We will get details from microsoft president and cfo. And we look at what an internet pioneer sees in the decade to come. After three years in the making, the u. S. And china signed phase one of the trade deal on wednesday. And the vicemp premier put pen to paper for a deal that the president claims will have a Significant Impact on the tech world. Pres. Trump china has made enforceable commitments regarding the protection of american ideas, patents, and trade law. China has also pledged action to confront pirated and counterfeit goods, which is a big problem. Taylor those people in the room with the likes of executives from micron, qualcomm, ebay, and others. To discuss the implications, i talked to adam siegel, director of digital and cyberspace policy on the council of Foreign Relations in new york. In washington, bloombergs peggy collins. We have learned that the u. S. And china have taken the first peggy and china have taken the first step to negotiate some big imports into the u. S. In terms of china promising to commit to buying of more u. S. Products, as well as some concessions in terms of enforcement around intellectual Property Protection and patents, as you mentioned, so, essentially, china is saying we are committing to about 200 billion in additional product purchases from the u. S. In exchange for those reductions of tariffs, which we saw announced in december, where the u. S. Did not go through with the december tariffs that were threatened, as well as it did a reduction of some tariffs that were put on in september, but some of the stickiest issues are still out there and awaiting a phase two deal that the Administration Says they are going to start on soon but could take a long time to finalize. Taylor adam, i want to show you a chart that i have inside my terminal, which has been a fundamental issue, which is u. S. Imports from china growing, growing, and growing, and that the tariffs will remain for the foreseeable future going into phase two. In your opinion, while they are still tariffs outstanding, did the signing today represent at least some sort of business confidence, some sort of resolution, removing some of the uncertainty that broadly can help businesses move forward . Adam i think a very little bit of uncertainty. I think u. S. Businesses are going to be very skeptical that china is going to follow through on the enforcement of i. T. Protections and their requirements to no longer force technology transfers. I think they are going to be skeptical on how open the chinese economy is going to become, because phase two is really going to address a lot of the industrial policy issues, subsidies, support for state owned enterprises, really a lot of the tricky knots in this relationship, so i think people are going to be glad that this first phase is done. It is signed, but there are a lot of hard issues that still are waiting for us in the future. Taylor peggy, at least for now, are companies happy about some of the ip theft that we were able to agree on . Peggy well, it is interesting, because one of the astounding things about this deal signing today is that it was over an hour in terms of the trump administration, and president trump, hailing the agreement, and he called out a lot of ceos and ceos in the room, including in the tech industry, who he said should be happy with the deal, but there was also huawei, which was not part of the deal but is a source of tension between the nations and of great consequence for the Technology Companies out there, like macron micron and qualcomm, as well. Taylor well, adam, what about your thoughts about forced tech transfers and some the issues surrounding i. T. Theft . Adam the chinese agreed not to force technology through formal or informal methods, but the problem is the chinese has always said it had enforced technology transfers. It is just the state of the market that u. S. And Foreign Companies have chosen to move manufacturing or r d centers or shift joint ventures, so chinese, in many ways, are agreeing to do something they have said they have never done before. On the ip side, this this is in the direction that china itself wants to move. China has been increasing its own ability to enforce ip laws. It wants to be able to protect ip because it has more chinese firms that produce it. There may be more traction in this space, but the proof is really going to be in the pudding. Taylor adam, what would you like to see in terms of the execution around those two issues . Adam i think we will have to see some really high cases of china penalizing firms, the ones which u. S. Firms say have stolen or other illegal forms to get u. S. Trade secrets. I think were going to have to see more cases brought. There has been success, but more of those cases. And, in particular, were going to have to see firms saying, look, we do not need to joint venture any longer. We do not need to have higher tech manufacturing. But those are all things that are going to take a much longer time. Taylor that was adam from the adam siegel from the council on Foreign Relations and peggy collins. The signing marks the first phase of a broader trade pact. However, the pact avoids dealing with issues of huaweis access to american markets. Markets and suppliers. I got reaction from huaweis director of expressionless congressional affairs. Is an interesting and broad agreement. Early agreements are mixed in how the institutions work. But it is a good sign of an agreement in phase one. Taylor what do you want to see from phase two . Don huawei is private and private employee held company. The trade deal between the two huawei hasnot no input there. Like any global company, we look for trade stability as well as open markets. We have preached that we hope that is the result down the road as we get to phase two or phase three. Taylor you mentioned you are a global company. How has the impact been from the trade tensions . Don like any company, there is always tension. But huawei always has Business Continuity in plans continuity plans in place so the effect has not been that drastic. Like any company, you are looking for stability and free markets. Taylor we heard from Steve Mnuchin who said huawei is not a chess piece in the u. S. China trade fight. He wants it to remain a clear, National Security issue, separate from trade. Is it clear that is how it should be treated . Don huaweis mission is to connect the world. Enumerated by the u. S. Government in the past get the basic issues of trust and security. The goal for huawei and the goal for the u. S. Government is the same. We want robust and secure networks. The dialogue needs to center on that how to get there most effectively to the benefit of Global Consumers but specifically consumers in the United States. Taylor what is huawei doing to ensure our data is being protected from beijing . Don if you look at our cybersecurity efforts, we are one of the first to put together end to end cybersecurity program. It is not bolted on but a process that goes through every process in the company. We also go the extra mile, which no other vendor in her business has done. Opening a Cybersecurity Center in england and brussels as well. And as we said before parliament, huawei stands naked before you. We are the most respected in our industry and we have come through fairly well in our industry. Taylor can you tell us no data has ever been turned over to beijing . Don absolutely not. the head of the company has said he has never gotten a from beijing or any other government to turn over data. If you look at our relationships with vendors, we are in business with 45 of the top broadband providers and have a long track record. Not a single major cybersecurity is traced back to wallys equipment huaweis equipment. The reason is we take security seriously. We do not have access to the data unless given specific access by the provider. If you look at customers in the United States, an invitation for huawei to work with its equipment and the network is with special, monitored laptops keystroke watched with no chance for us to access data we dont have. Taylor that was huaweis director of congressional affairs, Don Morrissey area Don Morrissey. Coming up, Microsoft Joins the Global Movement fight climate change. We hear from brad smith about the plans they have in store. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg and in theerg. Com, u. S. On sirius xm. This is bloomberg. Taylor microsoft made a major investment announcement in the effort to fight climate change. It will invest 1 billion in companies and organizations working on technology to remove or reduce carbon from the atmosphere. I sat down with the president and chief legal officer, brad smith. Brad microsofts commitment to put a billion dollars into climate innovation is part of a broader plan but the fund itself will really be focused on accelerating innovation and climate reduction and removal of technology where money is not flowing already. One area that we see being a paramount importance is the creation of new and Better Technology that will enable us all to remove carbon from the atmosphere. Another area where we see a critical need for money where it is not yet flowing is for example, project finance for renewable energy. There are some parts of the world perhaps especially in the United States and western europe where capital is already flowing for new renewable energy. Not everywhere. We want our money to make a difference. Taylor are you really looking outside the u. S. To deploy this 1 billion . Brad certainly in parts we are , looking outside the United States in part. Especially when it comes to the creation of new places that will generate renewable energy. When it comes to technology innovation, it doesnt know boundaries or specific countries. I am sure there will be some of this flowing inside the United States, across europe and around the world. Taylor as you take a look at microsofts goals, you have a plan by 2030 to be carbon negative. Where are we on achieving that goal . Brad in many ways the most , ambitious thing we are seeing today is as you just mentioned, we will be carbon negative as a company by 2030 not just for our company but for our supply chain. By 2050, we will remove on the environment all of the carbon that microsoft has emitted either directly or four 44 electrical consumption or for electrical consumption since we were founded in the year 1975. That is a big goal. We have a detailed plan but we have a lot of work to do. Thats why we say this is a decadelong ambition for us. Taylor you are working with your suppliers and customers to make sure they are doing their own initiatives in terms of being Carbon Neutral as well. How are you folding in these goals with your contracts with suppliers and customers . Brad it requires a detailed plan which we have been putting together over the past months. One aspect when it comes to supply, naturally the supply of electricity for ourselves react for ourselves, and what we are saying is that by the year 2025, we will have purchase agreements in place for 100 renewable it energy for all of our data centers, all of our buildings and campuses worldwide. Then, there is all of the other emissions that are generated as part of our supply chain. By next year, we will be implementing new tools and processes for our suppliers. We will want to see consistent measurement of their emissions. We want to help our suppliers with new tools so they can reduce their emissions. We will be talking with our suppliers in the coming months. I think you can expect to see us move forward with new economic incentives so that as we are buying goods and services, we are focused on encouraging our suppliers to reduce their emissions and if they do, i think they will find it easier to sell their products to microsoft. Taylor that was microsofts brad smith. Coming up, fintech on fire. Lisa agrees to pay 5. 3 billion dollars for a Fintech Company. The price has doubled. We will have details. And later, the chairman and ceo of revolution and his tech trends for 2020. This is bloomberg. Taylor this week, we thought major fintech deal take shape. These agreed to pay 5. 3 billion dollars for a Fintech Company that connects data in the banking system. The price is double their valuation in a 2018 funding round. I spoke to our Senior Analyst for fintech. Plaid has 2600 fintech customers. It has venmo, acorn, coinbase. It gives visa customers to sell into. Plaid also have been a u. S. Based company. Longerterm, visa sees it as an opportunity to sell Payment Services into fintech. That will mean more Payment Transactions across the visa global network. Taylor earlier, we had a general partner and a plaid investor talking about getting into the space. Take a listen. We have a lot of traditional Financial Institutions started to think about our Software Strategy and staying relevant. How do we continue growing like a Software Company . Then you have a lot of Software Companies realizing the benefit of fintech to the consumer and more services. With infrastructure like plaid, it becomes much easier to bundle that into software. If you think about what lisa did and how they talked about the rationale for acquiring plaid, it was really about growth and expanding. Taylor what do you make of those comments . Sonali it is Pretty Amazing because when you look at some of the big stories of last year. Wework, peloton, trying to command technology multiples, they had a hard time. A lot of the Software Companies won out. People expect a lot of mergers and acquisitions to happen. It seems like we have a pretty perfect marriage here where the theware people found financial industry and the financial industry had a real need for the software people. Otherwise, they would need to be paying up so much to be hiring. The partnership has been working quite well. I dont know how many exits we can see that are this big. But remember, there are a lot of interesting Fintech Companies that have ballooning valuations, including stripe, the most valuable startup in america right now. Taylor those were two bloomberg correspondents. This week was earnings season for many u. S. Banks, citing technology as a key driver of growth and have invested heavily into innovation. That investment could be bringing a big change to bonus culture as traders may have to unlearn some of their most basic assumptions. For more, i spoke to our finance reporter on monday. What we are unlearning is that bonuses are maybe a thing of the past. In the past, traders were always judged as these big players in the markets who could make outsized bets and outsized profits and money on the back of that. Now, because of automation and electronicification, the machines are doing the work for them so they cannot garner that kind of paycheck anymore. Taylor we joke about this all the time, instead of going back to cfa school, we will go to coding school. What happens to those traders who do not yet know how to code . There is a range of things, but what traders are trying to do now, at least the smart ones, trying to build in the transition for the future. While they may never be heavy quants of data scientists or phds in physics, they need to get up to speed, whether it is algorithm trading or electronic trading. It does not mean that they are going to write the code, necessarily, but they have to have some fluency with that topic. Taylor even though quants and traders of that type are in high demand, it is not necessarily translating into a raise in compensation. Why the discrepancy . Lananh a recruiter i spoke to said that even though they are in high demand and all firms want to make sure they have a lot of talent, that does not necessarily mean that the salaries and bonuses are going to come up in any big way. There is an emphasis on cutting costs, which means that the basic level of skill you have to have will require more technical skill. Taylor do you think this is just the beginning of what looks like a broader structural change undergoing the Financial Markets at this point . Lananh i do. A lot of the experts have said the same. As well as some traders lamenting the good old days of the past. It does seem the Technical Skills will stay with us and the pace of technological innovation and movement is going to continue. If people want to stay relevant, they need to learn skills and make the transition into an automated future. Taylor any other reaction from the street . Lananh a lot of emails from traders saying, i wish i had gotten up to speed, and maybe i should take a class or something. There have been a lot of soulsearching emails. They are saying they are thinking ahead. Taylor can you remind us of scopes how many jobs have the potential to be automated . Lananh the people i spoke to have not really said because i think it is too wide to quantify. Everyones job will be affected by technology. There is not a precise number. Equities, foreignexchange, a lot of these markets that are highly electronic are already seeing this change. On top of that, everyone is talking about the bond market as as well becoming more automated. Those are the most intuitive markets to see this transformation. Eventually, this could head into Investment Banking as well. Taylor coming up, we will hear from the head of one of the biggest Hospital Systems in the u. S. My conversation with the ceo of providence Saint Josephs health next. And we are livestreaming on twitter. Check us out at technology and