1 00:00:05,120 --> 00:00:09,200 Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along 2 00:00:09,240 --> 00:00:13,200 Speaker 1: with Jonathan Ferrell and Lisa Brownwitz Jailey. We bring you 3 00:00:13,320 --> 00:00:18,600 Speaker 1: insight from the best and economics, finance, investment, and international relations. 4 00:00:18,960 --> 00:00:23,840 Speaker 1: Find Bloomberg Surveillance on Apple podcast, SoundCloud, Bloomberg dot com, 5 00:00:23,920 --> 00:00:29,960 Speaker 1: and of course on the Bloomberg terminal in Glasgow at 6 00:00:29,960 --> 00:00:33,360 Speaker 1: CUP twenty six. There are people that have parachuted into 7 00:00:33,440 --> 00:00:36,680 Speaker 1: climate change that could not be said of the former 8 00:00:36,800 --> 00:00:39,760 Speaker 1: Vice President of the United States, and with that there's 9 00:00:39,800 --> 00:00:42,960 Speaker 1: no need to mention his name. Francine Lacroix with a 10 00:00:43,000 --> 00:00:49,320 Speaker 1: gentleman from Tennessee. Yeah, thank you so much, Tom John 11 00:00:49,320 --> 00:00:51,159 Speaker 1: and Lisa. I am delighted to be speaking to al 12 00:00:51,240 --> 00:00:54,920 Speaker 1: Gore were the the original proponent of sustainability and climate 13 00:00:55,000 --> 00:00:57,680 Speaker 1: change through for years and decades, has been trying to 14 00:00:57,760 --> 00:01:00,200 Speaker 1: make this a reality of Vice President growth. You so 15 00:01:00,280 --> 00:01:03,520 Speaker 1: much for joining us. Thank you. Today's Climate Finance, it's 16 00:01:03,600 --> 00:01:05,880 Speaker 1: we're focusing on the funding, on the finance, on how 17 00:01:05,880 --> 00:01:09,840 Speaker 1: we transition better. I want to ask about your investment firm. 18 00:01:09,959 --> 00:01:12,319 Speaker 1: This is something with the joint ventures with Golden Saxon, 19 00:01:12,360 --> 00:01:16,720 Speaker 1: you're basically only targeting assets that are decarbonizing, which means 20 00:01:16,720 --> 00:01:19,160 Speaker 1: that all the portfolios are well below the one point 21 00:01:19,240 --> 00:01:23,800 Speaker 1: five degrees. Is this how you do it? Right? Yeah? Well, 22 00:01:23,880 --> 00:01:27,760 Speaker 1: Generation Investment Management was one of the small group that 23 00:01:27,840 --> 00:01:31,960 Speaker 1: convened this net zero Asset Managers initiative, and it's now 24 00:01:32,080 --> 00:01:35,480 Speaker 1: up to this incredibly large number of fifty two trillion 25 00:01:35,840 --> 00:01:38,480 Speaker 1: dollars and it's part of the larger package that Mark 26 00:01:38,600 --> 00:01:42,320 Speaker 1: Arney talked about. The rules of the road are are 27 00:01:42,360 --> 00:01:46,560 Speaker 1: still being worked out in great detail. Uh. For for 28 00:01:46,680 --> 00:01:51,000 Speaker 1: our part, we are actually committed to net zero, real 29 00:01:51,160 --> 00:01:56,560 Speaker 1: net nead zero. Uh. Some who have made this commitment 30 00:01:56,640 --> 00:02:01,320 Speaker 1: are still working toward that man maximum goal. And I 31 00:02:01,360 --> 00:02:04,920 Speaker 1: think what you're seeing here in this conference overall is 32 00:02:04,960 --> 00:02:07,920 Speaker 1: a big wheel turning slowly. I think the world is 33 00:02:07,960 --> 00:02:12,920 Speaker 1: awakening to the dire danger our civilization is in. And 34 00:02:12,919 --> 00:02:16,239 Speaker 1: I won't go into all that, but obviously Mother Nature 35 00:02:16,320 --> 00:02:19,239 Speaker 1: is making the point very powerfully and people are now responding, 36 00:02:19,280 --> 00:02:22,840 Speaker 1: and in the finance sector they are now saying, look, 37 00:02:22,960 --> 00:02:24,480 Speaker 1: we got to be part of the solution, and we 38 00:02:24,560 --> 00:02:26,880 Speaker 1: got to stop funding the problem. How do we turn 39 00:02:26,919 --> 00:02:30,040 Speaker 1: the wheel faster? So, if you're an investor today, how 40 00:02:30,040 --> 00:02:32,640 Speaker 1: do you avoid greenwashing? How do you avoid making the 41 00:02:32,720 --> 00:02:36,200 Speaker 1: mistakes that then leads to probe saying your financial product 42 00:02:36,320 --> 00:02:39,680 Speaker 1: is not s G enough. Well, in its essence, screenwashing 43 00:02:39,840 --> 00:02:43,600 Speaker 1: is just a cheap trick that people are beginning to 44 00:02:43,639 --> 00:02:47,520 Speaker 1: see through. Uh. It won't work for long. Uh. In 45 00:02:47,639 --> 00:02:50,280 Speaker 1: the age of the Internet, people are ferretting out what's 46 00:02:50,320 --> 00:02:53,200 Speaker 1: real and what's not it. It will take a little time. 47 00:02:53,760 --> 00:02:58,200 Speaker 1: But you know, society as a whole is now insisting 48 00:02:58,800 --> 00:03:02,280 Speaker 1: that all of the institute usians of our civilization begin 49 00:03:02,360 --> 00:03:05,040 Speaker 1: to respond to this with the sense of urgency that 50 00:03:05,160 --> 00:03:08,720 Speaker 1: that's appropriate. And that's why you've seen this wave of 51 00:03:08,880 --> 00:03:13,120 Speaker 1: E s G investing, albeit with a lot of greenwashing. Uh. 52 00:03:13,120 --> 00:03:15,839 Speaker 1: And and as people begin to focus more intently, they're 53 00:03:15,840 --> 00:03:18,880 Speaker 1: going to insist that they do it for real and 54 00:03:18,919 --> 00:03:22,680 Speaker 1: get rid of this greenwashing. How do you measure success 55 00:03:22,760 --> 00:03:24,480 Speaker 1: if you look at some of the things, for example, 56 00:03:24,520 --> 00:03:27,200 Speaker 1: investment products. I know we're waiting for a common language, 57 00:03:27,320 --> 00:03:30,800 Speaker 1: we're waiting for taxonomy, we're waiting for a price on carbon. 58 00:03:31,320 --> 00:03:33,519 Speaker 1: But how do you make sure that investors don't walk 59 00:03:33,560 --> 00:03:36,400 Speaker 1: away from cop with a pat on the vaccine? We've 60 00:03:36,440 --> 00:03:38,080 Speaker 1: done the job, but let's go back to business. The 61 00:03:38,080 --> 00:03:39,760 Speaker 1: old way. Yeah, I don't think that they're going to 62 00:03:39,880 --> 00:03:42,640 Speaker 1: be able to do that because a lot of the 63 00:03:42,760 --> 00:03:47,040 Speaker 1: large asset owners, including pension funds, are are saying, you know, 64 00:03:47,840 --> 00:03:51,040 Speaker 1: we we want to go with managers that are actually 65 00:03:51,400 --> 00:03:56,120 Speaker 1: committed for real and not just to pretend commitment. Um. 66 00:03:56,440 --> 00:03:59,040 Speaker 1: And I don't think that there's gonna be a letdown 67 00:03:59,160 --> 00:04:02,480 Speaker 1: after this. I think the pressure is on. Uh. This, 68 00:04:02,480 --> 00:04:07,800 Speaker 1: this conference or cop process includes fifty thousand people, and 69 00:04:08,000 --> 00:04:11,880 Speaker 1: a lot of the major commitments and progress that's being 70 00:04:11,920 --> 00:04:16,000 Speaker 1: made take place outside of this plinary hall, take place 71 00:04:16,040 --> 00:04:21,040 Speaker 1: outside of the negotiating sessions, but actually involved people who 72 00:04:21,120 --> 00:04:25,480 Speaker 1: are in finance in who are CEOs of businesses and 73 00:04:25,520 --> 00:04:28,320 Speaker 1: they're hearing from their customers. But how much of a 74 00:04:28,360 --> 00:04:31,680 Speaker 1: problem is that private money, as you say, is going 75 00:04:31,760 --> 00:04:34,240 Speaker 1: faster than public money. And what can we do to 76 00:04:34,320 --> 00:04:36,839 Speaker 1: change that to at least align them. Well, we need 77 00:04:36,960 --> 00:04:40,719 Speaker 1: reform of the multilateral development banks, for sure. The World 78 00:04:40,720 --> 00:04:44,320 Speaker 1: Bank is not yet on side. Uh. And the head 79 00:04:44,360 --> 00:04:47,320 Speaker 1: of the World Bank is a perfectly nice guy appointed 80 00:04:47,360 --> 00:04:51,320 Speaker 1: by the previous US president, chosen by him. Uh. The 81 00:04:51,360 --> 00:04:53,680 Speaker 1: staff is actually very good. They're in my opinion, but 82 00:04:54,120 --> 00:04:58,480 Speaker 1: they're not yet really committed to helping as they should. 83 00:04:59,080 --> 00:05:02,520 Speaker 1: There is a tremen into amount of work going on 84 00:05:02,800 --> 00:05:05,840 Speaker 1: to try to come up with sensible reforms, not only 85 00:05:05,880 --> 00:05:08,920 Speaker 1: at the World Bank Group, but Crystal linea George Eva, 86 00:05:09,000 --> 00:05:12,159 Speaker 1: I think is a real champion here uh and and 87 00:05:12,400 --> 00:05:15,679 Speaker 1: she is pushing hard to get these reforms in place. 88 00:05:16,000 --> 00:05:18,760 Speaker 1: And then there are a whole group of other multilateral 89 00:05:19,040 --> 00:05:23,440 Speaker 1: development banks, regional banks, national banks. There's a general awakening 90 00:05:23,480 --> 00:05:27,279 Speaker 1: among all of them. Here's an example, what francing. Uh 91 00:05:27,520 --> 00:05:30,680 Speaker 1: If if you're a business in Nigeria and you want 92 00:05:30,680 --> 00:05:34,000 Speaker 1: to build a wind farm, your interest rate is seven 93 00:05:34,080 --> 00:05:36,760 Speaker 1: times higher than it is if you're in an O 94 00:05:36,880 --> 00:05:40,800 Speaker 1: E C D country. That's insane. Obviously the market is 95 00:05:40,839 --> 00:05:44,520 Speaker 1: perceiving risk of various kinds there. But that's what these 96 00:05:45,120 --> 00:05:49,039 Speaker 1: publicly funded the multilateral development banks should be doing, taking 97 00:05:49,080 --> 00:05:52,240 Speaker 1: that first level of risk off of the table and 98 00:05:52,279 --> 00:05:54,640 Speaker 1: speaking for society as a whole and saying it's in 99 00:05:54,800 --> 00:05:58,920 Speaker 1: our public interests to make this transition faster. Why is 100 00:05:58,960 --> 00:06:01,160 Speaker 1: it us not doing? I know we have an agreement 101 00:06:01,200 --> 00:06:04,520 Speaker 1: on methane, but at the same time President Biden has 102 00:06:04,560 --> 00:06:08,359 Speaker 1: been hamstrong with some of the politics back home. Why 103 00:06:08,520 --> 00:06:11,080 Speaker 1: is this happening now, well, we still have a political 104 00:06:11,480 --> 00:06:15,960 Speaker 1: battle to win in the US. UH, and it's a 105 00:06:16,040 --> 00:06:23,480 Speaker 1: divided UH politics in the US, and UH the narrowest 106 00:06:23,520 --> 00:06:27,360 Speaker 1: possible majority in the Senate. So President Biden, I think 107 00:06:27,360 --> 00:06:31,160 Speaker 1: he did a fantastic job with his two days here UH. 108 00:06:31,320 --> 00:06:33,880 Speaker 1: And I think he's done a fantastic job in proposing 109 00:06:33,880 --> 00:06:37,480 Speaker 1: a really meaningful climate package. But it's very tough when 110 00:06:37,480 --> 00:06:40,240 Speaker 1: you have a fifty fifty Senate and a couple of 111 00:06:40,279 --> 00:06:43,400 Speaker 1: the Democratic senators are not yet on board one for 112 00:06:43,520 --> 00:06:47,479 Speaker 1: McCole state, so it's a challenge. I do think that 113 00:06:48,160 --> 00:06:51,640 Speaker 1: in another couple of weeks, I think before the end 114 00:06:51,680 --> 00:06:54,359 Speaker 1: of the year, certainly this package will be passed. It 115 00:06:54,400 --> 00:06:56,680 Speaker 1: may be modified again, but I think it. I think 116 00:06:56,720 --> 00:06:59,400 Speaker 1: it will be passed. We will that help with convincing 117 00:06:59,520 --> 00:07:04,840 Speaker 1: China to come on board or is it about including China? Well, yes, 118 00:07:04,920 --> 00:07:08,039 Speaker 1: I think it has to help and bringing China on board. Yes, 119 00:07:08,360 --> 00:07:12,520 Speaker 1: if if China can say you're preaching temperance from from 120 00:07:12,520 --> 00:07:14,720 Speaker 1: a bar stool, as they say, then it lets them 121 00:07:14,720 --> 00:07:17,720 Speaker 1: off the hook of it. But but I'm convinced that 122 00:07:17,840 --> 00:07:22,200 Speaker 1: China is a serious about making its transition. They're building 123 00:07:22,200 --> 00:07:24,320 Speaker 1: more solar panels and wind farms and the rest of 124 00:07:24,360 --> 00:07:27,120 Speaker 1: the world put together. They're still burning more coal than 125 00:07:27,120 --> 00:07:29,119 Speaker 1: the rest of the world put together, and that has 126 00:07:29,160 --> 00:07:32,960 Speaker 1: to be transitioned away much faster, and they can save 127 00:07:33,040 --> 00:07:37,280 Speaker 1: money by doing it so, But the coal industry in 128 00:07:37,440 --> 00:07:42,120 Speaker 1: China is as powerful as the coal industry in the US, 129 00:07:42,240 --> 00:07:45,680 Speaker 1: and so it obviously is taking some time to make 130 00:07:45,720 --> 00:07:48,840 Speaker 1: that transition. There's an old Chinese proverb I'm told that 131 00:07:48,880 --> 00:07:51,520 Speaker 1: says the mountain is high and the emperor is far away. 132 00:07:52,000 --> 00:07:54,880 Speaker 1: I think that some of the regional governments in China 133 00:07:54,960 --> 00:08:00,480 Speaker 1: have close ties with coal and coal related industrial opera rations, 134 00:08:00,480 --> 00:08:02,680 Speaker 1: and it takes it's taking them some time to get 135 00:08:02,680 --> 00:08:05,400 Speaker 1: them on board. But they've introduced carbon pricing in a 136 00:08:05,680 --> 00:08:08,800 Speaker 1: in a chunk of their society. It's due to expand 137 00:08:09,240 --> 00:08:12,480 Speaker 1: they have put out a net zero goal. It's far 138 00:08:13,440 --> 00:08:16,080 Speaker 1: farther out than I would like it to be, but 139 00:08:16,600 --> 00:08:18,600 Speaker 1: they plan their work and work their plan, and I 140 00:08:18,640 --> 00:08:21,600 Speaker 1: think they're determined to do it. Vice President. When we 141 00:08:21,800 --> 00:08:24,920 Speaker 1: see how much green finance there is out there, I 142 00:08:24,960 --> 00:08:28,160 Speaker 1: had a chief executive calling it tsunami of green finance. 143 00:08:28,320 --> 00:08:30,600 Speaker 1: What happens to the companies that are not working on 144 00:08:30,640 --> 00:08:33,760 Speaker 1: their transition. Now, well, I think we're in the early 145 00:08:33,840 --> 00:08:38,000 Speaker 1: stages of a sustainability revolution. That's the biggest investing and 146 00:08:38,120 --> 00:08:42,840 Speaker 1: business opportunity in history. Uh. And those who don't recognize 147 00:08:42,920 --> 00:08:47,800 Speaker 1: that and adapt to it are in commercial commercial risk 148 00:08:47,920 --> 00:08:50,640 Speaker 1: of course, because they're they're going to be left behind. 149 00:08:50,800 --> 00:08:55,360 Speaker 1: You remember the subprime mortgage of bubble that led to 150 00:08:55,400 --> 00:08:58,720 Speaker 1: the Great Recession. We now have a sub prime carbon 151 00:08:58,840 --> 00:09:04,319 Speaker 1: bubble of two trillion dollars based on an absurd assumption 152 00:09:04,400 --> 00:09:07,400 Speaker 1: that all of that, all of those carbon fuels are 153 00:09:07,400 --> 00:09:09,719 Speaker 1: going to be burned. They're not going to be. They 154 00:09:09,760 --> 00:09:14,520 Speaker 1: cannot be, especially because the new renewable sources of electricity 155 00:09:14,559 --> 00:09:18,959 Speaker 1: are much cheaper now and will be cheaper in the world, 156 00:09:18,960 --> 00:09:21,520 Speaker 1: already in two thirds of the world. So that do 157 00:09:21,559 --> 00:09:23,640 Speaker 1: you believe that once we have a carbon market, or 158 00:09:23,640 --> 00:09:29,200 Speaker 1: proper carbon market functioning with prices, that it reprices private assets? Yeah, 159 00:09:29,280 --> 00:09:33,360 Speaker 1: I mean I think that once carbon risk, the climate 160 00:09:33,679 --> 00:09:38,760 Speaker 1: crisis risk is internalized, then yes, it's going to affect 161 00:09:38,840 --> 00:09:42,920 Speaker 1: the value of all these assets. We've had this insane 162 00:09:43,600 --> 00:09:47,520 Speaker 1: illusion that we can just ignore the impact of the 163 00:09:47,520 --> 00:09:50,400 Speaker 1: climate crisis. But mother Nature is telling us no, not 164 00:09:50,480 --> 00:09:54,040 Speaker 1: so fast. And these events are getting more extreme and 165 00:09:54,120 --> 00:09:58,160 Speaker 1: more frequent, and people everywhere are recognizing it and they're 166 00:09:58,240 --> 00:10:02,679 Speaker 1: demanding action. There's resistance, of course, and the legacy fossil 167 00:10:02,720 --> 00:10:07,160 Speaker 1: fuel complex and the bankers that continue to invest hundreds 168 00:10:07,200 --> 00:10:10,640 Speaker 1: of billions of dollars in it every year. They remind 169 00:10:10,679 --> 00:10:13,720 Speaker 1: me of the old cartoon of wiley coyote running off 170 00:10:13,720 --> 00:10:16,120 Speaker 1: the edge of the cliff and the legs keep moving 171 00:10:16,200 --> 00:10:19,559 Speaker 1: until gravity takes hold. We're in that moment now, We're 172 00:10:19,600 --> 00:10:23,280 Speaker 1: in a transition, and those who make the transition faster 173 00:10:23,440 --> 00:10:26,120 Speaker 1: are going to do better as a result. Vice President Gore, 174 00:10:26,160 --> 00:10:28,480 Speaker 1: thank you so much for your time on Bloomberg today, 175 00:10:28,480 --> 00:10:30,000 Speaker 1: and with that, I'm going to send it back to 176 00:10:30,080 --> 00:10:32,400 Speaker 1: you in New York, John, and we'll have plenty more 177 00:10:32,720 --> 00:10:35,600 Speaker 1: from Glasgow. Cup twice France say thank you so much 178 00:10:35,640 --> 00:10:44,040 Speaker 1: to you as well. Eric Adams is from Brooklyn. He 179 00:10:44,559 --> 00:10:48,679 Speaker 1: joins us this morning. Congratulations, Eric Adams. I just mentioned 180 00:10:48,720 --> 00:10:52,720 Speaker 1: you've done seventy two interviews this morning. How is your Wednesday? Look? 181 00:10:54,800 --> 00:10:58,400 Speaker 1: Busy as you could expect, but exciting and I believe 182 00:10:58,640 --> 00:11:01,800 Speaker 1: that Uh I want to be known as the g 183 00:11:02,240 --> 00:11:06,800 Speaker 1: S D mayor get stuff done. Tram to really deal 184 00:11:06,880 --> 00:11:08,960 Speaker 1: with the problems that we're facing in the city, and 185 00:11:09,000 --> 00:11:12,680 Speaker 1: I'm excited about it. I'm sure you'll accept a congratulations 186 00:11:12,760 --> 00:11:16,160 Speaker 1: call from Mr Jesse at Amazon or Mr Bezos of Amazon. 187 00:11:17,160 --> 00:11:19,280 Speaker 1: I'm sure you will tell me you would not have 188 00:11:19,360 --> 00:11:23,120 Speaker 1: lost Amazon out of Queen's Amazon looks to move to 189 00:11:23,280 --> 00:11:27,160 Speaker 1: Jersey City or at the margin, moved to Jersey City. 190 00:11:27,280 --> 00:11:31,200 Speaker 1: How do you keep tech jobs in the five boroughs 191 00:11:32,600 --> 00:11:35,560 Speaker 1: by doing what I have been doing for the last 192 00:11:36,080 --> 00:11:38,800 Speaker 1: three months now. I had been sitting down with tech 193 00:11:38,880 --> 00:11:43,320 Speaker 1: leaders ms, several Israeli companies and other companies here in 194 00:11:43,360 --> 00:11:46,520 Speaker 1: the city. Just two days ago I met with thirty 195 00:11:46,960 --> 00:11:50,040 Speaker 1: a large tech startups and in the borough of Brooklyn 196 00:11:50,360 --> 00:11:53,680 Speaker 1: we witnessed a three hundred and fifty six increase in 197 00:11:53,760 --> 00:11:57,120 Speaker 1: tech startups in a tenure period. So this has been 198 00:11:57,160 --> 00:12:00,200 Speaker 1: a place where I believe in technology and how we 199 00:12:00,360 --> 00:12:04,480 Speaker 1: use technology to change the delivery of goods and services 200 00:12:04,480 --> 00:12:06,920 Speaker 1: in this city. I'm not going to mince words, you know, 201 00:12:06,960 --> 00:12:09,240 Speaker 1: it's a tough Bloomberg interview. That's what we do here. 202 00:12:09,720 --> 00:12:13,560 Speaker 1: What is going to be here? Change process. In the 203 00:12:13,640 --> 00:12:18,800 Speaker 1: first thirty days from the mayor, you replace a safety 204 00:12:18,920 --> 00:12:21,400 Speaker 1: zero in on gun and gang violence. We have to 205 00:12:21,440 --> 00:12:25,720 Speaker 1: deal with the actualization of fear and violence and the 206 00:12:25,800 --> 00:12:29,960 Speaker 1: perception because they both become a reality to people. So 207 00:12:30,000 --> 00:12:33,920 Speaker 1: I'm going to institute an anti gun plane closed unit, 208 00:12:34,440 --> 00:12:38,120 Speaker 1: of which is similarly disbanded by the current mayor, and 209 00:12:38,160 --> 00:12:42,040 Speaker 1: we're going to zero and gun violence. Okay, I don't 210 00:12:42,160 --> 00:12:44,439 Speaker 1: interrupt here, but the news flow is so important Mayor 211 00:12:44,520 --> 00:12:48,440 Speaker 1: that the district attorney elected maybe disagrees with you on 212 00:12:48,559 --> 00:12:53,760 Speaker 1: the how do you put in process planes, closed officers 213 00:12:54,080 --> 00:12:59,200 Speaker 1: to protect the citizens? What's how do you actually affect that? Well, 214 00:12:59,360 --> 00:13:03,120 Speaker 1: some things. I'm won the distric attorney. He prosecute crimes. 215 00:13:03,280 --> 00:13:06,960 Speaker 1: The police department. We arrest people that there is probable 216 00:13:07,000 --> 00:13:09,240 Speaker 1: cause to believe they committed crime, and I'm not going 217 00:13:09,280 --> 00:13:11,880 Speaker 1: to mix the two. I think right now we are 218 00:13:11,920 --> 00:13:14,439 Speaker 1: debated with the laws we don't like in Albany. We 219 00:13:14,480 --> 00:13:17,560 Speaker 1: don't like the way he prosecuted the prosecuting crimes. That's 220 00:13:17,600 --> 00:13:20,520 Speaker 1: not our job. My job is to make sure if 221 00:13:20,559 --> 00:13:23,400 Speaker 1: someone has probable cause to commit a crime. I'm in 222 00:13:23,600 --> 00:13:26,440 Speaker 1: charge of the police department. I don't need approval to 223 00:13:26,480 --> 00:13:29,320 Speaker 1: put in place a plain close anti gun unit. And 224 00:13:29,360 --> 00:13:31,760 Speaker 1: we're going to do our job and let others do 225 00:13:31,920 --> 00:13:35,000 Speaker 1: their jobs. We're speaking with Eric Adams, new York City 226 00:13:35,120 --> 00:13:39,920 Speaker 1: mayor elect. Mr Adams. You know this is this is Bloomberg. 227 00:13:39,960 --> 00:13:42,720 Speaker 1: We think about the markets, we think about um, you know, 228 00:13:42,800 --> 00:13:45,600 Speaker 1: stock exchanges and and right now you know, as we know, 229 00:13:45,640 --> 00:13:49,160 Speaker 1: New York City has been the global leader in global finance. 230 00:13:49,200 --> 00:13:51,520 Speaker 1: I think that's still the case today. The future is 231 00:13:51,520 --> 00:13:53,120 Speaker 1: going to be a little bit differently. We think about 232 00:13:53,120 --> 00:13:56,680 Speaker 1: some things like crypto that is a big, big growth 233 00:13:56,679 --> 00:14:00,679 Speaker 1: of business within the financial services industry and technology. How 234 00:14:00,720 --> 00:14:03,000 Speaker 1: are you going to make New York City a crypto 235 00:14:03,240 --> 00:14:06,400 Speaker 1: friendly city, a crypto leader? Uh? And how would that 236 00:14:06,480 --> 00:14:10,000 Speaker 1: benefit the city? Well, part of the meetings I have 237 00:14:10,080 --> 00:14:13,440 Speaker 1: been having UH is to bring together the whole big 238 00:14:13,520 --> 00:14:16,480 Speaker 1: cooin industry, and we need to do several things with it. 239 00:14:16,559 --> 00:14:19,680 Speaker 1: Number one, we need to look at what's prevented the 240 00:14:19,760 --> 00:14:24,160 Speaker 1: growth of big coins and cryptocurrency in our city. What 241 00:14:24,280 --> 00:14:25,600 Speaker 1: is it in the way of that. I met with 242 00:14:25,640 --> 00:14:27,640 Speaker 1: the mayor of Miami and we're going to have a 243 00:14:27,680 --> 00:14:32,920 Speaker 1: friendly competition. Uh. He's extremely inviting. He has a Miami 244 00:14:33,080 --> 00:14:36,200 Speaker 1: Miami coin that is doing very well. We're going to 245 00:14:36,200 --> 00:14:38,640 Speaker 1: look in the direction to carry that out. We're also 246 00:14:38,680 --> 00:14:41,040 Speaker 1: going to do something else. We have to build out 247 00:14:41,040 --> 00:14:43,800 Speaker 1: a pipeline of young people that can field these jobs 248 00:14:43,840 --> 00:14:47,080 Speaker 1: and understand the new technology. Because we can't have a 249 00:14:47,160 --> 00:14:51,800 Speaker 1: one sided city where certain groups and areas are doing 250 00:14:51,840 --> 00:14:54,200 Speaker 1: well and those of the inner cities are not. I'm 251 00:14:54,240 --> 00:14:57,280 Speaker 1: going to build the pipeline to success in the city. 252 00:14:57,560 --> 00:14:59,680 Speaker 1: Mary Adams. Uh, we have to wrap this up as 253 00:14:59,720 --> 00:15:02,200 Speaker 1: you go of Bloomberg Television to speak with John Farrell. 254 00:15:02,200 --> 00:15:05,720 Speaker 1: Good luck with that. Uh. And I'm kidding, but but but, 255 00:15:05,880 --> 00:15:08,680 Speaker 1: Mary Adams, you walked in once is a tough kid 256 00:15:08,680 --> 00:15:13,640 Speaker 1: in Brooklyn to precinct. That's not tough, that's fancy Fort Green. 257 00:15:13,760 --> 00:15:16,640 Speaker 1: I mean, you're living large in Fort Green. You've got 258 00:15:16,640 --> 00:15:19,960 Speaker 1: to walk in to a fancy Ford Green or some 259 00:15:20,000 --> 00:15:23,120 Speaker 1: of the toughest districts in this city. Is an ex 260 00:15:23,200 --> 00:15:27,640 Speaker 1: cop with people who maybe didn't vote for you, maybe 261 00:15:27,720 --> 00:15:30,680 Speaker 1: didn't get behind you because they have a more traditional view. 262 00:15:31,320 --> 00:15:34,440 Speaker 1: How do you make peace with the line officers of 263 00:15:34,440 --> 00:15:39,280 Speaker 1: the New York Police Department. Well, first, it's very important 264 00:15:39,440 --> 00:15:43,040 Speaker 1: not to view geographical areas of the city during our 265 00:15:43,040 --> 00:15:46,480 Speaker 1: current time. Yes, for Green is wonderful right now with 266 00:15:46,560 --> 00:15:49,720 Speaker 1: multimillion dollar homes. But I was there when we were 267 00:15:49,760 --> 00:15:53,360 Speaker 1: dealing with real robberies, real crimes. And I also controlled 268 00:15:53,440 --> 00:15:56,160 Speaker 1: this city at the transit cop during the mid eighties 269 00:15:56,240 --> 00:15:58,640 Speaker 1: Ryan and subway system with a radio that did not 270 00:15:58,720 --> 00:16:03,000 Speaker 1: operate alone by myself. So we start talking about tough, 271 00:16:03,400 --> 00:16:05,800 Speaker 1: That's what I know. It's tough getting off the flow 272 00:16:05,800 --> 00:16:08,240 Speaker 1: of a police and after you are rested, tough in 273 00:16:08,320 --> 00:16:11,840 Speaker 1: a dishwasher, going to school at night, surviving education with 274 00:16:11,880 --> 00:16:15,400 Speaker 1: a learning disability that was undiagnosed. Tough is not something 275 00:16:15,440 --> 00:16:17,800 Speaker 1: I'm afraid of, and tough is not something that New 276 00:16:17,880 --> 00:16:20,520 Speaker 1: York is off radio. We're resilient and we're going to 277 00:16:20,560 --> 00:16:23,880 Speaker 1: be fine. New York is bad. I'm Bloomberg Radio, Eric 278 00:16:23,920 --> 00:16:27,320 Speaker 1: Adams with us. He will continue, I'm Bloomberg Television worldwide 279 00:16:27,720 --> 00:16:30,520 Speaker 1: as well. Mayor Adams, congratulations and thank you so much 280 00:16:30,560 --> 00:16:32,960 Speaker 1: for joining us as well. Boy Paul, is that a 281 00:16:33,000 --> 00:16:35,960 Speaker 1: different tone from I mean, I'm not trying to get 282 00:16:36,000 --> 00:16:38,120 Speaker 1: into the politics of it. I will state as a 283 00:16:38,240 --> 00:16:40,320 Speaker 1: fact that's a different That is a different tone, and 284 00:16:40,360 --> 00:16:42,800 Speaker 1: it's probably reflective of what a lot of folks in 285 00:16:42,800 --> 00:16:44,320 Speaker 1: New York City you're feeling, which is we need to 286 00:16:44,360 --> 00:16:46,960 Speaker 1: kind of get control back at this city here. Um. 287 00:16:47,320 --> 00:16:49,640 Speaker 1: And so that's certainly been one of the messages from 288 00:16:49,640 --> 00:16:52,560 Speaker 1: Mayor elect Adams. And so again he'll have a you know, 289 00:16:52,800 --> 00:16:55,240 Speaker 1: as you mentioned in your question, you know that's those 290 00:16:55,240 --> 00:16:57,840 Speaker 1: first thirty days. Boy, there's a lot to get done 291 00:16:57,840 --> 00:17:00,560 Speaker 1: and and and setting the tone. I guess him longer 292 00:17:00,600 --> 00:17:04,760 Speaker 1: than thirty days. But but to all of our audience 293 00:17:04,800 --> 00:17:08,520 Speaker 1: worldwide and across this nation, unfortunately, what the mayor talks 294 00:17:08,560 --> 00:17:13,600 Speaker 1: about on people's fears, it's true. It's across all income 295 00:17:13,680 --> 00:17:17,480 Speaker 1: levels everyone. You just could feel it in the city. Ye. 296 00:17:17,840 --> 00:17:20,560 Speaker 1: And it's tangible. Yeah. And if we've we've seen this 297 00:17:20,600 --> 00:17:22,439 Speaker 1: before in New York City, and if you could if 298 00:17:22,440 --> 00:17:24,800 Speaker 1: you can get that under control, if you can get 299 00:17:24,800 --> 00:17:27,280 Speaker 1: that managed, and then a lot of other things fall 300 00:17:27,320 --> 00:17:31,600 Speaker 1: into place, whether it's investment, whether it's tourism, um and um. 301 00:17:31,720 --> 00:17:34,320 Speaker 1: But that we've seen this before, and we've seen we 302 00:17:34,400 --> 00:17:37,159 Speaker 1: have a playbook, and you know certainly would need to 303 00:17:37,160 --> 00:17:39,800 Speaker 1: be adjusted for the times presumably, but that will probably 304 00:17:39,920 --> 00:17:43,159 Speaker 1: one of the, if not the leading job for the 305 00:17:43,160 --> 00:17:45,800 Speaker 1: mayor elect on day one. You see how I behave myself? Yeah, 306 00:17:45,920 --> 00:17:48,160 Speaker 1: very well, I said very well. I didn't say, Mr 307 00:17:48,240 --> 00:17:52,639 Speaker 1: Mayor the pothole. If they haven't fourth Street, can we 308 00:17:52,680 --> 00:17:55,919 Speaker 1: get that fixed? Exactly? I didn't bring up Street between 309 00:17:56,200 --> 00:18:06,360 Speaker 1: six and exactly as we can do. We can rip 310 00:18:06,440 --> 00:18:08,919 Speaker 1: up the script with Abby Joseph Coh and she has 311 00:18:08,960 --> 00:18:12,040 Speaker 1: acclaimed at Golden Sax. She is one of the people 312 00:18:12,160 --> 00:18:16,080 Speaker 1: that keeps the fearful in the market participating and David 313 00:18:16,160 --> 00:18:19,359 Speaker 1: Costan's great bull market over at the Goldmen Sax shop. 314 00:18:19,760 --> 00:18:23,240 Speaker 1: We're thrilled at the advisory director and senior investment strategist 315 00:18:23,280 --> 00:18:25,960 Speaker 1: at Golden Sex joins us this morning. Abby, I'm going 316 00:18:26,000 --> 00:18:27,800 Speaker 1: to rip up the script and I can do this 317 00:18:28,200 --> 00:18:32,119 Speaker 1: for someone who wrote Aristotle on investment decision making in 318 00:18:32,119 --> 00:18:36,400 Speaker 1: the Financial Analyst Journal a million years ago. Abby, we're 319 00:18:36,480 --> 00:18:40,840 Speaker 1: all getting length here. We're all playing the parlor game 320 00:18:40,920 --> 00:18:47,720 Speaker 1: of extending the X axis. We've been here before, haven't we. 321 00:18:47,720 --> 00:18:50,159 Speaker 1: We certainly have Tom and it's a pleasure to be 322 00:18:50,280 --> 00:18:53,399 Speaker 1: with you in the team. Another word we could use 323 00:18:53,520 --> 00:18:59,159 Speaker 1: is protracted. Basically, there are several factors now behind the 324 00:18:59,160 --> 00:19:03,000 Speaker 1: inflation that we're seeing globally. Some of these may prove 325 00:19:03,080 --> 00:19:06,919 Speaker 1: to be transitory, yet protracted. That includes some of the 326 00:19:06,960 --> 00:19:10,840 Speaker 1: supply chain issues but some of them do represent the 327 00:19:10,880 --> 00:19:14,080 Speaker 1: sort of inflation that one gets during the course of 328 00:19:14,119 --> 00:19:17,720 Speaker 1: an economic expansion, And the one that I'm looking at 329 00:19:17,800 --> 00:19:22,240 Speaker 1: most closely has to do with wages. We have seen 330 00:19:22,560 --> 00:19:26,399 Speaker 1: a notable pickup in average hourly earnings, and on the 331 00:19:26,400 --> 00:19:30,399 Speaker 1: one hand, that's terrific because it says something about the 332 00:19:30,400 --> 00:19:34,600 Speaker 1: ability of consumers to continue to spend, and it also 333 00:19:35,040 --> 00:19:38,199 Speaker 1: tries to get across the idea that we did go 334 00:19:38,280 --> 00:19:41,880 Speaker 1: through an extended period prior to the pandemic in which 335 00:19:41,920 --> 00:19:46,000 Speaker 1: wages were not quite keeping up. However, if those wages 336 00:19:46,040 --> 00:19:49,280 Speaker 1: get embedded um in the economy, what we do see 337 00:19:49,359 --> 00:19:52,359 Speaker 1: is that core c P I and more importantly for 338 00:19:52,400 --> 00:19:57,440 Speaker 1: the Fed core pc E UH moves up. But the 339 00:19:57,560 --> 00:20:02,760 Speaker 1: expectation of my Goldman Sack economist colleagues is that we 340 00:20:02,800 --> 00:20:05,879 Speaker 1: will start to see that calm down. One other point, 341 00:20:05,920 --> 00:20:08,359 Speaker 1: if I may, and that is we're still in a 342 00:20:08,440 --> 00:20:12,679 Speaker 1: period where you and your comparisons are really difficult to 343 00:20:12,720 --> 00:20:17,880 Speaker 1: do because we are emerging from this extraordinary period. Now, 344 00:20:18,119 --> 00:20:22,600 Speaker 1: a year ago, personal spending was negative UH. This year 345 00:20:22,640 --> 00:20:25,480 Speaker 1: it's positive. So what do we think is going to happen? 346 00:20:26,040 --> 00:20:28,199 Speaker 1: They're going to be some price pressures and they're going 347 00:20:28,240 --> 00:20:30,399 Speaker 1: to be some supply chain pressures as well. I mean, 348 00:20:30,480 --> 00:20:32,960 Speaker 1: let's do some Cornell mathematics here, and it's about the 349 00:20:33,040 --> 00:20:35,640 Speaker 1: rates of change and the dynamics involved, and we can 350 00:20:35,760 --> 00:20:37,880 Speaker 1: look at wage growth is I I agree with your 351 00:20:37,880 --> 00:20:43,199 Speaker 1: core theme there is well. The gloom Crew speaks of 352 00:20:43,240 --> 00:20:47,520 Speaker 1: abrupt They speak of gross second derivatives and even harmful 353 00:20:47,560 --> 00:20:52,159 Speaker 1: first derivatives. Your shop says, calm down, state why we 354 00:20:52,200 --> 00:20:56,719 Speaker 1: should calm down and avoid the fear of dynamics. I 355 00:20:56,760 --> 00:20:59,439 Speaker 1: think we should calm down for a few reasons. Tom 356 00:20:59,560 --> 00:21:02,840 Speaker 1: One is, as you point out, the mathematics, uh, the 357 00:21:02,920 --> 00:21:06,560 Speaker 1: year in your comparisons are really fraught right now, and 358 00:21:06,600 --> 00:21:10,320 Speaker 1: we'd much rather look at an extended period of what's 359 00:21:10,359 --> 00:21:13,160 Speaker 1: happening and what's happening at the core level. The other 360 00:21:13,200 --> 00:21:15,280 Speaker 1: thing we need to keep in mind is that there 361 00:21:15,280 --> 00:21:18,920 Speaker 1: are several factors out there, three big ones that work 362 00:21:19,000 --> 00:21:23,240 Speaker 1: in the opposite direction, that may suggest that economic growth 363 00:21:23,280 --> 00:21:27,400 Speaker 1: will actually have the breaks somewhat applied, even if the 364 00:21:27,400 --> 00:21:31,560 Speaker 1: FED doesn't do anything. What are they? Number one, we 365 00:21:31,600 --> 00:21:35,280 Speaker 1: are seeing right now a change in fiscal policy, and 366 00:21:35,280 --> 00:21:38,639 Speaker 1: I'm not talking about the packages that are stuck in Congress. 367 00:21:38,680 --> 00:21:42,480 Speaker 1: What we're seeing is that the programs that were previously 368 00:21:42,560 --> 00:21:47,760 Speaker 1: implemented are rolling off, and so the increase in federal spending, 369 00:21:48,600 --> 00:21:51,760 Speaker 1: which was as you know, robust and equal to about 370 00:21:51,840 --> 00:21:55,840 Speaker 1: nine percent of GDP earlier in the pandemic, is now 371 00:21:55,920 --> 00:21:59,240 Speaker 1: going to be growing at about one percent, and if 372 00:21:59,520 --> 00:22:04,200 Speaker 1: fiscal policy isn't changed, it will be down about two 373 00:22:04,560 --> 00:22:08,560 Speaker 1: next year in two So that's a bit of a break. Uh. 374 00:22:08,600 --> 00:22:10,919 Speaker 1: The other thing that we have to keep in mind 375 00:22:11,320 --> 00:22:14,359 Speaker 1: is that we are not seeing of the sword of 376 00:22:14,920 --> 00:22:19,640 Speaker 1: wrote rebound that many had expected in terms of employment. 377 00:22:20,040 --> 00:22:22,879 Speaker 1: Not talking about the unemployment rate, I'm talking about the 378 00:22:22,920 --> 00:22:26,040 Speaker 1: participation rate, where there are many groups of people who 379 00:22:26,040 --> 00:22:28,600 Speaker 1: are saying either they don't want to come back into 380 00:22:28,640 --> 00:22:30,800 Speaker 1: the workforce, where they don't want to do it now. 381 00:22:31,280 --> 00:22:34,719 Speaker 1: So this includes working moms who are having a problem 382 00:22:34,760 --> 00:22:38,119 Speaker 1: with childcare and their kids are not yet vaccinated. It 383 00:22:38,200 --> 00:22:42,879 Speaker 1: includes retirees. Uh, the baby boom generation a very large 384 00:22:42,920 --> 00:22:46,720 Speaker 1: cohort in the United States. UM. And let's not forget 385 00:22:46,800 --> 00:22:50,520 Speaker 1: the missing immigrants. In the decade prior to the pandemic, 386 00:22:50,760 --> 00:22:53,800 Speaker 1: about ten percent of the net growth in the US 387 00:22:53,920 --> 00:22:56,879 Speaker 1: labor force was due to immigration, both at the lower 388 00:22:57,000 --> 00:23:00,640 Speaker 1: end of the spectrum and at the high end very 389 00:23:00,720 --> 00:23:04,639 Speaker 1: skilled people. We've seen that reduce one more factor, if 390 00:23:04,680 --> 00:23:09,000 Speaker 1: I may, and that is while the US and many 391 00:23:09,000 --> 00:23:13,879 Speaker 1: other nations are slowly now emerging from pandemic restrictions, China 392 00:23:14,320 --> 00:23:19,719 Speaker 1: is extremely tough on these restrictions. And China has roughly 393 00:23:20,119 --> 00:23:24,320 Speaker 1: of the world's global manufacturing capacity. If they tighten up 394 00:23:24,720 --> 00:23:29,720 Speaker 1: or stay tight, that has implications for economic growth. Everyone's 395 00:23:29,760 --> 00:23:34,280 Speaker 1: been focusing on the supply chain and the inflationary aspects. 396 00:23:34,440 --> 00:23:37,199 Speaker 1: It also has impact on the growth abby. All of 397 00:23:37,240 --> 00:23:40,600 Speaker 1: this sounds fairly negative. However, I wonder if the biggest 398 00:23:40,600 --> 00:23:43,760 Speaker 1: pain trade in markets is not being bullish enough, because 399 00:23:43,760 --> 00:23:47,080 Speaker 1: it's frankly supports the idea of real yields being as 400 00:23:47,119 --> 00:23:50,080 Speaker 1: negative as they are, and they're being a supportive backdrop 401 00:23:50,400 --> 00:23:53,879 Speaker 1: for risk at least been in monetary and fiscal policy standpoint. 402 00:23:53,920 --> 00:23:56,119 Speaker 1: Do you agree that pain the pain trade is not 403 00:23:56,160 --> 00:24:00,560 Speaker 1: being bullish enough, not necessarily being barished, potentially failing to 404 00:24:00,640 --> 00:24:04,000 Speaker 1: be so. Yeah, you know, the the economics team that 405 00:24:04,080 --> 00:24:07,080 Speaker 1: I work with does believe this will be a protracted 406 00:24:07,119 --> 00:24:11,679 Speaker 1: process that the FED if it does announce this afternoon, 407 00:24:11,840 --> 00:24:14,439 Speaker 1: as they have signaled that they're going to taper, they 408 00:24:14,480 --> 00:24:18,119 Speaker 1: will taple taper very gradually, and that the rise in 409 00:24:18,480 --> 00:24:21,320 Speaker 1: rates from the Fed funds level in any event could 410 00:24:21,320 --> 00:24:24,119 Speaker 1: be a year off. But we've already seen, as you 411 00:24:24,240 --> 00:24:28,080 Speaker 1: pointed out earlier, that interest rates have already risen in 412 00:24:28,200 --> 00:24:32,080 Speaker 1: anticipation of this happening. And so the key for the 413 00:24:32,200 --> 00:24:37,200 Speaker 1: stock market in particular will be economic growth and earnings growth. 414 00:24:37,400 --> 00:24:40,959 Speaker 1: And here again I would urge people to recognize that 415 00:24:41,000 --> 00:24:43,720 Speaker 1: those year on year comparisons are going to be very 416 00:24:43,720 --> 00:24:46,720 Speaker 1: difficult to do, uh, simply because we're coming from a 417 00:24:46,800 --> 00:24:51,520 Speaker 1: base that was so incredibly depressed in many industries that 418 00:24:51,600 --> 00:24:56,960 Speaker 1: to talk about that growth rate decelerating, Still good, earning, 419 00:24:57,040 --> 00:25:00,719 Speaker 1: still growing, but the growth rate decelerating, you know, as 420 00:25:00,880 --> 00:25:03,320 Speaker 1: as Tom would put it, the second derivative is not 421 00:25:04,040 --> 00:25:06,520 Speaker 1: like but it's still going to be a good number. 422 00:25:06,560 --> 00:25:08,399 Speaker 1: And I think I've just got a final question to 423 00:25:08,440 --> 00:25:10,960 Speaker 1: squeeze in. Are we doing the Tom Keane, Abby, Joseph 424 00:25:11,000 --> 00:25:13,639 Speaker 1: coming Christmas mesh all this year? Is that happening some? 425 00:25:14,280 --> 00:25:16,399 Speaker 1: It's up to Miss Joseph Cohen. Her people have not 426 00:25:16,520 --> 00:25:18,720 Speaker 1: talked about can your talent sappy? Is it happening? I 427 00:25:18,760 --> 00:25:20,480 Speaker 1: look forward to this every year? Are we doing it? 428 00:25:20,520 --> 00:25:24,200 Speaker 1: I It will depend up on what Tom has to say. Okay, well, 429 00:25:24,320 --> 00:25:27,760 Speaker 1: very good, whether I whether I get that invitation. I'm 430 00:25:27,880 --> 00:25:32,320 Speaker 1: I'm I'm writing good Christians, John, Can I summarize that? 431 00:25:32,400 --> 00:25:36,720 Speaker 1: I believe it was Joseph Cohen? Uh just predicted SPX 432 00:25:36,760 --> 00:25:40,639 Speaker 1: six thousand. That's what they took out that your inte 433 00:25:40,680 --> 00:25:45,199 Speaker 1: for the Christmas special next stage six un you know, 434 00:25:45,280 --> 00:25:47,520 Speaker 1: I'm sorry, David, it won't happen again. It will never 435 00:25:47,560 --> 00:25:51,639 Speaker 1: happen again, David, Thank you Joseph Cohen again. Happy Joseph 436 00:25:51,720 --> 00:26:01,360 Speaker 1: khin there of government sacks on the secuity market, surveillance fact, 437 00:26:01,440 --> 00:26:04,200 Speaker 1: John Farrell, Lisa Bramwits and I all at gunpoint had 438 00:26:04,200 --> 00:26:06,480 Speaker 1: to read Dickens Tale of to City. He read it 439 00:26:06,480 --> 00:26:09,040 Speaker 1: because he wanted to. Michael Gapon joins us on the 440 00:26:09,040 --> 00:26:13,560 Speaker 1: tail of two tapers now chief US economist Barkley's investment Bank. 441 00:26:13,840 --> 00:26:17,240 Speaker 1: How is a Treasury taper, Michael Gaping different from a 442 00:26:17,280 --> 00:26:20,560 Speaker 1: FED taper? I think it's mainly because the Fed is 443 00:26:20,600 --> 00:26:23,760 Speaker 1: a is a unique holder of treasury securities. Of course, 444 00:26:23,800 --> 00:26:27,200 Speaker 1: they have different incentives, different holding periods, They're different actors. 445 00:26:27,240 --> 00:26:30,119 Speaker 1: So I think it's it's more about yes on that 446 00:26:30,320 --> 00:26:33,119 Speaker 1: these two things are generally canceling themselves out. But the 447 00:26:33,160 --> 00:26:35,120 Speaker 1: feed is backing out of the market is a very 448 00:26:35,240 --> 00:26:38,840 Speaker 1: unique buyer. I think that's still the the main message. 449 00:26:38,920 --> 00:26:42,520 Speaker 1: So I wouldn't take the net the net comparison too far. 450 00:26:42,640 --> 00:26:44,520 Speaker 1: I do think the big news is the Fed. The 451 00:26:44,560 --> 00:26:47,240 Speaker 1: FED will be tapering. The big news is they'll be tapering, 452 00:26:47,400 --> 00:26:51,040 Speaker 1: and they will be cautious and conservative. Is the August 453 00:26:51,080 --> 00:26:56,800 Speaker 1: institution is in this November. How measured will Chairman Powell be? 454 00:26:57,760 --> 00:26:59,760 Speaker 1: I think it'll be a fairly measured. Typically when the 455 00:26:59,800 --> 00:27:03,000 Speaker 1: Fed it is tightening policy in some form, they like 456 00:27:03,119 --> 00:27:05,439 Speaker 1: to offset it by giving you a little something on 457 00:27:05,480 --> 00:27:08,000 Speaker 1: the other side. And and I don't think that's going 458 00:27:08,040 --> 00:27:10,879 Speaker 1: to be a strong pushback against market pricing. I just 459 00:27:10,920 --> 00:27:13,679 Speaker 1: think it will be an emphasis that the decision to 460 00:27:13,760 --> 00:27:16,120 Speaker 1: taper and the decision to lift rates are two very 461 00:27:16,160 --> 00:27:19,000 Speaker 1: different things. They have different criterion. The bar for lifting 462 00:27:19,080 --> 00:27:21,440 Speaker 1: rates is higher, and that's a long way off. So 463 00:27:21,480 --> 00:27:23,520 Speaker 1: I think that's that's going to be what he'll try 464 00:27:23,560 --> 00:27:26,120 Speaker 1: to kind of soft pedal to taper message with yes, 465 00:27:26,160 --> 00:27:29,280 Speaker 1: we're starting to taper, Yes we're still concerned about risk 466 00:27:29,320 --> 00:27:31,760 Speaker 1: to the outlook for inflation next year. Yes, there's a 467 00:27:31,880 --> 00:27:35,679 Speaker 1: risk management component to this decision, but you know, really 468 00:27:35,880 --> 00:27:39,159 Speaker 1: don't push this too far. There are two separate decisions. 469 00:27:39,240 --> 00:27:42,359 Speaker 1: I think that's where his cautious will will come in. Michael, 470 00:27:42,400 --> 00:27:44,000 Speaker 1: do you expect him to say that we expect a 471 00:27:44,080 --> 00:27:48,960 Speaker 1: lengthier transitory period going forward. I think that's so he 472 00:27:49,040 --> 00:27:51,159 Speaker 1: were debating this in the last segment. It kind of 473 00:27:51,200 --> 00:27:54,359 Speaker 1: has become a dirty word. Um, it wasn't in his 474 00:27:54,440 --> 00:27:57,520 Speaker 1: press conference statement last time around. He didn't mention it 475 00:27:57,560 --> 00:28:00,359 Speaker 1: in the press conference itself. That word trans the tory, 476 00:28:00,400 --> 00:28:03,040 Speaker 1: it's in the statement. So yeah, I think that flavor 477 00:28:03,119 --> 00:28:06,000 Speaker 1: of that has to stay. I still think in general, 478 00:28:06,040 --> 00:28:08,840 Speaker 1: their forecasts are all consistent in ours are still very 479 00:28:08,880 --> 00:28:12,000 Speaker 1: consistent with a you know, a transitory or temporary impulse. 480 00:28:12,080 --> 00:28:14,360 Speaker 1: The duration of it is just longer than we than 481 00:28:14,400 --> 00:28:15,840 Speaker 1: we thought. So I think they have to find a 482 00:28:15,840 --> 00:28:19,080 Speaker 1: way to keep that flavor around, but maybe back away 483 00:28:19,119 --> 00:28:21,639 Speaker 1: from the pure usage of of that word. What's the 484 00:28:21,640 --> 00:28:25,040 Speaker 1: potential market reaction if fed share J. Powell does not 485 00:28:25,200 --> 00:28:28,760 Speaker 1: push back significantly against the idea of one or even 486 00:28:28,800 --> 00:28:31,560 Speaker 1: two rate hikes next year. Well, in the short run. 487 00:28:31,800 --> 00:28:34,240 Speaker 1: It may mean that the market moves to to pricing 488 00:28:34,880 --> 00:28:38,240 Speaker 1: more hikes, as they've done elsewhere. So and as certainly 489 00:28:38,240 --> 00:28:42,160 Speaker 1: they did say immediately following Legard's press conference, uh, you 490 00:28:42,200 --> 00:28:45,240 Speaker 1: know previously. So. But from the Fed's point of view, 491 00:28:45,720 --> 00:28:47,360 Speaker 1: and I think they're right on this, it's a long 492 00:28:47,400 --> 00:28:50,080 Speaker 1: way out for them. It's at least six months down 493 00:28:50,120 --> 00:28:52,520 Speaker 1: the road for them. Given what they know today, they 494 00:28:52,560 --> 00:28:55,880 Speaker 1: don't really have any incentive to push back strongly against 495 00:28:55,880 --> 00:28:59,080 Speaker 1: market pricing or or confirm it. So, you know, I 496 00:28:59,080 --> 00:29:01,720 Speaker 1: think on this point, it's get the taper decision done, 497 00:29:02,200 --> 00:29:04,960 Speaker 1: communicate that there are two separate decisions in terms of 498 00:29:05,000 --> 00:29:08,000 Speaker 1: tapering versus liftoff, and kind of let the markets have 499 00:29:08,080 --> 00:29:11,640 Speaker 1: at it. Michael, frame for us the immovable force of 500 00:29:11,760 --> 00:29:16,760 Speaker 1: gross excess savings or I should say excess gross savings 501 00:29:17,240 --> 00:29:21,320 Speaker 1: and also the immovable forces everybody's moving their terminal values 502 00:29:21,680 --> 00:29:26,720 Speaker 1: out to a lengthier out. Put those two together right now. Yeah. 503 00:29:26,760 --> 00:29:28,440 Speaker 1: I think part of it is so there is this 504 00:29:28,800 --> 00:29:31,200 Speaker 1: big pool of excess saving that's out there, and it's 505 00:29:31,240 --> 00:29:34,760 Speaker 1: still we're just really now getting to the point whether 506 00:29:34,840 --> 00:29:37,320 Speaker 1: we will know whether households are going to be drawing 507 00:29:37,360 --> 00:29:39,680 Speaker 1: down on that pool of saving if if they do, 508 00:29:39,720 --> 00:29:42,480 Speaker 1: because really right now it's government stimulus has faded out 509 00:29:42,520 --> 00:29:46,000 Speaker 1: to the point where the personal savings rate is almost 510 00:29:46,000 --> 00:29:49,120 Speaker 1: back to pre pandemic levels. So you could see a 511 00:29:49,160 --> 00:29:52,239 Speaker 1: situation now where the saving rate goes below let's call 512 00:29:52,280 --> 00:29:55,600 Speaker 1: it low single digits, and we'll see whether households draw 513 00:29:55,680 --> 00:29:58,640 Speaker 1: down on that. If if they do, then that's a 514 00:29:58,680 --> 00:30:01,640 Speaker 1: situation where you could come buying that with with federal 515 00:30:01,680 --> 00:30:05,080 Speaker 1: spending or infrastructure spending, and you have a prolonged period 516 00:30:05,280 --> 00:30:08,800 Speaker 1: of above trend growth in in the future. Uh, and 517 00:30:08,880 --> 00:30:12,280 Speaker 1: depending on where inflation is, that could be a longer cycle. 518 00:30:12,400 --> 00:30:14,320 Speaker 1: So I think that's how I would interpret it in 519 00:30:14,440 --> 00:30:17,680 Speaker 1: terms of the contribution it could bring to demand, how 520 00:30:17,680 --> 00:30:20,520 Speaker 1: long it keeps growth above trend, and therefore what it 521 00:30:20,640 --> 00:30:23,320 Speaker 1: might mean for the duration of of the tightening cycle. Michael, 522 00:30:23,360 --> 00:30:26,640 Speaker 1: have we reached the point where jobs markets, jobs data 523 00:30:26,680 --> 00:30:28,400 Speaker 1: that we get as we're going to get on Friday, 524 00:30:28,800 --> 00:30:31,840 Speaker 1: really do indicate a shift or something true or are 525 00:30:31,880 --> 00:30:35,000 Speaker 1: we just still seeing the comeback of a market that 526 00:30:35,120 --> 00:30:38,400 Speaker 1: was so severely distorted by the pandemic. I think it's 527 00:30:38,440 --> 00:30:41,160 Speaker 1: the latter. I think this is you know, we've We've 528 00:30:41,200 --> 00:30:44,120 Speaker 1: debated about forecasts and the accuracy of models and so forth, 529 00:30:44,160 --> 00:30:46,120 Speaker 1: and you know, we can do that all day, but 530 00:30:46,160 --> 00:30:48,600 Speaker 1: I think this is one point where we in the 531 00:30:48,600 --> 00:30:51,600 Speaker 1: economist community, I think have been pretty consistent. We've said, 532 00:30:51,720 --> 00:30:53,920 Speaker 1: I believe it's going to take twelve to twenty four 533 00:30:53,960 --> 00:30:56,719 Speaker 1: to thirty six months to sort this all out. So 534 00:30:56,840 --> 00:30:58,720 Speaker 1: I'm still in that camp. If you look at the 535 00:30:58,880 --> 00:31:02,080 Speaker 1: at the data, for example, Bowl the data will tell 536 00:31:02,120 --> 00:31:04,680 Speaker 1: you about four million people were out of the job 537 00:31:04,760 --> 00:31:07,560 Speaker 1: market last month because either they had COVID or they 538 00:31:07,560 --> 00:31:10,960 Speaker 1: were taking care of somebody who has COVID. So that's 539 00:31:10,960 --> 00:31:14,680 Speaker 1: a huge number, and obviously that rotates over over time, 540 00:31:15,160 --> 00:31:17,240 Speaker 1: and the in terms of who's been out of the 541 00:31:17,320 --> 00:31:20,600 Speaker 1: labor force, it's it's mainly a married couple where financial 542 00:31:20,640 --> 00:31:24,160 Speaker 1: resources generally can be shared. So one person is stepping 543 00:31:24,160 --> 00:31:26,600 Speaker 1: out for one reason or another. There's a lot of 544 00:31:26,680 --> 00:31:29,040 Speaker 1: room for that to heal over time. We're not going 545 00:31:29,080 --> 00:31:31,040 Speaker 1: to know in the next two to three months whether 546 00:31:31,080 --> 00:31:34,120 Speaker 1: that changes. It's likely to be a long process. So 547 00:31:34,160 --> 00:31:36,520 Speaker 1: that's my view is it will come back more incrementally 548 00:31:36,560 --> 00:31:39,120 Speaker 1: and it's going to take six to nine to twelve 549 00:31:39,200 --> 00:31:41,560 Speaker 1: months to get a good idea of where that is, Michael. 550 00:31:41,560 --> 00:31:43,920 Speaker 1: Thank you, sir, Michael, gap in there. I appreciate the 551 00:31:43,960 --> 00:31:47,560 Speaker 1: sound of a busy office, a busy trading floor. Yes, 552 00:31:50,000 --> 00:31:51,840 Speaker 1: it's going to have you back. Thank you, sir. That's 553 00:31:51,880 --> 00:31:59,640 Speaker 1: always said the Glasgow, Scotland and catch up with Blimbergs 554 00:31:59,640 --> 00:32:02,760 Speaker 1: trying in likewise, but we still morning, Francine, and we 555 00:32:02,840 --> 00:32:06,800 Speaker 1: are still good morning John. I'm delighted actually to be 556 00:32:06,880 --> 00:32:08,720 Speaker 1: here AT's a day four, because it started on Sunday 557 00:32:08,760 --> 00:32:10,240 Speaker 1: a little bit quieter. I know there's a lot of 558 00:32:10,240 --> 00:32:12,560 Speaker 1: noise behind me, just because there's a lot of the 559 00:32:12,560 --> 00:32:15,280 Speaker 1: big Wall Street titans. I just saw very thing walks 560 00:32:15,280 --> 00:32:17,760 Speaker 1: through the planary because today is finance Day. We also 561 00:32:17,840 --> 00:32:20,840 Speaker 1: heard from Secretary yelling moments, oh go. I am delighted 562 00:32:20,880 --> 00:32:23,360 Speaker 1: to be joined now by the astro Zenica chief executive 563 00:32:23,400 --> 00:32:26,719 Speaker 1: officers that Pasca saw you to talk about all things sustainable, 564 00:32:26,920 --> 00:32:28,880 Speaker 1: and we'll also talk about the vaccines she saw you. 565 00:32:29,240 --> 00:32:31,560 Speaker 1: Thank you so much for joining us today. First of all, 566 00:32:31,600 --> 00:32:34,560 Speaker 1: it's a little bit counterintuitive. I know astro Zenica has 567 00:32:34,560 --> 00:32:36,680 Speaker 1: had some very good plans on Scope one, two and 568 00:32:36,720 --> 00:32:40,920 Speaker 1: also three, but it's counterintuitive to look at the medicine 569 00:32:40,920 --> 00:32:44,240 Speaker 1: industry and saying what you can do for sustainability Is 570 00:32:44,240 --> 00:32:47,320 Speaker 1: it all about drug disposal? How much cloud do you 571 00:32:47,360 --> 00:32:49,440 Speaker 1: think your industry has to actually make a real difference 572 00:32:49,440 --> 00:32:51,640 Speaker 1: to e s g. I've been ring France and then 573 00:32:51,720 --> 00:32:54,720 Speaker 1: thank you for having me the I think the pharmaceutical 574 00:32:54,800 --> 00:32:56,800 Speaker 1: industry and the heavy scares sector as a whole can 575 00:32:56,880 --> 00:32:59,960 Speaker 1: make a big impact. The heavy scares sector or globe 576 00:33:00,360 --> 00:33:02,920 Speaker 1: or presents about four percent of carbon emissions, so it's 577 00:33:03,000 --> 00:33:06,480 Speaker 1: quite substantial. And we can, of course as companies, work 578 00:33:06,520 --> 00:33:09,479 Speaker 1: on our own emissions, which you know as a company 579 00:33:09,520 --> 00:33:11,960 Speaker 1: we have a plan to do that by will be 580 00:33:12,480 --> 00:33:15,479 Speaker 1: carbon zero. From that view point, we can work on 581 00:33:15,520 --> 00:33:17,880 Speaker 1: our scopes three and our supply chain and we are 582 00:33:17,960 --> 00:33:20,880 Speaker 1: doing this as a company and I'm also working with 583 00:33:20,920 --> 00:33:23,000 Speaker 1: the rest of the industry to do that. And then 584 00:33:23,040 --> 00:33:25,960 Speaker 1: importantly we can work with the healthcare sector as a whole, 585 00:33:26,040 --> 00:33:28,440 Speaker 1: like the energys in the UK, to really make sure 586 00:33:28,480 --> 00:33:32,080 Speaker 1: we reduce carbon emissions across the entire sector. So I 587 00:33:32,080 --> 00:33:34,120 Speaker 1: guess the rest difficult thing is how do you dispose 588 00:33:34,160 --> 00:33:36,400 Speaker 1: in this? How do you dispose of it in a 589 00:33:36,440 --> 00:33:39,840 Speaker 1: safe way that's not damaging to the environment. How long 590 00:33:39,880 --> 00:33:42,280 Speaker 1: a way. Do we have to go until most medicine 591 00:33:42,360 --> 00:33:45,280 Speaker 1: ninety five percent of medicine or safe to dispose of? Well, 592 00:33:45,320 --> 00:33:47,360 Speaker 1: a lot of work is being done on this two. 593 00:33:47,720 --> 00:33:51,520 Speaker 1: But disposing of medicine is really a slightly different topic 594 00:33:51,560 --> 00:33:54,920 Speaker 1: compared to the carbon emission reduction we are committing to. 595 00:33:55,480 --> 00:33:58,240 Speaker 1: But a number of companies are really looking at how 596 00:33:58,240 --> 00:34:03,240 Speaker 1: do we actually recycle or dispose of our packaging of 597 00:34:03,280 --> 00:34:06,400 Speaker 1: our medicines and and recycle a lot of this in 598 00:34:06,400 --> 00:34:10,319 Speaker 1: in an environmentally friendly manner. Do you think that these 599 00:34:10,360 --> 00:34:13,440 Speaker 1: talks are we invigorating the infrasustainable? I mean, I mean 600 00:34:13,480 --> 00:34:16,120 Speaker 1: Curry here is very energizing, I have to say, because 601 00:34:16,200 --> 00:34:19,640 Speaker 1: I can sense the momentum is growing. Not only governments 602 00:34:19,680 --> 00:34:22,279 Speaker 1: are really making commitments, and I know that we would 603 00:34:22,320 --> 00:34:25,960 Speaker 1: always like to hear better, stronger commitments, but it goes 604 00:34:26,000 --> 00:34:29,000 Speaker 1: in their own the right direction. And importantly, the private 605 00:34:29,000 --> 00:34:31,279 Speaker 1: sector is not stepping up. Yeah, and now we need 606 00:34:31,320 --> 00:34:32,840 Speaker 1: to look at the details and where the money is 607 00:34:32,880 --> 00:34:35,239 Speaker 1: going and how you hold them accountable. But speaking of commitments, 608 00:34:35,239 --> 00:34:38,600 Speaker 1: what's your commitment to vaccines? Our commitment to vaccine is 609 00:34:38,640 --> 00:34:41,120 Speaker 1: really to bring this vaccine to as many people as 610 00:34:41,120 --> 00:34:44,080 Speaker 1: possible around the world, and so far we have delivered 611 00:34:44,120 --> 00:34:47,560 Speaker 1: one point at billion doses of vaccine globally, mostly to 612 00:34:47,600 --> 00:34:49,640 Speaker 1: the low medi on income countries, and so we are 613 00:34:49,719 --> 00:34:52,840 Speaker 1: very proud of this. Many people, thousands of people have 614 00:34:52,920 --> 00:34:55,560 Speaker 1: worked day and night over the last few months to 615 00:34:55,680 --> 00:34:58,480 Speaker 1: really deliver this vaccine that is making a huge difference 616 00:34:58,520 --> 00:35:01,279 Speaker 1: in many countries around the world. Which actually, what do 617 00:35:01,280 --> 00:35:04,200 Speaker 1: you make of the US of the new US pricing bill? 618 00:35:04,239 --> 00:35:06,759 Speaker 1: Actually in drugs, it seems to penalize some of the 619 00:35:06,800 --> 00:35:10,799 Speaker 1: smaller molecule drug development versus, for example, some of the biologics. Well, 620 00:35:10,920 --> 00:35:13,520 Speaker 1: you know, I mean we it was clear that something 621 00:35:13,600 --> 00:35:15,880 Speaker 1: has its clear something has to be done in the 622 00:35:15,960 --> 00:35:18,719 Speaker 1: United States to help patients get access to their medicine 623 00:35:19,280 --> 00:35:23,040 Speaker 1: at an affordable cost um. So we really welcome this 624 00:35:23,520 --> 00:35:28,439 Speaker 1: proposal to introduce a cap of two thousand dollar cap 625 00:35:28,680 --> 00:35:31,600 Speaker 1: of out of pocket costs for patients every year. That 626 00:35:31,680 --> 00:35:34,920 Speaker 1: will really help them take their medicine with that, you know, 627 00:35:35,200 --> 00:35:38,960 Speaker 1: the difficulties the face today, and we also understand that 628 00:35:39,080 --> 00:35:41,760 Speaker 1: something has to be done, and it's a negotiation between 629 00:35:41,800 --> 00:35:45,000 Speaker 1: industry and and all. The circle doesn't and I think 630 00:35:45,080 --> 00:35:48,319 Speaker 1: we we have to do this without destroying innovation, which 631 00:35:48,360 --> 00:35:50,560 Speaker 1: has been mostly in the US over the last number 632 00:35:50,560 --> 00:35:54,360 Speaker 1: of years. Actually, I believe that what the discussion is 633 00:35:54,400 --> 00:35:58,279 Speaker 1: going on today is really getting there. Actually, I understand 634 00:35:58,840 --> 00:36:01,560 Speaker 1: you know that the new bill so removes incentives to 635 00:36:01,760 --> 00:36:06,879 Speaker 1: test kids. What do you make about to test children? Um, 636 00:36:07,040 --> 00:36:08,799 Speaker 1: this I'm not aware of. I have to say I'm 637 00:36:08,840 --> 00:36:13,800 Speaker 1: sorry about this. But but the the discussion and the 638 00:36:14,400 --> 00:36:18,840 Speaker 1: decision that has been communicated overnight. Um, he's really balancing 639 00:36:18,920 --> 00:36:23,320 Speaker 1: quite well, reducing price, negotiating the price of sound drugs, 640 00:36:24,040 --> 00:36:27,520 Speaker 1: but at the same time protecting innovation. I mean, is 641 00:36:27,560 --> 00:36:29,279 Speaker 1: it you know, is there a danger that, because of 642 00:36:29,320 --> 00:36:31,600 Speaker 1: the pandemic, which I know has put really health at 643 00:36:31,600 --> 00:36:33,600 Speaker 1: the forefront, which means that a lot more people are 644 00:36:33,600 --> 00:36:37,560 Speaker 1: engaged with your industry, that as you're dealing with the pandemic, 645 00:36:37,719 --> 00:36:43,200 Speaker 1: it will not incentivize other companies, drug companies, healthcare companies 646 00:36:43,400 --> 00:36:47,120 Speaker 1: to decarbonize. Oh, I think the whole industry is actually 647 00:36:47,160 --> 00:36:50,920 Speaker 1: committed to committing not to the carbonizing. I you know, 648 00:36:50,960 --> 00:36:54,400 Speaker 1: I'm part of the task force within the SMI, the 649 00:36:54,480 --> 00:36:58,600 Speaker 1: Sustainable Market Initiatives launched by his oil hand as the 650 00:36:58,640 --> 00:37:02,000 Speaker 1: Prince child and as an industry we're working together to 651 00:37:02,120 --> 00:37:06,960 Speaker 1: the carbanas and reduce our carbon emissions in an accelerated manner. 652 00:37:07,000 --> 00:37:10,480 Speaker 1: So it's really quite exciting to see the pharmaceutical companies 653 00:37:10,480 --> 00:37:14,120 Speaker 1: coming together to work with our suppliers, but also to 654 00:37:14,160 --> 00:37:16,800 Speaker 1: work with and A, chess and other health scare systems 655 00:37:16,840 --> 00:37:19,239 Speaker 1: around the world so productively we can really reduce the 656 00:37:19,280 --> 00:37:22,440 Speaker 1: footprints you thanks so much for joining us. He is, 657 00:37:22,440 --> 00:37:28,839 Speaker 1: of course, the chief executive officer of astro Zeneca. Yeah, 658 00:37:31,040 --> 00:37:34,240 Speaker 1: another important story developing through the week over in Glasgow, Scotland. 659 00:37:34,320 --> 00:37:40,439 Speaker 1: Let's head back to catch up with Francine lay Friend. Hi, John, 660 00:37:40,480 --> 00:37:42,319 Speaker 1: Thank you so much for that. I'm delighted to be 661 00:37:42,360 --> 00:37:45,640 Speaker 1: joined by the President of Costa Rica, a President Alvarado, 662 00:37:45,680 --> 00:37:47,840 Speaker 1: to talk a little bit about his country, some of 663 00:37:47,840 --> 00:37:49,879 Speaker 1: the pledges here and of course what can be done 664 00:37:50,160 --> 00:37:52,480 Speaker 1: to save the planet. President, thanks so much for joining 665 00:37:52,560 --> 00:37:55,480 Speaker 1: us right here. Life on Bloomberg surveillance. Nearly a quarter 666 00:37:56,040 --> 00:37:59,120 Speaker 1: of your landmasses under some sort of conservation. You're doing 667 00:37:59,160 --> 00:38:03,239 Speaker 1: extremely well in terms of energy production electrifying into more 668 00:38:03,280 --> 00:38:08,640 Speaker 1: renewable sources. The big concern is transportation. About fifty of 669 00:38:08,640 --> 00:38:11,640 Speaker 1: your emissions come from transportation. That is still dirty. How 670 00:38:11,640 --> 00:38:14,359 Speaker 1: can you make it cleaner? Well, thanks for the opportunity. 671 00:38:14,440 --> 00:38:17,319 Speaker 1: It's a pleasure being with you in Bloomberg. Well, it's 672 00:38:17,360 --> 00:38:20,799 Speaker 1: true that our main fund print and falsil carbon fruit 673 00:38:20,840 --> 00:38:26,560 Speaker 1: print console transportation. Our electric grid. The electricity we produces 674 00:38:26,640 --> 00:38:32,160 Speaker 1: nine clean and renewable. So our great opportunity is to 675 00:38:32,360 --> 00:38:36,880 Speaker 1: electrify our transportation. So far, what we have done we 676 00:38:36,960 --> 00:38:40,040 Speaker 1: have increased the number of electric vehicles in Costa Rica. 677 00:38:40,120 --> 00:38:42,680 Speaker 1: We are the we have the highest per capita number 678 00:38:42,680 --> 00:38:46,520 Speaker 1: of vehicles electric vehicles in the region. That's one and 679 00:38:46,600 --> 00:38:49,920 Speaker 1: for that we have a tax relief on electric vehicles 680 00:38:50,120 --> 00:38:53,920 Speaker 1: and also we multiply the stations to charge vehicles so 681 00:38:54,000 --> 00:38:57,560 Speaker 1: you can go all across the country. Second, mass transportation, 682 00:38:57,640 --> 00:39:01,200 Speaker 1: we're building an electric train for are the main cities 683 00:39:01,239 --> 00:39:03,920 Speaker 1: eighty it's a project of eighty two kilometers and it's 684 00:39:03,960 --> 00:39:08,880 Speaker 1: also an electric train from clean electricity. What kind of 685 00:39:08,920 --> 00:39:11,360 Speaker 1: timeline can we actually see a meaningful difference? And we 686 00:39:11,400 --> 00:39:13,560 Speaker 1: look at the cars, what's selling? What do people want 687 00:39:13,600 --> 00:39:19,680 Speaker 1: to buy? Well, our timeline we launch it by February. 688 00:39:19,719 --> 00:39:22,440 Speaker 1: We were the first to launch our decarbranization plan and 689 00:39:22,520 --> 00:39:26,360 Speaker 1: we have a pathway from now to twenty fifty, but 690 00:39:26,480 --> 00:39:29,960 Speaker 1: by twenty thirty, we have to see a strong progress 691 00:39:30,239 --> 00:39:35,000 Speaker 1: in the electrification of our transportation to dramatically reduce our 692 00:39:35,080 --> 00:39:37,960 Speaker 1: carbon footprint. And that's what we are I mean also 693 00:39:38,400 --> 00:39:42,440 Speaker 1: with new schemes of public transportation, because we're not only 694 00:39:42,640 --> 00:39:46,920 Speaker 1: targeting to private vehicles but also public transportation to cleaner, 695 00:39:47,000 --> 00:39:49,479 Speaker 1: more efficient. The person talking to a little bit about 696 00:39:49,480 --> 00:39:51,360 Speaker 1: carbon market, First of all, are you pushing for some 697 00:39:51,440 --> 00:39:54,400 Speaker 1: kind of carbon markets offset? That will happen very quickly. 698 00:39:54,680 --> 00:39:57,440 Speaker 1: I know Panama is getting involved in carbon you know 699 00:39:57,480 --> 00:39:59,600 Speaker 1: we're going to have a price for carbon. Well, that's 700 00:39:59,640 --> 00:40:01,920 Speaker 1: one of the big discussions, and actually that's the discussion 701 00:40:01,960 --> 00:40:05,480 Speaker 1: our Article six that's going on in the negotiations during 702 00:40:05,880 --> 00:40:09,200 Speaker 1: this cup. Yes, we're pushing for that, but I think 703 00:40:09,239 --> 00:40:11,840 Speaker 1: one of the great discussions has to do with first 704 00:40:11,840 --> 00:40:14,759 Speaker 1: with trust, trust in the developing word that we're going 705 00:40:14,800 --> 00:40:17,680 Speaker 1: to implement the measures, and also trust from the developers 706 00:40:17,680 --> 00:40:22,120 Speaker 1: that they're going to commit finance, both public and private. 707 00:40:22,440 --> 00:40:25,799 Speaker 1: We have seen advancements and we have seen schemes, but 708 00:40:25,840 --> 00:40:27,880 Speaker 1: there are still too frial. I was gonna say, have 709 00:40:28,120 --> 00:40:30,399 Speaker 1: you seen enough? I mean, it's a billion enough yet? 710 00:40:30,640 --> 00:40:32,840 Speaker 1: Right when will we see it, and how much pressure 711 00:40:32,840 --> 00:40:34,799 Speaker 1: are you putting on some of the developing would be 712 00:40:35,120 --> 00:40:38,719 Speaker 1: we're being very open. I mean whenever I address the 713 00:40:38,760 --> 00:40:41,160 Speaker 1: floor a couple of times that I've done, I've been 714 00:40:41,400 --> 00:40:46,719 Speaker 1: very open and frank, because you see, there's the discussion 715 00:40:46,760 --> 00:40:51,000 Speaker 1: of the development countries are too risky. But here the 716 00:40:51,080 --> 00:40:54,080 Speaker 1: only risk I see is that if we don't act there, 717 00:40:54,120 --> 00:40:57,400 Speaker 1: there won't be any planet anymore. So I don't see 718 00:40:57,440 --> 00:41:00,799 Speaker 1: any risk higher than that. One risk is a matter 719 00:41:00,920 --> 00:41:04,520 Speaker 1: of u S measure also in time and framingess. And 720 00:41:04,640 --> 00:41:06,400 Speaker 1: you feel cheated by some of the top of metters. 721 00:41:06,440 --> 00:41:09,000 Speaker 1: I mean they also come from the developments of the word. 722 00:41:09,280 --> 00:41:12,960 Speaker 1: I think we need to to go further in our commitments. 723 00:41:13,000 --> 00:41:18,680 Speaker 1: I am confident because as as as humanity, I am optimistic. 724 00:41:19,040 --> 00:41:20,960 Speaker 1: How must the meat on the table to be sure 725 00:41:21,000 --> 00:41:23,439 Speaker 1: to implement some of the strategies that you have from 726 00:41:23,480 --> 00:41:27,640 Speaker 1: developed economies? Well, for example, through our policies like the 727 00:41:27,680 --> 00:41:32,120 Speaker 1: Hambition Coalition Forever Nature that is pushing to preserve thirty 728 00:41:32,160 --> 00:41:35,160 Speaker 1: percent of oceans and forty percent of lands. So far 729 00:41:35,280 --> 00:41:39,759 Speaker 1: we have we have we have gathered the support of 730 00:41:39,880 --> 00:41:47,320 Speaker 1: five billion dollars through philanthropy and that's a great start. Yesterday, Colombia, Ecuador, 731 00:41:47,440 --> 00:41:51,440 Speaker 1: Panama and Costa Rica were together announced the Protection of 732 00:41:51,480 --> 00:41:53,520 Speaker 1: our Oceans area, which is going to be one of 733 00:41:53,560 --> 00:41:56,000 Speaker 1: the largest in the Pacific and that support there also 734 00:41:56,040 --> 00:41:59,680 Speaker 1: by philanthropy and by all the contributors. We're in conversation 735 00:41:59,719 --> 00:42:02,600 Speaker 1: with the resident of Costa Rica when you look at 736 00:42:02,680 --> 00:42:04,400 Speaker 1: some of the things that have been on the table 737 00:42:04,400 --> 00:42:06,239 Speaker 1: and what more can we you know, can be done. 738 00:42:06,480 --> 00:42:09,640 Speaker 1: You're still dealing with a pandemic. Costa Rica is an 739 00:42:09,640 --> 00:42:13,040 Speaker 1: open economy. The pandemic and COVID nineteen is not out 740 00:42:13,040 --> 00:42:16,840 Speaker 1: of control. Is there danger that it derails you and 741 00:42:16,920 --> 00:42:20,400 Speaker 1: other countries actually in developing economies from reaching some of 742 00:42:20,400 --> 00:42:23,680 Speaker 1: the sustainability targets. Well, that's one of the great risks. 743 00:42:24,440 --> 00:42:29,160 Speaker 1: In our case. We have for the objective population twelve 744 00:42:30,080 --> 00:42:34,080 Speaker 1: age and older, we have more than eight eighty six 745 00:42:34,080 --> 00:42:36,520 Speaker 1: percent of a population with at least one doses, more 746 00:42:36,560 --> 00:42:40,040 Speaker 1: than sixty with two doses. So we have advanced in 747 00:42:40,080 --> 00:42:43,200 Speaker 1: that direction. But the fact, for example, that Africa's has 748 00:42:43,239 --> 00:42:45,960 Speaker 1: just five percent of people backs in it is a 749 00:42:46,000 --> 00:42:49,280 Speaker 1: great risk, not for Africa, for the rest of the world. 750 00:42:50,000 --> 00:42:52,000 Speaker 1: So then we need to tackle that because a new 751 00:42:52,080 --> 00:42:56,120 Speaker 1: variant can take us to the beginning. So we need 752 00:42:56,160 --> 00:42:59,120 Speaker 1: to tackle that second grade risk. And this is for 753 00:42:59,200 --> 00:43:02,360 Speaker 1: emergent economy, miss for the developing world, for Latin American 754 00:43:02,440 --> 00:43:05,480 Speaker 1: and the Caribbean. We've seen an increase on our fiscal 755 00:43:05,600 --> 00:43:09,640 Speaker 1: deficits because we have to increase expenditure to tackle the pandemic, 756 00:43:09,960 --> 00:43:15,280 Speaker 1: also increase expenditure to tackle climate change. Extreme weathers demand 757 00:43:15,360 --> 00:43:19,480 Speaker 1: governments to invest in emergencies, for example, and at the 758 00:43:19,480 --> 00:43:23,000 Speaker 1: same time do pandemic. We have seen a decrease on 759 00:43:23,120 --> 00:43:26,759 Speaker 1: the taxes we collect and those fiscal deficits are a 760 00:43:26,800 --> 00:43:29,600 Speaker 1: new risk that we face. We are facing a dead 761 00:43:29,760 --> 00:43:32,319 Speaker 1: risk throughout the region. All right, thank you so much. 762 00:43:32,360 --> 00:43:34,480 Speaker 1: Is it nice being back in then here? You studied here, Yes, 763 00:43:34,520 --> 00:43:37,600 Speaker 1: studied here. No, it's great. The only thing I didn't 764 00:43:37,640 --> 00:43:40,920 Speaker 1: miss is how cold it is. But I know it is. 765 00:43:41,160 --> 00:43:43,800 Speaker 1: It's freezing in Glasgow. Thank you so much. The President 766 00:43:44,239 --> 00:43:46,040 Speaker 1: of Costa Rica. With that time, I'm going to hand 767 00:43:46,080 --> 00:43:48,920 Speaker 1: it back to you. In New York, I imagine it's warmer. 768 00:43:49,320 --> 00:43:51,319 Speaker 1: I'm I'm not sure. Here it is pretty cool even 769 00:43:51,320 --> 00:43:53,640 Speaker 1: in the Congress Center France, saying I did not miss 770 00:43:53,640 --> 00:43:55,880 Speaker 1: the weather dint I miss you, I don't miss the 771 00:43:55,880 --> 00:43:59,279 Speaker 1: weather France, saying thank you very much from Glasgowscon. This 772 00:43:59,360 --> 00:44:03,160 Speaker 1: is the Bloomberg Surveillance Podcast. Thanks for listening. Join us 773 00:44:03,200 --> 00:44:06,960 Speaker 1: live weekdays from seven to ten am Eastern on Bloomberg 774 00:44:07,040 --> 00:44:10,880 Speaker 1: Radio and on Bloomberg Television each day from six to 775 00:44:11,040 --> 00:44:15,680 Speaker 1: nine am for insight from the best in economics, finance, investment, 776 00:44:15,800 --> 00:44:20,840 Speaker 1: and international relations. And subscribe to the Surveillance podcast on 777 00:44:20,920 --> 00:44:24,719 Speaker 1: Apple podcast, SoundCloud, Bloomberg dot com, and of course on 778 00:44:24,840 --> 00:44:29,040 Speaker 1: the terminal. I'm Tom keene In. This is Bloomberg