Speaker 1: Welcome to the Bloomberg Penl Podcast. I'm Paul swing you.
Speaker 1: Along with my co host Lisa Brahma Waits. Each day
Speaker 1: we bring you the most noteworthy and useful interviews for
Speaker 1: you and your money, whether at the grocery store or
Speaker 1: the trading floor. Find a Bloomberg Penl podcast on Apple
Speaker 1: podcast or wherever you listen to podcasts, as well as
Speaker 1: at Bloomberg dot com. We are joined by the one
Speaker 1: and only David Kotalk, Chairman and Chief Investment Officer of
Speaker 1: Cumberland Advisors. H really interesting right now to see bonds
Speaker 1: continuing to rally even as we get better than expected
Speaker 1: data out of China, and there seems to be a
Speaker 1: growing amount of optimism that perhaps Europe is bottoming. And
Speaker 1: I have to wander has the rally gone too far
Speaker 1: too fast? Where are you on that? I think the
Speaker 1: treasury rally in the United States that has flattened the
Speaker 1: yield curve, inverted it. Some people would say you just
Speaker 1: had a previous segment and talking about that, I think
Speaker 1: it's gone too far too fast. And this whole notion,
Speaker 1: now that we have futures pricing of rate cuts, how
Speaker 1: recently did we have futures pricing rate hikes? What makes
Speaker 1: futures pricings gospel? I don't see it, So I think
Speaker 1: we're in our shop. You know, what do you think
Speaker 1: is one thing? What do you do in a portfolio?
Speaker 1: Was another. We are shortening duration, we are favoring the
Speaker 1: front end. We've expanded the shorter maturity side of the barbell.
Speaker 1: We're taking profits in bonds because they've galloped by so
Speaker 1: many points, and we're shifting a portfolio to defense. So
Speaker 1: in the high old market, that's also how to rally?
Speaker 1: Do you see any value there? In which market is
Speaker 1: in high I'm worried about credit. When you spend ten
Speaker 1: years at zero interest rates, you buffer sensitivity, you you
Speaker 1: eliminate this notion that there's credit risk. So you see
Speaker 1: this spreading out a credit risk in spreads and then
Speaker 1: it tightens right back up and people chase yield. And
Speaker 1: chasing yield in the long run is a bad thing
Speaker 1: to do. So in our shop, we're favoring higher grade,
Speaker 1: not how you here's the problem, and this is something
Speaker 1: that I think a lot of people are struggling with.
Speaker 1: There are a lot of signs that were in late
Speaker 1: cycle on every level, whether it's equities, whether it's risk
Speaker 1: assets and credit. And the problem is is that that
Speaker 1: can continue for a long time, right, and this would
Speaker 1: actually be one of the best parts of the whole rally,
Speaker 1: especially if there is no sort of disruptive factor. So, uh,
Speaker 1: your your you look you have consternation. No, I don't.
Speaker 1: I agree with you. A late cycle sweet spot two growth,
Speaker 1: no excesses. It appears low inflation, low interest rates. Uh.
Speaker 1: The markets ignore the geopolitical risk, it's there. They ignore
Speaker 1: the narrative and volatility of politics, it's there. They ignore
Speaker 1: Brexit in the charade we call the UK trying to
Speaker 1: do something. I mean, markets are ignoring us. Well, why
Speaker 1: there's a salve. The salve is constant monetary policy with
Speaker 1: excess liquidity. And now in the United States that's normalizing.
Speaker 1: In Europe they're gonna try in a change of regime
Speaker 1: after drugging, to try to normalize interest rates up to zero.
Speaker 1: So here's the question. Do you have a permanent free
Speaker 1: lunch of infinite liquidity and therefore everything is wonderful all
Speaker 1: the time, or is there some transfer that's taking place
Speaker 1: between those who are borrowing long term at low interest
Speaker 1: rates with some plan or no plan to ever pay
Speaker 1: it back, and those who are trapped in a paradigm.
Speaker 1: An institution, for example, that is forced to buy a
Speaker 1: German government bond with part of its capital by law.
Speaker 1: Is there a trade off and when it happens, we
Speaker 1: don't know. Does it get ugly when it does? Maybe?
Speaker 1: So when you get a massive rally like this, you
Speaker 1: put some of it in the bank. You earn your
Speaker 1: two percent on your cash in America, and you say,
Speaker 1: you know what risk is rising, and I don't know
Speaker 1: when it's gonna bite. So how much cash are you have?
Speaker 1: You increased the allocation too well. In the bond side,
Speaker 1: we're moving to the short duration. In the stock side,
Speaker 1: we run four different types of stock portfolios and they
Speaker 1: are in various positions in cash between fift and the
Speaker 1: high turnover technical quantitative strategy went to a percent cash
Speaker 1: last night last night. Please please elaborate how much was
Speaker 1: it in cash before you sold out of everything. It's
Speaker 1: a binary strategy, so it's either fully invested or it's
Speaker 1: in cash, and it had it's got phasing, its intricate
Speaker 1: math and the final trunch went to cash yesterday. David
Speaker 1: Kotok cash and one of his funds that last night.
Speaker 1: How often does it happen? Well, this strategy can sit
Speaker 1: in cash for months till it has the right kind
Speaker 1: of entry. It's it's quantitative driven. It doesn't have human
Speaker 1: beings making decisions using their emotions. So no matter what
Speaker 1: I think, it's the math that will was the last
Speaker 1: time that it was in all cash um last time
Speaker 1: it was in all cash was last um fall. Sometime
Speaker 1: we had an entry after the summer sell off and
Speaker 1: we went into the v drop in ash. So we
Speaker 1: had a Swan song down and back. Interesting. So so
Speaker 1: it's clear you think the FED has gone too far. Well,
Speaker 1: I think I think the FED was remarkable. The FED
Speaker 1: says we're data driven. The FED says we'll look at
Speaker 1: data and if it changes, will change. And the FED
Speaker 1: has said, okay, we're gonna pause for a while. That's
Speaker 1: what the dots are all about. David Kotak, thank you
Speaker 1: so much. I think we heard this was really interesting,
Speaker 1: so interesting. We've you just never hear that going to
Speaker 1: catch And it's a it's a binary strategy, to be clear,
Speaker 1: which is what David Kodak was saying. But the idea
Speaker 1: that right now things look a little bit overdone, even
Speaker 1: when it comes to someone who doesn't have emotions exactly.
Speaker 1: David Kotok, thank you so much. Thank it's a chairman
Speaker 1: of Chief Investment officer of Complerent Advisors. Always a welcome
Speaker 1: guest here in a Bloomberg Interactive Broker studio. Well, financial
Speaker 1: technology or fintech is one of the hottest areas, not
Speaker 1: only in technology but in financial services, and it is
Speaker 1: impacting companies large and small across the spectrum. To help
Speaker 1: us kind of dig into this issue, this issue, we
Speaker 1: welcome Karen Mills. Karen is a senior Fellow at Harvard
Speaker 1: Business School and she's a former Small Business Administration Administrator
Speaker 1: for President Obama. Uh, Karen, thank you, and welcome to Bloomberg.
Speaker 1: I really want to get a sense of is in
Speaker 1: your book. In the book is entitled Fintech Small Business
Speaker 1: in the American Dream. Is that your contention that financial
Speaker 1: technology is a net positive or net negative for small businesses.
Speaker 1: It's a huge positive for small business. In fact, I
Speaker 1: think we're at a huge inflection point. You know, we
Speaker 1: all talk about AI and fintech um and I think
Speaker 1: one of the places that we're going to see huge
Speaker 1: change is not in driverless cars, but it is in
Speaker 1: small business lending. We're going to see the ability of
Speaker 1: small businesses to have credit at the push of a button.
Speaker 1: And the players in this are not going to be
Speaker 1: just your old community bank. It's going to be Apple
Speaker 1: and Amazon and Square and new fin techs and then
Speaker 1: traditional places like JP Morgan are investing, you know, billions
Speaker 1: of dollars literally in providing new services. So this could
Speaker 1: be the game changer that small businesses need to get
Speaker 1: the products and services that meet their needs. So here's
Speaker 1: my question. We've had peer to peer lending that has
Speaker 1: been going strong and then not so much over the
Speaker 1: number of past number of years, we've had an increase
Speaker 1: in online marketplaces for loans to those small businesses crop up.
Speaker 1: Why have we not yet seen, uh, this sort of
Speaker 1: crossing of the tipping point with respect to how much
Speaker 1: this can help small businesses? And the book I talked
Speaker 1: about the fintech innovation curve and you just described like
Speaker 1: the first phase. In the initial part, we called it
Speaker 1: the wild West. You know, we thought everything was going
Speaker 1: to take off, and then take off was aborted because
Speaker 1: the peer to peer lenders it turned out they weren't
Speaker 1: actually solving that bigger problem. They were making a better
Speaker 1: customer experience, but they were giving people the same product,
Speaker 1: maybe at a higher price. So enter big tech and
Speaker 1: then you've got Amazon and PayPal and Square starting to lend,
Speaker 1: and then people rethought the whole experience. What happened is
Speaker 1: that data technology changed so that you could suck up
Speaker 1: big pools of data through a p I S and
Speaker 1: now the process is going to be radically different. If
Speaker 1: you want to understand what's inside a small business, it's
Speaker 1: very opaque. You know, how do you know this business
Speaker 1: is really making money? How do you figure it out?
Speaker 1: You have some poor banker who spends three months sort
Speaker 1: of figure ing it out and then they say, uh no.
Speaker 1: So what if all of this went into an algorithm
Speaker 1: and the lender could say right away yes or no,
Speaker 1: and the small business could also at the same time
Speaker 1: know what's going on in their business. So I think
Speaker 1: take off. We're just at this inflection point and you're
Speaker 1: going to see that takeoff you were looking for. Well,
Speaker 1: how about if I think about this, the small community
Speaker 1: banks have been to the backbone of lending too small
Speaker 1: businesses across America. Are you getting a sense that some
Speaker 1: of these smaller regional banks have the wherewithal to make
Speaker 1: the investment, to get up the technology, to curve to
Speaker 1: compete against what will be really tech driven lending to
Speaker 1: small businesses. I'm a big fan of small banks and
Speaker 1: community banks, and from my time at s b A
Speaker 1: I saw how important they were to the economy. I
Speaker 1: would not count them out. What I think is going
Speaker 1: to happen, and one of my predictions is that if
Speaker 1: we get the regulation right, data will be open. So
Speaker 1: if you give yourself permission, your permissions, then anybody can
Speaker 1: suck up that data. So the winners will be people
Speaker 1: who can create these platforms, and banks large and small
Speaker 1: they can acquire or use those platforms, and you can
Speaker 1: use your banker for more real advice and counsel rather
Speaker 1: than that sort of grinded out process of the loan.
Speaker 1: So I think you should not count out the community banks.
Speaker 1: They should stick around and wait for the fin techs
Speaker 1: to give them the products they need and just partner
Speaker 1: partner with them in the meantime. Though you did mention
Speaker 1: the behemoths the Amazons of the world, it's really just
Speaker 1: Amazon and Apple, I guess, I guess Google, but I
Speaker 1: haven't really heard them getting in on this, but Amazon
Speaker 1: really stands out to me, especially because so many of
Speaker 1: these small businesses may use the platform to actually sell
Speaker 1: their goods. And I'm just wondering, when you talk about
Speaker 1: sharing this data and allowing uh, you know, potential lenders
Speaker 1: to see into the inner workings of these small business
Speaker 1: is to give more confidence to giving them loans. I
Speaker 1: assume that's what you're talking about with the data. Um,
Speaker 1: Amazon has a tremendous leg up because they can see
Speaker 1: the flows themselves as they lend to their businesses. I mean,
Speaker 1: they could really consolidate this business. No. If Amazon wanted
Speaker 1: to play like in many businesses, they could make a
Speaker 1: huge mark. And they're already doing three billion or so.
Speaker 1: And one of the interesting things with Amazon is are
Speaker 1: they going to make the choice to use their balance
Speaker 1: sheet to really enter this market? So far they haven't.
Speaker 1: And Apple when they came in the market, they partner
Speaker 1: with Goldman Sachs. So I think that data is key
Speaker 1: to the decision making. But if we get more open
Speaker 1: access to data, if you could own the stream of
Speaker 1: information in your bank account and your Amazon flow, and
Speaker 1: you could make it funnel up into a fintech. Then
Speaker 1: that takes away some of their monopoly power. Why haven't
Speaker 1: they used their balance sheet? You know, maybe they have
Speaker 1: too many opportunities. They've got so many things that they're doing.
Speaker 1: I actually they have asked them this question, and I
Speaker 1: know that they are thinking about it, they're working on it.
Speaker 1: But one reason is that small business never seems to
Speaker 1: be the priority. First of all, people look at the
Speaker 1: consumer market, and then small business is like the poor
Speaker 1: cousin that gets the dribs and drabs. One of the
Speaker 1: things I think will happen is that somebody will figure
Speaker 1: out how to make a small business focus bank that
Speaker 1: has different products, different services, and just maybe even a
Speaker 1: vertical bank just for restaurants or just for dry cleaners,
Speaker 1: and that way they have the expertise and I think
Speaker 1: they will clean up. I think that's a way to
Speaker 1: win and invest as more technology comes into banking. Is
Speaker 1: the regulatory framework that we have in this country right
Speaker 1: now set up to really regulate it properly in your opinion? Well,
Speaker 1: the short answer to that is no, and this longer
Speaker 1: answer is absolutely no. The regulatory system in this country
Speaker 1: is what I call spaghetti soup. There are seven regulators
Speaker 1: who oversee small business lending, and in the midst of
Speaker 1: that there's overlapping, there's confusion. A lot of people say, well,
Speaker 1: let's just get rid of all that regulation and then
Speaker 1: everything will flow in community banks will come back. But
Speaker 1: that's actually not the answer. It's not less regulation. It's
Speaker 1: of course smart regulation. That means that the new regulations
Speaker 1: need to think about what's in the black box. Who
Speaker 1: owns the data? What if a small business gets a rejection,
Speaker 1: can they see what went into the algorithm? How are
Speaker 1: you going to figure out if there's a discrimination and
Speaker 1: disparate impact. So I think the regulatory questions get thornier.
Speaker 1: Karen Mills, We love having you on. Thank you for
Speaker 1: being with us. Delighted to be here. Karen Karen Mills
Speaker 1: a Senior Fellow at the Harvard Business School, former small
Speaker 1: Business administrator for President Obama from two thousand nine through two,
Speaker 1: and author, most importantly of a new book, Fintech, Small
Speaker 1: Business and the American Dream dig into some of these questions. Well.
Speaker 1: The news this morning is that black Rock is launching
Speaker 1: a massive overhaul of its leadership to help navigate mounting
Speaker 1: challenges across the asset management industry. From global expansion to
Speaker 1: pressure on fees. To help us dig deeper into this story,
Speaker 1: we welcome Annie Massa and he's a Bloomberg Finance reporter.
Speaker 1: She joins us in our Bloomberg Interactive Brooker studio. Any
Speaker 1: thanks so much for joining us. Why do you think
Speaker 1: black Rock is doing this now? What is really changing
Speaker 1: their business? I think that one of the key themes
Speaker 1: that they're trying to address with this leadership change is
Speaker 1: the desire to grow globally. So they're the world's largest
Speaker 1: asset manager already, but a lot of their revenue is
Speaker 1: focused in the America's region, and Larry think Um black
Speaker 1: Ocksy has made a big point of how he wants
Speaker 1: to keep branching out the business and expand, especially in
Speaker 1: regions like China and um In this UH News this morning,
Speaker 1: Latin America is a big focus as well. So the
Speaker 1: question that I have is how much is this a
Speaker 1: leadership issue with or issue but a bit of positive
Speaker 1: sign that black Rock is being proactive and trying to
Speaker 1: keep its position as the world's biggest asset management and
Speaker 1: how much is this a response and a reflection of
Speaker 1: the challenges in the broader asset management industry. With shrinking
Speaker 1: fees across the board, with the shift to passive and
Speaker 1: just the increased competition. Yeah, asset managers are under a
Speaker 1: lot of pressure. As you mentioned, fee pressure is one
Speaker 1: of the biggest challenges I think, and especially the large
Speaker 1: asset managers have just been locked in this UM grinding
Speaker 1: competition over fees. But I mean one solution to that
Speaker 1: is to develop client relationships in new places and and
Speaker 1: try to take on more clients UM globally. So I
Speaker 1: think that that's part of why they're why they're doing
Speaker 1: this now UM as a way to address UM that
Speaker 1: so is the expectation Annie that as they tried to
Speaker 1: develop new businesses maybe diversified geographically, that we may see
Speaker 1: black Rock, they're already the largest globally, may even get
Speaker 1: try to get bigger via M and A. Definitely UM.
Speaker 1: They've been pursuing UM some deal making globally to to
Speaker 1: try and advance those goals. And one other thing I'll
Speaker 1: add on on the fee side is they're trying to
Speaker 1: grow their alternatives business as well. And so while you
Speaker 1: see this expansion globally, you're also seeing an expansion in
Speaker 1: terms of the types of offerings that they have for clients,
Speaker 1: and the alternatives has has been a big focus for them.
Speaker 1: Let's dig into what alternatives is. Are you talking about
Speaker 1: private equity and distressed dead hedge funds and things like that.
Speaker 1: That's exactly right. So one example that we just reported
Speaker 1: on this week is black Rock has this long term
Speaker 1: private capital vehicle. It's kind of like a private equity
Speaker 1: type vehicle that they announced last year. So they've secured
Speaker 1: their first round of funding for this UM. They didn't
Speaker 1: reach their goals yet. They want to raise as much
Speaker 1: as ten to twelve billion UM for this vehicle. They've
Speaker 1: got about UM two point seven five billion already. What
Speaker 1: does it say that that it's taking longer than they
Speaker 1: had expected to raise the money for this. It's a
Speaker 1: challenging environment and it's not exactly the type of arena
Speaker 1: that you can arrive in and um, you know, just
Speaker 1: take over completely. It won't happen in the blink of
Speaker 1: an eye. UM. So it's taking a bit longer than expected.
Speaker 1: But it shows, I mean, especially with the reorgan today,
Speaker 1: it shows that they've got a lot of focus on
Speaker 1: this and and they're trying to like meaningfully grow UM
Speaker 1: in outside of their gigantic index business. So any does
Speaker 1: is also this management overhaul Today's is also addressed maybe
Speaker 1: succession issue for Larry Fink. Are we kind of setting
Speaker 1: up a two horse race here for to succeed Larry.
Speaker 1: It's it's more than two horses. It's actually a whole stable. UM.
Speaker 1: But today today, specifically, we've got UM a couple a
Speaker 1: couple of the people that have been widely seen as
Speaker 1: in the running. We're in play here, so especially Mark
Speaker 1: McComb UM. They've created a new role for UM of
Speaker 1: Chief Client Officer UM. But there are several people in
Speaker 1: the running. And Larry think has actually said that he
Speaker 1: likes to UM look at management this way instead of
Speaker 1: just having one air apparent, have a whole bunch of
Speaker 1: people in UM, these higher up roles, shuffle them around
Speaker 1: and UM, you know, leadership is kind of about the
Speaker 1: dynamics UM interpersonally that happened there. Does this reorganization include
Speaker 1: further layoffs in addition to the five hundred announced cuts
Speaker 1: that they've already made this year? The cuts that were
Speaker 1: announced earlier this year, UM are all that we know
Speaker 1: of right now. UM, But yeah, it is important to
Speaker 1: note that with the expansion and the reshuffling. Um there
Speaker 1: there were all there were also those massive headcount cuts
Speaker 1: that came early in January. So anyways, this overall black Rock,
Speaker 1: are they how profitable are they right now? I'm trying
Speaker 1: to get a sense of whether this is you know,
Speaker 1: coming from a position of strength or they're just like,
Speaker 1: oh boy, our business is really in trouble. Well, I
Speaker 1: mean they are the world's artist asset manager. They have
Speaker 1: the biggest ETF business in the world. So I wouldn't
Speaker 1: say it would be I think a stretch to say
Speaker 1: that they're um under tons of pressure there, but I
Speaker 1: mean asset management changes all the time. This is a
Speaker 1: business that for thirty years has been you know, growing
Speaker 1: through acquisition and now I think, um, you know, the
Speaker 1: global focus is really important to them, um as they
Speaker 1: try to kind of chart the next um, you know, expansion.
Speaker 1: Annie Massa, thank you so much for joining us. Annie
Speaker 1: Massa covers black Rock and asset management for us here
Speaker 1: at Bloomberg joining us and our Bloomberg Interactive Brokers Studios. Paul,
Speaker 1: we talk a lot about five G and how it
Speaker 1: can transform the entire communications and frankly uh technological landscape.
Speaker 1: Four nations. Certainly the U, S and China have been
Speaker 1: sort of facing off in this battle for five G supremacy.
Speaker 1: Joining US now is Meredith Meredith at Well Baker c
Speaker 1: t I, a president and CEO former Commissioner of the
Speaker 1: f CC. She was appointed by President Barack Obama in
Speaker 1: two thousand nine, serving on the f c C until
Speaker 1: two thousand and eleven. Meredith, thank you so much for
Speaker 1: being with us. So you're saying that you think the
Speaker 1: US has actually started to take the lead with the
Speaker 1: race for five G technology, please explain well, first of all,
Speaker 1: Lisa and Paul, thanks so much for having me. I'm
Speaker 1: pleased to be with you. Guys, Um and um, what
Speaker 1: are our stages is? We're just releasing a paper today
Speaker 1: from Analysis Recun that says that, you know, a year ago,
Speaker 1: China and South Korea led the five G race, but
Speaker 1: the US was close behind, and really because of the
Speaker 1: quick actions of our administration and the FCC and Congress
Speaker 1: were tied in we're tied with China. Overall. US is
Speaker 1: first in private investment, and we're first and high and
Speaker 1: low band availability, but overall we're tied with China. So again,
Speaker 1: what are really the metrics that you define to say
Speaker 1: who's winning or losing, because it's my understanding that not
Speaker 1: only were we be behind China, but we were well
Speaker 1: behind China. Well, the US leads commercial deployments, and we'll
Speaker 1: have twice the number of other nations by the end
Speaker 1: of twenty and remember that China won't have a single
Speaker 1: deployment by the end of the year. We're looking at
Speaker 1: having over ninety deployments. All right. So the reason why
Speaker 1: one reason why we're raising that is because we spoke
Speaker 1: with a couple of weeks ago, we spoke with Susan Crawford,
Speaker 1: who's a Harvard law professor and a former special assistant
Speaker 1: during the Obama invest administration as well. Uh, and she
Speaker 1: just wrote a book saying the coming Tech Revolution and
Speaker 1: why America might miss it, about how the US is
Speaker 1: profoundly behind in five G I'm just wondering, you know, how,
Speaker 1: how could you give us some confidence as you know
Speaker 1: that that that what you're saying is is more accurate. Um, well,
Speaker 1: I mean the metrics of the paper, certainly the investment
Speaker 1: of our companies is um you know, uh, three hundred
Speaker 1: it's gonna add you know, the jobs and the numbers
Speaker 1: that it is going to add to the economy. It's
Speaker 1: three billion dollars. You talked about the the UM what
Speaker 1: is going to bring to you know, all all of
Speaker 1: the United States and our numbers or three and a
Speaker 1: hundred one point eight million new jobs. UM. We look
Speaker 1: at what the companies are investing. And if you look
Speaker 1: at A T and T and Verizon the top investing
Speaker 1: companies in the country, UM, and so what they are
Speaker 1: willing to invest, what they have invested. After the administration
Speaker 1: had tax reform, and after the FCC lowered the barriers
Speaker 1: for entry for citing these new small cells, companies are
Speaker 1: quadrupling the number of small cells that they're installing. So
Speaker 1: I think not only are we looking at as a
Speaker 1: global race, we have a race going on here in
Speaker 1: the United States as to which company is going to
Speaker 1: be first for five G deployments. And um, they're they're
Speaker 1: engaged in a battle. I guess that there's a question
Speaker 1: can the US gained supremacy with five G without the
Speaker 1: government actually financing some of this? Does it have to
Speaker 1: be all driven by corporate spending? Well, the free market
Speaker 1: is policies of what have made the disference in our
Speaker 1: winning four G and I but from every indication that
Speaker 1: we see it's going to make the UM difference in
Speaker 1: five G. So UM, we don't we feel like five G.
Speaker 1: We are on a great path for five G right
Speaker 1: now and we don't need anything except for some more
Speaker 1: midband spectrum, which is the last ask key to the
Speaker 1: piece of the five G puzzle for the carriers. Speaking
Speaker 1: with Meredith at well Baker c t I, a president
Speaker 1: and CEO on five gene and deployment of five G
Speaker 1: in the US. So Meredith, maybe just you know, really
Speaker 1: a basic point here maybe for our listeners is just
Speaker 1: explain why five G is important. Yeah, I think that's
Speaker 1: that's great. To take it up a step. UM, five
Speaker 1: G is the next generation of wireless services. It's going
Speaker 1: to be a hundred times faster, it's going to support
Speaker 1: a hundred times more devices, and it's importantly gonna unlock
Speaker 1: real time applications, meaning that there's no lag time. So
Speaker 1: when we talk about you know, uh, telemedicine, when we
Speaker 1: talk about autonomous cars, this is really what can transform that. UM.
Speaker 1: It's gonna really every industry is going to be transformed,
Speaker 1: from healthcare to education UM, and and really it's going
Speaker 1: to foster new industries of the future, from augmented reality
Speaker 1: to artificial intelligence. When we rolled out the four G technology,
Speaker 1: we didn't know what we were rolling out. We didn't
Speaker 1: know that we were going to create a sharing economy
Speaker 1: and companies like Uber. So while we can see and
Speaker 1: we're starting to see the real time case scenarios um
Speaker 1: in certain certain um inventions that we're seeing different entrepreneurs
Speaker 1: in the five G world, we still don't exactly know
Speaker 1: what what it will spark and what it will mean
Speaker 1: to the entire economy. But we do know. We do
Speaker 1: know it's the platform for tomorrow's economy, and that's that's
Speaker 1: why every nation wants to lead in five G. One
Speaker 1: question is, you know, if it is setting out the
Speaker 1: platform for the new economy, why shouldn't there be sort
Speaker 1: of some sort of oversight, like the utility kind of
Speaker 1: structure for this, given that it is something that will
Speaker 1: be and is already so uh fundamental. Well, that's a
Speaker 1: good question, and from a farmer regulator's point of view,
Speaker 1: is certainly something that I have have looked at. But
Speaker 1: it is the free market policies and it is the
Speaker 1: innovation of this economy me that moves so quickly that
Speaker 1: it's very hard for some of oversight like utilities. Um.
Speaker 1: You know, we people get new phones every two years,
Speaker 1: the network changes every three months. Um so I think. Um,
Speaker 1: we in the United States have come to a regulatory
Speaker 1: perspective that when something goes wrong, we will fix it,
Speaker 1: but we don't build a house of regulation around something
Speaker 1: just in case it happens. Understood, Meredith at well Baker,
Speaker 1: Thank you so much. Meredith as a c t I
Speaker 1: A president and CEO, a former commissioner at the FCC,
Speaker 1: I think with some interesting data coming out of the
Speaker 1: c t I A suggesting that the US is deployment
Speaker 1: of five g H is not behind those of some
Speaker 1: of the Asian countries like China and create but in
Speaker 1: fact maybe closer to you, maybe more on part Thanks
Speaker 1: for listening to the Bloomberg P and L podcast. You
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Speaker 1: at pt Sweeney. Lisa bram Woyds I'm on Twitter at
Speaker 1: Lisa Abramo. It's one before the podcast. You can always
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