IS IT TECH, IS IT WHAT HAPPENS
WITH THE TRADE TALKS? WE WILL DEBATE THAT NEXT.
LET’S GET THE SHOW GOING. ♪ >> NEWSMAKERS AND MARKET
MOVERS, THIS IS THE PULSE WITH FRANCINE LACQUA. GUY: IT IS GUY JOHNSON.
LET’S TALK ABOUT WHERE WE ARE GOING FROM HERE. U.S.
STOCK FUTURES HOLDING FIRM, FAIRLY DECENT LEVELS.
INVESTORS FOCUSING ON WHAT’S HAPPENING WITH THESE TRADE
TALKS BETWEEN CHINA AND THE U.S. WE ARE LOOKING FOR SIGNS OF A
COOLING IN THE TRADE STANDOFF BETWEEN THESE TWO HUGE
ECONOMIES. JOINING US NOW, HEAD OF EMEA
ISHARES FIXED INCOME STRATEGY AT BLACKROCK. GOOD MORNING.
WE HAVE THIS AMAZING WEEK COMING UP IN TERMS OF THE
CATALYSTS WE ARE WATCHING OUT FOR. IS IT U.S.
INFLATION, IS IT WHAT’S HAPPENING WITH THESE AUCTIONS?
WHAT ARE YOU FOCUSING ON IN TERMS OF SETTING THE AGENDA FOR
THE WEEK? >> YES, WE DO HAVE A WEEK
PACKED WITH ECONOMIC DATA. EYES TURN TO U.S.
MARKETS AND THE IMPLICATIONS FOR THE U.S. BOND MARKET.
THE INFLATION. WHEN IT COMES TO THE INFLATION
DATA, WE DON’T EXPECT A SPIRALING OUT.
I THINK INFLATION IS ANCHORED ABOVE THE FED. IT STAYS STICKY.
I THINK THE POINT AROUND THE AUCTION, IT IS ANOTHER SIGNPOST
IS THE INVESTORS APPETITE OR APPRECIATION OF HOW THE U.S.
WILL CONTINUE TO FINANCE ITSELF. BUT QUESTIONS AROUND THE
IMPORTANCE OF U.S. BONDS WITHIN INVESTORS
PORTFOLIOS, I THINK THEY ARE LITTLE OVERSTRETCHED AND TERMS
ARE PEOPLE ABANDONING U.S. BONDS. IT IS HARD TO IMAGINE
PORTFOLIOS WITHOUT U.S. ASSETS. U.S. BONDS IS THE LARGEST FIXED
INCOME ASSET CLASS IN THE WORLD. HOWEVER, I AM SEEING,
PARTICULARLY IN EUROPE, INVESTORS LOOKING TO DIVERSIFY
INCOME, PARTICULARLY WITH EUROPEAN FIXED INCOME WHICH IS
A REALLY GOOD PLACE TO BE RIGHT NOW. GUY:
WE WILL COME TO EUROPE IN A MOMENT.
STRONG PAYROLL DATA FRIDAY. THE LABOR MARKET HOLDING UP.
YOU CAN SEE STICKY INFLATION COMING THROUGH IN TERMS OF THE
INFLATION DATA WE WILL SEE MIDWEEK.
WHAT DOES THAT TELL YOU ABOUT WHEN WE SEE THE FIRST RATE CUTS
COMING THROUGH FROM THE FED? IS IT MUCH LATER THIS YEAR,
NEXT YEAR? >> I THINK THE MARKET IS
PRICING IN ONE TO TWO CUTS THIS YEAR AND I THINK THE MARKET HAS
COME CLOSER TO THE VIEW WE’VE HELD PRETTY MUCH FOR THE
ENTIRETY OF THIS YEAR. I THINK THE MARKET IS PRICING
IN FAIRLY LIKE THE FED WANTED TO.
I THINK THE ECONOMY IS ABLE TO WAIT AND THE FED IS IN A GOOD
SPOT TO WAIT AND SEE. WHAT WE HAVE SEEN FROM
INVESTORS IS A STRONG APPETITE TO RE-RISK INTO FIXED INCOME
PORTFOLIOS. IT IS NOT PUTTING US IN A
POSITION TO WAIT AND SEE IN TERMS OF WHAT CLIENTS ARE DOING
NOW. GUY: WITH THAT, A STEEPER CURVE.
ARE WE EXPECTING LONG IN BONDS TO STAY REASONABLY WHERE THEY
ARE NOW. >> EXACTLY.
WHEN IT COMES TO LONGER-TERM BONDS LIKE WE HAVE BEEN
UNDERWEIGHT LONGER DATED U.S. TREASURIES.
HAVING SAID THAT, IT SEEMS LIKE 4.5% IS LIKE A RESISTANCE LEVEL
FOR U.S. TREASURIES. HAVING SAID THAT, IN MAY, WHEN
THE 30 YEAR WENT ABOVE 5%, WE HAVE SEEN BUYERS BUYING THE DIP.
WE HAVE SEEN U.S. TREASURY SEEING RECORD FLOWS.
I DO WANT TO GIVE YOU A BALANCED ARGUMENT.
WE ARE UNDERWEIGHT THE LONG END OF THE CURVE BUT THERE ARE
PEOPLE OUT THERE THAT STILL SEE VALUE IN U.S.
TREASURIES AT THE RIGHT PRICE. WE DEFINITELY PREFER TO BE
STAYING SHORTER END OF THE CURVE AND INTERNATIONAL FIXED
INCOME. GUY: IN TERMS OF WHAT IS HAPPENING
— HOW ARE YOU THINKING OF THE TRADE TALKS THIS WEEK?
HOW HIGH ARE YOUR EXPECTATIONS FOR THIS PROVIDING A CATALYST? >> I DON’T THINK WE ARE GOING
TO SEE A BIG KIND OF REVERSAL TO WHAT WE ALREADY KNOW.
THIS WEEK, OF COURSE, UNCERTAINTY REMAINS.
WE HAVE A SERIES OF EVENTS FOR THE REST OF THE SUMMER.
TRADE TALKS DOES REMAIN UP IN THE AGENDA BUT I THINK WE HAVE
GOTTEN USED TO NAVIGATING THE UNCERTAINTY AROUND TRADE TALKS.
THAT HAS BEEN EVIDENT THROUGH BOND ETF FLOWS IN MAY.
THE SECOND LARGEST MONTH IN HISTORY WHERE PEOPLE HAVE COME
BACK INTO THE MARKET. INDICATING THAT SOME OF THE
SLOWDOWN OF THE HEADLINES FROM WHAT WAS APRIL 2 TO NOW HAS
CREATED MORE OF A, KIND OF A CALM ENVIRONMENT THAT WE ARE
NOT HEADING INTO A SIGNIFICANT SLOWDOWN IN THE WORLD ECONOMY.
GUY: WE WILL WATCH THAT SPACE VERY
CAREFULLY. THE HEAD OF EMEA ISHARES FIXED
INCOME STRATEGY AT BLACKROCK JOINING US IN THE STUDIO.
I WANT TO TAKE YOU TO WEST LONDON WHERE WE FIND THE
BRITISH PRIME MINISTER KEIR STARMER MAKING THE OPENING
ADDRESS AT TECH WEEK. LET’S TAKE A LISTEN TO WHAT HE
HAS TO SAY. >> EVERY TIME YOU SAY OVER FIVE
YEARS OR 10 YEARS, EVERYBODY SAYS TO ME, SHORTEN THAT.
IT WILL BE MORE LIKE THREE YEARS. WE WILL BRING ABOUT GREAT
CHANGE IN SO MANY ASPECTS OF OUR LIVES.
WHETHER THAT IS IN HEALTH, WHERE HAVE SEEN FOR MYSELF THE
EQUITABLE CONTRIBUTION THAT TECH AND AI CAN MAKE.
STANDING IN HOSPITAL UP IN THE MIDLANDS, TALKING TO
CONSULTANTS WHO DEAL WITH STROKES.
THEY SHOWED ME THE EQUIPMENT, THE TECHNIQUES THEY ARE USING,
USING A GUY TO ISOLATE — AI TO ISOLATE FOR STROKE VICTIMS
EXACTLY WHERE THE CLOT IS IN THE BRAIN IN A MICROSECOND OF
THE TIME IT WOULD HAVE TAKEN OTHERWISE.
BRILLIANTLY SAVING PEOPLE’S LIVES IN THAT PARTICULAR
OCCASION. SHORTLY AFTER THAT, I HAD AN
INCIDENT WHERE I WAS BEING SHOWN AI AND STETHOSCOPES
WORKING TOGETHER TO PREDICT ANY PROBLEMS ANYONE MIGHT HAVE.
WHETHER IT IS HEALTH OR OTHER SECTORS, IT IS USUALLY
TRANSFORMATIVE WHAT CAN BE DONE. LAST MONDAY, I WAS STANDING IN
SCOTLAND LAUNCHING THE STRATEGIC DEFENSE REVIEW OF THE
GOVERNMENT. THIS WAS A REVIEW I COMMISSIONED SOON AFTER WE CAME
INTO POWER. TO TELL ME WHAT ARE THE RISKS
THAT WE FACE AS A COUNTRY IN THIS NEW ERA?
WHAT ARE THE CHALLENGES, THE CAPABILITIES, AND WHAT — HOW
DO WE MAKE SURE OUR CAPABILITIES MATCH THE RISKS
AND THE CHALLENGES WE FACE AS A COUNTRY? IN THAT, TECH AND AI WERE
ABSOLUTELY CENTRAL BECAUSE AS YOU WILL PERHAPS HAVE SEEN OVER
THE LAST THREE YEARS OR MORE, DURING THIS AWFUL CONFLICT IN
UKRAINE, I HAVE BEEN BACK TO UKRAINE ON A NUMBER OF
OCCASIONS IN THAT THREE YEARS TO HAVE IN-DEPTH CONVERSATIONS
WITH PRESIDENT ZELENSKYY TO MAKE SURE THAT OUR SUPPORT IS
IN THE RIGHT PLACE. BUT I WAS REALLY STRUCK, THE
TRIP BEFORE LAST, PROBABLY SIX OR SEVEN WEEKS AGO, THE EXTENT
TO WHICH TECHNOLOGY IN A GUY WAS NOW HAVING A — AND AI WAS
HAVING A DIRECT IMPACT ON THAT CONFLICT WAS HUGE.
IN THREE YEARS OF CONFLICT, THE WAY OF WHICH THE WAY THE WAR
WAS BEING FOUGHT HAS CHANGED PROFOUNDLY.
WHAT I WANTED HARDWIRED INTO OUR DEFENSE REVIEW WAS A REAL
SENSE OF HOW AI AMTEK WOULD BE DRIVING OUR DEFENSE OF THE
FUTURE. THERE ARE SO MANY EXAMPLES
ACROSS GOVERNMENT. MY HAVE SET THE CHALLENGE TO
ALL OF MY TEAMS TO SHOW ME HOW THEY CAN USE AI NOT JUST IN THE
OUTPUT OF GOVERNMENT, NOT JUST IN THE PARTNERSHIP WITH
YOURSELVES AND OTHERS AND THE DELIVERY OF SERVICES BUT ALSO
IN THE VERY WAY WE DO GOVERNMENT.
HOW DO WE TRANSFORM WHAT WE DO? THERE ARE SO MANY EXAMPLES OF
THAT. I SPOKE TO A SOCIAL WORKER IN
DOWNING STREET AT ONE OF OUR RECEPTIONS AND SHE EXPLAINED TO
ME WITH A SMILE ON HER FACE JUST HOW AI IS SLASHING HER
PAPERWORK AND HER CASELOAD AND SHE SHOWED AND TALK TO ME
THROUGH THE WAY IN WHICH SHE’S NOT DOING HER WORK. WHAT SHE SAID TO ME WAS THIS
WAS HELPING HER TRANSFORM THE WORK THAT SHE DID BECAUSE SHE
COULD CONCENTRATE ON THE HUMAN ELEMENT OF IT.
SHE COULD USE AI AND TECH TO HELP HER WITH THE PARTS THAT
CAN BE DONE MORE QUICKLY USING TECH AND AIP TO — AND AI.
I HAVE ALWAYS SAID AI AND TECH MAKES US MORE HUMAN BUT IT IS
TRUE. WE NEED TO SAY IT BECAUSE SOME
PEOPLE OUT THERE ARE SKEPTICAL. THEY DO WORRY ABOUT AI TAKING
THEIR JOB. I KNOW FOR AN AUDIENCE LIKE
THIS, THIS IS A DEBATE THAT HAS BEEN HAD MANY TIMES AND WE NEED
TO PUSH PAST IT. FOR PEOPLE LISTENING TO US,
THEY WORRY ABOUT WILL IT MAKE THEIR LIVES MORE COMPLICATED?
EVEN FOR BUSINESSES, THE PACE OF CHANGE CAN FEEL RELENTLESS.
I KNOW YOU ALL GET THAT AND UNDERSTAND THAT BUT WHEN IT
COMES TO HARNESSING THE POWER OF THIS TECHNOLOGY, I BELIEVE
THE WAY WE WORK THROUGH THIS TOGETHER IS CRITICAL AND THAT
MEANS A PARTNERSHIP. PARTNERSHIP AT THE HEART OF
EVERYTHING WE DO IN GOVERNMENT. WORKING WITH YOU, THE YOU ARE
THE ENTREPRENEURS WILL DRIVE THIS COUNTRY FORWARD.
OUR JOB AS PARTNERS IS TO CREATE THE BEST POSSIBLE
CONDITIONS FOR YOU TO SUCCEED AND THAT IS WHY EVENTS LIKE
THIS, CONVERSATIONS WE HAVE IN THE MARGINS ARE SO IMPORTANT
BECAUSE WE CAN CREATE THE RIGHT CONDITIONS FOR YOU IF WE HAVE
THAT CONVERSATION ABOUT WHAT WE ARE DOING.
YOU ARE ABLE TO PUT YOUR FINGERPRINTS ON WHAT YOU ARE
DOING BECAUSE JUST LOOK AT THE RAW FACTS.
THIS INDUSTRY, THIS SECTOR SUPPORTS OVER 2 MILLION JOBS.
THAT’S INCREDIBLE. TAKE THIS STATISTIC. IN 2023, THE AI SECTOR GREW 30
TIMES FASTER THAN THE REST OF THE ECONOMY. 30 TIMES FASTER.
THAT IS INCREDIBLE, PARTICULARLY WHEN WE ARE
DRIVING ECONOMIC GROWTH. THIS IS ABOUT WHAT WE CAN
ACHIEVE. IT IS ABOUT WHO WE ARE AS A
NATION. WHAT SIGNAL DO WE WANT TO SEND
TO THE REST OF THE WORLD? THE SIGNAL I WANT TO SEND IS A
BRITAIN THAT ONCE AGAIN, AFTER YEARS OF CHAOS, IS A STABLE
PARTNER FOR INVESTORS. THAT BELIEVES THE FUTURE SHOULD
BE SHAPED BY OUR DEMOCRATIC VALUES.
AND THAT IN THIS VOLATILE WORLD, IT IS UNEQUIVOCALLY, A
DEFIANTLY EVEN OPEN FOR BUSINESS.
I THINK AND HOPE YOU CAN SEE THAT IN OUR APPROACH TO TRADE,
IN THE NEW DEALS WE HAVE DONE IN THE LAST FEW MONTHS.
DETERMINED AS WE ARE TO CREATE NEW MARKETS.
WHETHER THAT IS IN INDIA, THE U.S. OR EUROPE.
ALL AREAS WE HAVE MADE PROGRESS RECENTLY.
YOU CAN SEE IT IN OUR OPENNESS TO INVESTMENT AS WELL.
ON THAT FRONT, I AM REALLY PLEASED TO WELCOME WHAT I SEE
AS YET ANOTHER VOTE OF CONFIDENCE IN BRITAIN TODAY
WITH THE ANNOUNCEMENT THAT LIQUIDITY WILL BEAST — BASED A
HEADQUARTERS RIGHT HERE IN LONDON.
THAT IS A 1.5 — THANK YOU. [APPLAUSE] THAT IS A 1.5 BILLION POUND
INVESTMENT INTO OUR ECONOMY. WHICH MEANS BETTER ACCESS TO
FINANCE FOR ENTREPRENEURS RIGHT ACROSS THE COUNTRY.
IT IS A VOTE OF CONFIDENCE IN OUR AI OPPORTUNITIES ACTION
PLAN AS WELL. WE PUT THAT PLAN OUT OF THE
BEGINNING OF THE YEAR. WE ARE REALLY PROUD OF IT.
50 RECOMMENDATIONS. ALL OF THEM ACCEPTED BY THE
GOVERNMENT. AT THE HEART OF IT IS
PARTNERSHIP IN ACTION. IT SHOWS OUR AMBITION THAT WE
ARE DETERMINED TO BE THE BEST STATE PARTNER FOR TECH
ENTREPRENEURS ANYWHERE IN THE WORLD.
THAT IS THE AMBITION I HAVE SET FOR MY GOVERNMENT.
ON THAT FRONT, I CAN ANNOUNCE TODAY ALSO THAT WE ARE
COMMITTING AN EXTRA ONE BILLION POUNDS WORTH OF FUNDING TO
SCALE UP OUR COMPUTER POWER BY A FACTOR OF 20. [APPLAUSE]
YOU KNOW HOW IMPORTANT THAT IS. THAT IS A HUGE INCREASE. A HUGE INCREASE IN THE SIZE AND
POWER OF BRITAIN’S AI ENGINE, WHICH MEANS IN THIS GLOBAL
RACE, WE CAN BE IN AI MAKER AND NOT AN AI TAKER.
MORE IMPORTANTLY, THAT WE HAVE THE DIGITAL INFRASTRUCTURE THAT
WE NEED TO MAKE SURE AI IMPROVES OUR PUBLIC SERVICES
BECAUSE WE DO HAVE A DEFINING MISSION ON THAT IN THE PLAN.
A RESPONSIBILITY TO HARNESS THIS UNPRECEDENTED OPPORTUNITY
AND TO USE IT TO IMPROVE THE LIVES OF WORKING PEOPLE.
AND THIS IS A SHARED MISSION. WE ARE A MISSION DRIVEN
GOVERNMENT BUT THIS IS A SHARED MISSION BECAUSE THAT SOCIAL
FEAR THAT I WAS TALKING ABOUT A MOMENT AGO, TRUST ME, I THINK
THAT IS THE CHALLENGE FOR ADOPTION.
I THINK IT IS A FAR GREATER CHALLENGE THAN THE REGULATORY
BARRIER, ALTHOUGH THAT CAN BE QUITE A CHALLENGE.
BUT IT IS AN AREA WHERE THE GOVERNMENT CAN HELP.
WHERE WE CAN DO OUR BIT IN THIS PARTNERSHIP. IF WE TAKE PLANNING, FOR
EXAMPLE, WHICH IS A HUGE PRIORITY FOR THIS GOVERNMENT,
WE ARE GOING TO BUILD MORE HOMES, MORE LABS, MORE DATA
CENTERS. AND WE ARE GOING TO DO IT MUCH,
MUCH MORE QUICKLY. THE PLANNING AND INFRASTRUCTURE
BILL GOING THROUGH PARLIAMENT AT THE MOMENT IS A REAL GAME
CHANGER. EACH OF YOU IN THIS ROOM WILL
KNOW HOW IMPORTANT IT IS TO CHANGE OUR RULES ON PLANNING
AND INFRASTRUCTURE AND THE REGULATORY ENVIRONMENT.
WHERE THAT CAN THEN DRIVE GROWTH AND BUILDING, WHAT A
DIFFERENCE THAT WILL MAKE. THE HUMAN THAT SITS THERE WITH
THE TECH AND AI BECAUSE THE SECURITY OF HAVING AN
AFFORDABLE HOME IS USUALLY IMPORTANT.
I COME FROM A WORKING-CLASS BACKGROUND.
AT TIMES, WE STRUGGLED AS A FAMILY TO MAKE ENDS MEET BUT WE
OWNED OUR OWN HOME AND THAT GAVE ME A SENSE OF SECURITY.
A BASE CAMP, IF YOU’D LIKE, ON WHICH I COULD BUILD MY LIFE, MY
OPPORTUNITIES AND MY ASPIRATIONS.
I WANT THAT TO BE THERE FOR EVERYONE IN THE COUNTRY.
THAT BASE CAMP AND AI CAN HELP ON THIS.
THIS IS HOW WE EXPLAIN AND LEAD PEOPLE DOWN THIS TRANSFORMATIVE
PATH OF AI. IN THAT WAY, AND PUSHING
FORWARD, WE HAVE DEVELOPED A POWERFUL NEW TOOL.
WE HAVE DONE THIS IN-HOUSE. AS A GOVERNMENT, WE HAVE TAKEN
ON THE CHALLENGE AND DEVELOPED IN-HOUSE TO PROVE THAT
GOVERNMENTS CAN INNOVATE. WE USE THAT WORD ALL THE TIME.
SOME PEOPLE DON’T ASSOCIATED WITH GOVERNMENT.
WE HAVE DEVELOPED WHAT WE CALL EXTRACT.
THIS IS BEING TRIALED IN COUNCILS IN WESTMINSTER AND BET
WORTH. WHAT IT DOES IS IT TAKES OLD
HANDWRITTEN PLANNING DOCUMENTS AND PUTS THEM INTO DIGITAL FORM
IN SECONDS. JOBS THAT WHETHER OTHERWISE
WOULD HAVE TAKEN HOURS AND HOURS ARE DONE IN SECONDS.
100 PLANNING RECORDS A DAY. THE AVERAGE UP UNTIL NOW IS
FIVE. YOU CAN SEE IT IS A HUGE PRODUCTIVITY BOOST. WE WANT TO
ROLL THAT OUT ACROSS THE COUNTRY. THAT DOES NOT SHOW THE
GOVERNMENT WILL INNOVATE, IT ALSO MEANS FASTER PLANNING
DECISIONS WHICH WILL COME AS A RELIEF TO MANY PEOPLE IN THIS
ROOM AND BEYOND. AI AND GROWTH IN ANY BUSINESS
THAT IS SEEKING TO GROW. IT IS MONEY SAVED FOR COUNSEL
SO THEY CAN SPEND THEIR MONEY ON OTHER THINGS.
AND IT TURNS INTO MORE GROWTH AND MORE INVESTMENT.
MOST OF ALL, IT SPEEDS UP THE FUTURE THAT WE NEED.
AI INNOVATION MAKING A DIFFERENCE FOR WORKING PEOPLE.
THE SAME IS TRUE ACROSS THE PUBLIC REALM.
WE ARE LOOKING AND HOW CAN AI SPEED UP DISCHARGES FROM
HOSPITALS. USUALLY IMPORTANT. WE HAVE LONG WAITING LISTS THAT
ARE HOSPITALS. OUR HOSPITALS ARE BUSY.
ONE OF THE PROBLEMS IS HOW DO WE GET PEOPLE OUT THE BACK DOOR
MORE QUICKLY? AI CAN HELP WITH THAT.
SAME WITH THE ASYLUM BACKLOG. HOW CAN AI AND TECH HELP US?
OR TEACHERS, HELPING THEM PERSONALIZE THE LESSONS FOR
THEIR PEOPLES. USING THEIR TIME, USING THE
MORE HUMAN. GIVING THAT INTERACTION SO THAT
EVERY CHILD GETS THE BEST POSSIBLE CHANCE IN LIFE.
WHAT A DIFFERENCE A GOOD TEACHER PERSONALIZING WHAT THEY
DO CAN MAKE TO SO MANY CHILDREN. IN EVERY CASE, WE CAN SHOW AI
INNOVATION MAKING A DIFFERENCE FOR WORKING PEOPLE.
BUT, IF WE ARE TRULY TO SUCCEED IN THIS MISSION, THEN ONE OF
THE BIGGEST BARRIERS IS SKILLS AND NEW WILL HAVE DEBATED THIS
MANY TIMES. THERE IS NOT A CONVERSATION
ABOUT AI AND TECH AND GROWTH AND INVESTMENT IN BUSINESS THAT
DOES NOT JUST COME BACK TO THIS BUSINESS OF SKILLS.
A KEY CONCERN IN ANY BUSINESS IN TECHNOLOGY, ANY BUSINESS
PRETTY WELL ACROSS THE COUNTRY. ALSO, ONE OF THE GREAT WORRIES
FOR WORKING PEOPLE. IT’S THE SAME FOR ANY PARENT.
ALWAYS, YOUR NUMBER ONE THOUGHT IS HOW WILL THIS AFFECT MY
CHILDREN? WHAT DOES IT MEAN FOR THEIR
FUTURE? TODAY, I AM REALLY DELIGHTED TO
ANNOUNCE WHAT IS A STEP CHANGE IN HOW WE TRADE HOMEGROWN
TALENT FOR THE AI AGE. A PARTNERSHIP WITH 11 MAJOR
COMPANIES TO TRAIN 7.5 MILLION WORKERS IN AI BY 2030.
[APPLAUSE] AND WE ALSO HAVE A COMMITMENT
FROM NVIDIA TO PARTNER ON NEW AI TALENT PIPELINE.
JENSEN WILL BE IN CONVERSATION NOW AND WE ARE SO GRATEFUL FOR
THE PARTNERSHIP. THAT ALLOWS US TO EXPAND THEIR
LAB IN BRISTOL AND WILL MAKE A HUGE DIFFERENCE TO OPPORTUNITY
AND JOBS IN THE SOUTHWEST AND BEYOND.
IN THE SPIRIT OF PARTNERSHIP, WE ARE ALSO GOING TO BRING THE
FULL POWERS OF GOVERNMENT TO BEAR WITH THE NEW TECH FIRST
TRAINING PROGRAM. THAT IS UP TO ONE MILLION YOUNG
PEOPLE TRAINED IN TECH SKILLS WHICH WILL BE SO CRUCIAL FOR
THEIR FUTURE. 185 MILLION POUND INVESTMENT
EMBEDDING AI RIGHT THROUGH OUR EDUCATION SYSTEM, STARTING IN
OUR SECOND JAGGERY SCHOOLS — SECONDARY SCHOOLS AND
UNIVERSITIES. A NEW SCHOLARSHIP PROGRAM FOR
HIGHFLYING STUDENTS. SUPPORTING THE BEST AND
BRIGHTEST POST GRADS SO THEY CAN FOCUS THEIR RESEARCH ON THE
NEXT FRONTIER. FROM SCHOOL ALL THE WAY THROUGH.
ON TOP OF THAT, AND EXTRA SUPPORT FOR SMALL BUSINESSES
AND ENTREPRENEURS. USUALLY IMPORTANT.
SO THEY CAN RECRUIT THE TECHNOLOGY SKILLS THAT THEY
NEED. AND THIS IS A PACKAGE I THINK
THAT WILL MAKE A MASSIVE DIFFERENCE TO THE ASPIRATIONS
OF WORKING PEOPLE. AT THE END OF THE DAY, THAT IS
WHAT THIS MUST BE ABOUT. I WANT YOUNG PEOPLE IN THE POOR
PARTS OF MY CONSTITUENCY, AND I AM THINKING A PARTICULAR OF A
PLACE CALLED SOMERS TOWN. BETWEEN KINGS CROSS WHERE THERE
IS SO MUCH OF THAT TECH, ENTREPRENEUR, AI BRILLIANCE,
THERE ARE CHILDREN IN SOMERS TOWN A STONES THROW A WHO LOOK
UP THE CLASSROOM WINDOWS AND DON’T NECESSARILY SEE THAT THEY
CAN MAKE A JOURNEY THAT THAT STONE WOULD TAKE IF THEY THREW
IT AT KINGS CROSS. I WANT THEM TO LOOK OUT AT THE
TECHNOLOGY SECTOR AND FEEL, YES, I CAN BE PART OF THAT
SUCCESS. THIS COULD BELONG TO ME. SO, THIS WORK WE ARE DOING WITH
SCHOOLS AND UNIVERSITIES AND COLLEGES IS SO IMPORTANT.
TO MAKE THEM FEEL LIKE THEY HAVE A ROLE, AN ASPIRATION.
YOU CANNOT ASPIRE TO DO SOMETHING UNLESS YOU CAN SEE IT
AND FEEL IT AND UNDERSTAND WHAT IT IS.
IN THIS COUNTRY, THE TECHNOLOGY WE BUILD NEEDS TO BE BUILT IN
THAT WAY. WHILST I AM ON SOMERSTOWN, I
WANT TO GIVE A SHORT EXAMPLE AND PRAISE THE TECH SECTOR FOR
INVESTING. I HAVE KNOWN THIS CHALLENGE OUT
MANY TIMES TO SAY HOW DO YOU MAKE THE CHILDREN IN THE
POOREST PART OF MY CONSTITUENCY ASPIRE TO WORK IN YOUR SECTOR?
OPENING A COMPASS TEHERE TAKING UP — A CAMPUS THERE TAKING UP
THAT CHALLENGE. IT IS RIGHT NEXT TO THE
SECONDARY SCHOOL WHERE I ENVISAGED THOSE STUDENTS WHO
WOULD NOT NECESSARILY SEE THEIR FUTURE IN AI AND NOW THAT
CAMPUS IS RIGHT NEXT TO THEIR SCHOOL SO THEY CAN DO THOSE
LESSONS. THEY CONCEDED EVERY DAY.
A REALLY GOOD EXAMPLE AND THANK YOU TO THE TECH SECTOR FOR
STEPPING UP TO THAT CHALLENGE. NOW, WE NEED TO GO FURTHER.
BY THE END OF THIS PARLIAMENT, WE SHOULD BE ABLE TO LOOK EVERY
PARENT IN THE EYE, IN EVERY REGION — GUY:
THE BRITISH PRIME MINISTER SPEAKING AT TECH WEEK.
WE WILL RETURN TO THAT CONVERSATION IN JUST A MOMENT.
HE GOING TO BE SITTING DOWN WITH JENSEN HUANG, WHO’S IN THE
FRONT OF THAT AUDIENCE. THE U.K. INVESTMENT MINISTER AND FORMER
CEO OF DARK TRACE WILL BE JOINING HIM.
IF YOU WOULD LIKE TO CARRY THIS ON, YOU CAN DO SO.
HE’S AVAILABLE ON LIVE GO ON YOUR BLOOMBERG TERMINAL.
LET’S TURN OUR ATTENTION TO THE WIDER PICTURE FOR THE U.K.
NAI PICTUR — AND AI PICTURE. MATT JOINS US NOW.
THE PRIME MINISTER JUST WRAPPING UP.
IN TERMS OF THE CHALLENGE HE FACES INJECTING INVESTMENT INTO
THE U.K., WHAT IS IT? MATT: THERE ARE LOTS OF COMPETING
PARTS OF THE WORLD WHERE INVESTMENT IS GOING.
WE HEARD AND NVIDIA TALK ABOUT THIS. I THINK FROM THE NVIDIA
PERSPECTIVE, YOU ARE LOOKING FOR COUNTRIES LIKE THE U.K.
TO INVEST THEIR MONEY INTO AI. AND THE U.K.
GOVERNMENT WANTS AND PUT MONEY IN. I THINK BOTH WILL BE A BIT
DISAPPOINTED BY WHAT WE HEAR TODAY. GUY:
LET’S LISTEN IN AND FIND OUT WHETHER OR NOT WE WILL BE
DISAPPOINTED. LET’S TAKE YOU BACK TO WEST
LONDON, BACK TO OLYMPIA. THE INVESTMENT MINISTER IS
INTRODUCING JENSEN HUANG AND THE PRIME MINISTER. . >> WE WERE DISCUSSING THIS
EARLIER ON TODAY. SOMETIMES IN THESE AUDIENCES,
WE HAVE THIS CONVERSATION ABOUT WHAT DOES IT MEAN FOR PEOPLE IN
THEIR LIVING ROOM, IN THEIR KITCHEN?
AND CONCERNED ABOUT HOW THEY SEE IT. THE STARTS ON AI AND TECH
REALLY MATTERS. AIELLO IS ASK MYSELF WHICH — I
ALWAYS ASK MYSELF WHICH OF THE TWO TYPES ARE YOU?
ARE YOU SOMEONE WHO LEANS IN AND SEES THESE FANTASTIC
OPPORTUNITIES OR DO YOU LEAN OUT AND SAY THIS IS A BIG RISK.
I THINK WE NEED TO LEAN IN. I THINK THIS IS BRILLIANT,
TRANSFORMATIVE. I HAVE MENTIONED HEALTH BECAUSE IN A WAY, THAT BRINGS A LIFE
FOR THE PEOPLE. ALSO THE EXAMPLE OF THE
TEACHERS AND WORKERS. OVERBURDENED, BUT WANT TO USE
THE HUMAN BIT OF WHAT THEY DO TO BETTER AFFECT.
THEY CAN USE AI AND TECH TO DO IT. OR IN THE DEFENSE SECTOR. WHAT I SAID JUST NOW IS REALLY
IMPORTANT BECAUSE VERY MANY PEOPLE SAY TO ME IN THE
CONVERSATIONS I HAVE ABOUT AI AND TECH IS THE REGULATORY
ENVIRONMENT. THE PLANNING, INFRASTRUCTURE,
THE REGULATORY BODIES HOLDING US BACK. THAT IS TRUE.
THE MORE I HAVE TRIED TO GET STUFF DONE AS GOVERNMENT, THE
MORE I HAVE SHARED YOUR FRUSTRATION.
I DO THINK THERE IS THIS ALMOST CULTURAL QUESTION.
HOW DO WE LEAD PEOPLE ON THIS PATH?
THIS CHANGE IS GOING TO HAPPEN. IT IS GOING TO TRANSFORM OUR
LIVES. WE WILL LOOK BACK AND SEE THIS
IS A USUALLY IMPORTANT ERA. I GENUINELY BELIEVE THAT OUR
JOB — OUR JOINT JOBS, WE HAVE TO DO IT WITH YOU, IS TO LEAD
IN THIS PERIOD. AND TO SHOW PEOPLE A HUGE
OPPORTUNITY AND HOW IT WILL BRING MORE SECURITY FOR THEIR
LIVES. R WE MUST ALWAYS STEP UP TO
THAT WE CAN ONLY DO IT IN PARTNERSHIP.
I DON’T THINK THE GOVERNMENT CAN DO IT ON ITS OWN.
I THINK IT HAS TO BE DONE TOGETHER.
FOR EVERYBODY WHO WANTS TO CAI AND TECH GO AS FAR AS WE ALL
DO, WE HAVE TO BEAR THAT RESPONSIBILITY. JENSEN, WE WERE JUST TALKED
ABOUT THIS ABOUT AN HOUR AGO. >> FIRST OF ALL, I WANT TO SAY
YOU HOSTED A TERRIFIC EVENT YESTERDAY.
BROUGHT TOGETHER THE AI TECH ENTREPRENEURS, MANY THAT I WORK
WITH. SO MANY FROM YOUR CABINET WHERE
THERE. URGING THEM, SUPPORTING THEM
AND ENCOURAGING THEM, SHOWING THEM WE ARE INTEREST, YOUR
KNOWLEDGE OF THE SPACE, AND YOUR COMMITMENT TO HELPING THEM.
I THOUGHT IT WAS A FANTASTIC DAY. IT WAS GREAT TO SEE DENNIS
THERE AND ERIC SCHMIDT THERE, MY FRIENDS. ALEX FROM WAVE. THERE WERE SO MANY COMPANIES
HERE IN THE U.K. REALLY EXCITED TO SEE YOUR
COMMITMENT TO THEM. THIS IS AN EXTRA ORDINARY
MOMENT. YOU ARE RIGHT, WE HAVE TO LEAN
IN. THERE’S NO QUESTION THAT AI IS
INCREDIBLE TECHNOLOGY. EVERYBODY TALKS ABOUT HOW IT
CAN UNDERSTAND INFORMATION OF ANY KIND, GENERATE INFORMATION
OF ALMOST ANY KIND. AI CAN REASON AND THINK AND
SOLVE PROBLEMS AND USE TOOLS. WE KNOW WE WILL BE MORE
PRODUCTIVE. WE KNOW THAT WE WILL BE MORE
SECURE BECAUSE AI IS SMART. IT WILL BE BETTER CYBERSECURITY
FOR US. WE KNOW IT WILL BE SAFER BECAUSE AI IS SMART SOFTWARE
AND KEEP CARS MORE SAFE. WE KNOW THESE THINGS.
BUT THE THING THAT IS QUITE EXTRAORDINARY AND AN INCREDIBLE
OPPORTUNITY FOR THE U.K. IS THAT AI IS BOTH A
TECHNOLOGY, BUT IT IS ALSO AN INFRASTRUCTURE.
IT IS AN INFRASTRUCTURE BECAUSE IT AFFECTS SO MANY INDUSTRIES
THEM ULTIMATELY. IT AFFECTS HEALTH CARE AND
GOVERNMENT AND EDUCATION AND MANUFACTURING AND FINANCIAL
SERVICES. BECAUSE THIS TECHNOLOGY IS SO
BROAD AND SO TRANSFORMATIVE TO EVERY SINGLE INDUSTRY, IT WILL
BE CONSIDERED INFRASTRUCTURE JUST AS ELECTRICITY WAS
INFRASTRUCTURE, JUST AS INFORMATION, CONNECTIVITY THAT
CAME ABOUT BECAUSE OF THE INTERNET IS INFRASTRUCTURE.
WE WILL HAVE A NEW INFRASTRUCTURE AND IT IS CALLED
ARTIFICIAL INTELLIGENCE. IT IS VITAL THAT WE INVEST IN
THIS INFRASTRUCTURE, AND WITH YOUR SUPPORT, WE CAN DO THAT. >> JUST CHANGING THE LANGUAGE
IS USUALLY IMPORTANT IN TERMS OF THE COMMITMENT THAT WE MAKE
AND HOW TO WORK TOGETHER. AS I SAID A FEW MONTHS AGO, THE
SPEED OF WHICH THE CHANGE IS GOING TO HAPPEN AND PERSUADING
OURSELVES OF THE TIME FRAMES WE WOULD NORMALLY EXPECT FOR A
SHORT AND THERE HE CHANGES HAVE TO BE TRUNCATED. YOU CAN SEE IT.
RIGHT BEFORE YOUR EYES AND WHAT WE ARE ABLE TO DO AS A
GOVERNMENT. HOW WE ARE LOOKING ACROSS ALL
OF THE FUNCTIONS OF GOVERNMENT AND AGENCY.
WE HAVE THE SECRETARY OF STATE WHO IS CHARGED WITH NOT JUST
RUNNING HIS DEPARTMENT, BUT LOOKING ACROSS ALL DEPARTMENTS.
I’VE ASKED THEM TO GO INTO EVERY SINGLE DEPARTMENT OF
GOVERNMENT AND TAKE UP THE CHALLENGE OF HOW CAN YOU USE AI
AND TECH TO TRANSFORM WHAT YOU ARE DOING, ALL IS THE THE
DELIVERY ON THE OTHER END. THAT IS THE STATEMENT OF INTENT
THE WAY WE WANT TO OPERATE. >> I LOVE HEARING ABOUT HOW IT
IS REALLY DRIVING THAT ADOPTION AND WE TALKED ABOUT THAT
INVESTMENT IN TERMS OF THE INFRASTRUCTURE WE NEED AND THE
OPPORTUNITY IN THE U.K. HOW ARE WE THINKING ABOUT THE
INVESTMENT IN THE SKILLS PEACE AND HOW CAN YOU CREATE THE
SKILLS THAT WE NEED? >> I HAVE SAID ABOUT THIS A
MOMENT AGO. I THINK THE SKILLS CHALLENGE
OPERATES AT A NUMBER OF DIFFERENT LEVELS.
THIS OBVIOUSLY THIS BASIC QUESTION, WHICH IS CAN A SECTOR
GET THE SKILLS AND NEEDS IN THE TIME THE NEEDS THEM?
THAT IS WHY WE HAVE BEEN ABLE TO ANNOUNCE TODAY IS SO
IMPORTANT IN TERMS OF THE SHEER NUMBER OF PEOPLE WE CAN WORK
WITH ACROSS BUSINESSES, OF ALL DIFFERENT SIZES.
THIS IS OFTEN MORE OF A STRUGGLE FOR SMALLER BUSINESSES
IN TERMS OF GETTING THE RIGHT SKILLS. SO, WHAT WE SET OUT TODAY IN
RELATION TO THE 7.5 MILLION PEOPLE WHO HAVE BEEN TRAINED
FROM DIFFERENT BACKGROUNDS AND DIFFERENT JOBS IN AI, USUALLY
IMPORTANT. I’M PERSONALLY VERY EXCITED
ABOUT THE INITIATIVE IN RELATION TO OUR SCHOOLS AND
UNIVERSITIES AND POST GRADS BECAUSE I THINK THAT TRAINING
YOUNG PEOPLE EARLIER ON IN AI AND TECH MEANS THEY WILL
OBVIOUSLY BE BETTER SKILLED AS THEY COME INTO WORK, BUT ALSO
THEY WILL BE MUCH BETTER AT IT THAN US.
I HAVE A 16-YEAR-OLD BOY AND 14-YEAR-OLD GIRL, AND THEY
ALREADY UNDERSTAND AI AND TECH IN A WAY THAT IS REALLY
DIFFICULT TO HAVE CONCEIVED OF A DECADE AGO.
TO GET THEM LEARNING AT SCHOOL, I THINK, WILL GIVE THEM THAT
SPARK. I AM A BIG BELIEVER. THIS IS MY SCHOOL STORYR —
OFTEN WE ASKING PEOPLE WHAT DO YOU WANT TO DO WHEN YOU GROW UP
OR WHAT DO YOU WANT TO DO FOR A LIVING OR A CAREER?
WHATEVER IT MAY BE. I GENUINELY THINK IT IS HARD
FOR YOUNG PEOPLE TO ANSWER THAT QUESTION IF THEY HAVE NOT BEEN
EXPOSED TO THINGS LIKE AI AMTEK BECAUSE YOU CANNOT ASPIRE TO DO
SOMETHING IF YOU DON’T REALLY KNOW WHAT IT IS OR IT IS
MYSTERIOUS AND YOU THINK IT IS FOR OTHER PEOPLE.
THAT IS ONE OF THE BIGGEST INHIBITORS FOR ME.
CHILDREN WHO THINK THAT IS FOR OTHER CHILDREN, NOT REALLY FOR
ME. BY DOING WHAT WE ARE DOING IN
SCHOOLS, WE ARE OPENING THIS OUT NOT JUST FOR BUSINESSES IN
THE SECTOR TO HAVE THE BEST TUNNEL COMING INTO THE PIPELINE
BUT FOR YOUNG PEOPLE TO BE THE BRILLIANT NEXT-GENERATION. >> WE WILL GET TO A
NEXT-GENERATION. FIVE YEARS AND THEY KNOW FAR
MORE THAN WE DO. THAT IS REALLY EXCITING. >> YOU ARE ABSOLUTELY RIGHT.
I WOULD SAY — THIS IS A VERY IMPORTANT CONCEPT, AI IS THE
GREAT EQUALIZER. LET ME EXPLAIN WHY.
FOR THE LAST 50 YEARS, 60 YEARS, COMPUTER SCIENCE BECAME
A FIELD OF SCIENCE AND IT WAS AVAILABLE TO TENS OF MILLIONS
OF PEOPLE OUT OF BILLIONS OF PEOPLE.
THIS TECHNOLOGY WAS HARD TO USE. WE HAD TO LEARN PROGRAMMING
LANGUAGES, ARCHITECT IT, DESIGNED THESE COMPUTERS THAT
ARE VERY COMPLICATED. TENS OF MILLIONS OF PEOPLE WERE
ABLE TO BENEFIT FROM THIS PARTICULAR FIELD.
NOW, ALL OF A SUDDEN, THERE’S A NEW PROGRAMMING LANGUAGE.
THIS NEW LANGUAGE IS CALLED HUMAN. ANYBODY — MOST PEOPLE DON’T
KNOW C++, VERY FEW PEOPLE KNOW PYTHON. EVERYBODY KNOWS HUMAN.
THE WAY YOU PROGRAM A COMPUTER TODAY TO ASK THE COMPUTER TO DO
SOMETHING FOR YOU, EVEN WRITE A PROGRAM, GENERATE IMAGES, WRITE
A POEM, JUST ASK IT NICELY. THE THING THAT IS QUITE AMAZING
IS THE WAY YOU PROGRAM AN AI IS LIKE THE WAY YOU PROGRAM A
PERSON. YOU SAY YOU’RE AN INCREDIBLE
POET. YOU’RE DEEPLY STEEPED IN SHAKESPEARE AND I WOULD LIKE
YOU TO WRITE A POEM TO DESCRIBE TODAY’S KEYNOTE. WITHOUT VERY MUCH EFFORT, THIS
AI WOULD HELP YOU GENERATE SUCH A WONDERFUL POEM.
WHEN IT GENERATES IT FOR YOU, YOU CAN SAY LIKE I FEEL LIKE
YOU CAN DO EVEN BETTER AND IT WITH THINK ABOUT IT AND COME
BACK AND SAY, IN FACT, I CAN DO BETTER AND IT DOES DO A BETTER
JOB. THIS WAY OF INTERACTING WITH
COMPUTERS IS SOMETHING ALMOST ANYBODY CAN DO.
I ENCOURAGE EVERYBODY TO ENGAGE IN. AS THE PRIME MINISTER SAID, ALMOST EVERY CHILD IS ALREADY
DOING THAT THEMSELVES NATURALLY AND THIS WILL BE TRANSFORMATIVE.
>> IT IS SUCH AN INTERESTING WAY OF LOOKING AT IT IN TERMS
OF THAT SKEPTICISM THAT SOME PEOPLE HAVE.
IT IS HUMAN NATURE ALMOST IN TERMS OF CHANGE. AS AN EQUALIZER AND AS A HUMAN
EQUALIZER, THAT MEANS IT CAN OPERATE ON DIFFERENT LEVELS FOR
DIFFERENT PEOPLE. >> ANYBODY CAN LEARN TO PROGRAM
AN AI. >> I FIND IT INCREDIBLE THAT
CHILDREN OF TODAY, WHEN THE BECOME GRANDPARENTS AND THEN
REFLECT BACK ON THE EARLIEST MOST ANTIQUATED PIECE OF THE
TECHNOLOGY THEY CAN POSSIBLY IMAGINE, IT IS THE TECHNOLOGY
THAT WE ARE SO EXCITED ABOUT TODAY AND I LOVE THAT PACE OF
CHANGE IN THE SKILLS AS WITH INC. ABOUT THAT TRANSITION. >> THERE THE THING IS BEING
CLEAR THAT HERE IN THE UNITED KINGDOM, WE WANT TO ATTRACT THE
BEST TALENT IN THE WORLD. I THINK IT IS REALLY IMPORTANT
THAT IS A MESSAGE WE ARE CLEAR ABOUT, PARTICULARLY AT THE
MOMENT. THAT IS AN IMPORTANT PART OF
TECH WEEK AS WELL. >> LET ME DRAW ON THAT PIECE
MORE. IF WE THINK ABOUT AI AND THINK
ABOUT BUILDING ALL THIS GREAT INFRASTRUCTURE WE WILL NEED TO
SUPPORT THE NEXT GENERATION OF AI COMPANIES, SOMETHING WE GET
VERY EXCITED ABOUT. YOU CANNOT JUST BUILD IT, YOU
ALSO HAVE TO USE IT. HOW DO WE CREATE AN AI
ECOSYSTEM AND DRIVE THE BIGGEST IMPACT FROM THE OPPORTUNITY
THAT AI PRESENTS IN THE U.K.? >> THE PRIME MINISTER AND I
WERE TALKING YESTERDAY. I USE THIS WORD AND I WOULD
LIKE TO USE IT AGAIN. U.K. IS IN A GOLDILOCKS CIRCUMSTANCE.
IN FACT, U.K. IS SINGULAR. IN ANY OTHER REGION, IT IS
SINGULAR IN THIS CONDITION I AM ABOUT TO DESCRIBE. U.K.
HAS ONE OF THE RICHEST AI COMMUNITIES ANYWHERE ON THE
PLANET. THE DEEPEST THINKERS, THE BEST
UNIVERSITIES, OXFORD, CAMBRIDGE, IMPERIAL COLLEGE.
AMAZING STARTUPS. I MENTIONED WAVE. 11 LABS.
INCREDIBLE THINKERS IN COMPUTER SCIENCE.
REALLY EXCELLENT DIGITAL BIOLOGY.
OF COURSE, THE DISCOVERY OF DNA WAS HERE.
INCREDIBLE RESEARCH COMMUNITY. THE SECOND IS THE THIRD-LARGEST
AI VENTURE CAPITAL INVESTMENT ANYWHERE IN THE WORLD.
THE THIRD-LARGEST. THE LARGEST OF THE TWO, UNITED STATES AND
CHINA, IS FAIRLY OBVIOUS. THE U.K.
IS THE LARGEST AI INVESTMENT AREA ANYWHERE ELSE IN THE WORLD.
BETWEEN THESE TWO IDEAS THAT YOU ARE RICH WITH GREAT
COMPUTER SCIENTISTS, IT IS A FANTASTIC PLACE FOR VC’S TO
INVEST. THE ECOSYSTEM IS REALLY PERFECT FOR TAKE OFF.
IT IS JUST MISSING ONE THING. IT IS SURPRISING.
THIS IS THE LARGEST AI ECOSYSTEM IN THE WORLD WITHOUT
ITS OWN INFRASTRUCTURE, WHICH IS THE REASON WHY WE ARE
TALKING ABOUT IT SO MUCH. WHICH IS THE REASON WHY THE
PRIME MINISTER’S ANNOUNCEMENT OF INVESTING IN COMPUTING, 20
TIMES MORE COMPUTING IS SUCH A BIG DEAL. IF YOU WERE A PARTICLE
PHYSICIST, YOU WOULD NEED THE ACCELERATOR.
IF YOU ARE AN ASTRONOMER, YOU NEED A RADIO TELESCOPE.
EACH ONE OF THESE FIELDS OF SCIENCE NEEDS ITS OWN
INSTRUMENT IF YOU ARE IN THE WORLD OF AI, USE MACHINE
LEARNING. YOU CANNOT DO MACHINE LEARNING
WITHOUT A MACHINE. THE ABILITY TO BUILD THESE AI
SUPERCOMPUTERS IN THE U.K. WILL NATURALLY ATTRACT MORE
STARTUPS. IT WILL NATURALLY ENABLE ALL OF
THE RICH ECOSYSTEM OF RESEARCHERS HERE TO DO THEIR
LIFE’S WORK. I THINK IT IS INCREDIBLE PLACE
TO INVEST. I WILL INVEST HERE. AS MANY IN THE LOCAL —
[APPLAUSE] THE U.K.
IS SUCH A GREAT PLACE TO INVEST BECAUSE OF ALL THE THINGS I
JUST SAID. WE ARE GOING TO START OUR AI
LAB, THAT YOU MENTIONED. WE ARE GOING TO PARTNER WITH
U.K. TO UPSCALE THE ECOSYSTEM OF DEVELOPERS INTO THE WORLD OF AI.
WE ARE GOING TO INVEST IN HELPING START OFF THE AI
ECOSYSTEM OF INFRASTRUCTURE. ONCE WE GET THE FLYWHEEL GOING,
THEN RESEARCH, STARTUPS, BUSINESSES, MORE CONSUMPTION OF
INFRASTRUCTURE, INFRASTRUCTURE ENABLES MORE RESEARCH.
MORE RESEARCH, MORE BREAKTHROUGHS, MORE COMPANIES.
THAT FLY WE WILL START TAKING OFF. IT IS ALREADY QUITE LARGE.
WE HAVE TO GET THAT FLYWHEEL GOING. P.M. STARMER:
THE CONFIDENCE IT GIVES WHEN YOU EXPLAIN IN THAT WAY IS HUGE
FROM OUR POINT OF VIEW AND WE ARE PLEASED TO BE SEEN THAT WAY.
THANK YOU SO MUCH FOR THAT VOTE OF CONFIDENCE IN THE INVESTMENT.
TO THE WIDER GROUP HERE, I THINK THIS QUESTION OF THE
ECOSYSTEM. US SHOWCASING WHAT WE HAVE, IT
IS VERY UN-BRITISH TO SHOWCASE WHAT WE HAVE WHAT YOU NEED TO
SHOWCASE WHAT WE HAVE. ALSO TO HAVE THIS IS A TWO-WAY
CONVERSATION. THAT ECOSYSTEM IS NOT SOMETHING
THAT, IN A WAY, THE GOVERNMENT HAS TO UNDERSTAND AND SIT ON A
PLATFORM AND SAY TO YOU. IT IS SOMETHING THAT IS TWO-WAY.
ALMOST EVERYTHING WE HAVE IN THE ACTION PLAN THAT WE
PRODUCED IN JANUARY OF THIS YEAR WAS A RESULT OF
CONVERSATIONS WITH PEOPLE IN THIS ROOM AND BEYOND THIS ROOM.
NOTHING WAS PLUCKED FROM THE SKY. IT WAS ALL PART OF A
CONVERSATION. THAT IS THE WAY IN WHICH WE DO
PARTNERSHIP. PARTNERSHIP IS NOT JUST TO
PEOPLE OR TWO ENTITIES TRYING TO DO THE SAME THING.
A PARTNERSHIP IS WHERE TWO OR MORE BODIES COME TOGETHER,
UNDERSTANDING HOW THEY COMPLEMENT EACH OTHER.
HOW THEY ACTUALLY DO DIFFERENT THINGS TO ACHIEVE SOMETHING
BIGGER TOGETHER. THEREFORE, THIS WEEK IN
ADDITION TO THE SESSIONS WE HAVE LIKE THIS, THERE ARE THE
OPPORTUNITIES WHICH I WANT EVERYONE IN THIS ROOM TO TAKE
TO GIVE US YOUR VIEWS ON THE ECOSYSTEM.
ON THE PLACE, ON THE DATA CENTERS.
ON WHAT WE ARE DOING WITH CAPITAL. ON THE SKILLS PIECE. BECAUSE THAT WAY, YOU CAN PUT
YOUR FINGERPRINTS ON WHAT WE ARE DOING.
THAT WAY, WE CAN HAVE THE MANY CONVERSATIONS.
I WANT YOU TO FEEL THAT THIS IS YOUR OPPORTUNITY, INCLUDING ME,
REALLY GOOD DISCUSSIONS YESTERDAY.
THESE DISCUSSIONS, FIRST TIME DISCUSSIONS ARE REALLY
IMPORTANT TO ME AND TO THE WHOLE OF THE CABINET BECAUSE
THEY ARE OPPORTUNITY TO HAVE A CONVERSATION AT THIS LEVEL OF
WHAT WORKS AND WHAT DOESN’T WORK. THINGS WE CAN TWEAK AND DO
DIFFERENTLY. TO HEAR FIRSTHAND WHAT THE
ATTRIBUTES ARE IN THIS, WE SHOULD BE MAKING MORE OF.
OR WHERE DOES THAT CAP WE NEED TO BE SEEKING TO FILL?
SO, I SEE LONDON TECH WEEK NOT AS A ONE-OFF STAGED EVENT, BUT
THERE’S A PART OF AN ONGOING CONVERSATION.
I WANT EVERYBODY TO FEEL ENCOURAGED TO TALK TO ME, PETER
IS HERE. IF YOU CANNOT GET AHOLD OF US
IN ONE OF THESE SESSIONS, JUST MAKE SURE YOU ARE IN TOUCH WITH
MY OFFICE. I DON’T KNOW WHERE HE IS. HIS DOOR AT NUMBER 10 IS ABOUT
10 YARDS FROM MY DOOR. THAT IS HOW CLOSE WE ARE
WORKING. PLEASE TAKE THAT OPPORTUNITY
BECAUSE WE WILL DO A BETTER JOB IF WE WORK IN THAT PARTNERSHIP.
WHAT YOU SEE IN TERMS OF POLICY AND OUTPUT FROM THE GOVERNMENT
WILL BE BETTER IF IT HAS YOUR FINGERPRINTS ON IT.
PLEASE, TAKE THAT OPPORTUNITY. WE HAD A REALLY GREAT
DISCUSSION YESTERDAY. JENSEN: I AM JUST EXCITED ABOUT LONDON
TECH WEEK. I WILL MAKE THIS PREDICTION —
[APPLAUSE] LONDON TECH WEEK. I MAKE THIS PREDICTION THAT
BECAUSE OF AI, EVERY INDUSTRY IN THE U.K.
WILL BE A TECH INDUSTRY. THAT IS BECAUSE OF ALL THE
THINGS WE SAID EARLIER. IT IS SUCH AN IMPORTANT THING
FOR ALL OF THE COMPANIES TO RECOGNIZE.
THE IMPORTANCE OF AI AND TECHNOLOGY TO ALL OF THEIR
BUSINESSES. THE U.K. HAS THE MOST ABUNDANT OF THE
MOST CRITICAL OF RESOURCES. YOUR NATURAL RESOURCES ARE THE
AI RESEARCHERS, AI ENTREPRENEURS AND YOU HAVE AN
ABUNDANCE OF IT. YOU’RE THE ENVY OF THE WORLD.
LET’S — YEAH. [APPLAUSE] AND IT WAS SO GREAT TO SEE YOU
RECOGNIZE THEM YESTERDAY. WITH YOUR SUPPORT, YOUR
RECOGNITION, AND THE INVESTMENT OF THE GOVERNMENT BEHIND THESE
ENTREPRENEURS, THE SKY IS THE LIMIT.
THIS WILL BE THE BEGINNING OF SOMETHING REALLY GREAT. >> I THINK IT CAN REALLY HEAR
THE COLLABORATION THAT HAPPENS WITH WHEN THE GOVERNMENT AND
MAKE SURE THAT WE DO THE BEST INVESTMENT WE CAN.
I WANT TO USE OUR LAST FEW MINUTES.
WE HAVE TALKED ABOUT THE PACE OF CHANGE WITHIN THE TECHNOLOGY
SECTOR. WE UNDERSTAND THAT AND THE
CHANGE ABOUT HAVING THE SKILLS. LET’S TAKE A MOMENT TO REFLECT
BACK ON THE WIDER WORLD. THERE IS SO MUCH GEOPOLITICAL
CHANGE, SO MUCH TECHNOLOGY CHAMPIONSHIP, TECHNOLOGY
LEADERSHIP. HOW DO YOU, JENSEN, BALANCE THE
PACE OF INNOVATION AND DRIVING YOUR OWN INNOVATION, BUT ALSO
MAKE SURE YOU ARE SERVING THIS EVER-CHANGING GLOBAL MARKET?
JENSEN: I HAVE THE PRIVILEGE OF BEING
THE COMPANY THAT WORKS — WE ARE THE ONLY COMPANY IN THE
WORLD THAT WORKS WITH EVERY AI COMPANY IN THE WORLD.
I THINK WE ARE THE ONLY AI COMPANY IN THE WORLD THAT WORKS
IN EVERY REGION OF THE WORLD. I HAVE THE BENEFIT OF ENGAGING
AND PARTNERING WITH MANY IN DIFFERENT INDUSTRIES AND
DIFFERENT COUNTRIES. I WILL TELL YOU, THE SPEED OF
CHANGE IS INCREDIBLE. AS WE KNOW, THE GREATEST FORCE OF TECHNOLOGY HAS A NAME CALLED
MOORE’S LAW. TWO TIMES EVERY YEAR AND A
HALF, 10 TIMES EVERY FIVE YEARS, 100 TIMES EVERY 10 YEARS
— THE LAST 10 YEARS, AI HAS ADVANCED ONE MILLION TIMES.
IT’S EXTRAORDINARY. MOORE’S LAW IS 100.
AI IS MOVING AT ONE MILLION TIMES.
THAT IS THE REASON WHY WE ARE ALL HERE TALKING ABOUT AI.
WE REALIZE HOW INCREDIBLE THIS TECHNOLOGY IS, HOW IMPORTANT IT
IS, HOW TRANSFORMATIVE IT IS GOING TO BE AND WHY IT IS AN
ESSENTIAL FOR US TO ENGAGE. WHEN SOMETHING IS MOVING AT A
MILLION TIMES EVERY 10 YEARS, IS ONLY ONE WAY THAT YOU CAN
SURVIVE IT. YOU HAVE TO GET ON THAT
SPACESHIP. ONCE YOU GET ON THAT SPACESHIP,
AS IT TURNS OUT, YOU ARE TRAVELING AT THE SAME SPEED.
SO, TO ME, AI IS MOVING AND JUST ABOUT THE RIGHT SPEED.
THE SPEED I AM MAKING IT GO. SO, WHEN YOU ARE ON THE
ROCKETSHIP, ALL OF A SUDDEN, EVERYTHING ELSE SLOWS DOWN.
I WOULD HIGHLY ENCOURAGE EVERYBODY SIMPLY ENGAGED AI
FROM SCHOOLKIDS TO TEACHERS TO DOCTORS TO LAWYERS.
OF COURSE, ENTREPRENEURS ALL ENGAGING.
EVERY SINGLE FIELD OF SCIENCE HAS ALREADY ENGAGED AI.
DIGITAL BIOLOGY. QUANT AND FINANCIAL SERVICESS
AND RISK ASSESSMENT. I THINK THE IMPORTANT THING IS
TO ENGAGE IT DEEPLY AND QUICKLY. >> PRIME MINISTER, CANNOT I
JUST LEAVE IT WITH YOU IN TERMS OF HOW WE WITHIN THE U.K.
MAKING SURE WE FORGE THAT PATH, TO MAKE SURE WE ARE ATTRACTING
COMPANIES LIKE NVIDIA TO COME INVEST IN THE U.K.
BUT ALSO COMMITTING TO THAT U.K. AI INFRASTRUCTURE AND ECOSYSTEM?
P.M. STARMER: I THINK THIS IS ALL IN A SENSE
ABOUT POSTURE. WHAT DO PEOPLE THINK THE
GOVERNMENT BELIEVES IN? IF THERE’S ONE THING I WANT TO
GET ACROSS TODAY, IT IS THAT WE ARE LEANING INTO THIS. WE ARE EXCITED ABOUT THE
POTENTIAL THAT THIS COULD HAVE, WILL HAVE, ON THE LIVES OF
MILLIONS OF PEOPLE. AND MAKING THEIR LIVES BETTER.
I CAME INTO POLITICS QUITE LATE IN MY CAREER.
I CAME IN TO TRY TO IMPROVE THE LIVES OF WORKING PEOPLE ACROSS
THE COUNTRY. I CAN SEE THE HUGE POTENTIAL TO
DO THAT. AT SCALE AND SPEED I DIDN’T
THINK WOULD NECESSARILY BE POSSIBLE.
I CAME INTO POLITICS JUST 10 YEARS AGO.
EVEN THEN, I DIDN’T THINK WE WOULD BE SITTING HERE LOOKING
AT THE POTENTIAL OF AI. THE POSTURE OF GOVERNMENT.
A GOVERNMENT THAT TRULY PARTNERS IN THE SENSE THAT WE
UNDERSTAND. HAVE A CONVERSATION WHERE WE
ACTUALLY LISTEN TO WHAT YOU ARE SAYING AS WELL.
THEY ARE THE CONVERSATIONS THAT MATTER THE MOST. HAVING
MEETINGS WHERE THE NEXT MEETING DOES NOT GO OVER WITH THE LAST
MEETING DID AND EVERYONE REPEATS THE SAME THINGS THEY
SAID LAST TIME. WE HAVE DONE LOADS OF MEETINGS
LIKE THAT. THEY ARE NOT VERY INTERESTING
FOR YOU OR FOR US. GUY: WE WILL LEAVE THE BRITISH PRIME
MINISTER THERE. KEIR STARMER SPEAKING AT THE
TECH CONFERENCE, IN CONVERSATION WITH JENSEN HUANG.
THE U.K. INVESTMENT MINISTER ALSO THERE.
IF YOU WANT TO CARRY ON WHAT’S HAPPENING IN OLYMPIA, YOU CAN
DO THAT ON YOUR BLOOMBERG TERMINAL.
LIVE IS WHERE YOU WILL FIND IT.
WE WILL LOOK AT WHAT ELSE IS HAPPENING IN LONDON BECAUSE WE
NEED TO TALK ABOUT WAS HAPPENING WITH THE TRADE STORY.
THE CHINESE AND U.S. DELEGATIONS ARE HERE.
THEY WILL BE MEETING LATER TODAY. THIS COMES AS WE SEE DATA
COMING OUT OF THE CHINESE ECONOMY INDICATING SHIPMENTS TO
THE U.S. HAS FALLEN THE MOST SINCE 2020.
THEY DID SO FOR THE DATA COMING OUT OF LAST MONTH.
LET’S TALK ABOUT ALL OF THIS AND WHAT TO EXPECT FROM THE
TALKS IN THE NEXT SET OF DATA, THE GLOBAL HEAD OF TRANSPORTS
AND LOGISTICS RESEARCH FROM HSBC JOINING ME.
TWO EVENTS AROUND LONDON IS WHAT WE’VE BEEN WATCHING AND
THE OTHER IS THIS MEETING BETWEEN THE U.S.
AND CHINESE DELEGATION. WHAT ARE YOU EXPECTING?
THE MARKET IS ON TENDER HOOKS. WHAT KIND OF OUTCOME SHOULD WE
BE LOOKING FOR? >> UNCERTAINTY IS LIKELY TO
LINGER FOR THE NEXT SEVERAL MONTHS.
WE ARE TALKING ABOUT FINDING A SOLUTION TO A TRILLION TRADE.
WHAT WE HAVE SEEN THUS FAR IS PROBABLY WE WILL CONTINUE TO
SEE UNCERTAINTIES WITH RESPECT TO THE FINAL OUTCOME WHICH
MEANS THEY WILL CONTINUE WITH THE FRONTLOADING, TAKE A PAUSE
AND LOOK AT HOW THE CONSUMER WILL BE. A LOT OF UNCERTAINTY.
GUY: IS THAT WHAT WE ARE SEEING IN
THIS LATEST SET OF DATA? UNCERTAINTY MANIFESTING ITSELF
NOW AS PEOPLE TURN MORE CAUTIOUS AND NOT WILLING TO
PLACE THE ORDERS THAT NORMALLY WOULD BE PLACED? LOOKING 6, 9 BUNCE DOWN THE
ROAD — NINE MONTHS DOWN THE ROAD. PARASH:
THERE’S NOT MUCH EXCESS CAPACITY AVAILABLE OUTSIDE
CHINA FOR RETAILERS TO EXPORT. THEY ARE RUNNING AT MAX
CAPACITY. WHAT WE SAW IN DATA IS A
CONTINUATION OF TAME, LOW IN MANUFACTURING MOVING AWAY FROM
CHINA. CHINA’S TRADE WITH THE REST OF
THE WORLD CONTINUES TO GROW. WHAT WE HAVE SEEN WITH RESPECT
TO THE U.S. IS PRETTY MUCH AN IMPACT OF THE
FIRST TWO WEEKS OF MAY WHEN THE TARIFFS WERE AT 145%.
COMING TOWARDS THE END OF MAY, WE HAVE SEEN THE SHIPS ARE
LOADING FULL OUT OF CHINA AND JUNE WE WILL SEE SOME BIT OF
RECOVERY. GUY: YOU EXPECT THESE NUMBERS TO BE
VOLATILE GOING FORWARD? PARASH: ABSOLUTELY.
WHERE WE STAND TODAY, THERE ARE SEVERAL DEADLINES.
THERE’S THE EARLY JULY DEADLINE FOR REST OF THE WORLD, EARLY
AUGUST DEADLINE WITH CHINA. NOBODY KNOWS. GUY:
IN TERMS OF WHAT DOES INVENTORY LOOK LIKE?
HOW MUCH CUSHION IS THERE WITHIN THE SYSTEM? PARASH:
INVENTORY, WE HAVE SEEN A SLIGHT UPTICK WHEN THE — THE
START OF LAST YEAR. INVENTORY HAS BEEN CRUISING
AROUND THE DEBT LEVEL. WHAT IT TELLS YOU IS CONSUMER
SPENDING STAYS ROBUST. WHEN WE TALK TO SOME OF THE RETAILERS,
THEIR VIEW IS THEY WILL ASSUME THE TRADE WILL CONTINUE.
THERE’S NOT MUCH CAPACITY TO BUILD THOSE INVENTORIES.
YOU MAY SEE CERTAIN SCALES WERE THE RETAILERS ARE ADDING
CAPACITY BUT BY AND LARGE, I THINK IN CONSUMPTION IS
FOLLOWING A PATTERN. GUY: HAS SOMETHING FUNDAMENTALLY
CHANGED IN THE PREMISE OF HOW TRADE IS OPERATED?
THERE IS THIS IDEA THAT THE U.S. WANTS TO CLOSE THE TRADE
DEFICIT. WHAT ARE YOU SEEING IN TERMS OF
THE NUMBERS ON THAT FRONT? PARASH:
I AM NOT AN ECONOMIST BUT WHAT WE SEE FROM NOW IS THE TRADE
DEFICIT SUSTAINS. WHILE EXPORT GROWTH HAS SLOWED
DOWN BUT SO DID THE IMPORTANT TO CHINA.
THE TRADE DEFICIT SO FAR CONTINUES TO REMAIN.
WHAT I FEAR THE MOST TALKING TO OUR COMPANY SAYS WHAT WILL
HAPPEN COME THE PEAK SUMMER? IF WE SEE AN INCREASE IN THE
FINISHED PRODUCTS, WILL THAT TAME CONSUMER SENTIMENT AND
LEAD RETAILERS TO GO TOWARDS D STOCKING?
THAT WOULD BE A BIGGER RISK THAN CONSUMPTION AND INVENTORY.
GUY: THE CONCERN IS WE WILL SEE CHINA’S INVENTORY MOVING AWAY
FROM THE U.S. AND TOWARDS EUROPE.
ANY EVIDENCE FROM THE CONVERSATIONS YOU ARE SEEING?
PARASH: THERE ARE A LOT OF TALKS BUT IF
YOU LOOK AT THE TRADE DETAIL, THE EXPORT IS DOUBLE-DIGIT.
OUTSIDE CHINA, GLOBAL TRADE CONTINUES.
THERE COULD BE AN ELEMENT OF CARGO BEING DIVERTED BUT IF YOU
LOOK AT IMPORTED INTO EUROPE, IT IS NOT THE GREATEST
SIGNIFICANT A FROM THE START OF THE YEAR. GUY:
WHAT ARE YOU SEEING THUS FAR AND IS THE VOLATILITY GOING TO
CONTINUE? PARASH: FOR RIGHT OR WRONG REASON, THAT
IS WHERE THE INDUSTRY THRIVES. IF YOU LOOK AT WHAT WE HAVE
SEEN IN TERMS OF THE TRADE THE LAST SEVERAL WEEKS, THE FREIGHT
TRADE FROM CHINA TO U.S. EAST COAST AND WEST COAST HAS
MORE THAN DOUBLED. THEY HAVE GONE UP 67%.
THAT TELLS YOU ALL OF THIS UNCERTAINTY MEANS THE CAPACITY,
USE OF CAPACITY BECOMES AN EFFICIENT AND THAT IS WHEN THE
SHIPPING INDUSTRY MAKES MONEY. GUY:
THE SHIPPING INDUSTRY IS MAKING MONEY RIGHT NOW. PARASH:
FOR NOW. GUY: THAT IS THE IMPORTANT POINT.
HOW QUICKLY CAN THIS BE TURNED OFF AGAIN?
THE NINTH OF NEXT MONTH AND THEN AUGUST FOR THE CHINESE
DATE. IF THERE’S ANY ISSUE AROUND
TARIFFS BEING REAPPLIED, HOW QUICKLY DOES THAT RESERVE —
REVERSE? PARASH: WE HAVE SEEN THAT AT THE START
OF THE YEAR. STRUCTURALLY, WE HAVE ENTERED
INTO PERMANENT ACCESSED SUPPLY DEMAND SCENARIO WHEN IT COMES
TO THE OCEAN SHIPPING. AT SOME POINT IN TIME, THE RED
SEA TRADE WILL UNWIND AND ADD ADDITIONAL PRESSURE TO THE
SUPREME CAPACITY — TO THE SHIPPING CAPACITY. GUY:
NICE TO SEE YOU. THANK YOU FOR STOPPING BY.
WORKING OUR WAY THROUGH WHAT WE HEARD FROM THE PRIME MINISTER. HSBC GLOBAL HEAD OF TRANSPORT
AND LOGISTICS RESEARCH JOINING US AHEAD OF THE TRADE TALKS
TAKING PLACE BETWEEN CHINA AND THE U.S. IN LONDON TODAY.
WE WILL CONTINUE TO KEEP YOU UPDATED ON THOSE TALKS AS WE
WORK AWAY THROUGH THE MORNING. LOOKS LIKE THAT WILL BE THE
MAJOR CATALYST RIGHT NOW. AT THE MOMENT, EQUITY MARKETS
ARE FAIRLY QUIET, AS YOU CAN SEE IN TERMS OF THE NUMBERS.
WE ARE NOT LOOKING. WE WILL GET SOME POP FROM U.S.
FUTURES AS WELL AS SIGNALING A CATALYST FOR PHYSICAL FROM THE
TRADE TALKS, DOES IT COME FROM THE DATA OR THESE BIG AUCTIONS
IN TERMS OF THE U.S. TREASURY MARKET?
ALL OF THAT IS ON THE AGENDA. THE BRIEF IS UP NEXT.
THIS IS BLOOMBERG. ♪