tv Bloomberg West Bloomberg May 9, 2015 7:00am-8:01am EDT
the company turned a $464 million profit. there are lingering concerns about alibaba's ability to drum up international revenue. chairman jack ma just announce a hiring freeze and there are concerns about the relationship of the chinese government which says alibaba is not doing enough to crack down on fraud. i spoke with daniel jong, a former accountant and now ceo. i asked him what he plans to do differently and whether the management team will stabilize. >> we change a couple of leadership. we believe that today is the right time for us to bring young generation to the leadership. alibaba -- this is a long journey. when he the young generation to be a participant in the company to the next journey.
emily: how will you bring more young talent? >> although leaders are from the 1970's. we're trying to bring more and more 1980's and 1990's, the younger generation to the middle class level and finally to the leadership level. we believe this will -- this will be the foundation for future growth. emily: jack ma says he wants 50% of the revenue to come from outside. it is currently like 9%. what is your target for that number this year? >> globalization is one of our core strategies in the future. we start with our -- and we help deliver supplies to chinese consumers. on the other hand, through our ali baba express retail, we help
sell chinese supplies to overseas customers all over the world. at the end of the day we want to build a global network, a global platform to solve -- serve consumers around the world. emily: would you want that number to be? >> the business from international localization will continue to grow. now is just a starting point. emily: what can be tricky see alibaba popping up in? where we see a greater presence from ali baba abroad more specifically? >> today, with our retail express we sell a lot of products to the developing countries like brazil russia and in those countries to consumer product is very expensive.
were trying to help capitalize a platform for those countries. there will be more countries in the future here. we will participate in the growth of certain countries large investments, m&a, and we will help the young entrepreneur in this country's to open their own business. emily: how do you plan to do that? >> i feel we have very good strategy of globalization. today we start with a across border as i said. as i said, today is just the beginning. it is a long journey for globalization. emily: we've heard with a hiring freeze capping employees at 30,000 employees today. how likely would layoff be as a potential next app. -- next step?
>> i think it is largely misinterpreted by the market. we will adopt a zero policy this year for our headcount policy. we will definitely continue to hire talented people to join us and replace the underperforming employees. the purpose of this is to improve our operating efficiency . we did the same thing three years ago and we had very good results. in five years, we have a dream that we will have one trillion u.s. dollars -- one trillion u.s. dollars. the headcount in our group should be with 50,000 people. we adopt policy to grow our
efficiency. emily: the chinese government has made some harsh accusations against alibaba about bribes, knockoffs what is the state of your relationship with the chinese government right now? daniel: like all global companies, daniel -- alibaba has a transparent relationship of the chinese government. we are also addressing their concerns. we do everything we can to make sure all our business platforms are in compliance with the laws and regulations. emily: we will leave back talking with twitter ceo dan costello of next. ♪
♪ emily: this is "bloomberg west." i'm emily chang. bloomberg television recently premiered season two of "studio 1.0." my first guest this season was twitter c.e.o. dick costolo. we talked about his improve comedy trading and how it prepared him for wall street. his relationship with twitter's cofounders and how he deals with the skeptics who say he should be fired. here is a bit from that interview. how do you and your team deal with that? how do you as a person do with that, when people say you should be fired? >> i was invited to something a couple years ago and my daughter said you should go. i said i don't think i will go because i got invited to it because of what i am, not who i am.
i got invited because i was the twitter c.e.o., not because i'm dick costolo. i have always tried to make sure i have never paid too much attention to the ceo of the year stuff because the worst ceo of the year stuff is right around the corner. i therefore don't get worked up or frankly care too much when people say those things. in fact, i have had to make myself care a little bit about them only after i started realizing oh, it could affect recruiting if people started thinking, i want to go to twitter, but what if dick is not there tomorrow and everything changes? so i have to pay attention to that and say that is not the case. emily: how does not being a founder affect your ability to lead? >> jack dorsey could be here and ask him what he was thinking about when he invented twitter. you can't ask me that same question because my answer is i didn't invent twitter. you can be a non-founder c.e.o. and have real, thoughtful
opinions and even certainty about where something needs to be taken that is helpful to the company. i can tell you, when jack saw vine and loved it and knew it was right right away and we both realized we have to do this. i felt the same way when someone on my team came to talk to me about periscope. right away it was we have to make that part of the company. my daughter at the end of 2014 texted me and said i have bad news and good news. the bad news is an article said that you were one of the worst five c.e.o.s of 2014. ok, what is the good news? you are number five. i view that as a lesson to not get too carried away one way or the other on the sorts of things. emily: my interview with dick costolo from the premiere of season two of "studio 1.0," which you can find any time online.
from twitter to salesforce another san francisco based company, people familiar with the matter say microsoft is considering making a bid for salesforce after the cloud giant was approached by another suitor. would such a deal make sense? cory johnson spoke with matt from seattle-based madrona venture group. >> i think their aspirations are to be a winner at both, the infrastructure, the cloud as a service. that is the big transformation that is becoming out over the last 10 years. i don't think either of those would be enough to justify buying salesforce. i think the bet on salesforce is to say can we build intelligent apps together? data-driven apps are going to be the smart apps of the future. for example, salesforce bought a company last year that used technologies combined with microsoft data and technologies like exchange and that delivered
intelligent services to companies. cory: i'm going to back you up for a second. you said microsoft thinks salesforce's engineers -- needs the engineers and the imagination? >> i think that is correct. particularly around software as a service application. there are things it has done not just engineers, microsoft hasn't fully figured out yet and that together they could build this next generation of smarter applications for the enterprise. cory: that is interesting. my excel spread sheets on this deal have been burning over the last couple of hours and days. i've been trying to look at ways it makes sense. salesforce, it is what it is but the also a compilation of a bunch of recent acquisitions that have been very expensive to the company without delivering profit or free cash flow after the cost of those acquisitions.
and i think anyone in the industry can see that they are doing a lot of acquisitions to boost revenues but they are not getting the free cash flow that would result from it otherwise. they are just spending a ton on marketing. >> i agree with your analysis. it is risky bet on a company that is already highly valued. before the run up we have seen in the last few days. that's why, you know, it is a big bet if that is something they are trying to evaluate here. certainly the rumors suggest they are. if so, it is not going to be just because cloud makes you better. salesforce.com expertise, cloud or microsoft is coming on strong and really the data analytic that you can embed into those solutions, that would be the bet. part of the reason that matters is there is a lot of usage and understanding in both what salesforce delivers in its own products as well as things built
on a $4.5 billion evaluation. but are things getting a bit too bubbly here? cory johnson and i spoke with parker conrad, the c.e.o. of zenefits. >> basically a lot of businesses out there are going after a couple thousand of the largest companies in america to sell them business software. we are going after the s&p 5 million. there are so many of these companies out there that there are a lot of people we need to have conversations with and get pitches to and field questions from. that means there are a lot of folks we need to hire. long-term, the business looks very profitable but a lot of those costs are front-loaded so when you want to go very fast and very far, you're going to burn a lot of gasoline. this car that we're driving at high speed and we want to get a lot of customers, we have to make the mother of all pit stops to fill up on gasoline and beef jerky.
emily: i appreciate the metaphor. we have been speaking a few time over the last year or so. a year ago it was a $100 million evaluation. how do you as a ceo make the decision to make on -- take on this kind of responsibly? >> definitely, you know, there is a little bit of celebration. and i think a lot of humility about what is in front of us. obviously investors are investing on the promise of a lot of future growth and execution in the business. we feel that, you know, what the market that we're going after is absolutely enormous. it solves a really big problem for almost any business in the united states. and we think that, you know, if we don't screw it up in a couple of years, a lot of guys in this round will look prescient. cory: what kind of growth are you talking about and what do you imagine they are going to be now that you have fueled up on beef jerky? >> well, you know zenefits is the fastest growing
business in silicon valley. the company is two years old this week. we started off in 2014 with about $1 million in revenue. we closed having grown to $20 million. the plan for this year takes past $100 million in run rate revenue by the end of the year. we want to keep growing at those kind of rates into 2015, 2016, 2017. and when you want to grow that quickly it means you need to really capitalize the business well. emily: let's take a step back and talk about what you do. you tie together payroll, health insurance. all of these different kinds of h.r. things into one software. right? >> that is the idea. basically companies today have all these disconnected systems related to their employees. things like payroll benefits, time tracking software creates an administrative nightmare for a lot of people. zenefits ties it all together. we get rid of the administrative burden and the compliance
headache. we give the core software away for free because we make money on all of these different spoke and adjacent systems. cory: you're saying it is like a lead generation basically for those other businesses, right? >> that is one way to think about it. it is almost like a premium model. emily: how does the affordable care act affect your business? >> it does a couple of things in the insurance market that makes it simpler to price health insurance which makes it easier for us to do it online. it quite frankly adds to the compliance burden for a lot of small businesses. there is a lot of filings they need to make and compliance they need to deal with. what it does is makes it harder and harder for a small business to roll their own on this stuff. zenefits, we can take all of that off their plate and handle it for them. it makes our value proposition really compelling. emily: do you watch the show "silicon valley?" >> occasionally i watch the show. when i'm fundraising, sometimes it is a little too close to home. i stop watching it then.
emily: there is a scene in the show this season where the main character is talking about raising money and someone tells him don't raise that much money. you might go through a down round. and that could be absolutely devastating. he said maybe i'll raise less money at a lower valuation and says no to a lot of people trying to write him checks. would that ever happen in real life? do you as a c.e.o. think maybe i shouldn't be raising because it is too risky? >> it depends on the stage of the company. our view of our business is all of the underlying metrics are pointing in the right direction. every customer we acquire long-term we think is extremely profitable. all signs point towards us stepping on the gas. so for us, you know, we -- my goal is to run the company so that we never need to raise another round of financing. we want to capitalize the business in a way that lets us run the company in a way we want to run it and scale at the speed we want to scale and go out and grab this giant opportunity we
see in front of us. emily: we just heard from zenefits parker conrad there. his start up raising $500 million in its latest round. in light of the messaging app secret shutting down after it raised more than $35 million, are these investments secure? how do they make sure investments will be spent responsibly? after one of them bought a ferrari. i talked of it with the founder of resolute ventures. >> i think it is very risky all around. emily: risky or irresponsible? >> it certainly can be an irresponsible thing. i think the worry is that it changes incentives. emily: once you give these guys money, how much follow-through is there? how much are you looking at how are they spending it? did they buy a red ferrari? >> the important thing is how are they thinking about spending it before they raise it? before reading these checks
ideally investors will spend time with the management team. emily: do you think investors knew they were going to take that much money off the table for themselves? >> they certainly agreed to the money being taken off the table. whether they knew it was going to be spent on red ferraris. emily: why do investors allow that to happen? for a start up at that stage why would an investor allow that to happen? >> i think the only reason is because they really want to get into the deal and that is the bargain the founders are willing to strike. emily: secret was extremely buzzy at the time. but now 16 months later it is completely shut down. what kind of diligence is done to determine whether the company is going to be successful? >> that depends on the company. a company like zenefits is different than secret. zenefits, you're talking to customers and understand the market. with secret, you're looking at user behavior and tension. not just the number of users. how many users are coming back? how frequently?
is it something that becomes habitual behavior? emily: on the opposite end of the spectrum you're seeing zenefits raise $500 million. what is going on here? >> we should be concerned. i think these large valuations make a ton of sense as long as the tide keeps rising. we know every up cycle is followed by a down cycle. none of us know when that shift is going to happen but when it does it is going to be a painful thing. kimi's tend to grow into the amount of capital they raise. their burn rate grows into that capital raise. if a company gets in a situation where they are going through that capital very rapidly, the market turns, it is going to be difficult to raise more capital and that can be a very dangerous place. emily: you think this down cycle is definitely going to happen? >> definitely. the market is riding a high and it will not continue to go up. emily: how much longer do we have? >> none of us know when.
we all know that it will happen. emily: what do you think companies need to do in taking on this kind of risk? >> i had this conversation with one of my c.e.o.s. he raised $200,000 his first round and has done well. and now he has opportunities. the conversation is be really really thoughtful. raising the absolute maximum you can at the highest often is not the answer. emily: really? you would do like the guy on "silicon valley" then and take less? >> i oftentimes would. and this c.e.o. actually did that. emily: so it does happen? >> it does happen. sometimes boards and c.e.o.s and founders are very thoughtful and don't go for the biggest numbers. emily: up next, lending club c.e.o. talks earnings and whether he is worried about competition from big banks. ♪
emily: you are watching the best of "bloomberg west." some big banks are taking on startups. should leader in the area be worried? the property reported a loss for -- the company lending club reported a loss the first quarter on revenue of $81 million. in the same quarter it facilitated $1.6 billion in loans. for more, i spoke to the ceo. guest: out of banks are competition.
our competition has been to compete with banks. -- our strategy has been to partner with banks. we want to partner and sit down in the marketplace. i think the banks are increasingly realizing that they can earn higher yields by their own customers through the lending club platform. they have lower operating costs and more technology than the banks. now we are seeing larger banks with a partnership with citibank. if there is an announcement with goldman sachs, i would not exclude partnering. emily: do you consider goldman sachs competition? guest: not at this point. we are good at different things. we have succeeded in the space and become the leader in marketplace lending. we grow 100% year-to-year. the results you saw yesterday
are guidance. we have a low-cost operation. we are very consumer friendly. we have a deep expertise in consumer marketing. those are not the three things that goldman sachs is known for. but they have other assets. i think they are very complementary. it is with everyone's interest to drive down the cost for consumers. emily: you have been cutting rates. it is attracting more customers. how long can you maintain that? guest: we don't feel we need to lower rates. we are very competitive. we offer to borrowers. many use our loans to pay off an existing credit card balance. most credit card balances in the country are at 17%. the average lending club loan is 5%.
it is a significant value. we take advantage of the network effect and an appetite from investors to have lower interest rates. i think we are at the right place right now. we have a good balance. borrowers are getting a great deal and investors are happy with the returns. emily: you have been public for five months. what is different about being a public company? do you enjoy it? guest: it has been positive so far. it was a big marketing event. we had ipo in december. since then, we have continued to draw more public attention. in our case, it is a benefit. we have better brand awareness and grand credibility. we see that with incoming traffic. we are seeing it with retail investors in greater number in the first quarter.
we are benefiting from the momentum of the ipo. we are seeing it in our ability to attract top talent. and we see it in the partnership strategy with citibank and the sam's club and others. we benefited from a public -- we have benefited it from the news of being a public company and the transparency that goes with it. emily: up next, how technology could help political rookies on the presidential campaign trail. ♪
republican presidential nomination. two of them have never held political office, former ceo carly fiorina and dr. ben carson. how can technology help them gain an edge in the race? i spoke about it with zach moffat. he was a digital director for mitt romney's 2012 campaign. he is the cofounder of targeted victory. guest: the challenge is to create communities to be successful in november. of what they are looking to do is remove any barriers of entry to make this a simple as possible to participate. whether that is signing up to volunteer or to give money or to share their opinions that is the , goal of every one of these campaigns, to make it as easy as possible to add value to the campaign. emily: what kinds of things are you seeing in the digital trends that unfold in terms of how the presidential candidates are managing their digital strategies? what sort of trends are you seeing solidify?
guest: a much more mass adoption of digital as a platform of choice. even four years ago it was hard to get everyone to focus on twitter and the hardware and software, the bandwidth wasn't there. you could not have had a periscope or a meerkat four years ago. we were carrying massive backpacks around to allow people to participate with the campaign. social media provides a level of access to the campaign that would be impossible otherwise. you can leverage those platforms and it improves the process and improves success. emily: should campaigns be spending more on social media and digital that they do in the past? should they be allotting more of their budgets to this?
guest: i would argue that they should. there is the investment in human capital. i think every dollar you spend now comes back fourfold in the long run. i think it's difficult for campaigns. technology is very disruptive. i think that is on the set up front. on the paid media component, we are still disconnected from how people consume a content. we still spend on broadcast heavily. it is only 40% of the viewership. a lot of this has to be fixed in the cycle. emily: you managed a budget of $100 million. how would you spend it differently today? guest: the hope would be that instead of being 10% of the budget it would be 25%. i think you would spend earlier. you have to win a primary. not everybody gets that coronation that hillary clinton is going through right now that allows them to invest in the future. in the primary, you have to build things that have value to you right now. i would invest heavily in the technology side and the human capital to build that out to be
prepared not just for the primary but for the general and have those resources be successful. emily: what you think is changed in this digital arena since you have worked for mitt romney? what can they tap into? guest: there is such a greater adoption of online. i think we are seeing that from everyone else. there is greater per dissipation -- participation and people are more comfortable giving online . they are much more conditioned through amazon or netflix. they are used to living online. we found one in three likely voters did not watch live television except for sports. if you want to communicate with them, you have to be online. i think the model has changed and presidential's are the way people see that scale. emily: you are seeing a lot of infighting between the candidates over social media. how does that play out and how does that affect their digital strategy? guest: that is somewhat generational.
it's also seeing the way campaigns are being run now. people are inserting themselves personally into the process. you see reporters insert themselves as the story and share point of view. that is to be expected. we are still comprehending how social works. there is a lag. sometimes it is new and different. it's interesting that it's driving as much of the story as it is the candidates themselves. emily: he was the digital director for mitt romney and cofounder of targeted victory. up next, city planning. we learn about a high-tech hub being built in saudi arabia. ♪
emily: this is the best of "bloomberg west." i'm emily chang. silicon valley may be the heart of innovation it, but a new mega-city in saudi arabia is fusing urban planning and technology. the country is building a massive high-tech city. 80 companies including ikea and pfizer are going to be in the plan. i spoke with them about it. guest: it has been in the works for nine years. i have been there for seven years doing it. by the end of next year, we will have the largest port in the red sea. it will be the largest private port in the world. we have the most successful industrial zone and we have the largest developer in terms of residential units. we wanted to be the most innovative. emily: $100 billion to complete this city. it may be larger than washington dc by the time it is done. how do you ensure that this place is going to be the future?
guest: we want to make sure that the 2 million people live there are going to be engaged. we want to give them applications that enable them to help us run it and keep the streets clean. emily: we are talking about housing and health care. how do you prioritize? guest: it's not about the technology, that is the enabler for the resident. it's about the customer. the idea is simple. you will be able to manage things. we are going to introduce smart applications into the home to let you know how much energy you are using. and which applications are actually inefficient. emily: who are you talking to in silicon valley? guest we are talking to everyone : in silicon valley. emily: like who? guest: i can't tell you. emily: what do you want silicon valley to do? guest: there is the network and
the applications that will run the hardware. that is why i am saying that the small companies are as important as the big ones. we can actually scale. we have 400,000 units that are going to be built. whatever technologies we can take we can actually scale them. emily: when is this going to be completed question mark -- to be completed? guest: by 2035, think we be 2 million people. 3000 people have moved in. by the end of year it will be 10,000. hopefully by the end of next year emily: what kind of demand , 15,000. is there to live in a place like this? are people uprooting themselves of other parts of saudi arabia? guests: you have to remember, 65% of the population is under 30. they are the biggest users of youtube and twitter in the world. they are very mobile. we are giving them the opportunity to live and work in one of the most progressive cities. emily: what is the sales pitch?
guest: find a place to live. emily: what are they going to do for work? guest: we have great jobs from all over the world. there are so many companies that are invested for the first time it. -- for the first time in a country. they are setting up in the country and they can build a great career and have a great home. the red sea is one of the most beautiful places in the world. emily: two real estate close to home, google's plan to build a new campus in mountain view has suffered a big setback. the city council awarded linkedin 1.4 million of the 2.2 million square feet available for its own campus. google god just over -- google got just 500,000 square feet for its own campus. is it game over for googles big plans? i spoke with brad stone. guest: the city of mountain view and other cities in silicon valley, they look for economic diversity. they don't put all their eggs in the basket of one company. they are worried about one
company getting too powerful. they are into student traffic -- they are also into reducing traffic congestion. it is a mess right now. matthew created this artificial limit on the amount of space to can be developed. but it is an artificial limit. there is a fight for that space. it's not like it was awarded to linkedin. they have to pursue other avenues to try to develop these incredible pictures you are seeing right now. emily: let's talk about the google plex. it is incredibly innovative and futuristic. what is so special about it? guest: all of the technology companies are trying to build iconic headquarters that rethink the relationship between them and the surroundings. google hired to european architects. it is for a much directed by larry page. emily: there are no floors -- there are no floors, right? there is one floor. guest: you can avoid the stairs because it slopes upward. there are these huge canopies
that can control the climate. they reduce glare. you work more in the open and it is open to nature. there are lot of ideas in this proposal. the idea is to create a flexible space to can be tailored to suit a company's needs. emily: do they have more options here? guest: it's a temporary setback. but google did get some property. it also owns a lot of other land. like moffett field nearby. it wants to build near the current google plex. i think this process will play out and google will find a way. emily: the google plex will happen, you are saying. guest: i think so, yes. emily: brad stone. up next, former jcpenney ceo ron johnson joins us. ♪
emily: this is the best of "bloomberg west." i'm emily chang. he pioneered the iconic retail strategy and led jcpenney. he is taking the text or experience to your home. ron johnson has launched a spot that allows people to shop or technology products and have them delivered and set up at home for no extra cost or it can -- no extra cost. can he reinvent the retail experience? i asked if it will be like the genius bar. guest: it is a great way to buy a new product. you just go on enjoy.com and pick a product you love schedule , a time and place. we will deliver it and spend an hour getting you up and running for the same price you would use at the store. emily: this is just electronics. this sounds like something i could really use. guest: i think a lot of people could use it.
emily tell us about some of your : partners. guest: we have a lot of partners and we have -- in two weeks you'll be able to buy your new smart phone. whether it is an iphone, and android phone, or windows phone. just go to the website. then you can schedule a time and we will hand-deliver your smart phone. we have go pro cameras. we have hp computers. we even have a ride like a boosted skateboard. a variety of things that will improve your life. emily: sprint does something similar. they will bring you a phone on demand. you say you will bring it in an hour. on average, how long will it take for me to get a product to my house? guest: you can go on at&t's website and within four hours we will hand-deliver the phone. it could be here in the studio if you wanted. it is anywhere you want for a mobile world. emily: i could think of a few things i would like. a big tv, for example. you obviously have a deep knowledge of the retail industry. i wonder how you came up with this idea?
why you see this as an opportunity? guest: i was in retail for a lot of years. i want to rethink how we buy things and how we experience products. i noticed that the world is going mobile. young people like to drive with uber. there is a lot of delivery becoming a big part of our life. we are moving toward mobility. all the devices are moving toward the home. that is where things get complicated. if you want to have a smart home, who is going to help you put it all together? we think it's time for someone to come in and help you navigate this new world. emily: how big of a threat is amazon to retail in general? it just seems like they are eating everybody's lunch in trying to do everything like same day delivery. guest: it is a great company and they are in their 20th year. they are the inventors of e-commerce as we know it. their hallmark is convenience. they are a great place to buy
and have something delivered. but that is really their strength. emily: what is their weakness? guest: when you need help. we live in a world where you want personal service. that is what stores do well. we are trying to take a digital purchase and pair that with service. we've been in business for six months. when you change the location you change the game. emily: you revolutionized the apple experience. jcpenney was another story. why will this be more like the former than the latter? guest: i have had a chance to learn from everything i have done. i have been in retail for 30 years. overall, my batting average is pretty good. the most important thing that is going to make this successful is people are clamoring for personal support. you want a human connection. you want to bring that to people everywhere. it's going to be wonderful. emily: what you think about the
apple watch? guest: i think it's a great first generation project. people are learning how to use it. i think we will look back and that will be the first wearable that we wore. emily: have you tried it? do you have one? guest i don't have a today, but : i do have one. emily: how you think about the way they are selling it? guest: they are showing people how to use it in stores. there is such demand for their products. they want to make it fair for customers to get it. if everyone goes online, it is a first, first-served approach. i think they are trying to be really good to their customers. emily: you think it's a good call? what do you think of angela? guest: i'm a huge fan. angela and i have known each other for years. they love her and apple and she is doing a great job. emily: speaking from your apple experience and your jcpenney experience, what have you learned that you will do differently at enjoy?
guest: it takes a long time to build a business. you look back, and it seems like they happen overnight. it takes time. i keep telling my team, we are going to build this one visit at a time. one customer at a time. we will learn from each one and get better and better. there is no risk. -- there is no race. it's about building a great company that lasts. you go on our website and you see our brand, live. -- our brand come to life. we handpick -- i know everyone of them personally so far. that is what you need for a great business. emily: you've got 127 employees and you are just launching today. how will you make money? guest: it's simple. most products are priced to go through a store. stores invested a lot of things that don't help a customer. big buildings, rates, depreciation -- rent depreciation. we invest in our people. if the investment is in a person, you can deliver that for a lot lower cost. emily: ron johnson there.
stephanie: stan druckenmiller has one of the best records and now he is sitting down with me. what he is worried about, what he is betting on, and where does he see the markets heading. find out straight ahead on this special edition of "encore." stan: why does the economy need holding up now? it would be remarkable to me if the run in the euro is over. there is good debt growth and there's bad debt growth. stephanie: welcome to bloomberg "encore," i am stephanie ruhle. it is hard to find anyone with more insight in investing. he spent years working under george soros. he ran duquesne capital management for three decades before converting it into a family office in 2010.