WEBVTT - Iran War Escalates; Global Markets React 0:00:02.520 --> 0:00:13.760 Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg 0:00:13.840 --> 0:00:17.920 Surveillance Podcast. Catch us live weekdays at seven am Eastern 0:00:18.200 --> 0:00:22.000 on Apple CarPlay or Android Auto with the Bloomberg Business app. 0:00:22.360 --> 0:00:25.680 Listen on demand wherever you get your podcasts, or watch 0:00:25.760 --> 0:00:28.000 us live on YouTube with Price. 0:00:27.840 --> 0:00:32.400 Waterhouse Coopers right now Coopers in Live at You know, 0:00:32.479 --> 0:00:36.160 we remember it as well. Lexis crow darkins the dirt 0:00:36.200 --> 0:00:42.280 this morning. What does your shop say about the capitalization 0:00:42.840 --> 0:00:46.600 the options of big tech? They feel like they're playing 0:00:46.640 --> 0:00:50.000 by their own rule book because of their profitability, because 0:00:50.000 --> 0:00:53.120 they're young turks out in San Francisco and all that. 0:00:53.200 --> 0:00:57.320 But what does PwC say about the bond issuance or 0:00:57.360 --> 0:01:00.080 the stack buyback? I mean, just just continue. 0:01:01.200 --> 0:01:02.600 Thanks so much Tom for having me. 0:01:02.720 --> 0:01:06.560 I think in that realm credit conditions are pretty easy, 0:01:06.800 --> 0:01:10.160 and what we hear from a lot of investors and 0:01:10.240 --> 0:01:13.119 developers is that these are top tier borrowers, so there's 0:01:13.120 --> 0:01:16.560 no concern about mounting piles of leverage. 0:01:16.840 --> 0:01:19.600 How about mounting piles of one hundred dollars oil and 0:01:19.640 --> 0:01:23.520 the impact that has on the global economy. Is it 0:01:23.560 --> 0:01:25.880 a short term blip? You guys aren't too concerned about it, 0:01:26.000 --> 0:01:28.559 or are you reworking your models and thinking about GDP 0:01:28.760 --> 0:01:29.920 and inflation that kind of thing. 0:01:30.040 --> 0:01:32.520 Paul, thanks so much. I mean, this is not Russia Ukraine. 0:01:32.560 --> 0:01:34.320 This is the largest shock that we've had to the 0:01:34.360 --> 0:01:37.640 global energy system since nineteen seventy nine. At that time, 0:01:37.680 --> 0:01:41.440 as we know, oil doubled in value, and we're headed 0:01:41.480 --> 0:01:42.120 that way again. 0:01:43.360 --> 0:01:46.080 Appreciate what the former gentlemen said. 0:01:46.560 --> 0:01:50.040 I would say that, yes, effects of this will be localized, 0:01:50.080 --> 0:01:52.600 but in the United States there are downstream impacts. So 0:01:53.000 --> 0:01:55.840 we think about that growth in America right now is 0:01:55.920 --> 0:02:00.680 overwhelmingly tilted toward the investment spend in AI. And where 0:02:00.680 --> 0:02:04.919 do the semicon chips come from that go into fabrication 0:02:05.200 --> 0:02:07.720 of AI and data centers. They come from South Korea. 0:02:08.320 --> 0:02:11.639 Where does South Korea's oil come from? It comes from 0:02:11.639 --> 0:02:14.120 the Middle East. So there are long term implications of 0:02:14.160 --> 0:02:17.959 what's happening, even the downstream impacts of fertilizers here in 0:02:18.000 --> 0:02:20.040 the US as we come into the planting season. 0:02:20.800 --> 0:02:22.920 Do you do your research not to us or you 0:02:23.000 --> 0:02:25.320 have minions that do this for me? My god, what 0:02:25.400 --> 0:02:28.560 a fabulous research. Now? Thank you get that from Price 0:02:28.639 --> 0:02:32.119 Waterhouse Coopers. Folks, as you can. PW. See. I love 0:02:32.160 --> 0:02:36.800 your first chart about the multinationalization of American companies. We 0:02:36.880 --> 0:02:39.720 still to this day underplay that, don't we Yep. 0:02:40.240 --> 0:02:41.000 So that's it. 0:02:41.200 --> 0:02:44.520 Fifty three point six percent of the revenue of the 0:02:44.600 --> 0:02:47.240 tech portion of the S and P five hundred is 0:02:47.280 --> 0:02:51.160 earned overseas, which means that again, those companies that we're 0:02:51.160 --> 0:02:54.160 all relying on in terms of prosperity in America are 0:02:54.200 --> 0:02:56.240 not immune to slowing growth overseas? 0:02:56.440 --> 0:02:59.480 Are they international stocks? Where I don't need to diversify 0:02:59.600 --> 0:03:02.840 Internet nationally. I can just buy Apple because they're everywhere. 0:03:04.160 --> 0:03:06.960 I would still I would still bank on diversification and 0:03:07.040 --> 0:03:09.639 getting into European baskets and Asian baskets. 0:03:09.639 --> 0:03:10.880 And we've seen that say that. 0:03:11.360 --> 0:03:14.800 Of course, the outperformance of the SCI has been pretty impressive. 0:03:15.120 --> 0:03:15.799 Yes, So. 0:03:17.800 --> 0:03:21.520 How do we start adjusting our GDP models. I mean, 0:03:21.520 --> 0:03:23.079 we just had Delta come out today. He said it 0:03:23.120 --> 0:03:25.959 took a four hundred million dollar higher fuel costs just 0:03:26.000 --> 0:03:28.600 in the month of March. So this really is hitting 0:03:28.680 --> 0:03:31.640 the economy. Is this going to materially slow the economy 0:03:31.720 --> 0:03:34.200 or is it again? Is it something maybe they can 0:03:34.240 --> 0:03:34.800 power through? 0:03:35.480 --> 0:03:37.800 Well, it'll be interesting to see what the FED says 0:03:37.840 --> 0:03:41.640 with it's SEP coming out, generally, I think you would 0:03:41.680 --> 0:03:44.200 say it's they'll they'll, they'll bank on. It's something you 0:03:44.240 --> 0:03:46.960 can look through, right in terms of GDP growth, because 0:03:47.280 --> 0:03:50.360 again this fallacy is that AI is insulated from the 0:03:50.400 --> 0:03:54.560 rest of kind of policy shocks in the glory. Nevertheless, 0:03:54.680 --> 0:03:58.360 I would say the US consumer is super price sensitive 0:03:58.400 --> 0:04:00.360 when it comes to the price they pay it the pump. 0:04:00.400 --> 0:04:00.520 Ye. 0:04:00.720 --> 0:04:03.480 And we're coming into the summer driving season, so larger 0:04:03.560 --> 0:04:06.160 share of income will go toward transportation. 0:04:06.840 --> 0:04:08.920 And with oil where it is dieseled. 0:04:08.560 --> 0:04:11.720 Today in California six and a half, that's going to 0:04:11.800 --> 0:04:12.720 put pressure on the purse. 0:04:12.880 --> 0:04:15.600 I was thunderstruck by the price of diesel in Phoenix 0:04:15.680 --> 0:04:18.719 like ten days ago. I mean, I think there's not 0:04:18.839 --> 0:04:21.800 been enough said PA. I think about refinery products. 0:04:21.440 --> 0:04:23.479 Correct, especially California. 0:04:23.000 --> 0:04:25.440 Gas oil fuel oil is looking at you know, the 0:04:25.480 --> 0:04:27.480 way they go from the chemistry of oil in the 0:04:27.560 --> 0:04:31.400 naphtha into ethyline in that I mean the petrochemical business. 0:04:31.400 --> 0:04:33.320 What does Priced water House Cooper see of that? 0:04:33.839 --> 0:04:35.840 Well, So it's interesting just thinking about some of these 0:04:35.880 --> 0:04:40.320 down down, you know, refined products you have Saudi Arabia 0:04:40.400 --> 0:04:43.760 can get some of these refined products from the East 0:04:43.760 --> 0:04:45.840 Coast over to the West Coast and the Red Sea 0:04:46.640 --> 0:04:49.080 to Jason and too Yanbu. But that's going to be 0:04:49.120 --> 0:04:52.159 a logistical overhaul. Its something that the Finance Minister actually 0:04:52.240 --> 0:04:54.560 prioritized prior to all of this, as they would focus 0:04:54.600 --> 0:04:55.960 on logistics. 0:04:55.720 --> 0:04:56.279 And here they are. 0:04:56.360 --> 0:04:58.200 They're going to have to do that. You can get 0:04:58.200 --> 0:05:01.279 fertilizers out that way as well. But in any given 0:05:01.360 --> 0:05:04.440 year in the United States, farmers rely on forty percent 0:05:04.720 --> 0:05:07.919 imports to make up the area and fertilizers, so this 0:05:07.960 --> 0:05:08.599 will be a I. 0:05:08.560 --> 0:05:10.760 Think it's way under play conty. We're all looking together, 0:05:11.040 --> 0:05:13.960 Gus and I'm sorry, it's way more complicated than that. 0:05:14.000 --> 0:05:16.080 Correct, And I don't see how this is anything but 0:05:16.120 --> 0:05:19.760 a political head wind for this administration. I'm just surprised 0:05:19.760 --> 0:05:23.400 this from a political perspective, given that affordability has become 0:05:23.480 --> 0:05:24.440 a gigise and. 0:05:24.480 --> 0:05:27.359 It's massively global. It's amazing how we don't want petro 0:05:27.440 --> 0:05:30.840 chemicals in America, so they're over somewhere else where we 0:05:30.920 --> 0:05:32.599 don't have to worry about it. Alexis crow or this 0:05:32.920 --> 0:05:37.440 partner chief economist at PwC, Paul Sweeney with doctor Crowe. 0:05:37.480 --> 0:05:40.240 So what do you expect how do you expect the 0:05:40.279 --> 0:05:44.440 Fed tomorrow to comment about this? Do you expect them 0:05:44.480 --> 0:05:46.640 to comment directly? And how do you think they will 0:05:46.880 --> 0:05:47.720 kind of adjust for this? 0:05:48.200 --> 0:05:50.680 Well, I think it'll be I think the main thing 0:05:50.760 --> 0:05:53.680 that market participants will looking for is if they're going 0:05:53.760 --> 0:05:56.040 to give any guidance on whether there will be rate 0:05:56.080 --> 0:05:57.960 cuts in the future. Obviously you can expect them to 0:05:58.000 --> 0:06:02.440 hold pause tomorrow. I think you've seen some of the 0:06:02.480 --> 0:06:06.720 voting members move from two cuts to one, in which 0:06:06.760 --> 0:06:08.599 case I would say, I mean the other side of 0:06:08.640 --> 0:06:11.560 things is there's still this rich debate within the FED 0:06:11.720 --> 0:06:14.040 right now as to whether or not you focus on 0:06:14.279 --> 0:06:17.520 the inflation part and price stability of the dual mandate, 0:06:17.560 --> 0:06:19.560 or whether or not you focus on the labor market. 0:06:19.880 --> 0:06:23.320 You've had some actually highlighting that what Austin Golesby calls 0:06:23.360 --> 0:06:27.120 the four horsemen in the employment market is actually quite strong. 0:06:27.200 --> 0:06:30.760 So looking beneath non farm payrolls and the levels and 0:06:30.800 --> 0:06:33.640 into the rate of USTAR and the unemployment rate, just 0:06:33.680 --> 0:06:36.520 looking at the vacancy rate, job openings, you actually got 0:06:36.520 --> 0:06:37.960 a quite healthy labor market. 0:06:38.120 --> 0:06:39.800 Can we talk to you UK? I mean, we had 0:06:40.120 --> 0:06:42.360 the Commission or do you have a parking ticket in London? 0:06:42.600 --> 0:06:45.880 We could have solved that like two hours ago, Alexis Coro, 0:06:46.320 --> 0:06:50.440 the migration from Saint Andrews down to LC Jesuit Lee. 0:06:50.520 --> 0:06:52.080 I think it was in the Wall Street Journal like 0:06:52.120 --> 0:06:54.800 three days ago with an article on your Saint Andrews? 0:06:54.880 --> 0:06:57.839 Are there too many ugly Americans at St Andrews? 0:06:57.920 --> 0:06:58.200 Well, that. 0:07:00.240 --> 0:07:03.400 Has changed significantly since my days. So that chart that 0:07:03.440 --> 0:07:06.400 they put in there, the number of Americans has dramatically risen. 0:07:06.440 --> 0:07:09.119 Actually it's amazing, I mean to say the least. Okay, 0:07:09.360 --> 0:07:12.160 so this is the phrase I'm seeing in the British press, 0:07:12.440 --> 0:07:17.000 and this is the Prime minister selective realignment? Is Brexit 0:07:17.080 --> 0:07:19.320 a failure? I mean, doctor Crow with in all your 0:07:19.400 --> 0:07:23.520 academics and frankly PwC London and the huge platform you 0:07:23.560 --> 0:07:25.840 have in the United Kingdom. Are we now to a 0:07:25.960 --> 0:07:28.120 point where brexit we could say we've got to do 0:07:28.520 --> 0:07:29.760 selective realignment? 0:07:30.160 --> 0:07:32.640 Well it's interesting anything but name right, a U turn 0:07:32.680 --> 0:07:36.320 in anything but name, I mean fascinating that the now 0:07:36.360 --> 0:07:39.600 Prime Minister of Canada, who was then Central Bank Governor 0:07:39.920 --> 0:07:45.400 in the UK, very clearly stated that brexit would have 0:07:45.440 --> 0:07:48.080 a deleterious impact on the British economy and was almost 0:07:48.120 --> 0:07:50.960 held in contempt of Parliament for it. So we're certainly 0:07:51.000 --> 0:07:55.480 facing the impacts of that today. And Tom, it's interesting 0:07:55.480 --> 0:07:57.720 we've talked about this with the growth outlook, but why 0:07:57.760 --> 0:08:00.920 has growth not dramatically in the UK. A lot of 0:08:00.960 --> 0:08:04.440 things were explained away for COVID, but if you look 0:08:04.440 --> 0:08:08.840 at employment, healthcare social workers are the largest share of employment. 0:08:09.040 --> 0:08:12.560 If you look at GDP numbers, the housing market and 0:08:12.680 --> 0:08:15.240 real estate is the largest share of GDP growth and 0:08:15.280 --> 0:08:18.840 that's largely insulated from any downside impacts from Brexit. 0:08:19.360 --> 0:08:22.760 Tell me just before we go here, the current zite 0:08:22.760 --> 0:08:28.280 guys to PwC an AI benefiting society. To me, it's 0:08:28.320 --> 0:08:32.520 a massive The fancy people love AI and everybody else's crushed. 0:08:32.840 --> 0:08:33.480 Is that too. 0:08:33.320 --> 0:08:36.360 Simplistic phenomenal that we're looking at some of the job 0:08:36.480 --> 0:08:39.920 numbers right where layoffs are promised, but basically to channel 0:08:39.960 --> 0:08:44.080 capital into the physical and technological capital in AI. It's 0:08:44.200 --> 0:08:46.760 the exact opposite of what is happening in Europe, where 0:08:46.800 --> 0:08:50.800 you actually had the unemployment rate hitting an all time low. 0:08:51.280 --> 0:08:53.400 So we're in two different I would say we're in 0:08:53.400 --> 0:08:55.839 a tale of two cities here, and the messages are 0:08:55.960 --> 0:08:59.200 very different across very different across the Atlantic. 0:09:00.120 --> 0:09:00.920 It's fascinating. 0:09:01.200 --> 0:09:03.120 I don't know the answer. I don't know if it's 0:09:03.160 --> 0:09:06.400 a net positive. Well, I know it's gonna be net positive, 0:09:06.440 --> 0:09:07.920 I guess, but I'm not sure what the costs are. 0:09:07.960 --> 0:09:10.360 So my brother's a fancy guy in this. This is 0:09:10.360 --> 0:09:13.200 his exact quote. I have no clue or will be 0:09:13.320 --> 0:09:16.120 in six months. That's exactly what he said. 0:09:16.200 --> 0:09:18.439 Yet, thank you so much. 0:09:18.480 --> 0:09:20.319 What are you writing about next? Get out front of 0:09:20.360 --> 0:09:22.120 here of PWC's. 0:09:21.360 --> 0:09:25.240 Word natural capital and investing in agriculture. It is the 0:09:25.920 --> 0:09:29.880 sort of next generation of climate investing because the far 0:09:30.040 --> 0:09:31.679 right actually like agriculture. 0:09:32.040 --> 0:09:34.000 Okay, what's natural capital? 0:09:34.640 --> 0:09:38.000 It is the umbrella, Dad, it's the new one. 0:09:38.080 --> 0:09:42.720 It's the umbrella phrase for everything investing in biodiversity, credits, 0:09:42.800 --> 0:09:45.760 farmland restoration, regenerative agriculture. 0:09:46.240 --> 0:09:48.720 Very good, Alexis Crow. Thank you so much. With PwC. 0:09:48.840 --> 0:09:52.000 I can't say enough about the grind, the academic work 0:09:52.000 --> 0:09:56.520 that they're doing at their consultancy really a huge value. 0:09:58.200 --> 0:10:01.319 Stay with us more from bloom You are surveillance coming 0:10:01.400 --> 0:10:02.400 up after this. 0:10:09.640 --> 0:10:13.200 You're listening to the Bloomberg Surveillance podcast. Catch us Live 0:10:13.280 --> 0:10:16.800 weekday afternoons from seven to ten am Eastern Listen on Apple, 0:10:16.840 --> 0:10:20.160 Karplay and Android Otto with the Bloomberg Business app, or 0:10:20.320 --> 0:10:21.920 watch us Live on YouTube. 0:10:22.040 --> 0:10:24.440 We have a very special guest right now. I have 0:10:24.480 --> 0:10:29.960 a parking ticket outside the Davidovs cigar bar in near 0:10:30.040 --> 0:10:32.959 Saint James, you know, near the you know, the fancy 0:10:33.000 --> 0:10:35.800 part of London from fourteen years ago, and Mark Riley's 0:10:36.040 --> 0:10:37.960 here to pick it up. Sir Mark, thank you so 0:10:38.040 --> 0:10:42.199 much for joining us. Well. I had so much response 0:10:42.280 --> 0:10:46.760 inside here from Miles Miller and others to your appearance today. 0:10:47.160 --> 0:10:49.719 I want to start with the way you do it 0:10:49.840 --> 0:10:53.760 in the United Kingdom. What was it like your first 0:10:53.880 --> 0:10:57.479 day in the West Midlands. You've got the wonderful uniform, 0:10:57.880 --> 0:11:00.679 You're doing all the wonderful thing. In London, there's you know, 0:11:00.720 --> 0:11:04.440 the celebrities and the all the different stuff, probably watching 0:11:04.480 --> 0:11:07.120 the royal family forget about it. What was the first 0:11:07.200 --> 0:11:08.320 day as a constable? 0:11:08.480 --> 0:11:11.559 Like Midlands I always wanted to be I want to 0:11:11.600 --> 0:11:14.240 be a police officer, and I went to university and 0:11:14.280 --> 0:11:17.400 then after university a few months later I'm on the 0:11:17.440 --> 0:11:19.959 streets of Birmingham. So it's a bit of a bit 0:11:20.000 --> 0:11:22.560 of a shock to the system. In placing you see 0:11:22.559 --> 0:11:24.280 life in the raw, you see the best of people 0:11:24.280 --> 0:11:26.559 and the worst of people. And it was it was fantastic. 0:11:26.679 --> 0:11:29.480 And the thing that stuck with me throughout is our 0:11:29.520 --> 0:11:32.560 people are fantastic because they're so committed to the mission. 0:11:32.880 --> 0:11:36.520 They will stress themselves, strain themselves, put themselves at risk, 0:11:36.720 --> 0:11:38.760 and being part of that has always been a privilege. 0:11:39.120 --> 0:11:42.560 Mark what I find it fascinating of the stereotypes that 0:11:42.600 --> 0:11:46.280 Americans have, our basic ideas. Our police are under the teeth, 0:11:46.679 --> 0:11:49.640 all the uproard ice and all that. Now and am 0:11:49.640 --> 0:11:52.040 I right that a police officer in the streets of 0:11:52.040 --> 0:11:56.200 the United Kingdom doesn't carry a weapon. That's exactly right. First, 0:11:56.240 --> 0:11:58.640 it's still like Mary Poppins. 0:11:58.640 --> 0:12:03.720 Poppins without the Van Dyke accident. It's still careful. Now, 0:12:06.240 --> 0:12:09.920 there's no it's really that's exactly. We've got fewer than 0:12:09.960 --> 0:12:11.840 ten percent of our officers are armed, so we have 0:12:11.880 --> 0:12:14.840 specialists who are highly trained who we deploy to armed incidents. 0:12:15.000 --> 0:12:18.480 We have such a different context. Our firearms legislation is 0:12:18.600 --> 0:12:21.760 really restrictive. It's hard for criminals to get hold of 0:12:21.760 --> 0:12:24.080 guns on the streets of London not impossible, but we're 0:12:24.080 --> 0:12:28.120 constantly suppressing that, stopping organized crime, gangs, bringing illegal firearms 0:12:28.160 --> 0:12:30.440 in the city. I mean, last year twenty twenty five, 0:12:30.520 --> 0:12:33.920 we recorded the lowest per capita homicide rate London's ever had, 0:12:34.480 --> 0:12:37.760 ninety seven. Very mind with slightly bigger city than New York. 0:12:37.880 --> 0:12:40.880 New York's at record low levels as well, that's three hundred, 0:12:41.000 --> 0:12:44.760 we're ninety seven. It's a fantastically safe place and we 0:12:44.760 --> 0:12:47.160 we're really proud of a policing by content style that's 0:12:47.200 --> 0:12:50.439 based on relationships with the community. It's minimum use of force, 0:12:51.240 --> 0:12:53.640 but also being tough when we need to be commissard. 0:12:54.240 --> 0:12:58.200 How many police officers are in London Metropolitan Police and 0:12:58.240 --> 0:13:00.240 give us it's what's a typical officer. 0:13:00.720 --> 0:13:03.000 So we've got about thirty one thousand officers, about ten 0:13:03.040 --> 0:13:06.120 thousand unsworn staff. So we policed like city of nine 0:13:06.160 --> 0:13:08.120 million people and just like New York, you've got then 0:13:08.440 --> 0:13:10.840 millions of tourists and commuters coming in on top of that. 0:13:11.720 --> 0:13:15.880 So we've i put our people into of four four 0:13:15.920 --> 0:13:18.680 board groups. So we've got community police officers. The Foundation 0:13:18.800 --> 0:13:20.280 they were at the same patch every day. They know 0:13:20.320 --> 0:13:24.320 the community. They're fighting crime where people live and building 0:13:24.600 --> 0:13:28.080 that relationship with the communities. Secondly, you've got your response team, 0:13:28.200 --> 0:13:30.840 so you nine nine nine one one in your language, 0:13:31.160 --> 0:13:33.719 nine nine in my language, calls that are going to 0:13:34.080 --> 0:13:38.120 turning up and dealing with crisis sort of stabblings, domestic 0:13:38.120 --> 0:13:41.120 advance where else it might be in the moment. And 0:13:41.160 --> 0:13:44.240 then thirdly, our detectives who are chasing down cases, whether 0:13:44.320 --> 0:13:48.120 it's street violence, whether it's sort of rape and sexual violence, 0:13:48.280 --> 0:13:51.000 and they're all supported by organized crime teams who are 0:13:51.040 --> 0:13:54.280 critical at taking out the most insidious crime underpins it. 0:13:54.840 --> 0:13:56.920 Talk to us about just in the world we live 0:13:56.960 --> 0:14:00.280 in today, just with Iran, what's going on with Thern Yeah, see, 0:14:00.320 --> 0:14:03.319 a global capital, you have to think about what's going 0:14:03.360 --> 0:14:04.640 on in the rest of the world, much like the 0:14:04.640 --> 0:14:07.520 Police Commission of New York City would as well. How 0:14:07.559 --> 0:14:09.560 do you deal with what's going on in other parts 0:14:09.559 --> 0:14:11.880 of the world and help me relate to again a 0:14:11.880 --> 0:14:13.120 world capital like London. 0:14:13.240 --> 0:14:16.520 Yeah, So I was with Jessicatis yesterday. We've got so 0:14:16.640 --> 0:14:20.040 much in con between London and New York and sharing 0:14:20.080 --> 0:14:23.760 ideas and sharing experiences of the threats we're facing with 0:14:23.960 --> 0:14:25.920 probably the two greatest cities in the world, I would say, 0:14:26.080 --> 0:14:29.520 and that connection to the rest of the world, those complex, 0:14:29.560 --> 0:14:33.440 diverse communities, it's a fantastic place to be. But it 0:14:33.520 --> 0:14:35.720 also means you'll link to every challenge in the world. 0:14:35.720 --> 0:14:38.600 So for example, with what's going on at the moment 0:14:38.600 --> 0:14:42.600 in the Middle East, we've had in the last couple 0:14:42.640 --> 0:14:48.960 of years, we've disrupted more than twenty Iranian directed plots 0:14:49.000 --> 0:14:52.120 on the streets of the UK's Wow. So Scotland Yard, 0:14:52.200 --> 0:14:54.280 we don't just polease London. We lead the national CANCI 0:14:54.360 --> 0:14:56.480 terrorism policing effort as well, so we have a national 0:14:56.480 --> 0:14:58.880 responsibility and it is responsibility. 0:14:58.920 --> 0:15:02.840 Smark with us here of course of the London Metropolitan 0:15:02.880 --> 0:15:05.840 Police as Commissioner, honored to have them with us to 0:15:05.880 --> 0:15:07.920 say we say good morning to all of you across 0:15:07.960 --> 0:15:11.720 the United Kingdom and around the world. Bloomberg is surveillance. 0:15:11.760 --> 0:15:15.040 So here's the reality. I'm at Scotts in Mayfair. I'm 0:15:15.040 --> 0:15:17.640 like slumming. I'm at you know where it is, Okay, 0:15:18.000 --> 0:15:20.920 I'm at Scotts and Mayfair. Here's the reality. I never 0:15:21.040 --> 0:15:25.080 sit outside in Europe when I have food or drink 0:15:25.520 --> 0:15:29.280 because the phone goes right off the table. The phones 0:15:29.320 --> 0:15:32.400 get stolen, stolen, stolen, you're leading a charge in it. 0:15:32.760 --> 0:15:35.400 What do you need from Tim Cook? So I can 0:15:35.440 --> 0:15:37.040 sit outside at Scotts again. 0:15:37.320 --> 0:15:40.480 Okay, So firstly what a police doing about it? And 0:15:40.480 --> 0:15:43.200 then what can tech companies do about it? So in 0:15:43.240 --> 0:15:45.680 the center of town now it's at half the rate 0:15:45.760 --> 0:15:48.440 it was a year ago. Last year was ten thousand. 0:15:48.480 --> 0:15:51.920 Few of victims. We've been taking out the organized crime gangs. 0:15:51.920 --> 0:15:55.080 This is a global hundreds of million dollar trade because 0:15:55.440 --> 0:15:58.680 the problem with the security on these phones is that 0:15:59.600 --> 0:16:01.480 the tech companies had an amazing job. So we can 0:16:01.560 --> 0:16:03.840 run our life on our phones, our data secure, people 0:16:03.960 --> 0:16:07.520 run their banks and everything else. That's fantastic, but the 0:16:07.560 --> 0:16:11.640 physical securities had less attention. So the phone that gets 0:16:11.640 --> 0:16:15.840 stolen from you in New York or Paris or London, 0:16:15.840 --> 0:16:19.160 on Madrid or wherever, that can be rebooted and sold 0:16:19.160 --> 0:16:21.280 as nearly new and sort of wiped, not with your 0:16:21.320 --> 0:16:25.640 data in it. Those phones have been exported to China, Africa, 0:16:25.880 --> 0:16:30.280 South America and sold for high value, and that is 0:16:30.360 --> 0:16:33.720 driving the trade. What we need from the tech companies 0:16:33.800 --> 0:16:36.680 is to be able to turn the stolen phone into 0:16:36.680 --> 0:16:39.480 a brick. If you report it stolen, you should be 0:16:39.520 --> 0:16:42.560 able to log onto your Android accounts or your iOS 0:16:42.560 --> 0:16:45.560 account and put it down as stolen, and then it's 0:16:45.640 --> 0:16:48.680 never going to be reactivated. That would crash the secondhand 0:16:48.760 --> 0:16:51.000 value and that would stop the thieving, so we can 0:16:51.120 --> 0:16:53.120 keep driving it down. We hosted a conference in London 0:16:53.200 --> 0:16:58.640 last year. We had we had people, we had Santiago, Tokyo, Barcelona, Rome, 0:16:58.720 --> 0:17:01.320 we had cities across the world are all facing the same. 0:17:01.480 --> 0:17:03.560 This is an issue for global cities happening across the world. 0:17:03.760 --> 0:17:07.800 We went to the moon. Why can't Tim Cook fix 0:17:07.880 --> 0:17:10.560 the phone once and for all. I just don't get it. 0:17:10.600 --> 0:17:13.760 I don't get it either. I hope I have that conversation. 0:17:14.040 --> 0:17:16.880 If we used to have a problem in the UK, 0:17:17.000 --> 0:17:20.400 and I imagine here as well, where thirty years ago 0:17:20.440 --> 0:17:23.639 car radios would be stolen out of cars. Guess what 0:17:23.760 --> 0:17:25.840 we redesigned dashboards, didn't we You can't steal a car 0:17:25.920 --> 0:17:28.240 radio now, it's like integral to whole vehicle. You say 0:17:28.280 --> 0:17:30.200 to your kids you worried about your radio being stolen, 0:17:31.600 --> 0:17:34.080 So why can't we design this at It's the same thing. 0:17:34.520 --> 0:17:36.600 If that was a brick when it was stolen, that 0:17:36.680 --> 0:17:38.160 would kill the global trade. 0:17:38.160 --> 0:17:41.680 In this told us are just about technology broadly in policing. 0:17:42.520 --> 0:17:44.280 I have to think it's like the rest of us 0:17:44.280 --> 0:17:46.400 has changed the way you do your job your first 0:17:46.440 --> 0:17:49.040 days to how you're doing it now. How do you 0:17:49.040 --> 0:17:50.399 stay on top of the technology. 0:17:50.480 --> 0:17:53.159 So that's one of the things Commissa New York and 0:17:53.200 --> 0:17:56.480 I were discussing yesterday, the clever things they've done. We're 0:17:56.480 --> 0:17:59.240 doing exchanging notes on it. Keeping pace with that is 0:17:59.240 --> 0:18:01.800 really critical to keep pace with criminals. Also to make 0:18:02.080 --> 0:18:04.000 best use of the data. A quick couple of examples, 0:18:04.040 --> 0:18:07.600 so we've been using sort of algorithms and sort of 0:18:07.680 --> 0:18:11.040 data science to identify the most dangerous men who are 0:18:11.480 --> 0:18:14.159 poser threat to women and children. So you get all 0:18:14.160 --> 0:18:17.840 these allegations of sexual violence, you follow the case by case, 0:18:17.880 --> 0:18:19.959 but how do you spot the most dangerous man has 0:18:19.960 --> 0:18:22.240 the most big risk out of ten thousands of cases. 0:18:22.560 --> 0:18:24.440 Data science does that and then you throw the kitchen 0:18:24.440 --> 0:18:26.840 singert getting him off the streets and in prison. Another use, 0:18:26.840 --> 0:18:28.680 we've been using facial recognition on the streets to the 0:18:28.760 --> 0:18:31.960 UK life facial recognition. I know that makes people here 0:18:32.160 --> 0:18:34.520 feel a bit nervous. We've been really thoughtful and quite 0:18:34.640 --> 0:18:37.000 about it. We've got eighty five percent public support for it, 0:18:37.280 --> 0:18:41.040 and we're arresting over one thousand people year. It's dangerous offended, 0:18:41.080 --> 0:18:42.919 wanted offenders. It's so powerful. 0:18:43.000 --> 0:18:44.840 Yeah, I mean I looked it up, folks. I mean 0:18:44.920 --> 0:18:46.760 it's it's you know, a Lexus taught me how to 0:18:46.800 --> 0:18:50.760 use Google Gemini and I'm killing it. Jasica t shares 0:18:50.800 --> 0:18:54.320 one hundred thousand cameras. You we have by this listing, 0:18:54.680 --> 0:18:58.719 nine hundred forty thousand cameras. You have eight times as 0:18:58.800 --> 0:19:02.800 many cameras. You have eighty five percent public support from 0:19:02.800 --> 0:19:05.679 where you said, sir Mark, what in God's name is 0:19:05.720 --> 0:19:08.800 America getting wrong? And the idea of getting the thugs 0:19:08.840 --> 0:19:12.800 off the street with cameras? So, I mean, my whole 0:19:12.880 --> 0:19:14.440 knowledge of this is slow horses. 0:19:14.920 --> 0:19:17.160 I think that's that's a great show, isn't it. 0:19:17.160 --> 0:19:21.080 It's a great Is it real? It's slow horses? Horses? 0:19:21.160 --> 0:19:22.800 And I hope my personal hygien is a bit better 0:19:22.800 --> 0:19:23.520 than the lead character. 0:19:23.800 --> 0:19:27.399 When you watch Emma Thompson and down Cemetery Road? Is 0:19:27.400 --> 0:19:27.840 that real? 0:19:28.680 --> 0:19:31.760 It's not. It's not real. It's great fun, though, isn't it. 0:19:31.800 --> 0:19:33.879 I mean, I watched these shows as well. They're fantastic 0:19:34.359 --> 0:19:35.200 any more than a doubt. 0:19:35.200 --> 0:19:38.760 The wire is real. The cameras work right, that's the battle. 0:19:39.240 --> 0:19:41.360 The cameras are fantastic and sort of what they do 0:19:41.520 --> 0:19:45.760 is so we have. How about this our homicide solved 0:19:45.840 --> 0:19:50.000 rate over ninety five percent of cases we solve. That's 0:19:50.080 --> 0:19:52.440 where above American City is. That's partly about technology. It's 0:19:52.440 --> 0:19:56.200 partly about great detectives, the facial recognition stuff. We've worked 0:19:56.240 --> 0:19:58.960 hard to make sure we're using it ethically and carefully. 0:19:59.480 --> 0:20:01.600 We're showing the public the results of the sub dangerous 0:20:01.600 --> 0:20:04.040 sex offenders and the wanted people we're taking off the streets. 0:20:04.160 --> 0:20:06.560 We've got eighty five percent for that support. So I 0:20:06.600 --> 0:20:09.320 think we can in policing make the best use of 0:20:09.320 --> 0:20:11.600 bond technology. We shouldn't be scared of it. He's got 0:20:11.640 --> 0:20:13.240 to be thoughtful and clever about it, because if you 0:20:13.280 --> 0:20:15.840 misuse it, you'll break that trust. And the thing I'm 0:20:15.880 --> 0:20:17.879 most proud of what we're doing in trust in the 0:20:17.880 --> 0:20:20.600 police is going up, even in this world where trust 0:20:20.600 --> 0:20:23.520