WEBVTT - Bloomberg Wall Street Week: Murphy, Barra, Summers 0:00:00.240 --> 0:00:05.000 This is Bloomberg Wall Street Week. Market shruggle, higher consumer prices. 0:00:05.040 --> 0:00:07.400 The economy is in the process of rebounding. Will the 0:00:07.400 --> 0:00:10.479 futteral reserve have its own digital currency? The financial stories 0:00:10.520 --> 0:00:12.879 that cheap hard work. Many people think the eels are 0:00:12.880 --> 0:00:15.080 just going to keep marching up. We have more spending 0:00:15.120 --> 0:00:17.200 coming out of Congress. One of the big questions I 0:00:17.200 --> 0:00:19.880 think on investor's minds inflations through the eyes of the 0:00:19.880 --> 0:00:23.560 most influential voices. Larry Summer is the former Treasury Secretary 0:00:23.640 --> 0:00:27.240 Bryan Wynahan a backup America, Will Smart, CEO of Charlie Sharp. 0:00:27.360 --> 0:00:31.560 Bloomberg wool Street Week with David Weston from Bloomberg Radio. 0:00:32.360 --> 0:00:36.800 Be careful what you wish for the economy rebounds, earnings beat, 0:00:37.120 --> 0:00:39.680 but now we have to worry about all the pressures 0:00:39.680 --> 0:00:42.720 that come with that. This is Bloomberg Wall Street Week. 0:00:42.880 --> 0:00:46.240 I'm David Weston. This week we got more signals that 0:00:46.320 --> 0:00:50.240 the economy is roaring back from indications of GDP growth 0:00:50.320 --> 0:00:53.280 over ten percent for the quarter and maybe eight percent 0:00:53.360 --> 0:00:58.400 for the year, expecting growth to be at a better 0:00:58.520 --> 0:01:03.360 rate than what we have seen so far, and earnings 0:01:03.400 --> 0:01:05.959 that were so good that they raised questions about the 0:01:05.959 --> 0:01:10.240 analysts who underestimated them, driven in one way or another 0:01:10.480 --> 0:01:14.440 by the authorities opening economy back up. Broadway tickets go 0:01:14.480 --> 0:01:18.840 and sale today at capacity for theaters. The show's open 0:01:18.920 --> 0:01:22.880 September four teeth. But then the jobs numbers for April 0:01:22.959 --> 0:01:26.959 came in way below what anyone was expecting. Under normal 0:01:27.000 --> 0:01:29.280 circumstances that would be a great month. We still have 0:01:29.319 --> 0:01:31.400 a steep, steep clime. We still have ways to go, 0:01:31.880 --> 0:01:34.639 which may be a blip, but there were other storm 0:01:34.680 --> 0:01:39.280 clouds on the horizon with supply chains overwhelmed. We're having 0:01:39.319 --> 0:01:42.720 regular conversations with the administration and members of Congress to 0:01:42.800 --> 0:01:47.560 find the right solution. Growing fear of increased taxes and 0:01:47.600 --> 0:01:51.040 the ever present fear of inflation, made worse by Treasury 0:01:51.080 --> 0:01:55.160 Secretary yelling suggesting we might just see higher interest rates. 0:01:55.600 --> 0:01:58.960 We've been through a year long health and economic crisis, 0:01:59.000 --> 0:02:02.520 putting pressures on our governments like few have ever seen. 0:02:03.160 --> 0:02:05.560 But things appear to be coming back, and now we 0:02:05.640 --> 0:02:07.360 have to think about how we're gonna pay the bills. 0:02:07.840 --> 0:02:10.040 New Jersey is one of the states hit hardest by 0:02:10.040 --> 0:02:12.679 the pandemic and already has one of the highest tax 0:02:12.760 --> 0:02:16.080 rates in the country, So we asked its governor Phil Murphy, 0:02:16.400 --> 0:02:20.360 what paying those bills may mean for taxpayers. Listen, we 0:02:20.480 --> 0:02:23.639 we presented a budget six weeks ago that had zero 0:02:23.880 --> 0:02:26.959 increases in taxes and fees. We want to protect the 0:02:27.000 --> 0:02:30.959 middle class at every turn. We are the quintessential middle 0:02:31.040 --> 0:02:34.320 class state, UH, and we want to regain that mantle. 0:02:34.680 --> 0:02:37.640 We believe we're America's number one state to raise a family, 0:02:37.960 --> 0:02:42.040 and that includes making sure that the value proposition works 0:02:42.080 --> 0:02:45.880 for families, particularly young families who are considering moving here 0:02:45.960 --> 0:02:49.280 or staying here. I was gratified to see the census 0:02:49.360 --> 0:02:52.400 numbers last week. We were the number one state in 0:02:52.440 --> 0:02:55.480 America in terms of the amount by which we exceeded 0:02:55.800 --> 0:02:58.600 the estimate that was put out last year. That's for 0:02:58.639 --> 0:03:01.639 a reason people are coming here to raise their family. 0:03:01.680 --> 0:03:04.160 We've got to make sure that we continue to have 0:03:04.160 --> 0:03:07.280 the number one school's quality of life, great transit, but 0:03:07.400 --> 0:03:10.360 also that the value proposition works in the senses. It 0:03:10.400 --> 0:03:14.560 just came out there was a migration towards Florida, towards Texas, 0:03:14.560 --> 0:03:17.600 towards some lower taxing states. How conscious are you of 0:03:17.639 --> 0:03:20.240 that as you set your budgets? How concerned are you 0:03:20.440 --> 0:03:22.840 that New Jersey could really lose some of the more affluent, 0:03:22.840 --> 0:03:26.560 in particular to places like Florida. Well, listen, New Jersey's 0:03:26.600 --> 0:03:31.880 population grew over five percent over the course of the decade. Again, 0:03:32.440 --> 0:03:37.840 the space we occupy is that that moniker, which we 0:03:37.880 --> 0:03:41.160 don't take lightly. America's number one state to raise a family. 0:03:41.240 --> 0:03:44.480 We have the number one public education system in America, 0:03:44.880 --> 0:03:48.760 top handful of healthcare system, a location second to none. 0:03:49.160 --> 0:03:54.440 We're fixing transit um. The quality of life is exceedingly high. 0:03:54.880 --> 0:03:58.000 That's our value proposition. Some states come at you so listen, 0:03:58.200 --> 0:04:00.240 we want you to move here because we have low 0:04:00.280 --> 0:04:04.920 taxes um. That's that's there. That may be their value proposition. 0:04:05.320 --> 0:04:08.560 Ours is a much more holistic and broader one. Governor. 0:04:08.600 --> 0:04:12.280 You've identified specifically sixteen municipalities in New Jersey of over 0:04:12.360 --> 0:04:15.720 ten thousand people that you're below, led by a New 0:04:15.760 --> 0:04:18.520 Brunswick city. As you look at those, it looks to me, 0:04:18.600 --> 0:04:19.960 you know the states so much better than I do, 0:04:20.000 --> 0:04:21.359 But it looks to me like they tend to be 0:04:21.480 --> 0:04:25.039 lower income and yes, minorities. What are the specific ways 0:04:25.080 --> 0:04:28.719 that you reach those populations. Yeah, you're absolutely right. I 0:04:28.760 --> 0:04:30.800 don't know that every one of the communities are our 0:04:30.880 --> 0:04:33.920 majority communities of color, but they are largely and we 0:04:33.960 --> 0:04:37.040 didn't put that list up to name and shame. This 0:04:37.120 --> 0:04:39.400 is just to give people a sense of what the 0:04:39.440 --> 0:04:43.320 remaining challenges. We have too many people right now declaring victory. 0:04:43.320 --> 0:04:45.240 Our numbers have gotten a lot better, but we're not 0:04:45.279 --> 0:04:48.000 there yet. And so it's a variety of things. It's 0:04:48.120 --> 0:04:53.760 role models getting vaccinated, it's mobile vans, it's houses of worship. UH, 0:04:53.800 --> 0:04:59.280 it's it's getting to homebound individuals, homeless folks. UH, it's 0:04:59.320 --> 0:05:05.240 a whole of initiatives, federally qualified centers. There's no one 0:05:05.320 --> 0:05:09.520 magic wand UH. As it relates to equity, we are 0:05:09.560 --> 0:05:11.919 still on a journey. As we say often, the pandemic 0:05:12.000 --> 0:05:15.480 didn't create the inequities, it's laid them there in Our 0:05:15.560 --> 0:05:18.520 vaccine program is a good example. Uh. It is a 0:05:18.600 --> 0:05:22.000 work in progress. Governors, you know, well, there's a push 0:05:22.080 --> 0:05:23.920 on to get people to go back into their offices. 0:05:23.960 --> 0:05:26.279 We had golden sacks just say we want people back 0:05:26.720 --> 0:05:29.840 by a date. Certain as that happens, that's gonna put 0:05:29.880 --> 0:05:32.600 pressure on some of the transportation systems from New Jersey's 0:05:32.600 --> 0:05:36.120 people commute into Manhattan right now, as I understand it, 0:05:36.240 --> 0:05:39.680 the public transit is really being avoided. Your down something 0:05:39.720 --> 0:05:43.280 like sevent in your capacity. How do you respond to that? 0:05:43.360 --> 0:05:46.880 First of all, financially, you can't run those transit authorities 0:05:46.960 --> 0:05:50.880 very long down capacity, can you? Financially? There's a number 0:05:50.880 --> 0:05:54.200 of questions that are Number one, the federal help, whether 0:05:54.240 --> 0:05:59.360 it's prior coronavirus relief funds or American Rescue Plan money, 0:05:59.720 --> 0:06:03.880 or or perhaps in this debated right now infrastructure plan. 0:06:04.360 --> 0:06:08.600 We desperately need that help. Secondly, and J transit UH, 0:06:08.839 --> 0:06:11.240 when we got into office, it was broken. It's fixed, 0:06:11.320 --> 0:06:14.240 and we've used the pandemic to fix it even faster. 0:06:14.440 --> 0:06:17.320 So I think folks are going to find a clean, safe, 0:06:17.360 --> 0:06:21.520 reliable system. Thirdly, you didn't ask it, but one of 0:06:21.520 --> 0:06:24.840 the ways we're gonna get to vaccination is to get 0:06:24.839 --> 0:06:28.159 our business community UH to be proactive, just as we 0:06:28.200 --> 0:06:29.680 are at the state level. In fact, we had a 0:06:29.720 --> 0:06:32.760 good call with the Chamber of Commerce on this topic 0:06:32.800 --> 0:06:37.040 this morning, getting businesses to be just as forward leaning 0:06:37.080 --> 0:06:40.039 into this as we are being as at the state level. 0:06:40.240 --> 0:06:43.800 I think the transit commuting reality will be slow to recover, 0:06:44.640 --> 0:06:47.680 but I think when folks come back and actually participate, 0:06:48.360 --> 0:06:51.039 it will be a positive experience. That was New Jersey 0:06:51.080 --> 0:06:54.719 Governor Phil Murphy coming up, Big tech has more to 0:06:54.760 --> 0:06:58.240 worry about than just inflation and supply chains, as the 0:06:58.279 --> 0:07:02.479 antitrust challenges just keep fond coming this time for Apple. 0:07:03.000 --> 0:07:09.600 That's next on Wall Street Week on Boombo. This is 0:07:09.640 --> 0:07:14.040 Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 0:07:16.960 --> 0:07:20.400 Apple's ten year relationship with Epic Games is unraveling in 0:07:20.520 --> 0:07:23.320 court this week. It's all about Epics claim that Apple 0:07:23.480 --> 0:07:25.920 is using its market power to charge it too much 0:07:26.040 --> 0:07:29.040 for selling its games and Apple's claim that Epic just 0:07:29.080 --> 0:07:32.520 doesn't want to play by the rules. Apple says, if 0:07:32.560 --> 0:07:34.720 you build an app for our platform, first of all, 0:07:34.800 --> 0:07:37.480 you can only distribute it through their store. They don't 0:07:37.480 --> 0:07:41.440 allow all competing stores, and that's totally un American and uncompetitive. 0:07:41.760 --> 0:07:45.360 In two thousand eleven, Tim Cook used Epics game Infinity 0:07:45.400 --> 0:07:49.160 Blade two to show off Apple's new and powerful iPhone 0:07:49.240 --> 0:07:53.480 for s, but Apple's relationship with the GameMaker went even deeper. 0:07:53.840 --> 0:07:56.560 In legal documents, Apple said it's spent more than one 0:07:56.760 --> 0:08:00.640 million dollars marketing games for Epic and even added round 0:08:00.720 --> 0:08:03.960 the clock tech support for the GameMaker. The app store 0:08:04.160 --> 0:08:08.280 isn't just a store. It's like a studio, stock with canvases, brushes, 0:08:08.320 --> 0:08:11.760 and paint the tools that artists need to create their works, 0:08:12.240 --> 0:08:14.600 and it's a gallery where they can display and sell 0:08:14.680 --> 0:08:19.200 their creations. The relationship began souring in two seventeen with 0:08:19.280 --> 0:08:23.320 the release of epics blockbuster hit Fortnite. After that, Epics 0:08:23.360 --> 0:08:27.600 CEO and founder Tim Sweeney began publicly criticizing Apple's payment system, 0:08:27.880 --> 0:08:30.240 in which the company took as much as thirty of 0:08:30.240 --> 0:08:33.760 sales and blocked many developers from using other payment methods 0:08:33.960 --> 0:08:37.559 to avoid the fee. You can't have a tech monopoly 0:08:38.480 --> 0:08:43.600 dominating all all interactions between consumers and businesses on a 0:08:43.640 --> 0:08:46.520 scale of billions of users. The final blow to the 0:08:46.600 --> 0:08:49.640 relationship came when Apple removed Fortnite from its app store 0:08:49.720 --> 0:08:53.680 last year after Epic activated its own payment system. Analytics 0:08:53.720 --> 0:08:57.000 firm Censored Tower estimates the app store generated twenty two 0:08:57.080 --> 0:08:59.640 billion dollars in commissions last year for Apple from the 0:08:59.679 --> 0:09:03.480 seven two billion dollars users spent on their devices. Who 0:09:03.480 --> 0:09:06.280 are absolutely going to see some form of legislation or 0:09:06.360 --> 0:09:09.160 additional scrutinary, So in the case of Apple, it'll be 0:09:09.280 --> 0:09:12.800 probably regulating the App store Apples and trust problems aren't 0:09:12.920 --> 0:09:15.959 just in the United States. EU regulators have accused Apple 0:09:16.000 --> 0:09:19.640 of violating competition laws by imposing unfair rules and fees 0:09:19.720 --> 0:09:22.480 on music streaming services that are on the App Store. 0:09:23.120 --> 0:09:26.960 We need any trust regulation to return to what it 0:09:27.080 --> 0:09:30.559 used to be when we protected markets so that no 0:09:30.640 --> 0:09:34.679 one could dominate and block new entrants, no one could 0:09:34.720 --> 0:09:39.920 compete against people operating a marketplace. And so this week 0:09:40.040 --> 0:09:42.920 we saw the start of a three week courtroom battle, 0:09:43.240 --> 0:09:46.760 complete with the Apple and Epic CEOs themselves taking the stand, 0:09:46.840 --> 0:09:49.920 along with a whole lot of experts and no less 0:09:49.920 --> 0:09:52.600 than the fate at the app store hanging in the balance. 0:09:53.080 --> 0:09:56.240 But former Antitrust Division had Bill Bear and blue Berg 0:09:56.280 --> 0:10:00.320 intelligence senior and a trust litigation analyst, Jennifer Ree. It's 0:10:00.320 --> 0:10:04.520 an uphill battle for Epics David to beat Apple's goliath. 0:10:05.280 --> 0:10:10.280 They need to prove first that Apple is a monopolist 0:10:10.920 --> 0:10:14.600 in connection with its App store and its requirement that 0:10:15.760 --> 0:10:20.280 you download through the app store for the iOS devices. 0:10:20.400 --> 0:10:23.040 And then they need to prove that the requirement that 0:10:23.240 --> 0:10:26.280 you go through the app store actually is an anti 0:10:26.360 --> 0:10:30.520 competitive requirement as opposed to what Apple says, which is 0:10:30.559 --> 0:10:34.960 something that is necessary to protect security and privacy of 0:10:35.160 --> 0:10:40.480 its ioas usage. Jen, can you ever monopolize your own product? 0:10:40.679 --> 0:10:42.959 I mean that's in a sense what the claim is here, right, Yeah, 0:10:42.960 --> 0:10:45.440 it's iOS, we invented it, we have it, so yes, 0:10:45.440 --> 0:10:47.360 we have all of it, you know, and this is 0:10:47.400 --> 0:10:49.800 part of their uphill battle. I mean, you can, but 0:10:49.880 --> 0:10:52.800 there are very very few court cases where that actually 0:10:52.880 --> 0:10:55.760 was considered the an appropriate relevant market. It just it 0:10:56.000 --> 0:10:58.520 rarely is, and that's going to be very difficult for them. 0:10:58.679 --> 0:11:00.800 And you can see that because in the again beginning 0:11:00.800 --> 0:11:04.080 of the trial, epic is really hammered on competition, uh, 0:11:04.559 --> 0:11:07.000 and the lack of competition and the reason that all 0:11:07.000 --> 0:11:10.880 the other substitutes are different in our true substitutes. Bill, 0:11:10.920 --> 0:11:12.560 how much of this you think might turn in the 0:11:12.760 --> 0:11:15.240 end on Apple's claim as I understand that we need 0:11:15.280 --> 0:11:17.480 to do it this way for security purposes, there's a 0:11:17.520 --> 0:11:20.280 really legitimate business justification even if you find we have 0:11:20.320 --> 0:11:23.520 an apply power within our system. I think that says 0:11:23.559 --> 0:11:28.160 that exactly right, because being a monopolist is only one 0:11:28.280 --> 0:11:32.040 step in the process of finding in any trust violations, 0:11:32.679 --> 0:11:37.880 you need to show to show that requirements that that 0:11:38.440 --> 0:11:44.360 Apple is imposing on on app developments are unreasonable for 0:11:44.480 --> 0:11:51.160 any competitor. Really served no legitimate um justification. It does 0:11:51.200 --> 0:11:53.640 strike me, jen that quite a few what we would 0:11:53.640 --> 0:11:56.000 think of a tech companies have weighed in on the 0:11:56.120 --> 0:11:59.720 side actually of Epic Games. Maybe the David in this battle, uh, 0:12:00.040 --> 0:12:03.120 including Facebook and Microsoft is saying, we find it really 0:12:03.120 --> 0:12:06.800 difficult as well. We've tried to get in Spotify. Would 0:12:06.840 --> 0:12:09.360 that have any effect on the judge as a practical matter? 0:12:10.520 --> 0:12:12.840 You know, I think first of all, you know, in 0:12:12.880 --> 0:12:14.560 my mind, you have to think about the fact that 0:12:14.600 --> 0:12:17.000 Microsoft is a big competitor to Apple. You know, in 0:12:17.040 --> 0:12:19.560 many ways they're they both they compete in the sale 0:12:19.559 --> 0:12:22.880 of computers and they have opposing you know, operating systems. 0:12:22.920 --> 0:12:26.120 So you know, Microsoft has something to benefit if Epic 0:12:26.160 --> 0:12:29.280 wins this trial. And what Microsoft and some of these 0:12:29.280 --> 0:12:33.640 other tech companies are providing is really anecdotal evidence where 0:12:33.679 --> 0:12:36.440 they do or don't compete, and the difficulties that they've 0:12:36.480 --> 0:12:39.440 also had in negotiating with Apple to get their own 0:12:39.480 --> 0:12:42.000 game stores or their own game streaming into the Apple 0:12:42.240 --> 0:12:45.440 App Store. So it's anecdotal evidence. You know, at the 0:12:45.520 --> 0:12:48.120 end of the day, I think it has some influence, 0:12:48.200 --> 0:12:51.840 but but not significant. Bill, give us a sense of 0:12:51.840 --> 0:12:54.040 what the expert witnesses are gonna be testifying to, because, 0:12:54.040 --> 0:12:57.480 as I understand, in most antitrust cases, really the economics 0:12:57.600 --> 0:12:59.560 driving off a lot of it. The expert witnesses on 0:12:59.600 --> 0:13:02.240 either side and the judge is really gonna put a 0:13:02.240 --> 0:13:04.000 lot of emphasis on that. What are they gonna be 0:13:04.000 --> 0:13:08.680 testifying to. Why they're going to have this uh disputed 0:13:08.840 --> 0:13:13.360 visions of what the market looks like? UM is UH 0:13:13.720 --> 0:13:19.560 is Apple by virtue of UH controlling what apps are 0:13:19.720 --> 0:13:26.240 downloaded to iOS users, iPad iPhones? Uh? Is that actually 0:13:26.320 --> 0:13:29.840 just one way of competing in US broader market where 0:13:29.880 --> 0:13:33.400 there are lots of ways of getting apps to other devices, 0:13:33.400 --> 0:13:36.359 there are lots of way for gamers to play games. 0:13:36.800 --> 0:13:39.440 Whereas the epic view is going to be no, no, 0:13:39.559 --> 0:13:46.000 this is a restrictive, narrow market, UH, where Apple is 0:13:46.080 --> 0:13:49.480 able to control the environment for anybody who uses this 0:13:49.600 --> 0:13:54.479 DIOS system and basically ties the iPad and the iPhone 0:13:55.000 --> 0:13:59.959 two downloading software at at commission rate. So they saw 0:14:00.080 --> 0:14:07.319 for developers only through only through Apple's platforms, So they 0:14:07.360 --> 0:14:12.880 will present economic governance that will suggest Apple has pricing 0:14:12.920 --> 0:14:16.880 power that is suggested from an appoly power. Apple's econosts 0:14:16.880 --> 0:14:18.880 will talk about all the other ways in which people 0:14:18.880 --> 0:14:23.160 can play games, or download other apps, or use your 0:14:23.280 --> 0:14:28.040 PC or your your map to to compete, thanks to 0:14:28.080 --> 0:14:30.960 Bill Bear of the Brookings Institution and Jennifer Ree of 0:14:31.040 --> 0:14:34.720 Bloomberg Intelligence. Coming up, just when the auto market wants 0:14:34.760 --> 0:14:38.200 to come roaring back, the lack of microchips reins it in. 0:14:38.920 --> 0:14:41.800 We hear from GM CEO Mary bar On what she 0:14:42.000 --> 0:14:45.520 and her team are doing to manage the problem. That's 0:14:45.560 --> 0:14:59.920 next on Wall Street Week on Bloomberg. This is bloom 0:15:00.280 --> 0:15:05.000 Wall Street Week with David Weston from Bloomberg Radio. GM 0:15:05.040 --> 0:15:08.600 announced its earnings this week and they were strong, very strong, 0:15:08.920 --> 0:15:12.240 as the company sees demand for new cars come back 0:15:12.320 --> 0:15:16.280 stronger and faster than anyone anticipated a year ago. But 0:15:16.440 --> 0:15:19.840 there was a catch. A combination of a surging economy 0:15:19.840 --> 0:15:22.920 and a huge uptick in demand for consumer electronics has 0:15:23.000 --> 0:15:26.440 led to a dire shortage of microchips. And it turns 0:15:26.440 --> 0:15:28.720 out you can't make a car these days without some 0:15:28.760 --> 0:15:32.640 pretty sophisticated computers built right into those cars. We asked 0:15:32.640 --> 0:15:36.000 GM Chairman CEO Mary Barra, how she's managing a problem 0:15:36.040 --> 0:15:39.400 that will caused her up to two billion dollars this year. 0:15:39.600 --> 0:15:42.560 There's not a lot of transparency between the different automakers 0:15:42.600 --> 0:15:45.120 of what's happening. We're focused on GM and I think 0:15:45.440 --> 0:15:48.000 what's been incredible is the work that we're doing with 0:15:48.040 --> 0:15:51.520 our purchasing group, our engineering group, are manufacturing group in 0:15:51.560 --> 0:15:54.520 sales and marketing and working with suppliers. You know, we've 0:15:54.520 --> 0:15:57.480 been working to build strong relationship with our suppliers for many, 0:15:57.480 --> 0:16:00.400 many years now, and there's just a t that is 0:16:00.440 --> 0:16:02.800 looking understanding what chips are we going to have access to, 0:16:03.200 --> 0:16:05.800 how do we allocate those to our highest demand and 0:16:06.000 --> 0:16:09.160 and products that we have limited or no ability to 0:16:09.240 --> 0:16:12.400 recover because there's just such strong demand. We run those 0:16:12.760 --> 0:16:17.400 manufacturing operations around the clock and they're they're just being 0:16:17.680 --> 0:16:21.120 creative and doing what engineers do of problem solving and 0:16:21.120 --> 0:16:24.400 and in some cases re engineering to get the chips 0:16:24.440 --> 0:16:28.360 to the right products and to just um find every 0:16:28.360 --> 0:16:30.960 opportunity we can to build a car, trucker crossover and 0:16:31.000 --> 0:16:33.040 get it to the customer. So it's a mixed question 0:16:33.080 --> 0:16:35.240 not just of the vehicles you sell, but also where 0:16:35.280 --> 0:16:37.160 you direct your chips. It sounds like you want to 0:16:37.200 --> 0:16:39.600 direct it to the ones that really are the most important. 0:16:40.040 --> 0:16:42.040 Are you getting more chips? Do you think than you 0:16:42.080 --> 0:16:45.200 would have expected, because if you're purchasing department, well, again, 0:16:45.280 --> 0:16:47.360 there's not a lot of transparent to say more than 0:16:47.880 --> 0:16:51.160 you know, we were very clear last year of what 0:16:51.200 --> 0:16:53.080 we thought the demand was going to be this year 0:16:53.120 --> 0:16:56.280 and the chips that we had ordered, and so you know, 0:16:56.280 --> 0:16:58.440 we're continuing to work with the supply base on that 0:16:58.720 --> 0:17:01.280 and UH again, but it's I think it's looking for 0:17:01.280 --> 0:17:06.080 every opportunity and managing it centrally and also working hand 0:17:06.119 --> 0:17:09.000 in hand with our j V and China, so across 0:17:09.040 --> 0:17:12.199 the board, we are just really being I think the 0:17:12.200 --> 0:17:14.639 team is being really scrappy and finding ways that we 0:17:14.680 --> 0:17:17.560 can build the vehicles, not only full size trucks and SUVs, 0:17:17.600 --> 0:17:20.239 but also our electric vehicle programs. And I think it's 0:17:20.280 --> 0:17:22.520 important to note that even with the challenges of the 0:17:22.520 --> 0:17:27.280 semiconductors UH shortage, there is no impact on our electric vehicles, 0:17:27.359 --> 0:17:30.040 on our autonomous vehicles and the growth initiatives that we've 0:17:30.080 --> 0:17:32.040 been talking about this first quarter. That was one of 0:17:32.080 --> 0:17:34.280 the questions I had, both for the Hummer that's coming 0:17:34.280 --> 0:17:36.320 out later this year and then the lyric which is 0:17:36.320 --> 0:17:38.800 coming at sometimes the first happened next year. Is there 0:17:38.800 --> 0:17:41.760 going to be any delay because of the chip problem? 0:17:41.800 --> 0:17:44.320 Absolutely not, And I can tell you those vehicle programs 0:17:44.320 --> 0:17:47.479 are on track, and uh, I'm really excited to have 0:17:47.880 --> 0:17:50.119 customers get in those vehicles and drive them because I 0:17:50.160 --> 0:17:52.680 think they're going to be amazed. This problem isn't going 0:17:52.680 --> 0:17:55.160 away in the sense that as you go forward, you're 0:17:55.160 --> 0:17:56.480 gonna make more and more cars, they are going to 0:17:56.520 --> 0:17:59.240 require more and more chips. What is the longer term 0:17:59.280 --> 0:18:01.600 solution to this so we don't have this sort of 0:18:01.600 --> 0:18:03.480 problem you have this year? Well, I think we are 0:18:03.480 --> 0:18:05.760 going to see recovery. We think Q two will be 0:18:06.160 --> 0:18:08.760 the weakest for the year. We'll see some recovery, recovery 0:18:08.800 --> 0:18:11.440 in Q three, Q four. Uh, And we're working on 0:18:11.560 --> 0:18:13.600 a lot of long term strategies. I don't have anything 0:18:13.640 --> 0:18:16.240 to share right now, but there's a a you know, 0:18:16.280 --> 0:18:19.239 a whole um menu of things that we're working on, 0:18:19.440 --> 0:18:23.040 processes that we're changing. Um. So more to come later 0:18:23.040 --> 0:18:24.640 in the year of how we'll make sure we're never 0:18:24.680 --> 0:18:26.800 in this situation again. But believe me, we have a 0:18:26.840 --> 0:18:29.920 dedicated team working on that as well. When it comes 0:18:29.920 --> 0:18:32.600 to batteries, you've sort of vertically integrated, as it were, 0:18:32.640 --> 0:18:34.879 where the joint venture where you're making your own batteries. 0:18:35.080 --> 0:18:37.200 Is there something like that perhaps that would make sense 0:18:37.200 --> 0:18:40.119 for GM. You know, I'm not going to take anything 0:18:40.160 --> 0:18:42.400 off the table. We're going to look at what what 0:18:42.440 --> 0:18:44.320 we can do to make sure that we have the 0:18:44.440 --> 0:18:47.480 right number of automotive grade chips UH and that we 0:18:47.640 --> 0:18:50.200 it it doesn't constrain our growth because we see huge 0:18:50.200 --> 0:18:53.000 opportunity not only with the product portfolio we have today, 0:18:53.280 --> 0:18:56.119 but with the strong electric vehicle products that we have coming. 0:18:56.640 --> 0:18:59.040 We hear some in Washington, both the Commerce Secretary and 0:18:59.080 --> 0:19:01.960 also I talked to one of your Michigan representatives, Haley Stevens, 0:19:02.000 --> 0:19:04.400 who suggested perhaps there needs to be some co investment 0:19:04.440 --> 0:19:06.760 from the government as well as the private sector in 0:19:06.920 --> 0:19:09.520 chip production. Does that make sense from your point of view? 0:19:10.720 --> 0:19:14.840 I think making sure we have a secure supply chain 0:19:15.119 --> 0:19:17.399 um for the growth that I think we're going to 0:19:17.400 --> 0:19:18.840 see it. I think it's something that we all have 0:19:18.880 --> 0:19:21.879 to work together on, and we're having regular conversations with 0:19:21.920 --> 0:19:24.760 the administration and members of Congress to find the right 0:19:24.840 --> 0:19:28.440 solution and we'll continue to do that. In your presentation today, 0:19:28.480 --> 0:19:32.040 General Motors really lays out a fairly robust program to 0:19:32.119 --> 0:19:34.199 really go to electric vehicles and to really deal with 0:19:34.200 --> 0:19:37.160 greenhouse gases over the longer term. You have very specific 0:19:37.200 --> 0:19:39.560 targets you're setting out there. How do you hope to 0:19:39.600 --> 0:19:43.119 achieve those? Well, I think it's making sure there's a 0:19:43.200 --> 0:19:46.240 whole ecosystem that when a customer looks at can I 0:19:46.280 --> 0:19:48.320 buy an electric vehicle, they say, I'm going to have 0:19:48.359 --> 0:19:50.960 a better experience when I buy an electric vehicle. It's 0:19:50.960 --> 0:19:52.720 going to be a beautiful vehicle. It's going to be 0:19:52.720 --> 0:19:54.600 in this segment that I want to purchase because we 0:19:54.640 --> 0:19:57.520 can't you know, person if they want an suv or 0:19:57.560 --> 0:19:59.840 a crossover, they're not going to buy a sedan. It's 0:20:00.040 --> 0:20:02.439 to meet them in the market where they want. But 0:20:02.480 --> 0:20:05.360 then it's also making sure there's a robust charging infrastructure, 0:20:05.400 --> 0:20:07.240 and we're working on that as well, and that will 0:20:07.280 --> 0:20:09.840 be not only what we're doing. For instance, we're putting 0:20:10.760 --> 0:20:15.400 charging in our workplaces, but also working with communities and 0:20:15.440 --> 0:20:17.320 then working with all the startups that are in this 0:20:17.359 --> 0:20:20.800 business connecting those We just made an announcement that we 0:20:20.920 --> 0:20:23.919 have now We're going to provide access to sixty chargers 0:20:23.960 --> 0:20:29.120 across across the country to really give confidence to customers 0:20:29.160 --> 0:20:30.760 as they buy an e V and if even if 0:20:30.760 --> 0:20:33.440 it's their only vehicle, that they're going to have a 0:20:33.640 --> 0:20:36.720 robust charging infrastructure. And I think all those things combine, 0:20:37.040 --> 0:20:40.399 you know, beautiful vehicles, meets their needs, the right range, 0:20:40.440 --> 0:20:43.199 and then charging available, customers are going to move to 0:20:43.240 --> 0:20:46.639 e vs. That was GM chairman and CEO Mary Borrow. 0:20:47.440 --> 0:20:49.479 Coming up, we wrap up the week with our special 0:20:49.520 --> 0:20:53.120 contributor Larry Summers of Harvard. This is Wall Street Week 0:20:53.440 --> 0:21:02.320 on Bloomberg. This is Bloomberg Wall Street Week with David 0:21:02.359 --> 0:21:06.320 Weston from Bloomberg Radio. We welcome now our special Wall 0:21:06.359 --> 0:21:09.320 Street Week contributor, Larry Summers of Harvard. Larry, welcome, is 0:21:09.359 --> 0:21:11.240 great to see you. So, first of all, start with 0:21:11.240 --> 0:21:13.800 these jobs numbers. They were so surprising to so many people. 0:21:14.040 --> 0:21:16.800 Two sixty six thousand instead of one million. Some people 0:21:16.840 --> 0:21:19.399 are we two million? Did they tell us anything beyond 0:21:19.480 --> 0:21:22.520 this one data point? I think it's hard to interpret. 0:21:22.800 --> 0:21:24.879 My senses that it's got a lot to do with 0:21:24.920 --> 0:21:29.440 the emerging labor shortages that we're hearing about almost everywhere 0:21:29.880 --> 0:21:35.160 that managers in many different places are talking about and 0:21:35.240 --> 0:21:39.000 worrying about it, and if people can't find workers, employment 0:21:39.280 --> 0:21:43.719 can employment's got to go up. Evidence for that is 0:21:43.840 --> 0:21:47.880 that we really had an extremely strong average hourly earnings 0:21:47.920 --> 0:21:50.880 print this month. Now it's only one month, and they 0:21:50.880 --> 0:21:54.119 were down UH last month, but they were up at 0:21:54.119 --> 0:21:59.240 a nine annual rate UH this month. And probably the 0:21:59.280 --> 0:22:02.639 figure was our officially held down by the fact that 0:22:02.720 --> 0:22:05.720 most of the new jobs were in low wage sectors 0:22:05.760 --> 0:22:10.359 like restaurants. So I think what we're seeing is more 0:22:10.440 --> 0:22:15.360 and more evidence of labor shortage, and maybe that will 0:22:15.400 --> 0:22:18.200 prove to be transitory. Maybe it will turn out that 0:22:18.640 --> 0:22:22.360 as people go back to school um more and more 0:22:22.400 --> 0:22:25.879 people come into the workforce and will lose that sense 0:22:25.920 --> 0:22:29.240 of labor shortage. But as I look at the data, 0:22:29.720 --> 0:22:33.800 I see much stronger evidence that people who retired over 0:22:33.840 --> 0:22:37.280 the last year aren't coming back. I see more and 0:22:37.320 --> 0:22:39.679 more evidence that people who in one way or another 0:22:39.720 --> 0:22:44.119 have changed around their lives aren't coming back for a while. 0:22:44.600 --> 0:22:48.320 So I expect that as the economy grows rapidly, as 0:22:48.400 --> 0:22:51.320