1 00:00:04,760 --> 00:00:08,039 Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm Pim Fox. 2 00:00:08,119 --> 00:00:11,200 Speaker 1: Along with my co host Lisa Abramowitz. Each day we 3 00:00:11,280 --> 00:00:14,480 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:14,520 --> 00:00:16,880 Speaker 1: you and your money, whether at the grocery store or 5 00:00:16,920 --> 00:00:20,680 Speaker 1: the trading floor. Find the Bloomberg P L Podcast on iTunes, 6 00:00:20,840 --> 00:00:29,200 Speaker 1: SoundCloud and at Bloomberg dot com. Here to tell us 7 00:00:29,240 --> 00:00:33,519 Speaker 1: about Boston is Marty Walsh. He is the Mayor of Boston. 8 00:00:34,200 --> 00:00:36,600 Speaker 1: Mayor Walsh, thanks very much for being with us. Well, 9 00:00:36,600 --> 00:00:38,400 Speaker 1: thank you very much for having me. And I want 10 00:00:38,440 --> 00:00:43,040 Speaker 1: to begin by thanking Bilberg and Advanced for that for 11 00:00:43,040 --> 00:00:46,199 Speaker 1: for their involvement in the Pop celebration. And uh it's 12 00:00:46,240 --> 00:00:49,160 Speaker 1: an exciting celebration watched all over the country and people 13 00:00:49,960 --> 00:00:53,479 Speaker 1: love the Fourth of July celebrations hearing Boston in our city. UH, 14 00:00:53,560 --> 00:00:56,880 Speaker 1: and we have two great partners now knowing that these 15 00:00:56,920 --> 00:00:59,240 Speaker 1: Pops celebrations will go on for the next several years 16 00:00:59,240 --> 00:01:02,360 Speaker 1: and beyond that. Yeah, you know you've had a busy 17 00:01:02,440 --> 00:01:04,720 Speaker 1: day to day, Mayor. We also saw that today you 18 00:01:04,760 --> 00:01:09,720 Speaker 1: announced a major infrastructure plan to improve the way people 19 00:01:09,760 --> 00:01:15,280 Speaker 1: get around here, including UH significant investment in UH commercial 20 00:01:15,959 --> 00:01:18,720 Speaker 1: public transportation, can you tell us a little bit about that. Yeah, 21 00:01:18,760 --> 00:01:20,240 Speaker 1: I'm actually all my way to do it right now, 22 00:01:20,319 --> 00:01:22,760 Speaker 1: so they're always the press is waiting for me. But uh, yeah, 23 00:01:22,800 --> 00:01:28,600 Speaker 1: we're gonna be launching Vision UM Imagine Boston. Uh. It's 24 00:01:28,640 --> 00:01:32,640 Speaker 1: a visioning plan for transportation the city of Boston. It 25 00:01:32,720 --> 00:01:36,520 Speaker 1: really basically technical name is god Boston twenty thirty Vision 26 00:01:36,520 --> 00:01:39,000 Speaker 1: and the Action Plan. It really is about talking about 27 00:01:39,000 --> 00:01:42,440 Speaker 1: long term making our streets safer, making travel more reliable 28 00:01:42,480 --> 00:01:46,200 Speaker 1: and predictable, investing in long term inequalities to make it 29 00:01:46,240 --> 00:01:48,000 Speaker 1: easier for people to get to work, a school, and 30 00:01:48,040 --> 00:01:51,400 Speaker 1: get around the city. Uh. Making a city more resilient 31 00:01:51,480 --> 00:01:53,960 Speaker 1: to the effects of climate change. Uh. And it's a 32 00:01:54,040 --> 00:01:56,400 Speaker 1: roadmap for our transportation goals. And when you think about 33 00:01:56,400 --> 00:01:59,160 Speaker 1: our city, in the last three years, population has grown 34 00:01:59,160 --> 00:02:01,800 Speaker 1: by over thirty dogs and people. We have created uh 35 00:02:01,880 --> 00:02:04,720 Speaker 1: sixty We've we've created sixty new jobs just in three 36 00:02:04,800 --> 00:02:07,920 Speaker 1: year periods. And if we continue this growth, um, you know, 37 00:02:07,960 --> 00:02:10,680 Speaker 1: we're going to continue traffic and continue people coming into 38 00:02:10,680 --> 00:02:14,280 Speaker 1: the city. And it really is a player roadmap and 39 00:02:14,440 --> 00:02:17,400 Speaker 1: working with the community through a community public engaging process. 40 00:02:17,960 --> 00:02:20,440 Speaker 1: And it's the first city wide plan in a long time, 41 00:02:20,520 --> 00:02:22,680 Speaker 1: over fifty years. It was part of our match in Boston, 42 00:02:23,840 --> 00:02:29,000 Speaker 1: and we've had over Letia's residents and submittedas So this 43 00:02:29,040 --> 00:02:33,120 Speaker 1: plan is based off of input we received from the public. 44 00:02:34,840 --> 00:02:37,720 Speaker 1: Mayor Walsh, I'm going to conflate a couple of words, 45 00:02:37,880 --> 00:02:45,280 Speaker 1: and I want your expert experience response immigration, tourism, sanctuary cities, 46 00:02:45,720 --> 00:02:49,840 Speaker 1: and federal aid. So i'll tie it in together. Um, 47 00:02:49,880 --> 00:02:53,640 Speaker 1: you know the actions of the President over the last 48 00:02:53,720 --> 00:02:56,200 Speaker 1: month or so. UM. There's a lot of different ways 49 00:02:56,200 --> 00:02:58,240 Speaker 1: of looking at it. We can look at it as 50 00:02:58,280 --> 00:03:01,800 Speaker 1: a human human aspect of it, with people being fearful 51 00:03:01,919 --> 00:03:05,560 Speaker 1: in cities across America. We can look at it as 52 00:03:05,600 --> 00:03:08,000 Speaker 1: an economic issue. But I'll just say this one. One 53 00:03:08,080 --> 00:03:12,760 Speaker 1: wants that Boston is uh the recipient of a billion 54 00:03:12,800 --> 00:03:17,320 Speaker 1: dollar international tourism industry every single year. UM. And there's 55 00:03:17,400 --> 00:03:22,280 Speaker 1: no way that the actions of even though they're geared 56 00:03:22,320 --> 00:03:25,480 Speaker 1: towards six different countries, that other people aren't looking at 57 00:03:25,480 --> 00:03:29,160 Speaker 1: the potential of not coming to United States for holidays. 58 00:03:29,200 --> 00:03:32,959 Speaker 1: That's a problem when you think of investment and sorry, 59 00:03:33,000 --> 00:03:35,640 Speaker 1: in high tech, we have high tech companies that can't 60 00:03:35,640 --> 00:03:39,240 Speaker 1: get employees employees here. UH, they're looking at and have 61 00:03:39,320 --> 00:03:42,600 Speaker 1: discussed looking at other opportunities like Canada and keeping their 62 00:03:42,640 --> 00:03:46,160 Speaker 1: offices in Boston. But the workforce in Canada places like that, 63 00:03:46,160 --> 00:03:49,520 Speaker 1: that's all these problems in our hospitals. We have doctors 64 00:03:49,520 --> 00:03:53,880 Speaker 1: and researchers and scientists and medical staff that potentially can't 65 00:03:53,880 --> 00:03:56,160 Speaker 1: get here. It all. You know, there's two ways, the 66 00:03:56,360 --> 00:03:58,720 Speaker 1: fair aspect then and the human being aspect of it, 67 00:03:58,920 --> 00:04:02,040 Speaker 1: and then the economic impact after it. Well, Mayor Walsh, 68 00:04:02,120 --> 00:04:05,160 Speaker 1: how concerned are you that the federal government will restrict 69 00:04:05,280 --> 00:04:08,200 Speaker 1: financing to the City of Boston as a result to 70 00:04:08,880 --> 00:04:11,800 Speaker 1: your pledge to remain a sanctuary city despite some of 71 00:04:11,880 --> 00:04:16,159 Speaker 1: the rhetoric that we've heard from President Trump. I mean again, 72 00:04:16,400 --> 00:04:19,640 Speaker 1: I think we're protected. Most of our dollars are protected 73 00:04:19,640 --> 00:04:22,160 Speaker 1: by the Constitution, so that they can't refuse to give 74 00:04:22,240 --> 00:04:25,719 Speaker 1: us money just because of our position on immigration. But 75 00:04:25,720 --> 00:04:27,880 Speaker 1: but the fact that those conversations have happened. When you 76 00:04:27,920 --> 00:04:30,640 Speaker 1: look at Boston, when you look at New York, when 77 00:04:30,640 --> 00:04:33,200 Speaker 1: you look at l A, Chicago, we go up and 78 00:04:33,240 --> 00:04:35,119 Speaker 1: down the East Coast, up and down the West coast, 79 00:04:35,120 --> 00:04:38,000 Speaker 1: across the country. Many of many of our major cities 80 00:04:38,040 --> 00:04:40,680 Speaker 1: that are in the same situation as Boston are the 81 00:04:40,720 --> 00:04:44,400 Speaker 1: economic drivers of the economy. Um. And if the federal 82 00:04:44,400 --> 00:04:47,359 Speaker 1: government was going to take irresponsible move by by counting 83 00:04:47,360 --> 00:04:51,440 Speaker 1: back on federal money and affecting these these job hubs, 84 00:04:51,680 --> 00:04:56,120 Speaker 1: job generators, it would do significant damage to our economy. 85 00:04:56,240 --> 00:05:00,000 Speaker 1: So again, you know, we get about five humillion dollars 86 00:05:00,000 --> 00:05:02,680 Speaker 1: a year and try to aid whether it's through housing 87 00:05:02,839 --> 00:05:08,840 Speaker 1: vouchers or housing programs, or education programs, of public safety programs. Um. 88 00:05:09,080 --> 00:05:11,200 Speaker 1: That money that that that there that they that comes 89 00:05:11,200 --> 00:05:13,800 Speaker 1: into our city is generated in our city by our 90 00:05:13,880 --> 00:05:17,080 Speaker 1: tax base. So I think it would be Uh, it's 91 00:05:17,120 --> 00:05:20,040 Speaker 1: not a well thought out threat, if you will, by 92 00:05:20,120 --> 00:05:26,280 Speaker 1: by just threatening cities and towns around America. May welsh, 93 00:05:26,279 --> 00:05:30,280 Speaker 1: I beg your pardon. You are the progeny, you're the 94 00:05:30,480 --> 00:05:35,080 Speaker 1: son of immigrants from Dorchester. Uh. Speak a little bit 95 00:05:35,120 --> 00:05:38,120 Speaker 1: about what you're doing that others may learn from having 96 00:05:38,160 --> 00:05:42,360 Speaker 1: to do with homelessness, housing and education, well, homelessness, that 97 00:05:42,480 --> 00:05:44,920 Speaker 1: we're doing a lot in homeless and homeless area with 98 00:05:45,120 --> 00:05:48,080 Speaker 1: housing Boston a hundred thousands, sorry for one thousand and 99 00:05:48,080 --> 00:05:51,800 Speaker 1: fifty six chronically homeless folks, eight hundred natives of veterans. 100 00:05:52,200 --> 00:05:54,960 Speaker 1: We we we ended chronic veterans homelessness in the City 101 00:05:54,960 --> 00:05:57,560 Speaker 1: of Boston in two thousand and fifteen, and we have 102 00:05:57,600 --> 00:05:59,359 Speaker 1: a system in place now if you're if you're a 103 00:05:59,360 --> 00:06:02,960 Speaker 1: homeless that and you want to get pet housing. Uh, 104 00:06:03,000 --> 00:06:04,920 Speaker 1: you know, wait is about six months. We have a 105 00:06:04,920 --> 00:06:08,400 Speaker 1: program in place now working with providers, you know, moving 106 00:06:08,440 --> 00:06:12,360 Speaker 1: forward homelessness and housing in veterans homeless program was still 107 00:06:12,400 --> 00:06:15,560 Speaker 1: working in chronic restromans, chronic homelessness if you go chronic 108 00:06:15,560 --> 00:06:19,200 Speaker 1: homelessness in Boston by the two thousand and eighteen at 109 00:06:19,240 --> 00:06:21,240 Speaker 1: the end of next year. Uh, and well, we're well 110 00:06:21,279 --> 00:06:23,280 Speaker 1: on our way of doing that, and we're working on 111 00:06:23,320 --> 00:06:26,279 Speaker 1: a better system of care so that we have opportunities 112 00:06:26,320 --> 00:06:28,560 Speaker 1: to get people when when they come into when they 113 00:06:28,560 --> 00:06:30,600 Speaker 1: get down in the lock and they become homeless. We're 114 00:06:30,640 --> 00:06:32,520 Speaker 1: working on systems to get them back on their feet. 115 00:06:32,600 --> 00:06:35,159 Speaker 1: And jobs. Part of that shot job training. Part of 116 00:06:35,200 --> 00:06:38,760 Speaker 1: that through opportunities which are working through through job training. Uh. 117 00:06:38,800 --> 00:06:41,040 Speaker 1: So that that all ties in. It's not just almost 118 00:06:41,400 --> 00:06:45,400 Speaker 1: person that's that's looking for employment. It's also people that 119 00:06:45,440 --> 00:06:48,239 Speaker 1: are not homeless that are looking for employment. Retraining people 120 00:06:48,279 --> 00:06:50,440 Speaker 1: and not just a training program that you know, you 121 00:06:50,480 --> 00:06:51,840 Speaker 1: go through a program for six weeks and all of 122 00:06:51,839 --> 00:06:53,159 Speaker 1: a sudden you here to certificate at the end of it. 123 00:06:53,400 --> 00:06:55,000 Speaker 1: We will we will trying to strengthen some of these 124 00:06:55,000 --> 00:06:57,200 Speaker 1: programs that at the end of the training program that 125 00:06:57,240 --> 00:06:59,480 Speaker 1: they actually have a job, and we're working with employers 126 00:06:59,480 --> 00:07:01,200 Speaker 1: to do that. Uh. The other reasure I think you 127 00:07:01,240 --> 00:07:03,960 Speaker 1: brought up with education. Um, you know, we launched a 128 00:07:04,120 --> 00:07:08,120 Speaker 1: program here called bill PPS to reconstruct our schools and 129 00:07:08,160 --> 00:07:10,320 Speaker 1: the city of Boston. We're playing on doing a billion 130 00:07:10,360 --> 00:07:12,840 Speaker 1: dollar investment over the next ten years. We're probably gonna 131 00:07:12,840 --> 00:07:15,200 Speaker 1: needed probably two decades of an investment in our schools 132 00:07:15,200 --> 00:07:18,280 Speaker 1: to bring them all up to century standards. We have 133 00:07:18,320 --> 00:07:20,240 Speaker 1: a lot of school buildings that were built. We able 134 00:07:20,240 --> 00:07:22,800 Speaker 1: to gout a hundred school building that will built around 135 00:07:22,880 --> 00:07:25,560 Speaker 1: the World War two era. Um. That's a lot of 136 00:07:25,600 --> 00:07:28,120 Speaker 1: schools with old infrastructure, and we really need to bring 137 00:07:28,160 --> 00:07:31,600 Speaker 1: the infrastructure up the twenty one century standards. Mayor Welsh, 138 00:07:31,760 --> 00:07:34,600 Speaker 1: thank you so much for joining us and congratulations on 139 00:07:34,640 --> 00:07:38,080 Speaker 1: announcing a big infrastructure plan. As well as the Boston 140 00:07:38,200 --> 00:07:41,640 Speaker 1: Pops celebration of July four here, which will be sponsored 141 00:07:41,640 --> 00:07:45,160 Speaker 1: by Bloomberg and Eaton Vance. Marty Walsh is the mayor 142 00:07:45,280 --> 00:07:48,400 Speaker 1: of Boston, and we are so glad that he could 143 00:07:48,440 --> 00:08:04,080 Speaker 1: be joining US Republicans unveiling a bill to repeal and 144 00:08:04,360 --> 00:08:08,360 Speaker 1: replace Obamacare. Here to tell us more is Brian Ry. 145 00:08:08,520 --> 00:08:13,200 Speaker 1: He's our senior healthcare policy analyst for Bloomberg Intelligence. We 146 00:08:13,280 --> 00:08:16,480 Speaker 1: are broadcasting from Symphony Hall in Boston, home to the 147 00:08:16,520 --> 00:08:19,040 Speaker 1: Boston Symphony Orchestra at the Boston Pops. We are here 148 00:08:19,080 --> 00:08:22,200 Speaker 1: to celebrate and announce our partnership with the Boston Pops 149 00:08:22,280 --> 00:08:26,320 Speaker 1: July fourth celebration, which will be carried live on Bloomberg 150 00:08:26,600 --> 00:08:29,880 Speaker 1: Radio as well as Bloomberg Television, and it will be 151 00:08:30,040 --> 00:08:34,959 Speaker 1: live streaming on Bloomberg dot com. Well, let's talk about healthcare, 152 00:08:35,160 --> 00:08:38,839 Speaker 1: and Brian give us an update on this Republican plan 153 00:08:39,040 --> 00:08:42,160 Speaker 1: if you can, and maybe you could also tie in 154 00:08:42,600 --> 00:08:47,920 Speaker 1: some tweets from President Trump having to do with drug prices. Sure. Well, 155 00:08:47,960 --> 00:08:49,680 Speaker 1: you know, first of all, thanks for having me. I 156 00:08:49,679 --> 00:08:52,360 Speaker 1: think a couple of things. You know, Republicans are finding 157 00:08:52,400 --> 00:08:55,319 Speaker 1: out how hard it is uh to actually implement healthcare 158 00:08:55,320 --> 00:08:57,480 Speaker 1: policy or make major changes in the US. You know, 159 00:08:57,520 --> 00:09:01,760 Speaker 1: the Republicans House leadership released a bill last night trying 160 00:09:01,800 --> 00:09:05,280 Speaker 1: to as they term, repeal and replace Obamacare. I think 161 00:09:05,280 --> 00:09:07,840 Speaker 1: a better term is maybe more repair some aspects of 162 00:09:07,840 --> 00:09:10,280 Speaker 1: the law. It doesn't repeal the law outright. It does 163 00:09:10,400 --> 00:09:12,880 Speaker 1: make some major It would make some major changes, particularly 164 00:09:12,880 --> 00:09:16,240 Speaker 1: to to Medicaid, convert that into a per capita cap 165 00:09:16,240 --> 00:09:19,480 Speaker 1: program that would reduce spending on the medicaid program in 166 00:09:19,559 --> 00:09:22,679 Speaker 1: the long term. UH. It eliminates all the taxes imposed 167 00:09:22,720 --> 00:09:25,840 Speaker 1: by UH the Affordable Charact on the various industries, on 168 00:09:25,920 --> 00:09:29,520 Speaker 1: medical devices, on health insurers, on drug makers, um. And 169 00:09:29,520 --> 00:09:33,240 Speaker 1: it replaces the current UH system of providing financial support 170 00:09:33,280 --> 00:09:37,040 Speaker 1: to individuals with an age based range of tax credit. 171 00:09:37,120 --> 00:09:39,559 Speaker 1: So it sounds a lot like that. And and and ho, 172 00:09:39,720 --> 00:09:43,839 Speaker 1: Senator Ran Paul has already called it Obamacare light with that, so, UM, 173 00:09:43,920 --> 00:09:46,440 Speaker 1: you know, Republicans they're sort of UH and they box 174 00:09:46,480 --> 00:09:49,480 Speaker 1: themselves in. You know, they're going to get criticism from Democrats, 175 00:09:49,880 --> 00:09:52,920 Speaker 1: UH for likely you know, a score that's gonna say 176 00:09:52,960 --> 00:09:54,960 Speaker 1: this is going to cover fewer people. They're gonna get 177 00:09:55,000 --> 00:09:58,080 Speaker 1: criticism from their conservative colleagues who are saying, wait a minute, 178 00:09:58,120 --> 00:10:00,960 Speaker 1: we campaign on a promise to repeal this entirely, and 179 00:10:01,000 --> 00:10:03,720 Speaker 1: now we're just, in their opinion, making tweaks around the edges. 180 00:10:03,800 --> 00:10:06,760 Speaker 1: So I think this is unlikely to be what actually 181 00:10:06,760 --> 00:10:09,559 Speaker 1: gets enacted, if anything does, um, but at least to 182 00:10:09,600 --> 00:10:13,520 Speaker 1: give some some insight into what Republican leaders are thinking. Well, Brian, 183 00:10:13,679 --> 00:10:17,240 Speaker 1: what ken you tell us who put this proposal forward 184 00:10:17,400 --> 00:10:22,000 Speaker 1: and what the political support looks like for passing it. 185 00:10:22,559 --> 00:10:25,160 Speaker 1: So there their support from most of the main leaders 186 00:10:25,160 --> 00:10:28,480 Speaker 1: in Congress. I think both the Speaker Paul Ryan Senate 187 00:10:28,559 --> 00:10:31,360 Speaker 1: Majority Leader Mitch McConnell supported. This is coming out of 188 00:10:31,400 --> 00:10:34,079 Speaker 1: two committees in the House right now, the Ways and 189 00:10:34,120 --> 00:10:37,240 Speaker 1: Means Committee Chairman Kevin Brady UH and the Energy and 190 00:10:37,280 --> 00:10:41,880 Speaker 1: Commerce Committee Chairman UH involved in They all supported, So 191 00:10:42,080 --> 00:10:43,920 Speaker 1: they've they've got that. It's the sort of the rank 192 00:10:43,960 --> 00:10:46,520 Speaker 1: and file who are who are concerned about some of 193 00:10:46,559 --> 00:10:48,520 Speaker 1: the provisions. And again, this was always going to be 194 00:10:48,559 --> 00:10:52,640 Speaker 1: a case they all they being Republicans, absolutely want to 195 00:10:52,679 --> 00:10:55,000 Speaker 1: repeal the law, but how you replace it and what 196 00:10:55,080 --> 00:11:00,720 Speaker 1: that process looks like has been problematic. Senator and Paul, 197 00:11:01,160 --> 00:11:05,920 Speaker 1: I'm gonna let your run with that one. Yeah, you know, 198 00:11:06,000 --> 00:11:08,400 Speaker 1: Senator Paul, I think because I'm not afraid to speak 199 00:11:08,400 --> 00:11:09,880 Speaker 1: his mind. I think last week he was on a 200 00:11:10,400 --> 00:11:12,920 Speaker 1: on a treasure hunt through the Capitol trying to find 201 00:11:12,960 --> 00:11:17,000 Speaker 1: this this bill that was being developed, underline what happened, 202 00:11:17,000 --> 00:11:20,600 Speaker 1: because explain what happened and and and what the different 203 00:11:20,679 --> 00:11:23,480 Speaker 1: versions perhaps of that story are. Well, you know, so 204 00:11:23,840 --> 00:11:26,160 Speaker 1: you had a situation where, you know, the staffs of 205 00:11:26,200 --> 00:11:29,120 Speaker 1: these two committees of Energy, Commerce and Ways and Means committees, 206 00:11:29,240 --> 00:11:31,640 Speaker 1: as they want to do, we're developing this, you know, 207 00:11:32,120 --> 00:11:35,160 Speaker 1: behind closed doors. And Senator Paul I didn't like that. 208 00:11:35,240 --> 00:11:37,240 Speaker 1: In again, I think Senator Paul doesn't really like the 209 00:11:37,280 --> 00:11:39,920 Speaker 1: approach that that the House is taking with this anyway. 210 00:11:39,960 --> 00:11:41,800 Speaker 1: So I think he saw this as an opportunity to 211 00:11:41,800 --> 00:11:43,880 Speaker 1: ship some light on it and and maybe drum up 212 00:11:43,920 --> 00:11:46,720 Speaker 1: some support within the conservative ranks uh and uh. And 213 00:11:46,720 --> 00:11:48,440 Speaker 1: he did a very good job of that. And I 214 00:11:48,480 --> 00:11:51,600 Speaker 1: think Chairman Walden uh and somewhat tongue in cheek when 215 00:11:51,640 --> 00:11:53,600 Speaker 1: they did release it last night, had had a copy 216 00:11:53,679 --> 00:11:57,760 Speaker 1: hand delivered the Senator Paul's office. Well, I want to 217 00:11:57,800 --> 00:12:01,800 Speaker 1: talk Brian about deadlines, because you can't just uh, sort 218 00:12:01,800 --> 00:12:04,240 Speaker 1: of float something out there and hang out with it 219 00:12:04,320 --> 00:12:06,400 Speaker 1: for a year. I mean, they have to put something 220 00:12:06,679 --> 00:12:09,079 Speaker 1: through in short order in order to keep some of 221 00:12:09,120 --> 00:12:12,480 Speaker 1: the benefits that are currently provided ongoing and keep the 222 00:12:12,520 --> 00:12:16,680 Speaker 1: health insurers brought into the program. So what is the 223 00:12:16,720 --> 00:12:20,080 Speaker 1: timeframe like and what is the minimum that Congress has 224 00:12:20,120 --> 00:12:24,440 Speaker 1: to do to UH prevent a complete dissolve of the 225 00:12:24,559 --> 00:12:28,120 Speaker 1: current benefits offered sure and and that's a great question. 226 00:12:28,120 --> 00:12:30,800 Speaker 1: So I think the process will begin in earnest tomorrow. 227 00:12:30,960 --> 00:12:34,160 Speaker 1: On Wednesday, they will have marked up hearings in both 228 00:12:34,200 --> 00:12:36,040 Speaker 1: these two committees, the Ways and Means and Energy and 229 00:12:36,080 --> 00:12:38,760 Speaker 1: Commerce Committee hearings. UH. The goal has been to try 230 00:12:38,760 --> 00:12:41,560 Speaker 1: and get something passed within the next month's ideally, I 231 00:12:41,559 --> 00:12:43,880 Speaker 1: think Speaker Ryan has talked about getting something to President 232 00:12:43,880 --> 00:12:46,920 Speaker 1: Trump's desk by by Eastern sort of mid April. I 233 00:12:47,000 --> 00:12:50,800 Speaker 1: think that's unlikely UM to happen. But by the same token, 234 00:12:50,880 --> 00:12:52,680 Speaker 1: you know, I don't want to get too far afield 235 00:12:52,679 --> 00:12:55,400 Speaker 1: and criticizing, you know, the likelihood of something like this, 236 00:12:55,840 --> 00:12:58,280 Speaker 1: UM you know, happening. They're going through what's known as 237 00:12:58,280 --> 00:13:00,880 Speaker 1: a budget reconciliation method, so that kind of limits what 238 00:13:01,000 --> 00:13:03,120 Speaker 1: they're able to include. And the reason they're doing this 239 00:13:03,200 --> 00:13:07,040 Speaker 1: is they're able to get something passed with only votes 240 00:13:07,080 --> 00:13:10,000 Speaker 1: in the Senate, rather than overcoming a Democratic sylabuster and 241 00:13:10,040 --> 00:13:12,840 Speaker 1: needing sixty votes. UM. You know from that standpoint, So 242 00:13:13,120 --> 00:13:17,559 Speaker 1: there's a pretty fine you know, finally defined the level 243 00:13:17,600 --> 00:13:19,760 Speaker 1: of things that they can include in this, and they've 244 00:13:19,800 --> 00:13:22,320 Speaker 1: included most of those, uh, you know, with this, the 245 00:13:22,360 --> 00:13:25,559 Speaker 1: taxes and the mandate penalties and those things. But more 246 00:13:25,600 --> 00:13:26,760 Speaker 1: than that, it's going to be hard to do with 247 00:13:26,800 --> 00:13:28,400 Speaker 1: that unless they want to go back to the drawing 248 00:13:28,440 --> 00:13:30,560 Speaker 1: board and start over. But to your point, you know, 249 00:13:30,600 --> 00:13:33,040 Speaker 1: there's other things that they want to do in next year, 250 00:13:33,080 --> 00:13:34,920 Speaker 1: and tax reform and those things, and it's hard for 251 00:13:34,920 --> 00:13:37,520 Speaker 1: them to get started on those things on those topics 252 00:13:37,720 --> 00:13:41,959 Speaker 1: until they take care of healthcare first. Thank you so much, Brian, right, 253 00:13:42,080 --> 00:13:45,240 Speaker 1: We really appreciate your insights. Brian Ryes, senior healthcare policy 254 00:13:45,280 --> 00:13:48,600 Speaker 1: analyst for Bloomberg Intelligence. They're speaking to us about the 255 00:13:48,640 --> 00:13:53,600 Speaker 1: GOP proposal to repeal and replace Obamacare. We're also getting 256 00:13:53,679 --> 00:13:57,400 Speaker 1: news that part of the proposal with lower taxes and 257 00:13:57,440 --> 00:14:03,040 Speaker 1: eliminate rules for certain care industry h companies, but they're 258 00:14:03,080 --> 00:14:06,640 Speaker 1: also will be less money and less help for people 259 00:14:07,080 --> 00:14:10,200 Speaker 1: uh to pay for insurance and pay for hospital visits. 260 00:14:10,200 --> 00:14:13,920 Speaker 1: So uh, some of the big insurance providers and hospital 261 00:14:13,960 --> 00:14:16,320 Speaker 1: systems are now parsing through the details and figuring out 262 00:14:16,600 --> 00:14:38,359 Speaker 1: what this means for them going forward. That is Beethoven 263 00:14:38,400 --> 00:14:41,840 Speaker 1: Symphony number seven, and it is a good intro for 264 00:14:41,880 --> 00:14:44,680 Speaker 1: our next guest. Keith Lockhart is here with us. He 265 00:14:44,760 --> 00:14:48,680 Speaker 1: is the conductor for the Boston Pops Symphony, and we 266 00:14:48,720 --> 00:14:53,080 Speaker 1: are here in Boston to celebrate Bloomberg and eat advances 267 00:14:53,360 --> 00:14:56,880 Speaker 1: UH support of the Bloomberg Pop Celebration of July four 268 00:14:57,560 --> 00:15:00,160 Speaker 1: coming up, Keith, I'm so glad you could join us. 269 00:15:00,480 --> 00:15:04,440 Speaker 1: Thank you for coming to us. And and you're known 270 00:15:04,560 --> 00:15:09,000 Speaker 1: for your conducting style and making music accessible to the 271 00:15:09,040 --> 00:15:13,160 Speaker 1: audience and and and making it UH palatable in a 272 00:15:13,200 --> 00:15:17,320 Speaker 1: way that sometimes it might not be. I wanted to 273 00:15:17,360 --> 00:15:21,560 Speaker 1: start by asking you whether the profession of conducting is 274 00:15:21,720 --> 00:15:27,040 Speaker 1: changing at all as a result of this era of technology. Wow, 275 00:15:27,080 --> 00:15:29,160 Speaker 1: that's an interesting question and not not what I thought 276 00:15:29,160 --> 00:15:31,320 Speaker 1: i'd start with. You know, we we we live in 277 00:15:31,360 --> 00:15:35,920 Speaker 1: a proudly of analog business in a digital age, and 278 00:15:36,200 --> 00:15:38,520 Speaker 1: so much of what we do, you know, we we 279 00:15:38,600 --> 00:15:41,360 Speaker 1: play on instruments that are two and three hundred years old. 280 00:15:41,400 --> 00:15:44,040 Speaker 1: We play music that was written hundred and fifty two 281 00:15:44,080 --> 00:15:46,800 Speaker 1: hundred years ago. But I think we are we are 282 00:15:46,840 --> 00:15:51,000 Speaker 1: slowly adopting the technologies of the twenty first century. In 283 00:15:51,120 --> 00:15:53,560 Speaker 1: terms of the digital age, I think it has more 284 00:15:53,600 --> 00:15:55,360 Speaker 1: to do not so much with the art of conducting, 285 00:15:55,400 --> 00:16:01,680 Speaker 1: which is still very personal, very kinetic. Uh, communication between people. 286 00:16:02,040 --> 00:16:08,360 Speaker 1: Conductor is basically the the intermediary between musicians on the stage, 287 00:16:08,400 --> 00:16:11,240 Speaker 1: between the musicians and the composer, between the musicians and 288 00:16:11,280 --> 00:16:13,440 Speaker 1: the audience, and that really hasn't changed. What has changed 289 00:16:13,440 --> 00:16:18,240 Speaker 1: more our methods of dissemination of the product. Maestro, and 290 00:16:18,440 --> 00:16:24,560 Speaker 1: the business, the business of making music. Describe the changes 291 00:16:24,720 --> 00:16:30,960 Speaker 1: that you have your two decades twenty three years. Congratulations 292 00:16:31,040 --> 00:16:33,760 Speaker 1: thanks following hard to believe. I told everybody I started 293 00:16:33,760 --> 00:16:35,440 Speaker 1: when I was ten that I was gonna say in 294 00:16:35,720 --> 00:16:41,840 Speaker 1: short pants. The business of making music involves a lot 295 00:16:41,880 --> 00:16:46,840 Speaker 1: of different creative elements. Where you play, where you tour, 296 00:16:47,160 --> 00:16:51,520 Speaker 1: how you reach audiences. Give us some details about what 297 00:16:51,640 --> 00:16:55,040 Speaker 1: you have found to be successful and how that integrates 298 00:16:55,280 --> 00:17:00,000 Speaker 1: with the local and the national economy. Okay, another another 299 00:17:00,280 --> 00:17:04,720 Speaker 1: see it's incredibly a corect question. Um. I tell people 300 00:17:04,800 --> 00:17:08,240 Speaker 1: when I came here in when they when they say, well, 301 00:17:08,280 --> 00:17:10,280 Speaker 1: it's only been two decades, how much change have you seen? 302 00:17:10,280 --> 00:17:12,119 Speaker 1: And I said, well, I didn't have a cell phone 303 00:17:12,240 --> 00:17:14,480 Speaker 1: or an email account when I came to become conductor 304 00:17:14,480 --> 00:17:16,480 Speaker 1: of the Boston Pops, and I wasn't weird. I wasn't 305 00:17:16,480 --> 00:17:19,040 Speaker 1: living in a cave. I just didn't need those things. 306 00:17:19,040 --> 00:17:22,560 Speaker 1: And obviously our lives have been transformed hugely by the 307 00:17:22,640 --> 00:17:25,600 Speaker 1: various technologies and and changes in media that we have 308 00:17:25,920 --> 00:17:29,440 Speaker 1: seen the Boston Pops. It's really been the challenge over 309 00:17:29,480 --> 00:17:33,480 Speaker 1: the last two decades to adapt to the new situation. 310 00:17:33,720 --> 00:17:37,400 Speaker 1: This orchestra became not just a regional brand, I mean, 311 00:17:37,440 --> 00:17:39,560 Speaker 1: even though Boston is still in our name, but truly 312 00:17:40,040 --> 00:17:43,760 Speaker 1: a national and to some some extent international brand under 313 00:17:43,880 --> 00:17:46,800 Speaker 1: Arthur Fieler, and it became that by dint of technology. 314 00:17:47,040 --> 00:17:49,440 Speaker 1: UM the the it was one of the first American 315 00:17:49,520 --> 00:17:52,520 Speaker 1: orchestras to record and then recorded extensively, and by the 316 00:17:52,560 --> 00:17:55,600 Speaker 1: time every house out of Victrola, pretty much every Victoria 317 00:17:55,720 --> 00:18:00,280 Speaker 1: had a Boston Pops seventy eight on it. UM also 318 00:18:00,359 --> 00:18:04,600 Speaker 1: uh he indefatigable touring this orchestra or other orchestras under 319 00:18:04,600 --> 00:18:06,679 Speaker 1: earth of Feedler's command, which passed at that point. For 320 00:18:06,720 --> 00:18:09,360 Speaker 1: the Boston Pops were out months out of the year, 321 00:18:09,359 --> 00:18:13,600 Speaker 1: playing every Middlesex village and farm, across the country, and 322 00:18:13,640 --> 00:18:17,480 Speaker 1: then of course Evening of Pops in the nineties seventies 323 00:18:17,600 --> 00:18:20,399 Speaker 1: put the orchestra on in people's living rooms in a 324 00:18:20,440 --> 00:18:23,440 Speaker 1: way that had never had before. So in the current day, 325 00:18:23,520 --> 00:18:26,040 Speaker 1: when the idea of moving a hundred people around the 326 00:18:26,080 --> 00:18:29,800 Speaker 1: country on three month tours is is just financially impossible, 327 00:18:30,160 --> 00:18:32,840 Speaker 1: it does. It does. The numbers don't work anymore for that. 328 00:18:33,119 --> 00:18:37,040 Speaker 1: The question is how do we use new technologies, emerging technologies, 329 00:18:37,080 --> 00:18:39,919 Speaker 1: to continue to find those people who want what we 330 00:18:40,000 --> 00:18:41,480 Speaker 1: have to offer. And what we have to offer I 331 00:18:41,480 --> 00:18:43,840 Speaker 1: think is singular. This is an orchestra that for a 332 00:18:43,920 --> 00:18:47,000 Speaker 1: hundred and thirty years has not preached to the choir 333 00:18:47,320 --> 00:18:49,919 Speaker 1: that we have said that people you don't have to 334 00:18:49,960 --> 00:18:53,480 Speaker 1: be a quote classical music fan to love good music. 335 00:18:53,520 --> 00:18:56,160 Speaker 1: And we've done up by reaching people on their own level, 336 00:18:56,359 --> 00:18:59,359 Speaker 1: by or or with the things they're familiar with, bringing 337 00:18:59,359 --> 00:19:02,080 Speaker 1: them some things they may not know, and then them saying, wow, 338 00:19:02,119 --> 00:19:03,919 Speaker 1: I love that tune and I never thought i'd hear 339 00:19:03,920 --> 00:19:07,159 Speaker 1: an orchestra play. Where do you find the best musicians 340 00:19:07,160 --> 00:19:11,480 Speaker 1: these days? Oh? The one problem we don't have in 341 00:19:11,480 --> 00:19:15,160 Speaker 1: the classical performing arts is is a dearth of great 342 00:19:15,200 --> 00:19:18,240 Speaker 1: performers UH these days the music schools in this country. 343 00:19:18,520 --> 00:19:20,960 Speaker 1: When when the Boston Cempty was formed in eighty five, 344 00:19:21,000 --> 00:19:24,600 Speaker 1: the entire orchestra was German because there were no schools 345 00:19:24,600 --> 00:19:27,159 Speaker 1: of music in this country and there was nobody here 346 00:19:27,240 --> 00:19:30,280 Speaker 1: receiving that level of a music education. Now people from 347 00:19:30,320 --> 00:19:32,320 Speaker 1: all over the world come to our shores and come 348 00:19:32,359 --> 00:19:36,159 Speaker 1: to Juilliard and Eastman and Curtis and Indiana, and the 349 00:19:36,200 --> 00:19:38,320 Speaker 1: list goes on and on and on. Right here in Boston, 350 00:19:38,920 --> 00:19:41,840 Speaker 1: with Boston University, in New England, Conservatory in Berkeley, we 351 00:19:41,920 --> 00:19:44,800 Speaker 1: have UH so many great young musicians coming out that 352 00:19:44,840 --> 00:19:47,320 Speaker 1: there is never a lack when we have an opening. 353 00:19:47,359 --> 00:19:49,680 Speaker 1: We just we have to, you know, we have to 354 00:19:49,680 --> 00:19:52,760 Speaker 1: close the door eventually, because so many people want those jobs. 355 00:19:52,760 --> 00:19:56,119 Speaker 1: The problem is, of course, the UH industry has shrunk 356 00:19:56,200 --> 00:19:58,360 Speaker 1: somewhat over the last couple of decades, and there are 357 00:19:58,400 --> 00:20:00,800 Speaker 1: more and more highly skilled practic issues for fewer and 358 00:20:00,840 --> 00:20:03,719 Speaker 1: fewer jobs. Now, I want to note that you are 359 00:20:03,760 --> 00:20:07,320 Speaker 1: a feature sometimes on drivetime radio, aren't you. I? UM, 360 00:20:07,960 --> 00:20:11,880 Speaker 1: you know this the the Boston Pops job, as opposed 361 00:20:11,920 --> 00:20:14,840 Speaker 1: a little bit to our parent company, the Boston Symphony, 362 00:20:14,920 --> 00:20:20,520 Speaker 1: is it's it's the outreach arm of the orchestra world, 363 00:20:20,600 --> 00:20:23,040 Speaker 1: I think, not just for the Boston Symphony, but nationally. 364 00:20:23,080 --> 00:20:25,560 Speaker 1: And so I spend quite a bit more time talking 365 00:20:25,600 --> 00:20:28,879 Speaker 1: in venues who wouldn't tend to find a conductor. I 366 00:20:29,000 --> 00:20:31,920 Speaker 1: was saying that I'm used to all sorts of early 367 00:20:31,960 --> 00:20:36,199 Speaker 1: morning drivetime, shock jack radio and all that sort of thing. 368 00:20:36,280 --> 00:20:43,040 Speaker 1: So you guys seem well, very very um refined, was 369 00:20:44,760 --> 00:20:49,080 Speaker 1: careful because we're sponsors, and we're gonna be tell we're 370 00:20:49,080 --> 00:20:53,240 Speaker 1: gonna be telecasting on Bloomberg Television, Bloomberg Radio, and Bloomberg 371 00:20:53,320 --> 00:20:55,680 Speaker 1: dot com. You're gonna be able to hear the Boston 372 00:20:55,720 --> 00:20:59,400 Speaker 1: Pops July fourth celebration with the cannons please of course, 373 00:20:59,440 --> 00:21:02,639 Speaker 1: with the cannon to the stereos around sound. What was 374 00:21:02,680 --> 00:21:04,119 Speaker 1: the moment at which you knew you wanted to be 375 00:21:04,200 --> 00:21:06,439 Speaker 1: a conductor. Well, I'm still not quite sure of that, 376 00:21:06,520 --> 00:21:09,960 Speaker 1: but you know at this point that my own exactly, 377 00:21:10,400 --> 00:21:15,560 Speaker 1: um I was. It's not to almost after I got 378 00:21:15,600 --> 00:21:18,840 Speaker 1: out of college and uh, and I wasn't still sure 379 00:21:18,840 --> 00:21:21,840 Speaker 1: what I wanted to do, uh, started experimenting with it. 380 00:21:21,840 --> 00:21:24,440 Speaker 1: It was exactly where music took me. And I've been 381 00:21:24,480 --> 00:21:29,159 Speaker 1: thrilled the money. I'm sorry, I gotta keep pressing on 382 00:21:29,200 --> 00:21:33,080 Speaker 1: the money here because as you just described as well, 383 00:21:34,000 --> 00:21:38,520 Speaker 1: they do about money. But that's the point is you 384 00:21:38,560 --> 00:21:41,040 Speaker 1: can't now avoid that. You just said, right, a hundred musicians. 385 00:21:41,080 --> 00:21:42,679 Speaker 1: You're not going to move them all around the country. 386 00:21:42,720 --> 00:21:47,159 Speaker 1: This is expensive stuff. Uh, what do you want to 387 00:21:47,200 --> 00:21:51,320 Speaker 1: get across the people that may not think that classical 388 00:21:51,400 --> 00:21:55,600 Speaker 1: music is the way to reach young people with money? 389 00:21:55,640 --> 00:21:59,880 Speaker 1: Because this is as much about networking, having a great 390 00:22:00,040 --> 00:22:03,480 Speaker 1: time being together in a setting where you can build 391 00:22:03,480 --> 00:22:06,720 Speaker 1: a relationship exactly. And as you know, so many of 392 00:22:06,760 --> 00:22:10,119 Speaker 1: our entertainments these days and the ubiquity of social media 393 00:22:10,119 --> 00:22:12,600 Speaker 1: and that sort of thing make uh, these kind of 394 00:22:12,720 --> 00:22:15,760 Speaker 1: intimate relationships in a in a way a little old fashioned. 395 00:22:15,760 --> 00:22:17,520 Speaker 1: But at the end of the day, I think music 396 00:22:17,640 --> 00:22:21,240 Speaker 1: is about community, it's about coming together, It's about exploring 397 00:22:21,280 --> 00:22:24,360 Speaker 1: something that really touches the deepest levels of our souls 398 00:22:24,400 --> 00:22:28,560 Speaker 1: and our beings, and those things. I think people will 399 00:22:28,600 --> 00:22:30,760 Speaker 1: come back to those things. I think people will realize 400 00:22:30,800 --> 00:22:35,520 Speaker 1: that Facebook friends are not really friends, and that Keith Lockhart, 401 00:22:35,520 --> 00:22:38,119 Speaker 1: thank you so much for joining us. Keith Lockhart is 402 00:22:38,160 --> 00:22:41,359 Speaker 1: the conductor for the Boston Pops and he joins us 403 00:22:41,440 --> 00:22:44,320 Speaker 1: here in Boston, We're gonna take you out with a 404 00:22:44,359 --> 00:23:14,080 Speaker 1: little debuc We are in Boston at the Symphony Hall. 405 00:23:14,280 --> 00:23:18,040 Speaker 1: Here the Boston Pops made an announcement that they're going 406 00:23:18,200 --> 00:23:21,600 Speaker 1: to be broadcasting the July fourth celebration. They're going to 407 00:23:21,680 --> 00:23:25,119 Speaker 1: be performing the July fourth Celebration, and Bloomberg will be 408 00:23:26,000 --> 00:23:28,840 Speaker 1: broadcasting at Bloomberg is also a major sponsor that will 409 00:23:28,880 --> 00:23:34,719 Speaker 1: be underpinning this effort for the upcoming years. Another firm 410 00:23:34,760 --> 00:23:38,000 Speaker 1: that is also a major sponsor of the Boston Pops 411 00:23:38,160 --> 00:23:40,439 Speaker 1: is Eating Vans and we are lucky to have with 412 00:23:40,520 --> 00:23:43,720 Speaker 1: us Tom Faust, the chairman and CEO of Eating Vans. So, Tom, 413 00:23:43,760 --> 00:23:46,600 Speaker 1: this is the first time the Eating Vans has sponsored 414 00:23:46,720 --> 00:23:50,119 Speaker 1: the Boston Pops. Correct, that's right. This is a new 415 00:23:50,400 --> 00:23:53,960 Speaker 1: new event for us and a new, uh new, evolving 416 00:23:54,040 --> 00:23:58,320 Speaker 1: celebration for Boston. For the last forty three years, David 417 00:23:58,560 --> 00:24:02,359 Speaker 1: Mugar has been the producer and really has overseen this event. 418 00:24:02,440 --> 00:24:05,040 Speaker 1: And just in the past year, David has turned over 419 00:24:05,080 --> 00:24:07,639 Speaker 1: the baton, so to speak, to the Boston Pops and 420 00:24:07,920 --> 00:24:10,320 Speaker 1: Eat Vance is pleased to be the presenting sponsor for 421 00:24:10,400 --> 00:24:14,760 Speaker 1: the now newly constituted UH Boston Pops four Fourth of 422 00:24:14,840 --> 00:24:18,240 Speaker 1: July Firework Spectacular. Can you speak a little bit about 423 00:24:18,280 --> 00:24:22,440 Speaker 1: being here in Boston and the role that an institution 424 00:24:22,640 --> 00:24:26,080 Speaker 1: like the Boston Pop plays in the local and, as 425 00:24:26,119 --> 00:24:31,280 Speaker 1: a result, the national economy. The Fourth of July concert 426 00:24:31,600 --> 00:24:35,040 Speaker 1: on the Esplanade in Boston is it's both a major 427 00:24:35,119 --> 00:24:40,360 Speaker 1: regional event and an major national event. What UH this 428 00:24:40,480 --> 00:24:46,119 Speaker 1: represents to UH hundreds of thousands of Boston and area 429 00:24:46,200 --> 00:24:48,879 Speaker 1: families is an integral part of how they celebrate the 430 00:24:48,920 --> 00:24:52,359 Speaker 1: Fourth of July, how they celebrate our nation's birthday, but 431 00:24:52,440 --> 00:24:56,520 Speaker 1: also across the country. For decades, this has been a 432 00:24:56,600 --> 00:24:59,879 Speaker 1: part of many families Fourth the July rituals. UH in 433 00:25:00,000 --> 00:25:04,119 Speaker 1: you remember the first time that you were present to 434 00:25:04,280 --> 00:25:08,920 Speaker 1: see the celebrations and here so um because you went 435 00:25:08,960 --> 00:25:10,280 Speaker 1: to M I T. I went to M I T 436 00:25:10,520 --> 00:25:12,920 Speaker 1: and I came here as a college student from Arkansas. 437 00:25:13,000 --> 00:25:16,040 Speaker 1: Thank you and UH. The first time I came to 438 00:25:15,600 --> 00:25:19,399 Speaker 1: the Boston Pops Fourth of July was during my college career, 439 00:25:19,480 --> 00:25:21,960 Speaker 1: when it seemed a very logical thing for a bunch 440 00:25:21,960 --> 00:25:24,240 Speaker 1: of buddies and I to go over to the Esplanade 441 00:25:24,280 --> 00:25:26,040 Speaker 1: and stick out our turff and spend the day in 442 00:25:26,080 --> 00:25:29,600 Speaker 1: the sun and enjoy the amazing concert and fireworks on 443 00:25:29,640 --> 00:25:32,720 Speaker 1: the Fourth of July evening. And so that became something 444 00:25:32,760 --> 00:25:35,199 Speaker 1: I did with friends, and then when I had a 445 00:25:35,200 --> 00:25:37,440 Speaker 1: young family, that also became part of our family tradition 446 00:25:37,480 --> 00:25:40,119 Speaker 1: as well. So I would imagine as the CEO and 447 00:25:40,200 --> 00:25:42,280 Speaker 1: chairman of Eating Vans, you don't have much time to 448 00:25:42,320 --> 00:25:45,320 Speaker 1: go and stick out of position UH for an entire 449 00:25:45,400 --> 00:25:48,240 Speaker 1: day for the fireworks celebration. I'm sure you have UH 450 00:25:49,160 --> 00:25:51,760 Speaker 1: better better, better plans and better seating, But as a 451 00:25:51,840 --> 00:25:54,440 Speaker 1: chairman and CEO, I would be remiss not to ask 452 00:25:54,520 --> 00:26:00,000 Speaker 1: you just for the outlook for asset managers, managers, particularly 453 00:26:00,400 --> 00:26:05,360 Speaker 1: active managers, facing the incredible flood of money into passive 454 00:26:05,400 --> 00:26:09,680 Speaker 1: managing UH from active investment funds. How has Eating Vans 455 00:26:09,720 --> 00:26:13,720 Speaker 1: dealing with this and are their pockets where active management 456 00:26:13,760 --> 00:26:18,960 Speaker 1: is starting to attract more UH away from passive. For sure, 457 00:26:19,000 --> 00:26:22,000 Speaker 1: this is a time of dramatic change in our business. 458 00:26:22,040 --> 00:26:23,600 Speaker 1: I've I've been at Eaton Vance and been in the 459 00:26:23,640 --> 00:26:25,720 Speaker 1: asset management business for thirty two years. I don't think 460 00:26:25,720 --> 00:26:28,800 Speaker 1: there's ever been a time, other than maybe periods of 461 00:26:28,840 --> 00:26:31,359 Speaker 1: market upset, where there's been as much change in the 462 00:26:31,359 --> 00:26:34,920 Speaker 1: asset management business as there is today. The primary driver 463 00:26:35,040 --> 00:26:38,359 Speaker 1: that is you point out is UH this general flow 464 00:26:38,440 --> 00:26:43,120 Speaker 1: of assets from UH active Broadley defined too passive Broadley define. 465 00:26:43,800 --> 00:26:47,560 Speaker 1: But it's not happening UH uniformly across asset classes, and 466 00:26:47,600 --> 00:26:51,480 Speaker 1: it's certainly not affecting all managers equally. It continues to 467 00:26:51,480 --> 00:26:54,960 Speaker 1: be the case that people are looking for out performance, 468 00:26:55,040 --> 00:26:58,280 Speaker 1: and that if managers and investment teams can deliver out 469 00:26:58,280 --> 00:27:01,560 Speaker 1: performance UH, their continue is to base strong market demand 470 00:27:01,600 --> 00:27:04,400 Speaker 1: for what they deliver. I'm pleased to say that across 471 00:27:04,560 --> 00:27:07,040 Speaker 1: many of our investment strategies, not all of them, we 472 00:27:07,160 --> 00:27:09,720 Speaker 1: have strong performance and only against other active managers, but 473 00:27:09,760 --> 00:27:14,639 Speaker 1: also against passive alternatives. So which asset classes are least effective, 474 00:27:15,240 --> 00:27:19,639 Speaker 1: at least least affected by UH flows into passive funds, 475 00:27:19,640 --> 00:27:22,440 Speaker 1: and which are most of eating vances funds? So we're 476 00:27:22,480 --> 00:27:27,000 Speaker 1: consistent with the overall trend, which is that the flow 477 00:27:27,119 --> 00:27:31,200 Speaker 1: from active to passive has been strongest in US equities 478 00:27:31,240 --> 00:27:35,119 Speaker 1: and particularly large cap US equities. And when people the 479 00:27:35,160 --> 00:27:39,800 Speaker 1: headlines about active versus passive performance, usually that's focused on 480 00:27:40,440 --> 00:27:43,320 Speaker 1: large cap U s stock. So what percentage of mutual 481 00:27:43,359 --> 00:27:45,639 Speaker 1: funds of US equity funds beat the S and P 482 00:27:45,800 --> 00:27:48,600 Speaker 1: five by that measure, It's been a pretty tough time 483 00:27:48,720 --> 00:27:51,640 Speaker 1: for active managers. If you look at other asset classes, 484 00:27:51,640 --> 00:27:53,720 Speaker 1: if you look at global or non US equities, or 485 00:27:53,760 --> 00:27:57,320 Speaker 1: small caps, but particularly across the whole range of income strategies, 486 00:27:57,640 --> 00:28:00,160 Speaker 1: the picture is quite different. There are many segments. It's 487 00:28:00,160 --> 00:28:03,840 Speaker 1: where Eaton Vance has major business positions where indexing effectively 488 00:28:03,880 --> 00:28:06,640 Speaker 1: doesn't work very well. Um, it's hard to do indexing 489 00:28:06,680 --> 00:28:10,760 Speaker 1: effectively in UH segments like bank loans. It's like segments 490 00:28:10,760 --> 00:28:13,439 Speaker 1: like how your bonds, emerging market debt, and municipal bonds. 491 00:28:13,560 --> 00:28:15,800 Speaker 1: All of those are big businesses for eating Vance, where 492 00:28:15,800 --> 00:28:18,760 Speaker 1: we think our active managers compete very effectively versus all 493 00:28:18,760 --> 00:28:23,080 Speaker 1: passive alternatives. I'd like you to speak about custom beta 494 00:28:23,440 --> 00:28:27,359 Speaker 1: at Eaton Vance and the qualities that come with rule 495 00:28:27,400 --> 00:28:32,399 Speaker 1: based investing. So custom beta is is our term for 496 00:28:33,320 --> 00:28:38,080 Speaker 1: customized passive investing, where an investor says, I want an 497 00:28:38,080 --> 00:28:41,120 Speaker 1: exposure to this part of the equity market or this 498 00:28:41,240 --> 00:28:44,800 Speaker 1: part of the fixed income market, but rather than investing 499 00:28:44,800 --> 00:28:47,640 Speaker 1: in that in that market segment through what we call 500 00:28:47,680 --> 00:28:49,960 Speaker 1: a bulk beta instrument like an e T F OR 501 00:28:50,320 --> 00:28:54,840 Speaker 1: or an index fund. By owning the individual securities, you 502 00:28:54,880 --> 00:28:59,640 Speaker 1: can achieve customized portfolios that have better tax treatment and 503 00:28:59,680 --> 00:29:03,320 Speaker 1: that ror reflect the personal values and what's important to 504 00:29:03,400 --> 00:29:05,560 Speaker 1: the particular client. And that's been a very big part 505 00:29:05,600 --> 00:29:08,640 Speaker 1: of our our strategy. As business has moved from active 506 00:29:08,640 --> 00:29:11,440 Speaker 1: to passive, this has been our way to compete effectively 507 00:29:11,440 --> 00:29:13,640 Speaker 1: in the passive part of the business. I was just 508 00:29:13,640 --> 00:29:16,960 Speaker 1: wondering if you could do ten seconds on just explaining 509 00:29:17,960 --> 00:29:22,120 Speaker 1: the tax situation um. If you own a mutual fund 510 00:29:22,600 --> 00:29:25,840 Speaker 1: and one of the stocks inside that fund goes down 511 00:29:25,880 --> 00:29:29,920 Speaker 1: in price, if the manager sells that the loss that's 512 00:29:29,920 --> 00:29:33,000 Speaker 1: recognized if as effectively trapped inside the fund, you cannot 513 00:29:33,120 --> 00:29:35,680 Speaker 1: use that loss to offset the gains you have elsewhere 514 00:29:35,680 --> 00:29:38,400 Speaker 1: in your portfolio. But if you own that same stock 515 00:29:38,440 --> 00:29:40,960 Speaker 1: in a separate account, that loss can be used to 516 00:29:41,000 --> 00:29:43,960 Speaker 1: offset gains you have elsewhere in your portfolio. Great, thanks 517 00:29:44,040 --> 00:29:46,080 Speaker 1: very much, Tom Fausti used the chairman and the chief 518 00:29:46,080 --> 00:29:50,200 Speaker 1: executive of Eaton Events about three hundred and seventy billion 519 00:29:50,240 --> 00:29:54,520 Speaker 1: dollars of assets under management. A new sponsor of PP 520 00:29:54,800 --> 00:29:58,720 Speaker 1: to Live four celebration. Indeed, as is Bloomberg, we are 521 00:29:58,800 --> 00:30:01,880 Speaker 1: the media's sponsor, so you'll be able to watch the 522 00:30:02,000 --> 00:30:07,280 Speaker 1: July fourth celebration Boston Pops on Bloomberg Television here at, 523 00:30:07,280 --> 00:30:16,520 Speaker 1: on Bloomberg Radio, and on Bloomberg dot com. Thanks for 524 00:30:16,600 --> 00:30:19,920 Speaker 1: listening to the Bloomberg pien L podcast. You can subscribe 525 00:30:19,920 --> 00:30:24,560 Speaker 1: and listen to interviews at iTunes, SoundCloud, or whatever podcast 526 00:30:24,560 --> 00:30:27,600 Speaker 1: platform you prefer. I'm pim Fox. I'm out there on 527 00:30:27,640 --> 00:30:30,840 Speaker 1: Twitter at pim Fox. I'm out there on Twitter at 528 00:30:31,000 --> 00:30:33,960 Speaker 1: Lisa Abramo. It's one before the podcast. You can always 529 00:30:34,040 --> 00:30:36,160 Speaker 1: catch us worldwide on Bloomberg Radio