WEBVTT - Bloomberg Wall Street Week: Ross, Brouillette, Langone 0:00:00.160 --> 0:00:03.360 This is Bloomberg Wall Street Week. What's the state of 0:00:03.400 --> 0:00:06.360 corporate governance? The deficit is a real issue. The US 0:00:06.400 --> 0:00:09.920 economy continues to send mixed signals, the financial stories that 0:00:10.039 --> 0:00:13.560 keep our world fed, action to con concerns over dollar liquidity, 0:00:13.600 --> 0:00:16.599 and encouraging China data. The five hundred wealthiest people in 0:00:16.640 --> 0:00:19.560 the world. Through the eyes of the most influential voices 0:00:19.880 --> 0:00:23.320 Larry Summers, the former Treasury Secretary, star Ward CEO, Kevin Johnson, 0:00:23.440 --> 0:00:27.040 sec Chairman J Clayton. Bloomberg Wall Street Week with David 0:00:27.080 --> 0:00:31.640 Weston from Bloomberg Radio. The issue is joined. Republicans lay 0:00:31.640 --> 0:00:34.120 out a very different view of where we're headed, but 0:00:34.240 --> 0:00:36.879 equity markets will They just seemed to keep on climbing 0:00:36.920 --> 0:00:40.000 no matter what they hear. This is a special election 0:00:40.120 --> 0:00:43.280 edition of Wall Street Week. I'm David Weston. President Trump 0:00:43.280 --> 0:00:47.000 began rolling back Obama era regulations early in his administration 0:00:47.080 --> 0:00:49.120 when he took the United States out of the Paris 0:00:49.120 --> 0:00:53.800 Climate Accord. In order to fulfill my solemn duty to 0:00:53.880 --> 0:00:58.920 protect America and its citizens, the United States will withdraw 0:01:01.600 --> 0:01:07.920 from the Paris Climate a Court. The Trump administration also 0:01:08.000 --> 0:01:11.559 lowered US vehicle emission standards, saying it would save automakers 0:01:11.600 --> 0:01:15.320 one billion dollars in compliance costs. But just last week, 0:01:15.400 --> 0:01:19.640 California finalized its own fuel efficiency agreements with five automakers 0:01:19.720 --> 0:01:22.800 that are more closely in line with the Obama era standards. 0:01:23.120 --> 0:01:26.920 The Trump administration has placed big emphasis on increasing use 0:01:26.959 --> 0:01:30.880 and production of fossil fuels. Republicans and Democrats are far 0:01:30.959 --> 0:01:34.760 apart on their climate policies, but Dan Briette, Secretary of Energy, 0:01:34.800 --> 0:01:37.880 says it is possible to have a bipartisan energy plan. 0:01:38.240 --> 0:01:40.200 Sure you can. I mean, natural gas is a very 0:01:40.240 --> 0:01:42.840 clean source, and we're developing technologies here at the at 0:01:42.880 --> 0:01:44.960 the U. S. Department of Energy to make it even cleaner. 0:01:45.200 --> 0:01:48.440 We're also developing technologies to make you know, carbon intense 0:01:48.480 --> 0:01:51.720 fuels like coal, even cleaner. And of course we always 0:01:51.800 --> 0:01:54.639 you know, have had nuclear power for the last seventy years, 0:01:54.880 --> 0:01:58.120 which is entirely emissions free. So I mean, you can 0:01:58.240 --> 0:02:01.160 do both. You can have a renewal generation base and 0:02:01.200 --> 0:02:05.840 you can have an emissions free baseload generation available to you. 0:02:05.840 --> 0:02:08.239 Said to choose to do it, and I think that's 0:02:08.280 --> 0:02:11.560 what the fundamental problem is in places like California, they've 0:02:11.560 --> 0:02:14.600 relied too heavily or focused too heavily on renewable power 0:02:14.960 --> 0:02:18.040 like wind and solar, at the exclusion of some of 0:02:18.040 --> 0:02:21.760 this baseload power which you absolutely need in today's world 0:02:21.760 --> 0:02:24.800 to ensure that you have the energy you need when 0:02:24.840 --> 0:02:27.440 you need it. Prisoner Trump's administration has done a fair 0:02:27.480 --> 0:02:31.160 amount and trying to really, as I say, reinforce energy 0:02:31.160 --> 0:02:34.160 independence of United States, relying in part and significant partner 0:02:34.200 --> 0:02:36.960 fossil fuels. What's left to be done if he's elected 0:02:37.000 --> 0:02:40.040 for a second term, what's on your agenda, Well, we 0:02:40.040 --> 0:02:42.519 need to continue to build out infrastructure. So you know, 0:02:42.600 --> 0:02:44.280 as you and I have discussed in the past, we 0:02:44.360 --> 0:02:47.359 have done a great job in America of increasing our production, 0:02:47.720 --> 0:02:51.960 making ourselves energy independent, relying on new technologies, are new 0:02:51.960 --> 0:02:56.160 work technologies like horizontal frack, horizontal drilling and fracking to 0:02:56.240 --> 0:02:59.680 allow us to increase production of of these resources here 0:02:59.680 --> 0:03:02.520 in the States. Our challenge today is actually getting the 0:03:02.520 --> 0:03:06.200 product to market. It's building out pipeline infrastructure to get 0:03:06.200 --> 0:03:08.320 it to the oceans, to get it to the coastlines. 0:03:08.680 --> 0:03:11.280 It's building export facilities so that we can make this 0:03:11.400 --> 0:03:13.519 oil and gas available to the rest of the world, 0:03:13.720 --> 0:03:15.720 because they're going to continue to use these types of 0:03:15.760 --> 0:03:19.400 fuels for the foreseeable future, perhaps as many as forty 0:03:19.400 --> 0:03:22.120 to fifty years out. And I think it's important that 0:03:22.160 --> 0:03:24.480 as we do this, we maintain our posture in the 0:03:24.480 --> 0:03:27.600 world as the number one producer of oil and gas. 0:03:27.919 --> 0:03:29.800 And the reason we'd like to do that is because 0:03:29.800 --> 0:03:32.760 it gives us four policy options. The whole notion that 0:03:32.800 --> 0:03:35.400 we are able to, you know, for instance, of Secretary 0:03:35.440 --> 0:03:39.040 of State traveling to Sudan to perhaps normalize relations between 0:03:39.040 --> 0:03:42.120 Sudan and Israel, to work on deals like the U 0:03:42.160 --> 0:03:44.920 a E And Israel. Those things couldn't have happened forty 0:03:45.000 --> 0:03:47.840 years ago because we would have been afraid of the 0:03:47.880 --> 0:03:50.520 reaction in the Middle East, and perhaps we would have 0:03:50.640 --> 0:03:54.560 endangered our national security by putting our oil supply at risk. 0:03:54.640 --> 0:03:57.160 We were entirely dependent upon them. The fact that we 0:03:57.200 --> 0:04:00.600 are independent today allows us to pursue these types of 0:04:00.640 --> 0:04:04.360 foreign policy options. Energy is important in our society for 0:04:04.440 --> 0:04:06.600 all sorts of reasons, but it also is the source 0:04:06.640 --> 0:04:08.080 of a lot of employment. There are a lot of 0:04:08.160 --> 0:04:10.840 jobs in the energy industry. And one place where the 0:04:10.880 --> 0:04:13.160 repolis of the Democrats seem to be two ships passing 0:04:13.200 --> 0:04:16.039 the night is how we're going to create more jobs. 0:04:16.320 --> 0:04:18.880 We heard uh for Vice President Biden say he's going 0:04:18.920 --> 0:04:21.640 to create millions and more jobs by going to green energy. 0:04:21.960 --> 0:04:24.400 We heard Republicans criticize his positis for saying, you're gonna 0:04:24.440 --> 0:04:26.360 lose a lot of jobs, Which is it, aren't we 0:04:26.400 --> 0:04:28.760 adding more jobs and renewables right now that we're adding 0:04:28.760 --> 0:04:32.280 in traditional energy? Yeah? Well, I can't really comment on 0:04:32.400 --> 0:04:34.960 Mr Biden's comments. As part of the campaign, I'm prohibited 0:04:34.960 --> 0:04:37.039 from doing that, so I'll stay away from that. But 0:04:37.120 --> 0:04:39.120 what I will comment on is that, you know, when 0:04:39.160 --> 0:04:41.280 we look at the technologies that have put us at 0:04:41.279 --> 0:04:43.600 the top of the world in terms of energy production, 0:04:43.880 --> 0:04:47.000 hydraulic fraction we just mentioned, you know, the US Chamber 0:04:47.000 --> 0:04:49.240 of Commerce tells me that if we were to do 0:04:49.279 --> 0:04:52.880 away with that technology, we would lose approximately nineteen million 0:04:53.000 --> 0:04:56.000 jobs over the next few years. And you know, it's 0:04:56.000 --> 0:04:58.960 not a question of retraining those people and putting them 0:04:59.000 --> 0:05:03.239 into renewable technologies. Certainly you can do that, and people 0:05:03.279 --> 0:05:05.080 may be forced to do that if you if you 0:05:05.240 --> 0:05:08.000 if you do away with this technology. But the challenge 0:05:08.040 --> 0:05:10.680 with that, David, is that the salaries, according to the 0:05:10.800 --> 0:05:13.320 unions that we have talked to, the salaries in the 0:05:13.360 --> 0:05:16.520 oil and gas business are about twice what we're seeing 0:05:16.560 --> 0:05:19.240 in the renewable energy space. So it's one thing to 0:05:19.279 --> 0:05:21.600 suggest that you might retrain people and put them into 0:05:21.640 --> 0:05:23.679 a new role, which are also giving them a fifty 0:05:23.720 --> 0:05:27.480 percent pay cut according to these Unionsas just briefly here 0:05:27.480 --> 0:05:29.120 at the end, give us something of the investment you're 0:05:29.160 --> 0:05:32.720 making a new technology of the Department Energy, Well, it's enormous. 0:05:32.800 --> 0:05:35.440 I mean, we're across the board. We spend about sixteen 0:05:35.440 --> 0:05:40.039 billion dollars a year just in basic science, basic research 0:05:40.320 --> 0:05:43.479 that leads to these technologies that we just discussed. I'm 0:05:43.560 --> 0:05:46.240 very excited about what's just over the horizon with regard 0:05:46.279 --> 0:05:49.160 to advanced nuclear reactors. I think we're right on the 0:05:49.200 --> 0:05:53.520 cusp of not only smaller reactors, higher density energy sources 0:05:53.560 --> 0:05:56.479 for America that will be connected to micro grids in 0:05:56.520 --> 0:05:59.760 some cases. We're also excited about moving perhaps even beyond 0:06:00.000 --> 0:06:02.480 fision energy nuclear energy as we know it today, to 0:06:02.680 --> 0:06:06.120 fusion energy. So it's a very exciting world that we're 0:06:06.120 --> 0:06:07.720 about to face. Is there a real process with the 0:06:07.760 --> 0:06:11.560 fusion energy people and talking about that forever? That's true, Yeah, 0:06:11.640 --> 0:06:13.880 they have been, but we've made real progress. We've turned 0:06:13.880 --> 0:06:16.680 around some of the management issues around a large facility 0:06:16.720 --> 0:06:20.279 in France known as the Eater Facility. But we also 0:06:20.320 --> 0:06:22.800 have private sector companies here in the United States who 0:06:22.800 --> 0:06:27.680 have made tremendous advances, General Atomic, several others out in California. 0:06:27.720 --> 0:06:30.120 They're doing a great job. That was Secretary of Energy 0:06:30.200 --> 0:06:33.359 Dan Briett. Coming up. President Trump is running on his 0:06:33.480 --> 0:06:36.920 record of talking tough on trade. We talked with Secretary 0:06:36.960 --> 0:06:39.920 of Commerce Wilburg Ross on what the President has accomplished 0:06:40.000 --> 0:06:49.040 so far. That's next on walstret Week on Bloomberg. This 0:06:49.520 --> 0:06:54.080 is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 0:06:54.400 --> 0:06:57.440 As a candidate in two thousand sixteen, President Trump promised 0:06:57.480 --> 0:06:59.679 to make trade deals that would be fair to American 0:06:59.720 --> 0:07:03.200 workers and businesses. Over the past three years, he raised 0:07:03.240 --> 0:07:06.599 harrifs on imports, renegotiated a trade deal with Canada, Mexico, 0:07:06.839 --> 0:07:09.560 and broke in a Phase one deal with China. In 0:07:09.600 --> 0:07:11.880 spite of some of the progress on the trade deal, 0:07:12.040 --> 0:07:14.640 US exports to China fell by nearly eight percent from 0:07:16.560 --> 0:07:19.000 and China continues to fall short of its promises to 0:07:19.080 --> 0:07:23.200 buy US goods. The US trade deficit narrowed slightly in 0:07:23.320 --> 0:07:27.000 June as global lockdown restrictions from COVID nineteen East, but 0:07:27.040 --> 0:07:30.560 the recovery is expected to be uneven. We asked Secretary 0:07:30.560 --> 0:07:33.560 of Commerce Wilburt Ross what President Trump has accomplished on 0:07:33.640 --> 0:07:37.440 his trade agenda so far. Well, in terms of China, 0:07:37.880 --> 0:07:42.960 a lot has been accomplished. On the enforcement side, we 0:07:43.040 --> 0:07:47.640 really have been enforcing quite vigorously. You're familiar with the 0:07:47.640 --> 0:07:51.320 actions we've taken on wild Way, You're familiar with the 0:07:51.360 --> 0:07:57.000 actions that we've taken on ZTE, two major telecom companies. 0:07:57.640 --> 0:08:00.920 Most recently, we've been working very hard are on the 0:08:01.000 --> 0:08:06.760 semiconductive part of things, because while China does have technology, 0:08:06.960 --> 0:08:11.440 we still have the best software design and the best 0:08:11.480 --> 0:08:19.000 fabrication equipment for semiconductors, so we're trying to avoid them 0:08:19.040 --> 0:08:25.600 taking unfair advantage of our technology. Technology is really important 0:08:26.080 --> 0:08:30.960 because while protecting things like steel and aluminum help take 0:08:31.000 --> 0:08:36.400 care of today's world, technology is tomorrow's world, So that's 0:08:36.400 --> 0:08:40.440 a big deal. Very recently, we put on the entity 0:08:40.640 --> 0:08:46.800 list of five hundred companies since two thousand and seventeen. 0:08:47.559 --> 0:08:52.200 Awful lot of those are Chinese companies, and that's because 0:08:52.640 --> 0:08:55.440 they are the ones that seem to be doing the 0:08:55.480 --> 0:09:01.839 most to violate sanctions, to violate human rights, and most 0:09:01.920 --> 0:09:07.240 recently also to create problems in Hong Kong. So that's 0:09:07.280 --> 0:09:10.280 been a big, big series. And then of course you 0:09:10.360 --> 0:09:14.360 have the tariffs, the Section three Old one tariffs that 0:09:14.640 --> 0:09:20.200 USTR imposed on China. So the cumulative effect of ball 0:09:20.360 --> 0:09:25.880 this is enormously greater than the long term camulative effect 0:09:25.920 --> 0:09:29.880 of everything that had been done pre Trump, Mr Secretary, 0:09:29.920 --> 0:09:32.640 As you think about a second for your term for 0:09:32.679 --> 0:09:35.040 President Trump, there's a lot of concern that we may 0:09:35.040 --> 0:09:37.240 be entering into what some people call a tech cold 0:09:37.280 --> 0:09:39.200 war with China. Do you believe at the end of 0:09:39.240 --> 0:09:41.880 four years with President Trump still in office, we would 0:09:41.880 --> 0:09:45.959 be more disengaged with China when it comes to technology. Well, 0:09:46.040 --> 0:09:49.680 first of all, in the Cold War and technology started 0:09:49.760 --> 0:09:54.960 long before President Trump. It wasn't only under President Trump 0:09:55.040 --> 0:09:59.640 that the Chinese was stealing intellectual property. Wasn't only under 0:09:59.679 --> 0:10:03.480 President it in Trump that the Chinese were requiring joint 0:10:03.559 --> 0:10:07.760 ventures and lo and behold, the joint venture partners required 0:10:07.800 --> 0:10:14.240 technology transfers. So this abuse of technology, which you've called 0:10:14.280 --> 0:10:19.040 the technology cold War, really had its origins many years 0:10:19.200 --> 0:10:25.319 before the differences. President Trump is mounting the ramparts and 0:10:25.360 --> 0:10:30.560 starting to defend US against the technology war. Then he's 0:10:30.600 --> 0:10:34.000 doing it with the whole variety of measures that I've 0:10:34.160 --> 0:10:38.600 described before. But he's doing it also in another way 0:10:38.920 --> 0:10:42.559 in terms of the big initiative that was just announced 0:10:42.920 --> 0:10:48.880 about a billion dollars for further artificial intelligence research and 0:10:49.040 --> 0:10:53.840 quantum computing research. Those are two of the most significant 0:10:54.240 --> 0:10:59.040 technological advances yet to come, and so putting money here 0:11:00.160 --> 0:11:04.200 helping our companies go further is a very good thing. 0:11:04.720 --> 0:11:08.040 So there are two edges to what we're doing. The 0:11:08.120 --> 0:11:12.520 one is clamping down on their abuses, and the other 0:11:13.080 --> 0:11:19.560 is fostering US technology we've been helping to propagate in 0:11:19.679 --> 0:11:28.200 the Congress Senator Cornyn's legislation relating to semiconductor funding so 0:11:28.240 --> 0:11:32.200 that we can bring more fabs back to the US. 0:11:32.360 --> 0:11:35.400 I hope the Congress will go along with that when 0:11:35.400 --> 0:11:38.360 they go back into session, and if they do, that 0:11:38.440 --> 0:11:41.480 will be a very very good thing for America. Secretary 0:11:41.640 --> 0:11:43.200 was one of the things that we have heard a 0:11:43.240 --> 0:11:45.280 good deal out of out of the Trump administration is 0:11:45.320 --> 0:11:48.160 the fact that the coronavirus originated in China. There is 0:11:48.200 --> 0:11:50.560 a lot of concern that they were not forthcoming and 0:11:50.600 --> 0:11:53.079 disclosing what happened, a lot of blame and finger point. 0:11:53.200 --> 0:11:56.840 Let's be frank, is there any serious contemplation of possible 0:11:56.880 --> 0:11:59.400 sanctions against China coming out of the coronavirus and how 0:11:59.400 --> 0:12:01.840 they handle it seen sanctions for the Trunk Administration in 0:12:01.840 --> 0:12:06.960 other situations. We believe that they did not handle the 0:12:07.040 --> 0:12:13.360 coronavirus very well. Nobody knows right now whether the original 0:12:13.520 --> 0:12:18.400 outburst was something deliberate, was it leakage from a laboratory 0:12:18.520 --> 0:12:22.800 that was inadvertent, or how it exactly started. But what 0:12:22.960 --> 0:12:26.440 we do know is that at the same time as 0:12:26.480 --> 0:12:32.480 they blocked air travel from Wuhan to Beijing, Shanghai and 0:12:32.600 --> 0:12:37.640 other big Chinese cities, they didn't block travel to the US, 0:12:38.040 --> 0:12:42.040 to Europe and to Africa. That was a deliberate decision, 0:12:42.559 --> 0:12:47.959 and obviously that contributed mightily to the spread of coronavirus 0:12:48.000 --> 0:12:53.760 to the United States. Second, they've not been very forthcoming 0:12:53.800 --> 0:12:57.760 to our health authorities about what was actually going on 0:12:58.040 --> 0:13:02.560 over there, and in fact, designed to stand it. They've 0:13:02.640 --> 0:13:08.520 now prohibited their virologists from doing joint papers with American 0:13:08.679 --> 0:13:13.960 virologists trying to sort through coronavirus, So those are not 0:13:14.240 --> 0:13:19.240 very helpful things. There's those some severe question as to 0:13:19.360 --> 0:13:23.240 how forthcoming they were in their relations with the w 0:13:23.440 --> 0:13:26.560 t O. So there's a lot to worry about in 0:13:26.679 --> 0:13:31.200 their handling of coronavirus. But be that as it may, 0:13:31.920 --> 0:13:36.440 it's pretty clear on a national basis, and incidents of 0:13:36.480 --> 0:13:39.839 new cases is coming down quite a bit. Had been 0:13:39.960 --> 0:13:44.040 up around seventy six thousand on a seven day average. 0:13:44.440 --> 0:13:48.160 Now it's down into forty thousand, so it's still too many, 0:13:48.679 --> 0:13:52.960 but direction of change is a very good one. Plus 0:13:53.440 --> 0:13:58.439 every day we're having announcements about a potential cure, every 0:13:58.520 --> 0:14:02.720 day we're having announcements about a potential vaccine. We're going 0:14:02.800 --> 0:14:05.480 to get there and want to get there pretty quickly. 0:14:05.960 --> 0:14:10.319 We will get this ugly monster under control. And the 0:14:10.400 --> 0:14:15.000 decisive action taken by the President both cutting off travel 0:14:16.120 --> 0:14:22.480 to China early on despite the objections of Nancy Pelosi 0:14:22.520 --> 0:14:26.000 and Joe Biden, was a very wise thing. That was 0:14:26.120 --> 0:14:29.840 U s Commerce Secretary Wilburt Ross coming up. The US 0:14:29.880 --> 0:14:33.560 healthcare system is facing its biggest test from COVID nineteen. 0:14:34.080 --> 0:14:36.280 We talked with Ken Langon, chairman of the n y 0:14:36.400 --> 0:14:39.600 U Langon Medical Center about what the pandemic says about 0:14:39.600 --> 0:14:42.720 our health care system. That's next on Wall Street Week 0:14:43.000 --> 0:14:52.120 on Bloomberg. This is Bloomberg Wall Street Week with David 0:14:52.160 --> 0:14:56.040 Weston from Bloomberg Radio. COVID nineteen is shining a light 0:14:56.080 --> 0:14:59.080 on the state of healthcare in the United States. President 0:14:59.080 --> 0:15:01.320 Trump has made no secret of what he thinks of 0:15:01.320 --> 0:15:07.160 the Affordable Care Act. We have to repeal and replace Obamacare. 0:15:08.640 --> 0:15:12.520 We can repeal it, but the best is repeal and 0:15:12.560 --> 0:15:16.360 replace and let's get going. President Trump's Jobs and Tax 0:15:16.440 --> 0:15:20.600 Cuts Active seventeen scrapped the c A individual mandate, but 0:15:20.680 --> 0:15:22.920 his request for the Supreme Court to strike down the 0:15:23.080 --> 0:15:26.600 entire law is still pending. Healthcare spending grew four point 0:15:26.640 --> 0:15:31.400 six two eighteen, reaching three point six trillion dollars. Healthcare 0:15:31.440 --> 0:15:34.200 expenditures as a share of the nation's GDP has been 0:15:34.200 --> 0:15:37.480 growing steadily as tax revenue as a share of GDP 0:15:37.720 --> 0:15:41.000 comes down. We asked Ken Langne, chair of the board 0:15:41.000 --> 0:15:42.880 of Trustees of n y U Land Gone and co 0:15:42.960 --> 0:15:46.320 founder of home Depot, what COVID nineteen taught us about 0:15:46.440 --> 0:15:53.080 US healthcare. The virus to me is rapidly receding an 0:15:53.080 --> 0:15:58.000 impact and importance. For example, the results in New York 0:15:58.000 --> 0:16:01.400 City hospitals are dramatically lower than they were back in April. 0:16:01.800 --> 0:16:06.760 We whether it's heard immunity, whether it's compliance or not, 0:16:06.920 --> 0:16:10.440 if you wear a mask, everybody wore a mask, the 0:16:10.440 --> 0:16:14.000 problem would go away, because that's the easiest way to 0:16:14.120 --> 0:16:19.000 convey inflections. So I am very optimistic about how we're 0:16:19.080 --> 0:16:21.000 learning to deal with it. For example, one of the 0:16:21.080 --> 0:16:24.160 things we learned about an m y U was we 0:16:24.240 --> 0:16:28.760 had patients who have IT lying prone, lying on their bellies, 0:16:29.760 --> 0:16:32.560 and believe it or not, it had a significant effect 0:16:33.440 --> 0:16:37.120 on their dependence on a ventilator, which if you don't 0:16:37.160 --> 0:16:39.440 have to put somebody in the ventilator, God, please don't. 0:16:40.680 --> 0:16:46.800 I think we've addressed the issue of supply of PPE successfully, 0:16:46.880 --> 0:16:49.360 and I think the pharmaceutical industry, by the way, deserves 0:16:49.360 --> 0:16:52.440 a lot of credit the effort they've all made collectively, 0:16:52.920 --> 0:16:57.880 not with a profit motive. Uh. I believe, based upon 0:16:58.640 --> 0:17:02.160 hearing people smarter than me, that will have at least 0:17:02.240 --> 0:17:08.160 one successful vaccine by Christmas, and maybe more, maybe more, 0:17:08.240 --> 0:17:12.879 maybe multiples are one. Uh. I think there's there's there's 0:17:12.920 --> 0:17:18.560 the anybody therapy, which looks very promising and that could 0:17:18.600 --> 0:17:22.000 be now. That doesn't prevent you from getting it, but 0:17:22.160 --> 0:17:24.480 God forbid, if you get it, it's going to be 0:17:24.600 --> 0:17:28.800 very helpful in treating you. And and if you haven't 0:17:28.800 --> 0:17:31.679 had it, it might give you an immunity for a 0:17:31.680 --> 0:17:34.320 couple of months of the vaccine obviously is meant to 0:17:34.320 --> 0:17:39.720 have a longer duration as with any issue. I think 0:17:39.720 --> 0:17:43.280 the President made some good decisions. I think he made 0:17:43.320 --> 0:17:48.320 some unwise decisions. The good decision was jumping on it 0:17:48.400 --> 0:17:52.600 right away regarding flights in from China. I wish she 0:17:52.680 --> 0:17:55.520 had a different stand on mask because I said earlier, 0:17:55.920 --> 0:17:59.960 but mass to me a very critical part of the defense. Again, 0:18:00.000 --> 0:18:03.879 it's a pandemic, so I wish that he had embraced 0:18:04.280 --> 0:18:09.440 masks sooner and more enthusiastically. I would feel better if 0:18:09.440 --> 0:18:13.440 he had a little higher regard for the pharmaceutical industry. 0:18:13.440 --> 0:18:15.320 Not let me say this to you, David, and I 0:18:15.359 --> 0:18:17.960 want to warn you when I in a spirit offul disclosure, 0:18:18.520 --> 0:18:22.000 I am a very major investment in healthcare industry, in 0:18:22.119 --> 0:18:26.200 a number of companies, my biggest position in the industry 0:18:26.240 --> 0:18:30.840 being Eli Lily. I give the industry straight aged for 0:18:30.960 --> 0:18:33.840 pulling together in the last four months and doing what 0:18:33.960 --> 0:18:35.639 they could to help the country out of this more 0:18:35.720 --> 0:18:40.479 ask uh. I think the effort they're all making now 0:18:40.560 --> 0:18:44.760 on a vaccine, it's very good, and I think the motive, 0:18:44.880 --> 0:18:48.679 thank god, it is not their bottom line, but alleviate 0:18:49.080 --> 0:18:52.920 the tragedy that it's had on humanity around the world. 0:18:53.080 --> 0:18:56.240 And that's that's the name one of the redeeming features 0:18:56.280 --> 0:19:00.679 of the pharmaceuticals. So I would He's done a lot 0:19:00.720 --> 0:19:06.000 of great things, and I wish he had done his 0:19:06.359 --> 0:19:11.320 his passion for this hydrochloric quam for me. Uh, I'm not. 0:19:11.640 --> 0:19:14.360 I don't think it was merrited. I don't think it's 0:19:14.359 --> 0:19:17.200 I don't even like the drug that they thought it 0:19:17.240 --> 0:19:21.200 would be. It has purposes, it's been around a long time, 0:19:21.280 --> 0:19:24.360 and it's effective for different conditions that it might help 0:19:24.760 --> 0:19:29.679 a few people through the through the infection of COVID. 0:19:30.480 --> 0:19:33.480 But so what I'm saying is I liked some of 0:19:33.560 --> 0:19:38.680 the things he did. I like the fact that because 0:19:38.720 --> 0:19:40.600 they were they were arguing with each other in the 0:19:40.760 --> 0:19:43.440 last couple of weeks, that he issued an executive order 0:19:44.480 --> 0:19:49.840 to help out. I'm I'm thrilled with his compassion and 0:19:49.960 --> 0:19:53.760 a sensitivity to the health care delivery system we have 0:19:53.880 --> 0:19:56.600 in America. Because n y U we lost in one 0:19:56.680 --> 0:20:00.440 month million dollars. There were hospitals in New York that 0:20:00.560 --> 0:20:04.199 lost even more than we did. And thank god they 0:20:04.280 --> 0:20:10.760 got that first bill through and nominally it's alone. Uh, 0:20:11.280 --> 0:20:13.040 if it is a loan, we have to play it back. 0:20:13.440 --> 0:20:15.520 That means we lost five of a million because don't 0:20:15.520 --> 0:20:18.840 forget in that period of time we stopped doing everything 0:20:18.920 --> 0:20:23.600 except dealing with COVID patients. We will overwhelmed the number 0:20:23.600 --> 0:20:25.760 of people that came in, so we had nothing. We 0:20:25.840 --> 0:20:29.280 could do nothing but focus on dealing for the epidemic 0:20:29.359 --> 0:20:32.840 of the pandemic. So that's the best dancer I can 0:20:32.880 --> 0:20:35.440 give it. That was Ken Lane Gone Home Depot, co 0:20:35.600 --> 0:20:37.920 founder and chairman of the n y U Land Gone 0:20:38.240 --> 0:20:41.159 Medical Center. Coming up, we wrap up the week with 0:20:41.240 --> 0:20:45.120 our special contributor Larry Summers. This is Wall Street Week 0:20:45.640 --> 0:20:54.440 on Bloomberg. This is Bloomberg Wall Street Week with David 0:20:54.520 --> 0:20:57.800 Weston from Bloomberg Radio to take us through the economy 0:20:57.880 --> 0:21:00.480 under President Trump. We convene now our virtual round table 0:21:00.560 --> 0:21:03.800 contributors Larry Summers, who served under President Clinton as treasure 0:21:03.840 --> 0:21:06.440 Secretary and then as the Director of the National Economic 0:21:06.440 --> 0:21:09.359 Council under President Obama and Glenn Hubbard, who served as 0:21:09.440 --> 0:21:12.680 Chairman of the Council of Economic Advisors under President George W. Bush. 0:21:12.840 --> 0:21:15.639 So let me start since we're telling a candidate for 0:21:15.760 --> 0:21:17.920 President Trump on the Republican side, Glen, let me start 0:21:17.920 --> 0:21:20.880 with you. When you hear the plans that were being 0:21:20.920 --> 0:21:22.919 told for the second four years, will they get us 0:21:23.000 --> 0:21:27.040 that full employment? The President Trump that really promised. Well. 0:21:27.119 --> 0:21:29.920 I think conventions are obviously great theater. The President was 0:21:30.000 --> 0:21:32.360 pointing back to the pre COVID world, and he could 0:21:32.440 --> 0:21:35.600 point to some good successes. He did have success with 0:21:35.720 --> 0:21:40.120 the economy. Unemployment was very low, market valuations were very high. 0:21:40.520 --> 0:21:44.280 GDP growth was solid. I think he could well point 0:21:44.359 --> 0:21:47.440 to the Tax Cut and Jobs Act, and he could 0:21:47.480 --> 0:21:51.720 point to his regulatory agenda, having said that there's uncertainty 0:21:51.760 --> 0:21:55.440 about trade policy, and what missing was missing to me 0:21:55.840 --> 0:21:58.560 was a sense more of the future. He talks about 0:21:58.640 --> 0:22:02.000 make America great again, to see make America flourish again, 0:22:02.119 --> 0:22:05.160 what would it take to get every American to participate 0:22:05.359 --> 0:22:09.000 and prosper. I think their ideas there on the Republican side, 0:22:09.080 --> 0:22:10.960 but I wish more of them had been at the 0:22:11.000 --> 0:22:13.680 geop convention. So Larry, let me bring you in on 0:22:13.760 --> 0:22:16.080 the other side of this, as it were, is what 0:22:16.240 --> 0:22:19.119 you heard from foreign Vice President Biden going against the 0:22:19.119 --> 0:22:21.119 full employment either when he's talking about something a three 0:22:21.160 --> 0:22:23.359 point eight trillion dollars in new taxes. Is that what 0:22:23.440 --> 0:22:26.720 this economy needs right now? This economy needs a serious 0:22:26.800 --> 0:22:30.800 program of public investment. And some part of that public 0:22:31.119 --> 0:22:35.520 investment program will pay for itself. And some part of 0:22:35.600 --> 0:22:39.480 that public investment program is rational to finance with debt, 0:22:40.160 --> 0:22:43.600 but some part of that public investment program probably should 0:22:43.640 --> 0:22:48.080 be paid for with tax increases, especially when those taxes 0:22:48.160 --> 0:22:52.440 increases would make the economy fairer and would also make 0:22:52.480 --> 0:22:57.920 the economy more efficient. We don't serve any useful purpose 0:22:58.680 --> 0:23:03.119 by failing to elect billion dollars a year, most of 0:23:03.200 --> 0:23:06.200 it from the highest income people, because we don't do 0:23:06.320 --> 0:23:10.760 a competent job of enforcing the tax law. We could 0:23:10.800 --> 0:23:13.600 move towards fixing that and raise a trillion dollars over 0:23:13.640 --> 0:23:18.040 the next decade from high income people and close tax shelters. 0:23:18.119 --> 0:23:21.880 At the same time, we've got a variety of loopholes 0:23:21.960 --> 0:23:27.280 and special breaks that divert resources into inefficient uses and 0:23:27.760 --> 0:23:32.080 cost the government a ton of revenue. The famous carried 0:23:32.119 --> 0:23:38.080 interest provision is one example. UH. In that regard, those 0:23:38.119 --> 0:23:43.480 are candidates for rational tax reform that at the same 0:23:43.600 --> 0:23:48.760 time would finance government doing what it UH needs to do. 0:23:49.560 --> 0:23:53.040 I'm for that. I think there are people who have 0:23:53.240 --> 0:23:56.920 the idea that, caused by envy, we should have tax 0:23:57.040 --> 0:24:00.320 increases in order to tear down the rich. I think 0:24:00.359 --> 0:24:03.119 that would be a mistake. There are people who have 0:24:03.280 --> 0:24:06.080 the idea that we should have tax increases for the 0:24:06.200 --> 0:24:09.719 sake of having tax increases, or just as a device 0:24:09.920 --> 0:24:14.440 for reducing the deficit. I think that's a mistake. But 0:24:14.960 --> 0:24:18.560 should we pay for some portion over time of the 0:24:19.560 --> 0:24:24.320 huge public investment we need? Yes, I think uh we should. 0:24:24.440 --> 0:24:27.120 And I think that's the spirit in which Vice President 0:24:27.200 --> 0:24:31.639 Biden has talked about tax increases. And so Glenn, what 0:24:31.680 --> 0:24:33.399 about it year from Larry that it's a matter of 0:24:33.440 --> 0:24:35.800 public investment, which really is what we need right now. 0:24:36.240 --> 0:24:38.240 On the Republican side, for President Trump, we said let's 0:24:38.240 --> 0:24:40.920 cut the cattital gains tax. Well, private investment is that 0:24:41.119 --> 0:24:43.720 the most efficient way really of getting investment? Where is 0:24:43.840 --> 0:24:47.120 Larry right? Well? I think public investment is very important. 0:24:47.200 --> 0:24:50.440 We need a strong infrastructure program, not just physical but 0:24:50.600 --> 0:24:53.840 also technological. We're seeing that play out before our very eyes. 0:24:54.359 --> 0:24:57.600 It's hard to disagree with Larry on issues like avoiding 0:24:57.880 --> 0:25:00.760 tax avoidance. Of course we should do that. Having said that, 0:25:01.400 --> 0:25:05.040