Earths atmosphere. We will get details from microsoft president and chief legal august legal officer. We will look at what an internet pioneer sees in the decade to come. Now, after three years in the making, the u. S. And china signed phase one of the trade deal on wednesday. President trump and chinese vice 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, trade secrets, patents, and trademarks. They have also agreed to confront pirated goods, which is a big problem for many people in the room. Taylor those people in the room being those of the likes of executives from micron, qualcomm, ebay, and others. I spoke to the director of digital and cyberspace policy on the council of Foreign Relations in new york. And in washington, bloombergs eddie collins. We have learned that the u. S. 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 behind this trade deal, 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 remaining that are 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 on 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, the subsidies, the 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 Technology Companies happy about some of the things 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 those in the tech industry, who he said should be happy with the about the deal, but there was also huawei, which was not a part of the deal but is a source of great tension between the two nations and of great consequence for the Technology Companies out there, like macron and qualcomm, as well. Micron and qualcomm, as well. Taylor well, adam, what about your thoughts about forced tech transfers and some the issues surrounding i. T. Theft . Ip theft . Adam the chinese agreed not to force Technology Transfers through joint ventures, or formal or informal methods, but the problem is the chinese has have 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 form r d centers, or shift joint ventures, so the chinese are agreeing to do something 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 i. P. Laws. It wants to be able to protect ip reform because it wants to protect 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 highprofile cases of china penalizing firms, the ones which u. S. Firms say have stolen or other illegal forms to get u. S. Business or 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 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 of the council on Foreign Relations and bloombergs 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 and suppliers. I got reaction from huaweis director of congressional affairs. It is an interesting and fairly broad agreement. Really 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 a global company, but it is also privately owned. Privately held company. Like any global company, we look for trade stability as well as open markets. Preached that, and we hope that is the result down the road for phase two or 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 with supply. Alway you have issues that ared into politics. There is always tension, but huawei always have plans in place so the effect has not been that drastic. Like any company, you are looking for stability and free markets. Taylor it was interesting. We heard from treasury secretary Steve Mnuchin who said huawei is , not a chess piece in the trade fight. He wants it to remain a clear, security issue, separate from trade. Do you agree that that is how it should be treated . Don in either case, huaweis mission is to connect the world. The issues enumerated by the u. S. Government get to basic issues of trust, but also get to basic issues of security. The goal for huawei and the u. S. Government is the same. We provide robust and secure networks. We share the same goal. 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 huaweis cybersecurity efforts, we are one of the first to put together an end to end cybersecurity program. Cybersecurity for this company is not open arm. It is a process that goes through every process in the company. We also go the extra mile, which no other vendor in our business has done. Opened a Cybersecurity Center in england and brussels as well. Said whenltic testifying before the parliament, we stand naked before you. We have come through fairly well in our industry. Taylor can you tell us that no data has ever been turned over to beijing . Given that is some of the issues from the u. S. And others . Don absolutely not. The head of the company has said he has never gotten a request from beijing or other companies. If you look at how huawei handles our relationships with is in business with 45 of the top broadband providers and have a long track that has has a long track record. Not a single major cybersecurity events can be traced back to huaweis equipment. The reason being is huawei takes cybersecurity seriously. We do not have access to the data unless given specific broadband by the provider who controls that access. Our customers in the United States any invitation for us to , put our clement in the network is with special, monitored laptops with no chance for us to access data we dont have. sylor that was huawei director of congressional affairs, don morrissey. Coming up, Microsoft Joins the Global Movement fight climate change. We will hear from its president and chief legal officer brad smith about the plans they have tech giants have in store. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, or bloomberg. Com. 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 reduce or remove carbon from the earths atmosphere. I sat down with microsofts president and chief legal officer, brad smith. Brad microsofts commitment to day 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 of technology where money is not flowing already. One area that we see being of 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 sites in developing markets. 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 we are looking outside the United States. Especially when it comes to the creation of new places that will generate Renewable Energy. But when it comes to technology innovation, it doesnt know boundaries. It doesnt know specific countries. I am sure there will be some of this flowing inside the United States, across europe, and perhaps around the world. Taylor as you take a look at microsofts goals, you have a plan by at least 2030 to be carbon negative. Where are we on achieving that goal . Brad well, i think 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. For our socalled value chain. By 2050, we will remove from the environment all of the carbon that microsoft has emitted either directly 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 a lot of 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 perhaps some contracts with suppliers and customers, making sure they are being held accountable as well . 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. What we are saying today is that by the year 2025, we will have purchase agreements in place for 100 Renewable Energy for all of our data centers, all of our buildings, and all of our campuses worldwide. There is all of the other emissions that are generated as part of our supply chain. As you said we will be , implementing by next year 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 theyre going to find it easier to sell their products to microsoft. Taylor that was microsofts brad smith. Coming up, fintech on fire. Visa agrees to pay 5. 3 billion for plaid. The price is double their last valuation. Later, the aol cofounder and current chairman and ceo of revolution and his tech trends for 2020. This is bloomberg. Taylor this week, we saw 5. 3 a major deal 5. 3 billion for an , intake company that connects venmo to Customer Data in the banking system. The price has doubled in a 2018 funding round. I spoke tuesday to bloombergs Senior Analyst julie. Plaid has 2600 fintech customers. It has venmo, acorn, coinbase. It gives visa customers to sell into. Plaid also really has been a u. S. Based company. Visa is in a great position to internationally with the plaid services. Longerterm,t, visa sees it as an opportunity to sell Payment Services into fintech. That will mean more Payment Transactions across the visa global network. Taylor i want to bring you back in here. 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 that are starting to think about, what is our Software Strategy . How do we stay relevant . How continue growing . How do we continue growing . Then you have a lot of Software Companies realizing the benefit of fintech. Thinking about offering more financial type services. With infrastructure like plaid, it becomes much easier to bundle that into software. If you think about visa, the rationale for acquiring plaid, it was really about growth and it was about 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 somewhat hard time. A lot of the Software Companies won out. People expect a lot of mergers and acquisitions to happen in the cyberspace. It seems like we have a pretty perfect marriage here where the Software PeopleFamily Financial industry and the financial industry had a real need for the Software People. That they have just been burning for. Otherwise, they would half to pay 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 striped, which is stripe, which is the most valuable startup in america right now. Taylor that was julie and sona li. This week was earnings season for many u. S. Banks, citing technology as a key driver of growth. That investment could be bringing a big change to bonus wall streets bonus culture as traders may have to unlearn some of their most basic assumptions about making money. 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. But now, because of automation and electronicification, the machines are doing the work for them so they cannot garner that kind of paycheck anymore. Taylor you and i 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 . Lananh 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 or data scientists or phds in physics, they need to get up to speed at least with some of the techniques being used on the street whether it is algorithm ,ic trading or electronic trading. They need to at least understand a little bit of machinery behind the work in order to stay relevant. 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 traders of that type are in high demand, it is not necessarily translating into a raise in compensation. Why the discrepancy . Interesting. 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 have come up in any substantial 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 really 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 also 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, upskill, 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 sho