WEBVTT - Bloomberg Wall Street Week: Capito, Palmisano, Mallaby 0:00:00.160 --> 0:00:03.360 This is Bloomberg Wall st Week. What's the state of 0:00:03.400 --> 0:00:06.360 corporate governance? The deficit is a real issue. The use 0:00:06.400 --> 0:00:09.880 economy continues to send mixed signals. The financial stories that 0:00:10.000 --> 0:00:13.000 sheep our world fed action to con concerns over dollar 0:00:13.039 --> 0:00:16.520 liquidity and encouraging China data. The five hundred wealthiest people 0:00:16.520 --> 0:00:19.160 in the world. Through the eyes of the most influential 0:00:19.239 --> 0:00:22.880 voices Larry Summers, the former Treasury Secretary, Start CEO, Kevin 0:00:22.960 --> 0:00:26.640 Johnson sec Chairman j Clayton. Bloomberg wool Street Week with 0:00:26.760 --> 0:00:31.040 David Weston from Bloomberg Radio. The game stops, circus moves on, 0:00:31.280 --> 0:00:33.919 and investors turned to hopes of more help from Congress 0:00:34.159 --> 0:00:37.520 and of more vaccines on their way. This is Bloomberg 0:00:37.520 --> 0:00:40.680 Wall Street Week. I'm David Weston. It seems as if 0:00:40.680 --> 0:00:44.000 everyone in America with access to a microphone has been 0:00:44.040 --> 0:00:48.559 telling us this week with stunning hindsight, precisely why the 0:00:48.640 --> 0:00:52.240 Dow Jones industrials took a record five d eight point 0:00:52.520 --> 0:00:55.920 twenty two point six percent NOS dive. Monday time alone 0:00:55.920 --> 0:00:58.600 will tell whether Black Monday enters the history book as 0:00:58.640 --> 0:01:02.080 the day American confidence was so shaken that a premature 0:01:02.160 --> 0:01:05.760 recession resulted. That was Lewis Ruckiser on Wall Street week 0:01:05.800 --> 0:01:09.679 back in seven after Black Monday. Markets have been shaken 0:01:09.720 --> 0:01:12.800 again over the past two weeks as Reddit Day traders 0:01:12.959 --> 0:01:15.960 boosted shares of companies like game Stop and sent short 0:01:16.040 --> 0:01:19.520 selling hedge funds running, with long short funds losing six 0:01:19.560 --> 0:01:23.679 percent overall last month and Melvin Capital alone plummeting fifty 0:01:24.880 --> 0:01:28.760 But most hedge funds emerged unscathed, and Steve Cohen's point 0:01:28.840 --> 0:01:32.319 seventy two even attracted one point five billion dollars in 0:01:32.360 --> 0:01:36.880 new money. Here's SWIFEI Ramachandra, gam investment manager. I assume 0:01:36.959 --> 0:01:40.559 hedge funds are probably reluctant to short small cat stops 0:01:40.640 --> 0:01:43.120 right now the fear that the Reddit brigade might be 0:01:43.000 --> 0:01:45.800 behind those. But by early this week, Game Stops to 0:01:45.959 --> 0:01:49.080 the Moon rallies started to come back towards Earth and 0:01:49.160 --> 0:01:52.080 not even the Reddit flash mob or changes at the 0:01:52.120 --> 0:01:55.720 top of the company could get the irrational exuberance going again, 0:01:56.120 --> 0:01:59.640 reminding us why hedge funds and short sellers target companies 0:01:59.680 --> 0:02:02.760 like Hi Stop. The investor that gets caught in the 0:02:02.880 --> 0:02:06.520 updraft on that and doesn't understand that investing while it 0:02:06.520 --> 0:02:08.600 looks like it's all going up. Did the person who 0:02:08.639 --> 0:02:11.320 clicked the last by understand that could happen to them 0:02:11.360 --> 0:02:15.600 that quickly? That's former each read Financial CEO Carl Rossner. 0:02:15.639 --> 0:02:18.840 I asked counsel on Foreign Relations Senior Fellow Sebasha Malby, 0:02:18.919 --> 0:02:22.200 if anything will fundamentally change in the hedge fund world. 0:02:22.639 --> 0:02:24.840 I don't really. I mean, I think that hedge funds, 0:02:24.840 --> 0:02:27.080 which of course go back to the sixties at least, 0:02:28.080 --> 0:02:31.680 have proven to be an amazingly robust platform from which 0:02:31.720 --> 0:02:35.240 to think creatively about risk um and so they adapt, 0:02:35.320 --> 0:02:38.040 you know, they get new, stuff gets straight in their ways. 0:02:38.520 --> 0:02:40.800 When they began, there was no such thing as trading 0:02:40.840 --> 0:02:45.079 currencies because currencies world fixed together on markets hardly existed. 0:02:45.440 --> 0:02:48.640 You had to trade stocks by appointment. And they adapted 0:02:48.680 --> 0:02:52.400 all the way through that as everything changing, fintech um, 0:02:52.480 --> 0:02:55.320 the advent of Reddit, the advent of robin Hood. This 0:02:55.400 --> 0:02:57.760 is just the latest iteration in a long, long history 0:02:57.800 --> 0:03:01.160 of financial innovation. And every time hedge funds figure it out, 0:03:01.240 --> 0:03:03.600 you also have regulators trying to figure it out, as 0:03:03.639 --> 0:03:06.200 it were. After the fact, we have the Treasure Secretary 0:03:06.280 --> 0:03:09.560 Janet Yellen now saying she's meeting with regulators saying we 0:03:09.600 --> 0:03:11.040 need to take a hard look at this about the 0:03:11.080 --> 0:03:14.760 volatility and whether this might actually put in jeopardy some investors. 0:03:14.760 --> 0:03:17.800 We also have hearings in Congress coming up. Do you 0:03:17.840 --> 0:03:20.840 expect there might be some tweaking at least of the regulations. 0:03:21.000 --> 0:03:23.600 I think with respect to robin Hood and the fact 0:03:23.600 --> 0:03:27.080 that it had to close down access to trading on 0:03:27.120 --> 0:03:30.960 certain stocks, that's the kind of market interruption which regulators 0:03:30.960 --> 0:03:34.680 ought to take action on. Um. You need the infrastructure 0:03:34.680 --> 0:03:37.400 of trading to be reversed, you you know, you need 0:03:37.440 --> 0:03:39.640 to look at the plumbing, as some regulators put it. 0:03:40.360 --> 0:03:42.640 UM So, I think that part of the system will 0:03:42.800 --> 0:03:45.920 definitely deserve a fresh look. What about on the short 0:03:45.960 --> 0:03:48.160 selling side. There have been proposals, as you know well, 0:03:48.640 --> 0:03:51.840 for short sellers to have to disclose their positions individual positions, 0:03:52.320 --> 0:03:54.920 which is done as I understand in Europe. Do you 0:03:54.920 --> 0:03:57.000 think there might be a renewal of that call. And 0:03:57.000 --> 0:03:59.280 by the way, why do we have to disclose on 0:03:59.280 --> 0:04:01.320 the long side and not the short I'm not sure 0:04:01.320 --> 0:04:05.800 actually that hedge funds do disclose on the long side 0:04:05.840 --> 0:04:09.560 unless they buy more than that disclosable threshold. I believe 0:04:09.600 --> 0:04:12.960 it's five percent or something of the company, So you 0:04:12.960 --> 0:04:17.280 can get away with a lot without disclosing. Um. I 0:04:17.320 --> 0:04:20.480 think you know, when you are taking a really big position, 0:04:21.240 --> 0:04:24.240 probably there's a it becomes a systemic threat to you. 0:04:24.800 --> 0:04:27.720 You know, you might blow up if that position were 0:04:27.760 --> 0:04:30.760 to go very badly wrong. And so regulators who care 0:04:30.760 --> 0:04:34.000 about the sundus of the system everall have a legitimate interest. 0:04:34.080 --> 0:04:36.000 But I think, you know, small positions shouldn't have to 0:04:36.040 --> 0:04:38.520 be disclosed. But we certainly had some large hedge ones 0:04:38.560 --> 0:04:41.839 who took a big head, uh, And I wonder whether 0:04:41.880 --> 0:04:44.120 they did suggest it could be systemic risk here. Well, 0:04:44.160 --> 0:04:47.400 the beauty of hedge funds is that through their long 0:04:47.520 --> 0:04:52.080 history they've proven to be small enough to fail, not 0:04:52.160 --> 0:04:54.360 too big to fail. They actually can blow up, and 0:04:54.680 --> 0:04:59.680 people often cite long term capital management as the big 0:04:59.680 --> 0:05:02.440 except actually, if you go back and look at that incident, 0:05:02.880 --> 0:05:06.120 the New York Fed convened the banks to recapitalize it, 0:05:06.160 --> 0:05:11.000 but no taxpayer money zero went in. So free standing 0:05:11.000 --> 0:05:14.480 hedge funds I'm not counting here the subsidiary of bare 0:05:14.520 --> 0:05:17.279 stones that went wrong in oh It, But free standing 0:05:17.320 --> 0:05:20.560 hedge funds have never had a taxpayer bailout. Melvin Capital 0:05:20.720 --> 0:05:22.960 has not needed a taxpayer bailout. That's the good thing 0:05:22.960 --> 0:05:25.000 about hedge funds. That's one of the ironies you point 0:05:25.040 --> 0:05:27.800 out in your Wash and Post column. Actually that aunt 0:05:27.839 --> 0:05:30.280 Reddit people were saying, look at the government bailed out 0:05:30.320 --> 0:05:32.480 these hedge funds. In fact, they didn't get bailed out 0:05:32.480 --> 0:05:34.279 in two thousand eight, two thousand nine at all. Pretty 0:05:34.360 --> 0:05:38.040 much everybody did edgy and ensure all sorts of broker 0:05:38.080 --> 0:05:42.040 dealers like you know, Best Stands and Lehman Brothers went wrong. 0:05:42.720 --> 0:05:45.359 The money market sector, the whole thing went wrong, But 0:05:45.800 --> 0:05:48.719 there isn't an example of a free standing hedge fund 0:05:49.360 --> 0:05:52.360 that needed a bailout. You mentioned robin Hood and its 0:05:52.480 --> 0:05:53.640 role in all this, and the fact that it had 0:05:53.680 --> 0:05:57.520 to curtail trading at one point. Is there room for 0:05:57.800 --> 0:06:00.160 requiring larger reserves coming out of to those nature As 0:06:00.200 --> 0:06:02.839 a nine, I think it's fair to say the banks 0:06:02.839 --> 0:06:06.719 had to have larger reserves to protect the system overall. 0:06:06.960 --> 0:06:09.360 Did this suggest that, particularly when you come to things 0:06:09.480 --> 0:06:12.880 like sort of flash mob phenomenon in social media, maybe 0:06:12.920 --> 0:06:15.240 the broker deals have to have larger reserves. Yes, I 0:06:15.240 --> 0:06:19.040 do think that, and I think particularly the newer brokers 0:06:19.160 --> 0:06:22.440 like Robin Hood which have emerged on the West coast, 0:06:22.600 --> 0:06:26.200 or fintech. They're not a kind of traditional Wall Street firm. 0:06:26.279 --> 0:06:30.359 And those guys have often grown so quickly that the 0:06:30.400 --> 0:06:33.320 regulators are behind the curve. And so I think that 0:06:33.440 --> 0:06:36.080 is the legitimate, you know, focused for for the government. 0:06:36.200 --> 0:06:39.600 Thanks to Sebastian Maloby of the Council on Foreign Relations 0:06:39.600 --> 0:06:43.039 coming up. Big tech gets big earnings, but that doesn't 0:06:43.120 --> 0:06:46.479 keep Jeff Bezos at the helm of Amazon. Sam Pomisano 0:06:46.640 --> 0:06:50.200 ran IBM and he says it's understandable. That's next on 0:06:50.240 --> 0:06:59.640 Wall Street Week on Bloomberg. This is Bloomberg Wall Street Week. 0:07:00.120 --> 0:07:04.239 David Weston from Bloomberg Radio. The Everything Store is getting 0:07:04.279 --> 0:07:08.160 a new CEO. Amazon's founder Jeff Bezos is stepping down 0:07:08.160 --> 0:07:11.680 as CEO to become executive chairman later this year. Here's 0:07:11.680 --> 0:07:15.920 company's CFO, Brian Olsofski. I will reiterate that Jeff is 0:07:16.240 --> 0:07:19.000 not leaving, he is getting a new job. Over the 0:07:19.080 --> 0:07:22.440 last twenty five years under bezos leadership, an idea for 0:07:22.480 --> 0:07:25.720 an online bookstore evolved into a one point seven trillion 0:07:25.720 --> 0:07:29.200 dollar company that changed the face of retail. Like many 0:07:29.280 --> 0:07:32.760 Silicon Valley success stories. Amazon started in a garage after 0:07:32.840 --> 0:07:35.840 Jeff Bezos left his job as a vice president at 0:07:35.920 --> 0:07:40.480 df SHAW in in the late nineteen nineties. The startup 0:07:40.560 --> 0:07:44.840 expanded its offerings from books and music to include consumer goods. 0:07:44.960 --> 0:07:49.760 I emailed a thousand randomly selected customers and asked them, 0:07:49.800 --> 0:07:52.120 besides the things we felt today, what would you like 0:07:52.160 --> 0:07:54.520 to see us? So remember one of the answers was 0:07:55.040 --> 0:07:57.960 I wish you sold Winshield wiper blades because I really 0:07:58.000 --> 0:08:01.480 need Winsfield wiper blades. And I thought to myself, we 0:08:01.520 --> 0:08:05.000 can sell anything this way. That's Jeff Bezos in two eighteen. 0:08:05.320 --> 0:08:07.800 Even after Amazon went public, it failed to turn a 0:08:07.880 --> 0:08:11.320 profit until two thousand one. Bezos business model of keeping 0:08:11.400 --> 0:08:14.720 inventory low and selling products for low prices save the 0:08:14.760 --> 0:08:17.600 company during the dot com bubble. Even his peers like 0:08:17.680 --> 0:08:21.760 pets dot Com went bust. Here's Scott Kessler from Third Bridge. 0:08:22.080 --> 0:08:25.720 He obviously is going to have huge influence still, but 0:08:25.800 --> 0:08:29.920 it's going to be more from a vision and strategic perspective. 0:08:30.080 --> 0:08:32.800 Bezos returned to his passion for books when Amazon released 0:08:32.800 --> 0:08:35.440 its first Kindle in two thousand seven, changing the way 0:08:35.480 --> 0:08:39.720 people read books while building an e commerce empire. Bezos 0:08:39.760 --> 0:08:42.400 also wears a couple of other hats, as the owner 0:08:42.440 --> 0:08:45.000 of The Washington Post and founder of the space company 0:08:45.120 --> 0:08:48.680 Blue Origin. So I think it leaves Jeff Bezos able 0:08:48.760 --> 0:08:51.600 to concentrate on building rockets and the things that he 0:08:51.640 --> 0:08:53.840 wants to do with someone at the helm that he 0:08:53.920 --> 0:08:57.960 can really trust. That's Melissa Burdick, the president of pack View. 0:08:58.240 --> 0:09:02.000 More recently, Amazon's profit and has been its cloud computing arm, 0:09:02.080 --> 0:09:06.079 Amazon Web Services, which launched in two thousand three, AWS 0:09:06.160 --> 0:09:11.120 accounted for six of Amazon's operating income in making Amazon 0:09:11.200 --> 0:09:14.120 the world leader in cloud computing. And so it should 0:09:14.120 --> 0:09:16.480 come as no surprise the Bezo successor will be the 0:09:16.520 --> 0:09:21.960 man who runs AWS, Andy Jesse. Here's estimized CEO Lee Droken. 0:09:22.120 --> 0:09:25.520 I think this makes total sense. I think it's underappreciated 0:09:26.400 --> 0:09:32.760 just how amazing and innovative and important to everything that 0:09:32.840 --> 0:09:36.520 goes on basically in technology today that AWS is and 0:09:36.880 --> 0:09:40.400 was Wall Street We contributor Sam Paul Maisano ran IBM, 0:09:40.520 --> 0:09:43.840 and he says it's understandable that Jeff Bezos has decided 0:09:44.000 --> 0:09:46.720 to make the transition. Well, it's not really a hard 0:09:46.800 --> 0:09:49.840 thing to do, I mean, especially when you've built the company. 0:09:49.920 --> 0:09:52.760 I mean one thing, I was nine to ten years 0:09:52.800 --> 0:09:54.760 of CEO and I grew up in IBM. I love 0:09:54.840 --> 0:09:58.520 IBM obviously, but it wasn't mine, it wasn't my creation. 0:09:58.559 --> 0:10:01.200 It was the Watson family. And so if you're the 0:10:01.240 --> 0:10:04.199 founder like Jeff, I can imagine it's a very very 0:10:04.240 --> 0:10:07.679 difficult decision to make. However, at the same time, he's 0:10:07.720 --> 0:10:10.360 really not leaving the company because he's still executive chairman, 0:10:10.400 --> 0:10:12.160 so he still has a role. But at the same time, 0:10:12.280 --> 0:10:14.760 his role the company is really different. The company is 0:10:14.840 --> 0:10:16.880 different at this point as well. It's not at this 0:10:17.480 --> 0:10:20.719 Mete York rise that it's had. It's now getting the 0:10:20.800 --> 0:10:24.280 siege by the government. Yeah, well that's exactly as quite 0:10:24.320 --> 0:10:26.199 interesting as you know. And the same thing has happened 0:10:26.200 --> 0:10:28.920 to other companies. We've talked about Microsoft, IBM, A, T 0:10:29.040 --> 0:10:32.640 and T, and it's I would I look back when 0:10:32.640 --> 0:10:35.079 it comes with success, I mean, when you're that successful, 0:10:35.120 --> 0:10:37.400 when you get that large, people are going to come 0:10:37.440 --> 0:10:40.360 after you, and usually it's your competition quite honestly. But 0:10:40.400 --> 0:10:43.520 then they lobbed me the various government entities, and then 0:10:43.559 --> 0:10:46.720 politics takes over and then you find yourself on these 0:10:46.760 --> 0:10:50.880 difficult situations. My experience, the founders have a very hard 0:10:51.000 --> 0:10:54.360 time with that. They can't understand how that could happen. 0:10:54.400 --> 0:10:56.240 I'm not saying that's the case for Jeff, but my 0:10:56.320 --> 0:10:59.080 experience with both talking with Bill Gates and spending a 0:10:59.080 --> 0:11:02.640 lot of time because I support Mr Watson Jr. As 0:11:02.640 --> 0:11:04.520 when I was executive assistant to the chairman and the 0:11:04.520 --> 0:11:08.000 CEO of IBM H and I had firsthand conversations with him, 0:11:08.040 --> 0:11:10.920 so you could see as a foundery that was a 0:11:11.040 --> 0:11:14.640 very hard thing for him to psychologically cope with. Well, 0:11:14.679 --> 0:11:16.640 I mean, you ran a big company that was under 0:11:16.679 --> 0:11:19.520 siege from the government. Is it possible not just for 0:11:19.559 --> 0:11:22.200 psychological reasons, is not not as much fun to defend? 0:11:22.600 --> 0:11:24.320 But also for the stake of the company. Is it 0:11:24.360 --> 0:11:26.960 better to have somebody a little more detached where it's 0:11:26.960 --> 0:11:30.120 not literally their child. I think that that is that's 0:11:30.160 --> 0:11:32.680 the way to think about it. I mean, basically what 0:11:32.840 --> 0:11:36.280 happened in IBM's example, UM and I spent a time 0:11:36.280 --> 0:11:39.360 with Tom Watson, and I was Frank Cary who became chairman, 0:11:39.640 --> 0:11:42.440 and then John ople who became CEO. But Mr Watson 0:11:43.160 --> 0:11:45.680 uh made a decision and he was still the founder 0:11:45.679 --> 0:11:49.280 in the majority shareholder, but made a decision that Kerry 0:11:49.280 --> 0:11:51.760 would become chairman and worked with the government and try 0:11:51.800 --> 0:11:53.880 to resolve the suit and John Wan around the company. 0:11:54.160 --> 0:11:56.880 So there really was kind of a division of responsibilities. 0:11:57.240 --> 0:11:59.760 I think that's really really important because it's really hard 0:11:59.800 --> 0:12:02.719 not think it distracted if you look what happens long 0:12:02.840 --> 0:12:06.000 term over these suits. IBM, we missed the thing called 0:12:06.080 --> 0:12:10.720 client server. Microsoft obviously did extremely well there. Microsoft missed 0:12:10.760 --> 0:12:13.920 the Internet, you know, And I think it's distraction. I 0:12:13.960 --> 0:12:16.080 really think a lot of that is because when you 0:12:16.160 --> 0:12:18.920 are the CEO and you're also dealing with the government suit, 0:12:19.320 --> 0:12:21.839 between the legal pressures and the advice you're getting from 0:12:21.840 --> 0:12:24.280 counsel and how you should proceed, how you should set strategy, 0:12:24.640 --> 0:12:27.520 the company gets distracted for a period of time. In 0:12:27.520 --> 0:12:29.960 our case that was almost ten years. Of Microsoft's case, 0:12:30.000 --> 0:12:31.680 I think it was more than ten, maybe twelve. A 0:12:31.760 --> 0:12:34.040 T and T you know, that happens, and then as 0:12:34.080 --> 0:12:36.680 a result of that, you missed these big technological shifts. 0:12:36.800 --> 0:12:39.720 One of the things that no one's been distracted from 0:12:39.800 --> 0:12:43.559 is the cloud. The dramatic rise in the cloud, including 0:12:43.600 --> 0:12:46.319 an Amazon not loomed Amazon. It's probably no coincidence that 0:12:46.400 --> 0:12:49.320 the person is succeeding Jeff Bezos really was running the 0:12:49.320 --> 0:12:52.240 cloud operation at Amazon. What do you make of that 0:12:52.360 --> 0:12:55.480 change in technology overall, that huge move into the cloud. Well, 0:12:55.480 --> 0:12:58.200 it's interesting because if you if you think about where 0:12:58.200 --> 0:13:00.720 Amazon began, there was an engine, apes and books on 0:13:00.760 --> 0:13:04.920 the internet. Basically right now they're the largest provider of 0:13:04.960 --> 0:13:07.200 cloud services to AWS, which you know, as you knew 0:13:07.240 --> 0:13:12.520 Andy was running UH at Amazon. Now having said all that, um, 0:13:12.559 --> 0:13:15.400 it's a huge transition of the infrastructure, I think I 0:13:15.400 --> 0:13:18.200 think you might find of interest is that if you 0:13:18.240 --> 0:13:21.120 look at the most recent CEO appointments over the past 0:13:21.160 --> 0:13:28.680 couple of years, they all have cloud experience. Amazon, Google, Microsoft, IVM, right, 0:13:29.200 --> 0:13:33.360 So that indicates that the the leadership of those companies 0:13:33.360 --> 0:13:36.040 have concluded that the skill set required for the future 0:13:36.400 --> 0:13:38.920 is someone who understands those technologies that are going to 0:13:38.960 --> 0:13:42.319 transition those companies and those business models into this cloud 0:13:42.400 --> 0:13:45.679 ear and put on top of that, artificial intelligence is 0:13:45.720 --> 0:13:48.480 the compounding of both of those things. But all those 0:13:48.520 --> 0:13:51.480 people have those backgrounds. So I think there's a it's 0:13:51.520 --> 0:13:54.319 an interesting pattern and emerging here becomes the leadership of 0:13:54.360 --> 0:13:57.800 these tech companies. We've already seen dramatic growth in the 0:13:57.800 --> 0:14:01.559 cloud business overall, just the business growing. How far along 0:14:01.600 --> 0:14:03.720 the curve are we, I mean, how far are they 0:14:03.720 --> 0:14:05.760 from it being a matur of business as it were. 0:14:06.240 --> 0:14:09.559 It's very early stage. I mean, it's been going on. 0:14:09.760 --> 0:14:12.120 I'm going to guess ten fifteen. If you get back 0:14:12.120 --> 0:14:13.960 to the early days of research and I was still 0:14:13.960 --> 0:14:16.160 working back then, a lot of this stuff was in 0:14:16.240 --> 0:14:19.840 researcher and academic institutions, and then it went from simple 0:14:19.920 --> 0:14:23.440 things like application development to actually doing production work, you know, 0:14:23.560 --> 0:14:25.560 real work the companies do in their core in a 0:14:25.600 --> 0:14:28.320 safe and resilient way. So now it's going to go 0:14:28.440 --> 0:14:30.720 beyond that. It's going to support all these advanced technologies 0:14:30.720 --> 0:14:33.720 as far as application I mean obviously artificial intelligence and 0:14:33.760 --> 0:14:36.600 those sorts of things. That was former IBM CEO Sam 0:14:36.640 --> 0:14:41.280 Pomisano coming up the prospects for another round of fiscal simulus. 0:14:41.480 --> 0:14:44.680 Senator Shelley Moore, Capital of West Virginia, says Democrats are 0:14:44.680 --> 0:14:47.560 committed to getting it done one way or the other. 0:14:47.920 --> 0:14:55.720 That next on Wall Street Week on Bloomberg. This is 0:14:55.760 --> 0:14:59.960 Bloomberg Wall Street Week with David Weston from Bloomberg. Rady 0:15:00.400 --> 0:15:03.400 President Biden pressed his case for another one point nine 0:15:03.440 --> 0:15:06.200 trillion dollars in stimulus money to support the U. S economy, 0:15:06.520 --> 0:15:09.960 including meeting at the White House with ten Republican senators 0:15:10.000 --> 0:15:13.600 who have proposed a compromise package that would get bipartisan support. 0:15:14.120 --> 0:15:16.280 We talked with one of those who met with the President, 0:15:16.400 --> 0:15:20.120 Senator Shelley Moore, Capital of West Virginia, for her take 0:15:20.320 --> 0:15:23.680 on that meeting. He didn't make any promises, He listened intently, 0:15:23.800 --> 0:15:26.400 is very well prepared, and he seemed to be interested 0:15:26.440 --> 0:15:30.000 in particularly in the targeting numbers on individual checks in 0:15:30.080 --> 0:15:32.320 terms of do we really want to be sending checks 0:15:32.320 --> 0:15:35.000 to families that are making three thousand dollars a years 0:15:35.000 --> 0:15:38.040 whose life really have not changed. And so I think 0:15:38.080 --> 0:15:41.160 that was the biggest area that he signaled that he 0:15:41.240 --> 0:15:44.120 might make some make some adjustments, but that's yet to 0:15:44.120 --> 0:15:46.880 be seen. There are some reports on the Bloomberg actually 0:15:46.920 --> 0:15:48.760 about the very point you just made that if you 0:15:48.800 --> 0:15:51.720 really look at the upper end before it really phases out, 0:15:51.880 --> 0:15:53.560 there are some people who are making a fair amount 0:15:53.560 --> 0:15:55.640 of money and as you say, maybe didn't lose their jobs. 0:15:55.920 --> 0:15:58.360 Do you have an approach in euro compromise proposal to 0:15:58.400 --> 0:16:00.240 deal with that, and did the President indicate maybe that 0:16:00.320 --> 0:16:02.520 made sense that sort of approach. Well, what we did 0:16:02.600 --> 0:16:05.400 was we lowered the the income level of which you 0:16:05.400 --> 0:16:07.760 would be available to get a stimulus check to about 0:16:07.800 --> 0:16:10.880 a hundred and fifty thousand per couple, and we felt 0:16:10.920 --> 0:16:13.720 like in the statistics bear out that you're using this 0:16:13.760 --> 0:16:15.920 a stimulus, this is money. We went back into the 0:16:15.960 --> 0:16:20.000 economy and at those income levels where people really are hurting, 0:16:20.000 --> 0:16:22.600 maybe can't pay their rent, by their food, Uh, they 0:16:22.600 --> 0:16:25.240 are spending their stimulus checks. If you get up into 0:16:25.640 --> 0:16:28.560 over two hundred or three hundred thousand dollars, people are 0:16:28.600 --> 0:16:31.480 saving it or they're not using it to provide that 0:16:31.520 --> 0:16:34.560 stimulus that we really need to keep this economy moving. 0:16:34.640 --> 0:16:36.600 And and also I think do we want, really want 0:16:36.600 --> 0:16:40.080 to be sending two expayer dollars to people who have 0:16:40.200 --> 0:16:43.280 had really little or no effects during this pandemic. Talk 0:16:43.280 --> 0:16:45.480 about climate for a second, because President Biden has been 0:16:45.480 --> 0:16:48.200 fairly aggressive and executive orders so far, and your home 0:16:48.240 --> 0:16:50.600 state of West Virginia, do you envision a world in 0:16:50.640 --> 0:16:53.600 which you can redirect your economy into clean energy and 0:16:53.640 --> 0:16:56.360 actually keep the jobs or even increase the jobs. Well, 0:16:56.480 --> 0:16:58.680 let's look at what a state like West Virginia has 0:16:58.720 --> 0:17:02.040 provided and provides for the nation. We have natural resources 0:17:02.040 --> 0:17:04.560 of coal and natural gas that we've powered this nation 0:17:04.640 --> 0:17:07.400 for over a century, and and we have a lot 0:17:07.440 --> 0:17:10.639 of great, hard working people. We're looking for stability and 0:17:10.680 --> 0:17:14.040 we're looking for easier transitions. We did not get that 0:17:14.080 --> 0:17:17.119 in the Obama administration. The troubling thing to me is 0:17:17.240 --> 0:17:20.520 it's the same faces and the Biden administration, and that 0:17:20.640 --> 0:17:23.080 signals to me that they have no interest in taking 0:17:23.080 --> 0:17:28.560 into consideration the ravage that the policies reek on places 0:17:28.600 --> 0:17:31.760 like West Virginia. But we are transitioning in West Virginia 0:17:31.800 --> 0:17:34.480 to a more high tech economy. We're working as hard 0:17:34.520 --> 0:17:36.960 as we can to work with research and development to 0:17:37.040 --> 0:17:42.000 keep those energy processes moving. But we cannot just drop 0:17:42.200 --> 0:17:45.479 certain people off of the ledge like that like we 0:17:45.480 --> 0:17:48.080 were dropped off over the last eight years of the 0:17:48.080 --> 0:17:52.920 Obama administration and think it's okay. Because joblessness, depression, rise 0:17:52.920 --> 0:17:56.040 in opioid and drug addiction, it's been really devastating for 0:17:56.080 --> 0:17:57.840 our state and tough for me to watch as a 0:17:57.920 --> 0:18:01.000 native West Virginia. The Senate has other business it has 0:18:01.040 --> 0:18:04.800 to attend to with a trial of former President Trump 0:18:04.840 --> 0:18:08.359 coming up on impeachment charges, is there any prospect of 0:18:08.440 --> 0:18:11.359 his being convicted? And specifically, as I understand it, you 0:18:11.400 --> 0:18:14.439 were one of the Republican senators who voted to say, actually, 0:18:14.520 --> 0:18:16.720 it shouldn't even going forward because he's no longer in office. 0:18:16.760 --> 0:18:18.920 So those people who voted that way, there's no way 0:18:18.960 --> 0:18:20.639 you're gonna convict him, and haven't said you shouldn't be 0:18:20.680 --> 0:18:22.359 having a trial, right, And doesn't that take care of 0:18:22.359 --> 0:18:25.000 the two thirds requirement? You know, I am charged as 0:18:25.040 --> 0:18:26.520 being a jour and I'm going to listen to what 0:18:26.600 --> 0:18:29.000 comes through on the appeachment trial. But I do believe, 0:18:29.119 --> 0:18:33.160 as I voted, that the Constitution says that you would 0:18:33.160 --> 0:18:37.479 remove and uh and prevent the president from running again. Well, 0:18:37.560 --> 0:18:40.600 we can't remove an impeachment because he's not the president. 0:18:40.960 --> 0:18:43.800 So that sort of nullifies, in my view, the vision 0:18:43.840 --> 0:18:46.800 that the founders had and making it I think a 0:18:46.840 --> 0:18:51.160 strong constitutional argument that you can impeach a president who's 0:18:51.200 --> 0:18:53.760 already out of office. So I think a lot of 0:18:53.800 --> 0:18:55.840 us felt that way. I think it's gonna be difficult 0:18:55.880 --> 0:18:57.760 to convict, but we haven't heard the evidence yet, and 0:18:57.760 --> 0:19:00.000 I think I would reserve judgment on that the center. 0:19:00.040 --> 0:19:01.639 I want to wrap this up by letting you brag 0:19:01.680 --> 0:19:03.920 on your state here a little bit, because your vaccination 0:19:04.000 --> 0:19:06.680 Rachel West Virginia are pretty impressive. What are you doing 0:19:06.720 --> 0:19:08.719 in West Virginia? What can you teach the rest of us? 0:19:08.840 --> 0:19:10.560 You know, what we're doing in West Virginia is we're 0:19:10.640 --> 0:19:13.480 utilizing all of our local assets. Uh. The governor has 0:19:13.480 --> 0:19:15.840 done a great job along with the National Guard, our 0:19:15.920 --> 0:19:19.760 local pharmacies, our city mayors and counties, our county health 0:19:19.760 --> 0:19:23.280 departments have been fantastic. The federal government laid out a 0:19:23.280 --> 0:19:27.240 plan for vaccination delivery and and dispensing. We went away 0:19:27.240 --> 0:19:29.199 from that and created our own plan because we know 0:19:29.280 --> 0:19:31.680 each other best and so we have the best vaccine 0:19:31.800 --> 0:19:34.720 vaccine distribution in the country. We're proud of it. We 0:19:34.800 --> 0:19:39.360 have I think a a a away, a way forward 0:19:39.400 --> 0:19:41.760 for states to get more shots in the arms quicker, 0:19:42.119 --> 0:19:43.760 and that's what we're doing in West Virginia. We have 0:19:43.760 --> 0:19:46.800 a vulnerable population. It is really important that we get 0:19:46.800 --> 0:19:49.480 those nursing home and assisted living folks taking care of First. 0:19:49.760 --> 0:19:52.080 We knew where they all were because we've been testing them. 0:19:52.119 --> 0:19:56.760 So it's just really been a logistical win for us. 0:19:56.800 --> 0:19:58.399 And we're really proud of it. What's I can to 0:19:58.480 --> 0:19:59.800 do for your economy because a lot of people are 0:19:59.840 --> 0:20:01.400 can Sara. If you can't get in vaccinaty, you can't 0:20:01.400 --> 0:20:04.360 get people back out to restaurants and things like that. Well, 0:20:04.400 --> 0:20:08.320 our schools reopened about two weeks ago and uh, and 0:20:08.400 --> 0:20:10.439 you know, there's been some pushback like we see across 0:20:10.480 --> 0:20:13.159 the nation, but by and large they're reopened and that's big. 0:20:13.400 --> 0:20:15.800 Our restaurants are reopening. Uh. And as we get this 0:20:15.840 --> 0:20:18.920 back distribution, we get those double shots for the ones 0:20:18.960 --> 0:20:22.520 that need the two shots. I think by the time 0:20:22.640 --> 0:20:26.240 are a great tourism um season comes along in the spring. 0:20:26.280 --> 0:20:28.159 We have a great winter one two in the spring. 0:20:28.600 --> 0:20:30.159 It's going to be great. We have a new National 0:20:30.160 --> 0:20:31.879 park in West Virginia. We were able to get at 0:20:31.920 --> 0:20:33.639 the end of the year, so we got lots to see. 0:20:33.920 --> 0:20:37.520 That was Senator Shelley Wore, Capital of West Virginia. Coming up, 0:20:37.560 --> 0:20:40.280 we wrap up the week with special contributor Larry Summers 0:20:40.320 --> 0:20:48.560 of Harvard. This is Wall Street Week on Bloomberg. This 0:20:48.920 --> 0:20:53.440 is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 0:20:53.600 --> 0:20:55.399 We're gonna wrap up the week as always with our 0:20:55.440 --> 0:20:58.960 special contributed Larry Summers of Harvard. So, Larry, I guess 0:20:58.960 --> 0:21:01.720 the big news this week is about the stimulus bill 0:21:01.800 --> 0:21:04.600 at one point nine trillion dollars President Biden is proposing. 0:21:04.920 --> 0:21:06.880