tv Bloomberg Best Bloomberg September 22, 2017 8:00pm-9:00pm EDT
>> coming up on bloomberg s, conversations from the bloomberg global business forum. >> you can't change the world if you are ignoring the world. >> insights on the world's most pressing problems. >> china is learning a lot of things. making progress. >> at some point i will be right. we will have a recession. >> you're going to see this market take a big hit.
>> challenges facing all of society. , 50% of household wealth is managed by women. resolve., reflection, .> we need to cooperate >> how are we going to get consensus on that is tricky. >> it is all ahead on bloomberg asked. hello. welcome to a special edition of bloomberg past featuring highlights from the 2017 bloomberg global business forum. they will address the most pressing economic issues facing the world today and begin the work of solving challenges and charting a path forward.
our review starts on stage with the ceo of the most valuable company, apple. them for ained conversation about business and civic leadership. >> all companies should have values. as a ceo one of your primary responsibilities is to decide what the values of your company his, and lead accordingly. i think the thing that president originallyd to say, from the bible, to whom much is given much is expected. apple had success. a responsibility to give back, to help in some of society's greatest problems.
for us, we tried to look deeply is government working on, are key in society. we think about the skills we have. are not going to be able to help realistically that there are some we can amplify doernment efforts or we can ourselves. thee has always been at core of changing the world. you can't change the world if you are ignoring the world. that is the way we look at it. not only today but in the past as well, i think silence is the ultimate consent. if you see something going on
that is not right, the most powerful form of consent is to say nothing. i think that is not acceptable to your company, to the team that worked so hard for your company. for your customers or your country. for each country that you happen to be operating in. that is the way i see it. i am more optimistic today than i have ever been. i mean that sincerely despite sometimes not feeling like that. havell i think we incredible opportunity. never before have i seen the world toall across the work together on these common issues. >> companies are a collection of people. have a responsibility to do something for the world.
our employees care what the company values are when i support a cause or don't. i hear from our customers. i hear it from my family. we don't live in a vacuum. he has his values, and doesn't sit around and say profit is the only thing. for business,good if you do the right thing it will help the bottom line. the first thing is to do the right thing because you have to look in the mirror, the last thing you see before you go to bed is yourself. you have got to be proud of that. >> the global business forum brought together heads of state. remarks from bill clinton opened the event. clinton: the most important thing, economic
performance, and political power , flow from division or multiplication. from subtraction or edition. you are all here because you know this. fromests and viewers heard political leaders around the world beginning with emmanuel macron. >> i am a strong believer in europe. a lot of people told me, you are crazy. think you can win in france? i did believe it was feasible. people do understand we need europe in this current environment. we have european values. now the challenge is how year can be with the united states
and china. it is a lack of projec ambition. we had a pessimistic approach trying to fix crises at the last minute without any prospects. scale to the relevant deal with energy. a european cinema -- single energy market. we have french leaders and european leaders, and europe has to be stronger. investment economy. what does it mean? we have to have 10 year
objectives for europe. reach the subjective. this because for more a generation there is just one alternative. do we want the dismantling of europe? which is an ongoing process. tensionsve a lot of regarding overflow in europe. in a few months or years you will have older countries there is justying a lot of constraints. 10 yearmore vision, objectives. and a national process. i will refer to that next week.
need new missions. that is the best way to address the brexit issue. editor-in-chief with president erdogan of turkey will have that interview later in the program. lively panels with financial leaders including lloyd blankfein, and bill gates. next, conversations with investors on the markets and more. >> maybe what the president does is not as important to the markets as many once thought. >> this is bloomberg.
business forum, many of wall street's most respected investors took part in shared insights with my busy colleague erik schatzker. >> what are you seeing in the economy? >> the economy is in reasonably good shape. a recession is due at some point. point, i will be right and we will have a recession. right now the economy is doing pretty well, growing at two and a half percent. i would say i don't see any signs of a slowdown. aboute people are talking synchronize global growth. >> there is more synchronization than before. don't see any recession anywhere in the world.
>> does that surprise you? >> it does. right now, things are in good shape. the deepest recession has been in brazil. >> you have described a private equity paradox. returns,es, declining accelerating inflows. paradoxes can't continue indefinitely, or can they? >> sometimes they can for longer than people think. invate equity is attracting amounts of money. private equity has outperformed every other asset class and that is likely to continue. we can't continue to get these attractive rates of return. >> have you ever seen this level of interest?
>> i have not ever seen it at this level of interest. everything will probably slow down at some point. if something can't keep going on forever it eventually won't. right now the interest is high. >> people get elected promising to preserve your social security benefits, but nothing happens. people have been talking about this problem for many years. nothing happens. not only do decisions not get made, you don't even hear any discussion. >> one step american states might consider is following with the canadians and australians have said. create professional investors. do you think that would fix the problem? >> i think it would contribute.
be one decisions would of the important ingredients in a solution. thatieve it is fair to say -- one thing you left out, when they hire staff for these investment organizations they pay them salaries that are competitive in the business world. in our political system that cannot be done today. want to reason people not be people who work for the government making a lot of money. to say how can those jobs attract people smart enough to solve problems we have? i wrote a memo called economic reality and i think there is an
example. if you pay people more you would whichme better decisions would contribute to the solution. >> i do believe candidate trump and i, president trump interacts with his constituents in a way using twitter that should add volatility to the marketplace. the only conclusion i can come up with is maybe, what the president does is not as critically important to the markets as many of us once thought. arounduch of the noise certain aspects of the presidency aren't as relevant to the marketplace as many of us once thought. does that realization surprise you? >> it does. prognosticator i
think i wouldn't get high marks. i thought volatility would be higher. we have been wrong on both. the good news about being wrong is that it forces you and us at our firm to buy higher-quality assets and better companies that can withstand higher levels of volatility. in a strange way we have been wrong and it has helped our investment focus. >> would you not say it is hard to find anything under price today? >> absolutely. look at our stockmarket. most people tell you it is overpriced. yet it still keeps going up. everybody believes you're going to have huge billion coming in from offshore. that's going to bring more jobs.
and you will get tax reform done. if none of that happens you're going to see this market take a big hit. >> we have to wait how long to find that out? >> six months. donehas got to get otherwise the market is going to start saying we don't think any of this is going to get done. >> brazil is a place you have gone shopping. i presume you have a short position on south korean cds. >> we don't view -- we think that right now is not fairly priced. >> what else is not fairly priced? valuations have gone up in developed markets. we talked about that. where else does it pay to do the work?
>> you could still be in europe. you could make 10-15%. in asia today because of the slowdown in china and what is happening out there you can do direct lending deals in asia for high teens to 20 percent. >> given the state of the world and where you think it might be headed, where do you see best opportunities? >> our business is raising large sums of money. having operating people in many countries of the world. availabletal is not and we have put a lot of money in south america, specifically brazil. we move our capital and we never know where it is going to be.
it is going to be one of the countries where we can make opportunities into reality. we will move it where it is most important. >> does that mean you are deploying capital at a slower pace than you might otherwise? >> everywhere, all the time somewhere there is an opportunity to put money to work. we are cautious in the united states, and have been for a wild. we have $20 billion at work in other parts of the world. it is a big market. there is lots of add-on opportunities but we bought general growth in 2009. >> where else do you feel it is time to sell were might be soon time? >> developed markets where there's lots of money, leverage
transition and the future of energy in the middle east. considering saudi arabia as a focus. what are the metrics you want to see? , foralistically today financial institutions, it is skill, a net exporter of capital. it is becoming clear to was. influential in that country and had those concerns i want to make sure the people doing this for us were doing things for us that would and bringob creation new industry and diversified the economy. , there are two major
changes,using structuring of the energy market . that is pricing. and the supply side. that, a compulsion of the demographic situation. invested,t has been and i think the region needs the commitment and the help in getting investment done and creating jobs in the region. >> what are your priorities? itwe say this guy made happen, how different this saudi arabia look? it is really different than before. 2030, it is a good start.
now we have targets. targets for the middle, medium-term and the long-term. we have the national transportation plan. the vision 2030. innovation. we have 543 different initiatives with 376 key performance indicators. it is not only about the vision which is very complicated, but also the execution of these initiatives. we have everybody in the government from different ministries, looking at their own initiatives. the council for economic development, shared by the crown prince.
they meet on a weekly basis looking at these initiatives and the key performance indicators. , publicck to the pif investment fund, managed by me , we haverown prince another seven ministers. lot of these initiatives. they will be part of the pif program. >> much more still ahead from the bloomberg business forum. ceo share thoughts on the future of business. bill gates and others have plenty more to say about technology. community, they
♪ welcome back to bloomberg best, i'm shery ahn. we are looking back at the 2017 bloomberg mobile business forum on september 20 and new york. a conference dedicated to solving economic challenges and charting new paths forward. let us hear from some of the top is as leaders who spoke at the event, starting with the alibaba founder and executive chairman, jack ma. shiftingk the world is from big companies to small companies. small companies make extra partnerships and i am passionate about entrepreneurship's.
i am passionate about small business, i think it is the solution for this country, creating jobs, innovation. are not creative in a small business and innovative, you do not have a chance. that is my passion and i believe that it is also the future of this country. >> you heard president trump speak at the u.n.. what is your relationship like? >> he is a very unique president. we had a very good discussion the first time that should the last time, talking about china-u.s. trade. i think the china-u.s. in thisship is critical country, especially on the business side. i think they are making progress on that. next really? -- >> really? the president blocked the takeover of a u.s. chip company by a private equity firm from china, what do you make of that? >> that happens.
then,nd there, now and this is a way i think that if you see optimistically or positively, they are countries that should understand each other better. years, the next two orther it will be a disaster relying on the wisdom of leaders. >> when it comes to your business in china, the president has been taking more steps to put restrictions on the internet. this is your business. what do you make of that? >> really? >> yes, he has been shutting down vpns, that is one example of late. >> we probably see a different view of that. this is the way that i see business. in the past 18 years, this is our 18th anniversary, in the questionsars i got
about internet censorship all the time. internet guyfirst in china, since 1995. americans have been enjoying democracy for 250 years, and china just started in the past 30 years. past 30say in the years, china is learning a lot of things, making progress. things, if there is control here and there, -- what we should do is focus on the 95% of the positive things. when i think -- i think that -- thee government governing or regulation of the internet is a new thing to any government. people like me, i have been talking to thousands or hundreds of government officials every year, because i think it is my responsibility to tell them, do not worry about it, this is the way to do it. i never complain, and i try my
best to educate them. emily: do you think they will ultimately be on the right side of history? the chinese government? >> yes come imf slowly sure. >> nobody can stop this government revolution. >> the ceo needs to beat aware of issues out there and integrate them into corporate strategy. that is what i call earning a seat at the table. it may mean moving to green energy, making sure your materials are well supplied and treating your people fairly. then you work on your value chain, these are easy things to do because these are your suppliers. extend your influence on the value chain, you cannot outsource it. you cannot outsource the value chain and outsource your responsibilities as well, consumers do not accept that anymore. you have toing is work with industry associations on more transformative initiatives. there has beeny,
something on that, now there is a transportation initiative to go to limited combustion engines, initiatives on human rights and the value chain, there are many industry initiatives that are happening right now which you have to attach yourself to. the final point is to be proud of advocacy and helping in the political process. isis very difficult -- it difficult to blame the politicians if you're actually not part of the solution. >> you are one of the spear headers of this. has it gone more quickly than he thought it would? or slower? >> six or seven years ago, it was the nas revolutionary, and we were a little bit geared. ,e had goals and ambitions increasing or social impact, doing that across the total value chain.
unfortunately, and importantly, it turns out that what we were trying to do was not even ambitious enough, with the way that the world is going. we were definitely on trend but it is an ever-changing thing. >> one of the experiments we are very, very interested in an optimistic about is in the city in india where we are supplying the cars, the drivers have signed onto a ridesharing company there and that government has provided a charging station initially. it is working well, and if it continues we will replicate it. that is an example of a government stepping in actively and participating. more than that needing a public-private partnership to work, it can happen. the second thing, and i really do not believe in government --sidies of at all subsidies at all, isn't you need the leader of the country to
give direction. one prime minister narendra modi laid out his vision for solar power and wanted to make india a leader in solar power, he set a ofar goal of 175 gigawatts renewable energy by 2022, 100 gigawatts of each were solar. which look for stability, they look for direction and you do not need that much more if you are just moaning opportunity. in three years, we built the company which is now the second largest builder of solar power plants. we were just saying, tell us which direction to follow, and if you do that, there is money to be made. >> how would you consider the growth of africa, especially nigeria, at the moment? >> i think the growth has been a little slow. everything is in a cycle. we have breached the bottom, and mos bounceback -- we have bounced back. the majority of countries today,
were making more money than last year when we had a recession. we have actually bounced back, because we have good fundamentals. we believe in what we are doing, when we rolled out two years ago about fertilizer, wen continued with the devaluation. >> are you looking at acquisitions at the moment? >> we are looking at acquisitions and i am sure we we willou are sure that be taken to the pretoria cement company in south africa. i hope we will be able to agree with them, because of africa really needs consolidation. i think it is the right thing for us to go in there and consolidate. it is not really a rumor.
host: there are other bidders, right? >> we will be very sensible as to what we're going to be doing. being that there are other bidders, it does not mean that high, just going to bid we are not going to bid in a crazy minor, we will do it sensibly where it makes sense cor both the shareholders of pc and also our company's shareholders. we will not do something that affects our own valuation, so we have to be very careful. ♪
conference was to foster partnership between leaders in politics and business. a panel on expanding trade moderated by the imf's christine lagarde was a perfect example of that mission to find common ground. that featured a prayer of prime ministers and the heads of two of the world's largest investment firms. >> the business community is basically looking for a label playing field. that is what we want. -- a level playing field. we do not want to be disadvantaged in certain countries for historical reasons and some countries have barriers where you have a superior product and you cannot sell it there. that is the kind of thing that recently has to be de-bo ttlenecked. the best player is supposed to win but one team is not supposed to bat for nine innings and another one for three. it is hard to win when you can only do it one third of the time. ministers,closure, i
-- prime ministers, when you receive visits from the likes of steve and larry who do not charge anything for their advice and access to information, do you take that with a pinch of salt? or do you take it for granted that they are right? [laughter] >> government is about partnerships. citizens, interest groups, business community, you hear a range of perspectives and there is no question that when steve says, we are just looking for a level playing field, they are looking for an advantage but they will take a level playing field. [laughter] they'reisten to what doing, but you also -- i have had great meetings with steve, for example, who came up to talk to the canadian cabinet two days after the inauguration of this new administration, to give us a sense of where their priorities are going to be. we have been working with
larry for about two years about drawing in global investment into canada and what kind of framework we could give to encourage people to notice canada as a great place to invest. and have been great thoughtful, but you always know int there is interest there growing the economy for them,. we are interested in growing the economy for everyone there is larger overlaps. you don't have to be cynical about it but you have to be conscious of the pockets you're talking to. >> yes, i agree that we should not be naive about this. toy are companies, they want make a profit, but at the same time, they have a wealth of knowledge about what is happening all over the world. position thathe the big issues that the planet is facing in terms of climate change, in terms of fighting
instability, we need to cooperate between ngos, governments and the big corporations. here in like shell, the united states also, companies should play a positive to get theseg companies and ngos to change the course of the events happening. we cannot do it on our own. the u.n. is realizing more and more, which i like, that the united nations as a organization needs to cooperate more with businesses and is doing that. this is a change which i find extremely positive. investors, andve they are looking to you to help them navigate all of these forces, trade, economic integration, financial flows, technological changes. how do you think that large financial firms like yours driving shaping trade, shaping
economic integration, how do you participate in the process to the benefit of the company, but also to them? >> let me say how we're navigating this whole rise to protectionism. , obviously, one, more than ever before we have to mirror our client. one of the main reasons that we need to have at least gender equality, but the realities in the world, 50% of household wealth is managed by women. if i am going to be a mirror of will need more women at our firm, which is what we are doing. more importantly, if i am going to be that financial manager in the netherlands or canada, we have to be dutch and we have to be canadian. we cannot be an american firm trying to put american values into those different places. that is probably our biggest
transformation, that is how in my mind that companies navigate above the problems of protectionism. >> one thing that governments change the game that larry was talking about. often, it is governments that insist on certain mixes of not beingich end up in the best interest of the people. who are supposed to been a beneficiaries, and the governments that ultimately get left with the bill. make no mistake, it is going to end up underwriting the underperformance, it is the government. they cannot default on their people. so, this is a big problem. allowlly, the governments what we would think from experience, odd outcomes, and governments have to encourage certain types of asset
allocation mixes. or they will be stuck with the same under performances. it is a ginger for the solvency of the government long-term -- it is eight danger for the solvency -- it is a danger for the solvency of the government, long-term. downrkey's president sat with our bloomberg editor in chief. >> for 54 years, they have made turkey wait at the gate of the european union. -- can he sayung whether there are those who came later, what is being done to turkey is actually a political embargo. this disrespect to turkey's character and personality. it is an approach that is contrary to the eu theme. no country has been shown this approach. they are lying to us. they do not speak the truth with
us, they tell us a line. talking aboutked a little earlier on the subject of refugees, it 2016 -- in 2016, they said they would give us 3 billion euros, they did not. going to give it through organizations that they decide on themselves. they said at the end of the year, we will give another 3 billion euros, and of the figure that has, as of now, is 820 million eurosp where is the honesty? there is none. look, it is really interesting. in charge ofame france, merkel became in charge of germany, and before they took the reins, i used to join the leaders summit. at the time it was chirac in france. ,n germany, it was schroeder and the three of us had many meetings which were basically preparing us.
came, andarkozy merkel came and of a from countries in negotiation from these meetings. they stopped them. chapters were being opened and closed at that time. ok, so what happened with all this? they stopped opening and closing. there are just opening, no closing. so how many chapters? there were 15, then they made it already five. so who was this against? these were measures only taken against turkey. kuncker explain that to me. i know juncker well. >> why not give up? it strikes me, there are many
business people in this audience. when somebody else talks about pulling up the drawbridge and you are in the castle, that does not normally imply a great deal of partnership. why doesn't turkey seek a future outside the european union? given all of this perfidy which you have described? >> this is a good question. i say that those who are in the position to make this. conditions are them. let them close the door to us. we will make our decision easily. we are not that interested, let me say that. what they want is for turkey to run away from them. no. we will never run away from it. let it be them to run away from it. let them make them -- let them make that decision. ♪
many of the possibilities created by new technologies. rubenstein: he was killed by a mosquito which is one of 1000 mosquitoes, a special one. the main thing is that it is precedent setting. if you think humans can go and get this species, what is your criteria for anything that might be a nuisance and may be key to an ecosystem? all mosquitoes b -- there are someats that -- there are some bats that feed on them. there are such a small percentage of mosquitoes, and there are no other species that is dependent on them. this new genetic approach called e is drive, -- gene driv still not proven, but it has a good chance of being able to knock down populations by about
99%, over a five-year. . for the toughest parts of the world such as nigeria in the center, where malaria is really a huge problem, we probably need that to all. -- that tool. worry,ricky, some people i suppose people are worried about mosquitoes -- most people worry about the president of how such divisions -- decisions are made. you hear aboutn technology innovators, they often are men. sexist thing? men do not tend to let women get the opportunity, or is it some other reason, and you think it will change anytime soon? >> i am not an expert on women in technology. i was at an m.i.t. event on saturday, and the president of m.i.t. was telling me that 50%
of the engineering graduates from m.i.t. are women. companies,go to most 50% of the engineering staff are not women. if you read some of the stories in the press about what happened in the silicon valley for example, 50% of the people are getting the funding and they are not women. causingy, something is the leakage between m.i.t., which is a premier institution and the practice. so i think, if we want to utilize all of these resources we are spending money on, we need to do something different. question, isinal it a good thing for humans, are robots going to take over humanity? of aihink that misuse could be horrible. but there are thousands of good reasons to utilize artificial intelligence for good, for humanity.
it solves the unsolvable theases, it solves disasters, and many other things. i think it is really good. ♪ you can find even more interviews, presentations and panel discussions from the inaugural bloomberg global bloomberg.com at and is always all of the latest news and analysis 24 hours a day. that will be all for "bloomberg best" this week, thank you for watching. this is bloomberg. i am shery ahn. ♪ what did we do before phones?
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