WEBVTT - Bloomberg Businessweek Weekend - May 28th, 2021 0:00:01.080 --> 0:00:05.440 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news As it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.319 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.440 --> 0:00:24.440 edition of Bloomberg Business Week, the weekend holiday edition as 0:00:24.480 --> 0:00:26.960 the summer officially kicks off here in the US. That 0:00:27.080 --> 0:00:30.760 was quick, Yeah, thank god? All right, Tim. It's also 0:00:30.800 --> 0:00:33.400 a double issue of the magazine coming up. But look 0:00:33.400 --> 0:00:35.840 at the promise of bitcoin with the CEO of digital 0:00:35.880 --> 0:00:39.400 wallet company Ballet. Also an important and solemn week is 0:00:39.440 --> 0:00:41.600 we marked the one year anniversary of the death of 0:00:41.600 --> 0:00:44.960 George Floyd, the president and CEO of the National Urban League. 0:00:45.080 --> 0:00:48.160 On where we are today a really thoughtful conversation, plus 0:00:48.240 --> 0:00:50.920 Lords of London on billions of dollars of claims during 0:00:50.920 --> 0:00:53.599 the pandemic. All of that to come. We begin with 0:00:53.640 --> 0:00:56.520 this week's cover story, someone who is well known to 0:00:56.600 --> 0:01:00.520 our Bloomberg audience for her investment bets and her per formans. 0:01:00.600 --> 0:01:02.800 It's all about Kathy Would, who has become a star 0:01:02.920 --> 0:01:05.360 both in and outside of the world of e t s. 0:01:05.560 --> 0:01:07.840 They call her money Tree in South Korea and the 0:01:07.880 --> 0:01:11.120 Godmother in Hong Kong. Joining us now is Joel Weber, 0:01:11.240 --> 0:01:14.840 editor at Bloomberg business Week, and Ben Steveerman, personal Finance 0:01:14.920 --> 0:01:19.240 editor at Bloomberg News. Joel Uh. People may know about 0:01:19.280 --> 0:01:23.240 Kathy Would over the last year because she has become 0:01:23.280 --> 0:01:27.400 this celebrity inside and outside of finance, but she got 0:01:27.480 --> 0:01:31.440 started at ARC relatively late in her career and she's 0:01:31.480 --> 0:01:35.600 been at this for years. Yeah, And what we really 0:01:35.600 --> 0:01:37.400 tried to do, I think we talked about Kathy Would 0:01:37.440 --> 0:01:40.560 almost every day in general at Bloomberg News because it's 0:01:40.600 --> 0:01:43.039 become just one of the most remarkable stories of the 0:01:43.040 --> 0:01:45.440 past year. Um. But we what we tried to do 0:01:45.480 --> 0:01:48.640 and what Ben in Um, Claire Valentine and any Massa 0:01:48.680 --> 0:01:50.760 did with this cover story was really tried to tell 0:01:50.800 --> 0:01:53.280 a bigger story about who Kathy Wood is, where she 0:01:53.360 --> 0:01:56.840 can came from, how she's up ended investing and and 0:01:56.840 --> 0:01:59.720 maybe pull you know, pull some things that out that 0:01:59.760 --> 0:02:02.680 nobody you had ever really known about her, and they 0:02:02.760 --> 0:02:05.760 did that, and you know, it's really rooted in her 0:02:06.040 --> 0:02:09.359 I think having a really deep understanding of the financial industry. 0:02:10.240 --> 0:02:13.800 Before she started arc Um, she she had an active 0:02:13.919 --> 0:02:16.359 the idea of doing an actively managed g T F 0:02:17.480 --> 0:02:21.240 at um Alliance Bernstein, which basically said, we don't want 0:02:21.280 --> 0:02:23.000 you to do that, and she went out and did 0:02:23.000 --> 0:02:26.000 it anyway, and that's made her basically one of the 0:02:26.000 --> 0:02:29.600 biggest names in in finance at the moment um And Ben, 0:02:29.680 --> 0:02:32.760 as you just started to you know, working on this story, 0:02:33.120 --> 0:02:35.760 what what stuck out to you? What makes Cathy different 0:02:35.800 --> 0:02:39.520 and special? So I think that you know, in the 0:02:39.639 --> 0:02:45.080 last year, the pandemic has created um a lot of frenzies. 0:02:45.120 --> 0:02:47.440 Like we've seen a lot of frenzies in the stock market, 0:02:47.480 --> 0:02:50.400 and we've seen a lot of people promoting themselves and 0:02:50.400 --> 0:02:52.840 promoting their SPACs, and we've seen a lot of that 0:02:53.040 --> 0:02:58.440 phenomenon of almost celebrity culture coming into finance and investing. 0:02:59.000 --> 0:03:02.560 And so I approach Cathy would as maybe part of that. 0:03:02.600 --> 0:03:04.560 But now, you know, the more I looked at her, 0:03:04.600 --> 0:03:07.919 the more I realized that she's actually been this same 0:03:07.919 --> 0:03:11.800 person for for for decades, Like she is obsessed with 0:03:11.840 --> 0:03:15.519 innovation and the future and and what she was saying, 0:03:16.040 --> 0:03:18.720 you know, five years before the pandemic is the same 0:03:18.760 --> 0:03:21.680 thing she's saying now more or less, maybe the timeline 0:03:21.680 --> 0:03:25.560 has accelerated a bit in terms of the the changes 0:03:25.760 --> 0:03:28.920 she sees in the economy and the stock market. But um, 0:03:29.280 --> 0:03:33.640 I really think that um investing in these these future 0:03:33.639 --> 0:03:37.520 technologies is more is almost more about her her like 0:03:37.600 --> 0:03:40.520 philosophy of life than it is about making money. I mean, 0:03:40.560 --> 0:03:42.200 of course she's in it to make money, but I 0:03:42.200 --> 0:03:44.760 think she has broader goals in mind. Well then to 0:03:44.760 --> 0:03:46.600 that point, and among the many, many new things that 0:03:46.640 --> 0:03:49.160 I learned about Cathy would in this cover story about 0:03:49.160 --> 0:03:52.960 you and Claire and Annie has has been that she 0:03:53.080 --> 0:03:56.240 talked about that She had this rarely prescient comment back 0:03:56.240 --> 0:03:58.720 in February of twenty nineteen when she told a podcast, 0:03:59.160 --> 0:04:01.480 it's the the best thing that can happen for us. 0:04:01.560 --> 0:04:03.920 And this is going to sound odd. Is a crisis, 0:04:03.920 --> 0:04:07.880 It's usually when innovation takes root and gains traction. So so, 0:04:07.920 --> 0:04:09.600 how did that play out during the pandemic? How did 0:04:09.640 --> 0:04:11.360 this five year time arise and that she talks about 0:04:11.360 --> 0:04:16.599 so much, Trunk had accelerate, Yeah, I mean, she it's 0:04:16.600 --> 0:04:19.719 incredible if you look at the numbers on her flagship 0:04:19.800 --> 0:04:22.919 et F. I mean we're talking about a hundred fifty return. 0:04:24.640 --> 0:04:27.960 She was right on she she she she captured the 0:04:28.440 --> 0:04:31.159 mood of the market in that moment, and then it 0:04:31.200 --> 0:04:34.880 continued to go up all the way into February. Now 0:04:34.920 --> 0:04:38.120 since then, um, she's lost about a third of the 0:04:38.200 --> 0:04:40.919 value in in her fund because you know, as the 0:04:40.920 --> 0:04:43.960 economy has reopened, the market has been shifting towards a 0:04:44.000 --> 0:04:47.880 little bit more boring stocks of the broader the rally 0:04:47.960 --> 0:04:50.159 is broadened out. And she says that's actually good for 0:04:50.200 --> 0:04:53.080 her because it means that means that this is actually 0:04:53.080 --> 0:04:58.400 a sustainable bull market. And she's keeps selling her investors 0:04:58.480 --> 0:05:02.000 who's mostly stuck with their that um that she has 0:05:02.040 --> 0:05:05.120 a five year time horizon and she still expects her 0:05:05.120 --> 0:05:08.159 portfolio to triple over those five years. Funny if people 0:05:08.200 --> 0:05:11.320 don't believe that, I gotta say um. And so we 0:05:11.360 --> 0:05:13.800 try to reflect the debate in the story about you know, 0:05:13.920 --> 0:05:17.400 is she right, is she wrong? Um? You know, is 0:05:17.480 --> 0:05:20.039 this a real grounded opinion or or is she just 0:05:20.640 --> 0:05:25.039 really hoping against hope? But um, but she's she seems 0:05:25.040 --> 0:05:28.320 pretty unruffled by what's happened recently. That was Bloomberg News 0:05:28.320 --> 0:05:30.839 reporter Ben Steve Berman and Business Week editor Joel Weber 0:05:31.160 --> 0:05:33.640 Coming up. It's been just over a years since George 0:05:33.640 --> 0:05:37.240 Floyd's murder sparked outrage across the globe and became a 0:05:37.279 --> 0:05:40.440 turning point in the movement to end racially motivated police violence. 0:05:40.760 --> 0:05:43.279 National or Been League President and CEO Mark Morial on 0:05:43.320 --> 0:05:46.120 the progress we've made sense and how far there's still 0:05:46.160 --> 0:05:49.680 to go. You're listening to Bloomberg Business Week. This is Bloomberg. 0:05:56.720 --> 0:06:00.719 This is Bloomberg Business Week with Carol Massier and Bloomberg 0:06:00.760 --> 0:06:06.200 Quick Takes Tim Stinovik from Bloomberg Radio. Nine minutes, twenty 0:06:06.279 --> 0:06:08.720 nine seconds. That's how long it took for George Floyd 0:06:08.720 --> 0:06:11.480 to lose his life one year ago this week, at 0:06:11.480 --> 0:06:14.560 the hands of a white Minneapolis police officer, Derek Chauvin. 0:06:15.080 --> 0:06:17.640 Now the revelation of that loss of life seen by 0:06:17.640 --> 0:06:20.000 the world, so many of us stuck at home because 0:06:20.000 --> 0:06:23.360 of the pandemic. It ignited rage, set off protests and 0:06:23.560 --> 0:06:27.200 soul searching not seen in years. The problems not new, 0:06:27.440 --> 0:06:30.120 change and solutions still a work in progress. For more 0:06:30.120 --> 0:06:32.479 on where we are, what we've learned one year later, 0:06:32.520 --> 0:06:34.719 and how much more we have to go. Carol, you 0:06:34.760 --> 0:06:37.720 caught up with National Urban League President CEO Mark Morial, 0:06:37.839 --> 0:06:41.200 along with Bloomberg News New York Deputy Bureau Chief Shartilla Brantley, 0:06:41.440 --> 0:06:44.160 on the one year anniversary of the death of George Floyd. 0:06:44.240 --> 0:06:47.880 It's all about action now. Last year, you know, there 0:06:47.920 --> 0:06:49.880 was a lot of talk, a lot of pledges, a 0:06:49.920 --> 0:06:53.719 lot of commitments, and that's a good thing. But I 0:06:53.760 --> 0:06:58.560 think as we've seen work from home advance by leaps 0:06:58.600 --> 0:07:02.800 and bounds, people want to see equity and equality advanced 0:07:02.800 --> 0:07:05.880 by leaps and bounds. And I think people are done 0:07:06.000 --> 0:07:11.920 with the incremental, you know, progress, the glacial pace of progress. 0:07:12.000 --> 0:07:14.160 And you know, I'll give it to our gen z, 0:07:14.360 --> 0:07:18.240 the Zoomers. They're over it. They want it yesterday, right 0:07:18.240 --> 0:07:21.320 tomorrow exactly and safe to say after, you know, when 0:07:21.920 --> 0:07:23.880 after George Floyd, like we just talked about, We've had 0:07:23.880 --> 0:07:27.120 so many conversations. Let's see the action. Mark. The problem 0:07:27.200 --> 0:07:30.400 is not new. Where are we today, what have we learned? 0:07:30.760 --> 0:07:32.360 And how much more do we have to go? In 0:07:32.400 --> 0:07:35.120 your view, I think we should keep in mind that 0:07:35.280 --> 0:07:39.120 the courage of Darnella Frasier, a teenage girl who had 0:07:39.200 --> 0:07:44.200 the presence of mind to pull out our iPhone and tape. 0:07:44.240 --> 0:07:47.920 What was happening to George Floyd is the reason we 0:07:47.960 --> 0:07:52.880 are here today. UH. If but for what she did, 0:07:53.800 --> 0:07:56.200 this would have been subject to what so many of 0:07:56.200 --> 0:08:01.280 these police UH incidents UH involved in. That is UH 0:08:01.400 --> 0:08:07.160 fictitious stories, misrepresentations, and lying about what has happened. We 0:08:07.280 --> 0:08:11.720 see it in the Ronald Green case in Louisiana, where 0:08:11.760 --> 0:08:16.840 the officers said that Ronald Green died from a quote 0:08:16.840 --> 0:08:20.880 automobile accident, Yet when the tape comes out, it's clear 0:08:20.920 --> 0:08:24.440 that they beat him to death for no reason. So 0:08:24.480 --> 0:08:27.240 I want everyone to remember that it was the wake 0:08:27.600 --> 0:08:32.199 of the presence of mind, and that we need people 0:08:32.320 --> 0:08:36.000 and citizens to have the presence of mind to capture 0:08:36.040 --> 0:08:40.280 incidents of injustice. Having said that, I think that the 0:08:40.400 --> 0:08:44.880 George Floyd moment is a moment that accelerated this new 0:08:44.920 --> 0:08:50.319 movement for social justice, for black lives, mattering, for civil 0:08:50.440 --> 0:08:53.040 rights and economic opportunity in this country in a very 0:08:53.040 --> 0:08:56.400 special way. We're at the beginning of the beginning of 0:08:56.400 --> 0:08:59.080 of of a movement, and it is my my hope 0:08:59.640 --> 0:09:04.280 and it's my prayer that this moment of injustice has 0:09:04.320 --> 0:09:08.280 spurred a movement that will last until the work of 0:09:08.320 --> 0:09:11.240 the movement is done because of the way in which 0:09:11.320 --> 0:09:15.120 this movement affected people. The George Ford incident captured the 0:09:15.160 --> 0:09:19.320 imagination because of the outrage of people not only here 0:09:19.320 --> 0:09:23.000 in the United States from all walks of life and backgrounds, 0:09:23.040 --> 0:09:26.080 but also from people all over the world. Having said 0:09:26.120 --> 0:09:30.520 that the test is going to be whether commitments and 0:09:30.520 --> 0:09:33.480 whether this movement, this protest movement, is going to turn 0:09:33.520 --> 0:09:37.480 into meaningful action. One thing that is so critical is 0:09:37.520 --> 0:09:40.880 the passage of the George Ford Justice and Policing Act, 0:09:41.480 --> 0:09:45.200 which right now is the subject subject of sensitive negotiations. 0:09:45.240 --> 0:09:50.280 But those negotiations are simply because there's were councilors in 0:09:50.320 --> 0:09:53.960 the United States Senate by some to pass a meaningful, 0:09:54.040 --> 0:09:58.200 substantial police reimagination and reform bill, which is what the 0:09:58.240 --> 0:10:02.600 George Floyd Bill is. Mark, are you confident the George 0:10:02.640 --> 0:10:06.559 Floyd Justice and Policing Act will be passed by Congress. 0:10:07.800 --> 0:10:11.760 I'm I'm going to remain optimistic, but I'm realistic. I 0:10:11.880 --> 0:10:15.199 understand the nature of the opposition. And then what is 0:10:15.240 --> 0:10:19.200 the nature of the opposition. You have certain elements on 0:10:19.240 --> 0:10:23.400 the Republican side, certain elements who do not want to 0:10:23.480 --> 0:10:26.400 look at the bill on its merit, who simply want 0:10:26.440 --> 0:10:29.400 to see it as just another battle in the partisan 0:10:29.440 --> 0:10:32.560 wars that were involved in would suggest, well, we can't 0:10:32.559 --> 0:10:36.400 give Joe Biden the Democrats of victory. Notwithstanding the fact 0:10:36.400 --> 0:10:40.640 that the George Floyd Bill and it's enumerated provisions, whether 0:10:40.640 --> 0:10:43.839 it's banning show calls, whether it's giving people access to 0:10:43.880 --> 0:10:48.200 the courts in a meaningful way by dialing back qualified immunity, 0:10:48.200 --> 0:10:51.240 whether it's creating a stronger if you will excess, if 0:10:51.280 --> 0:10:55.760 you supporce criminal statute, and and I could continue to 0:10:55.840 --> 0:11:00.320 talk about provisions. Those provisions are supported by the American people. 0:11:00.559 --> 0:11:05.000 Poll after poll demonstrates that. And notwithstanding that this bill, 0:11:05.120 --> 0:11:08.520 now passed by the Congress of the United States, the 0:11:08.559 --> 0:11:12.480 House of Representatives twice, this bill, now with the full 0:11:12.520 --> 0:11:15.400 support of the President and the Vice President, is still 0:11:15.440 --> 0:11:20.280 subject to difficult negotiations because of this antiquated old school 0:11:20.360 --> 0:11:23.800 rule called the Senate filibuster. Are you disappointed in them 0:11:23.840 --> 0:11:26.760 for not taking a firmer stance. There's a lot of 0:11:27.200 --> 0:11:29.760 I feel like doctrines put out a lot of words said, 0:11:29.800 --> 0:11:33.040 But do you feel like the corporate community has really 0:11:33.280 --> 0:11:37.040 stood up uh and really come out like they should have? 0:11:37.640 --> 0:11:41.440 UM After George Floyd. So the corporate community is not 0:11:41.520 --> 0:11:45.679 a monolith. It's not a unified group. Uh. There are 0:11:45.720 --> 0:11:51.359 many who UH spoke out forcefully, who have made meaningful 0:11:51.400 --> 0:11:56.079 and substantial commitments. There are some which put out perfunctory statements, 0:11:56.160 --> 0:11:59.320 and there's some that have done nothing. I believe that 0:11:59.400 --> 0:12:03.520 those that have, and I would point to, uh the 0:12:03.600 --> 0:12:07.160 actions of the Business Roundtable as being you know, fairly 0:12:07.240 --> 0:12:11.400 significant to the extent that these commitments are lived up 0:12:11.440 --> 0:12:14.480 to and follow through on. It's gonna take three to 0:12:14.559 --> 0:12:19.120 five years to make those kinds of determinations. But let's 0:12:19.200 --> 0:12:21.920 look at the corporate community and not look at it 0:12:21.960 --> 0:12:24.080 as a monolitht because I don't think it is a 0:12:24.080 --> 0:12:27.520 monolist and I think there's a great deal of conviction 0:12:28.080 --> 0:12:33.560 and sincerity among many. But the question is always whether 0:12:33.640 --> 0:12:37.840 it's a moment of response, whether it's a complete shift. 0:12:38.200 --> 0:12:40.280 I can tell you that many of the discussions I've 0:12:40.320 --> 0:12:44.080 had even in this week have been about how to 0:12:44.200 --> 0:12:48.520 increase pipelines and talent coming in from the black community, 0:12:48.559 --> 0:12:52.800 how to create a corporate atmosphere which is fairer and 0:12:52.880 --> 0:12:56.280 more equitable and free of racism. Those discussions, and I 0:12:56.760 --> 0:12:59.880 sense in many of those discussions, a degree of since 0:13:00.000 --> 0:13:04.280 therety a degree of commitment, but the pressure, the movement 0:13:04.320 --> 0:13:08.439 in the community, uh, the conversation that has taken place, 0:13:08.880 --> 0:13:12.040 the attention of people like you and the media has 0:13:12.080 --> 0:13:16.040 to continue. Don't let this die, don't let this go away. 0:13:16.080 --> 0:13:18.440 That was Mark Morial, the president of the National Urban 0:13:18.520 --> 0:13:21.720 League and Bloomberg's deputy New York Bureau Chief Shartilla Brantley, 0:13:21.840 --> 0:13:24.280 incredible with the last year has brought us and not 0:13:24.360 --> 0:13:27.280 even thinking about the pandemic, Carolin, look hard to believe 0:13:27.320 --> 0:13:29.760 it's been a year, no exactly. And what's interesting and 0:13:29.800 --> 0:13:31.520 I'm hearing this over and over and this certainly came 0:13:31.520 --> 0:13:34.080 out in our conversation. It's all about we have to 0:13:34.120 --> 0:13:36.600 now stop only talking about it, but actually doing something 0:13:36.600 --> 0:13:39.319 about need to see the data from these organizations, from 0:13:39.320 --> 0:13:42.000 these businesses, show us that you're making a difference. Exactly. 0:13:42.080 --> 0:13:44.280 Let's see the change all right still ahead on Bloomberg 0:13:44.280 --> 0:13:47.199 Business Week, businesses are rethinking the way they protect themselves 0:13:47.280 --> 0:13:51.439 from unforeseen disasters, and the insurance industry taking notice and 0:13:51.520 --> 0:13:53.680 inside look at one of the biggest claims handlers in 0:13:53.720 --> 0:13:56.439 the world and the hundreds of billions of dollars at stake. 0:13:56.800 --> 0:14:04.400 This is Bloomberg Broadcasting from the financial capital of the world, 0:14:04.520 --> 0:14:07.959 Bloomberg eleven in Rio in New York to Washington, d C. 0:14:08.160 --> 0:14:12.880 Bloomberg to Boston, Bloomberg one oh six one does San Francisco, 0:14:12.920 --> 0:14:16.400 Bloomberg nine sixty to the country Sirius XM Chado one 0:14:16.480 --> 0:14:19.400 nine team and around the globe the Bloomberg Business app 0:14:19.520 --> 0:14:25.040 and Bloomberg Radio dot Com. This is Bloomberg Business Week. Well, 0:14:25.040 --> 0:14:27.320 the health pandemic was one of those unforeseen events that 0:14:27.360 --> 0:14:29.560 impacted us in ways we couldn't have imagined him. We 0:14:29.640 --> 0:14:32.480 all know that, and yet there we were, the global 0:14:32.520 --> 0:14:35.920 economy shut down and businesses tapping their insurers as a result. 0:14:36.160 --> 0:14:39.920 Lloyd's of London is the largest market for insurance and reinsurance, 0:14:40.000 --> 0:14:42.640 with a bulk of their business in the insuring of events. 0:14:42.880 --> 0:14:45.600 Hank Watkins is president of the America's Region of Lloyd's 0:14:45.600 --> 0:14:48.120 of London and joined us to talk about the impact. 0:14:48.320 --> 0:14:50.760 You know, it's certainly been a tragedy globally in in 0:14:51.200 --> 0:14:54.680 many countries were far from seeing a conclusion to this, 0:14:54.680 --> 0:14:57.560 this pandemic. But you know, for the insurance industry, which 0:14:57.600 --> 0:15:01.080 is I think the focus of the conversation today. We've 0:15:01.120 --> 0:15:04.680 gotten through it pretty well. We were initially looking at 0:15:04.840 --> 0:15:07.640 at well over a hundred billion dollars in claims globally, 0:15:07.720 --> 0:15:11.360 as well as a similar diminution of asset values. The 0:15:11.440 --> 0:15:14.040 asset values were not hit as hard, but but there 0:15:14.120 --> 0:15:16.440 still will when this is all said and done, be 0:15:16.480 --> 0:15:18.720 more than a hundred billion dollars in claims paid by 0:15:18.720 --> 0:15:22.280 the global insurance and reinsurance industry. You think of the 0:15:22.320 --> 0:15:26.680 events that were canceled or postponed, Wimbledon, the Olympics, all 0:15:26.720 --> 0:15:29.600 around the world, just as major events there so, but 0:15:29.520 --> 0:15:31.920 but you know, not to say there was a positive 0:15:31.960 --> 0:15:34.440 outcome of this, but it forced our industry, which has 0:15:34.520 --> 0:15:38.800 historically been fairly slow to digitize, to use the benefit 0:15:38.840 --> 0:15:43.600 of electronic UH distribution, to really get on board with 0:15:43.640 --> 0:15:47.320 that across the industry flowing jump. No, no, no, forgive me. 0:15:47.400 --> 0:15:50.000 But you know what is digitization in your industry? Like, 0:15:50.000 --> 0:15:51.840 we get it when it comes to retail, right, everybody 0:15:51.840 --> 0:15:54.640 going on platforms and and shopping. I get that. So 0:15:54.680 --> 0:15:58.520 what is exactly digitization or the digital component that you 0:15:58.560 --> 0:16:01.680 guys had to ramp up as a result of the pandemic. Well, 0:16:01.840 --> 0:16:03.720 you look at it from the banking perspective. You know, 0:16:03.800 --> 0:16:07.840 it's clearly it's it's converting um data into numerical figures 0:16:07.840 --> 0:16:11.400 that you can more readily use across an entire platform. 0:16:11.480 --> 0:16:14.120 In the insurance industry, there is a certain element, the 0:16:14.160 --> 0:16:16.120 insured text side that has done a great job out 0:16:16.120 --> 0:16:19.120 over the past several years, mostly in the personalized and 0:16:19.160 --> 0:16:22.320 small commercial space, but at a large more complex risk 0:16:22.360 --> 0:16:25.320 space which Lloyd's plays in. We still, prior to the 0:16:25.360 --> 0:16:28.160 pandemic did a lot of our business face to face. 0:16:28.400 --> 0:16:30.880 There was a fair amount of paper involved between submissions 0:16:30.920 --> 0:16:34.880 and policies and all that. But as of April, we 0:16:35.000 --> 0:16:38.000 and a lot of our competitors pivoted very quickly towards 0:16:38.440 --> 0:16:42.760 electronic transactions. You know, everything was done via via email, 0:16:43.080 --> 0:16:46.320 policies issued issue digitally, etcetera. So we we've come a 0:16:46.360 --> 0:16:49.640 long way, but we might have gotten there absent a 0:16:49.680 --> 0:16:52.960 pandemic in five years. But again, like I said, one 0:16:52.960 --> 0:16:54.760 of the outcomes that has been through the industry and 0:16:54.840 --> 0:16:56.720 Lloyds is that we've moved a lot more quickly. You 0:16:56.800 --> 0:16:58.800 mentioned that when all of a sudden done, it will 0:16:58.800 --> 0:17:01.520 be about a hundred billion dollars in claims paid out. Um. 0:17:01.720 --> 0:17:04.359 You talked about the US Open, something that we typically 0:17:04.359 --> 0:17:05.960 go to, and of course that was shut down. It's 0:17:06.000 --> 0:17:09.840 a huge event, Wimbledon, so many different sporting events. What 0:17:09.920 --> 0:17:13.119 was the biggest claim component if there's a pie in 0:17:13.240 --> 0:17:16.040 terms of claims being paid out, was it sports and events? 0:17:16.080 --> 0:17:18.840 What was it the biggest component that was ultimately paid 0:17:18.840 --> 0:17:21.119 out because of the pandemic? Carol, I'll speak from from 0:17:21.200 --> 0:17:24.040 Lloyd's perspective only, since we do ensure a lot of 0:17:24.119 --> 0:17:28.960 events globally. Event cancelation was probably globally of our The 0:17:29.000 --> 0:17:32.320 impact on us, oh absolutely yes. Well has it then 0:17:32.440 --> 0:17:35.840 changed as hanked? As it change your thinking in terms 0:17:35.880 --> 0:17:38.240 of policies going forward? I mean, who would have thunk 0:17:38.359 --> 0:17:42.320 right a pandemic? It's like one of those black Swan events, 0:17:42.320 --> 0:17:45.000 it feels like. But does it change you're thinking about 0:17:45.560 --> 0:17:49.359 policy coverage or clients? Are they changing their thinking about 0:17:49.560 --> 0:17:51.520 what kind of insurance I have? God forbid we get 0:17:51.520 --> 0:17:55.639 another pandemic? There were there were actually UH products available 0:17:55.880 --> 0:17:58.320 UM for several years, So I mean Lloyd's issued a 0:17:58.320 --> 0:18:01.399 paper about ten years ago UH exploring the risk of 0:18:01.640 --> 0:18:04.520 a major pandemic, and it was issued and read by 0:18:04.520 --> 0:18:06.560 some people. I suppose. But then ultimately there were some 0:18:06.600 --> 0:18:09.800 policies put out there in the marketplace by a few 0:18:09.880 --> 0:18:13.680 major firms, and and there was no take up because people, 0:18:13.800 --> 0:18:16.679 especially you know, post financial crisis, people are struggling to 0:18:16.680 --> 0:18:19.880 get back in their feet. Businesses aren't thinking about every 0:18:19.920 --> 0:18:22.879 possible systemic issue out there. They need to cover what 0:18:22.960 --> 0:18:25.919 it takes to to run their business. So that's the 0:18:25.920 --> 0:18:28.680 way human nature is, though, right We've we spend money 0:18:28.680 --> 0:18:31.960 on ensuring our cell phones, yet we don't necessarily take 0:18:32.000 --> 0:18:34.640 care of our lives or other things as we might. So, Hank, 0:18:35.119 --> 0:18:38.320 you mentioned that you guys, you ensure a lot of events. 0:18:38.920 --> 0:18:43.040 What's your expectation for the next year or so, because 0:18:43.040 --> 0:18:46.560 the world is definitely reopening. But I am curious if 0:18:46.960 --> 0:18:49.919 a lot of events or those who put on the 0:18:50.000 --> 0:18:54.160 events are either upping their insurance coverage. I'm just curious 0:18:54.200 --> 0:18:57.639 what was the impact as a result of the pandemic, Carol. 0:18:57.680 --> 0:19:01.639 The impact has been buying a bridge significant limits of 0:19:01.640 --> 0:19:04.280 liability for a major event that could be impacted by 0:19:04.320 --> 0:19:07.920 another way or by a new pandemic, for example, is 0:19:08.040 --> 0:19:12.440 very difficult. But we have found a number of new 0:19:12.480 --> 0:19:15.920 insurance providers coming on scene. They don't have any legacy losses. 0:19:16.200 --> 0:19:18.439 They didn't pay for the losses last year, so they 0:19:18.440 --> 0:19:20.520 have an opportunity now with new capital to go out there. 0:19:20.560 --> 0:19:23.480 We underwrite the exposure and potentially provide solutions to some 0:19:23.560 --> 0:19:27.440 of these major event organizers around the world. That's Hank Watkins. 0:19:27.480 --> 0:19:30.080 He is president of the America's Region of Lloyd's of London. 0:19:30.480 --> 0:19:32.679 You know, a really insightful conversation in an area of 0:19:32.680 --> 0:19:35.120 the business world we sometimes overlook, kind of just take 0:19:35.200 --> 0:19:37.600 for granted, tim but it's a critical piece of the 0:19:37.640 --> 0:19:41.720 financial support for so many and really of our financial industry. 0:19:41.880 --> 0:19:44.720 You're listening to Bloomberg Business Week. Up next, movie theater 0:19:44.800 --> 0:19:47.640 operators are stepping up efforts to draw people back into 0:19:47.640 --> 0:19:50.399 their buildings as the pandemic eases here in the US, 0:19:50.680 --> 0:19:53.760 and recent box office returns in Asia are providing reasons 0:19:53.840 --> 0:19:56.359 for optimism. Yep, we're watching Asia for cues of what 0:19:56.440 --> 0:19:59.000 happens in the rest of the world. I'm actually a 0:19:59.080 --> 0:20:01.840 Rich Galfon on why the pandemic can't crush people's love 0:20:01.960 --> 0:20:11.920 of the silver screen experience. This is Woomberg. You're listening 0:20:11.960 --> 0:20:15.680 to Bloomberg Business Week with Carol Messer and Bloomberg Quick 0:20:15.760 --> 0:20:20.560 takes Tim Stinovik from Bloomberg Radio. The ninth installment of 0:20:20.600 --> 0:20:23.560 the widely popular, successful Fast and Furious movie franchise, It 0:20:23.720 --> 0:20:25.680 is rolling out. You might recall last week at the 0:20:25.680 --> 0:20:28.400 Bloomberg Live virtual event the Bloomberg Business Week, we caught 0:20:28.440 --> 0:20:30.880 up with Jason Lynn. He Tim is the director behind 0:20:30.920 --> 0:20:34.040 it all. Fast nine. F nine is really the first 0:20:34.040 --> 0:20:36.760 film of the final chapter, so it was actually it's 0:20:36.760 --> 0:20:39.560 actually been very liberating. It's a very different process. So 0:20:39.680 --> 0:20:41.960 ten is not necessarily the last one. It sounds like 0:20:42.000 --> 0:20:44.120 it most definitely is not the last one. I would 0:20:44.160 --> 0:20:46.639 say the last chapter. I think, you know, we have 0:20:46.760 --> 0:20:50.440 so many characters that my problem is actually real estate, 0:20:50.760 --> 0:20:52.760 you know, and so to know that, hey, you know, 0:20:53.560 --> 0:20:56.520 we have F nine, but I also now have real 0:20:56.640 --> 0:20:58.560 estate for two more movies. To be able to tell 0:20:58.600 --> 0:21:02.920 this last chapter hasn't like really again, it's very kind 0:21:02.920 --> 0:21:05.320 of for me. It's a very fresh way of of, 0:21:05.880 --> 0:21:08.720 you know, really kind of crafting what we're gonna do. 0:21:09.080 --> 0:21:11.879 It opened internationally, with most of the ticket sales happening 0:21:11.880 --> 0:21:14.800 in the biggest movie market in the world, China. Richard 0:21:14.840 --> 0:21:17.560 Gelfond is CEO of the movie theater company Imax, and 0:21:17.600 --> 0:21:20.080 had more on the reopening of the big screen. You know, 0:21:20.119 --> 0:21:23.280 it's it's been a long cold winter, as you guys 0:21:23.280 --> 0:21:25.920 are quite aware, and it's nice to have the good 0:21:25.920 --> 0:21:30.320 old fashioned Hollywood blockbuster back. And I think F nine 0:21:30.359 --> 0:21:34.119 really opened up like a Hollywood blockbuster. It did hundred 0:21:34.200 --> 0:21:38.200 sixty five million dollars globally, hundred thirty five million dollars 0:21:38.240 --> 0:21:42.800 in China. IMAX's market share was very healthy. It's our 0:21:42.800 --> 0:21:47.639 biggest opening um and you know since before the pandemic started, 0:21:47.720 --> 0:21:49.880 so feeling a lot better than it was a few 0:21:49.880 --> 0:21:51.960 weeks ago. Carol, Well, that's a big change. Yeah, how 0:21:52.000 --> 0:21:53.560 I mean, how were you feeling a few weeks ago? 0:21:53.600 --> 0:21:57.040 And what changed that? Was it? This opening weekend? Especially globally, 0:21:57.960 --> 0:22:00.960 you know, probably be more us than I should be. 0:22:01.280 --> 0:22:04.520 This has been one of the most frustrating periods of 0:22:04.520 --> 0:22:07.959 the pandemic for me, and that's because I think the 0:22:08.000 --> 0:22:10.880 world is really ready to go back to the movies, 0:22:11.320 --> 0:22:13.479 and I think there are a lot of movies that 0:22:13.520 --> 0:22:17.560 are ready to go, but I think not every territory 0:22:17.600 --> 0:22:20.439 in the world is ready at the same time and 0:22:20.520 --> 0:22:25.320 the same pace, and the traditional distribution model would say, 0:22:25.320 --> 0:22:28.679 you open up globally at one time all over the world, 0:22:29.160 --> 0:22:32.040 but you know, guess what, this just isn't the time 0:22:32.040 --> 0:22:35.840 without works, so that this time is called for different 0:22:36.040 --> 0:22:40.680 kinds of models. And as a result, um, the studios 0:22:40.720 --> 0:22:45.440 who mostly wire located in Hollywood, we're looking out their 0:22:45.520 --> 0:22:49.680