>> we are live from the milken institute global conference. some of the best and brightest minds have come here and talking about some of the urgent challenges we talk about day in and day out.

this half-hour you'll hear about manufacturing, supply chain, and i had the chance to sit down with the ceo at bridgewater. she had so many ideas on what to pursue. efg, supply chain, we're hearing about all of it. romaine: it's certainly about big ideas. take a listen to some of the things we heard. >> we're facing constraints on policies. >> the fed needs to redefine what they think of as an acceptable employment level.

anytime the fed kind of whisker -- whispers they're going to tighten, the markets trade-off. >> the central bank for now is running the markets. >> the question is whether the economy in the world can function without the central bank and the answer is, we don't know. >> they may have made a policy mistake by waiting too long. caroline: some are saying perhaps that fiscal policy, monetary policy, the perfect storm with the supply chain issue. romaine: this has been one of the big drivers of the dislocations. caroline: supply chain crunch one the fed is keeping a close eye on. our next guest is looking to fix that. he soon to be the ceo of a publicly traded company as well. it's great to have you here.

i can imagine how many people are coming up to you and saying this whole supply chain issue, help us fix it. what area are you looking at alleviating? >> the last 30 years, globalization powered assembly lines around the world. around the world in asia and other places, and they built products over there. what we are providing an alternative to is that exact method by giving people a way of making products autonomously, using machines, so you can build products closer to where your customers are, anywhere, at any time. it's an entirely automated, autonomous web building products. in the whole supply chain picture, what we are enabling is for people to build products on demand, close to their customers. romaine: obviously it's been a

big issue with getting goods around the world in an efficient manner. how do you actually solve that? amar: the problem we see today has been building over a number of years. there's multiple things that need to change for the supply change challenge to be truly addressed. one of the areas is supplying automation technologies a lot better. that's what we do. so where there is overreliance on human labor, for example, in the pandemic, for example, products were not easy to get because some of what couldn't happen was people being able to go into factories. thus a kind of thing we change because they are automating. romaine: the reason we make so much stuff overseas is because the labor costs are less. if you do have an automated process and you can bring it

closer to home, do you have some guarantee that the cost dynamic is still going to be favorable to whoever is making it? amar: the good news is that the technology has evolved enough that we can do automation at about the same and sometimes lower cost than the labor centered way of making products. we're literally trying to give eyes and brains to achieve technology that's evolved tremendously over the past 5-10 years. caroline: i was talking to a ceo earlier, and the question is timeframe. we've got the chip shortage, how quickly can automation be the answer? amar: what we can do is take over the labor shortage, there is also that.

for example, there's 400,000 manufacturing jobs in the united states that are unfilled. even if we were able to get the components and all the pieces and parts that you need, you don't have enough people to build your product here, and that is true in other parts of the world. there are very smart people working on the two problems, the shipping problem, we are working on the labor and quality and reliability side of the challenge. romaine: a lot of the issues with logistics is still software, automation. it's amazing how much is done without real technology. how do you get to a stage where you have a system that is so giant norma's and disconnected in a lot of ways and bring together new technology? amar: it's been building over a

number of years. one is an analog way of working, paper-based or experience base. when you are improving technology, your leveraging data for the first time. the more patterns you see, the more you can predict. i think that's the key to getting out of this challenge we have, more visibility. people did not have good information on both the demonic -- demand-side and the supply-side. what is revolutionary about something like uber or amazon? the disconnect is on the demand-side and the supply-side. they have an entirely digital chain of knowing, like you know where the customers are and you know where the taxis are, and you can connect demand and

supply. you go to an average product company or manufacturer, they can't predict the demand as accurately as they need to, nor do they know the supply chain inventory. that's why you have challenges like that toilet paper week -- challenge we had at the beginning of covid, where there is no supply, then there is an oversupply, then there is no supply. it's a peaks and valleys way of doing things. the only way out of it is to apply more digital technology, get more visibility both on the demand and supply side. then companies like us can really shine. caroline: what is interesting, despite the walls of cash in cheap borrowing, companies have been unwilling to invest in their own businesses. amar: there is a perfect storm now. i would say with the pandemic, with the terror of wars, with

certain security concerns, what we've seen with our customers and their investment time horizon has shifted from 10 years to two years. they have really accelerated. really bringing manufacturing back, making manufacturing facilities a little more shock safe, like having alternatives, if one side goes down, being able to spin up another side. that is gone up tremendously in the year and -- last year and have i would say. caroline: really interesting, talking about all things regarding the supply chain. later this week we will dig into the port of long beach. romaine: this is going to be a

big deal here. we will talk to the people on the ground there and people on other edges of the supply chain. caroline: will be talking to the truckers to make sure those key voices are included. and the california executive director of the port of los angeles as well. romaine: it's not -- the stuff is getting into the country but not getting to the dealerships fast enough when it comes to cars. taylor: too far for me to walk all the way over to 12th avenue. i'm just going to wait for you guys over there in long beach as we continue to push forward. we will have more from milken and hear from the bridgewater

co-ceo on sustainability. this is bloomberg. ♪

caroline: live from the milken institute global conference in l.a., i'm caroline hyde. taylor: we've been listening to your great panels and great conversations you've had all day. another theme we've been touching on not directly has been sustainability amidst all the inflationary and supply chain crises.

does it pay to go into eft? frankly this a little bit about performance but not much. i've only dated this going back to the end of 2019 and just looking at a two-year timeframe, you really wonder, when are the returns going to start to show the underlying theme of this outperformance? caroline: the transparency with what it means, how you rate those investments and ensure that they are as environmentally friendly and sustainable and a strong as you would like him to be? europe is leading the regulatory charge. i had a chance to sit down and talk to a leader in this particular area at bridgewater. i was speaking with the coat cio of sustainability at bridgewater

associates. take a listen. karen: i think it's fantastic. you get the interplay between investor saying they want to move in this direction, and before you know it, the tools proliferate. you can have a million people asking me through a million reports, it's got to be consolidated. how do we make one standardized thing? what is fantastic is that it's becoming clear, it is a feedback loop, reporting on them, caring about them internally, and in particular, europe has said were going to speak broadly about social and environmental issues.

i think that's the way of the future. caroline: when you're looking at the investment opportunities out there when it relates to sustainability, is there enough transparency out there? are there things that can make a real impact? karen: the data today is radically better than it was two or three years ago. the best data today basically says right now, described to me what they do right now. the next generation of data will factor in time. do you think improvements will be reliable? what was the impact they produced at a particular time? caroline: you started the conversation by saying the transition were all talking

about, sustainability, talk about the tarnish that the word transition is getting right now. people are saying we weren't ready. karen: i think what is happening now is having a few core impacts. it's getting rid of the naysayers that said none of this matters to investors. there are different ways to transition our economy from what it is today to net zero. the way we are currently pursuing it is not very coordinated. the main policies being pursued are inflationary once. so there are different ways to do it. if you do it by taxing like a carbon price, or just removing

supply, like i won't finance more coal mines, by definition trying to raise prices on the fossil fuels to shift people, you are setting up to use these inflationary tools. so there are other ways to transition. the binding proposal, what they had wanted to do is transition using more what we call industry policies, monetary and fiscal together, where you print money and basically spin federal money, making the other piece cheaper. so you can either make the carbon expensive or saint let's pay for nonrenewable's. you're not squeezing the price of oil or coal. you're giving the incentive to push something else. so we can choose how we want to

do this, at what pace and with what policies. caroline: let's talk about the slower inflationary pressure that we've seen. what we are experiencing in terms of the sheer volume of cash, adding to that the supply chain issues and the perfect storm of covid plus the energy crisis -- crisis for the economy. what does it mean? karen: i think it's what policy banks wanted to engineer. we are 10 years after quantitative easing. you get financial asset inflation, you don't necessarily get the money to spend in the real economy. now they print money and also pair it with the fiscal side. when you give people checks, they spend them.

caroline: are they spending it? because i've heard everyone is saving it. karen: the balance sheets for households is the best they been in decades. we've created better financial health than we've seen in a very long time, and that means it's hard to cut off that expansion. i think that's what policymakers wanted to create. they looked at the pandemic and said this pandemic has been difficult on these households. the side effect is, demand is outstripping supply. central banks are at a place where for the first time in a very long time they are facing

constrained funding policies. romaine: that was the co-cio of sustainability over at bridgewater associates. there has been a lot going on. another ceo was on a panel, charlie sharp just got off stage and he talked about the supply chain pressures, saying he expects it to resolve itself in the next 6-12 months. it's something we've heard from other folks. there does seem to be a drumbeat out there that this is episodic, transitory, temporary. we also talked about companies leveling off as well. a lot going on here at milken. we are in beverly hills, california. caroline: it's beautiful and sunny. romaine: we will be back in a

moment, from los angeles. this is bloomberg. ♪

>> there's at least three different elements of the inflation story. housing, rent, and commodities are not going away anytime soon. they will be with us for at least the next couple of years. it's not going to be solved in two years. there's a whole set of things like the supply chain that people leave will be solved in the next 24 months. higher prices will bring in more demand and we will see those fall. caroline: inflation has been one of the main themes here. i'm caroline hyde. taylor: is anyone going to call

out romaine for continuing to call this transitory? food is not transitory, romaine. romaine: this is a big issue. we've heard from a lot of folks about the inflationary pressures. let's be clear, this is like a capitalist dream here at the milken global institute. at the same time you've got a lot of talk about how to make capital markets more inclusive. i talked to a lot of people about how to make it inclusive. some interesting conversations. you are hearing this from a lot of other people. it's not just about the wealthy getting wealthier, it's about finding ways for the rest of the

world to also be wealthy. caroline: who is axel foley, taylor? taylor: if only we had time to debate. love you guys. caroline: this is bloomberg. ♪

>> this is bloomberg with emily chang. emily: coming up in the next hour, apple showcased new devices at an unleased event and we're looking at the up and its