Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
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Speaker 2: right now, she's with Airbus Adventures. She's not with the Airbus,
Speaker 2: although she likes the Beluga, but she's with Airbus Ventures.
Speaker 2: No Cole Connor joins us here on investment in all
Speaker 2: of this, is there too much money chasing too few
Speaker 2: ideas or the other way around?
Speaker 3: It thinks the other way around. There's so many opportunities
Speaker 3: right now, and I think this is a really special
Speaker 3: time for venture capital and for these startups who are
Speaker 3: working on taking these important emerging technologies out of the
Speaker 3: lab and into the real world. At our fund, we're
Speaker 3: investing in everything from autonomy to electrification, the low carbon economy,
Speaker 3: news space, advanced materials, quantum computing, networking and sensing. And
Speaker 3: as we've seen a climate week, there's no end to
Speaker 3: the number of startups who are trying to solve these
Speaker 3: important challenges.
Speaker 2: You have a wonderful transatlantic view at Airbus Ventures. What
Speaker 2: I see when I'm in London or Paris is a
Speaker 2: huge success or belief in the future of climate versus
Speaker 2: a hugely fractious United States debate on climate. Describe that
Speaker 2: debate and how it affects investment.
Speaker 3: What we see is that we're you know, we're investing
Speaker 3: in CEEDD, siri B companies who are working on bricks
Speaker 3: of technology that are hoping to solve this challenge. We
Speaker 3: are uniquely positioned as one of the few global VC funds.
Speaker 3: We're investing all over the world, and what we see
Speaker 3: as an optimism on seeing how these technologies can help
Speaker 3: shape the future of tomorrow. Some of these technologies that
Speaker 3: will be changing products, you know, in decades time, So
Speaker 3: we have a very optimimistic view on the current environment.
Speaker 4: Help me with the term deep technology, So you invest
Speaker 4: in deep technology entrepreneurship, what does it mean and how
Speaker 4: does that set you apart from other VC shops.
Speaker 3: We're investing in the hardest engineering problems to solve, and
Speaker 3: the deep tech investment practice is extremely important in unlocking
Speaker 3: these opportunities down the chain. So when you think about
Speaker 3: I think about one of our portfolio companies who's sitting
Speaker 3: in the Brooklyn Navy Yard called que Net. They're working
Speaker 3: on quantum networking hardware. This is a product suite that
Speaker 3: will sit on existing telecom infrastructure to allow for quantum communications.
Speaker 3: Why that matters is that's ultra secure communication. So the
Speaker 3: national security sector is very interested in seeing even how
Speaker 3: if you can use their product suite to see if
Speaker 3: someone is tapping the line, and ultra secure communication matters
Speaker 3: for so many industries, finance, defense, national security, of course.
Speaker 3: So that's where we're focused on. How can we work
Speaker 3: on using these bricks of technology to unlock other problems.
Speaker 4: Nicole, We'll get Tom over to the Brooklyn Navy Yard here,
Speaker 4: we'll get you to Brooklyn at some point.
Speaker 3: Bagels crave that that's incredible community over there.
Speaker 4: Tell me about your background. I mean you are somebody's
Speaker 4: a lawyer. You're based in DC. I remember talking with
Speaker 4: Steve case a while back about sort of broadening the
Speaker 4: reach of VC beyond Boston, beyond the Bay Area. What
Speaker 4: added value perspective does that give you being based in
Speaker 4: Washington versus those other places.
Speaker 3: Well, certainly in the areas that we're investing. These are
Speaker 3: all on the Critical and Emerging Technologies list for the US.
Speaker 3: So many of our folio companies, they are in and
Speaker 3: out of DC, meeting with their customers, the agencies, the
Speaker 3: aerospace primes in Northern Virginia, their headmans on the hill.
Speaker 3: I think there is a strong appetite to better understand
Speaker 3: how these technologies can be plugged into other areas and
Speaker 3: challenges that we have. I would say, with my background,
Speaker 3: what we'd like to say within our fund is that
Speaker 3: we have a Swiss Army knife of a team. Founders
Speaker 3: have no end to the challenges that they need to navigate,
Speaker 3: and so yes, I bring my financial and operational background.
Speaker 3: We have aerospace engineers and mechanical engineers, physicists, all of whom
Speaker 3: are working with our founders to get their technologies out
Speaker 3: into the market.
Speaker 2: You are living the skepticism of America over climate change
Speaker 2: in this election of David's expert on the election. I'm not,
Speaker 2: but you go state to state, it's almost an unmentionable
Speaker 2: rather too candidates, how does America become more like Europe
Speaker 2: in climate change? Or do you suggest we stay distant
Speaker 2: from the enthusiasm.
Speaker 3: I think it's important to focus on the technologies themselves
Speaker 3: because in the debate it's getting lost, Like for example,
Speaker 3: we could look at hydrogen aircraft. These are exciting opportunities.
Speaker 3: This is what the market wants, is they want to
Speaker 3: have novel ways of flying that has less climate impact.
Speaker 3: And so we like to stay out of the noise
Speaker 3: and in terms of any debate on this, because we
Speaker 3: think the technologies will show themselves.
Speaker 4: What do folks need to know just about the environment?
Speaker 4: For venture capital? At this point, we've been through a
Speaker 4: couple of years when the environment wasn't as great as
Speaker 4: as it had been. Where are we in the arc
Speaker 4: of sort of its energy or success or how does
Speaker 4: it feel at this moment being in VC.
Speaker 3: Feeling optimistic? Actually, I think that there's a lot it's
Speaker 3: important right now, and we as a fund want to
Speaker 3: really bring the expertise into bringing these technologies out, and
Speaker 3: so I think it's important that right now we're seeing
Speaker 3: VC funds who have special expertise really focused on the founders,
Speaker 3: and I think the interest rate helps helps. It certainly helps,
Speaker 3: and so we're feeling good and I think hopefully getting
Speaker 3: through the election process itself.
Speaker 5: Well, I've got my question of the day.
Speaker 2: Is a shock worldwide that Microsoft is going to team
Speaker 2: up for electrical generations three Mile Island with Constellation Energy.
Speaker 2: How did you react when you saw that, I mean
Speaker 2: talk about a jump condition for energy or energy generation,
Speaker 2: I should say yeah.
Speaker 3: I think it's it's just reflective of the fact that
Speaker 3: companies are eager for anyone to find solutions for the
Speaker 3: energy crisis that they that they have, I mean a lot.
Speaker 3: I mean, if you think about AI, there's a huge
Speaker 3: amount of energy consumption in order to run some of
Speaker 3: these models, and so it's it's unsurprising that they're looking
Speaker 3: for any particular technology that can help solve their problem.
Speaker 5: Nicole, thank you for j.
Speaker 2: So there must be not today getting us started here
Speaker 2: at the Earth Shot A Prize awards.
Speaker 6: It this is a joy.
Speaker 2: He is someone at Morgan Stanley who's done the tour
Speaker 2: of duty and very rarely do you see such an
Speaker 2: extended commitment to one project.
Speaker 5: That project.
Speaker 2: Well, maybe it's not as iconic as the Dow Jones
Speaker 2: Industrial Average, but within Global Wall Street, MSCI is understood
Speaker 2: by all. Henry Fernandez joins us this morning with your
Speaker 2: baby ms CI. What was it like the first years
Speaker 2: of MSCI where you had to go into every meetia.
Speaker 6: To explain what are we doing there?
Speaker 2: Now you own Emerging market in Global Index Analysis.
Speaker 7: So I created a company thirty years ago on top
Speaker 7: of the what was then the morning Stanley Capital International
Speaker 7: in this is and that was the only problem we had, right,
Speaker 7: you know, market cup in this is and it was
Speaker 7: a call center, so we didn't have a lot of resources,
Speaker 7: and the world wanted a lot from us. So we
Speaker 7: had to educate a lot of people and expand and
Speaker 7: you know, eventually brought a lot of companies and spin
Speaker 7: out of Morgan Stanley and it's a forty billion dollar
Speaker 7: market cap company today.
Speaker 2: You were focused on the innovation here of the accountability
Speaker 2: of data over to the climate challenges we have. How
Speaker 2: are you going to bring your data acumen over to
Speaker 2: a better measurement of our climate disaster?
Speaker 7: So clearly climate risk is an existential risk for all
Speaker 7: of us. But in the Capital industry. You know, you
Speaker 7: can decimate portfolios. There'll be winners and losers, and all
Speaker 7: of them arender your portfolio today. So the question is
Speaker 7: how are you going to discern who those are and
Speaker 7: how you're going to start transitioning to a low carbon PORTFOLI.
Speaker 7: So it's a lot of it a question of measurement.
Speaker 7: So what's the nature of your problem? Whereas the carbon emissions,
Speaker 7: where are the big climate risk? What do you do
Speaker 7: about it? Where do you start? Do you start in
Speaker 7: private assets and public acids? And very importantly, at what
Speaker 7: pace do you go? If you go too fast, you
Speaker 7: get underperform because.
Speaker 8: You're gone too fast. Is Europe going too fast?
Speaker 5: No?
Speaker 7: No, I mean nothing in the world is going too
Speaker 7: fast for you know, the Parents Agreement put a day
Speaker 7: of twenty fifty because we needed to get two hundred
Speaker 7: countries to agree. But it was so far out that
Speaker 7: you know, people think that this is a long term problem.
Speaker 7: Of course it is a long term problem, but it's
Speaker 7: also a short to medium term problem.
Speaker 5: You know, we.
Speaker 7: Already see an enormous physical risk around the world.
Speaker 2: I mean, you've got a risk in Brooklyn that your
Speaker 2: house can float away, right, Well, I.
Speaker 4: Mean thankfully out of the bottom floor. Yeah, get around
Speaker 4: the great way up park slope. I remember talking to
Speaker 4: Anfinuca on her last day at Bank of America about ESG,
Speaker 4: something about which she is so passionate, has been for
Speaker 4: so long, and we talked about the issue of standardization
Speaker 4: that company is trying to keep up with this kind
Speaker 4: of data, have so many ways which they're filing or
Speaker 4: making filings known. Help me understand that where we are
Speaker 4: in that process of winning and simplifying data when it
Speaker 4: comes to ESG and climate issues and in particular, is
Speaker 4: it's still too much of a wild west that it
Speaker 4: should be?
Speaker 5: No, really there is.
Speaker 7: First of all, ESG is investment risk and opportunities. It's
Speaker 7: term politicized, you know, into political philosophies, but you know
Speaker 7: it's about understanding the coupit of markets and the risk
Speaker 7: associated with it with additional information, right in terms of
Speaker 7: non financial information as you know.
Speaker 4: Well.
Speaker 7: Secondly, unfortunately, we call them ratings, and we have a
Speaker 7: metric system that is similar to credit ratings. So a
Speaker 7: lot of people think that there has to be convergence
Speaker 7: of the ratings, just like credit ratings. Of convergence where
Speaker 7: credit ratings are your dimensional. It's about cash flows and
Speaker 7: the stability of the cash flows. So how far can
Speaker 7: you be in different people?
Speaker 5: Right?
Speaker 7: In terms of the rating, ESG measures a huge number
Speaker 7: of various things, so it's almost like Seales side opinion.
Speaker 7: So therefore it's very hard to think that you're going
Speaker 7: to end up with, you know, standardization of the ratings
Speaker 7: because you know, my opinion not MSCI may be different
Speaker 7: than our competitor's opinion. They may think that governance is
Speaker 7: more important. We may think that climate is more important.
Speaker 7: The key is not on the ratings. The key is
Speaker 7: to make sure the quality of the data.
Speaker 2: Henry Fernandez with us with the MSCI here at the
Speaker 2: Earthshot Prize a Plaza Hotel.
Speaker 4: David, let's talk about sort of one area in particularly
Speaker 4: through voluntary carbon credit market. I know that MSCI has
Speaker 4: kind of looked at the integrity of that data, rated
Speaker 4: that data. How representative is that of the work that
Speaker 4: you're doing when it comes to climate in particular. What
Speaker 4: did you find of looking at those data in particular?
Speaker 7: So, first of all, we believe strongly that voluntary carbon
Speaker 7: markets have to be part of the process of the
Speaker 7: risk and the portfolios of the world, and the world itself,
Speaker 7: you know, every airplace else we go markets serve a
Speaker 7: function of transferring value and transferring risk and in climate
Speaker 7: we're going to say they don't play any function. You know,
Speaker 7: it's not it's.
Speaker 5: Crazy to think that they want.
Speaker 7: The issue is how do we build integrity and you
Speaker 7: know and understanding that what you buy is what you
Speaker 7: thought you were buying and all of that. So we
Speaker 7: have come up with ratings. We have four thousand projects
Speaker 7: right now that we're rating. We just announced that last week,
Speaker 7: and we're going to bring more integrity, more data and quality.
Speaker 2: How are you rating something in Chengdu, China? Explain to
Speaker 2: me the dating data veracity we can bring to the
Speaker 2: distrust around what China is doing in carbon management and
Speaker 2: coal management. Are you optimistic that we can get a
Speaker 2: handle on that?
Speaker 7: Well, I was just in chang Dou, China a couple
Speaker 7: of months ago to begin with.
Speaker 5: But important did you.
Speaker 8: Go see the pandas absolutely good?
Speaker 5: A number one thing we've learned from.
Speaker 7: And but it's not different that how we how we
Speaker 7: classify countries, how we classify the ESGO companies, you know,
Speaker 7: how we so how we look at carbony, so we
Speaker 7: collect an enormous amount of data from independent sources, and
Speaker 7: then we sort of package it into a classification system
Speaker 7: of the various sources, and then you know, we create the.
Speaker 8: Radio for our American audience coast to coast.
Speaker 2: Thank you this morning for listening and tuning in on
Speaker 2: YouTube as well. There's a belief here that China is cheating.
Speaker 2: Does MSc I have the data amount or veracity to
Speaker 2: say that China is or is not.
Speaker 8: Cheating or any other countries for that matter.
Speaker 7: Well, I mean they could be cheating in many different aspects,
Speaker 7: you know, obviously, but in our case, we have incredible
Speaker 7: norse sources of independent data, you know, the the global press,
Speaker 7: the local press. Sometimes it is obviously control to find
Speaker 7: independent sources and verify those sources, like in the newspaper
Speaker 7: would to understand what is the nature of the climate
Speaker 7: emissions of a company, what is the nature of ESG,
Speaker 7: what is the nature of you know, in.
Speaker 5: The west of China and all of that.
Speaker 7: And it doesn't make us popular in China necessarily, but
Speaker 7: we have an independent view and an unbiased view, and
Speaker 7: that's how we rate everything, you know, including in China, right.
Speaker 7: But it's not different than Indonesia sometimes no different than Nigeria,
Speaker 7: no different than Mexico and the like.
Speaker 4: The last question here, just given your perspective having traveled
Speaker 4: to the bamboo for us and trained to do and elsewhere,
Speaker 4: what don't we understand about emerging markets today? So we're
Speaker 4: coming out of the pandemic as we see the world
Speaker 4: reopening again, what are people misunderstanding or not understanding about
Speaker 4: the health of.
Speaker 7: First of all, emergent market is a catch all, yes, right,
Speaker 7: so you have to then break it down into you know,
Speaker 7: commodity exporting markets, consumer markets, and markets that don't have
Speaker 7: a lot of competitive advantages.
Speaker 5: Right.
Speaker 7: Secondly is emerging markets are where the demographics you know,
Speaker 7: growth is in the world. They have a lot of
Speaker 7: problems obviously, you know the emerging markets is where the
Speaker 7: climate problem will be the biggest because they don't have
Speaker 7: a lot of resources, but they also present significant opportunities
Speaker 7: you know, in the world. So there is a little
Speaker 7: bit of too much of a glossover, you know, merging.
Speaker 4: Market attaps needs to you need to go more.
Speaker 7: In depth into each category and understand Brazil is different
Speaker 7: than Turkey, different than China.
Speaker 2: Thank you so much. I'd like to continue this conversation.
Speaker 4: Thank you for how I make Yeah.
Speaker 2: We'd love to see you over at Bloomberg. Henny Fernandez
Speaker 2: with us here with the ms CI on the politics
Speaker 2: of the moment. There's no one better than David Gerr
Speaker 2: to be looking state by state.
Speaker 5: So when you.
Speaker 2: Slice in die fifty states for the selection of November fifth,
Speaker 2: there's no question Colorado can be front and center with.
Speaker 8: A really rich and interesting politics.
Speaker 9: I like the ballot that the Governor of Colorado put
Speaker 9: as a ballot initiative, which is to bring back Tullagis
Speaker 9: in Boulder, Colorado. The shutting down of Tulagi's as a
Speaker 9: club was a national scandal.
Speaker 2: I hope you can bring Tulagi's back.
Speaker 4: We'll get into that. We'll let Tom Wax nostalgic about
Speaker 4: his time at the Sink, his time on the hill.
Speaker 4: Maybe we'll talk about Tom's tavern on Pearl Street as well.
Speaker 4: But we're here at the Earth Shot Summit at the
Speaker 4: Plaza Hotel on this Tuesday morning with us now the
Speaker 4: forty third governor of the State of Colorado, Jared Poulis,
Speaker 4: who is of course a supporter of and a surrogate
Speaker 4: for the Harris Walls campaign. And Governor Paul is great
Speaker 4: to speak with you. And I got to start with
Speaker 4: what has been in the news. We talked about it
Speaker 4: just a moment ago. That is the degree to which Aurora, Colorado,
Speaker 4: has been in the news. And I saw an interview
Speaker 4: on KUSA on nine news in Colorado, your former congressional colleague,
Speaker 4: Mike Kaufman, now the mayor of that city, evincing a
Speaker 4: kind of unease as he was asked about whether he
Speaker 4: would stand by former President Trump as he came to
Speaker 4: Aurora for a row to address what he's been talking
Speaker 4: about over and over again. That is what's really an
Speaker 4: apparition here. The dangers, the dangers as he describes them,
Speaker 4: Venezuelan gangs in that city, give us a sense of
Speaker 4: what's really happening on the ground there in Aurora.
Speaker 1: Well, I mean, the way the former president talks about
Speaker 1: it is frankly one of the reasons he's so unpopular here.
Speaker 1: I mean, Aurora is a thriving Auroras, a thriving city.
Speaker 1: I was there last week. Most residents are are, you know,
Speaker 1: enjoy living in one of our most culturally diversities in
Speaker 1: the state. Violent crime has been down two years in
Speaker 1: a Row car thefts are way down two years in
Speaker 1: a row. They have a new police chief. We've been
Speaker 1: working with them on law enforcement for a number of
Speaker 1: different years. So I mean, that's that's the reality in Aurora.
Speaker 1: And then you have somebody talking about it like it's
Speaker 1: some alternate reality place in Colorado and just sort of
Speaker 1: roll our eyes and say, that's not us.
Speaker 4: Governor. We look at the latest polling, which has gotten
Speaker 4: pretty granular, especially on the state by state level, looking
Speaker 4: at the issues that matter most to voters, and chief
Speaker 4: among them in the latest set of polls we've gotten
Speaker 4: has been the economy has been inflation. What are you
Speaker 4: hearing from Coloraden's about that? And what more does the
Speaker 4: ticket you support need to do to make the case
Speaker 4: that they're going to make life better for those who
Speaker 4: are still struggling, still dealing with the effects of high
Speaker 4: inflation and higher prices.
Speaker 1: Certainly high costs of inflation are one of the big
Speaker 1: challenges we face, and I think that the type of
Speaker 1: thing that we saw from the Wharton School pen came
Speaker 1: out and said that Donald Trump's big spending plan would
Speaker 1: increase the deficit more than two times more than Kamala
Speaker 1: Harris's plan. People understand that this kind of big spending
Speaker 1: mentality is inflationary. That's more of what the former president
Speaker 1: brought last time he was president. That's what he's likely
Speaker 1: to bring again. I think Kamala Harris has a responsible
Speaker 1: plan and encourages entrepreneurship, innovation, really leans into the opportunity
Speaker 1: economy from the bottom up and doesn't rely on big
Speaker 1: government spending like Donald Trump.
Speaker 2: Governor, you are living there for decades, way back before
Speaker 2: this fractious politics.
Speaker 8: The Latino vote and the turnout.
Speaker 2: What is your prediction for the size of the Latino
Speaker 2: vote in Colorado, and particularly the youth vote that many
Speaker 2: say finds an affection with the former president.
Speaker 1: There's a lot more excitement now with Kamala Harris's the nominee.
Speaker 1: I think this was a legitimate problem when Joe Biden
Speaker 1: was talking about running again, especially among the younger vote.
Speaker 1: I think we now have a candidate that really speaks
Speaker 1: to a new generation, to their aspirations, to their goals.
Speaker 1: And I'm getting a lot of assignment, whether I'm at
Speaker 1: our campuses at CU and DU and CSU, or whether
Speaker 1: it's at our community colleges or in stores and on restaurants.
Speaker 1: I think people really get that she is an agenda
Speaker 1: that works for them. Our Latino population in Colorado is
Speaker 1: incredibly diverse, right. We have people that have been families
Speaker 1: that have been here hundreds of years. We have families
Speaker 1: that arrive here in a generation or two ago. Like
Speaker 1: any group, there's a broad political diversity among them. Overwhelmingly,
Speaker 1: of course, Latino voters, just like all Colorado's, are supporting
Speaker 1: Kamala Harris and what she offers to bring down inflation,
Speaker 1: secure our border, and help grow opportunity.
Speaker 4: Gunnary, You've got to know the vice president's running made
Speaker 4: through his service and the Democratic Governor's Association. Imagine you've
Speaker 4: gotten know him well over the course of that. Tom
Speaker 4: asked me yesterday on air, so what he can bring
Speaker 4: to states like Arizona and Colorado As he makes this
Speaker 4: way along that campaign trail, it's bound to get busier.
Speaker 4: What if voters want to hear from him? What does
Speaker 4: he offer that the vice president doesn't that the incomon
Speaker 4: president didn't offer before him? What's he able to do
Speaker 4: to kind of galvanize or energize the electorate there in Colorado.
Speaker 1: So you know, Tim Walls was somebody I served with
Speaker 1: in the United States Congress as well. This is somebody
Speaker 1: who won a red district in the United States Congress.
Speaker 1: How by really understanding and being authentic with people, I mean,
Speaker 1: this is a guy who can get along with almost anybody.
Speaker 1: He's comfortable in his own skin. He's able to hear
Speaker 1: people where they're at and help them imagine a better
Speaker 1: world for themselves and others. So that's really who Tim is.
Speaker 1: And through his service to our country in the military
Speaker 1: as a teacher, he's really put his work where his
Speaker 1: mouth is, and people are really excited across the country
Speaker 1: to get to know him as our next vice president.
Speaker 5: Thank Governor.
Speaker 8: How do you feel about the tradition?
Speaker 2: And I'm going to go back to Ronald Reagan, who
Speaker 2: maybe was on the right and.
Speaker 8: Ran to the center in the days to November fifth.
Speaker 2: Are we going to see the vice president run to
Speaker 2: the middle and become verbally less progressive and more centrist?
Speaker 8: Is maybe we see from Jared Pois?
Speaker 1: Well, Look, I mean she is who she is. She
Speaker 1: obviously evolves on issues and learns just like any of
Speaker 1: us do. It's a different job to be a DA
Speaker 1: It's a different job to be a senator from California.
Speaker 1: It's a different job to be vice president, and it's
Speaker 1: a different job to want to be the next president
Speaker 1: of all America. And that's really what she's leading into.
Speaker 1: She wants to be a uniter. She's the person we
Speaker 1: need as America approaches our two hundred and fiftieth anniversary
Speaker 1: in twenty twenty six. We don't need a nation divided.
Speaker 1: We need a nation united, and that means somebody who
Speaker 1: speaks to everybody. And that's why conservative Republicans, liberal Democrats,
Speaker 1: moderates are all flocking to Takamala Harris, including former Vice
Speaker 1: President Dick Cheney.
Speaker 4: I'm the vice president. You say she is who she is?
Speaker 4: I think there are a lot of people still in
Speaker 4: this country who don't know who she is, and we
Speaker 4: see that in the polling data as well. Is she
Speaker 4: doing herself with the service by not doing more interviews,
Speaker 4: doing more one on ones with reporters? How do you
Speaker 4: respond to that. It's great to speak with you this morning,
Speaker 4: to have the opportunity to do so, of course, but
Speaker 4: is she missing an opportunity by not doing more of
Speaker 4: that her self?
Speaker 1: Do you think she's a thoughtful, diligent leader who studies
Speaker 1: the issues, and she's a prosecutor, put criminals behind bars,
Speaker 1: stared them in the face. Nothing's harder than that.
Speaker 7: Oh.
Speaker 1: Look, she is doing more interviews and I'm sure she'll
Speaker 1: do even more going forward. She's working very very hard
Speaker 1: on the campaign trail, doing far more campaign events and
Speaker 1: outreaching her opponent. I'm going to I think that'll help
Speaker 1: carry the day in November.
Speaker 2: Governor, thank you so much for joining Bloomberg this morning.
Speaker 2: The governor of Colorado, Jared Poles, greatly appreciated.
Speaker 8: Her advantage New Haven. If you're in New Haven and.
Speaker 2: You're double E electrical engineer, you spend a lot of
Speaker 2: time at Sally's Pizza.
Speaker 8: I mean, it's just no other way to put it.
Speaker 2: You're grinding, you're cramming differential equations and the rest of it.
Speaker 2: I assume you took the Wheatstone Bridge to Sally's.
Speaker 6: What was it like Double E at.
Speaker 2: Yale in a school acclaimed for liberal arts.
Speaker 6: How lonely were you?
Speaker 10: We spent a lot of time in a basement away
Speaker 10: from sunlight.
Speaker 2: Am Trepani with us? I heard this morning on what
Speaker 2: he's doing in this innovation. Explain to me your innovation
Speaker 2: project right now today.
Speaker 10: Yeah, it's great to be with you. So I'm the
Speaker 10: CEO of atlas Ai, Wh're a Palo Alto, California based
Speaker 10: startup that is building models based on geospatial data. So
Speaker 10: geospatial is data that has a location or a geographic
Speaker 10: element associated with it. So our models aim to understand
Speaker 10: and anticipate what the future of the planet is likely
Speaker 10: to look like, where people are likely to live in
Speaker 10: the future, how economy is likely to evolve and adapt,
Speaker 10: and really to macro factors like conflict or climate change.
Speaker 10: And we aim to help international organizations.
Speaker 2: I would go to climate and flooding today, but this
Speaker 2: morning I have to go to conflict. As you consider
Speaker 2: three wars Ukraine, Gaza and North to Lebanon as well,
Speaker 2: what is your value add to people assessing the conflict
Speaker 2: in the levant?
Speaker 10: So there's immediate elements of monitoring the impact of the
Speaker 10: conflict on the environment itself, but also on communities. How
Speaker 10: are people being displaced forced to move from the places
Speaker 10: that they live because of the nature of the conflict.
Speaker 10: But more so than that, some of the interesting factors
Speaker 10: are how is the conflict impacting the agricultural industry in
Speaker 10: Ukraine and what global implications does that have on supply
Speaker 10: chains that flow from this critical area of agriculture.
Speaker 4: Talk about your role in the broader AI sector if
Speaker 4: we can christen that or call it that now and
Speaker 4: we talk a lot about a handful of companies in particularly,
Speaker 4: talk a lot about chip manufacturing as well. As you
Speaker 4: look at the sort of ncency evolution, early evolution of it,
Speaker 4: where are we in that process now?
Speaker 10: So not surprising. A lot of the early focus has
Speaker 10: been on modalities of information that we work with almost
Speaker 10: every day, text, video, imagery, tom's phone, Tom's phone, where
Speaker 10: to find pizza and Newhagen. Yes, some of the interesting
Speaker 10: next set of questions that we're dealing with relate to
Speaker 10: different types of data. How do we help organizations understand
Speaker 10: the information that they have access to that may not
Speaker 10: be as neatly structured in a document or in an
Speaker 10: image file like Satellite imagery is a good example. There
Speaker 10: is an immense amount of information about economic activity, about
Speaker 10: the climate, about other dimensions of change that's happening on
Speaker 10: the planet, and we have satellite images that are capturing
Speaker 10: every square foot of the planet every single day. Now,
Speaker 10: using AI gives us a real time lens on what
Speaker 10: change is unfolding across the planet in a way that
Speaker 10: some of the other other aspects of AI are not
Speaker 10: able to capture today.
Speaker 4: I think that so many of us glam on to
Speaker 4: kind of the Aeschucks factor of the modality that you're
Speaker 4: talking about, how it can affect our lives individually. Do
Speaker 4: you think that people, as if yet comprehend kind of
Speaker 4: the wider implications of what AI will be able to offer, deed,
Speaker 4: what it may offer right now they're.
Speaker 10: Starting to, in part because it's on our phone and
Speaker 10: we have access to magical technology that allows us to
Speaker 10: do things that we couldn't do yesterday. The reality is
Speaker 10: is that a lot of this is just scratching the
Speaker 10: surface of what we're seeing come out of the labs
Speaker 10: in Stanford and Yale and other schools in terms of
Speaker 10: not just how individual models, but how models that can reason,
Speaker 10: that can engage with the world are able to now
Speaker 10: start to enhance the productivity of companies and organizations.
Speaker 2: You are hugely qualified to answer a question. It's understanding,
Speaker 2: But Microsoft and Constellation and three Island fine the thermodynamics
Speaker 2: of all this AI chit chat in the need for electricity.
Speaker 2: To me, there's almost a free lunch to it. What
Speaker 2: will be the cost of having to generate all that
Speaker 2: electricity to power your world?
Speaker 10: Well, I think there's probably two questions in bed there.
Speaker 10: What's the cost and what's the sustainability of being able
Speaker 10: to do so? And the good news is that from
Speaker 10: a sustainability angle, we are now seeing the acceleration of
Speaker 10: new technologies like solar and wind, but also hydrogen and
Speaker 10: other newer energy sources that are going to be prevalent
Speaker 10: in in the next couple of decades. So the energy
Speaker 10: demand will be significant, but I'm also very optimistic that
Speaker 10: this energy will be powered by renewable, sustainable sources of energy.
Speaker 2: What do the seven big stocks? What do they get
Speaker 2: from you? When you talk to Nvidio, when you talk
Speaker 2: to Microsoft? How do they listen to what atlas Ai
Speaker 2: is doing.
Speaker 10: So I'll give you a specific example, and that where
Speaker 10: we partner with Google Cloud extensively. Our technology is built
Speaker 10: on Google Cloud and we're a member of a sustainability
Speaker 10: ecosystem within Google Cloud that's focused on questions of how
Speaker 10: do we help companies advance their sustainability priorities. Many of
Speaker 10: Google has Gemini they have one of the leading large
Speaker 10: language models, but many of their customers are asking a
Speaker 10: whole array of questions related to how does air Bus
Speaker 10: think about anticipating the demand of air travel in Indonesia
Speaker 10: in the future, And so there are questions that language
Speaker 10: models are not by themselves able to answer that at
Speaker 10: let's a I can at.
Speaker 2: Let's say, I question, how about that midtown traffic this
Speaker 2: istout getting over to the lunch.
Speaker 10: I wish I could have told you how to get
Speaker 10: to the east side last night.
Speaker 4: A Let me just stick with infrastructure a little bit here,
Speaker 4: and we hear from Jensen Kwang about, you know, how
Speaker 4: he deploys the chips that his company is making, and
Speaker 4: there's such demand for them, which comes to shove. Is
Speaker 4: that a difficulty for folks like you who are starting
Speaker 4: these businesses in this space, just getting access to the infrastructure,
Speaker 4: getting the chips, to put it bluntly, getting the access
Speaker 4: to these data centers. How much of that is yet
Speaker 4: a hurdle to the kind of development that you'd like
Speaker 4: to see.
Speaker 10: It's a question that we constantly have to face because
Speaker 10: not only are we thinking about the current generation A model,
Speaker 10: but we're also now thinking about next year's generation. The
Speaker 10: pace of training new models is accelerating at such a
Speaker 10: pace that you need to be thinking one or two
Speaker 10: generations down the line. And with each generation the compute
Speaker 10: requirements are increasingly increasing exponentially. I'll say that the last
Speaker 10: few years are likely tougher than the next few years
Speaker 10: will be. The supply chains are starting to work themselves out.
Speaker 10: Nvidia and other companies have been able to now adapt.
Speaker 10: New generations are coming out that are more efficient, so
Speaker 10: that's not one of the elements that we worry most
Speaker 10: about when we think about the next few years growth
Speaker 10: of the business.
Speaker 2: So wonderful come to our world headquarters sometime. I'd love
Speaker 2: to talk to you from our studios. Am Terror Parne
Speaker 2: with us with alis Ai, finally for Global Wall Street.
Speaker 2: An important conversation you think of the Securities and Exchange
Speaker 2: Commission in America f s A in London. How about
Speaker 2: the International Organization of Securities Commissions is OSCO ISCO IOSCO.
Speaker 2: Thank you joining us from my Oscar and Brussels. With
Speaker 2: all the headaches of regulation and cryptocurrencies. Future Jean Paul
Speaker 2: Survey joins us this morning. Wonderful to have you with us.
Speaker 2: Different presidential candidates are saying crypto is part of a
Speaker 2: legitimate American political and economic future. Where does that take
Speaker 2: our understanding of crypto if we see politicians talking it up.
Speaker 11: Yeah, by spot of the political legitimacy debate, it's about innovation.
Speaker 11: We have Securities Markets Regulator. I'm not against imidation, but
Speaker 11: all job is to ensure that there is stress, that
Speaker 11: there are no accidents. And due to the fact that
Speaker 11: we know that most of the time, in fact, we
Speaker 11: have a business developed by cross border I would say
Speaker 11: crypto asset provider, we need to be an iOS come
Speaker 11: means in fact, the Global Membership Organization we have one
Speaker 11: hundred and thirty jo addiction. It means that my coroeague
Speaker 11: and members are involving in the supervision of ninety five
Speaker 11: percent of the financial like the US SEC and usc FTC.
Speaker 11: So we need to be there and that's what we did.
Speaker 11: We endorsed last year a toolkit in order to help
Speaker 11: all job addiction to have an appropriate supervision. It's not
Speaker 11: about the enforcement assets does the job of the national
Speaker 11: agency like in the US. So we try to avoid
Speaker 11: that there are collapses, that they are accident, that there
Speaker 11: are problem about the quality.
Speaker 5: I would say of the of the business.
Speaker 8: There's about there's a new legitimacy lawrence.
Speaker 2: Think of black rockets tracking up everybody else, Airbelt Tuness, Blombergers, encyclopedic. Honest,
Speaker 2: that's all great, but how is.
Speaker 8: The bitcoin underlying?
Speaker 2: The Bank of International Settlements is studied so hard? Is
Speaker 2: there an underlying value like there is to gold or
Speaker 2: you know, what's the latest stock I had at crater?
Speaker 6: There's something there.
Speaker 11: That's a very difficult question. And you are for there,
Speaker 11: of course, because it's a never ending story. All I
Speaker 11: would say objective is to be helpful for discovery.
Speaker 5: Price to avoid.
Speaker 11: Let us be clear many of the accident which took
Speaker 11: place during the crypto meet it was about the absence
Speaker 11: of segregation of upset, something that is quite manageable, I
Speaker 11: would say, and something that it had to be managed
Speaker 11: for thirty years by trading, venue, stocking, change asset manager.
Speaker 11: What we are proposing is to copy and paste this
Speaker 11: well known principle and then to provide that for the
Speaker 11: sake of the supersion.
Speaker 5: When working very.
Speaker 11: Hard with the imas, and I was very happy to
Speaker 11: see that now the I'm start by using old toolkit.
Speaker 11: When they performed their well known mission article for f
Speaker 11: s UP and so it means that we are useful
Speaker 11: and that we are working together with other global standards.
Speaker 4: You'll forgive the phrase, but I imagine a lot of
Speaker 4: your job is hurting cats. You're having to deal with
Speaker 4: all of these regulatory agencies all over the world's which
Speaker 4: have different priorities. How much unanimity is that you can
Speaker 4: take crypto as an example and how we've seen this.
Speaker 4: Maybe arbitrage is a good way of putting it. But
Speaker 4: companies moving from place to place, jurisdiction to jurisdiction because
Speaker 4: they offer different things. Are we seeing a movement toward
Speaker 4: a more unified regulatory lands?
Speaker 5: Yeah, well, thanks for your question.
Speaker 11: That's maybe mycro league thought that a Belgium guy had
Speaker 11: to be elected because the DNA of Belgium is about
Speaker 11: Belgium compromise because we are not sure that our countries
Speaker 11: still exist today after so we need compromise every day.
Speaker 5: We never vote.
Speaker 11: It's like United Nations, except that I think that we
Speaker 11: are able to.
Speaker 5: Take get things do OK.
Speaker 11: So it's consensus because it's a global membership organization, and
Speaker 11: I think that we are able to find consensus because
Speaker 11: whenever you have global challenges, risk and ability. We are
Speaker 11: here because some members are involved in the supersion of
Speaker 11: ninety five percent or much of.
Speaker 5: It of members are in fact grow and emergent market.
Speaker 5: So when we.
Speaker 11: Speak about crypto assets, that's a danger also for crypto
Speaker 11: and an opportunity also for many countries in Africa.
Speaker 5: The same for climate fans. It's cross border.
Speaker 2: I understand that can be banking transactions, a cross water transactions,
Speaker 2: but I still don't see out there a lot of
Speaker 2: use of crypto in day to day transactions. Do you
Speaker 2: envision out there while reptore will actually be a daily
Speaker 2: to day transaction.
Speaker 11: I think that you are right to be product. There
Speaker 11: are many expectations. I think the first step if you
Speaker 11: want to have confidence in crypto is to have a
Speaker 11: solid frame at global frame, and that's what we are
Speaker 11: doing for the time being, and we are going the
Speaker 11: right direction because I think that all tool kit was
Speaker 11: able to take into account what happens last year, the
Speaker 11: crypto winter, some accident, and that's the objective of IO
Speaker 11: to be helpful for the.
Speaker 5: Members, like for climate finances. That's the reason why the
Speaker 5: pleasure to be here.
Speaker 4: Let's pull back a bit as you look at the
Speaker 4: broader landscape, are there pockets of risk or things that
Speaker 4: give you pause for concern at this point in time
Speaker 4: when it comes to sort of the regulatory risk regulatory landscape,
Speaker 4: yeh as.
Speaker 11: Ioscop chair, I think that there are too global issue
Speaker 11: climate finance nbify the former shadow banking climate finance. If
Speaker 11: you are not able to speak more or less the
Speaker 11: same language to use the same I would say, sustainty
Speaker 11: reporting standard together data as much as possible, and that's
Speaker 11: the reason why the initiative taken by Mike Bloomberg and
Speaker 11: Emmanuel McCoy is going the right diction to extract data.
Speaker 11: We will have many questions about greenwashing because green washing
Speaker 11: means most of the time the lack of capacity to
Speaker 11: use the same language. And that's the reason why we
Speaker 11: endorsed last yearsb stun. It means at the end of
Speaker 11: the day, one hundred and thirty thousand company will use
Speaker 11: the same stand.
Speaker 5: It's a giant step.
Speaker 11: Let us be clear, who could believe that some years ago,
Speaker 11: and it's a recent and it's thanks to the devolvement
Speaker 11: of I school. The same for shadow banking, I would say,
Speaker 11: we know the evolution after the subprime crisis, and we
Speaker 11: are not working I would say, very intensely with the BIS,
Speaker 11: with the FSB, we are reporting to the G twenty
Speaker 11: leaders in order to develop new tools.
Speaker 5: For instance, we were.
Speaker 11: Able to get with this SB to publish a useful
Speaker 11: toolkit for the liquidity of manager tool. We are not
Speaker 11: working on leverage in order to keep to account that
Speaker 11: ons if our chare goes, the games and so on,
Speaker 11: so there is always something to learn, I would say,
Speaker 11: and then to make progress about new toolkits.
Speaker 8: Thank you so much.
Speaker 5: We thank you with I ask.
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