Latest / Bloomberg Intelligence / Travel Ban Puts $1 Billion of Tourism at Risk, Mayor Walsh Says

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Travel Ban Puts $1 Billion of Tourism at Risk, Mayor Walsh Says · Bloomberg Intelligence

• 0:04
  Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm Pim Fox.
• 0:08
  Speaker 1: Along with my co host Lisa Abramowitz. Each day we
• 0:11
  Speaker 1: bring you the most important, noteworthy, and useful interviews for
• 0:14
  Speaker 1: you and your money, whether at the grocery store or
• 0:16
  Speaker 1: the trading floor. Find the Bloomberg P L Podcast on iTunes,
• 0:20
  Speaker 1: SoundCloud and at Bloomberg dot com. Here to tell us
• 0:29
  Speaker 1: about Boston is Marty Walsh. He is the Mayor of Boston.
• 0:34
  Speaker 1: Mayor Walsh, thanks very much for being with us. Well,
• 0:36
  Speaker 1: thank you very much for having me. And I want
• 0:38
  Speaker 1: to begin by thanking Bilberg and Advanced for that for
• 0:43
  Speaker 1: for their involvement in the Pop celebration. And uh it's
• 0:46
  Speaker 1: an exciting celebration watched all over the country and people
• 0:49
  Speaker 1: love the Fourth of July celebrations hearing Boston in our city. UH,
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  Speaker 1: and we have two great partners now knowing that these
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  Speaker 1: Pops celebrations will go on for the next several years
• 0:59
  Speaker 1: and beyond that. Yeah, you know you've had a busy
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  Speaker 1: day to day, Mayor. We also saw that today you
• 1:04
  Speaker 1: announced a major infrastructure plan to improve the way people
• 1:09
  Speaker 1: get around here, including UH significant investment in UH commercial
• 1:15
  Speaker 1: public transportation, can you tell us a little bit about that. Yeah,
• 1:18
  Speaker 1: I'm actually all my way to do it right now,
• 1:20
  Speaker 1: so they're always the press is waiting for me. But uh, yeah,
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  Speaker 1: we're gonna be launching Vision UM Imagine Boston. Uh. It's
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  Speaker 1: a visioning plan for transportation the city of Boston. It
• 1:32
  Speaker 1: really basically technical name is god Boston twenty thirty Vision
• 1:36
  Speaker 1: and the Action Plan. It really is about talking about
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  Speaker 1: long term making our streets safer, making travel more reliable
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  Speaker 1: and predictable, investing in long term inequalities to make it
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  Speaker 1: easier for people to get to work, a school, and
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  Speaker 1: get around the city. Uh. Making a city more resilient
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  Speaker 1: to the effects of climate change. Uh. And it's a
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  Speaker 1: roadmap for our transportation goals. And when you think about
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  Speaker 1: our city, in the last three years, population has grown
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  Speaker 1: by over thirty dogs and people. We have created uh
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  Speaker 1: sixty We've we've created sixty new jobs just in three
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  Speaker 1: year periods. And if we continue this growth, um, you know,
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  Speaker 1: we're going to continue traffic and continue people coming into
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  Speaker 1: the city. And it really is a player roadmap and
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  Speaker 1: working with the community through a community public engaging process.
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  Speaker 1: And it's the first city wide plan in a long time,
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  Speaker 1: over fifty years. It was part of our match in Boston,
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  Speaker 1: and we've had over Letia's residents and submittedas So this
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  Speaker 1: plan is based off of input we received from the public.
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  Speaker 1: Mayor Walsh, I'm going to conflate a couple of words,
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  Speaker 1: and I want your expert experience response immigration, tourism, sanctuary cities,
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  Speaker 1: and federal aid. So i'll tie it in together. Um,
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  Speaker 1: you know the actions of the President over the last
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  Speaker 1: month or so. UM. There's a lot of different ways
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  Speaker 1: of looking at it. We can look at it as
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  Speaker 1: a human human aspect of it, with people being fearful
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  Speaker 1: in cities across America. We can look at it as
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  Speaker 1: an economic issue. But I'll just say this one. One
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  Speaker 1: wants that Boston is uh the recipient of a billion
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  Speaker 1: dollar international tourism industry every single year. UM. And there's
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  Speaker 1: no way that the actions of even though they're geared
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  Speaker 1: towards six different countries, that other people aren't looking at
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  Speaker 1: the potential of not coming to United States for holidays.
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  Speaker 1: That's a problem when you think of investment and sorry,
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  Speaker 1: in high tech, we have high tech companies that can't
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  Speaker 1: get employees employees here. UH, they're looking at and have
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  Speaker 1: discussed looking at other opportunities like Canada and keeping their
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  Speaker 1: offices in Boston. But the workforce in Canada places like that,
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  Speaker 1: that's all these problems in our hospitals. We have doctors
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  Speaker 1: and researchers and scientists and medical staff that potentially can't
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  Speaker 1: get here. It all. You know, there's two ways, the
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  Speaker 1: fair aspect then and the human being aspect of it,
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  Speaker 1: and then the economic impact after it. Well, Mayor Walsh,
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  Speaker 1: how concerned are you that the federal government will restrict
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  Speaker 1: financing to the City of Boston as a result to
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  Speaker 1: your pledge to remain a sanctuary city despite some of
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  Speaker 1: the rhetoric that we've heard from President Trump. I mean again,
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  Speaker 1: I think we're protected. Most of our dollars are protected
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  Speaker 1: by the Constitution, so that they can't refuse to give
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  Speaker 1: us money just because of our position on immigration. But
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  Speaker 1: but the fact that those conversations have happened. When you
• 4:27
  Speaker 1: look at Boston, when you look at New York, when
• 4:30
  Speaker 1: you look at l A, Chicago, we go up and
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  Speaker 1: down the East Coast, up and down the West coast,
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  Speaker 1: across the country. Many of many of our major cities
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  Speaker 1: that are in the same situation as Boston are the
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  Speaker 1: economic drivers of the economy. Um. And if the federal
• 4:44
  Speaker 1: government was going to take irresponsible move by by counting
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  Speaker 1: back on federal money and affecting these these job hubs,
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  Speaker 1: job generators, it would do significant damage to our economy.
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  Speaker 1: So again, you know, we get about five humillion dollars
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  Speaker 1: a year and try to aid whether it's through housing
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  Speaker 1: vouchers or housing programs, or education programs, of public safety programs. Um.
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  Speaker 1: That money that that that there that they that comes
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  Speaker 1: into our city is generated in our city by our
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  Speaker 1: tax base. So I think it would be Uh, it's
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  Speaker 1: not a well thought out threat, if you will, by
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  Speaker 1: by just threatening cities and towns around America. May welsh,
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  Speaker 1: I beg your pardon. You are the progeny, you're the
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  Speaker 1: son of immigrants from Dorchester. Uh. Speak a little bit
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  Speaker 1: about what you're doing that others may learn from having
• 5:38
  Speaker 1: to do with homelessness, housing and education, well, homelessness, that
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  Speaker 1: we're doing a lot in homeless and homeless area with
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  Speaker 1: housing Boston a hundred thousands, sorry for one thousand and
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  Speaker 1: fifty six chronically homeless folks, eight hundred natives of veterans.
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  Speaker 1: We we we ended chronic veterans homelessness in the City
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  Speaker 1: of Boston in two thousand and fifteen, and we have
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  Speaker 1: a system in place now if you're if you're a
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  Speaker 1: homeless that and you want to get pet housing. Uh,
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  Speaker 1: you know, wait is about six months. We have a
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  Speaker 1: program in place now working with providers, you know, moving
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  Speaker 1: forward homelessness and housing in veterans homeless program was still
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  Speaker 1: working in chronic restromans, chronic homelessness if you go chronic
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  Speaker 1: homelessness in Boston by the two thousand and eighteen at
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  Speaker 1: the end of next year. Uh, and well, we're well
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  Speaker 1: on our way of doing that, and we're working on
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  Speaker 1: a better system of care so that we have opportunities
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  Speaker 1: to get people when when they come into when they
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  Speaker 1: get down in the lock and they become homeless. We're
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  Speaker 1: working on systems to get them back on their feet.
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  Speaker 1: And jobs. Part of that shot job training. Part of
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  Speaker 1: that through opportunities which are working through through job training. Uh.
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  Speaker 1: So that that all ties in. It's not just almost
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  Speaker 1: person that's that's looking for employment. It's also people that
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  Speaker 1: are not homeless that are looking for employment. Retraining people
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  Speaker 1: and not just a training program that you know, you
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  Speaker 1: go through a program for six weeks and all of
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  Speaker 1: a sudden you here to certificate at the end of it.
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  Speaker 1: We will we will trying to strengthen some of these
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  Speaker 1: programs that at the end of the training program that
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  Speaker 1: they actually have a job, and we're working with employers
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  Speaker 1: to do that. Uh. The other reasure I think you
• 7:01
  Speaker 1: brought up with education. Um, you know, we launched a
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  Speaker 1: program here called bill PPS to reconstruct our schools and
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  Speaker 1: the city of Boston. We're playing on doing a billion
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  Speaker 1: dollar investment over the next ten years. We're probably gonna
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  Speaker 1: needed probably two decades of an investment in our schools
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  Speaker 1: to bring them all up to century standards. We have
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  Speaker 1: a lot of school buildings that were built. We able
• 7:20
  Speaker 1: to gout a hundred school building that will built around
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  Speaker 1: the World War two era. Um. That's a lot of
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  Speaker 1: schools with old infrastructure, and we really need to bring
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  Speaker 1: the infrastructure up the twenty one century standards. Mayor Welsh,
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  Speaker 1: thank you so much for joining us and congratulations on
• 7:34
  Speaker 1: announcing a big infrastructure plan. As well as the Boston
• 7:38
  Speaker 1: Pops celebration of July four here, which will be sponsored
• 7:41
  Speaker 1: by Bloomberg and Eaton Vance. Marty Walsh is the mayor
• 7:45
  Speaker 1: of Boston, and we are so glad that he could
• 7:48
  Speaker 1: be joining US Republicans unveiling a bill to repeal and
• 8:04
  Speaker 1: replace Obamacare. Here to tell us more is Brian Ry.
• 8:08
  Speaker 1: He's our senior healthcare policy analyst for Bloomberg Intelligence. We
• 8:13
  Speaker 1: are broadcasting from Symphony Hall in Boston, home to the
• 8:16
  Speaker 1: Boston Symphony Orchestra at the Boston Pops. We are here
• 8:19
  Speaker 1: to celebrate and announce our partnership with the Boston Pops
• 8:22
  Speaker 1: July fourth celebration, which will be carried live on Bloomberg
• 8:26
  Speaker 1: Radio as well as Bloomberg Television, and it will be
• 8:30
  Speaker 1: live streaming on Bloomberg dot com. Well, let's talk about healthcare,
• 8:35
  Speaker 1: and Brian give us an update on this Republican plan
• 8:39
  Speaker 1: if you can, and maybe you could also tie in
• 8:42
  Speaker 1: some tweets from President Trump having to do with drug prices. Sure. Well,
• 8:47
  Speaker 1: you know, first of all, thanks for having me. I
• 8:49
  Speaker 1: think a couple of things. You know, Republicans are finding
• 8:52
  Speaker 1: out how hard it is uh to actually implement healthcare
• 8:55
  Speaker 1: policy or make major changes in the US. You know,
• 8:57
  Speaker 1: the Republicans House leadership released a bill last night trying
• 9:01
  Speaker 1: to as they term, repeal and replace Obamacare. I think
• 9:05
  Speaker 1: a better term is maybe more repair some aspects of
• 9:07
  Speaker 1: the law. It doesn't repeal the law outright. It does
• 9:10
  Speaker 1: make some major It would make some major changes, particularly
• 9:12
  Speaker 1: to to Medicaid, convert that into a per capita cap
• 9:16
  Speaker 1: program that would reduce spending on the medicaid program in
• 9:19
  Speaker 1: the long term. UH. It eliminates all the taxes imposed
• 9:22
  Speaker 1: by UH the Affordable Charact on the various industries, on
• 9:25
  Speaker 1: medical devices, on health insurers, on drug makers, um. And
• 9:29
  Speaker 1: it replaces the current UH system of providing financial support
• 9:33
  Speaker 1: to individuals with an age based range of tax credit.
• 9:37
  Speaker 1: So it sounds a lot like that. And and and ho,
• 9:39
  Speaker 1: Senator Ran Paul has already called it Obamacare light with that, so, UM,
• 9:43
  Speaker 1: you know, Republicans they're sort of UH and they box
• 9:46
  Speaker 1: themselves in. You know, they're going to get criticism from Democrats,
• 9:49
  Speaker 1: UH for likely you know, a score that's gonna say
• 9:52
  Speaker 1: this is going to cover fewer people. They're gonna get
• 9:55
  Speaker 1: criticism from their conservative colleagues who are saying, wait a minute,
• 9:58
  Speaker 1: we campaign on a promise to repeal this entirely, and
• 10:01
  Speaker 1: now we're just, in their opinion, making tweaks around the edges.
• 10:03
  Speaker 1: So I think this is unlikely to be what actually
• 10:06
  Speaker 1: gets enacted, if anything does, um, but at least to
• 10:09
  Speaker 1: give some some insight into what Republican leaders are thinking. Well, Brian,
• 10:13
  Speaker 1: what ken you tell us who put this proposal forward
• 10:17
  Speaker 1: and what the political support looks like for passing it.
• 10:22
  Speaker 1: So there their support from most of the main leaders
• 10:25
  Speaker 1: in Congress. I think both the Speaker Paul Ryan Senate
• 10:28
  Speaker 1: Majority Leader Mitch McConnell supported. This is coming out of
• 10:31
  Speaker 1: two committees in the House right now, the Ways and
• 10:34
  Speaker 1: Means Committee Chairman Kevin Brady UH and the Energy and
• 10:37
  Speaker 1: Commerce Committee Chairman UH involved in They all supported, So
• 10:42
  Speaker 1: they've they've got that. It's the sort of the rank
• 10:43
  Speaker 1: and file who are who are concerned about some of
• 10:46
  Speaker 1: the provisions. And again, this was always going to be
• 10:48
  Speaker 1: a case they all they being Republicans, absolutely want to
• 10:52
  Speaker 1: repeal the law, but how you replace it and what
• 10:55
  Speaker 1: that process looks like has been problematic. Senator and Paul,
• 11:01
  Speaker 1: I'm gonna let your run with that one. Yeah, you know,
• 11:06
  Speaker 1: Senator Paul, I think because I'm not afraid to speak
• 11:08
  Speaker 1: his mind. I think last week he was on a
• 11:10
  Speaker 1: on a treasure hunt through the Capitol trying to find
• 11:12
  Speaker 1: this this bill that was being developed, underline what happened,
• 11:17
  Speaker 1: because explain what happened and and and what the different
• 11:20
  Speaker 1: versions perhaps of that story are. Well, you know, so
• 11:23
  Speaker 1: you had a situation where, you know, the staffs of
• 11:26
  Speaker 1: these two committees of Energy, Commerce and Ways and Means committees,
• 11:29
  Speaker 1: as they want to do, we're developing this, you know,
• 11:32
  Speaker 1: behind closed doors. And Senator Paul I didn't like that.
• 11:35
  Speaker 1: In again, I think Senator Paul doesn't really like the
• 11:37
  Speaker 1: approach that that the House is taking with this anyway.
• 11:39
  Speaker 1: So I think he saw this as an opportunity to
• 11:41
  Speaker 1: ship some light on it and and maybe drum up
• 11:43
  Speaker 1: some support within the conservative ranks uh and uh. And
• 11:46
  Speaker 1: he did a very good job of that. And I
• 11:48
  Speaker 1: think Chairman Walden uh and somewhat tongue in cheek when
• 11:51
  Speaker 1: they did release it last night, had had a copy
• 11:53
  Speaker 1: hand delivered the Senator Paul's office. Well, I want to
• 11:57
  Speaker 1: talk Brian about deadlines, because you can't just uh, sort
• 12:01
  Speaker 1: of float something out there and hang out with it
• 12:04
  Speaker 1: for a year. I mean, they have to put something
• 12:06
  Speaker 1: through in short order in order to keep some of
• 12:09
  Speaker 1: the benefits that are currently provided ongoing and keep the
• 12:12
  Speaker 1: health insurers brought into the program. So what is the
• 12:16
  Speaker 1: timeframe like and what is the minimum that Congress has
• 12:20
  Speaker 1: to do to UH prevent a complete dissolve of the
• 12:24
  Speaker 1: current benefits offered sure and and that's a great question.
• 12:28
  Speaker 1: So I think the process will begin in earnest tomorrow.
• 12:30
  Speaker 1: On Wednesday, they will have marked up hearings in both
• 12:34
  Speaker 1: these two committees, the Ways and Means and Energy and
• 12:36
  Speaker 1: Commerce Committee hearings. UH. The goal has been to try
• 12:38
  Speaker 1: and get something passed within the next month's ideally, I
• 12:41
  Speaker 1: think Speaker Ryan has talked about getting something to President
• 12:43
  Speaker 1: Trump's desk by by Eastern sort of mid April. I
• 12:47
  Speaker 1: think that's unlikely UM to happen. But by the same token,
• 12:50
  Speaker 1: you know, I don't want to get too far afield
• 12:52
  Speaker 1: and criticizing, you know, the likelihood of something like this,
• 12:55
  Speaker 1: UM you know, happening. They're going through what's known as
• 12:58
  Speaker 1: a budget reconciliation method, so that kind of limits what
• 13:01
  Speaker 1: they're able to include. And the reason they're doing this
• 13:03
  Speaker 1: is they're able to get something passed with only votes
• 13:07
  Speaker 1: in the Senate, rather than overcoming a Democratic sylabuster and
• 13:10
  Speaker 1: needing sixty votes. UM. You know from that standpoint, So
• 13:13
  Speaker 1: there's a pretty fine you know, finally defined the level
• 13:17
  Speaker 1: of things that they can include in this, and they've
• 13:19
  Speaker 1: included most of those, uh, you know, with this, the
• 13:22
  Speaker 1: taxes and the mandate penalties and those things. But more
• 13:25
  Speaker 1: than that, it's going to be hard to do with
• 13:26
  Speaker 1: that unless they want to go back to the drawing
• 13:28
  Speaker 1: board and start over. But to your point, you know,
• 13:30
  Speaker 1: there's other things that they want to do in next year,
• 13:33
  Speaker 1: and tax reform and those things, and it's hard for
• 13:34
  Speaker 1: them to get started on those things on those topics
• 13:37
  Speaker 1: until they take care of healthcare first. Thank you so much, Brian, right,
• 13:42
  Speaker 1: We really appreciate your insights. Brian Ryes, senior healthcare policy
• 13:45
  Speaker 1: analyst for Bloomberg Intelligence. They're speaking to us about the
• 13:48
  Speaker 1: GOP proposal to repeal and replace Obamacare. We're also getting
• 13:53
  Speaker 1: news that part of the proposal with lower taxes and
• 13:57
  Speaker 1: eliminate rules for certain care industry h companies, but they're
• 14:03
  Speaker 1: also will be less money and less help for people
• 14:07
  Speaker 1: uh to pay for insurance and pay for hospital visits.
• 14:10
  Speaker 1: So uh, some of the big insurance providers and hospital
• 14:13
  Speaker 1: systems are now parsing through the details and figuring out
• 14:16
  Speaker 1: what this means for them going forward. That is Beethoven
• 14:38
  Speaker 1: Symphony number seven, and it is a good intro for
• 14:41
  Speaker 1: our next guest. Keith Lockhart is here with us. He
• 14:44
  Speaker 1: is the conductor for the Boston Pops Symphony, and we
• 14:48
  Speaker 1: are here in Boston to celebrate Bloomberg and eat advances
• 14:53
  Speaker 1: UH support of the Bloomberg Pop Celebration of July four
• 14:57
  Speaker 1: coming up, Keith, I'm so glad you could join us.
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  Speaker 1: Thank you for coming to us. And and you're known
• 15:04
  Speaker 1: for your conducting style and making music accessible to the
• 15:09
  Speaker 1: audience and and and making it UH palatable in a
• 15:13
  Speaker 1: way that sometimes it might not be. I wanted to
• 15:17
  Speaker 1: start by asking you whether the profession of conducting is
• 15:21
  Speaker 1: changing at all as a result of this era of technology. Wow,
• 15:27
  Speaker 1: that's an interesting question and not not what I thought
• 15:29
  Speaker 1: i'd start with. You know, we we we live in
• 15:31
  Speaker 1: a proudly of analog business in a digital age, and
• 15:36
  Speaker 1: so much of what we do, you know, we we
• 15:38
  Speaker 1: play on instruments that are two and three hundred years old.
• 15:41
  Speaker 1: We play music that was written hundred and fifty two
• 15:44
  Speaker 1: hundred years ago. But I think we are we are
• 15:46
  Speaker 1: slowly adopting the technologies of the twenty first century. In
• 15:51
  Speaker 1: terms of the digital age, I think it has more
• 15:53
  Speaker 1: to do not so much with the art of conducting,
• 15:55
  Speaker 1: which is still very personal, very kinetic. Uh, communication between people.
• 16:02
  Speaker 1: Conductor is basically the the intermediary between musicians on the stage,
• 16:08
  Speaker 1: between the musicians and the composer, between the musicians and
• 16:11
  Speaker 1: the audience, and that really hasn't changed. What has changed
• 16:13
  Speaker 1: more our methods of dissemination of the product. Maestro, and
• 16:18
  Speaker 1: the business, the business of making music. Describe the changes
• 16:24
  Speaker 1: that you have your two decades twenty three years. Congratulations
• 16:31
  Speaker 1: thanks following hard to believe. I told everybody I started
• 16:33
  Speaker 1: when I was ten that I was gonna say in
• 16:35
  Speaker 1: short pants. The business of making music involves a lot
• 16:41
  Speaker 1: of different creative elements. Where you play, where you tour,
• 16:47
  Speaker 1: how you reach audiences. Give us some details about what
• 16:51
  Speaker 1: you have found to be successful and how that integrates
• 16:55
  Speaker 1: with the local and the national economy. Okay, another another
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  Speaker 1: see it's incredibly a corect question. Um. I tell people
• 17:04
  Speaker 1: when I came here in when they when they say, well,
• 17:08
  Speaker 1: it's only been two decades, how much change have you seen?
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  Speaker 1: And I said, well, I didn't have a cell phone
• 17:12
  Speaker 1: or an email account when I came to become conductor
• 17:14
  Speaker 1: of the Boston Pops, and I wasn't weird. I wasn't
• 17:16
  Speaker 1: living in a cave. I just didn't need those things.
• 17:19
  Speaker 1: And obviously our lives have been transformed hugely by the
• 17:22
  Speaker 1: various technologies and and changes in media that we have
• 17:25
  Speaker 1: seen the Boston Pops. It's really been the challenge over
• 17:29
  Speaker 1: the last two decades to adapt to the new situation.
• 17:33
  Speaker 1: This orchestra became not just a regional brand, I mean,
• 17:37
  Speaker 1: even though Boston is still in our name, but truly
• 17:40
  Speaker 1: a national and to some some extent international brand under
• 17:43
  Speaker 1: Arthur Fieler, and it became that by dint of technology.
• 17:47
  Speaker 1: UM the the it was one of the first American
• 17:49
  Speaker 1: orchestras to record and then recorded extensively, and by the
• 17:52
  Speaker 1: time every house out of Victrola, pretty much every Victoria
• 17:55
  Speaker 1: had a Boston Pops seventy eight on it. UM also
• 18:00
  Speaker 1: uh he indefatigable touring this orchestra or other orchestras under
• 18:04
  Speaker 1: earth of Feedler's command, which passed at that point. For
• 18:06
  Speaker 1: the Boston Pops were out months out of the year,
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  Speaker 1: playing every Middlesex village and farm, across the country, and
• 18:13
  Speaker 1: then of course Evening of Pops in the nineties seventies
• 18:17
  Speaker 1: put the orchestra on in people's living rooms in a
• 18:20
  Speaker 1: way that had never had before. So in the current day,
• 18:23
  Speaker 1: when the idea of moving a hundred people around the
• 18:26
  Speaker 1: country on three month tours is is just financially impossible,
• 18:30
  Speaker 1: it does. It does. The numbers don't work anymore for that.
• 18:33
  Speaker 1: The question is how do we use new technologies, emerging technologies,
• 18:37
  Speaker 1: to continue to find those people who want what we
• 18:40
  Speaker 1: have to offer. And what we have to offer I
• 18:41
  Speaker 1: think is singular. This is an orchestra that for a
• 18:43
  Speaker 1: hundred and thirty years has not preached to the choir
• 18:47
  Speaker 1: that we have said that people you don't have to
• 18:49
  Speaker 1: be a quote classical music fan to love good music.
• 18:53
  Speaker 1: And we've done up by reaching people on their own level,
• 18:56
  Speaker 1: by or or with the things they're familiar with, bringing
• 18:59
  Speaker 1: them some things they may not know, and then them saying, wow,
• 19:02
  Speaker 1: I love that tune and I never thought i'd hear
• 19:03
  Speaker 1: an orchestra play. Where do you find the best musicians
• 19:07
  Speaker 1: these days? Oh? The one problem we don't have in
• 19:11
  Speaker 1: the classical performing arts is is a dearth of great
• 19:15
  Speaker 1: performers UH these days the music schools in this country.
• 19:18
  Speaker 1: When when the Boston Cempty was formed in eighty five,
• 19:21
  Speaker 1: the entire orchestra was German because there were no schools
• 19:24
  Speaker 1: of music in this country and there was nobody here
• 19:27
  Speaker 1: receiving that level of a music education. Now people from
• 19:30
  Speaker 1: all over the world come to our shores and come
• 19:32
  Speaker 1: to Juilliard and Eastman and Curtis and Indiana, and the
• 19:36
  Speaker 1: list goes on and on and on. Right here in Boston,
• 19:38
  Speaker 1: with Boston University, in New England, Conservatory in Berkeley, we
• 19:41
  Speaker 1: have UH so many great young musicians coming out that
• 19:44
  Speaker 1: there is never a lack when we have an opening.
• 19:47
  Speaker 1: We just we have to, you know, we have to
• 19:49
  Speaker 1: close the door eventually, because so many people want those jobs.
• 19:52
  Speaker 1: The problem is, of course, the UH industry has shrunk
• 19:56
  Speaker 1: somewhat over the last couple of decades, and there are
• 19:58
  Speaker 1: more and more highly skilled practic issues for fewer and
• 20:00
  Speaker 1: fewer jobs. Now, I want to note that you are
• 20:03
  Speaker 1: a feature sometimes on drivetime radio, aren't you. I? UM,
• 20:07
  Speaker 1: you know this the the Boston Pops job, as opposed
• 20:11
  Speaker 1: a little bit to our parent company, the Boston Symphony,
• 20:14
  Speaker 1: is it's it's the outreach arm of the orchestra world,
• 20:20
  Speaker 1: I think, not just for the Boston Symphony, but nationally.
• 20:23
  Speaker 1: And so I spend quite a bit more time talking
• 20:25
  Speaker 1: in venues who wouldn't tend to find a conductor. I
• 20:29
  Speaker 1: was saying that I'm used to all sorts of early
• 20:31
  Speaker 1: morning drivetime, shock jack radio and all that sort of thing.
• 20:36
  Speaker 1: So you guys seem well, very very um refined, was
• 20:44
  Speaker 1: careful because we're sponsors, and we're gonna be tell we're
• 20:49
  Speaker 1: gonna be telecasting on Bloomberg Television, Bloomberg Radio, and Bloomberg
• 20:53
  Speaker 1: dot com. You're gonna be able to hear the Boston
• 20:55
  Speaker 1: Pops July fourth celebration with the cannons please of course,
• 20:59
  Speaker 1: with the cannon to the stereos around sound. What was
• 21:02
  Speaker 1: the moment at which you knew you wanted to be
• 21:04
  Speaker 1: a conductor. Well, I'm still not quite sure of that,
• 21:06
  Speaker 1: but you know at this point that my own exactly,
• 21:10
  Speaker 1: um I was. It's not to almost after I got
• 21:15
  Speaker 1: out of college and uh, and I wasn't still sure
• 21:18
  Speaker 1: what I wanted to do, uh, started experimenting with it.
• 21:21
  Speaker 1: It was exactly where music took me. And I've been
• 21:24
  Speaker 1: thrilled the money. I'm sorry, I gotta keep pressing on
• 21:29
  Speaker 1: the money here because as you just described as well,
• 21:34
  Speaker 1: they do about money. But that's the point is you
• 21:38
  Speaker 1: can't now avoid that. You just said, right, a hundred musicians.
• 21:41
  Speaker 1: You're not going to move them all around the country.
• 21:42
  Speaker 1: This is expensive stuff. Uh, what do you want to
• 21:47
  Speaker 1: get across the people that may not think that classical
• 21:51
  Speaker 1: music is the way to reach young people with money?
• 21:55
  Speaker 1: Because this is as much about networking, having a great
• 22:00
  Speaker 1: time being together in a setting where you can build
• 22:03
  Speaker 1: a relationship exactly. And as you know, so many of
• 22:06
  Speaker 1: our entertainments these days and the ubiquity of social media
• 22:10
  Speaker 1: and that sort of thing make uh, these kind of
• 22:12
  Speaker 1: intimate relationships in a in a way a little old fashioned.
• 22:15
  Speaker 1: But at the end of the day, I think music
• 22:17
  Speaker 1: is about community, it's about coming together, It's about exploring
• 22:21
  Speaker 1: something that really touches the deepest levels of our souls
• 22:24
  Speaker 1: and our beings, and those things. I think people will
• 22:28
  Speaker 1: come back to those things. I think people will realize
• 22:30
  Speaker 1: that Facebook friends are not really friends, and that Keith Lockhart,
• 22:35
  Speaker 1: thank you so much for joining us. Keith Lockhart is
• 22:38
  Speaker 1: the conductor for the Boston Pops and he joins us
• 22:41
  Speaker 1: here in Boston, We're gonna take you out with a
• 22:44
  Speaker 1: little debuc We are in Boston at the Symphony Hall.
• 23:14
  Speaker 1: Here the Boston Pops made an announcement that they're going
• 23:18
  Speaker 1: to be broadcasting the July fourth celebration. They're going to
• 23:21
  Speaker 1: be performing the July fourth Celebration, and Bloomberg will be
• 23:26
  Speaker 1: broadcasting at Bloomberg is also a major sponsor that will
• 23:28
  Speaker 1: be underpinning this effort for the upcoming years. Another firm
• 23:34
  Speaker 1: that is also a major sponsor of the Boston Pops
• 23:38
  Speaker 1: is Eating Vans and we are lucky to have with
• 23:40
  Speaker 1: us Tom Faust, the chairman and CEO of Eating Vans. So, Tom,
• 23:43
  Speaker 1: this is the first time the Eating Vans has sponsored
• 23:46
  Speaker 1: the Boston Pops. Correct, that's right. This is a new
• 23:50
  Speaker 1: new event for us and a new, uh new, evolving
• 23:54
  Speaker 1: celebration for Boston. For the last forty three years, David
• 23:58
  Speaker 1: Mugar has been the producer and really has overseen this event.
• 24:02
  Speaker 1: And just in the past year, David has turned over
• 24:05
  Speaker 1: the baton, so to speak, to the Boston Pops and
• 24:07
  Speaker 1: Eat Vance is pleased to be the presenting sponsor for
• 24:10
  Speaker 1: the now newly constituted UH Boston Pops four Fourth of
• 24:14
  Speaker 1: July Firework Spectacular. Can you speak a little bit about
• 24:18
  Speaker 1: being here in Boston and the role that an institution
• 24:22
  Speaker 1: like the Boston Pop plays in the local and, as
• 24:26
  Speaker 1: a result, the national economy. The Fourth of July concert
• 24:31
  Speaker 1: on the Esplanade in Boston is it's both a major
• 24:35
  Speaker 1: regional event and an major national event. What UH this
• 24:40
  Speaker 1: represents to UH hundreds of thousands of Boston and area
• 24:46
  Speaker 1: families is an integral part of how they celebrate the
• 24:48
  Speaker 1: Fourth of July, how they celebrate our nation's birthday, but
• 24:52
  Speaker 1: also across the country. For decades, this has been a
• 24:56
  Speaker 1: part of many families Fourth the July rituals. UH in
• 25:00
  Speaker 1: you remember the first time that you were present to
• 25:04
  Speaker 1: see the celebrations and here so um because you went
• 25:08
  Speaker 1: to M I T. I went to M I T
• 25:10
  Speaker 1: and I came here as a college student from Arkansas.
• 25:13
  Speaker 1: Thank you and UH. The first time I came to
• 25:15
  Speaker 1: the Boston Pops Fourth of July was during my college career,
• 25:19
  Speaker 1: when it seemed a very logical thing for a bunch
• 25:21
  Speaker 1: of buddies and I to go over to the Esplanade
• 25:24
  Speaker 1: and stick out our turff and spend the day in
• 25:26
  Speaker 1: the sun and enjoy the amazing concert and fireworks on
• 25:29
  Speaker 1: the Fourth of July evening. And so that became something
• 25:32
  Speaker 1: I did with friends, and then when I had a
• 25:35
  Speaker 1: young family, that also became part of our family tradition
• 25:37
  Speaker 1: as well. So I would imagine as the CEO and
• 25:40
  Speaker 1: chairman of Eating Vans, you don't have much time to
• 25:42
  Speaker 1: go and stick out of position UH for an entire
• 25:45
  Speaker 1: day for the fireworks celebration. I'm sure you have UH
• 25:49
  Speaker 1: better better, better plans and better seating, But as a
• 25:51
  Speaker 1: chairman and CEO, I would be remiss not to ask
• 25:54
  Speaker 1: you just for the outlook for asset managers, managers, particularly
• 26:00
  Speaker 1: active managers, facing the incredible flood of money into passive
• 26:05
  Speaker 1: managing UH from active investment funds. How has Eating Vans
• 26:09
  Speaker 1: dealing with this and are their pockets where active management
• 26:13
  Speaker 1: is starting to attract more UH away from passive. For sure,
• 26:19
  Speaker 1: this is a time of dramatic change in our business.
• 26:22
  Speaker 1: I've I've been at Eaton Vance and been in the
• 26:23
  Speaker 1: asset management business for thirty two years. I don't think
• 26:25
  Speaker 1: there's ever been a time, other than maybe periods of
• 26:28
  Speaker 1: market upset, where there's been as much change in the
• 26:31
  Speaker 1: asset management business as there is today. The primary driver
• 26:35
  Speaker 1: that is you point out is UH this general flow
• 26:38
  Speaker 1: of assets from UH active Broadley defined too passive Broadley define.
• 26:43
  Speaker 1: But it's not happening UH uniformly across asset classes, and
• 26:47
  Speaker 1: it's certainly not affecting all managers equally. It continues to
• 26:51
  Speaker 1: be the case that people are looking for out performance,
• 26:55
  Speaker 1: and that if managers and investment teams can deliver out
• 26:58
  Speaker 1: performance UH, their continue is to base strong market demand
• 27:01
  Speaker 1: for what they deliver. I'm pleased to say that across
• 27:04
  Speaker 1: many of our investment strategies, not all of them, we
• 27:07
  Speaker 1: have strong performance and only against other active managers, but
• 27:09
  Speaker 1: also against passive alternatives. So which asset classes are least effective,
• 27:15
  Speaker 1: at least least affected by UH flows into passive funds,
• 27:19
  Speaker 1: and which are most of eating vances funds? So we're
• 27:22
  Speaker 1: consistent with the overall trend, which is that the flow
• 27:27
  Speaker 1: from active to passive has been strongest in US equities
• 27:31
  Speaker 1: and particularly large cap US equities. And when people the
• 27:35
  Speaker 1: headlines about active versus passive performance, usually that's focused on
• 27:40
  Speaker 1: large cap U s stock. So what percentage of mutual
• 27:43
  Speaker 1: funds of US equity funds beat the S and P
• 27:45
  Speaker 1: five by that measure, It's been a pretty tough time
• 27:48
  Speaker 1: for active managers. If you look at other asset classes,
• 27:51
  Speaker 1: if you look at global or non US equities, or
• 27:53
  Speaker 1: small caps, but particularly across the whole range of income strategies,
• 27:57
  Speaker 1: the picture is quite different. There are many segments. It's
• 28:00
  Speaker 1: where Eaton Vance has major business positions where indexing effectively
• 28:03
  Speaker 1: doesn't work very well. Um, it's hard to do indexing
• 28:06
  Speaker 1: effectively in UH segments like bank loans. It's like segments
• 28:10
  Speaker 1: like how your bonds, emerging market debt, and municipal bonds.
• 28:13
  Speaker 1: All of those are big businesses for eating Vance, where
• 28:15
  Speaker 1: we think our active managers compete very effectively versus all
• 28:18
  Speaker 1: passive alternatives. I'd like you to speak about custom beta
• 28:23
  Speaker 1: at Eaton Vance and the qualities that come with rule
• 28:27
  Speaker 1: based investing. So custom beta is is our term for
• 28:33
  Speaker 1: customized passive investing, where an investor says, I want an
• 28:38
  Speaker 1: exposure to this part of the equity market or this
• 28:41
  Speaker 1: part of the fixed income market, but rather than investing
• 28:44
  Speaker 1: in that in that market segment through what we call
• 28:47
  Speaker 1: a bulk beta instrument like an e T F OR
• 28:50
  Speaker 1: or an index fund. By owning the individual securities, you
• 28:54
  Speaker 1: can achieve customized portfolios that have better tax treatment and
• 28:59
  Speaker 1: that ror reflect the personal values and what's important to
• 29:03
  Speaker 1: the particular client. And that's been a very big part
• 29:05
  Speaker 1: of our our strategy. As business has moved from active
• 29:08
  Speaker 1: to passive, this has been our way to compete effectively
• 29:11
  Speaker 1: in the passive part of the business. I was just
• 29:13
  Speaker 1: wondering if you could do ten seconds on just explaining
• 29:17
  Speaker 1: the tax situation um. If you own a mutual fund
• 29:22
  Speaker 1: and one of the stocks inside that fund goes down
• 29:25
  Speaker 1: in price, if the manager sells that the loss that's
• 29:29
  Speaker 1: recognized if as effectively trapped inside the fund, you cannot
• 29:33
  Speaker 1: use that loss to offset the gains you have elsewhere
• 29:35
  Speaker 1: in your portfolio. But if you own that same stock
• 29:38
  Speaker 1: in a separate account, that loss can be used to
• 29:41
  Speaker 1: offset gains you have elsewhere in your portfolio. Great, thanks
• 29:44
  Speaker 1: very much, Tom Fausti used the chairman and the chief
• 29:46
  Speaker 1: executive of Eaton Events about three hundred and seventy billion
• 29:50
  Speaker 1: dollars of assets under management. A new sponsor of PP
• 29:54
  Speaker 1: to Live four celebration. Indeed, as is Bloomberg, we are
• 29:58
  Speaker 1: the media's sponsor, so you'll be able to watch the
• 30:02
  Speaker 1: July fourth celebration Boston Pops on Bloomberg Television here at,
• 30:07
  Speaker 1: on Bloomberg Radio, and on Bloomberg dot com. Thanks for
• 30:16
  Speaker 1: listening to the Bloomberg pien L podcast. You can subscribe
• 30:19
  Speaker 1: and listen to interviews at iTunes, SoundCloud, or whatever podcast
• 30:24
  Speaker 1: platform you prefer. I'm pim Fox. I'm out there on
• 30:27
  Speaker 1: Twitter at pim Fox. I'm out there on Twitter at
• 30:31
  Speaker 1: Lisa Abramo. It's one before the podcast. You can always
• 30:34
  Speaker 1: catch us worldwide on Bloomberg Radio