A new story from Balance of Power

Automatic TRANSCRIPT

Everybody I'm an enemy and that's to win the war against the world of the world the well being and the lives of the American people want to make our the American people millions more lose their jobs as fed chair Powell warns of possible longer term economic damage a proposal to hire many of the jobless and a national resilience core and the ways economic stress can threaten national security from New York welcome to the second hour of Bloomberg balance of power I'm David Westin economic numbers in the United States and in Europe continue to deteriorate leaving millions out of work and that dislocation and suffering can put new pressures on the system of global security welcome now the CEO of the Chertoff group Chad sweet Mr street this master suite earlier served as chief of staff to the department of homeland security and at Goldman Sachs and Morgan Stanley so thank you so much for being with us give us a sense as you talk to your clients as you do I know around the world what questions are they asking about what this pandemic is doing to security questions well right now yeah many folks read about implications of the geopolitical stability at one thinks about North Korea where it indications that the leader they're concerned may impact the L. that is highly unstable country and implications if they were to have an implosion or leadership vacuum that could lead to instability it could have all an intervention by the United States to secure the border and nuclear weapons you control in China a lot of concern there and Iran is well satellite imagery is showing that they are actually engaged in building out massive large grave sites because they're not with the whole levels of fatalities James in particular any our clients are concerned about instability and what that might mean there similarly on the Russian side of the equation I think the oil crisis it has been very problematic for Russia and their economy is now smaller than the GDP of Italy and Amir lifeline and so at a time like this may be tempted to actually arrange and use it the card of iris is an excuse for authoritarian in the impact here try to engage in some aggressive behavior externally to distract the domestic public funds difficulties in the economy and lastly China's definitely the big wild card whether it's how they're gonna handle the attacks occur criticisms matter and helping him with the virus in the first place and what the implications are there for both training and global supply chain stated yes so as has a practical matter when people are put in a corner as they sometimes can lash out in ways that could be counterproductive and you just name for places very different one from the other each which may feel that they're being backed in a quarter are people more worried about actual physical activity that is troops and guns and like the gunships Iran has been circling naval ships in the Gulf on or they're worried about things like cyber attacks I think he already is him into this is been publicly reported I'm not saying anything that's classified there are a clear indication that adversaries like China Russia and even China or in fact already using disinformation and a lot of the internet a similar to what took place in the twenty sixteen interference with our elections and so not only are we seeing that but as you said David cybersecurity has become a very big problem as most companies now or to work remotely that remote working environment with distributed actually expand a tax for cyber hackers and that is where we're seeing as well a significant uptick in aggressive cyber activity not just by criminals but he said by state actors how fast can a company really address the cyber security issue because as you say Chad we're all relying upon the internet and and remote working much more than we ever imagined it would be a lot of information going back and forth that were not in the workplace for can a company respond fairly quickly an upgrade on the cyber security front it is all the good news today is that there are a number of great companies that can in a remote work environment however a lot of companies the difficulty is the demand for those services are at an all time high as you can imagine so getting a provider and getting it quickly is difficult the thing I would say is it unfortunately the number of the current solution providers room working and then for example whether take care and have only and as a result of them that should have been and they're signing on it the stock was on fire and then unfortunately each they ended up losing almost twelve billion dollars market capitalization for the peak to the trough the CEO had to apologize to the public the band for the number of customers including government account I think the point your radiators keys right now we're a private company or a private citizen doubling down on your cyber security today is critical in this environment chit chat what about things other than nation states and particularly the possibly of failed states and refugees pouring across borders and to what extent do you assess that as a as a national security threat potentially to Europe or to the United States ideology on it the overall collision it's much more likely to be an issue the United States Mexico currently is mostly in a warmer climate which has been beneficial because the coronavirus appears to be affected similarly to other sister coronaviruses I needed humidity is about to happen in the US in the northern hemisphere is going into our personalities and in the other image here is going into day called in season so it it is very likely that you can see a spike in cases in Mexico on our southern border healthcare system this is rational they don't have the resources and as you know they're actually very dependent on the price of oil and there are been crushed and and on the economic side there so I think the United States has been bulking up he along the southern border or that is in preparation for what could be a mass migration from the south okay thank you so much I really appreciate that jet that's Chad sweet and he's the head of the Chertoff group coming up here new dismal economic numbers out of the United States and Europe today our.

Coming up next