 Speaker 1: if so, do you have a hypothesis about why there 409 00:23:35,720 --> 00:23:39,600 Speaker 1: is that divergence. Well, I think it differs across countries. 410 00:23:39,640 --> 00:23:42,639 Speaker 1: But I think Larry is right. We do need to 411 00:23:42,720 --> 00:23:47,639 Speaker 1: make sure that democracy is capable of coping with these major, 412 00:23:47,840 --> 00:23:51,760 Speaker 1: major mobilization type challenges we have before, and we can 413 00:23:51,800 --> 00:23:55,280 Speaker 1: do it again. I would also worry about emerging economies. 414 00:23:55,320 --> 00:23:59,639 Speaker 1: We've been talking about industrial economies Europe, China, United States, 415 00:24:00,080 --> 00:24:03,840 Speaker 1: but the emerging economies have huge problems, both in public 416 00:24:03,880 --> 00:24:08,320 Speaker 1: health and in economics, and require our attention to Okay, 417 00:24:08,320 --> 00:24:10,359 Speaker 1: we wrap up every week with a quick Summer says 418 00:24:10,440 --> 00:24:12,440 Speaker 1: around here with Larry Summers about what he thinks about 419 00:24:12,480 --> 00:24:14,800 Speaker 1: various things. Let's start with a hundred vaccinations in a 420 00:24:14,840 --> 00:24:16,920 Speaker 1: hundred days, which is the President Biden is committed to. 421 00:24:17,040 --> 00:24:20,240 Speaker 1: It's not gonna happen or not, Larry, He's gonna overperform 422 00:24:20,359 --> 00:24:24,439 Speaker 1: significantly on that promise. It's we're almost out a million 423 00:24:24,520 --> 00:24:26,840 Speaker 1: a day, and there's every reason to believe we can 424 00:24:26,960 --> 00:24:30,440 Speaker 1: ramp up in the future. We will do substantially better 425 00:24:30,560 --> 00:24:33,400 Speaker 1: than a hundred million vaccines in a hundred days. Let's 426 00:24:33,400 --> 00:24:36,040 Speaker 1: talk about the U. S treasuries. We heard from Janet 427 00:24:36,080 --> 00:24:39,320 Speaker 1: yelling again at our confirmation hearing they're considering at least 428 00:24:39,359 --> 00:24:41,360 Speaker 1: the duration are we're gonna have a fifty year US 429 00:24:41,400 --> 00:24:44,879 Speaker 1: Treasury bond before the Biden administration is over. That's a 430 00:24:44,920 --> 00:24:47,399 Speaker 1: long time. We're not going to have it anytime soon, 431 00:24:47,560 --> 00:24:51,640 Speaker 1: because Janet's gonna learn what all her predecessors who thought 432 00:24:51,640 --> 00:24:55,359 Speaker 1: about this learned that doing that would be a major 433 00:24:55,520 --> 00:24:59,640 Speaker 1: gift to all the fixed income trading desks at all 434 00:24:59,680 --> 00:25:03,960 Speaker 1: the head funds at the expense of taxpayers. Given the 435 00:25:04,000 --> 00:25:07,000 Speaker 1: way it's likely to be priced, it would turn out 436 00:25:07,000 --> 00:25:10,520 Speaker 1: to be a major set up for arbitrage opportunity. So 437 00:25:10,720 --> 00:25:13,680 Speaker 1: it won't happen anytime soon. And finally, Larry, we had 438 00:25:13,680 --> 00:25:15,880 Speaker 1: a remarkable to r at the very end of the week, 439 00:25:16,160 --> 00:25:18,720 Speaker 1: the company named game Stop that they actually had to 440 00:25:18,720 --> 00:25:21,480 Speaker 1: stop trading twice during the day. It shot way up, 441 00:25:21,520 --> 00:25:23,840 Speaker 1: I mean way way up. And apparently it's because there 442 00:25:23,920 --> 00:25:27,639 Speaker 1: was an army of Reddit users who all marshaled together 443 00:25:27,640 --> 00:25:30,080 Speaker 1: and go against a short seller, and basically I couldn't 444 00:25:30,119 --> 00:25:33,159 Speaker 1: see any change in the underlying company at all. Uh 445 00:25:33,160 --> 00:25:35,520 Speaker 1: As social media are gonna really do damage not only 446 00:25:35,520 --> 00:25:38,399 Speaker 1: to our political system but to our market system. I 447 00:25:38,440 --> 00:25:43,800 Speaker 1: suspect our market system will survive social media, but God, 448 00:25:43,920 --> 00:25:47,119 Speaker 1: this points up the need for as we used to 449 00:25:47,160 --> 00:25:51,000 Speaker 1: say in the Treasury in the nineties, a regulatory system 450 00:25:51,080 --> 00:25:55,440 Speaker 1: is modern as the markets, and there's always uh a 451 00:25:55,480 --> 00:25:59,600 Speaker 1: need to regulate bucket shops and to regulate various ways 452 00:25:59,680 --> 00:26:04,160 Speaker 1: and would retail investors are taking advantage of And we're 453 00:26:04,160 --> 00:26:07,440 Speaker 1: in a situation where there are where it's an old 454 00:26:07,520 --> 00:26:10,520 Speaker 1: theme and an old story, but there are new ways 455 00:26:10,600 --> 00:26:13,479 Speaker 1: of doing it. So I'm glad that we're having an 456 00:26:13,480 --> 00:26:18,119 Speaker 1: administration and a set of financial regulators. I was glad 457 00:26:18,160 --> 00:26:21,320 Speaker 1: about the appointment of people like Michael Barr at the 458 00:26:21,359 --> 00:26:25,960 Speaker 1: Controller of the Currency UM that will Gary Ginstler at 459 00:26:26,800 --> 00:26:31,720 Speaker 1: the SEC, that UH will be committed to regulating where 460 00:26:31,720 --> 00:26:34,560 Speaker 1: regulation is necessary. But Larry briefly here at the end, 461 00:26:34,600 --> 00:26:36,399 Speaker 1: I must say, I'm surprised. I thought if there was 462 00:26:36,400 --> 00:26:38,400 Speaker 1: gonna be a regulatory body in sarch of social media, 463 00:26:38,440 --> 00:26:40,720 Speaker 1: it would be the FTC. It could be maybe Department 464 00:26:40,720 --> 00:26:43,320 Speaker 1: of Justice, than I trust, maybe it'll be the SEC 465 00:26:43,480 --> 00:26:46,520 Speaker 1: actually has to regulate social media. Look, I think there 466 00:26:46,520 --> 00:26:48,960 Speaker 1: are a whole set of issues that are outside my 467 00:26:49,160 --> 00:26:56,520 Speaker 1: expertise on you know, inflammatory tweets, on monopoly power in 468 00:26:56,960 --> 00:27:04,679 Speaker 1: social media platforms, in privacy issues that are the FTCs 469 00:27:04,800 --> 00:27:09,080 Speaker 1: UH remit. But when I look at things like what 470 00:27:09,200 --> 00:27:12,520 Speaker 1: happened it read it, that's a kind of dysfunctional market, 471 00:27:13,119 --> 00:27:15,680 Speaker 1: and I think that's something the SECS get to have 472 00:27:15,960 --> 00:27:20,120 Speaker 1: to UH pay a lot of attention to, just as day, 473 00:27:20,960 --> 00:27:23,520 Speaker 1: just as there were a whole set of practices that 474 00:27:23,960 --> 00:27:28,359 Speaker 1: produced balloon bubble stocks prior to the nineteen Thank you 475 00:27:28,400 --> 00:27:30,520 Speaker 1: so much to Wall Street. We continues Larry Summers of 476 00:27:30,560 --> 00:27:34,360 Speaker 1: Harvard and also Glenn Hubbard of Columbia. It's time now 477 00:27:34,440 --> 00:27:39,480 Speaker 1: for a look ahead on global Wall Street, David. Next 478 00:27:39,480 --> 00:27:42,120 Speaker 1: week brings us a virtual Davos, and we will hear 479 00:27:42,200 --> 00:27:45,120 Speaker 1: from more government and corporate leaders on the global outlook 480 00:27:45,200 --> 00:27:48,040 Speaker 1: with Joe Biden in the White House. And here in Asia, 481 00:27:48,119 --> 00:27:51,200 Speaker 1: we have a busy week of Ernie's ahead. From Japan, 482 00:27:51,320 --> 00:27:54,119 Speaker 1: more than four hundred companies listed on the Topics report, 483 00:27:54,359 --> 00:27:58,320 Speaker 1: including prominent tech players Spanic and Tokyo Electron, along with 484 00:27:58,480 --> 00:28:02,800 Speaker 1: Tokyo Disney operator Oriental Land. South Korea's lineup includes Senday 485 00:28:02,840 --> 00:28:06,640 Speaker 1: Motors and Tesla battery supplier LG Chemical. Will also get 486 00:28:06,640 --> 00:28:09,760 Speaker 1: results from India's largest lender, the State Bank of India, 487 00:28:09,880 --> 00:28:12,399 Speaker 1: which will give us clues into the recovery ahead of 488 00:28:12,440 --> 00:28:15,720 Speaker 1: the Indian parliament kicking off its budget session on Friday, 489 00:28:15,880 --> 00:28:20,160 Speaker 1: Danny thanks Sophie. In Europe, there are increasing fears about 490 00:28:20,200 --> 00:28:23,040 Speaker 1: a double dip recession. We got data on Friday that 491 00:28:23,080 --> 00:28:26,000 Speaker 1: showed the economy in the Euro Area is slipping further 492 00:28:26,160 --> 00:28:30,080 Speaker 1: into a contraction. You have more lockdowns hurting the services 493 00:28:30,119 --> 00:28:34,360 Speaker 1: sector and at the same time regisit increasing delivery delays 494 00:28:34,640 --> 00:28:38,440 Speaker 1: hurting the manufacturing sector. How the government responds to this 495 00:28:38,520 --> 00:28:40,800 Speaker 1: over the next week is going to be crucial, and 496 00:28:40,880 --> 00:28:44,000 Speaker 1: their plans on how much longer economies will continue to 497 00:28:44,040 --> 00:28:48,720 Speaker 1: be lockdown. Scarlett Thanks Danny. Week two of Joe Biden's presidency, 498 00:28:48,840 --> 00:28:51,720 Speaker 1: they bring more executive orders and updates on his one 499 00:28:51,720 --> 00:28:55,400 Speaker 1: point nine trillion dollar COVID relief plan. The pandemic has 500 00:28:55,440 --> 00:28:58,200 Speaker 1: generally been a big positive for tech, and their latest 501 00:28:58,200 --> 00:29:02,560 Speaker 1: earning support will likely show the spoil industry giants Apple, Facebook, 502 00:29:02,600 --> 00:29:05,400 Speaker 1: and Microsoft all expected to indicate that the trend will 503 00:29:05,400 --> 00:29:09,680 Speaker 1: continue well into The Federal Reserve holds a two day meeting. 504 00:29:09,800 --> 00:29:12,400 Speaker 1: Chairman j Powell expected to stress the need to wait 505 00:29:12,440 --> 00:29:15,400 Speaker 1: and see on how physical support and the vaccine rollout 506 00:29:15,440 --> 00:29:18,640 Speaker 1: shape up before making any changes to its outlook. And 507 00:29:18,720 --> 00:29:21,280 Speaker 1: we get an initial read on fourth quarter economic growth 508 00:29:21,320 --> 00:29:24,680 Speaker 1: with GDP probably slowing to a four point three percent rate. 509 00:29:25,200 --> 00:29:32,640 Speaker 1: David BECKAVERDEO thanks to Sophie, Danny and Scarlett. Finally, one 510 00:29:32,680 --> 00:29:35,480 Speaker 1: more thought. It's not easy being president. You have the 511 00:29:35,520 --> 00:29:37,800 Speaker 1: weight of the free world on your shoulders. You have 512 00:29:37,800 --> 00:29:39,960 Speaker 1: a pesky Congress that gives you a tough time over 513 00:29:40,040 --> 00:29:42,440 Speaker 1: just about anything you want to do, and you need 514 00:29:42,480 --> 00:29:44,720 Speaker 1: to protect the country from possible attack at any time 515 00:29:44,720 --> 00:29:47,160 Speaker 1: of day or of night. But the job is not 516 00:29:47,240 --> 00:29:49,720 Speaker 1: without its perks. You get a big house, you get 517 00:29:49,720 --> 00:29:52,240 Speaker 1: a seven forty seven is your personal airplane, and a 518 00:29:52,280 --> 00:29:54,880 Speaker 1: limo so big that they call it the Beast. And 519 00:29:54,920 --> 00:29:58,320 Speaker 1: of course you do have four million employees committed to 520 00:29:58,400 --> 00:30:02,680 Speaker 1: giving you anything you want. Right, Well, not so fast. 521 00:30:03,000 --> 00:30:05,400 Speaker 1: It turns out that all those people charged with keeping 522 00:30:05,400 --> 00:30:08,040 Speaker 1: you safe have their own ideas about what you can 523 00:30:08,320 --> 00:30:12,200 Speaker 1: and cannot do. So when President Barack Obama took office, 524 00:30:12,240 --> 00:30:15,480 Speaker 1: he fought for two months to keep his BlackBerry. Sure. 525 00:30:15,600 --> 00:30:18,400 Speaker 1: He ultimately got his way, but only after a two 526 00:30:18,400 --> 00:30:21,160 Speaker 1: month battle. And when he got his precious BlackBerry back, 527 00:30:21,480 --> 00:30:23,600 Speaker 1: he could only reach a small circle of people, and 528 00:30:23,680 --> 00:30:27,640 Speaker 1: even those couldn't forward any of his messages. And now 529 00:30:27,720 --> 00:30:31,320 Speaker 1: it's President Biden's turn. His simple pleasure is getting on 530 00:30:31,360 --> 00:30:33,680 Speaker 1: his peloton and working out every morning to get the 531 00:30:33,760 --> 00:30:37,640 Speaker 1: day started right. But there is a problem. The peloton 532 00:30:37,960 --> 00:30:41,320 Speaker 1: connects to the internet, letting you get inspiration from your 533 00:30:41,320 --> 00:30:45,080 Speaker 1: favorite trainer and compete with others on the leaderboard. Well, 534 00:30:45,120 --> 00:30:47,760 Speaker 1: the secret service is none too happy with the idea 535 00:30:47,800 --> 00:30:52,520 Speaker 1: of foreign adversaries getting access into the new president's innermost sanctum, 536 00:30:52,560 --> 00:30:56,360 Speaker 1: not to mention his exercise routeam. I'm sure President Biden 537 00:30:56,400 --> 00:30:59,520 Speaker 1: will get some version of his beloved peloton back at 538 00:30:59,560 --> 00:31:02,000 Speaker 1: some point point, but we shall all take heart that 539 00:31:02,440 --> 00:31:05,880 Speaker 1: even though we can't protect untold government computer assistance from 540 00:31:05,920 --> 00:31:08,840 Speaker 1: Russian hackers, we can make sure they can't get at 541 00:31:08,920 --> 00:31:15,360 Speaker 1: one lonely peloton now located at Pennsylvania Avenue. That does it. 542 00:31:15,440 --> 00:31:18,120 Speaker 1: For this episode of Wall Street Week, I'm David Weston. 543 00:31:18,200 --> 00:31:29,680 Speaker 1: This is Bloomberg. See you next week. One of three 544 00:31:29,720 --> 00:31:32,640 Speaker 1: adults has pre diabetes. That means it could be you, 545 00:31:32,640 --> 00:31:37,080 Speaker 1: your best man, your worst man. Take the risk test 546 00:31:37,120 --> 00:31:39,520 Speaker 1: that do I have pre diabetes? Dot org to know 547 00:31:39,560 --> 00:31:41,640 Speaker 1: where you stand. Brought to you might be ad counsel 548 00:31:41,720 --> 00:31:43,520 Speaker 1: and it's Pre Diabetes Awareness Partners.