tv The David Rubenstein Show Peer to Peer Conversations Bloomberg October 21, 2017 3:00am-4:00am EDT
♪ jonathan: from new york city, 30 minute dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, in the race for yellen's chair, front runners. trump's tax-cut effort takes a step forward in the senate. the ecb prepares to unveil its next move. better data offset by ugly politics. we begin with the big issue, the race for the fed chair. >> leadership matters and who is in the chair does make a difference. >> i think there are a lot of
good names on the list. i don't think with that list of names, even yellen, i don't think the president can make a bad choice. >> the political considerations outweigh the current economic situation. a new administration often just once its own people on board. >> the interesting part is this discussion is coming at a time when there is the so-called mystery about the low level of inflation. the interpretation is quite important. >> i think they would view jay powell as someone to be more continuous in the policy we have been experiencing. >> we will have a very accomplished economist as the head of the federal reserve for the foreseeable future. jonathan: joining me is mike collins, bob michele, head of the global fixed income commodities group at jpmorgan asset management, and marilyn watson from blackrock. great to have you with us.
let's begin with where the odds are for the race for fed chair. the number one spot seemingly is jay powell. at the number two spot, if you look the front runners is reportedly jay powell and john taylor. the spread between those two is really quite wide. mike: in the last few days powell's odds have really soared in the marketplace, because he is probably the one most conducive to a more continuation of existing policies. more of a certainty, less of an unknown. less risk to the markets. taylor is a little bit of a wildcard. jonathan: how are you thinking about this at the moment? bob: i will take jay powell, because he is a moderate. i think he will be good for asset prices. i hear john taylor, kevin warsh. i really want gary cohn in there. jonathan: why would you really want gary cohn? bob: i think it is time to get a markets practitioner into the
fed seat and balance the econometric models of the ivory towers with the real world we all have to deal with. havehan: i don't think i ever heard anyone talk about gary cohen for weeks. bob: i thought i would serve him in when you gave me the airtime. jonathan: marilyn, as you sit around with the guys of blackrock anticipating the decision that could come any day now, how you approach a decision like this? marilyn: you have to look at the probability. we are looking at what the market is pricing in. when you look it all the different candidates, a lot is known about several of them. potentially when you look at taylor and how hawkish he will be, i think it's overplayed. when you look at the list of candidates, some on the more hawkish side, but actually it is one person that will be leading the fed, but they will have one
vote. they will be leading a committee. it is all focused on the fundamentals and the committee as a whole at the federal reserve. jonathan: if it dropped across the bloomberg terminal that john taylor had been nominated as the next fed chair, would you be fading that move off the back of it? marilyn: we expect to see more volatility. if you look at the bloomberg terminal and where it's pricing in where the taylor rule is pricing in interest rates, is about 2.5% higher. when you look at taylor himself, he is much more flexible in his approach to the unemployment rate. he is much more flexible in his approach. we would look to trade volatility. we would expect to see a flatten er. mike: i think the monetary policy implications for whoever the fed governor is is not that big a deal. i think the monetary policy is on a set course. remember, it is driven by the consensus of the committee. i think the regulatory policy is a bigger deal.
trump wants someone new is a -- someone who is a regulatory dove. taylor would fit that bill better. jonathan: there are a lot of things to think about. i noticed mr. powell, the politico story, drives yields lower then the tax-cut story drives yields higher. i wonder how that will way out -- will play out over the next couple of months. bob: i don't think monetary policy can be put to the side. monetary policy is in a ridiculous place right now. i think if you look at somebody like john taylor coming in, why the markets are more frightened that the next paul volcker is coming in. he has got his rule. he is telling you it is 3.75%. i think he is right. i think the period of distorted monetary policy is something of the past. the fed, ecb, bank of japan need to step up. they need to step up the pace the normalization. what comes out of washington is
something different than that. if we get some stimulus, what is the stimulus going to do? it will accelerate the recovery we have already seen. i can see rates buffeting back-and-forth between this. i don't know if it has much to do with the fed chair or stimulus, it is still qe after effect. jonathan: people say we want a real market back, but volcker back? really? he had inflation to deal with. not inflation with a to handle. come on. bob: inflation is picking up. i am going to pull up a chart because i get this all the time. people say no, there is no inflation. you see it. you see year-over-year wage gains coming up. you see the inflation across europe, japan, china. it is all picking up. jonathan: is it picking up, marilyn? marilyn: it is picking up to a certain extent. still from very, very low levels.
it is all relative. certainly still at very low levels. jonathan: michael collins, you will take the other side of that? mike: all day long. given the fund rate is 03% it will assure we go into a recession and the stock market crash. if you have a money market fund at 3% or 4%, everybody would take all their money out and put it into money markets. it is too good to be true. on the inflation side, i'm in the disinflationary camp. i'm looking at anecdotal evidence of companies in the world that have the ability to raise prices on their goods and services to consumers. there are very few that can do that. it is the opposite. they are all fighting with each other for market share. bob: i found the chart i was looking for. what you are looking at is developed market core inflation and china cpi year-over-year. this goes back to 2012. there is the deflation? where is the downside risks they
are trying to respond to? they are behind the curve. it is starting to get away from them. you can look at the recent wage data in the jobs report. you can look at the atlanta wage tracker. it is all headed one way. jonathan: you joined me on this program since its inception. mike collins said i will take the other side of the trade. bob michele is in trouble. you can be right about inflation but wrong about a market? bob: it is true. before you claim i have been wrong about everything. jonathan: i have not done that. --: youth could be higher yields could be higher and should be approaching 3% now. the other thing we have seen is the weight of quantitative easing that has come in and suffocated the market. it is that weight of the cash that is helped yields in a very narrow range. 215 to 250 or most of this year. there has been a bear market. it has been on the front end of
the curve. they will raise rates in december. it will be the third time. it does not make any sense to me that they are still going this low unless you look at qe coming into the markets. jonathan: i wish we had a camera and a microphone during the commercial break. everyone sticking with us. mike collins, bob michele, and marilyn watson. coming up, the auction block. nathan's first bond. this is "bloomberg real yield." ♪ ♪
i am jonathan ferro. this is "bloomberg real yield." some breaking news regarding fed chair janet yellen. back at the white house. said to be back at the white house according to a person familiar with the matter. this appearance following the day with her interview with the president of the united states. fed chair janet yellen is said to be back at the white house. this is according to a person familiar with the matter. morganael from j.p. marilyn watson from blackrock , and michael collins from pgim. situation, we barely discussed fed chair janet yellen staying on his fed chair in the previous segment. why? bob: i think her time has come and gone. i think she did well in the aftermath of the financial crisis helping to continue bernanke's policies. i think the administration feels they need a breath of fresh air to come in particularly if they're trying to pull the republicans along with them and trying to bring the rest of congress with them.
jonathan: i thought she signed a resignation letter off the back of the jackson hole speech which she defended the regulatory regime. you put the emphasis on deregulation. is that ultimately look at sign a resignation letter as well? mike: i think so. she pushed back against trump's emphasis on deregulating the banks. in her defense, that is the right move. one of the best things that is -- that has happened in the cycle with the regulatory pushback has been the fact that banks are in as good as financial shape as they have never been in our career. bob: but not extending credit. that is the one problem. it is true the regulation has done a lot of very good things. has it gone too far? where is the extension of the credit? why all this raised capital and then buy riskless government bonds and in europe and mostly negative yields? jonathan: janet yellen is said to be back at the white house. the appearance following a day after her interview with the president of the united states.
you asked where the credit is. let's get it up on the screen. credit spreads are as tight as they have been for quite a while across the whole quality spectrum. they could not get much tighter. that is where the credit is, right? bob: it can get a lot tighter. most investors look at high-yield at 5.5%. it does not strike them as high-yield. they think high-yield should be 7% to 8%. it is not the 5.5% yield or the 3.5% credit spread. it is the risk-free rate, which is about 2%, and the real yields which are negative. i have pulled up a chart where i look at real yields on the 10-year treasury. you can see the distortion that has been created by quantitative easing and the growth of central bank balance sheets. credit spreads of 350 over, at 1% defaults i think they should be 250 over. jonathan: mike, way in. mike: credit spreads are getting
to the point where they are not only fully valued but potentially overvalued. i'm looking at spreads it gets a lot of corporate sectors and the -- and they are basically at historical tights now. in the last couple of weeks and days we have seen a snap tighter in spreads with the optimism on tax reform. we are pushing back against it. we are fading the credit rally. jonathan: marilyn, is this is a sign of complacency or is the risk mentality here to stay? marilyn: we see the risk on mentality here for the time being. when you look at global growth, it is still on a very robust stance. when you look at global monetary policy and central banks, they are at an inflection points where they will reduce monetary policy. when you look at the investors, where they are putting their money and trying to get yields, the markets and credit are two sectors -- we do feel they have some value. we are becoming increasingly cautious on the names we invest
in. it will be incredibly important going forward to look at the risk, leverage, and where you are investing. jonathan: where are you selling? mike: we are selling double b rated credits. that spreads in the low to mid 100's. we are selling some inside 100 100 basis points, because there is such a demand for extra yield from investors around the world that they are not that price-sensitive. we are selling those and rotating into triple-a asset-backed securities, collateralized loan obligations that spread of 100 or higher in some cases. jonathan: i need to take a fee. i can make a market. [laughter] you are going to sell them. bob, buying? bob: absolutely. i'm not selling credit in here. i don't believe we are anywhere near the tights. if you go back to 2006, 1996, credit spreads got to something like 250 over. that is where we are heading. we have 100 basis points to go.
we are selling the markets that are distorted. it is the central banks that bought the government bonds and compressed real yield. get rid of that stuff. right now everyone is looking , for credit. marilyn is right. corporate balance sheets, earnings, the quality of earnings all the pretty good. jonathan: wait a second. distorted markets exist across the whole fixed-income environment. bob: true. jonathan: if you want to sell distorted credit, that is it, isn't it? bob: no. there are a lot of things you can do. you can go into the loan markets. you can take out the fixed rate component. the other is you can buy spread credits. all of us can sell the treasury market against it to hedge interest rate sensitivity and just capture the credit spread. you are right. if the fed continues to normalize and the other central banks jump in, you will see a return of real yield to the market. that will ripple through every asset class and every discount rate people are using in those asset classes.
jonathan: michael collins, bob michele, marilyn watson sticking with me. i want to get you an update on where the bond market is this week. choppy over the last 24 hours. yields higher throughout the week by seven basis points, front end by nine. still ahead, the final spread. the week ahead features that decision from mario draghi. this is "bloomberg real yield." ♪ ♪
catalan parliament. you have u.s. gdp and the ecb decision. still with us, michael collins, bob michele and marilyn watson over in london. janet yellen said to be back at the white house, returning just a day after her interview for the president of united states. some choppy market action off the back of that. this fed race is very difficult to interpret. how do you view the headline risk around all of this? mike: it looked to me like some somebody assumed she was there for a follow-up interview. i don't think that is the case. -- she is the front runner. i don't think that is the case. i think she is told she will not be the fed chair and will be allowed a chance to step down. jonathan: 24 hours later this will get replayed. we could all sound really stupid. why shouldn't to give her the job?
bob: i think mike pointed out there is the whole regulatory issue. you want somebody in there that will be a bit more balanced. just to get a breath of fresh air and get rid of these unconventional tools. they are distorting the markets. let's go back to a market-based economy. jonathan: the ecb is meeting next week. they are set to unveil potentially -- what they are going to do with the qe program. do they cut it for an extended period or extended for a longer period? which one is it going to be? mike: they telegraph what they will do a little bit last week. their staff came out with a report that looks like they will cut the purchases from 60 billion a month to something less, presumably 30 billion a month and extend that. it is supposed to expire at the end of this calendar year. extend that through september of next year. another nine months. jonathan: this is just remarkable from deutsche bank. seven times net issuance. that is the ecb's activity in
this market. when they pare back, how significant is that going to be? bob: it is going to be pretty significant, but they will still be buying 3.5 times the net issuance. they will still be distorting the markets. i think it is not the next nine months where they will cut the purchases in half. it is the nine months after that. you really have to get about a year from now to figure out how the markets are going to revalue. jonathan: the situation with treasuries when the federal reserve steps back and yields went lower. why can't the same thing that happened with bunds? marilyn: bunds are already very low. rates are negative. as both michael and bob pointed out, there will be a sustained period where the ecb is still buying. it is our view they will buy about 30 billion between january and september of next year.
looking forward is when the forward guidance comes into play. the market will look at if interest rates might rise from a negative rate. when you look at the eurozone economy as a whole, it is continuing to grow. particularly when you look at germany, spain. economic fundamentals are very positive. even when you look at the labor market, it is coming back from weak levels. it is difficult to see a situation in two or three years we still have a negative rate. jonathan: looking at the periphery, you told me last time you were buying greece. are you buying any other peripherals at the moment? mike: we are long on a handful of peripheral countries. i think credit spreads are still wide. the eurozone is seeing a real rebound in economic activity. they have been the star performer globally. it feels like a coalescence happening politically in europe as well. we are pretty comfortable with some of the peripheral credits. jonathan: what is the trade in europe for you? is still corporate
credit. particularly euro high-yield. it looks great to us. we look at something like 10% of the universe is going to become a rising star. you can get yields a 2.5%. i would take that all day long over peripheral europe. jonathan: guys, you're going to stay with us. the next segment is the rapidfire round. keep your answers as short as possible. taylor, powell, or yellen? mike: powell. marilyn: powell. bob: powell. jonathan: credit, wait for the correction, or it's not getting any cheaper? mike: i think you sell and wait for the opportunity to buy at wider spreads. bob: buy all day long. marilyn: stay in it for now. jonathan: bund yields, higher or lower your end? mike: lower.
bob: higher. marilyn: higher. jonathan: that does it for us. thank you for joining me, mike collins bob michele, and , marilyn watson. that does it for us. we will see you next friday at the same time. 12:00 new york time, 5:00 p.m. in london. by then, we might know who the next fed chair is. this is "bloomberg real yield." ♪ retail.
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financially self-sufficient at 14 years old, able to pay his own way through harvard, nathan always knew he wanted to be an entrepreneur. the company he started in 2008 is now valued at more than $36 billion. a chief strategy officer at airbnb, from the company's san francisco headquarters, the company to which sharing economy could further shape our lives. ♪ haslinda: nate, welcome to "high flyers." good to have you with us today. nathan: thanks. haslinda: airbnb, it was a model never meant to take off. it was against everything your parents taught you. never bring strangers to your own home, but here you are, one
of three cofounders. take us through the early days. nathan: that's right. this didn't start with big business ambitions. we were solving our own problem, how to pay the rent. haslinda: broke. nathan: we were roommates in san francisco. in the summer of 2007, the rent on our apartment was raised 25%. i said i'm out of here, but the two other guys wanted to say. they could their jobs to become entrepreneurs, also known as unemployed. [laughter] they were broke as well. they are both designers and they saw an international design conference in san francisco. all the hotels were sold out. they thought, why not rent out my vacant room? the room was empty with no bed, cofounder set up an air bed. he called it an air bed and breakfast.
that's what airbnb is is short for. they all went to the conference and had a good experience. it was really meant to be just that. accept, a couple months later, the three of us had quit our jobs. in san francisco, everybody wants to be an entrepreneur, so we were racking our brain, what can we do together? maybe there were other people in other situations where we could do the same thing. maybe we could be just as easy to book someone's home as a hotel. that is what we set out to do in 2008. haslinda: it wasn't so easy though, right? you were the one who coded the original airbnb website. it must have been difficult. they have a dream. you have to bring it to reality. how did you do it? nathan: they could often dream
faster than i could code it. [laughter] that's why we wanted to work together. two things we noticed, we had the same work ethic. haslinda: which was what? nathan: when we did have jobs, in addition to our jobs, on nights and weekends, we had projects. we would be in the living room cracking away on things we were passionate about. we noticed that about each other. the second thing is we had complementary skill sets. i was helping them create websites for their project. they were helping create marketing material for my project. well, between the three of us, we can do anything. haslinda: airbnb wasn't your first start up. you had two or three other startups before that. what did you learn from that? how does it help your journey to airbnb? nathan: well, actually, i got started as an engineer, head of programmer, computer programmer at the age of 12. haslinda: real job.
you were making money back then. nathan: what happened was, it started with me as a young person really liking computer games, like so many young people to. -- young people do. but then, i wanted to modify the games. my dad is an engineer. one day i was home sick from school. one-day, i was bored, sick from school, and looked through one of his books. this was a hobby i had. posted my work on the internet. i said if you like my work send a five dollars. nobody ever sent me any money until at the age of 14, i got a , phone call. somebody said, i saw your work, i want to pay you $1000 to create something similar. i told my dad. he laughed and said son, no one will pay you $1000. [laughter] i said whatever, i'll do it. i got paid. i got introduced to other aople, and this began
business i ran throughout high school. i made almost $1 million. haslinda: paid for college. nathan: yes. more important than the money was the lesson that taught me. one, i could teach myself all the necessary skills to build these products. two, i could build these things that other people valued. out of that i knew i wanted to , be a lifelong entrepreneur. haslinda: what made you think airbnb was going to work? nathan: it is literally because we had seen it firsthand. we had seen the value proposition of those designers from out of town having a place to stay when there were no other options. also, how much they enjoy the local experience, friendships that were formed. that was hard for people to understand. the only thing they could think about or the first thing that came to mind was, how can you trust strangers? on the other hand, we had
overcome that mental barrier and seen what good can result. the question was, how can we convince everyone? our major innovation in 2008 has been around trust, creating an environment where people can have trust. then all of the good stuff can flourish thereafter. it's really come down to three things in the beginning, user profiles that were very descriptive, very much about the person. second was how we handle the money. there's no risk of financial loss. you pay through aaron beebe -- you pay through airbnb as an intermediary. the third is, at the end of every transaction, the host reviews the guest, the guest reviews the host. literally people build up reputation for you know who you are dealing with. haslinda: have you been surprised by the listings you have? there are castles, treehouses, private islands.
nathan: it has been a balding. we literally offered an air bed as the first accommodation ever on airbnb. it became entire apartments, then it branched out from there. one day, someone put a treehouse up, an island, a boat. [laughter] at first, we didn't support it . thousands of boats have materialized. the internet has the ability to connect people to so much of the information that was previously lost. that's the same for the off-line world. these tree houses and castles always existed, but you as an individual never had access until now. it's all on airbnb. in a couple of clicks, you can click it and stay there. ♪ nathan: we went to a lot of
and they said things like "this is not a product i would use." they weren't the target market at the time. they couldn't believe that there was a large market. they said, how could you trust a stranger with someone else's home? they repeatedly would say that. the entire first year, we were unsuccessful raising money. even approaching our mentors, somebody i really respect i remember saying i hope that's , not the only thing you are working on. [laughter] it was very discouraging. by the time we got to the end of the first year, we were having a conversation about, when do you know that it's time to quit? we had been without a job for an entire year, not making any money. we still have to pay rent. haslinda: you guys were broke. nathan: we were broke. haslinda: he led credit cards mounting tens of dozens of dollars. nathan: that's how we were paying for things, on credit cards. [laughter] investors were uninterested. we had conversations, when do you know that it's time to quit? we had a realization that
although over the last year we had been working really hard, we had been a little bit distracted, too. we had side projects going on. at the time, i was in boston. they were in san francisco. we work together as a team, completely focused. we made a commitment. we said, let's give it three to four months where we live together and have nothing in our lives except for this. we will work six to seven days a week. if we are not in a better place, we will quit. haslinda: you bought dozens of dozens of serial boxes and converted them. something to do with obama and mccain. what happened? nathan: we had to get creative to generate publicity for our company. we were thinking, had we make ourselves relevant and get the word out? at the time, it was leading up to the election.
we got this idea to create a presidentially themed breakfast cereal. back then, we were called air bed and breakfast. we said, ok, let's do a play on the breakfast idea, president themed breakfast cereal. we came up with obama-o's, and captain mccains. we designed original artwork for each box. we put the boxes together, stuffed serial back into them. the first 100 of these we melt -- we mailed to reporters like yourself. [laughter] we got, if she gets this hilarious box of cereal we designed, she will be curious and color spec. that is what we did. weeknd out 100, and that we ended up on good morning america. the day we were on cnn, it became number one political video of the day. in the box we created we sold on a website for $40 a box every
three minutes. we made $30,000 that week. we joke that that's how we finance the company in the early days. haslinda: what helped also is the funding from sequoia capital, $600,000. that was a game changer. nathan: right. at the end of the three months, our business was growing for the first time. we started making $200 a week, having no growth. by the end, we were making $4500 a week, all in the span of three months. sequoia capital we had introduced to. they gave us that $600,000 funding for 20% of the company, which ended up being a good investment. the company is now worth quite a lot, $30 billion valuation. going back to what i said earlier, we were on the verge of quitting.
we said just three more months. luckily, we never have the conversation about should we keep doing this, because we had the funding. haslinda: what's interesting is the involvement of actor ashton kutcher. how did he get involved? who approached who? nathan: i forget the specifics, but most people don't know this. they know him as an actor, but he's a savvy and prolific investor as well. i forget exactly how the introduction was made, but he loved the model, and we thought it would be great to have him involved. he's obviously a part of mainstream pop culture. we thought, this is a concept that requires a bit of explaining and trust. maybe he can help us build the brand. haslinda: now, you, cto officer, now chief strategy officer. how are you positioning the company?
are three large directions we are growing. one is geographic expansion, early on we set our sights on being a global company. travel is inherently global. we thought we would only work in new york, united states will it work in asia, china? it wasn't known. over the last several years we have proven that it popular all over. we are in 191 countries. to this day, we are still focused on geographic perspective. there are 400 million millennial's in china part of the middle class. they are eager to explore the world. haslinda: although there is great potential, what do you make of the competition?
it's a complicated market. andan: complicated market, fierce competition. our approach to the china market is to make sure we focus on our unique strengths. none of the domestic competitors have that kind of global network. we have positioned ourselves as the only way for chinese millennials to travel abroad and authentically experience the culture. that is our value proposition, and no one else has that. it has allowed us to become popular and experience a lot of growth. ♪ haslinda: how does it feel to be a billionaire? nathan: it's not something i expected. it's easy to give money away, but to do that in a way that has a maximum benefit requires a great deal of thinking. ♪ ♪
haslinda: i want to talk about how you grew up. mom's a homemaker, dad's an engineer, he had a huge influence. that is the reason why you talked about picking up an engineering book when you were 12 years old. that really changed everything for you. nathan: it started before them. my dad taught me a few things. he was always trying to help us understand how things work. as an engineer, he was always bringing things home from work. haslinda: like a xerox copy machine. [laughter] nathan: it was quite a large back then. he literally had it in the backyard for half a year. he would do things like this and
losing the screws, but let me do the rest of the discovery. he was a do-it-yourself data. -- do-it-yourself dad. he's always fixing things himself. no project was too big or too small for him. he taught that spirit of, you can do this. you don't know how to do this, but you can learn how to do this. as an entrepreneur, you have to have that mentality. haslinda: some people may not know, but you are also once blacklisted, named in the spammers. known what happened? nathan: i had this business in high school about internet marketing, specifically stuff around email marketing, of which can order on the line of spam, back in the 1990's. haslinda: it was legal back haslinda: it was legal back then? nathan: back then, this was a
new way of promoting oneself on the internet. the internet was brand-new. there were no rules. perhaps it aggravated some folks. it was an emerging space. out of that has been born a whole industry that now is more tightly regulated, but also is still very important for companies and how they promote themselves online. but these were the early days. haslinda: when you look at your journey so far would you have , done anything differently? nathan: i don't know, but the advice i would give to any young person is that any setback you experience along the way, put that in perspective, which is to say --there's a lot ahead of you. see that setback as a learning opportunity. we talked a lot about my success stories in high school and now airbnb. there's plenty of things and worked on that were disappointing. haslinda: such as?
nathan: programs i created, but -- put a lot of work into that didn't take off. when i started airbnb, i was working on two other projects very hard that weren't successful. that was disappointing up a time. when a look back on those, each experience was a learning opportunity that made me more successful once i started airbnb. i had the benefit of that experience. i would just encourage people to see failure as learning opportunity. so long as you don't give up and bat,eep getting back up to these are all things that make you stronger. haslinda: you know, now you're worth $3.5 billion. how does it feel to be a billionaire? did you ever envision, do you still pinch yourself? nathan: it does seem rather unreal. it's not something i tend to think about. i have a lot going on work-wise. [laughter] in my personal life, i have a family.
it is not something i dwell on. that being said, obviously incredibly fortunate. it is a challenge to think about coming given this fortunate ?osition, what you do with that it's not something i expected. i feel a responsibility. what excites me most is having a positive impact on people. i think we do that through airbnb your business. now that i am in this position the question i ask myself is, , what can i do with my newfound wealth that will benefit others, in a way that is maximally effective? it's easy to give money away, but to do that in a way that has a maximum benefit requires a great deal of thinking. haslinda: you are a disruptor. futuremuch a part of the
economy. people now are already sharing rides, homes. can 20, 30 years down the road, how does the future economy look? what kind of other disruption do you see happening? nathan: i think there is going to be a lot of changes in the broader economy and it is going to create challenges and opportunities. one big challenge is with artificial intelligence and self driving cars, there is going to be a lot of work that will -- happen of pilot automatically in doesn't require people. the question becomes, what will they do? work is important. that's going to create new opportunities for people to, well, you need to ask the question what can people , uniquely do? one thing people uniquely have his passion. things around education and healthy living, bringing people together to create special moments those are things i , -- things that cannot be
easily changed or eliminated through technology with these changes. how can technology help bring people together, and with these changes, will there be enough scale through time for new markets to be created in these areas of teaching and connecting people with similar passions? haslinda: do you airbnb every time you travel? is your home on airbnb? nathan: yes and yes. [laughter] i've literally states are hundreds of homes. yes, i'm host in san francisco. haslinda: do they know that it's you? nathan: sometimes, generally not. sometimes i will have a conversation with them on the sidewalk. they are often very shocked. [laughter] haslinda: thank you so much for joining us. nathan: thanks for having me. ♪
>> the thrill of living well is in the pursuit. the pursuit of the rarest experiences, the pursuit of the finest products, the pursuit of quality in everything you do. and in all of these pursuits, you need the best intelligence to make the best decisions. >> we know she sells for a lot, but what makes her important? >> it is not easy. it's difficult work. >> welcome to "bloomberg pursuits," the show that helps you follow your inspiration. in this edition, hannah elliott talks cars with jay leno. >> they are like dinosaurs from another era. >> knowledge you have been