tv Bloomberg Technology Bloomberg November 2, 2021 11:00pm-12:00am EDT
announcer: from the heart of where innovation, money and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i'm emily chang in seattle. coming up, the meta-verse will be more than just fun and games. microsoft unveils its version of virtual worlds for business. my exclusive conversation with ceo satya nadella about how
microsoft is building its own path to the future. now that andy jaffe ascended the throne at amazon, adam's allete ski says he is getting started as ceo of amazon web services. where it is always day one. a sneak peek of my upcoming bloomberg studio 1.0 sit down later this hour. and, meta-platforms. yes, the company formally known as facebook will shutdown the use of facial recognition technology on the facebook network. this is the same tech that alerts users when photos they are in are uploaded, enabling them to tag themselves. does it signal a new stance for the newly named company on privacy? we will discuss. all that in a moment. first let's get a look at the markets. the relentless rally of stocks pushing major u.s. benchmarks to their all-time highs, with investors bracing for a key decision from the fed. our ed ludlow is joining us now with more. what role with -- will tech play
today? ed: tech is the better performing group. i am focusing on the nasdaq 100. up for a seventh consecutive day, matching the gains we saw in june. but the strength wasn't universal. there were pockets of tech that did suffer on tuesday. namely make a cap tech stocks. -- mega cap tech stocks. one company down by around 1%. the biggest drop in around 10 days. we know there is a big federal reserve decision coming on wednesday, regardless of what the fed says or does. there is a perception in the market that rates will stay lower for longer and that will be good for stocks. the u.s. 10 year yield softer by a couple of basis points. bitcoin is fluttering around $63,000 at the moment. it had a strong day tuesday at its highest level in two weeks. emily, you are in seattle, it has been absolutely bonkers today. bonkers in the world of electric vehicles and car rental companies. started off with tesla. tesla is down 3%. elon musk tweeting there is no contract yet signed with hertz. hertz issuing a statement to
bloomberg saying, we are already taking delivery of some of them. the stock dropping, then rebounding, closing up 2.6%. you are not even listening to me speak because avis is closing up 108%. one point higher by 218% following earnings. comments from the cfo about their future and electric vehicles, and then being on the meme platform wallstreetbets on reddit. a lot to take in. we will talk about it later in the show. specific stock movers in the tech space, starting with meta. as you said, the company announcing it won't use facial recognition on the facebook platform when it comes to photos and videos. netflix up by 0.5%. it is launching into video games, five new titles for android platforms only. microsoft, one of the better performing mega cap tech stocks,
giving its version of the meta-verse, and you will dig into that right now. emily: thanks for holding down the fort in san francisco. if you are worried the metaverse will be all fun and games, it -- fear not, microsoft's version will have powerpoint and excel. at its ignite conference, the company introduced more than 90 new services and updates at the core of the new announcements, a commitment to exploring breakthrough ways of connecting people, companies, and ideas. i sat down with microsoft's ceo, satya nadella, in an exclusive interview to talk about his own visit to the metaverse and how it could change the future of work. satya: whenever i think about the metaverse, it comes down to bringing the real world people, places and things to the digital world. for us, in fact -- and this is happening both in the consumer space, and in the commercial space. seven years ago was when we
launched holo lens. we talked about the gaming applications of it and the enterprise applications of it. the pandemic has made the commercial use cases much more mainstream, even though the consumer stuff feels like science fiction. i was able to go with it, the -- able to go visit the nhs hospital in the u.k. and do a virtual visit of the covid wards. i was able to go to the toyota manufacturing plant into a remote site, and even the space station. i think the ability to be able to have the malleability of digital really help brings things together. the real world and the digital world merge is what's happening. in fact, the two announcements we are making speak to it. we have dynamic 365 connected spaces, which brings the metaverse capability to a hospital, to retail or manufacturing line, and then we are bringing mesh meetings to teams.
these are two great real examples of what one can do in the metaverse today. emily: has your avatar joined teams and meetings, and what's that like? satya: we will have the avatars. we have avatars on xbox. i have a satya avatar with my tag and xbox. it's going to be the same avatar that i can now use with the microsoft account or the directory, and join a meeting. the thing about avatars is, if you think about you have your real presence in video today, you will also have your holographic presence, and the avatars are in the middle. i think there is a place for it. it is all about creating more presence, more human connection, giving all the options for people to be able to participate in the communities they are most interested in. emily: i know you are focused on business use cases, but obviously you have xbox. shouldn't we expect this to expand into xbox, gaming,
and to entertainment and consumers more broadly? satya: absolutely. the way we think about it, we are a platform company. we always build the core intrinsics first, then we build it into our own first party application. you can expect us to do things in gaming. you can think about, if you take halo as a game, it is a metaverse. minecraft is a metavers. -- is a meta-verse. in some sense it's 2d, and the question is, can you take that to a full 3d world? we absolutely plan to do so. more importantly, to your point, we will exercise this even in the enterprise space. whether it is mesh meetings in teams or the dynamics connected spaces. the thing for me to get right, get all the intrinsics. whether it's the mesh platforms for true mixed reality meta-verse applications, or the digital twins that people are creating of factories and
hospitals so that they can simulate and predict all of these intrinsics that will be what is built into azure as any other platform service. emily: you are working with a number of partners, including facebook, which just unveiled its version of the metaverse. what do you think of their take? what do you think of their approach? satya: first of all, we love the fact that there is so much innovation going in. whether it is from facebook or others who will enter the space, i hope that this is the next big thing that happens after the mobile internet. we will make sure, for example, all space vr runs as the most popular metaverse applications on oculus. we would like to continue to make sure that our best applications on the best platform work mesh applications. we don't want anybody who builds using mesh -- we want to make sure they can run those on oculus and holo lens.
emily: given how much facebook has struggled with hate, misinformation, violence and a loss of public trust, what kind of accountability do you want to see them with current and future products for billions of people, including the metaverse, potentially children? satya: to me, i can talk about what we are doing, whether it is the communities on xbox or linkedin, or any other place, or minecraft. one of the things that we have to really make sure is in the product making ethos, we build in the community safety and context to why we are building what we are building. in gaming, it is the joy of gaming. if any communication and community behavior gets in the way of joy of gaming, we have to exercise the editorial context. same thing with linkedin. linkedin is about helping people find economic opportunity.
that's what the platform should goal seek to. same with github, with any other property we build. i think that's what we are all try to make sure, while we build in through privacy, whether child safety, whether it is misinformation, or the decency and humanity that is required for proper discourse that allows us to have a product, and a platform that thrives going forward. emily: how do you keep this technology feeling comfortable rather than creepy? and how much time do you imagine -- how much of our days what we want to and will spend in the metaverse? satya: i think we are in the early days when we think about consumer scenarios. that is why it feels science fiction, or to use your words, creepy. but there is nothing about visiting a covid ward remotely for a doctor to be able to help their patients, or to be able to
do remote assistance in a manufacturing line in a time of covid crisis when the manufacturing line needs to be fixed by an engineer working from home. i think what we will do is really use these technologies as just the next shift for an increasingly digitized world. but we will use it only when it matches our expectations of why the technology benefits us. and we won't do anything that we feel is just not the way we want to show up, whether it is in our consumer life or our commercial life. emily: can you put a number on it? how big in dollar terms will this be for microsoft business? nñgvp>■w approached these platform shifts, whether it's the cloud, or ai or what have you, to me, all of these things are absolute secular shifts. everything. for me, teams of the future will include metaverse capabilities. dynamics of the future will include metaverse capabilities.
some of the most popular platform services on azure will hopefully be the metaverse platform services. it will come gradually in the first, and then it will happen all of a sudden. that's why trying to predict tans for platform shift is the hardest thing for us to do. but at the same time, i think really knowing that these things are not just going to happen, or they will happen more gradually in this way, that's what we will stay focused on. emily: is there a "when" you can put on it? when will we see microsoft's metaverse enabling businesses, retailers, manufacturers to connect with customers? satya: the most exciting thing is these two announcements at our ignite conference this week, where dynamic 365 connected spaces is available for retailers to take any space of theirs or for manufacturers to have digital twins, and these
mesh meetings that coming to teams is a place where anybody can join. accenture will talk about how they are building what they call the end flow on teams mesh meetings. we are very excited about some of the things that are available today. emily: i've got to ask you about the supply chain. we are heading into the holidays. you have xbox and visibility into the supply chain more broadly. what challenges are you seeing? how bad is it? satya: one of the things i think a lot about is in a world of constraint, whether it's labor shortages or supply chain constraints, the one thing we are seeing is increasing use of digital tech. if you think about it, digital technology can ask as a deflationary force in an inflationary economy. one of the announcements at our conference is something called teams connect. it allows people to collaborate across businesses. if you think about supply chain, one of the fundamental issues as
-- issues is visibility, not just to suppliers, but your supplier's supplier. the thing that you have is spreadsheets and documents flowing between businesses. but what we want to do is enable the next generation of collaboration between businesses using things like teams connect. i think supply constraints will be there with us for a while, but i think any individual company can deal with them by making sure they are able to collaborate better in being able to sense demand and supply. i think that will become the new currency. any company or industry that does a better job to connect the two sides in real-time is going to recover faster. emily: our exclusive interview with microsoft ceo, satya nadella. meantime, amazon is looking to add office space in the new york area. the e-commerce giant is close to a deal for roughly 400 thousand
square feet of space on the jersey city waterfront. amazon is said to be targeting a building called harborside one. amazon has been expanding in new york despite the collapse of its plan to build a second headquarters in queens in 2019. coming up, we will be speaking with a ceo about the future of cloud networking after strong third-quarter earnings in spite of the chip shortage. he joins us next. -- jayshree ullal joins us next. this is bloomberg. ♪
the cloud networking equipment maker has a bullish forecast for next year. it connects some of the biggest names in tech from microsoft to facebook, google, amazon and netflix. joining me now is the arista networks ceo. good to have you with us. arista has been going through a huge growth spurt. is this something longer-term? >> i hope it is both. we had our share of issues during the pandemic, where many of the lounge cloud titans restricted their spending. now they are building for the future. we are seeing not only the post-covid tear, but we expect to see multiyear growth. emily: everyone is struggling with access to components, especially chips. in your long career, from cisco to arista, how bad is it
relatively? how have you been able to execute despite this? jayshree: it's pretty bad. i know it is fashionable to be in the software business, but all software has to run on chips and hardware. i think it starts from the premise that when the pandemic hit, not enough people planned for capacity. there were shortages in circuit boards, in steel and copper, in integrated circuits, in substrates and wafers, freight and labor, every aspect of the supply chain has been affected. it is the worst i have seen of my career. what makes you tougher is to deal with it and plan ahead. arista has made some significant investments into the inventory purchases for the long-term. we used to to have more of a real-time bill to customer order and forecast. now we are building to invest.
we have changed our mindset completely. emily: on that note, you talked about paying more upfront. is that the new normal, just what it will take to get business done going forward? jayshree: it's a fact of life. it is a new normal for at least the next couple years. i don't see any relief in sight until the end of 2022, may be later. you have to accept the way the world is. emily: cisco under chuck robbins has talked about networking, being more open which has been arista's huge selling point. kennett transition for cisco -- can that transition for cisco be a threat to arista? jayshree: arista has always been committed to building some of the most innovative cloud networks. yesterday we announced another giant leap forward with groundbreaking architecture called network data link,
coupled with the right autonomous virtual assistant, brings proactive networks. we are upping the ante. we are not just building open networking, but we have an ecosystem of partners, everywhere from microsoft to zoom to slack, vmware, who have all committed to working with our data platform. not only is that system open, but it is also multi vendor. it is very transformational. emily: arista is targeting cisco'síie= business, corporated government sales of networking gear. you set very aggressive growth targets here. how will you take on cisco's reach in this more traditional, conservative, less technologically savvy market? jayshree: i think the two companies will coexist in traditional markets. arista is focused on the modern cloud networking markets. we don't have to take the reach
of cisco, we just have to reach all the most important relevant customers that we have and build upon our strengths. we look to do that from the client to the multi-cloud. we built a unique architecture where we have the power of one, one operating system, one management platform, one ecosystem of partners with the same consistent software image. our innovation is different. our approach is different and highly software driven. at the same time, we can reduce the operation time from months to years in real-time. customers appreciate that they don't have to have manual operations, can do all this in an innovative fashion. different strokes for different folks. emily: we are waiting a key decision from the fed. i'm curious on your thoughts on how inflation is impacting the business.
how are you impacted by increased shipping costs and dealing with these supply chain challenges? jayshree: that is no fun, emily. it is increasing cost, increasing expedite. we were trying to hold our costs for the last six months, really absorb the cost ourselves. at some point, the costs were just escalating. yesterday i announced we had no choice but to increase our prices by approximately 10% starting november 4. we will be transferring some of that cost and hope to bring cost reductions back in the next year or two. we have to deal with the reality of how it is. increasing costs will translate into short-term price increases. emily: i appreciate you sharing that reality with us. we will be watching to see if this growth spurt is longer-term, as you hope. the ceo of arista networks, great to have you on the show.
emily: a few other stories we continue to watch. shares of zillow falling the most since march. this afternoon is that the company plans to offload 7000 homes. it pulls back from the home flipping business. bank of america calling this a clear negative. zillow is trying to recover after buying too many houses initially. now, many will be listed for less than the company paid. coming up, an exclusive interview with the ceo of amazon web services.
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emily: welcome back to "bloomberg technology." i'm emily chang in seattle. earlier this year, a historic changing of the guard took place in this very town. jeff bezos stepped down as amazon ceo, andy jassy stepped up and adam selipsky became the new ceo of amazon web services. he has a long and storied history with aws, stretching all the way back to the early days before it officially debuted in 2006 and became the world's first market leader cloud computing. i sat down exclusive with him
-- exclusively with him for bloomberg studio 1.0 to talk about what it was like getting the call to join aws back when it was in stealth mode. adam: it was very secret. it was hard. the company did not want to talk too much about it. we had to talk a certain amount about it. so the call i got when something like, we have this initiative to turn the guts of amazon inside out and expose it to other people. it sounded intriguing, though i did not understand what it was all about. i started talking to andy and the other senior leaders, and eventually to jeff. i would have to say that by the time i took the job, i mostly understand what they are talking about and it sounds like a good idea and i'm in. but i also was like, we just have to see how it goes. amazon is a big place. and so, i think we got a lot of intent to succeed, and that's the thing that impressed me, amazon really had the desire,
intent and belief that this could be a good business. emily: you are there, aws comes out of stealth mode and is the first to market with a cloud infrastructure service in 2006. how important was that first start, and do you think aws still has an advantage today because of that? adam: i think the time to market advantage that we had, which was probably five to seven years, head start before other companies started to take this seriously, frankly, it was one of the biggest things that happened to us in the early years. at the beginning, a lot of people did not get it. i would get asked a lot in 2006, what does this have to do with selling books? i had a slide with a pile of books on it and a question mark next to it and the answer was, it has nothing to do with selling books, but the technology which enables us to sell books, being global and at a massive scale, secure and low
cost, being highly performative, all of that technology has everything to do with offering these services externally. that was really the promise and reason why we built aws. so, at the beginning, all of the old guard technology companies, first they said, what is the cloud, and if there were a cloud, why would amazon be involved with it? and they said it's fine for small companies, no big company would use it. then they said big companies would use it but not for important work loads, and big companies are using it a8g9u■
list of reference to customers. emily: aws is in a scrappy start -- is not a scrappy start up anymore and you do have big rivals, even though aws has been the leader. microsoft and google are big rivals. how do you make sure that being big doesn't slow you down? adam: it is a gory question, because we are currently the leader. depending on which third-party you look at, we are a little more than twice as big as number two. it is really important to act as if we are insurgents and not act like incumbents. i like to talk about managing the business. we want our senior leaders to be managing project and customers. as you get bigger and put more liars into your company, it is
all too frequent that you start managing math, ratios, percentages and growth. it is a real disease if you stray away from focusing on the products you are building and in a deep way what your customers are telling you. we try and organize with our work structure on really making sure that everyone is thinking about product and customers. if you keep the most senior level leaders engaged, you maintain the urgency and keep acting like an insurgent. we are way too early into the cloud journey to slow down. our customers need us to go fast and have all sorts of things they are banging on the door for us to do. we have to feel that urgency every day. emily: so keep acting like an insurgent. that is the motto. adam: absolutely, and structure yourself and build a company that allows you. it's easy to say it, but it's much harder to put in place the mechanisms that enable you to do so, and we focus on those
mechanisms. emily: amazon web services ceo, adam selipsky. you can stay tuned for the full conversation on bloomberg studio 1.0. deal or no deal? an elon musk tweet and an 218% stock jump. it has been a crazy tuesday in the world of electric vehicles and rental cars. we will unpack it all, next. as we head to break, let's take a look at lyft shares. up in late trading after reporting third-quarter revenue. 73% higher than last year, 73% higher than last¤kcooç;ç/■ñ9 conditions. this is bloomberg. ♪
emily: shares of tesla dropped after a tweet from, you guessed it, elon musk. musk climbed "no -- claimed "no contract had been signed yet after hertz announced it secured a deal for 100,000 teslas." hertz told bloomberg after the tweet that the company had already started to receive cars for the tesla. it's biggest rival surged as much as 218% today. here to unravel it all, ed ludlow. deal or no deal? was there a deal or not? ed: elon musk's tweet was specific, and he was trying to get across that the deal with hertz, that they have announced formally, does not give them preferential treatment in terms of pricing for the model 3.
it does not give them any special volume discount. if you go to tesla.com now and try to order a model 3 or model y, there is a big wait time. tesla's supply constraint, that's why they are so desperate to bring the factory online in germany and austin, texas. people are waiting. demand is not a problem for this company. emily: what is elon trying to get across? ed: it's very hard to know. i think the issue with elon musk is he communicate so often with retail investors through twitter. he committed gates with tesla owners. the tesla owner has been a big part of the story for tesla's growth, they don't spend on direct advertising. there are a lot of people who tweeted in response to the hertz deal when bloomberg broke the story initially, hold on, i have been waiting three months for my car. why is hertz getting one ahead of me? it's a significant deal. it's strange to think elon would push back against it because
it is the one thing to date tesla has not had, a big fleet deal with a major operator like hertz. emily: speaking of another major rental operator, avis shares are up more than 200%. what's driving that? ed: i have no idea, emily. it has been incredible on tuesday. one of the things is avis has not been a stock we have seen mentioned in the mean trade. but if you went on stocktwits on tuesday, you went on wallstreet bets, you would see the name mentioned highly. it comes back to electric vehicles. during the earnings call, avis did beat on the top and bottom line. you would not expect to see the share price jump 218%, that's insane. but they talked about that they too will buy electric vehicles for their car rental fleet, but they kind of threw some shade at hertz saying, we are not quite ready yet. once we have executed, you will hear a plan. that got people talking and that stock surge is incredible. emily: ed, thanks for trying to
unravel the musk mystery of the day. our ed ludlow. meantime, meta platform, parent company facebook, is closing down its facial recognition function. this comes after safety and privacy concerns continue to pile up on the social media giant. let's see if this will help with their reputation. here to discuss is bloomberg's own kurt wagner. this is the technology that would enable or alert users if a photo of he was uploaded. they could decide whether or not to tag themselves. facebook has been backing away from the future over the last couple of years. what's actually happening now? kurt: they are going to shut down their entire facial recognition software program here. so, as you pointed out, this was really big, especially in the early days of facebook, youv would upload a photo, tag other people in it, they would be alerted. they would probably want to share it themselves or comment on it.
it was a great way for facebook. it also became a way for you to understand what are people uploading about me. did your friend upload this photo from you at the bar, you want to know about that. facebook will give you a heads up. as you pointed out, they have not -- they have been walking away from this the past couple of years because it has privacy concerns and facebook is not a company that has a great privacy reputation. i think it's a big deal they are moving away from this altogether, but it's not totally shocking that they would want to move in this direction. that's the way the industry is moving. emily: they also called out others in the industry and referenced this technology being widely used in other ways. certainly, other big tech companies have a history with this technology as well. does this signal facebook or meta trying to convey a new stance on privacy as part of a new era for the company with a new name going forward, or is
this because of a fundamental belief? kurt: i do think there is some element to this that has to be about this new company, this new meta platforms. and here's how we are taking privacy seriously. you mentioned other companies, amazon, google, microsoft. amazon was selling their technology to law enforcement, which created issues. they paused that a few years ago. i think this is a way for facebook -- meta, to put pressure on others in the industry, probably try to get ahead of potential regulation. we have seen some lawmakers in the u.s. especially say we need laws, we need rules around how this technology works. this is facebook getting out of the game on the earlier side so that when there are these laws, when there are rules that come about, they are not necessarily reacting in the same way their competitors will have to. emily: the company says they
will delete one billion facial templates. how can we be sure that that information will actually be deleted? kurt: it is such a great question. i tweeted about this story, and all the replies were essentially, ok, haha, sure thing, facebook. it goes to show you how little faith there is that the company that will make a big public announcement like this will follow through on it. we will have to expect them to essentially open this up and maybe let someone come and audit that. but you are putting a lot of trust in facebook. they are saying they will continue to build this type of technology, so while they get rid of the templates, they aren't getting rid of the technology itself altogether, which might give them wiggle room. at the same time, it should be a terrible thing for facebook to do to say very clearly, we are getting rid of this, and then not do it. i would hope this is not an issue we have to cross, but the fact that people think it might be tells you a lot about what
they think of facebook. emily: you've got so many facebook, now meta, sources. i'm curious with employees, what the transition has been like for them and what do they think of this big evolution? kurt: i think there are a lot of people who saw this coming from a product standpoint. mark zuckerberg has been talking about the metaverse for a long time. it's clear that this is a priority for them. in terms of the direction facebook is going, that makes sense to people. i think the branding itself is still a little bit of a head scratcher. you think about working at a company for 10, 15 years, and suddenly it's a totally new branded thing, yet your flagship product is still called facebook. i think this will take some getting used to, but again, i think the vision that facebook,
or now meta is trying to portray is something we heard from mark for a while now. that is probably less surprising than the branding part itself. emily: i wonder if at some point the flagship product isn't facebook. since meta made this big announcement, you have seen nvidia and microsoft today in announcing their view of the metaverse. this is not something other companies will let facebook own. epic games as well. how much competition will there be from meta to own the metaverse? kurt: a ton. what is interesting about this is, in a weird way, the metaverse will only work if these companies actually buy into the same idea. if everyone is creating their own version, that's not a metaverse. facebook has been saying that's just a bunch of universes. so while everyone is competing for this, they still have to
work together for this to be an experience where you can jump from facebook to roblox to twitter, whatever it may be. and i'm still not convinced that the companies are necessarily going to work together that way. but that is ultimately the biggest question. facebook can talk about the metaverse all it wants, but it -- if it only becomes a general world for only facebook, that is only -- digital world for only facebook, that is not valuable. it has to be something where you jump from facebook to other experiences and it will require other companies to play ball. emily: bloomberg's kurt wagner, thank you for your reporting. t-mobile posted its third quarter results. another surge in subscribers. i am joined live by the ceo. take a look at activision blizzard tumbling. the videogame publisher facing lawsuits over sex discrimination and harassment. now delaying two of its most anticipated games and giving a fourth-quarter forecast that fell short of expectations.
mark: after feeling only moderate effects from the global chip shortage and staying above the fray for the last several months, the chip shortage has now crashed hard into apple. during its fourth-quarter earnings results call, apple ceo tim cook said had it not been for the global chip shortage, apple would've generated a whopping additional $6 billion in revenue. that is about an additional half of income it gets from the macro ipad. the issues come for a ceo and a
company that has touted itself a group of supply chain maestros. in their defense, apple says there is not any fundamental flaw in the supply chain strategy and it's doing everything it can in its power to mitigate the problem. still, it has not been good enough. apple's online store and retail stores are essentially dried up of new iphones, ipads, macbook roads, apple watches and other new devices. apple's online retail store is quoting shipment time frames well into december for the company's most popular new devices. unfortunately, the problem will continue. while cook said apple's product quarter will be a all-time record, we will still see a greater than $6 billion negative revenue hit in q1 from the chip shortage. i'm mark gurman. emily: don't forget to sign up for mark's power on newsletter. as cop26 is taking place in glasgow, a lot of expectations about what finance can do to support the green transition.
my colleague francine lacqua spoke with bank of america's ceo, brian moynihan. brian: this is the transition we have to make as a consumer, as a company, everything you do, everything goes around. there is a lot of pressure on banks because our clients and investors are demanding this. the politicians of the worlds are demanding this. if you think about it in the context of the sdg's, in 2015, the united nations, all the countries said we want this to happen, and now we have to implement it. francine: when you look at what wall street and banks in general can do, could you stop lending to businesses that pollute too much? brian: to help everybody make a transition, all clients have to make a transition. some extract minerals and some extract fossil fuels. they are all making those commitments. our job as a financial institution is to assess them on a risk basis. here is my plan, here's where i will go. it is hard for them. it is easy for a services firm
to say i will be zero, but it is hard for them. we have to help them make that transition. they need capital to deploy. their plans, declarations, many are saying we will do this by this year and then we can be part of the measurement system because, as we underwrite them, one of the risks for underwriting is do they have a plan that meets the standards that the world wants them to have? if they don't, they will have a problem financially down the road. francine: what is the biggest opportunity for banks? brian: we did $80 billion in financing last year. it's a business. we have tax credits. we disclose the difference between our pay rate is for wind, solar and loan moderate income housing. there is a lot of opportunities to make money doing this. and then the concessional capital we do, and the chair little -- the charitable work and everything in between. the thing that's hard is this transition happens when we all mtf"ñ8e8eç
francine: are you disappointed you don't have more commitment? brian: no, governments can work a lot of ways. simple mandates, there's a lot of things to do. they are seeing that, as the private sector is pushing them -- before they were pushing the private sector. you had to disclose, but now it is them pushing them. you have to take the political risk away, take away some of the duration risk, some of the currency risk and you can unlock all this capital. emily: we will have much more coming from cop 26 throughout the week on bloomberg television. francine lacqua with brian moynihan. the ceo of bank of america. that does it for this edition of "bloomberg technology" from seattle. make sure you tune in tomorrow. i will be back in san francisco. we will be live with a ceo as the company goes public. plus, a conversation with the lyft president off the company's
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