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tv   Bloomberg Markets Asia  Bloomberg  May 24, 2017 9:00pm-10:01pm EDT

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♪ it took me a while to learn how to pronounce it. >> you had a losing record, then you won the national championship. >> we ended up winning one of the greatest games of college basketball. >> you won your third gold medal. >> the international anthem being played, nothing better than that. >> will would you say is the most important lessons of leadership?
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♪ >> i don't consider myself a journalist nobody else would consider myself a journalist. i begin to take on the life of being an interviewer, even though i have a day job of running riot equity firm. leadership?efine what is at the make somebody tech? thank you for taking the time to be with us. up, whenwere growing did you learn to spell that name? >> it took me a while to learn .ow to pronounce it we lived on the north side and my dad was from the south side. we would visit relatives, and my
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uncle joe, a policeman, whenever we would go and see him, he >>ld say, what is your name some of my family change their name to cross because of discrimination. that.id not want he wanted me to always have it >> my dad is the name cross when he was an elevator operator in downtown chicago. he died when i was a senior at .est point we finally had a change when my mom passed away.
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>> you grew up in chicago. did just and going to be a great basketball coach? was an all-state player and went to catholic schools. i was the leading scorer for two years and was recruited, but my mom never went to high school. my dad went to two years. i was recruited by west point. that auld not imagine polish kid from chicago was going to go to school, could go to school where presidents went to. david: right. mike: and so i didn't really want to go to west point. david: because? mike: i wanted to dribble behind my back or throw bounce passes that were fancy. i did not want to carry a rifle. david: did you have a division i scholarship offer? mike: oh, yeah. yeah, yeah. i probably would have gone to creighton, and wisconsin maybe, and, but my parents kept putting
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pressure. like they would speak polish in the kitchen. that's where -- we never had a house, but we had a flat and they would talk in polish. stupid. david: and you did not know polish? mike: i did not. i did not know this until later. they did not want me to take polish in grade school and high school, so that i would not have an accent. because they were afraid i would be -- david: it was not because they did not want you to hear what they were saying? mike: probably they had a number of different motives, but they would put a few english words in there -- stupid, mike. finally i said, i will go, and it was the best decision i never made, you know, to go to west point. david: right. mike: it is really, going to west point is the basis, the foundation, of everything i am right now as a man. david: when you went to west point, were the players a better
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level than you thought they were? mike: yeah, we were good. yeah, coach knight, bob knight, one of the legendary coaches to coach. we were a top 20 team one of the three years. freshmen were not eligible at that time. we always had a winning record. we went to the nit. the nit was as big as the ncaa during that time, so we were good. we were very good. i got to be a point guard and captain of the team. david: so did people come along and say, well, you have to go into the military, but you're good enough to play in the nba? mike: no, i was not good enough to play in the nba. david: did you know that? mike: yeah, yeah. it's not like it was everyone's dream at that time. my dream coming out of high school was to be a teacher and a coach. david: ok. mike: and i was able to play a lot during my five years of service. i was a captain in the army, field artillery, but i got to
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play on a number of all-army and all armed forces teams and travel around the world on temporary duty a lot during that time. david: so when you finish your military commitment -- when you go to west point, you have a commitment of four-five years. mike: five. david: you finish your commitment, then you got into coaching. where did you first coach? mike: indiana, i was a graduate assistant. i was getting my mba at indiana. coach knight was there, and i was there for one year and did not finish my mba. and i was fortunate to go back to my alma mater at the age of 28 and coach at west point. we took over a program that had seven wins and 44 losses in two years.
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i got the best start that you could get going there. david: you coach there, then duke was looking for a coach, and they interviewed you. your coaching record the year before you were hired was i think 9-16. mike: 9-17. david: 9-17. so it was not that auspicious. so why did they hire you? mike: well, first of all, they wanted to make a great decision. you know from your business, a lot of times if you look at one line item, it does not tell the full story. so, we took over a program that was 7-44, and after five years, we were 73-59. david: the athletic director at duke then was tom butters, and he took a chance on somebody he didn't really know. your record was explainable, but not great. did he know how to pronounce your name? mike: he did. i hit it off with him right away. david: all right, so you got it. the first couple of years were not wonderful. mike: no. david: after three years, you had a losing record. mike: yep. 38-47. david: 38-47. so were people calling for your firing? mike: a lot of people were calling for my firing, and we have a fundraising element here called the iron dukes. and during my first three years, i was able to establish a new fundraising element called the
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concerned iron dukes, and they were concerned about me being their coach. but my athletic director, tom butters, and president terry sanford at that time, said when i was hired, you have a lot of work to do. there is a lot of rebuilding to here, and just keep doing it. so, i was never worried, whether i was naïve or whatever, and the next year, we turned it around and it went crazy. and it is one of the reasons i stayed at duke. they were loyal to me. i love duke, but i am a big people guy, you know? like, if you are honest with me, you trust me, you believe in me, i am going to be committed to you, and that is how i felt about this university. ♪ david: because you are so successful, a lot of people root against you. mike: our sport is a very intimate sport. you are playing in your shorts and people can see you. they are right on top of you. so if i can see five guys in the front row of some arenas who
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look like doctors or lawyers, and they are giving you finger signs and telling you different things and you are saying, whoa, you know, where did that come from? ♪
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mike: it is really the main thing i have done my whole life. i sought good people. and that's why i am at duke for 36 years. how can you be better? how can you be better? [applause] mike: and so, as you move forward, choose your occupation and all that, but choose people. good people will make you better. believe me. good people will make you better. ♪
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david: so you turned it around and then you won the national championship the first time in 1991. mike: right. david: but to do that, you had a team that crushed you in 1990, unlv. what was that like preparing your team for that? mike: they had won 45 in a row going in. a lot of people felt they were one of the greatest teams in the history of sport, but we were good, too. and the two best players stayed on the team, hurley and laettner, and then we added a player who was better than anybody in grant hill. and because unlv had beaten us by so much, i'm not sure they had the edge that we did. and so, we ended up winning one of the greatest games in the history of college basketball, but it was not the championship game. so now, psychologically, we have
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got to get ready 48 hours and beat kansas, and we were able to turn that around to where they were thinking of kansas, and we won our first one. david: but the next year you came against kentucky in a semi final, and that became one of the greatest games ever played. mike: right. david: can you recount what happened at the end? mike: it was really a back-and-forth game, and they went ahead 102-101, and so our guys called a timeout with 2.1 seconds. we were down by a point, and when all the guys came in -- i think the very first thing a leader has to show is strength, and so i met them as they were coming to the bench and i said, "we are going to win. we are going to win." i don't know if i really believed that, but i kept saying it. and then we sat down, and a lot of times it is good to ask a guy to do something instead of telling him, so grant hill, i said, can you throw the ball 75 feet? he was going to inbound the
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ball, and he said, yeah, i can do that. i said, well, i want you to throw a ball and i'm going to bring laettner up to the top of the key, and i looked to laettner, who was very confident, very cocky, and i said, can you catch it? he said, "coach, if grant throws a good pass, i will catch the ball." david: ok. mike: and i said, "well, he throws it, you catch it, and i'll have two guys run this way, if you don't have a shot, hit one of them and less see what happens." so he threw it, laettner caught it. he dribbled once, which your heart sinks because -- david: he is not a famous dribbler or? mike: no, but there are only 2.1 seconds. he had enough courage and knowledge where he put it in, and then he shot the ball and it went in. >> there is the pass to laettner. puts it up. [cheering]
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david: so you won the game and went on to win a national championship. the last championship you won, the fifth one, 2015, that was a team where you were basically playing freshman. how did that happen? mike: well, it was a most unusual year. three of the freshman who went pro after that, they went early. they were one and done. they really didn't care, david, about their own stats. like if you can find people who are all into winning -- david: you mention the phrase one and done, and for those who are watching this who may not be college basketball aficionados, that refers to the fact that today you have to play at least one year of college before you can play in the nba. mike: right. david: then you can go professional. mike: and be 19. david: are you a supporter of this one and done rule? mike: it does not make any difference if you are supportive of it. we have no control over it. what you have to do like you do in business, is you have to adapt. you are not only adapting to different players over the 40 years i have been a coach and their cultures, but you are also adapting to when guys leave and the age of the team, how you teach your culture.
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so, grant hill, laettner, and hurley, if they were here today, i know mrs. hill and mr. hill would not want -- but some probably would have gone after a year. but now, that has changed. it is a different thing. david: well let's talk about recruiting. mike: i work harder at recruiting now than i have ever worked, because you have to do it more often. and to recruit the top players -- you don't know if they will be one and done, but they will go early. the really good ones are going to go early. so, that means you have to do it over and over, and it is not so much what you do in the home. before you ever get to their home, it's what you do on social media, the texting, how you communicate, the relationship building. relationship building is so much different now than it was then, and that whole landscape has changed dramatically where many nights you go home and you are
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texting 17-year-olds. david: let me ask you about the overall program you have built. now, you have a situation where duke is considered royalty in college basketball. but as a result of that, because you are so successful, a lot of people root against you. do you take that personally? mike: no, i never take any of that personally. i think that is useless to do that. you can't run your life based on that. and i think though those people respect you, and they respect me and my program. you know, our sport is a very intimate sport. you are playing in your shorts, and people can see you. they are right on top of you. so it is not like what the papers say as much as like during a game where people can say the worst things imaginable. i can't say them on the show. and they have to be hard-nosed
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enough to take that. i get that, too, but i'm older. i can laugh it off. i can see five guys in the front row of some of the arenas who look like doctors or lawyers, and they are giving you finger signs and telling you different things and i say, whoa, you know, where did that come from? ♪ david: last year, you won your third gold medal on behalf of the united states. mike: yeah, i love duke. college basketball has been my life, but when you win a gold medal and to have those guys with medals around the necks and your national anthem being played, there is nothing better than that. ♪
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mike: so all the teams i have been on -- whether the duke team, or the u.s. team, you would be shocked. we would have these meetings with lebron, kobe, kevin durant, westbrook and all these guys.
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we sit around and say, how are we going to live? we talk about fundamental things, communication. we will look each other in the eye. we are going to tell each other the truth. we are going to have each other's back. we are going to show strong faces. we are never going to be late. we are going to be enthusiastic. we are going to win and lose together. those are great standards. ♪ david: let's talk about the olympics. mike: yeah. david: last year, you won your third gold medal on behalf of the united states. mike: the biggest honor, david, is representing your country. you know i love duke. college basketball has been my life, but when you win a gold medal, a world championship or the olympic gold-medal, it is the whole world, and we respect the world. basketball around the world is
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unbelievable. and to have those guys with medals around their necks and your national anthem being played, there is nothing better than that. david: initially, you were an assistant coach to the 1992 so-called dream team. mike: dream team, yeah. david: for those who do not follow basketball, college basketball players were the ones who played in the olympics before because of the rules of the olympics. 1992 was the first time professionals played, and those who played were michael jordan, magic johnson, larry bird among others. what was it like to coach that team? mike: it was literally a dream. and it really set off an explosion worldwide for basketball. international pro players played anyway, and now the players when they were seven-year olds or eight year olds are watching, and it exploded. to be with them would be like if you are in music and have the best singers all on one team, the best musicians, and true professionals.
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david: so when you coached that team 11 years ago, you won the olympic gold. what was it like saying to professional players, let me tell you how to do something? mike: well, you say this is how i want you to do something a little bit differently than you do to college players. one is that they are professionals. the other thing is they have a wealth of experience. so when i am coaching college kids, they are going to adapt to me. i am teaching them to change their limits to get better as a unit and individually. when i am with lebron james and kobe bryant and chris paul and all these guys, they are already accomplished. i want to know their best practices, and then my best practices, and what we do, it becomes our best practices. so, we do a lot of adapting so that -- i think, david, a keyword is to create ownership, you know, where everybody owns it and where they feel like they are not playing for the u.s. they are the u.s. and in order to get that
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feeling, we incorporated a lot of work with our military, so that they could get a feeling of what it was to serve our country. and no greater part of our society than the military to teach that. david: so the three olympic teams that you have coached, how would you compare them to the dream team? mike: well the dream team in their prime -- there are 11 hall of famers on that team. christian laettner is the only -- he is a college hall of famer. in their prime, there is no team like that. the beijing team was really good and could hold their own, but there is no team with the accomplishment all in their prime that was better than the dream team. david: but did you ever think you could lose the olympics? mike: oh, yeah, yeah. i think we can lose every game. if you don't think you think you are going to lose, i don't think you prepare well enough to win. and in the pros, they don't play one and done. so, in your mind, you can play poorly in a game and get a
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chance. there are no second chances in olympics or world championships. david: so, when you are coaching an olympic team today, would you say it is possible if we only had college players to win the olympics? mike: no, there is no way. there is absolutely no way our college kids could beat the international teams. the international teams are too good. they are, you know, a number of the international teams would be playoff teams in the nba. and, you know, about 25% of the nba is international. no way, because you are playing men. we would get killed. david: if you had to pick among the pro players that you have coached and witnessed, who would you say is the most competitive player you actually have ever coached? mike: wow. well, they are all -- they would not get to where they are -- probably the two biggest assassins were when they look at you, you feel like, ok, i'm going to lose this guy, where
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jordan, i think jordan is the best player ever -- and kobe bryant. their preparation and their ability to just focus is off the charts. but, i mean, you can take lebron james being one of the most talented and smartest. chris paul, durant -- durant has been the leading scorer for the u.s. in the three competitions he has played in. david, one of the things i have admired from all those guys is they understood it wasn't about them. you know, you hear expressions like leave your egos at the door, and i always told them don't leave your egos at the door, because i want you to be lebron and kobe, so when you but when you bring them in, can we play for one ego? can we play for the u.s.? and thank god they did. david: so as you have been coaching over the years what
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would you say are the most important lessons of leadership you have learned? mike: the very first thing is that in order to get better you have to change limits. and when you change limits, you are going to look bad and fail. at west point, i'd learned failure was never a destination. in other words, when you're knocked back, you know, figure out why and change. the other thing is that you are not going to get there alone. you know, be on a team. surround yourself with good people, and learn how to listen. you are not going to learn with you just talking. and when you do talk, converse. don't make excuses, you know? figure out the solution, and you don't have to figure it out yourself. and to me, that is what we have tried to build our program on for the 42 years now that i've been a coach. david: now what you have done in the community is you have started a program named after your mother, emily krzyzewski center.
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mike: right. david: what does that do? mike: it is 10 years old now and it really services about 1500 kids a month, and every one of the kids who has gone to the program has gone to college. it has been fantastic. and i am really proud. i was first-generation, you know, college for my family. david: so was i. mike: yes. and, and also to honor my mom, to let all those kids know that the love of parents and stuff that your parents did to put you in a position maybe to take advantage of some of these opportunities. david: final question, what would you like to have as your legacy or what you see as your legacy for having done what you done in your career to date? mike: you know, i will let other people define that. i just like to work hard every day, and i love what i do, and make every day like it is my first day, but with the experience of 42 years.
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and that i was hungry every day. i gave everybody my best shot, and i always wanted to be a part of a team. and obviously, i wanted to lead that team. you know, what an interesting life it is to be a leader. ♪
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♪ 9:29 a.m. in hong kong. we are counting down to the opening of trade in hong kong, shanghai, shenzhen. it is a beautiful sunny day after all that rain in hong kong i am haidi lun in sydney. they will be joining a mix to session. central bank activities, fed speak, also the opec meeting in vienna. the markets have priced in a nine-month extension for the deal, but take a look at this chart, in terms of the impact of any curb if it is extended into the rest of the year and next year.
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#8760, this is a historical chart that tracks the impact of opec's output cuts in comparison to the impact when it comes to prices. the last cut, you can see just how much more dramatic that cut was when you saw that correlating elevation when it comes to prices. the fact that even if opec comes through with the extension, it is not the shock needed to change the dynamics of the oil markets. it depends on compliance with producers like iran, which historically has not been compliant, and on the other side, u.s. production continuing to potentially undermine efforts of opec. let's get over to hsery. we are seeing in hong
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kong, another day of gains for the hang seng, a fifth session of gains. the index is now at the highest level since july 2015. just now as we started trading, the 14 day relative trend index has surpassed that 70 level. that worth mentioning there is this huge disconnect between what is happening in hong kong and what is happening in shanghai. we are seeing continued efforts by authorities to deleverage the , curb financial risks spirit when it comes to the shanghai composite, a day of declines, some sectors like telecom, real estate turned slightly positive after a few minutes of trading, but it completely opened in the red. energy even falling .4% despite wti and brent continue to gain
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in the asian session. so the shanghai composite losing ground slightly after it was left unchanged in the last session, although the hang seng index did manage to turn positive, not so for the shanghai composite. i look at some of the stocks you need to keep an eye on in trading in china. , we are going to see the full year earnings around noon hong kong time. they are of .4% in hong kong ahead of those earnings. analystsaring from our that lenovo is continuing to see challenges, implementing strategic changes, but and improving pc segment is facing rising component costs him as a five buys, 14 holds. a contract,y signed up .9%.
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citic was fine for violations ,utside work 308 million yuan so those are some of the stocks you need to keep your eye on his trading gets underway in china mainland and hong kong. haidi: thanks for that. let's get first word news with stephen engle in hong kong. steve: the bank of korea has kept rates on hold at its first meeting since moon jae-in president took office. the benchmark remains at a record low of 1.2 5%, and was predicting no change for at least the rest of the year. showingeconomy has been signs of improvement with exports and consumer sentiment rebounding. the latest fed minutes indicate a rate hike in june with reserve officials judging the time to tighten policy would be soon. the minutes show most participants favor a hike if
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economic indicators remain in line with expectations. three increases, including march, our forecast this year as officials look to shrink the fed balance sheet. handed as could be competitive boost in leveraged finance over there european rivals, which are facing a crackdown on lending to highly indebted companies. it published a new blueprint of guidelines, the ecb, at a time when the trump administration wants to ease restrictions on wall street. the new ecb standards are enforceable no matter where the jurisdiction. the philippine president says he may place the whole country under martial law if the violence currently raging in the south spreads to the main island. trip to after cutting a russia short, he said if so-called islamic state is expanding his influence, he might make the nationwide order. the imposition of martial law is expected to last 60 days. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries.
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this is bloomberg. i am stephen engle. thank you for that. says china faces what it calls a day of reckoning because of its credit problems. betting against chinese companies listed in hong kong, saying they will be crushed by debt. let's get it over to tom mackenzie who is watching all of this in shanghai for us. carson block not pulling punches, but he's not giving any timing as to end this day of reckoning will come. in fact, his timeframe is two weeks, two months, 20 years. this is carson block saying sins will catch up with it, the liquidity, money pumped into the system after 2008, and that that will eventually come to a head. he said as you point out that he
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is convinced that this crisis will happen, but he has not set a timeframe for it. take a listen. >> i think ultimately there will be a day of reckoning. i know that. i just can't tell you if it is two months, two years, or 20. >> you don't have a view on the timing? >> correct. >> you do feel certain about the outcome? >> they have been destroying value and capital for so many years through their fixed asset investments. talking to block erik schatzker from bloomberg, saying what the authorities have been doing is pumping liquidity into the banking system that has a lead others to take their money out, and that has left the system vulnerable. we have a terminal chart that shows what has been going on and 431.s this context, # it shows the rising debt pile as a gdp slows.
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you have this crocodile-mouth shaped chart, and the question going forward, because many analyst expects second-half growth gdp to grow, whether the deleveraging campaign will start to see that credit file start to ease off, but that chart really quits this into context, and it is worth listening to muddy waters. they have put out reports before, and those reports have impacted the stocks of companies quite significantly, and this follows on from moody's sovereign credit downgrade. to be fair, it is a well documented set of concerns over china's that and the drag on growth and when all this comes to ahead. you mention the moody's downgrade came as a surprise. the consensus was the impact in terms of macro conditions and sovereigns would be limited given how contained the chinese economy is, but what about the impact on chinese corporations? on the markett
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has been relatively muted. 92% of the debt that is issued by chinese corporates is renminbi denominated. this year, we have seen a record amount of dollars debt being issued by chinese firms, and that is because the yields have been taking up relative to the cost of debt offshore. we have another terminal that shows this diversions between the yields on shore, the cost of debt on shore, versus that offshore, and it is that divergence which has encouraged any corporates to move in issue dollar denominated debt denominated debt come up a and real estate sectors. the real estate sector has $158 billion in outstanding u.s. , and itenominated debt is the airline says well, and shipping companies. when the yields take up, they
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are the most boehner ball because they have two borrowed to buy ships and airplanes, and any increase in borrowing costs will impact margins as well, but overall the picture is 92% that is still denominated in renminbi , but this dollar denominated debt has been taking up because of the diversions and deleveraging campaign in the high-yield. you so much for that. tom mackenzie coming to us from shanghai. singapore's gdp fell in the first quarter, however, that contraction was less bad than had been forecast. let's get over to our southeast asia economics editor for more. we do know that singapore is a must a canary in the goldmine -- coal mineecause -- because of how burnable it is to headwinds. morning.good
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that is exactly it. with the gdp numbers showed today is we are starting to see that recovery in export demand, particularly the pickup in demand from china and the global growth picture becoming more rosy. we are starting to see that benefit singapore, the manufacturing industry did cra k contract on a quarter to quarter basis, but less severe than the government estimated last month. also, interestingly enough, the government came out with their ,wn predictions for this year keeping the headline projections the same, 1% to 3%, but said the gdp will actually come in for topfull year close to the end of their target, so above 2%, which is good news for an open economy like singapore. haidi: i guess it has you have trade recessions starting
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to reseed, that is boosting these trade reliant economies like singapore, but what about other sectors like financials, insurance? they are a pretty big part of singapore as a financial hub, contracting, part of a distortion or a broader trend? >> 17 percent contraction in a quarterservices is on quarter basis. a year on year basis, the sector is performing. it is not shooting the lights out or anything, but it is a lot more stable been we saw last year, so i think that the outlook is certainly improving in those sectors. where the worry is, we are theng an improvement in
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trade related, external focus to sectors, if you will, but your domestic focus sectors, things , areretail, construction still expected to underperform this year, so retail is affected because you have, you are still seeing rising unemployment in this economy. you are seeing labor market conditions that are pretty tight still, and in the construction sector, we have a property market that is underperforming. we are not going to see huge growth there yet, so we do have this dichotomy occurring where you have external focus sectors performing pretty well, manufacturing picking up strongly come and that is having an impact on other related industries from richard domestic focus sectors are still going to underperform. thank you for wrapping fed up for us. singapore gdp suggesting a
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little pressure on that trade reliant economy. coming up, we speak to the ceo of one of the world's leading rubber producers next. this is bloomberg. ♪
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haidi: this is "bloomberg markets: asia." i'm haidi lun in sydney. a quick check of the business flash headlines. deutsche bank said to be near in to hown inquiry billions of dollars was moved to the bank out of russia. the bank said the deal should be announced soon. the latest investigation centers around how clients moved to $10 billion out of russia from 2011-2015. b.n.p. paribas fined 300 $50
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million by new york's bank regulator for its involvement in a forex manipulation scandal that hasn't stared -- that hasn't snared a dozen big banks. regulator said the bank paid little or no attention to the supervision of its fx trading business. wall street to main split between those who see tesla as the next apple-like success or see it as a defunct one-time carmaker studebaker. analyst say the stock is out of line with reality. it search 22% over the past year and trades well above the price by analysts surveyed by bloomberg. all right, let's get back to commodities. rubber prices have snapped back
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with demand out of china, the biggest buyer globally continuing to expand come up the industry is facing supply issues and new investment is liking behind expected growth. one of the world's leading rubber producers, the ceo joins me now from sunny singapore. great to have you. you have completed i believe an acquisition deal. what comes after this? what are your sales growth and target volumes for this year now that that is out of the way? >> thank you for having me. yes, that's right. we have just come out of a three-way merger where we took over sinochem's national rubber franchise. it involved singapore listed company they had a controlling interest in that we were successful in delisting last year, as well as taking over there china and malaysian assets , that together with the legacy weiness has now created what
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consider to be the world's leading franchise for natural rubber. what is next? that is a question that keeps me up at night. really to maintain momentum. wer the last seven years, have initiated and massive wave of consolidation in the industry. doubled ourave business four times over the last four and a half years, and the challenges to do that again in the year and a half, or two years, and that would get us to a market share globally of 20%, which is important as far as consolidation targets go in order to determine the way the rubber price is determined on a daily basis and combat volatility. haidi: is that what you see as the right sized business? the right sized business for an industry as relevant as natural rubber is the size that allows market participants to have fair remuneration on their activity.
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rubber started life as a commodity, as vehicle and health and safety standards have moved up and consumer interest groups have formed, it is no longer price or lowest acceptable quality. it is a question of sustainability and health and safety. as the rubber industry progresses into a true industrial raw material, which key key ingredient, consumer goods, such as mobility, health, and safety, we have to recognize the value chain needs to be adequately remunerated, and that means investment needs to be stimulated to come it returns need to be such that people participate. , at the current volatility least of of last year or so, it has decoupled from fundamentals and this volatility keeps investment out, and that creates problems for the industry, so how far we have to consolidate is somebody has to change the game in the sense that we find a
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new way to price the product so we can build something out of this industry that goes beyond speculation. speculation,ily that retail element of the chinese markets, it is what it is, right? it is a very peculiar quality when it comes to what goes on in china. how do you deal with that volatility in terms of how do you gauge investment and being able to make that somehow predictable? , what we look at this we try to see what the real cost of rubber is. the real cost is determined by various components. you can see the agricultural costs, industrial costs of processing, and finally the distribution costs, financing, and so on. so we come to a fundamental determined price that does not need to fluctuate 3% from 4%, 5%
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daily as it does at the moment in shanghai. we also don't need to trade 30 million tons, almost three times the annual crop, in the last four-five trading days so there seems to be a distortion and the divergence of trends with afford markets are becoming ever more speculative, which i have no problem with. the issue i have is that the price determined on these ford markets should not be used to price the fundamental physical goods we supply to our customers for whom this is a resource that can be substituted. you looking so if at real prices and real demand, there is a concern that undersupply will be the theme going forward. given that you are expanding so aggressively, what are your plans to address the supply-side issues in terms of volume targets, sales targets? did 286,000 tons of rubber
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in q1, the first quarter operating as an integrated enterprise, plus the merger we just spoke about. if you extrapolate from that, you get a full year run rate. in terms of investing in the future, we invest across the value chain. it is the only rubber company that operates across all origins, all destinations, at least in terms of africa and up witht asia come upstream and midstream assets, so we are investing across the value chain, planting trees in africa, planting trees in malaysia, investing in technology in our factories. we have 33 factories around the world and have developed a anddard which is in a way ability coupled with industrial productivity. haidi: i will have to cut you off. we have to go to break. great to have that conversation with you. nvidia captures the
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of of softbank to the tune $4 billion. that story is next. this is bloomberg. ♪
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haidi: bloomberg has learned that softbank has quietly built up a $4 billion stake in the video. what do we know about this deal? >> that's right. the announcement came this weekend. while a lot of that had been reported before, we know the same group of investors that apple,s saudi, qualcomm, softbank slipped in a bit of news. we know a group of early investments includes masayoshi son existing stakes in arm, sof i, but one bit that was new is
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the holdings in nvidia, something softbank has not released before. my colleague in san francisco is reporting that the stake is 4.9%, which would make softbank the fourth largest shareholder, worth about $4 billion right now. year,ares are up 30% this more than tripled in 2016, so the question is when did masayoshi son by this day, and possibly it has party been a very good investment for him in the company. ofdi: tell me the strategy the vision fund investing in a graphics chip company? onright, nvidia focuses graphic processing units, which until now had been used for gaming, but can also have massive applications in artificial intelligence and self driving cars in the which fits squarely with the vision fund's
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vision of the future. haidi: thank you for that. the budget's plans, coming through, and the latest from asian markets starting to soar now. this is bloomberg. ♪
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announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with terrorism overseas. a deadly suicide bombing at manchester arena monday night left 22 dead and more than 50 injured. in the deadliest terrorist attack in britain since 2005, when explosives on london's transit system killed 52. isis has claimed responsibility for the attack, which took place at an ariana grande concert. police identified the bomber as 22-year-old salman abedi, a british citizen. president trump condemned the

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