WEBVTT - Edelman 2025 Trust Barometer, Crypto Regulation Outlook 0:00:02.560 --> 0:00:10.440 Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business Week, 0:00:10.680 --> 0:00:13.920 insight from the reporters and editors that bring you America's 0:00:14.000 --> 0:00:18.680 most trusted business magazine, plus global business, finance and tech 0:00:18.760 --> 0:00:22.680 news as it happens. Bloomberg Business Week with Carol Masser 0:00:23.120 --> 0:00:25.680 and Tim Stenebeck on Bloomberg Radio. 0:00:26.920 --> 0:00:29.520 It is Bloomberg Business Week. Donald Trump's moved to impost 0:00:29.560 --> 0:00:33.320 tariffs on major US trading partners, sparking a selloff in crypto. 0:00:33.479 --> 0:00:36.640 The index of smaller tokens at one point today was 0:00:36.680 --> 0:00:39.120 on track for the steepest two day route in almost 0:00:39.159 --> 0:00:41.519 three years. Sometimes hard to follow this stuff, given that 0:00:41.520 --> 0:00:43.400 they trade twenty four to seven Carol. 0:00:43.159 --> 0:00:46.159 Exactly did you see when the headlines today were kind 0:00:46.200 --> 0:00:46.800 of all over the plane? 0:00:46.880 --> 0:00:48.600 Did you see what happened with Ether? Though? 0:00:48.720 --> 0:00:49.360 No, tell me what? 0:00:49.600 --> 0:00:52.839 Okay, the second biggest crypto. It briefly plunged as much 0:00:52.840 --> 0:00:56.280 as twenty seven percent before pairing losses. If I go 0:00:56.360 --> 0:00:59.280 to COYP, go on the Bloomberg terminal, I can see 0:00:59.280 --> 0:01:01.640 what it's doing right now now down about seven percent. 0:01:01.720 --> 0:01:03.320 I got to say, we follow crypto a lot. You 0:01:03.360 --> 0:01:05.200 do you do a show on Bloomberg Television. That's all 0:01:05.200 --> 0:01:08.520 about the crypto market. I mean they move around a lot, 0:01:08.560 --> 0:01:10.560 but the moves that we saw today pretty wild, even 0:01:10.600 --> 0:01:11.560 by crypto standards. 0:01:11.640 --> 0:01:14.640 Kenna Rodd is the co founder and chief experience officer 0:01:14.760 --> 0:01:17.840 of solidust Labs. It calls itself the quote first crypto 0:01:17.959 --> 0:01:20.720 native security and compliance of tailored for digital assets. The 0:01:20.760 --> 0:01:23.440 company says it monitors more than eight trillion events each 0:01:23.520 --> 0:01:25.839 day to help make crypto safer. 0:01:25.880 --> 0:01:27.720 Welcome back to business, We get to see you. 0:01:27.800 --> 0:01:28.440 It's a pleasure. 0:01:28.440 --> 0:01:30.160 Thanks for having me. I thought I talked too much 0:01:30.240 --> 0:01:30.640 last time. 0:01:31.520 --> 0:01:33.360 Okay, you're welcome back anytime. 0:01:33.400 --> 0:01:34.959 I do want to talk about the price action though, 0:01:35.000 --> 0:01:38.120 a little bit, because even for the even in the 0:01:38.160 --> 0:01:40.640 standards of crypto, a twenty seven percent, can I call 0:01:40.680 --> 0:01:41.480 it a flash crash? 0:01:41.560 --> 0:01:41.640 Like? 0:01:41.880 --> 0:01:42.520 What was that? 0:01:43.280 --> 0:01:46.520 Well, dramatic response to dramatic events. I'd say in an 0:01:46.560 --> 0:01:48.480 asset class that he's I think is really important to 0:01:48.520 --> 0:01:48.840 remind her. 0:01:48.920 --> 0:01:52.520 Okay, but hold on, we knew tariffs would happen. The 0:01:52.560 --> 0:01:54.520 President talked about that a lot on the campaign trail. 0:01:54.640 --> 0:01:56.160 So was it really dramatic? 0:01:56.280 --> 0:01:56.400 Right? 0:01:56.440 --> 0:01:58.320 Well, I think sometimes you know something happens, but we 0:01:58.360 --> 0:02:02.480 read something so unprecedented, the impact can still be more dramatic. 0:02:02.520 --> 0:02:04.960 I think it's an important reminder that as much as 0:02:05.240 --> 0:02:08.239 digital assets, Bitcoin, ethereum and the rest have matured, there's 0:02:08.280 --> 0:02:10.959 still nascent assets that can move very very fast. 0:02:11.200 --> 0:02:13.120 You know, I'm a guy who's been in this industry. 0:02:12.760 --> 0:02:15.280 For seven years, so I've seen them drop more and 0:02:15.440 --> 0:02:17.440 rise less in shorter periods of time. 0:02:17.480 --> 0:02:19.920 So are you concerned with the rising correlation of this 0:02:20.000 --> 0:02:24.160 asset class with tax stocks, especially bitcoin? 0:02:24.520 --> 0:02:26.600 So I wouldn't say I'm concerned. I think that in 0:02:27.040 --> 0:02:31.000 a lot of ways, it's demonstrates the maturity and the adoption, right. 0:02:31.040 --> 0:02:33.080 I mean, I think, and we'll talk a lot about 0:02:33.080 --> 0:02:36.760 regulation today, we're seeing a broad motion where digital assets 0:02:36.760 --> 0:02:40.800 are becoming more a more integral part of other financial markets. 0:02:40.960 --> 0:02:41.639 So I think there's a. 0:02:41.560 --> 0:02:44.280 Lot of positives to it. And again I think that 0:02:44.440 --> 0:02:46.840 you've seen cases where they correlated, You've seen cases where 0:02:46.880 --> 0:02:50.120 they didn't. You know, there are a lot of explanations 0:02:50.360 --> 0:02:52.800 in each case. But I think they're still young assets 0:02:52.800 --> 0:02:54.080 and it's really hard to predict. 0:02:54.280 --> 0:02:56.200 Yeah, you know, I think there's one point that we 0:02:56.240 --> 0:02:58.480 thought it was going to be like a safe haven. 0:02:58.720 --> 0:03:01.640 Perhaps it didn't kind of work out that way today. 0:03:01.720 --> 0:03:04.200 So I mean I still I mean Tim and I 0:03:04.200 --> 0:03:05.800 talked about this a lot, like I still try to 0:03:06.040 --> 0:03:09.760 understand what we should think about what is crypto. 0:03:09.880 --> 0:03:12.680 Right, Well, I think a safe haven is a cryptocurrency. 0:03:12.680 --> 0:03:14.560 I mean, a safe haven is a dangerous term, I 0:03:14.560 --> 0:03:17.160 think when it comes to capital markets, because nothing is 0:03:17.160 --> 0:03:19.720 one hundred percent safe. I think oftentimes you know, obviously 0:03:19.720 --> 0:03:22.880 beatquin is perceived as a hedge, specifically for inflation. So 0:03:23.000 --> 0:03:26.520 the safe haven element I think is true there because 0:03:26.520 --> 0:03:28.520 regardless whether the price is going up or down, it 0:03:28.560 --> 0:03:33.200 cannot be inflated by a government. But ultimately, again, as 0:03:33.560 --> 0:03:36.520 Wall Street as dramatically increased it's involvement and is constantly 0:03:36.520 --> 0:03:38.600 becoming more involved in digital assets, I think it's natural 0:03:38.920 --> 0:03:40.800 to also assume that there will be some cases where 0:03:40.800 --> 0:03:41.640 there's more correlation. 0:03:41.800 --> 0:03:43.800 Well, if governments get more involved, we have now a 0:03:43.800 --> 0:03:45.960 president in the White House who certainly seems much more 0:03:45.960 --> 0:03:49.920 interested in it in an upbeat way. So does that 0:03:50.040 --> 0:03:54.000 also then make it maybe more susceptible to the factors 0:03:54.000 --> 0:03:56.720 that affect traditional if you will, or boring out you know, 0:03:56.760 --> 0:03:59.720 our traditional boring assets that are out there, well, I'd. 0:03:59.480 --> 0:04:02.440 Say that when you look at Washington these days, and 0:04:02.480 --> 0:04:04.960 I visited twice in the past two weeks, met met 0:04:05.040 --> 0:04:09.160 with more than twenty elected officials and their teams. There's 0:04:09.200 --> 0:04:12.640 a broad motion to figure out the right way to 0:04:12.720 --> 0:04:15.840 regulate crypto and essentially, you know, bring it closer to 0:04:15.880 --> 0:04:19.520 the family of other financial assets. So yes, i'd say 0:04:19.520 --> 0:04:22.680 it's one hundred percent part of the same momentum. I 0:04:22.680 --> 0:04:25.040 don't think it means that it will behave exactly like 0:04:25.120 --> 0:04:27.400 any like other asset classes in the long run. 0:04:27.600 --> 0:04:29.800 So wait, so should we have in our investment pie? 0:04:29.920 --> 0:04:32.200 So how is it You've got stocks, you've got bonds, 0:04:32.240 --> 0:04:35.520 you've got cash, You've got is it alternative assets where 0:04:35.560 --> 0:04:37.520 crypto falls into and it's a little sliver. 0:04:38.120 --> 0:04:40.080 Well, I think that's the case for a lot of 0:04:40.080 --> 0:04:41.000 portfolios today. 0:04:41.120 --> 0:04:43.800 But how are governments thinking about it? Well, I think 0:04:44.760 --> 0:04:46.839 has our government after the meetings you've had. 0:04:46.760 --> 0:04:49.680 So I think the governments generally see it first and 0:04:49.680 --> 0:04:53.159 foremost as an innovative power that can push you know, 0:04:53.360 --> 0:04:55.960 the financial industry forward. So you know, I think a 0:04:55.960 --> 0:04:57.560 lot of the support for the assets are just because 0:04:57.560 --> 0:05:00.960 they're innovative and they're pushing on infrastructure and efficiencies and 0:05:01.520 --> 0:05:03.000 a lot of things that haven't been changing. Find it's 0:05:03.000 --> 0:05:05.520 for a very long time. In terms of I think 0:05:05.560 --> 0:05:08.719 that that will ultimately lead to digital assets crypto just 0:05:08.760 --> 0:05:12.960 being considered another asset class. So that again has its nuances, 0:05:11.920 --> 0:05:17.880 but you know, is an integral part of most portfolios 0:05:17.920 --> 0:05:19.320 depending on your risk appetites, etc. 0:05:19.800 --> 0:05:22.200 Were you down in Washington, D C. For the inauguration 0:05:22.279 --> 0:05:24.200 any of the parties associated with it. 0:05:24.320 --> 0:05:26.120 Yes, I wasn't to the inauguration, but I've been with 0:05:26.400 --> 0:05:28.400 a lot of the parties and conversations that ensued. 0:05:28.480 --> 0:05:31.640 Yes, So I wonder what people talked about in relation 0:05:31.680 --> 0:05:33.960 to the Trump and Millennia coins, because there was so 0:05:34.080 --> 0:05:39.240 much news just ahead of the inauguration when these two 0:05:40.520 --> 0:05:43.320 we call the meme coins here at Bloomberg when they 0:05:43.480 --> 0:05:45.960 came out, and there was some also some reporting that 0:05:46.000 --> 0:05:50.240 I read about people within the crypto community not necessarily 0:05:50.279 --> 0:05:52.799 viewing it as a positive development within the industry. 0:05:52.800 --> 0:05:53.440 How do you view it? 0:05:53.839 --> 0:05:56.320 I think that there's a lot of there's a lot 0:05:56.320 --> 0:05:58.280 of ambivalence, there are views on both sides. 0:05:59.080 --> 0:06:00.040 How do you view it? 0:06:00.200 --> 0:06:04.000 So, I personally have not invested in the coin. I'm 0:06:04.000 --> 0:06:07.159 generally not particularly interested in meme coins. I think that 0:06:07.200 --> 0:06:10.000 the people who would defend it say that ultimately it's 0:06:10.000 --> 0:06:12.000 like a baseball card. Some people want to collect it 0:06:12.040 --> 0:06:13.920 now the Trump was inaugurated. There are a lot in 0:06:13.960 --> 0:06:15.400 the industry, and I think there's some truth to it 0:06:15.440 --> 0:06:18.640 who also sees it as something that the values or 0:06:18.720 --> 0:06:22.000 diminishes a little bit the credibility of the industry, And 0:06:22.240 --> 0:06:23.520 a lot of people don't appreciate it. 0:06:23.800 --> 0:06:25.720 Just to be in the position of somebody listening or 0:06:25.720 --> 0:06:27.320 watching this right now, they might say, yes, but with 0:06:27.360 --> 0:06:30.280 a baseball card, I can hold it right with this, 0:06:30.880 --> 0:06:33.080 What am I actually buying when I buy the official 0:06:33.120 --> 0:06:34.120 Trump meme coin. 0:06:34.040 --> 0:06:36.560 Well, you're buying an immutable proof that you're holding a 0:06:36.600 --> 0:06:39.680 digital asset. So in a lot of ways, it's harder 0:06:39.720 --> 0:06:42.080 to make disappear than a baseball card. I can't imagine 0:06:42.080 --> 0:06:44.320 how many baseball cards, well, in my case, soccer cards, 0:06:44.320 --> 0:06:46.559 I have in places where I'll never find them again. 0:06:47.000 --> 0:06:48.440 So there are also advantages to it. 0:06:48.480 --> 0:06:52.159 Again, the whole world is becoming more digital, you know, 0:06:52.200 --> 0:06:53.240 And I think there are a lot of people for 0:06:53.279 --> 0:06:55.360 whom that's not really a consideration, but for people for 0:06:55.400 --> 0:06:58.040 whom it is a consideration, don't buy it. I do 0:06:58.080 --> 0:07:00.560 think it is important to say, just to co your 0:07:00.560 --> 0:07:04.240 point that you know, there are people and many have 0:07:04.279 --> 0:07:07.919 been vocal about the fact that it's not necessarily appreciated because. 0:07:07.760 --> 0:07:09.000 We take our industry very seriously. 0:07:09.240 --> 0:07:11.720 That being said, the mean tooken world is a huge 0:07:11.720 --> 0:07:13.160 part of the industry and a lot of people really 0:07:13.240 --> 0:07:15.200 enjoy it. It's one where you have to take into 0:07:15.240 --> 0:07:17.360 consideration that those assets don't as we have the same 0:07:17.400 --> 0:07:20.120 kind of fundamentals you'd see with other assets, and you've 0:07:20.120 --> 0:07:22.640 got to be careful and do your researchers. There are 0:07:22.640 --> 0:07:23.880 a lot of scams out there as well. 0:07:23.960 --> 0:07:26.120 Yeah, I think no. The Bloomberg rout about that, right, 0:07:26.160 --> 0:07:29.119 and the concern of the criticism was that it wasn't 0:07:29.280 --> 0:07:32.640 taking it seriously, you know, in terms of the digital space. Hey, 0:07:32.680 --> 0:07:36.280 one thing I want to ask you is that the 0:07:36.320 --> 0:07:38.520 presidents signed a measure to create a sovereign wealth fund. 0:07:40.600 --> 0:07:44.040 Would it be a dangerous measure to include cryptocurrencies and 0:07:44.080 --> 0:07:46.520 a sovereign wealth fund here in the United States if 0:07:46.560 --> 0:07:47.920 we our government. 0:07:47.520 --> 0:07:51.560 Creates one, every asset has its dangers. Also in the 0:07:51.560 --> 0:07:54.680 Executive ordered listed you know that designed last week specifically 0:07:54.720 --> 0:07:59.480 on creating a crypto Task Force working group that includes 0:07:59.480 --> 0:08:02.760 also a score of considering you know, a bitcoin reserve. 0:08:03.240 --> 0:08:05.640 So there are risks, so there are also obviously a 0:08:05.680 --> 0:08:08.880 lot of opportunities. But I think that at this point 0:08:08.920 --> 0:08:12.400 you have you have endowment funds, you have pension funds 0:08:12.440 --> 0:08:16.280 that think it's important enough to include you know, digitalists 0:08:16.280 --> 0:08:18.520 instir portfolio. I think it's just natural that the US 0:08:18.600 --> 0:08:21.800 government might consider that as well. You know, again, it's 0:08:21.840 --> 0:08:22.960 an asset that. 0:08:22.760 --> 0:08:26.240 Taxpayer right ultimately is on the line or feels the 0:08:26.280 --> 0:08:29.920 losses correct, right, yes, of course, in a sovereign wealth fund, yes, 0:08:30.120 --> 0:08:31.480 or the citizens well. 0:08:31.320 --> 0:08:34.400 I mean yes, but they're also filled the profits, right, 0:08:34.440 --> 0:08:36.320 which is part of the idea of a sovereign wealth fund. 0:08:36.720 --> 0:08:39.000 I think that, you know, thinking long term, to not 0:08:39.200 --> 0:08:42.120 at least consider digital assets as part of sovereign wealth 0:08:42.120 --> 0:08:45.280 fund would be silly because they're very They're the most 0:08:45.320 --> 0:08:47.720 successful assets in terms of growth over. 0:08:47.600 --> 0:08:49.080 The past decade, I believe. 0:08:49.800 --> 0:08:52.240 But that doesn't mean that they should be invested in blindly, 0:08:52.360 --> 0:08:54.800 not by anyone, and definitely not by the government. So 0:08:54.840 --> 0:08:55.560 it should be done. 0:08:55.440 --> 0:08:58.000 With care, by the way, the official Trump according to 0:08:58.040 --> 0:09:00.320 coin market Cap has a market cap right now of 0:09:00.360 --> 0:09:03.120 three point seven billion dollars, down from close to fifteen 0:09:03.400 --> 0:09:05.760 billion dollars. Ken, thank you so much for joining us. 0:09:05.800 --> 0:09:09.880 Kenna Rod, co founder and Chief Experience Officer of Solidus Labs. 0:09:09.960 --> 0:09:13.440 Up next Edelman CEO Richard Edelman. It's just been a 0:09:13.440 --> 0:09:15.440 few weeks, exactly two. 0:09:15.360 --> 0:09:15.920 Weeks, Carol. 0:09:16.000 --> 0:09:17.679 Yeah, busy two weeks since Solal. 0:09:17.520 --> 0:09:19.880 Trump was inaugurated. A lot has happened. Here's just a 0:09:19.880 --> 0:09:22.720 few things. A slew of executive orders. What is looking 0:09:23.200 --> 0:09:25.440 like it's turning into a trade war? Elon Musk making 0:09:25.480 --> 0:09:27.800 some big changes as part of his work on what 0:09:27.880 --> 0:09:31.840 he calls government efficiency, some very tense confirmation hearings and 0:09:31.920 --> 0:09:34.760 upheaval in the world of AI and more. And again 0:09:35.360 --> 0:09:36.679 it's only been two weeks. 0:09:36.480 --> 0:09:39.000 Yeah, only early February, all right, So we wanted to 0:09:39.080 --> 0:09:41.960 know what CEOs are thinking, and that's why we have 0:09:42.040 --> 0:09:45.080 Richard Edelman with us. He's got a great, big macro 0:09:45.240 --> 0:09:47.839 view on all that is happening and what it means 0:09:47.880 --> 0:09:51.160 for the c suites around the globe. He Richard is 0:09:51.320 --> 0:09:54.439 chief executive officer of the global communications firm Edelman, and 0:09:54.840 --> 0:09:57.520 he joins us here in studio he's just back from Davos. 0:09:57.640 --> 0:10:00.480 Let's start there, because what a great start ar point. 0:10:00.480 --> 0:10:02.200 And I've been talking to and Tim and I have 0:10:02.280 --> 0:10:05.240 been with folks that were in Davos, and it seemed 0:10:05.240 --> 0:10:09.439 like everybody wanted to talk about President Trump or artificial intelligence. 0:10:09.440 --> 0:10:10.640 But tell us your perspective. 0:10:11.200 --> 0:10:15.080 So I think the American CEOs were quite bullish. They felt, 0:10:15.120 --> 0:10:19.560 you know, deregulation, lower taxes, a chance to you know, 0:10:20.400 --> 0:10:25.080 increase investment. Meanwhile, the European CEOs felt deeply depressed and 0:10:25.120 --> 0:10:28.040 they were nervous about trade, they were nervous about regulation. 0:10:28.160 --> 0:10:30.520 I heard one CEO tell me he has thirty five 0:10:30.600 --> 0:10:33.640 thousand data points to give to the EU on environmental 0:10:33.679 --> 0:10:39.160 regulation every year, and that's a huge burden. So also, 0:10:39.679 --> 0:10:41.760 I would say it was a very business like Davos. 0:10:42.240 --> 0:10:45.480 You know, other than Trump's last day appearance and Malay 0:10:45.520 --> 0:10:48.560 of Argentina, there were very few government leaders, so it 0:10:48.600 --> 0:10:50.240 was a much more business like Davos. 0:10:50.800 --> 0:10:52.880 It's interesting that you say that you're probably the second 0:10:52.880 --> 0:10:54.800 person to tell us in just a few days that 0:10:54.960 --> 0:10:57.679 the mood of European CEOs was pretty gloomy. 0:10:58.600 --> 0:11:01.480 Well, they're gloomy because I think they feel trapped between 0:11:01.480 --> 0:11:04.559 the US and China. They have big sales in China, cars, 0:11:04.559 --> 0:11:08.360 et cetera. Their energy costs are high, their regulation is high, 0:11:08.679 --> 0:11:13.800 and frankly they're nervous about the German economy, the French economy, 0:11:13.840 --> 0:11:17.120 both of them wobbling along. So they don't have domestic 0:11:17.120 --> 0:11:18.480 demand like the US does. 0:11:19.440 --> 0:11:24.199 So it's interesting, as you know, we navigate from day 0:11:24.240 --> 0:11:26.400 to day, hour to hour the headlines that come out 0:11:26.440 --> 0:11:29.520 of the White House, in the Oval Office, and so 0:11:29.800 --> 0:11:33.959 I am curious, was there a perspective among the global 0:11:33.960 --> 0:11:37.280 CEOs are more importantly the American CEOs, that it's kind 0:11:37.280 --> 0:11:39.080 of a wait and see that we think some of 0:11:39.120 --> 0:11:43.800 it is a lot of talk, and that ultimately, as 0:11:43.840 --> 0:11:46.439 you said, policies will make business sense and they might 0:11:46.480 --> 0:11:49.560 not be as extreme as some of the conversations around 0:11:49.559 --> 0:11:49.920 them are. 0:11:51.080 --> 0:11:55.560 I think no, no, Look, I think our trust barometer 0:11:55.640 --> 0:11:58.240 came out in time for Davos, and the thing that 0:11:58.360 --> 0:12:01.560 was so noteworthy, Carol, is that we see the world 0:12:01.600 --> 0:12:04.320 slipping into grievance, and that's sixty percent of the world's 0:12:04.360 --> 0:12:07.480 moderate or high grievance, and especially in Germany, thirty five 0:12:07.480 --> 0:12:10.640 percent of people highly agrieved. Just before their elections. And 0:12:10.960 --> 0:12:14.560 why is that? It's inflation, It's the sense that you know, 0:12:14.640 --> 0:12:16.920 my family won't be better off in the next generation, 0:12:17.559 --> 0:12:21.200 lack of hope, fear of job loss to AI and 0:12:21.240 --> 0:12:24.400 so I think business has every way to solve this. 0:12:24.600 --> 0:12:27.080 You know, give me a good job, reskill me, have 0:12:27.160 --> 0:12:32.320 affordable products. That's the playbook. And CEOs need to make 0:12:32.360 --> 0:12:33.680 sure that it's about their business. 0:12:34.480 --> 0:12:37.000 Why do you think we see this happening around the world. 0:12:37.840 --> 0:12:39.920 You know, it's not this idea of grievance is not 0:12:40.920 --> 0:12:44.000 particular to one single country or one single region. What's 0:12:44.200 --> 0:12:47.680 Is this a post COVID phenomenon? Is it a rise 0:12:47.679 --> 0:12:51.600 of the cost of living phenomenon? Is it a globalization phenomenon? 0:12:51.720 --> 0:12:53.479 Is all of the above? What is it? 0:12:53.480 --> 0:12:56.720 It's it's absolutely It's like dominoes, And so, you know, 0:12:56.760 --> 0:12:59.520 you start with the mass class divide, and you have 0:12:59.559 --> 0:13:02.400 a battle for truth, and you have this problem of 0:13:02.440 --> 0:13:06.200 COVID five years on, where people mental health and other things, 0:13:06.440 --> 0:13:08.640 and then you have all the geopolitical issues and so 0:13:08.960 --> 0:13:13.320 all of this is a lot, and people feel continuously punched, 0:13:13.640 --> 0:13:16.240 and so I think they used to take it and 0:13:16.480 --> 0:13:19.960 just have fears, and then now they're aggrieved, and they're 0:13:20.000 --> 0:13:24.280 prepared to fight back, and whether it's misinformation or even violence, 0:13:24.920 --> 0:13:27.240 this is what we start to see. And business has 0:13:27.320 --> 0:13:30.360 every reason to be concerned about this because business is 0:13:30.440 --> 0:13:34.280 distrusted by the highly aggrieved. It's different than most because 0:13:34.320 --> 0:13:36.480 business is the most component and most ethical except for 0:13:36.520 --> 0:13:39.080 the highly agrieveed. So business has to try to pull 0:13:39.120 --> 0:13:41.680 people back from this cliff and make people feel as 0:13:41.720 --> 0:13:44.240 if they have good jobs, they can get well paid, 0:13:44.440 --> 0:13:46.320 they will be reskilled and can compete. 0:13:46.440 --> 0:13:49.559 So what's the problem. Is it that workers aren't sharing 0:13:49.720 --> 0:13:53.000 in the profits? I mean, you know, we're in an 0:13:53.040 --> 0:13:56.560 earning season, we see it. I mean, companies are doing well, 0:13:57.360 --> 0:14:01.080 and is it a case that they're not sharing all 0:14:01.120 --> 0:14:03.000 of those with their workers. 0:14:03.120 --> 0:14:06.839 Well, here's an example in Japan. There hasn't been really 0:14:06.880 --> 0:14:09.719 a raise for workers for thirty years, okay, and so 0:14:09.960 --> 0:14:12.720 you get the idea of why people in the lowest 0:14:12.760 --> 0:14:16.280 coretile of income feel deeply aggravated relative to the. 0:14:16.320 --> 0:14:20.000 Higher ing So why aren't CEOs appreciating those workers at 0:14:20.000 --> 0:14:20.560 that level? 0:14:21.080 --> 0:14:22.920 I think that they are in the sense that they 0:14:23.000 --> 0:14:26.440 use them, they put them in jobs. But the truth 0:14:26.520 --> 0:14:31.920 is there's been outsourcing there's been globalization, there's now AI. 0:14:32.400 --> 0:14:36.000 All of this is towards cost and effectiveness, and so 0:14:36.320 --> 0:14:38.840 CEOs are balancing a lot of these factors. But they 0:14:38.920 --> 0:14:42.320 do want employees to work hard and be satisfied, and 0:14:42.360 --> 0:14:43.440 the key to that is pay. 0:14:44.120 --> 0:14:47.760 We saw CEOs two weeks ago stand behind the president 0:14:47.880 --> 0:14:51.600 at the inauguration, some exactly, not all. We saw many 0:14:51.600 --> 0:14:56.120 prominent ones there. In general, we have seen some CEOs 0:14:57.040 --> 0:15:00.520 share their views politically, more so in recent weeks, recent months. 0:15:00.560 --> 0:15:01.960 Then we're sort of accustomed to. 0:15:02.680 --> 0:15:05.640 You said, there's this idea that they're cheering deregulation, they're 0:15:05.720 --> 0:15:09.360 cheering lower taxes, But what about the chaos that's associated 0:15:09.720 --> 0:15:11.440 with the administration thus far. 0:15:12.160 --> 0:15:13.440 Is it a distraction to them? 0:15:13.880 --> 0:15:16.600 Is it what you get with Donald Trump because we 0:15:16.640 --> 0:15:19.440 knew that in the first term, or is it something 0:15:19.440 --> 0:15:23.080 that concerns them because they need to make decisions about 0:15:23.160 --> 0:15:26.320 their businesses in China, in Canada, in Mexico. 0:15:27.000 --> 0:15:31.480 I think CEOs need to argue for agenda items that 0:15:31.600 --> 0:15:34.320 suit their business. So, for example, if trade is a 0:15:34.400 --> 0:15:36.320 key part of your business, you should go out and 0:15:36.360 --> 0:15:38.440 advocate for a free trade and say this is going 0:15:38.480 --> 0:15:40.800 to cause inflation or it's going to make my supply 0:15:40.880 --> 0:15:43.840 chain inefficient or it's actually going to cost jobs in America. 0:15:44.000 --> 0:15:47.320 But also the non American companies need to make the 0:15:47.360 --> 0:15:50.920 case for investing in the US, putting more manufacturing here, 0:15:51.280 --> 0:15:55.560 making sure that it's aligned to the president's agenda. 0:15:55.680 --> 0:15:56.200 It's both. 0:15:56.600 --> 0:15:59.120 But I don't believe that CEO should stick their heads 0:15:59.200 --> 0:16:02.080 up and be very I think they should do their businesses. 0:16:02.320 --> 0:16:04.000 But you know, I want to go back to what 0:16:04.040 --> 0:16:07.680 you said. Sixty one percent globally have a moderate or 0:16:07.720 --> 0:16:09.920 high sense of grievance, which is defined by a belief 0:16:09.920 --> 0:16:12.520 that government and business make their lives harder and serve 0:16:12.640 --> 0:16:15.880 narrow interests, and wealthy people benefit unfairly from the system. 0:16:15.920 --> 0:16:19.680 I'm waiting for like the deluge of emails of like, yeah, 0:16:19.720 --> 0:16:22.400 we got that, Carol, Like that explains politics that are 0:16:22.440 --> 0:16:25.240 going on. But like Richard, how do is it just 0:16:25.280 --> 0:16:28.240 a case of paying workers more. I'm not saying just 0:16:28.680 --> 0:16:31.600 I don't mean that, but I mean, is that the fix? 0:16:31.800 --> 0:16:36.280 Because there are a lot of disillusioned individuals here in 0:16:36.280 --> 0:16:38.320 the United States and around the globe I think just 0:16:38.360 --> 0:16:40.200 feel completely left behind. 0:16:40.520 --> 0:16:44.840 So inflation is corrosive. Got to get inflation under control 0:16:44.880 --> 0:16:47.080 so that people feel as if when they run hard, 0:16:47.320 --> 0:16:49.920 they're not running into the wind. Second, they got to 0:16:49.920 --> 0:16:51.680 feel as if they have a chance for the future. 0:16:51.680 --> 0:16:57.240 Rescaling upskilling core. And then third is pay and continuous 0:16:57.560 --> 0:16:59.920 ability to get to a better place. 0:17:00.000 --> 0:17:02.840 But it seems like such an easy fix. Why then 0:17:02.920 --> 0:17:06.240 aren't we getting there? Like paying workers more? We've had 0:17:06.280 --> 0:17:09.040 guests on talking about a living wage, and then some 0:17:09.960 --> 0:17:11.840 why aren't we Why isn't it being done? 0:17:11.960 --> 0:17:16.560 Because we're not taking full advantage of what's possible. AI 0:17:16.720 --> 0:17:20.080 is actually an enhancement tool for workers to be able 0:17:20.119 --> 0:17:22.200 to produce more. I mean, in my business, I can 0:17:22.240 --> 0:17:25.160 see how much faster people turn out press releases and 0:17:25.400 --> 0:17:28.280 message points and things like this. Everyone's got to put 0:17:28.320 --> 0:17:32.320 AI into their workflows. Also, we've got to be sure 0:17:32.400 --> 0:17:35.520 this reskilling thing so that everyone feels as if he 0:17:35.600 --> 0:17:37.840 or she can compete, not just the twenty two year 0:17:37.840 --> 0:17:38.920 old is just out of school. 0:17:39.040 --> 0:17:41.600 Because I feel like we've talked reskilling for years. 0:17:41.680 --> 0:17:44.040 Yeah's true, but we've never done it. We've never done 0:17:44.080 --> 0:17:46.919 it in an effective way. And also, business can't do 0:17:47.000 --> 0:17:49.760 this alone. Business should do this with government and NGOs. 0:17:49.800 --> 0:17:55.000 And the secret here is NGOs, non governmental organizations, they're local. 0:17:55.280 --> 0:18:00.240 They're also actually believable for the high grievance people. This 0:18:00.320 --> 0:18:03.520 is not so business should partner with community organizations. 0:18:03.600 --> 0:18:07.680 We were supposed to see reskilling after NAFTA, and obviously 0:18:07.720 --> 0:18:10.320 that didn't happen to the extent that many people thought 0:18:10.320 --> 0:18:12.720 it would or were told that it would. And we 0:18:12.760 --> 0:18:15.439 can see what's happened today as a result of some 0:18:15.520 --> 0:18:18.919 of the problems in a certain economic economies around the country. 0:18:19.920 --> 0:18:24.800 How do you how do these workers use AI if. 0:18:24.680 --> 0:18:26.720 They're not in you know, part of the knowledge economy, 0:18:27.000 --> 0:18:28.639 or if they're not writing press releases, if they're not 0:18:28.640 --> 0:18:31.800 writing message points like what is the way that for 0:18:31.840 --> 0:18:34.080 people to embrace AI rather than be scared of it. 0:18:34.320 --> 0:18:37.200 So one of our clients, Honeywell, is using AI on 0:18:37.240 --> 0:18:39.920 the factory floor and making their workers more productive. That's 0:18:39.960 --> 0:18:44.280 the key to the future. And actually blue collar workers 0:18:45.000 --> 0:18:48.760 have much less job risk than white collar in insurance 0:18:48.800 --> 0:18:52.040 and other things where they're repetitive skills, so blue collar 0:18:52.040 --> 0:18:55.760 workers could thrive. This is a very important message that 0:18:55.800 --> 0:18:58.600 most people haven't absorbed and we need to keep telling this, 0:18:58.880 --> 0:19:01.080 and we also need optimists and back in this country, 0:19:01.200 --> 0:19:03.720 we need to make sure that people believe again that 0:19:03.760 --> 0:19:07.360 the country can do better, because in the moment there's 0:19:07.359 --> 0:19:11.359 this inundation of negativity. And I think competence and ethics 0:19:11.400 --> 0:19:13.000 will get you so far. But if you want to 0:19:13.080 --> 0:19:15.960