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Speaker 1: Welcome to the Bloomberg Penl Podcast. I'm Paul swing you.

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Speaker 1: Along with my co host Lisa Brahma Waits. Each day

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Speaker 1: we bring you the most noteworthy and useful interviews for

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Speaker 1: you and your money, whether at the grocery store or

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Speaker 1: the trading floor. Find a Bloomberg Penl podcast on Apple

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Speaker 1: podcast or wherever you listen to podcasts, as well as

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Speaker 1: at Bloomberg dot com. We are joined by the one

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Speaker 1: and only David Kotalk, Chairman and Chief Investment Officer of

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Speaker 1: Cumberland Advisors. H really interesting right now to see bonds

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Speaker 1: continuing to rally even as we get better than expected

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Speaker 1: data out of China, and there seems to be a

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Speaker 1: growing amount of optimism that perhaps Europe is bottoming. And

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Speaker 1: I have to wander has the rally gone too far

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Speaker 1: too fast? Where are you on that? I think the

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Speaker 1: treasury rally in the United States that has flattened the

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Speaker 1: yield curve, inverted it. Some people would say you just

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Speaker 1: had a previous segment and talking about that, I think

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Speaker 1: it's gone too far too fast. And this whole notion,

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Speaker 1: now that we have futures pricing of rate cuts, how

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Speaker 1: recently did we have futures pricing rate hikes? What makes

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Speaker 1: futures pricings gospel? I don't see it, So I think

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Speaker 1: we're in our shop. You know, what do you think

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Speaker 1: is one thing? What do you do in a portfolio?

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Speaker 1: Was another. We are shortening duration, we are favoring the

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Speaker 1: front end. We've expanded the shorter maturity side of the barbell.

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Speaker 1: We're taking profits in bonds because they've galloped by so

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Speaker 1: many points, and we're shifting a portfolio to defense. So

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Speaker 1: in the high old market, that's also how to rally?

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Speaker 1: Do you see any value there? In which market is

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Speaker 1: in high I'm worried about credit. When you spend ten

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Speaker 1: years at zero interest rates, you buffer sensitivity, you you

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Speaker 1: eliminate this notion that there's credit risk. So you see

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Speaker 1: this spreading out a credit risk in spreads and then

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Speaker 1: it tightens right back up and people chase yield. And

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Speaker 1: chasing yield in the long run is a bad thing

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Speaker 1: to do. So in our shop, we're favoring higher grade,

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Speaker 1: not how you here's the problem, and this is something

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Speaker 1: that I think a lot of people are struggling with.

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Speaker 1: There are a lot of signs that were in late

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Speaker 1: cycle on every level, whether it's equities, whether it's risk

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Speaker 1: assets and credit. And the problem is is that that

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Speaker 1: can continue for a long time, right, and this would

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Speaker 1: actually be one of the best parts of the whole rally,

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Speaker 1: especially if there is no sort of disruptive factor. So, uh,

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Speaker 1: your your you look you have consternation. No, I don't.

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Speaker 1: I agree with you. A late cycle sweet spot two growth,

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Speaker 1: no excesses. It appears low inflation, low interest rates. Uh.

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Speaker 1: The markets ignore the geopolitical risk, it's there. They ignore

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Speaker 1: the narrative and volatility of politics, it's there. They ignore

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Speaker 1: Brexit in the charade we call the UK trying to

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Speaker 1: do something. I mean, markets are ignoring us. Well, why

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Speaker 1: there's a salve. The salve is constant monetary policy with

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Speaker 1: excess liquidity. And now in the United States that's normalizing.

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Speaker 1: In Europe they're gonna try in a change of regime

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Speaker 1: after drugging, to try to normalize interest rates up to zero.

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Speaker 1: So here's the question. Do you have a permanent free

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Speaker 1: lunch of infinite liquidity and therefore everything is wonderful all

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Speaker 1: the time, or is there some transfer that's taking place

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Speaker 1: between those who are borrowing long term at low interest

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Speaker 1: rates with some plan or no plan to ever pay

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Speaker 1: it back, and those who are trapped in a paradigm.

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Speaker 1: An institution, for example, that is forced to buy a

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Speaker 1: German government bond with part of its capital by law.

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Speaker 1: Is there a trade off and when it happens, we

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Speaker 1: don't know. Does it get ugly when it does? Maybe?

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Speaker 1: So when you get a massive rally like this, you

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Speaker 1: put some of it in the bank. You earn your

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Speaker 1: two percent on your cash in America, and you say,

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Speaker 1: you know what risk is rising, and I don't know

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Speaker 1: when it's gonna bite. So how much cash are you have?

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Speaker 1: You increased the allocation too well. In the bond side,

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Speaker 1: we're moving to the short duration. In the stock side,

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Speaker 1: we run four different types of stock portfolios and they

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Speaker 1: are in various positions in cash between fift and the

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Speaker 1: high turnover technical quantitative strategy went to a percent cash

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Speaker 1: last night last night. Please please elaborate how much was

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Speaker 1: it in cash before you sold out of everything. It's

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Speaker 1: a binary strategy, so it's either fully invested or it's

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Speaker 1: in cash, and it had it's got phasing, its intricate

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Speaker 1: math and the final trunch went to cash yesterday. David

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Speaker 1: Kotok cash and one of his funds that last night.

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Speaker 1: How often does it happen? Well, this strategy can sit

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Speaker 1: in cash for months till it has the right kind

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Speaker 1: of entry. It's it's quantitative driven. It doesn't have human

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Speaker 1: beings making decisions using their emotions. So no matter what

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Speaker 1: I think, it's the math that will was the last

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Speaker 1: time that it was in all cash um last time

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Speaker 1: it was in all cash was last um fall. Sometime

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Speaker 1: we had an entry after the summer sell off and

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Speaker 1: we went into the v drop in ash. So we

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Speaker 1: had a Swan song down and back. Interesting. So so

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Speaker 1: it's clear you think the FED has gone too far. Well,

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Speaker 1: I think I think the FED was remarkable. The FED

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Speaker 1: says we're data driven. The FED says we'll look at

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Speaker 1: data and if it changes, will change. And the FED

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Speaker 1: has said, okay, we're gonna pause for a while. That's

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Speaker 1: what the dots are all about. David Kotak, thank you

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Speaker 1: so much. I think we heard this was really interesting,

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Speaker 1: so interesting. We've you just never hear that going to

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Speaker 1: catch And it's a it's a binary strategy, to be clear,

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Speaker 1: which is what David Kodak was saying. But the idea

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Speaker 1: that right now things look a little bit overdone, even

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Speaker 1: when it comes to someone who doesn't have emotions exactly.

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Speaker 1: David Kotok, thank you so much. Thank it's a chairman

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Speaker 1: of Chief Investment officer of Complerent Advisors. Always a welcome

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Speaker 1: guest here in a Bloomberg Interactive Broker studio. Well, financial

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Speaker 1: technology or fintech is one of the hottest areas, not

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Speaker 1: only in technology but in financial services, and it is

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Speaker 1: impacting companies large and small across the spectrum. To help

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Speaker 1: us kind of dig into this issue, this issue, we

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Speaker 1: welcome Karen Mills. Karen is a senior Fellow at Harvard

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Speaker 1: Business School and she's a former Small Business Administration Administrator

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Speaker 1: for President Obama. Uh, Karen, thank you, and welcome to Bloomberg.

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Speaker 1: I really want to get a sense of is in

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Speaker 1: your book. In the book is entitled Fintech Small Business

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Speaker 1: in the American Dream. Is that your contention that financial

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Speaker 1: technology is a net positive or net negative for small businesses.

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Speaker 1: It's a huge positive for small business. In fact, I

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Speaker 1: think we're at a huge inflection point. You know, we

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Speaker 1: all talk about AI and fintech um and I think

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Speaker 1: one of the places that we're going to see huge

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Speaker 1: change is not in driverless cars, but it is in

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Speaker 1: small business lending. We're going to see the ability of

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Speaker 1: small businesses to have credit at the push of a button.

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Speaker 1: And the players in this are not going to be

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Speaker 1: just your old community bank. It's going to be Apple

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Speaker 1: and Amazon and Square and new fin techs and then

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Speaker 1: traditional places like JP Morgan are investing, you know, billions

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Speaker 1: of dollars literally in providing new services. So this could

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Speaker 1: be the game changer that small businesses need to get

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Speaker 1: the products and services that meet their needs. So here's

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Speaker 1: my question. We've had peer to peer lending that has

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Speaker 1: been going strong and then not so much over the

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Speaker 1: number of past number of years, we've had an increase

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Speaker 1: in online marketplaces for loans to those small businesses crop up.

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Speaker 1: Why have we not yet seen, uh, this sort of

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Speaker 1: crossing of the tipping point with respect to how much

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Speaker 1: this can help small businesses? And the book I talked

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Speaker 1: about the fintech innovation curve and you just described like

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Speaker 1: the first phase. In the initial part, we called it

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Speaker 1: the wild West. You know, we thought everything was going

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Speaker 1: to take off, and then take off was aborted because

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Speaker 1: the peer to peer lenders it turned out they weren't

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Speaker 1: actually solving that bigger problem. They were making a better

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Speaker 1: customer experience, but they were giving people the same product,

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Speaker 1: maybe at a higher price. So enter big tech and

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Speaker 1: then you've got Amazon and PayPal and Square starting to lend,

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Speaker 1: and then people rethought the whole experience. What happened is

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Speaker 1: that data technology changed so that you could suck up

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Speaker 1: big pools of data through a p I S and

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Speaker 1: now the process is going to be radically different. If

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Speaker 1: you want to understand what's inside a small business, it's

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Speaker 1: very opaque. You know, how do you know this business

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Speaker 1: is really making money? How do you figure it out?

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Speaker 1: You have some poor banker who spends three months sort

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Speaker 1: of figure ing it out and then they say, uh no.

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Speaker 1: So what if all of this went into an algorithm

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Speaker 1: and the lender could say right away yes or no,

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Speaker 1: and the small business could also at the same time

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Speaker 1: know what's going on in their business. So I think

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Speaker 1: take off. We're just at this inflection point and you're

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Speaker 1: going to see that takeoff you were looking for. Well,

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Speaker 1: how about if I think about this, the small community

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Speaker 1: banks have been to the backbone of lending too small

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Speaker 1: businesses across America. Are you getting a sense that some

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Speaker 1: of these smaller regional banks have the wherewithal to make

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Speaker 1: the investment, to get up the technology, to curve to

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Speaker 1: compete against what will be really tech driven lending to

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Speaker 1: small businesses. I'm a big fan of small banks and

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Speaker 1: community banks, and from my time at s b A

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Speaker 1: I saw how important they were to the economy. I

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Speaker 1: would not count them out. What I think is going

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Speaker 1: to happen, and one of my predictions is that if

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Speaker 1: we get the regulation right, data will be open. So

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Speaker 1: if you give yourself permission, your permissions, then anybody can

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Speaker 1: suck up that data. So the winners will be people

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Speaker 1: who can create these platforms, and banks large and small

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Speaker 1: they can acquire or use those platforms, and you can

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Speaker 1: use your banker for more real advice and counsel rather

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Speaker 1: than that sort of grinded out process of the loan.

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Speaker 1: So I think you should not count out the community banks.

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Speaker 1: They should stick around and wait for the fin techs

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Speaker 1: to give them the products they need and just partner

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Speaker 1: partner with them in the meantime. Though you did mention

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Speaker 1: the behemoths the Amazons of the world, it's really just

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Speaker 1: Amazon and Apple, I guess, I guess Google, but I

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Speaker 1: haven't really heard them getting in on this, but Amazon

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Speaker 1: really stands out to me, especially because so many of

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Speaker 1: these small businesses may use the platform to actually sell

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Speaker 1: their goods. And I'm just wondering, when you talk about

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Speaker 1: sharing this data and allowing uh, you know, potential lenders

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Speaker 1: to see into the inner workings of these small business

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Speaker 1: is to give more confidence to giving them loans. I

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Speaker 1: assume that's what you're talking about with the data. Um,

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Speaker 1: Amazon has a tremendous leg up because they can see

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Speaker 1: the flows themselves as they lend to their businesses. I mean,

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Speaker 1: they could really consolidate this business. No. If Amazon wanted

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Speaker 1: to play like in many businesses, they could make a

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Speaker 1: huge mark. And they're already doing three billion or so.

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Speaker 1: And one of the interesting things with Amazon is are

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Speaker 1: they going to make the choice to use their balance

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Speaker 1: sheet to really enter this market? So far they haven't.

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Speaker 1: And Apple when they came in the market, they partner

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Speaker 1: with Goldman Sachs. So I think that data is key

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Speaker 1: to the decision making. But if we get more open

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Speaker 1: access to data, if you could own the stream of

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Speaker 1: information in your bank account and your Amazon flow, and

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Speaker 1: you could make it funnel up into a fintech. Then

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Speaker 1: that takes away some of their monopoly power. Why haven't

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Speaker 1: they used their balance sheet? You know, maybe they have

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Speaker 1: too many opportunities. They've got so many things that they're doing.

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Speaker 1: I actually they have asked them this question, and I

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Speaker 1: know that they are thinking about it, they're working on it.

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Speaker 1: But one reason is that small business never seems to

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Speaker 1: be the priority. First of all, people look at the

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Speaker 1: consumer market, and then small business is like the poor

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Speaker 1: cousin that gets the dribs and drabs. One of the

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Speaker 1: things I think will happen is that somebody will figure

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Speaker 1: out how to make a small business focus bank that

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Speaker 1: has different products, different services, and just maybe even a

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Speaker 1: vertical bank just for restaurants or just for dry cleaners,

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Speaker 1: and that way they have the expertise and I think

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Speaker 1: they will clean up. I think that's a way to

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Speaker 1: win and invest as more technology comes into banking. Is

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Speaker 1: the regulatory framework that we have in this country right

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Speaker 1: now set up to really regulate it properly in your opinion? Well,

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Speaker 1: the short answer to that is no, and this longer

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Speaker 1: answer is absolutely no. The regulatory system in this country

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Speaker 1: is what I call spaghetti soup. There are seven regulators

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Speaker 1: who oversee small business lending, and in the midst of

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Speaker 1: that there's overlapping, there's confusion. A lot of people say, well,

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Speaker 1: let's just get rid of all that regulation and then

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Speaker 1: everything will flow in community banks will come back. But

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Speaker 1: that's actually not the answer. It's not less regulation. It's

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Speaker 1: of course smart regulation. That means that the new regulations

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Speaker 1: need to think about what's in the black box. Who

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Speaker 1: owns the data? What if a small business gets a rejection,

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Speaker 1: can they see what went into the algorithm? How are

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Speaker 1: you going to figure out if there's a discrimination and

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Speaker 1: disparate impact. So I think the regulatory questions get thornier.

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Speaker 1: Karen Mills, We love having you on. Thank you for

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Speaker 1: being with us. Delighted to be here. Karen Karen Mills

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Speaker 1: a Senior Fellow at the Harvard Business School, former small

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Speaker 1: Business administrator for President Obama from two thousand nine through two,

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Speaker 1: and author, most importantly of a new book, Fintech, Small

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Speaker 1: Business and the American Dream dig into some of these questions. Well.

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Speaker 1: The news this morning is that black Rock is launching

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Speaker 1: a massive overhaul of its leadership to help navigate mounting

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Speaker 1: challenges across the asset management industry. From global expansion to

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Speaker 1: pressure on fees. To help us dig deeper into this story,

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Speaker 1: we welcome Annie Massa and he's a Bloomberg Finance reporter.

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Speaker 1: She joins us in our Bloomberg Interactive Brooker studio. Any

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Speaker 1: thanks so much for joining us. Why do you think

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Speaker 1: black Rock is doing this now? What is really changing

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Speaker 1: their business? I think that one of the key themes

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Speaker 1: that they're trying to address with this leadership change is

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Speaker 1: the desire to grow globally. So they're the world's largest

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Speaker 1: asset manager already, but a lot of their revenue is

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Speaker 1: focused in the America's region, and Larry think Um black

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Speaker 1: Ocksy has made a big point of how he wants

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Speaker 1: to keep branching out the business and expand, especially in

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Speaker 1: regions like China and um In this UH News this morning,

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Speaker 1: Latin America is a big focus as well. So the

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Speaker 1: question that I have is how much is this a

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Speaker 1: leadership issue with or issue but a bit of positive

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Speaker 1: sign that black Rock is being proactive and trying to

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Speaker 1: keep its position as the world's biggest asset management and

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Speaker 1: how much is this a response and a reflection of

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Speaker 1: the challenges in the broader asset management industry. With shrinking

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Speaker 1: fees across the board, with the shift to passive and

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Speaker 1: just the increased competition. Yeah, asset managers are under a

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Speaker 1: lot of pressure. As you mentioned, fee pressure is one

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Speaker 1: of the biggest challenges I think, and especially the large

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Speaker 1: asset managers have just been locked in this UM grinding

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Speaker 1: competition over fees. But I mean one solution to that

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Speaker 1: is to develop client relationships in new places and and

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Speaker 1: try to take on more clients UM globally. So I

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Speaker 1: think that that's part of why they're why they're doing

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Speaker 1: this now UM as a way to address UM that

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Speaker 1: so is the expectation Annie that as they tried to

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Speaker 1: develop new businesses maybe diversified geographically, that we may see

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Speaker 1: black Rock, they're already the largest globally, may even get

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Speaker 1: try to get bigger via M and A. Definitely UM.

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Speaker 1: They've been pursuing UM some deal making globally to to

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Speaker 1: try and advance those goals. And one other thing I'll

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Speaker 1: add on on the fee side is they're trying to

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Speaker 1: grow their alternatives business as well. And so while you

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Speaker 1: see this expansion globally, you're also seeing an expansion in

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Speaker 1: terms of the types of offerings that they have for clients,

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Speaker 1: and the alternatives has has been a big focus for them.

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Speaker 1: Let's dig into what alternatives is. Are you talking about

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Speaker 1: private equity and distressed dead hedge funds and things like that.

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Speaker 1: That's exactly right. So one example that we just reported

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Speaker 1: on this week is black Rock has this long term

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Speaker 1: private capital vehicle. It's kind of like a private equity

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Speaker 1: type vehicle that they announced last year. So they've secured

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Speaker 1: their first round of funding for this UM. They didn't

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Speaker 1: reach their goals yet. They want to raise as much

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Speaker 1: as ten to twelve billion UM for this vehicle. They've

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Speaker 1: got about UM two point seven five billion already. What

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Speaker 1: does it say that that it's taking longer than they

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Speaker 1: had expected to raise the money for this. It's a

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Speaker 1: challenging environment and it's not exactly the type of arena

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Speaker 1: that you can arrive in and um, you know, just

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Speaker 1: take over completely. It won't happen in the blink of

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Speaker 1: an eye. UM. So it's taking a bit longer than expected.

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Speaker 1: But it shows, I mean, especially with the reorgan today,

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Speaker 1: it shows that they've got a lot of focus on

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Speaker 1: this and and they're trying to like meaningfully grow UM

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Speaker 1: in outside of their gigantic index business. So any does

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Speaker 1: is also this management overhaul Today's is also addressed maybe

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Speaker 1: succession issue for Larry Fink. Are we kind of setting

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Speaker 1: up a two horse race here for to succeed Larry.

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Speaker 1: It's it's more than two horses. It's actually a whole stable. UM.

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Speaker 1: But today today, specifically, we've got UM a couple a

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Speaker 1: couple of the people that have been widely seen as

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Speaker 1: in the running. We're in play here, so especially Mark

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Speaker 1: McComb UM. They've created a new role for UM of

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Speaker 1: Chief Client Officer UM. But there are several people in

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Speaker 1: the running. And Larry think has actually said that he

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Speaker 1: likes to UM look at management this way instead of

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Speaker 1: just having one air apparent, have a whole bunch of

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Speaker 1: people in UM, these higher up roles, shuffle them around

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Speaker 1: and UM, you know, leadership is kind of about the

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Speaker 1: dynamics UM interpersonally that happened there. Does this reorganization include

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Speaker 1: further layoffs in addition to the five hundred announced cuts

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Speaker 1: that they've already made this year? The cuts that were

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Speaker 1: announced earlier this year, UM are all that we know

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Speaker 1: of right now. UM, But yeah, it is important to

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Speaker 1: note that with the expansion and the reshuffling. Um there

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Speaker 1: there were all there were also those massive headcount cuts

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Speaker 1: that came early in January. So anyways, this overall black Rock,

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Speaker 1: are they how profitable are they right now? I'm trying

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Speaker 1: to get a sense of whether this is you know,

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Speaker 1: coming from a position of strength or they're just like,

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Speaker 1: oh boy, our business is really in trouble. Well, I

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Speaker 1: mean they are the world's artist asset manager. They have

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Speaker 1: the biggest ETF business in the world. So I wouldn't

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Speaker 1: say it would be I think a stretch to say

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Speaker 1: that they're um under tons of pressure there, but I

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Speaker 1: mean asset management changes all the time. This is a

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Speaker 1: business that for thirty years has been you know, growing

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Speaker 1: through acquisition and now I think, um, you know, the

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Speaker 1: global focus is really important to them, um as they

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Speaker 1: try to kind of chart the next um, you know, expansion.

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Speaker 1: Annie Massa, thank you so much for joining us. Annie

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Speaker 1: Massa covers black Rock and asset management for us here

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Speaker 1: at Bloomberg joining us and our Bloomberg Interactive Brokers Studios. Paul,

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Speaker 1: we talk a lot about five G and how it

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Speaker 1: can transform the entire communications and frankly uh technological landscape.

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Speaker 1: Four nations. Certainly the U, S and China have been

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Speaker 1: sort of facing off in this battle for five G supremacy.

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Speaker 1: Joining US now is Meredith Meredith at Well Baker c

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Speaker 1: t I, a president and CEO former Commissioner of the

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Speaker 1: f CC. She was appointed by President Barack Obama in

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Speaker 1: two thousand nine, serving on the f c C until

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Speaker 1: two thousand and eleven. Meredith, thank you so much for

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Speaker 1: being with us. So you're saying that you think the

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Speaker 1: US has actually started to take the lead with the

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Speaker 1: race for five G technology, please explain well, first of all,

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Speaker 1: Lisa and Paul, thanks so much for having me. I'm

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Speaker 1: pleased to be with you. Guys, Um and um, what

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Speaker 1: are our stages is? We're just releasing a paper today

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Speaker 1: from Analysis Recun that says that, you know, a year ago,

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Speaker 1: China and South Korea led the five G race, but

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Speaker 1: the US was close behind, and really because of the

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Speaker 1: quick actions of our administration and the FCC and Congress

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Speaker 1: were tied in we're tied with China. Overall. US is

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Speaker 1: first in private investment, and we're first and high and

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Speaker 1: low band availability, but overall we're tied with China. So again,

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Speaker 1: what are really the metrics that you define to say

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Speaker 1: who's winning or losing, because it's my understanding that not

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Speaker 1: only were we be behind China, but we were well

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Speaker 1: behind China. Well, the US leads commercial deployments, and we'll

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Speaker 1: have twice the number of other nations by the end

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Speaker 1: of twenty and remember that China won't have a single

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Speaker 1: deployment by the end of the year. We're looking at

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Speaker 1: having over ninety deployments. All right. So the reason why

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Speaker 1: one reason why we're raising that is because we spoke

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Speaker 1: with a couple of weeks ago, we spoke with Susan Crawford,

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Speaker 1: who's a Harvard law professor and a former special assistant

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Speaker 1: during the Obama invest administration as well. Uh, and she

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Speaker 1: just wrote a book saying the coming Tech Revolution and

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Speaker 1: why America might miss it, about how the US is

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Speaker 1: profoundly behind in five G I'm just wondering, you know, how,

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Speaker 1: how could you give us some confidence as you know

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Speaker 1: that that that what you're saying is is more accurate. Um, well,

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Speaker 1: I mean the metrics of the paper, certainly the investment

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Speaker 1: of our companies is um you know, uh, three hundred

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Speaker 1: it's gonna add you know, the jobs and the numbers

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Speaker 1: that it is going to add to the economy. It's

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Speaker 1: three billion dollars. You talked about the the UM what

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Speaker 1: is going to bring to you know, all all of

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Speaker 1: the United States and our numbers or three and a

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Speaker 1: hundred one point eight million new jobs. UM. We look

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Speaker 1: at what the companies are investing. And if you look

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Speaker 1: at A T and T and Verizon the top investing

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Speaker 1: companies in the country, UM, and so what they are

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Speaker 1: willing to invest, what they have invested. After the administration

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Speaker 1: had tax reform, and after the FCC lowered the barriers

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Speaker 1: for entry for citing these new small cells, companies are

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Speaker 1: quadrupling the number of small cells that they're installing. So

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Speaker 1: I think not only are we looking at as a

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Speaker 1: global race, we have a race going on here in

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Speaker 1: the United States as to which company is going to

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Speaker 1: be first for five G deployments. And um, they're they're

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Speaker 1: engaged in a battle. I guess that there's a question

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Speaker 1: can the US gained supremacy with five G without the

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Speaker 1: government actually financing some of this? Does it have to

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Speaker 1: be all driven by corporate spending? Well, the free market

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Speaker 1: is policies of what have made the disference in our

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Speaker 1: winning four G and I but from every indication that

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Speaker 1: we see it's going to make the UM difference in

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Speaker 1: five G. So UM, we don't we feel like five G.

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Speaker 1: We are on a great path for five G right

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Speaker 1: now and we don't need anything except for some more

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Speaker 1: midband spectrum, which is the last ask key to the

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Speaker 1: piece of the five G puzzle for the carriers. Speaking

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Speaker 1: with Meredith at well Baker c t I, a president

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Speaker 1: and CEO on five gene and deployment of five G

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Speaker 1: in the US. So Meredith, maybe just you know, really

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Speaker 1: a basic point here maybe for our listeners is just

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Speaker 1: explain why five G is important. Yeah, I think that's

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Speaker 1: that's great. To take it up a step. UM, five

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Speaker 1: G is the next generation of wireless services. It's going

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Speaker 1: to be a hundred times faster, it's going to support

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Speaker 1: a hundred times more devices, and it's importantly gonna unlock

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Speaker 1: real time applications, meaning that there's no lag time. So

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Speaker 1: when we talk about you know, uh, telemedicine, when we

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Speaker 1: talk about autonomous cars, this is really what can transform that. UM.

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Speaker 1: It's gonna really every industry is going to be transformed,

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Speaker 1: from healthcare to education UM, and and really it's going

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Speaker 1: to foster new industries of the future, from augmented reality

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Speaker 1: to artificial intelligence. When we rolled out the four G technology,

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Speaker 1: we didn't know what we were rolling out. We didn't

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Speaker 1: know that we were going to create a sharing economy

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Speaker 1: and companies like Uber. So while we can see and

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Speaker 1: we're starting to see the real time case scenarios um

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Speaker 1: in certain certain um inventions that we're seeing different entrepreneurs

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Speaker 1: in the five G world, we still don't exactly know

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Speaker 1: what what it will spark and what it will mean

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Speaker 1: to the entire economy. But we do know. We do

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Speaker 1: know it's the platform for tomorrow's economy, and that's that's

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Speaker 1: why every nation wants to lead in five G. One

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Speaker 1: question is, you know, if it is setting out the

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Speaker 1: platform for the new economy, why shouldn't there be sort

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Speaker 1: of some sort of oversight, like the utility kind of

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Speaker 1: structure for this, given that it is something that will

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Speaker 1: be and is already so uh fundamental. Well, that's a

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Speaker 1: good question, and from a farmer regulator's point of view,

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Speaker 1: is certainly something that I have have looked at. But

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Speaker 1: it is the free market policies and it is the

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Speaker 1: innovation of this economy me that moves so quickly that

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Speaker 1: it's very hard for some of oversight like utilities. Um.

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Speaker 1: You know, we people get new phones every two years,

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Speaker 1: the network changes every three months. Um so I think. Um,

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Speaker 1: we in the United States have come to a regulatory

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Speaker 1: perspective that when something goes wrong, we will fix it,

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Speaker 1: but we don't build a house of regulation around something

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Speaker 1: just in case it happens. Understood, Meredith at well Baker,

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Speaker 1: Thank you so much. Meredith as a c t I

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Speaker 1: A president and CEO, a former commissioner at the FCC,

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Speaker 1: I think with some interesting data coming out of the

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Speaker 1: c t I A suggesting that the US is deployment

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Speaker 1: of five g H is not behind those of some

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Speaker 1: of the Asian countries like China and create but in

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Speaker 1: fact maybe closer to you, maybe more on part Thanks

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Speaker 1: for listening to the Bloomberg P and L podcast. You

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00:27:51,119 --> 00:27:53,760
Speaker 1: can subscribe and listen to interviews at Apple Podcasts or

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Speaker 1: whatever podcast platform you prefer. Paul Sweeney, I'm on Twitter

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Speaker 1: at pt Sweeney. Lisa bram Woyds I'm on Twitter at

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Speaker 1: Lisa Abramo. It's one before the podcast. You can always

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Speaker 1: catch us worldwide on Bloomberg Radiom