1 00:00:00,080 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,600 --> 00:00:15,440 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,440 --> 00:00:18,400 Speaker 2: with Lisa Bromwitz and am Marie Hordern join us each 4 00:00:18,480 --> 00:00:21,360 Speaker 2: day for insight from the best in markets, economics, and 5 00:00:21,400 --> 00:00:24,720 Speaker 2: geopolitics from our global headquarters in New York City. We 6 00:00:24,760 --> 00:00:27,400 Speaker 2: are live on Bloomberg Television weekday mornings from six to 7 00:00:27,480 --> 00:00:31,000 Speaker 2: nine am Eastern. Subscribe to the podcast on Apple, Spotify 8 00:00:31,200 --> 00:00:33,479 Speaker 2: or anywhere else you listen, and as always on the 9 00:00:33,479 --> 00:00:35,840 Speaker 2: Bloomberg Terminal and the Bloomberg Business app. 10 00:00:36,479 --> 00:00:39,440 Speaker 3: Surely that is the discussion here, how to understand what 11 00:00:39,640 --> 00:00:43,360 Speaker 3: national security is, how to correctly regulate technology at a 12 00:00:43,360 --> 00:00:46,199 Speaker 3: time where people are talking about the potential influence of 13 00:00:46,320 --> 00:00:49,320 Speaker 3: artificial intelligence. We turn out to someone who is brave 14 00:00:49,440 --> 00:00:52,640 Speaker 3: enough to make the commute directly from the inauguration festivities 15 00:00:52,640 --> 00:00:56,279 Speaker 3: in Washington, DC to the alpine vistas of Davos, Switzerland, 16 00:00:56,400 --> 00:01:01,200 Speaker 3: Arkansas Governor Sarah Huckabee Sanders joining us now here in Davos. 17 00:01:01,280 --> 00:01:03,160 Speaker 4: I am wondering, Governor. 18 00:01:02,840 --> 00:01:04,640 Speaker 3: Sanders, given the fact that a lot of people didn't 19 00:01:04,680 --> 00:01:07,959 Speaker 3: decide to make that journey, are acting like an ambassador 20 00:01:08,040 --> 00:01:09,040 Speaker 3: fielding a lot of questions. 21 00:01:09,120 --> 00:01:10,640 Speaker 4: What are some of the questions people have for you? 22 00:01:11,400 --> 00:01:17,319 Speaker 5: Certainly don't need an ambassador. President Trump will address the 23 00:01:17,360 --> 00:01:19,800 Speaker 5: group here today, although he can't be here in person, 24 00:01:20,319 --> 00:01:23,680 Speaker 5: certainly dominating almost every conversation. 25 00:01:23,160 --> 00:01:26,280 Speaker 6: But not just here across the globe. I think there 26 00:01:26,360 --> 00:01:26,679 Speaker 6: is so. 27 00:01:26,720 --> 00:01:31,080 Speaker 5: Much excitement, so much optimism about him coming back into 28 00:01:31,120 --> 00:01:31,880 Speaker 5: the White House. 29 00:01:32,280 --> 00:01:35,800 Speaker 6: People across the world are excited to see what he's 30 00:01:35,840 --> 00:01:36,160 Speaker 6: going to do. 31 00:01:36,200 --> 00:01:38,720 Speaker 5: And he's hit the ground running and gotten a lot 32 00:01:38,800 --> 00:01:41,120 Speaker 5: done in a short amount of time. This is somebody 33 00:01:41,160 --> 00:01:44,680 Speaker 5: who now is coming in as a seasoned veteran. He 34 00:01:44,760 --> 00:01:48,280 Speaker 5: has been there before, and there's no learning curve. He 35 00:01:48,520 --> 00:01:51,120 Speaker 5: is getting a lot of things done and in short order, 36 00:01:51,160 --> 00:01:52,920 Speaker 5: and the people are excited to see what's happening. 37 00:01:52,920 --> 00:01:55,600 Speaker 3: Henry was just talking about some of the discussions around 38 00:01:55,600 --> 00:01:58,880 Speaker 3: TikTok last night on Fox News and this question around 39 00:01:59,200 --> 00:02:03,320 Speaker 3: what is Nash security. How do you adequately regulate big 40 00:02:03,360 --> 00:02:06,680 Speaker 3: tech when you have also this focus on celebrating the 41 00:02:06,720 --> 00:02:09,000 Speaker 3: national champions of US tech companies. 42 00:02:09,040 --> 00:02:11,120 Speaker 4: You're here to talk about tech, how. 43 00:02:10,960 --> 00:02:13,400 Speaker 5: Do you reconcile that you know, one of the things 44 00:02:13,400 --> 00:02:15,520 Speaker 5: that we're looking at, and certainly one of the places 45 00:02:15,560 --> 00:02:19,960 Speaker 5: that we're leading in Arkansas and as governor is you 46 00:02:20,000 --> 00:02:24,520 Speaker 5: can protect national security, you can look at continuing to 47 00:02:24,639 --> 00:02:27,239 Speaker 5: grow some of the technology and innovation. But one of 48 00:02:27,280 --> 00:02:28,840 Speaker 5: the places I think that we have to do a 49 00:02:28,840 --> 00:02:30,920 Speaker 5: better job is on our young people. We've seen a 50 00:02:31,000 --> 00:02:35,600 Speaker 5: mental health crisis take place and nobody is immune from it. 51 00:02:35,639 --> 00:02:37,160 Speaker 5: And so one of the things that we can do 52 00:02:37,280 --> 00:02:42,400 Speaker 5: is a better job protecting the young people from constant 53 00:02:42,560 --> 00:02:47,919 Speaker 5: access and infiltration of NonStop device in their hand. They 54 00:02:47,960 --> 00:02:51,119 Speaker 5: still need to get outside, they still need to pay 55 00:02:51,120 --> 00:02:52,960 Speaker 5: attention in class. That's one of the things we've been 56 00:02:52,960 --> 00:02:54,800 Speaker 5: doing in Arkansas. One of the things that we've talked 57 00:02:54,840 --> 00:02:56,920 Speaker 5: about here, and I think one of the things. 58 00:02:56,760 --> 00:02:59,240 Speaker 6: That I hope to see the United States lead on. 59 00:02:59,480 --> 00:03:02,120 Speaker 3: And someone who sees a lot of children, and I 60 00:03:02,120 --> 00:03:03,680 Speaker 3: think there are a lot of people who would agree 61 00:03:03,720 --> 00:03:04,000 Speaker 3: with you. 62 00:03:04,400 --> 00:03:05,839 Speaker 4: There is this large attention. 63 00:03:05,600 --> 00:03:07,639 Speaker 3: Though, and last night we really saw that in display 64 00:03:07,720 --> 00:03:09,839 Speaker 3: when President Trump was talking about they're just a bunch 65 00:03:09,840 --> 00:03:11,520 Speaker 3: of kids looking at some silly videos. 66 00:03:11,600 --> 00:03:13,480 Speaker 4: Do we really need to care about that so much? 67 00:03:14,120 --> 00:03:16,120 Speaker 4: Do you agree with that premise or is this. 68 00:03:16,040 --> 00:03:18,480 Speaker 3: Something that goes to national security but also. 69 00:03:19,280 --> 00:03:20,519 Speaker 4: The heart of something else. 70 00:03:20,680 --> 00:03:23,520 Speaker 3: About what it means to have appropriate technology. 71 00:03:24,200 --> 00:03:27,560 Speaker 5: Certainly, there can be a great resource in technology. It's 72 00:03:27,600 --> 00:03:29,600 Speaker 5: a tool that a lot of us use to I 73 00:03:29,600 --> 00:03:32,240 Speaker 5: think one of the reasons that Donald Trump became president 74 00:03:32,320 --> 00:03:34,400 Speaker 5: is because he was able to use technology to get 75 00:03:34,400 --> 00:03:39,000 Speaker 5: his own message out and go around the mainstream media 76 00:03:39,000 --> 00:03:40,440 Speaker 5: and talk directly to the people. 77 00:03:40,480 --> 00:03:42,080 Speaker 6: And so I think it can be a great tool. 78 00:03:42,360 --> 00:03:45,560 Speaker 5: However, it can't be something that our kids are spending 79 00:03:45,560 --> 00:03:48,760 Speaker 5: ten hours a day doing, and that's one of. 80 00:03:48,720 --> 00:03:50,400 Speaker 6: The things I think that we have to look at. 81 00:03:50,480 --> 00:03:53,360 Speaker 5: One of the things we're talking about a lot, the pressure, 82 00:03:53,480 --> 00:03:57,040 Speaker 5: the anxiety, the depression, the suicide rates that have skyrocketed 83 00:03:57,400 --> 00:04:01,120 Speaker 5: in large part because a total access and connection to 84 00:04:01,240 --> 00:04:04,680 Speaker 5: social media, and so protecting kids I think has to 85 00:04:04,720 --> 00:04:06,360 Speaker 5: be one of the big topics of conversation. 86 00:04:06,480 --> 00:04:07,800 Speaker 4: Do you think the President Trump agrees? 87 00:04:08,520 --> 00:04:10,400 Speaker 5: You know, that's a conversation I haven't had with them, 88 00:04:10,400 --> 00:04:12,680 Speaker 5: but it's something certainly that I look forward to talking 89 00:04:12,720 --> 00:04:14,800 Speaker 5: about with him as he takes the reins here at 90 00:04:14,800 --> 00:04:15,280 Speaker 5: the White House. 91 00:04:15,320 --> 00:04:17,400 Speaker 3: Do you think there is clarity about what national security 92 00:04:17,480 --> 00:04:18,400 Speaker 3: is and what is it? 93 00:04:19,000 --> 00:04:23,200 Speaker 5: I think there are some big differences in kids versus 94 00:04:23,279 --> 00:04:26,800 Speaker 5: national security, and whether or not they can focus in 95 00:04:26,839 --> 00:04:30,679 Speaker 5: the classroom, and whether or not other countries are taking 96 00:04:30,720 --> 00:04:33,520 Speaker 5: all of our data. Those are very different conversations. This 97 00:04:33,680 --> 00:04:36,560 Speaker 5: is a president who I know cares a lot about 98 00:04:36,600 --> 00:04:40,760 Speaker 5: protecting American interest and is always going to do what 99 00:04:40,839 --> 00:04:44,080 Speaker 5: is necessary to protect our country. You've seen him taking 100 00:04:44,160 --> 00:04:46,479 Speaker 5: action on day one, so I have no doubt, no 101 00:04:46,560 --> 00:04:47,400 Speaker 5: concern over that. 102 00:04:47,640 --> 00:04:49,640 Speaker 6: One of the things I do think that has. 103 00:04:49,480 --> 00:04:51,800 Speaker 5: To be a greater part of the discussion is the 104 00:04:51,839 --> 00:04:53,000 Speaker 5: mental health impact that it. 105 00:04:53,000 --> 00:04:53,960 Speaker 6: Is having on young people. 106 00:04:54,000 --> 00:04:56,000 Speaker 4: You're on two panels. One of them is talking about this. 107 00:04:56,080 --> 00:04:59,320 Speaker 3: The other one is with Kentucky Governor Andy Basheer, who 108 00:04:59,360 --> 00:05:01,320 Speaker 3: is a Democrat, and I believe you guys are staying 109 00:05:01,320 --> 00:05:03,520 Speaker 3: in a similar place and imagining the sharks of. 110 00:05:03,560 --> 00:05:05,080 Speaker 4: Jets walking past each other. 111 00:05:05,320 --> 00:05:08,719 Speaker 3: It's a panel about the role of governors and states 112 00:05:08,880 --> 00:05:11,880 Speaker 3: in a presidential transition and implementing policy. And this comes 113 00:05:11,920 --> 00:05:14,680 Speaker 3: at a time where President Trump has basically said get 114 00:05:14,680 --> 00:05:17,480 Speaker 3: on board or face the consequences. 115 00:05:17,800 --> 00:05:19,560 Speaker 4: Do you think that that is the right way to 116 00:05:19,600 --> 00:05:20,599 Speaker 4: get states on board. 117 00:05:20,839 --> 00:05:22,599 Speaker 6: I have a great partnership. 118 00:05:22,600 --> 00:05:24,680 Speaker 5: I want Arkansas to be one of the leaders of 119 00:05:24,720 --> 00:05:27,039 Speaker 5: a lot of the initiatives of the President is pushing 120 00:05:27,640 --> 00:05:29,600 Speaker 5: we're going to be one of the biggest champions, and 121 00:05:29,640 --> 00:05:33,080 Speaker 5: I want us to be a place of innovation and 122 00:05:33,400 --> 00:05:35,919 Speaker 5: use Arkansas as a pilot for some of the programs 123 00:05:35,920 --> 00:05:38,839 Speaker 5: that we're rolling out. I think on healthcare, there is 124 00:05:38,880 --> 00:05:41,359 Speaker 5: a lot of opportunity to do things in a better 125 00:05:41,400 --> 00:05:43,400 Speaker 5: way than what we've done, and I think this is 126 00:05:43,400 --> 00:05:45,120 Speaker 5: a president that's going to be able to do that. 127 00:05:45,240 --> 00:05:47,680 Speaker 5: A good relationship with the states is a good thing. 128 00:05:48,040 --> 00:05:50,880 Speaker 5: We shouldn't be in constant battle between the federal government 129 00:05:50,920 --> 00:05:52,840 Speaker 5: and our state governments, and I think that's one of 130 00:05:52,880 --> 00:05:55,000 Speaker 5: the things that you'll see both of us talk about 131 00:05:55,279 --> 00:05:58,000 Speaker 5: how we can have good cooperation and get things done 132 00:05:58,000 --> 00:05:59,560 Speaker 5: that benefit the people that we govern. 133 00:06:00,000 --> 00:06:02,400 Speaker 3: It's a good precedent for funding to be withdrawn though 134 00:06:02,400 --> 00:06:03,000 Speaker 3: from states that. 135 00:06:02,920 --> 00:06:05,159 Speaker 4: Don't comply with certain orders from the president. 136 00:06:05,720 --> 00:06:08,240 Speaker 5: Look, I am in agreement with where the President is 137 00:06:08,279 --> 00:06:09,840 Speaker 5: and the things that he's trying to do, and I 138 00:06:09,880 --> 00:06:13,160 Speaker 5: think we're going to be able to not only improve 139 00:06:13,279 --> 00:06:16,440 Speaker 5: things happening in Arkansas, but hopefully things happening in all 140 00:06:16,520 --> 00:06:19,159 Speaker 5: fifty states. This is a president who's coming in with 141 00:06:19,200 --> 00:06:23,600 Speaker 5: a huge mandate. People want to see his policies enacted. 142 00:06:23,839 --> 00:06:26,160 Speaker 5: They know exactly what they signed up for because they've 143 00:06:26,200 --> 00:06:30,000 Speaker 5: seen his leadership style, and he won in an overwhelming margin, 144 00:06:30,040 --> 00:06:31,880 Speaker 5: and that's what people are hoping. He's going to come 145 00:06:31,920 --> 00:06:34,040 Speaker 5: in and deliver on all the things that he's been 146 00:06:34,080 --> 00:06:35,640 Speaker 5: talking about over the last couple of years. 147 00:06:35,680 --> 00:06:37,240 Speaker 4: Have you talked with Governor VISHERI yet. 148 00:06:37,400 --> 00:06:39,320 Speaker 5: I haven't yet, but I'm looking forward to spend some 149 00:06:39,320 --> 00:06:40,440 Speaker 5: time with him this afternoon. 150 00:06:40,680 --> 00:06:43,320 Speaker 3: But you guys both are the children of governors, I believe, 151 00:06:43,440 --> 00:06:45,640 Speaker 3: and you both are coming to the stage, but from 152 00:06:45,680 --> 00:06:48,080 Speaker 3: opposite sides, one Democrat yourself a Republican. 153 00:06:48,920 --> 00:06:51,200 Speaker 4: Do you expect it to be collegial? 154 00:06:51,240 --> 00:06:52,920 Speaker 3: Do you expect it to be a working together kind 155 00:06:52,920 --> 00:06:54,479 Speaker 3: of feeling, or do you feel like that divide is 156 00:06:54,480 --> 00:06:55,480 Speaker 3: getting more entrenched? 157 00:06:55,960 --> 00:06:56,520 Speaker 6: Absolutely? 158 00:06:56,520 --> 00:07:00,360 Speaker 5: I think that you know, governors have a unique perspectiveive, 159 00:07:00,400 --> 00:07:03,279 Speaker 5: and certainly I want to promote and bring the business 160 00:07:03,360 --> 00:07:05,800 Speaker 5: and economic development to my state. I know he wants 161 00:07:05,880 --> 00:07:08,159 Speaker 5: to do the same. But there's some common threads and 162 00:07:08,200 --> 00:07:10,720 Speaker 5: some common challenges that we're both dealing with. I think 163 00:07:10,800 --> 00:07:13,720 Speaker 5: that we'll have a great conversation. I'm really looking forward 164 00:07:13,760 --> 00:07:14,000 Speaker 5: to it. 165 00:07:14,040 --> 00:07:15,440 Speaker 3: One other reason why you're here is to meet with 166 00:07:15,480 --> 00:07:18,960 Speaker 3: all these business leaders about potentially investing in Arkansas. Are 167 00:07:18,960 --> 00:07:22,080 Speaker 3: there specific projects that you would like to see finance, 168 00:07:22,160 --> 00:07:24,640 Speaker 3: There's specific streams of business that you think would be 169 00:07:24,640 --> 00:07:26,160 Speaker 3: helpful to get international investment. 170 00:07:26,720 --> 00:07:29,600 Speaker 5: Certainly, one of the biggest areas of growth in our 171 00:07:29,680 --> 00:07:31,160 Speaker 5: state is aerospace and defense. 172 00:07:31,680 --> 00:07:33,880 Speaker 6: It's now the number one export from Arkansas. 173 00:07:34,000 --> 00:07:37,120 Speaker 5: Arkansas has the best economic growth of any state in 174 00:07:37,160 --> 00:07:39,320 Speaker 5: the country over the last year. We're the number one 175 00:07:39,440 --> 00:07:42,680 Speaker 5: state for people to move into anywhere in the country. 176 00:07:42,720 --> 00:07:45,480 Speaker 5: There's a lot of great things happening in our state. 177 00:07:45,800 --> 00:07:48,640 Speaker 5: We like to teut that we are home to fortune, 178 00:07:48,760 --> 00:07:52,160 Speaker 5: one little retailer you may have heard of called Walmart. 179 00:07:52,240 --> 00:07:53,080 Speaker 6: So we're not. 180 00:07:53,120 --> 00:07:57,080 Speaker 5: Afraid of big business and success stories in Arkansas. And 181 00:07:57,160 --> 00:07:59,000 Speaker 5: we have the opportunity to meet with a lot of 182 00:07:59,040 --> 00:08:01,320 Speaker 5: companies and let them know that we're open and we're 183 00:08:01,360 --> 00:08:03,840 Speaker 5: ready for them to invest and make Arkansas their home 184 00:08:03,880 --> 00:08:04,200 Speaker 5: as well. 185 00:08:04,320 --> 00:08:06,160 Speaker 3: How many meetings are you having me how much did 186 00:08:06,160 --> 00:08:07,760 Speaker 3: you get just an influx of people who wanted to 187 00:08:07,840 --> 00:08:10,520 Speaker 3: meet with you, And did anyone surprise you or any 188 00:08:10,560 --> 00:08:12,160 Speaker 3: places surprise you where they came from. 189 00:08:12,240 --> 00:08:15,160 Speaker 5: It's certainly a busy couple days and look forward to 190 00:08:15,200 --> 00:08:19,040 Speaker 5: making them a really productive few days with a lot 191 00:08:19,040 --> 00:08:20,960 Speaker 5: of good things to take back home to Arkansas. 192 00:08:21,000 --> 00:08:23,119 Speaker 3: Are you concerned though, that there's this feeling that maybe 193 00:08:23,120 --> 00:08:25,880 Speaker 3: the US is putting itself first of the loss of 194 00:08:26,000 --> 00:08:27,040 Speaker 3: other countries. 195 00:08:27,440 --> 00:08:28,000 Speaker 4: Not at all. 196 00:08:28,520 --> 00:08:29,560 Speaker 6: I think it's important. 197 00:08:30,120 --> 00:08:32,840 Speaker 5: Everybody is going to be competing for the people that 198 00:08:32,840 --> 00:08:36,040 Speaker 5: they either governor or lead, and that's exactly what you're 199 00:08:36,080 --> 00:08:38,560 Speaker 5: going to get in Donald Trump. It's somebody he hasn't 200 00:08:38,600 --> 00:08:41,280 Speaker 5: been shy about the fact that he wants. 201 00:08:41,000 --> 00:08:41,880 Speaker 6: America to win. 202 00:08:41,920 --> 00:08:45,679 Speaker 5: There's nothing negative about wanting the best for your country 203 00:08:45,679 --> 00:08:47,720 Speaker 5: and the people that you lead, and I think that 204 00:08:48,720 --> 00:08:51,680 Speaker 5: people want to see him do that, and that's why 205 00:08:51,720 --> 00:08:53,199 Speaker 5: he won reelection in such. 206 00:08:53,000 --> 00:08:53,480 Speaker 6: A big way. 207 00:08:53,600 --> 00:08:56,200 Speaker 3: Governor Sanders, really appreciate your time and you're making the 208 00:08:56,280 --> 00:08:59,800 Speaker 3: trek from Washington, d C too, Davos. Not many people 209 00:09:00,160 --> 00:09:03,240 Speaker 3: that Arkansas Governor Sarah Hockeyby Sanders. 210 00:09:02,840 --> 00:09:13,600 Speaker 7: Did blood block. 211 00:09:13,640 --> 00:09:17,000 Speaker 2: Jamanabaschi leading our coverage added Bay with us here in Davios, 212 00:09:17,000 --> 00:09:21,120 Speaker 2: Switzerland and sitting down with a special guest, Hey, Jamana, Hi. 213 00:09:21,000 --> 00:09:22,200 Speaker 8: Guys, Yeah, good morning to you. 214 00:09:22,480 --> 00:09:24,480 Speaker 9: So yeah, sitting with me right now, is this Excellency 215 00:09:24,520 --> 00:09:27,719 Speaker 9: Mohammad al Jadan, the Saudi Finance Minister. Really good to 216 00:09:27,760 --> 00:09:30,240 Speaker 9: be talking to you, my colleagues in the US. We're 217 00:09:30,320 --> 00:09:34,560 Speaker 9: just talking about the excitement many people, many industry leaders 218 00:09:34,760 --> 00:09:35,840 Speaker 9: feel about. 219 00:09:35,520 --> 00:09:38,120 Speaker 8: The prospects of the US economy this year. 220 00:09:38,520 --> 00:09:40,680 Speaker 9: But my question to you is how does the rest 221 00:09:40,760 --> 00:09:42,480 Speaker 9: of the world feel about it. What do you think 222 00:09:42,679 --> 00:09:45,600 Speaker 9: the return of Trump means and his talk of taris 223 00:09:45,920 --> 00:09:46,800 Speaker 9: for global growth. 224 00:09:47,920 --> 00:09:49,880 Speaker 10: Thank you very much for having me, and I think 225 00:09:50,360 --> 00:09:53,319 Speaker 10: a very strong US economy is a good thing for 226 00:09:53,360 --> 00:09:58,320 Speaker 10: the world and the world economy. The same applies to 227 00:09:58,520 --> 00:10:03,800 Speaker 10: other major economies. If they go south, the whole world 228 00:10:04,120 --> 00:10:05,360 Speaker 10: would really feel it. 229 00:10:05,960 --> 00:10:08,920 Speaker 11: So we are excited the world gets called exactly. 230 00:10:09,000 --> 00:10:12,640 Speaker 10: I mean, we are excited about the US new administration, 231 00:10:12,800 --> 00:10:14,760 Speaker 10: and we are excited about the US economy. 232 00:10:15,600 --> 00:10:17,559 Speaker 11: We think the. 233 00:10:16,840 --> 00:10:20,240 Speaker 10: Next few years would actually show strength and the US 234 00:10:20,280 --> 00:10:21,240 Speaker 10: economy and that. 235 00:10:21,960 --> 00:10:23,600 Speaker 11: Will be good for the whole world. 236 00:10:24,440 --> 00:10:26,400 Speaker 10: Obviously, we need to be watchful, we need to make 237 00:10:26,440 --> 00:10:32,280 Speaker 10: sure that we also support cooperation and multilateral institutions. But 238 00:10:32,559 --> 00:10:35,760 Speaker 10: I am confident that the US economy would be positive 239 00:10:35,800 --> 00:10:38,040 Speaker 10: and I think that I m F and their latest 240 00:10:38,080 --> 00:10:41,319 Speaker 10: report showed that the US is on the upside. 241 00:10:41,400 --> 00:10:43,800 Speaker 9: It seems like His World Highness the Crown Frience had 242 00:10:43,800 --> 00:10:47,040 Speaker 9: a constructive call with President Trump yesterday. A lot of 243 00:10:47,040 --> 00:10:50,320 Speaker 9: reports this morning saying that Saudi plans to invest up 244 00:10:50,320 --> 00:10:52,760 Speaker 9: to six hundred billion dollars in the US over the 245 00:10:52,760 --> 00:10:55,280 Speaker 9: next four years. For people not familiar with those figures, 246 00:10:55,280 --> 00:10:57,920 Speaker 9: that's about fifty five percent of Saudi GDP. You're the 247 00:10:57,920 --> 00:11:01,640 Speaker 9: finance minister or are you going to get that money? 248 00:11:01,760 --> 00:11:05,319 Speaker 10: This is I mean Saudi Press Agency actually issued a 249 00:11:05,440 --> 00:11:10,720 Speaker 10: sesatement on this. We enjoy a very strong relationship with 250 00:11:10,760 --> 00:11:12,480 Speaker 10: the US over the years. I mean we have a 251 00:11:12,520 --> 00:11:18,560 Speaker 10: relationship that spans over eight decades, very strategic based on economic, 252 00:11:18,960 --> 00:11:22,200 Speaker 10: economy and trade and will continue. I mean we have 253 00:11:22,600 --> 00:11:25,959 Speaker 10: currently we have over seven hundred and seventy billion dollars 254 00:11:25,960 --> 00:11:29,680 Speaker 10: of investments in the US, So this is not really new. 255 00:11:29,760 --> 00:11:35,480 Speaker 10: This is a combination of investments and procurements. We have 256 00:11:35,720 --> 00:11:40,959 Speaker 10: very ambitious plans in Saudi Arabia. Saudivision twenty thirty is 257 00:11:41,160 --> 00:11:45,560 Speaker 10: moving on plan and our relationship budde Is with the US, 258 00:11:45,559 --> 00:11:49,640 Speaker 10: with Europe, with China will continue to be flourishing. As 259 00:11:49,679 --> 00:11:51,560 Speaker 10: part of that reform that we are doing. 260 00:11:51,720 --> 00:11:53,839 Speaker 9: I guess I just think about it from a funding perspective, 261 00:11:53,880 --> 00:11:56,960 Speaker 9: because there are mega projects that Saudi Auba has committed to, 262 00:11:57,000 --> 00:12:01,920 Speaker 9: and we've talked about the reprioritization of and the redirection. 263 00:12:01,520 --> 00:12:03,319 Speaker 8: Of funds over the last year. 264 00:12:03,400 --> 00:12:06,079 Speaker 9: But then there are new projects that Saudi is taking 265 00:12:06,080 --> 00:12:08,480 Speaker 9: on as well. The World Cup, for example, Cutter spent 266 00:12:08,520 --> 00:12:11,960 Speaker 9: two hundred billion dollars on that. So the question I 267 00:12:12,000 --> 00:12:15,320 Speaker 9: think from the investment community is if you are planning 268 00:12:15,320 --> 00:12:18,360 Speaker 9: on borrowing more, how much balance sheet deterioration are you 269 00:12:18,360 --> 00:12:19,240 Speaker 9: willing to tolerate. 270 00:12:20,240 --> 00:12:23,360 Speaker 10: We have in Soba have a very strong actually fiscal 271 00:12:25,000 --> 00:12:30,880 Speaker 10: buffers very strong, and we are very very careful about 272 00:12:30,960 --> 00:12:34,600 Speaker 10: what we spend, how we spend it. Undred ten on 273 00:12:34,720 --> 00:12:39,319 Speaker 10: that spend, we have a very clear plan. We moved 274 00:12:39,360 --> 00:12:42,760 Speaker 10: from just three years fiscal plan and to actually a 275 00:12:42,880 --> 00:12:47,800 Speaker 10: long term fiscal plan. We've concluded this last year, so 276 00:12:47,840 --> 00:12:50,520 Speaker 10: we know exactly what we are going to spend, where 277 00:12:50,520 --> 00:12:52,800 Speaker 10: are we going to get that money from, how we 278 00:12:52,840 --> 00:12:54,920 Speaker 10: are going to make sure that it helps the economy 279 00:12:55,440 --> 00:12:55,959 Speaker 10: and not. 280 00:12:56,000 --> 00:12:57,440 Speaker 11: Cloud out the private sector. 281 00:12:58,040 --> 00:13:01,680 Speaker 10: That is a long term plan and all of these 282 00:13:01,720 --> 00:13:06,600 Speaker 10: projects will fall in place within that context. We recalibrated 283 00:13:06,840 --> 00:13:09,000 Speaker 10: what we need to do, and we wanted to make 284 00:13:09,000 --> 00:13:13,240 Speaker 10: sure that we prioritize what would make matters. We wanted 285 00:13:13,280 --> 00:13:15,600 Speaker 10: to make sure that we don't overheit the economy, so 286 00:13:15,679 --> 00:13:19,600 Speaker 10: we extended some of these projects over an extended period 287 00:13:19,640 --> 00:13:21,800 Speaker 10: of time, and we wanted to make sure that our 288 00:13:21,800 --> 00:13:23,000 Speaker 10: private sector benefits. 289 00:13:23,040 --> 00:13:25,600 Speaker 11: So if we do too much. 290 00:13:25,840 --> 00:13:28,080 Speaker 10: At a short period of time, the private sector will 291 00:13:28,080 --> 00:13:30,520 Speaker 10: not catch up, so we will have a lot of 292 00:13:30,600 --> 00:13:32,920 Speaker 10: leakage from our economy by importing a lot of things. 293 00:13:32,920 --> 00:13:35,280 Speaker 10: So we wanted really to balance it, and that's what 294 00:13:35,320 --> 00:13:38,600 Speaker 10: we did in the long term plan. I think if 295 00:13:38,640 --> 00:13:42,439 Speaker 10: you want to see how this actually is reflecting in Saudi, 296 00:13:43,000 --> 00:13:45,360 Speaker 10: you will need to see what is happening with the 297 00:13:45,360 --> 00:13:48,080 Speaker 10: people in sauda Abia. They are embracing this change. I 298 00:13:48,080 --> 00:13:50,400 Speaker 10: mean if you visit and you could see it, they 299 00:13:50,440 --> 00:13:53,760 Speaker 10: are really part of that change. You could see it 300 00:13:53,800 --> 00:13:58,880 Speaker 10: in the PMI and the Purchasing Managers Index, which is 301 00:13:59,040 --> 00:13:59,560 Speaker 10: very high. 302 00:14:00,080 --> 00:14:01,760 Speaker 9: I'll get to the growth question in a second, but 303 00:14:01,800 --> 00:14:03,800 Speaker 9: I do just want to ask on the funding. Can 304 00:14:03,840 --> 00:14:07,760 Speaker 9: we expect further sales of the government's taken ARAMCO. 305 00:14:08,760 --> 00:14:11,720 Speaker 10: There is no extra funding than what we have planned 306 00:14:11,720 --> 00:14:15,840 Speaker 10: for the long term plan. And you know Aramco or 307 00:14:15,880 --> 00:14:18,760 Speaker 10: other assets is bart of a plan, so there's nothing 308 00:14:18,800 --> 00:14:22,040 Speaker 10: immediate to talk about. But this is actually bart of 309 00:14:22,120 --> 00:14:24,400 Speaker 10: a long term plan that we started in sixteen. 310 00:14:24,640 --> 00:14:24,880 Speaker 8: Yeah. 311 00:14:25,240 --> 00:14:30,600 Speaker 9: On the growth, IMF actually marginally downgraded the Saudi estimate 312 00:14:30,640 --> 00:14:34,240 Speaker 9: for this year, looking to three point three percent for 313 00:14:34,640 --> 00:14:38,360 Speaker 9: twenty twenty five, and partially on back of Saudi's lower 314 00:14:38,400 --> 00:14:40,560 Speaker 9: oil production, and of course this was a decision taken 315 00:14:40,600 --> 00:14:45,640 Speaker 9: by OPEK plus. And I just wonder how long you 316 00:14:45,760 --> 00:14:50,760 Speaker 9: think Saudi Arabia can continue with producing less and yet 317 00:14:50,800 --> 00:14:54,760 Speaker 9: continuing to achieve those non oil GDP figures that you target. 318 00:14:56,000 --> 00:14:59,360 Speaker 10: This is actually a very good question, spot on, And 319 00:14:59,440 --> 00:15:03,480 Speaker 10: I think the whole idea behind Saudivision twenty thirty is 320 00:15:03,520 --> 00:15:06,960 Speaker 10: exactly this is to deal with these things. We were 321 00:15:07,120 --> 00:15:11,400 Speaker 10: an economy that is totally dependent. When a commodity and 322 00:15:11,480 --> 00:15:14,800 Speaker 10: the voluntility of that commodity impacts the economy, it's the 323 00:15:14,840 --> 00:15:18,880 Speaker 10: boom and bust. We are decoupling the Saudi economy from 324 00:15:19,000 --> 00:15:22,520 Speaker 10: the oil economy, okay, And you could see that and 325 00:15:22,840 --> 00:15:26,760 Speaker 10: actual numbers, I mean numbers does not lie. The NANOILGDB 326 00:15:26,880 --> 00:15:29,360 Speaker 10: bar to the economy is now about fifty two percent. 327 00:15:30,240 --> 00:15:34,640 Speaker 10: The private sector investment as a percentage of GDB has 328 00:15:34,680 --> 00:15:39,480 Speaker 10: seen a structural change. You don't see private sector investment 329 00:15:39,560 --> 00:15:43,520 Speaker 10: as a percentage of GDB changing very quickly in any economy. 330 00:15:43,720 --> 00:15:47,000 Speaker 10: We are seeing that in Saudaibia jumped from about seventeen 331 00:15:47,040 --> 00:15:50,360 Speaker 10: percent now it is twenty four percent. That is a 332 00:15:50,560 --> 00:15:54,920 Speaker 10: serious shift in the economy. The consumption is very strong. 333 00:15:55,040 --> 00:15:57,400 Speaker 10: I mean you look at the confidence both at the 334 00:15:57,440 --> 00:15:59,400 Speaker 10: business side but also at the consumer side. 335 00:15:59,440 --> 00:16:00,240 Speaker 11: It's strong. 336 00:16:00,400 --> 00:16:02,560 Speaker 8: Yeah, your excellency, just around things up. 337 00:16:03,320 --> 00:16:06,200 Speaker 9: Saudi Arabia for so long has been a place where 338 00:16:06,320 --> 00:16:09,480 Speaker 9: investors from around the world have come to receive funding, 339 00:16:09,560 --> 00:16:14,520 Speaker 9: to receive capital. How successful has the Kingdom been in 340 00:16:14,640 --> 00:16:19,320 Speaker 9: terms of mobilizing these funds domestically and encouraging the international 341 00:16:19,320 --> 00:16:22,680 Speaker 9: community to actually invest into Saudi Arabia. 342 00:16:24,000 --> 00:16:26,160 Speaker 11: Very important point. 343 00:16:26,640 --> 00:16:29,240 Speaker 10: A lot of focus on f THEI. I'll cover f THEI, 344 00:16:29,400 --> 00:16:32,120 Speaker 10: but I will cover actually prerequisite for the FDI. 345 00:16:33,160 --> 00:16:34,720 Speaker 11: For FDI to. 346 00:16:34,680 --> 00:16:37,080 Speaker 10: Come, you need to make sure that actually you attract 347 00:16:37,120 --> 00:16:40,760 Speaker 10: your own local investors to invest in your economy. These 348 00:16:40,760 --> 00:16:43,760 Speaker 10: are their colleagues, their friends, their partners elsewhere in the world. 349 00:16:44,000 --> 00:16:46,560 Speaker 10: And if you are not able to convince your local 350 00:16:46,560 --> 00:16:49,640 Speaker 10: investors to invest, you will not be able to convince 351 00:16:49,920 --> 00:16:52,880 Speaker 10: their foreign investors. And we are achieving both. I think 352 00:16:52,920 --> 00:16:57,200 Speaker 10: we are seeing significant growth and local investments in Saudi 353 00:16:57,200 --> 00:17:01,600 Speaker 10: Arabia and we are seeing I think Misa, your investment 354 00:17:02,160 --> 00:17:05,560 Speaker 10: published a few weeks back, what is the targets under 355 00:17:05,600 --> 00:17:12,159 Speaker 10: the Saudi National Investment Strategy over the last four years 356 00:17:12,200 --> 00:17:14,359 Speaker 10: and what have we achieved in terms of FDI And 357 00:17:14,560 --> 00:17:18,120 Speaker 10: every year, without failm we came ahead of the target and. 358 00:17:18,160 --> 00:17:19,000 Speaker 11: That is continuing. 359 00:17:19,040 --> 00:17:24,000 Speaker 10: I think Saudi offers significant opportunities for investors local and 360 00:17:24,040 --> 00:17:28,879 Speaker 10: international in multiple years of space where we have competitive advantage. 361 00:17:29,240 --> 00:17:30,760 Speaker 8: You're acceeny. I'm going to leave it there. 362 00:17:30,880 --> 00:17:33,840 Speaker 9: Thank you very much for sharing your perspectives about the 363 00:17:33,880 --> 00:17:37,960 Speaker 9: outlook for the Saudi economy and funding as the kingdom 364 00:17:38,000 --> 00:17:55,640 Speaker 9: continues to implement Saudi twenty thirty. 365 00:17:50,040 --> 00:17:52,639 Speaker 2: State paliucasat down with us and Lisa linds in and 366 00:17:52,680 --> 00:17:53,560 Speaker 2: goes apart from sports. 367 00:17:53,560 --> 00:17:55,080 Speaker 4: Okay, okay, hold on a second. 368 00:17:55,240 --> 00:17:58,520 Speaker 12: You've been talking about at Alerta for like about three 369 00:17:58,640 --> 00:18:01,240 Speaker 12: years now, and you're so excited, and I know that 370 00:18:01,280 --> 00:18:04,439 Speaker 12: the whole thing is going to be about Atlanta, and 371 00:18:04,480 --> 00:18:06,880 Speaker 12: I think that that's wonderful, but it's a. 372 00:18:06,840 --> 00:18:08,520 Speaker 3: Lot of teles in a lot of places. 373 00:18:08,520 --> 00:18:09,400 Speaker 4: Really, you're going to do. 374 00:18:09,280 --> 00:18:11,440 Speaker 2: This in the capital private equity Senior advice that joins 375 00:18:11,480 --> 00:18:13,359 Speaker 2: us now Thine Steve, Hello, good to see you. 376 00:18:13,600 --> 00:18:14,200 Speaker 11: Great to be here. 377 00:18:14,240 --> 00:18:15,200 Speaker 7: Let's start with sports. 378 00:18:16,680 --> 00:18:17,639 Speaker 11: I thought it was in ESPN. 379 00:18:18,560 --> 00:18:20,480 Speaker 7: We had to get on that night because that's Atlanta 380 00:18:20,520 --> 00:18:23,040 Speaker 7: five NOL. What a story for that team this year. 381 00:18:23,720 --> 00:18:24,879 Speaker 11: You know, I'm still pinching myself. 382 00:18:24,880 --> 00:18:26,679 Speaker 13: It's just incredible and very happy for the team and 383 00:18:26,680 --> 00:18:29,159 Speaker 13: the coach and the Procrassi family. It's been great for 384 00:18:29,240 --> 00:18:31,760 Speaker 13: Bergermon and Milan and it's just really exciting. 385 00:18:31,920 --> 00:18:33,879 Speaker 2: I don't need to get too excited, but can you 386 00:18:33,920 --> 00:18:34,760 Speaker 2: win the league this year? 387 00:18:36,040 --> 00:18:38,159 Speaker 13: You know the old adage take it one game at 388 00:18:38,200 --> 00:18:39,719 Speaker 13: a time, so we just was going to do. We've 389 00:18:39,720 --> 00:18:41,080 Speaker 13: got to get healthy. We got a couple of guys 390 00:18:41,080 --> 00:18:43,160 Speaker 13: that are hurt, but they're playing fantastic. 391 00:18:43,320 --> 00:18:46,720 Speaker 2: It's amazing to see Barcelona up next and maybe straight 392 00:18:46,800 --> 00:18:48,840 Speaker 2: qualification to the not the next round, but the one 393 00:18:48,840 --> 00:18:51,200 Speaker 2: after that, right big, that would be a big big 394 00:18:51,200 --> 00:18:52,680 Speaker 2: for European would go to Barcelona. 395 00:18:52,760 --> 00:18:54,960 Speaker 7: That's the football. Okay, I to the basketball. You should 396 00:18:54,960 --> 00:18:55,280 Speaker 7: do best. 397 00:18:55,359 --> 00:18:56,080 Speaker 4: Actually, there's a lot of. 398 00:18:57,640 --> 00:19:00,560 Speaker 2: Reports that you're after majority ownership of the Boston outtakes. 399 00:19:00,680 --> 00:19:02,280 Speaker 7: How much can you tell us this morning? 400 00:19:02,480 --> 00:19:05,080 Speaker 11: I can't comment, as you know, on any deals, including. 401 00:19:04,760 --> 00:19:06,480 Speaker 7: That deal, okay that one specifically? 402 00:19:06,560 --> 00:19:09,080 Speaker 2: Can we talk more broadly about the NBA franchises and 403 00:19:09,160 --> 00:19:11,359 Speaker 2: what's happening there, because I have nights at the audience 404 00:19:11,400 --> 00:19:14,240 Speaker 2: levels TV audience levels have fallen off in some parts. 405 00:19:14,280 --> 00:19:15,200 Speaker 7: What do you think is behind that? 406 00:19:15,800 --> 00:19:17,919 Speaker 13: You know, I think I think it's fragmentation of viewing, 407 00:19:17,960 --> 00:19:20,040 Speaker 13: and I think the viewing leaderships are really good when 408 00:19:20,040 --> 00:19:22,720 Speaker 13: they can count it correctly and really find out who's 409 00:19:22,720 --> 00:19:24,880 Speaker 13: watching where. So I don't think there's a concern there 410 00:19:24,880 --> 00:19:27,040 Speaker 13: in the league is really strong and has more stars 411 00:19:27,080 --> 00:19:29,840 Speaker 13: than ever, and you know, it's been fantastic, So I 412 00:19:29,840 --> 00:19:31,720 Speaker 13: think that's a that's kind of a bump in the room. 413 00:19:31,880 --> 00:19:34,560 Speaker 3: So we've covered football, we've covered basketball, any other sports 414 00:19:34,560 --> 00:19:35,679 Speaker 3: that you're going to buy a team in. 415 00:19:36,040 --> 00:19:37,639 Speaker 11: No, I'm not in a cricket so I'm good. 416 00:19:38,720 --> 00:19:42,840 Speaker 1: Well, there's I mean, honestly, there's actually a lot to 417 00:19:42,880 --> 00:19:44,440 Speaker 1: talk about it and whether you're going to buy another team? 418 00:19:44,480 --> 00:19:45,680 Speaker 4: Are you going to buy another team? 419 00:19:46,280 --> 00:19:46,760 Speaker 11: Who knows. 420 00:19:47,000 --> 00:19:49,560 Speaker 3: Okay, All right, well let's move on because right now 421 00:19:49,560 --> 00:19:52,119 Speaker 3: we talk about Davos and it hall has been dominated 422 00:19:52,119 --> 00:19:55,920 Speaker 3: by incredible optimism. America is going to boom, and Donald 423 00:19:55,960 --> 00:19:56,960 Speaker 3: Trump what's he going to do? 424 00:19:57,880 --> 00:20:00,160 Speaker 4: Of course, there's also overlay of artificial. 425 00:19:59,720 --> 00:20:03,800 Speaker 3: Intell what's been your biggest takeaway about what people are 426 00:20:03,800 --> 00:20:05,480 Speaker 3: concerned about with the Trump administration? 427 00:20:06,040 --> 00:20:09,520 Speaker 13: Well, I think first of all, this Estavos is all Trump, 428 00:20:09,600 --> 00:20:14,359 Speaker 13: all AI. That's all people are talking about. And the 429 00:20:14,400 --> 00:20:17,520 Speaker 13: Trump issue is, you know, what's going to happen with tariffs. 430 00:20:17,680 --> 00:20:20,400 Speaker 13: You know, Europe's worried about tariffs everyways, worried about tariffs, 431 00:20:20,960 --> 00:20:23,840 Speaker 13: What's going to happen with the Ukraine, What's going to 432 00:20:23,880 --> 00:20:29,200 Speaker 13: happen with the American economy and protectionism? That's that's their worry. 433 00:20:29,240 --> 00:20:32,920 Speaker 11: And on AI, you know, AI is for real. 434 00:20:33,480 --> 00:20:35,520 Speaker 13: It feels a little bit like you're in nineteen ninety 435 00:20:35,600 --> 00:20:37,400 Speaker 13: nine Internet boom. 436 00:20:38,080 --> 00:20:39,359 Speaker 11: So there's a lot of hype, but there's a lot 437 00:20:39,359 --> 00:20:41,240 Speaker 11: of reality in AI, and AI is going to change everything. 438 00:20:41,400 --> 00:20:49,000 Speaker 13: I view AI as almost building the railroads and the interstate. 439 00:20:48,000 --> 00:20:49,359 Speaker 11: Highway system in the US. 440 00:20:49,480 --> 00:20:51,000 Speaker 13: We're going to need to have that over the next 441 00:20:51,040 --> 00:20:53,040 Speaker 13: twenty years or we're going to fall behind. So I 442 00:20:53,040 --> 00:20:55,480 Speaker 13: think it's a legitimate discussion on AI, and they came 443 00:20:55,480 --> 00:20:57,800 Speaker 13: out with the Stargate program, which I think is fantastic 444 00:20:58,080 --> 00:21:02,080 Speaker 13: because other countries are getting ahead. Is investing billions, UE 445 00:21:02,160 --> 00:21:05,280 Speaker 13: is investing billions, Sauda's investing billions. I think the US 446 00:21:05,280 --> 00:21:06,600 Speaker 13: has to get out ahead of that trend and it's 447 00:21:06,600 --> 00:21:08,000 Speaker 13: going to affect everything over the next twenties. 448 00:21:08,040 --> 00:21:09,119 Speaker 11: I'm really excited about it. 449 00:21:09,000 --> 00:21:10,720 Speaker 7: As an investor. What's your approach to one of this? 450 00:21:10,800 --> 00:21:12,680 Speaker 2: How do you think about the opportunities you mentioned the 451 00:21:12,720 --> 00:21:14,679 Speaker 2: late nineties, it took a while to find out who 452 00:21:14,720 --> 00:21:18,040 Speaker 2: the ultimate winners would be. Are you expected something similar 453 00:21:18,040 --> 00:21:18,680 Speaker 2: this time around? 454 00:21:18,760 --> 00:21:20,600 Speaker 13: It's going to be a little different because because I 455 00:21:20,600 --> 00:21:24,000 Speaker 13: look at AID, you had winners like Google that were 456 00:21:24,080 --> 00:21:27,280 Speaker 13: kind of natural monopolies. There can be many variants of 457 00:21:27,359 --> 00:21:30,320 Speaker 13: large language models, so there can be a global large 458 00:21:30,359 --> 00:21:33,200 Speaker 13: language model, there can be probably four or five of those. 459 00:21:34,160 --> 00:21:36,560 Speaker 13: But now the real use is going to be vertical ones, 460 00:21:36,640 --> 00:21:41,200 Speaker 13: so tailoring models with the data specific data for say healthcare, 461 00:21:42,800 --> 00:21:45,960 Speaker 13: specific models for transportation with transportation. 462 00:21:45,480 --> 00:21:45,959 Speaker 11: Data in it. 463 00:21:46,200 --> 00:21:48,480 Speaker 13: So I think vertical AI models will be the ones 464 00:21:48,480 --> 00:21:50,639 Speaker 13: that start to impact the economy, and then the other 465 00:21:50,680 --> 00:21:52,840 Speaker 13: ones are going to grow and we need that infrastructure, 466 00:21:53,000 --> 00:21:54,879 Speaker 13: and then what's going to happen is from that you 467 00:21:54,920 --> 00:21:58,920 Speaker 13: need power. Fusion is being talked about and is around 468 00:21:58,960 --> 00:22:00,480 Speaker 13: the corner all the fuse and comp I look at 469 00:22:00,600 --> 00:22:03,320 Speaker 13: or getting close to actually generating energy. The models are 470 00:22:03,320 --> 00:22:05,239 Speaker 13: showing soon they're going to generate energy and build these 471 00:22:05,320 --> 00:22:08,119 Speaker 13: large tokmacs that's going to have to power all the 472 00:22:08,160 --> 00:22:10,639 Speaker 13: centers with all to get also the GPUs, because if 473 00:22:10,680 --> 00:22:12,560 Speaker 13: you look at the power users of AI, it could 474 00:22:12,560 --> 00:22:13,760 Speaker 13: be the entire power. 475 00:22:13,560 --> 00:22:14,639 Speaker 11: Right now in the United States. 476 00:22:14,960 --> 00:22:17,359 Speaker 13: So I think this stargate program or program like it 477 00:22:17,440 --> 00:22:19,640 Speaker 13: is needed and we've got to match those other countries, 478 00:22:19,880 --> 00:22:22,040 Speaker 13: and that is going to create a virtual sloop of 479 00:22:23,040 --> 00:22:25,560 Speaker 13: spending building the infrastructure and be great for America and 480 00:22:25,760 --> 00:22:27,480 Speaker 13: revolutionized healthcare healthcare as well. 481 00:22:27,560 --> 00:22:29,960 Speaker 3: I know that you've been very active in that space, 482 00:22:30,000 --> 00:22:32,400 Speaker 3: in particular, particularly in the speed that it will take 483 00:22:32,440 --> 00:22:36,040 Speaker 3: to put new prescription drugs on the market using different 484 00:22:36,640 --> 00:22:39,440 Speaker 3: machine learning techniques. I'm just wondering, is that your main 485 00:22:39,480 --> 00:22:41,760 Speaker 3: focus right now of investment when it comes to AI 486 00:22:41,920 --> 00:22:44,240 Speaker 3: or the other regions that you think are promising in 487 00:22:44,280 --> 00:22:46,440 Speaker 3: the application in the near term, not just that there's 488 00:22:46,480 --> 00:22:47,680 Speaker 3: these long term goals. 489 00:22:47,880 --> 00:22:49,880 Speaker 13: Well, I'm focused on the healthcare because I think that's 490 00:22:49,920 --> 00:22:52,480 Speaker 13: the number one. But it'll be helpful in energy and 491 00:22:52,960 --> 00:22:54,720 Speaker 13: finding energy and processing energy. 492 00:22:54,880 --> 00:22:57,280 Speaker 11: It'll be helpful in transportation, It'll be helpful. It's going 493 00:22:57,320 --> 00:22:58,439 Speaker 11: to be embedded in every business. 494 00:22:58,480 --> 00:23:01,800 Speaker 13: And I think, like liquid AI, we're invested in that 495 00:23:01,880 --> 00:23:04,960 Speaker 13: doesn't require it's built. As we talked about last year, 496 00:23:05,119 --> 00:23:07,240 Speaker 13: they studied a worm's brain in MIT, Like, who would 497 00:23:07,240 --> 00:23:07,479 Speaker 13: do that? 498 00:23:07,640 --> 00:23:10,560 Speaker 11: There's three hundred neurons in a worm's brain. 499 00:23:10,680 --> 00:23:11,359 Speaker 4: I think it's fout. 500 00:23:11,440 --> 00:23:13,040 Speaker 11: I mean neurons do you think is in your brain? 501 00:23:13,880 --> 00:23:15,800 Speaker 4: Three hundred and one? I'm just kidding. 502 00:23:16,200 --> 00:23:18,840 Speaker 13: The average person has eighty six billion, You guys probably 503 00:23:18,880 --> 00:23:19,520 Speaker 13: eighty seven each. 504 00:23:19,560 --> 00:23:22,560 Speaker 4: But you can come on again. 505 00:23:22,600 --> 00:23:23,920 Speaker 11: If they come out with an. 506 00:23:23,880 --> 00:23:27,919 Speaker 13: AI system that requires eighty percent less power to load it, 507 00:23:28,480 --> 00:23:30,159 Speaker 13: and that means you can put it on edge device, 508 00:23:30,400 --> 00:23:32,359 Speaker 13: so to be on your phone. So you're going to 509 00:23:32,400 --> 00:23:34,080 Speaker 13: have you know, your assistant on your phone. This is 510 00:23:34,080 --> 00:23:35,640 Speaker 13: going to start to be in all the phones. It's 511 00:23:35,680 --> 00:23:37,880 Speaker 13: going to kind of revolutionize the way our lives are. 512 00:23:38,080 --> 00:23:40,760 Speaker 3: One aspect of this Davos. It's so interesting is that 513 00:23:40,800 --> 00:23:43,040 Speaker 3: there's some real tensions that need to be resolved, especially 514 00:23:43,080 --> 00:23:45,760 Speaker 3: as everyone's talking about artificial intelligence. On the flip side, 515 00:23:45,840 --> 00:23:49,199 Speaker 3: Donald Trump talking about national security. He's talking about the 516 00:23:49,600 --> 00:23:52,640 Speaker 3: chips in the US that could potentially transmit data back 517 00:23:52,680 --> 00:23:55,480 Speaker 3: to China or one of our other adversaries or competitors. 518 00:23:55,480 --> 00:23:58,520 Speaker 3: And I'm just wondering as an investor, how you understand 519 00:23:58,600 --> 00:24:01,080 Speaker 3: what's national security and what Well. 520 00:24:00,920 --> 00:24:01,479 Speaker 11: It's difficult. 521 00:24:01,480 --> 00:24:03,520 Speaker 13: You got to follow the government and it changes all 522 00:24:03,560 --> 00:24:05,840 Speaker 13: the time. I think in general, we do need national security, 523 00:24:06,200 --> 00:24:08,160 Speaker 13: but it has to be focused, it has to have 524 00:24:09,000 --> 00:24:11,679 Speaker 13: a purpose, and hopefully they'll have rational people that decide, 525 00:24:11,720 --> 00:24:12,480 Speaker 13: you know what that is. 526 00:24:13,160 --> 00:24:15,280 Speaker 2: Do you worry that some voices we'll get a bigger 527 00:24:15,320 --> 00:24:17,560 Speaker 2: say in the future in the private sector. 528 00:24:18,920 --> 00:24:22,359 Speaker 13: Uh No, I don't worry because we have a system 529 00:24:22,400 --> 00:24:23,840 Speaker 13: that I think will work in the long term. 530 00:24:23,880 --> 00:24:24,760 Speaker 11: And there's going to be a lot of it. 531 00:24:24,920 --> 00:24:27,760 Speaker 13: There always has been fighting of different companies for different things, 532 00:24:27,760 --> 00:24:30,040 Speaker 13: and so so we'll get through it and hopefully we 533 00:24:30,040 --> 00:24:31,760 Speaker 13: will do the right thing. We've got to Congress, we've 534 00:24:31,760 --> 00:24:33,920 Speaker 13: got we've got the court system. So the United States 535 00:24:33,960 --> 00:24:37,040 Speaker 13: is very stable. So I do think we need cybersecurity 536 00:24:37,040 --> 00:24:39,760 Speaker 13: and we need security in general. Hopefully we can have 537 00:24:39,800 --> 00:24:43,359 Speaker 13: a datant with China so we don't don't have that 538 00:24:43,440 --> 00:24:46,800 Speaker 13: going on. And I think Trump, you know, wants to 539 00:24:46,840 --> 00:24:47,920 Speaker 13: cut deals, you. 540 00:24:47,840 --> 00:24:50,040 Speaker 11: Know, to move the economy forward, and I think that'll 541 00:24:50,080 --> 00:24:50,520 Speaker 11: be a good thing. 542 00:24:50,680 --> 00:24:52,280 Speaker 2: I'm sure a lot of Europeans have asked you on 543 00:24:52,359 --> 00:24:54,399 Speaker 2: your opinion on what the next four years is going 544 00:24:54,480 --> 00:24:54,919 Speaker 2: to look like. 545 00:24:54,960 --> 00:24:57,359 Speaker 7: What have you told the Europeans when you ask that question? 546 00:24:58,160 --> 00:25:00,480 Speaker 11: You know, I think the next four years you're opions. 547 00:25:01,440 --> 00:25:04,119 Speaker 13: I've been in many meetings here with health ministers and 548 00:25:04,200 --> 00:25:08,159 Speaker 13: all sorts of ministers, and what they say is the 549 00:25:08,600 --> 00:25:13,960 Speaker 13: EU really isn't a full unions. They use the same money, 550 00:25:13,960 --> 00:25:16,000 Speaker 13: but there's not an integrated capital market. 551 00:25:16,400 --> 00:25:17,639 Speaker 11: There's not integrated in anything. 552 00:25:17,680 --> 00:25:19,360 Speaker 13: In terms of starting a business, you need to fill 553 00:25:19,400 --> 00:25:21,920 Speaker 13: out one hundred pages of forms in Germany and different 554 00:25:21,960 --> 00:25:24,600 Speaker 13: ones in Portugal. So many of them talk to me 555 00:25:24,640 --> 00:25:26,879 Speaker 13: and say they need to create a twenty eighth state 556 00:25:27,560 --> 00:25:30,440 Speaker 13: with a set of rules, a virtual state with one 557 00:25:30,440 --> 00:25:32,640 Speaker 13: set of rules to start a business and one set 558 00:25:32,640 --> 00:25:34,399 Speaker 13: of of a bankruptcy. 559 00:25:34,400 --> 00:25:36,320 Speaker 11: Bankruptcy is different in every country. 560 00:25:36,560 --> 00:25:38,520 Speaker 13: You can't have a great capital market if you're dealing 561 00:25:38,520 --> 00:25:41,280 Speaker 13: with twenty seven different bankruptcy kills or twenty different ways 562 00:25:41,320 --> 00:25:43,760 Speaker 13: of doing things. So I think it's a great idea 563 00:25:43,840 --> 00:25:48,720 Speaker 13: to start a twenty eighth virtual European state, and businesses 564 00:25:48,720 --> 00:25:50,040 Speaker 13: can opt to be in that or be in one 565 00:25:50,080 --> 00:25:52,239 Speaker 13: of the twenty seven. But it's hard to be in 566 00:25:52,280 --> 00:25:54,120 Speaker 13: both of those at the same time. So the big 567 00:25:54,160 --> 00:25:56,800 Speaker 13: advantage the US has is it is one market. It 568 00:25:56,880 --> 00:25:59,800 Speaker 13: is has one set of regulations, so we have a 569 00:25:59,840 --> 00:26:01,560 Speaker 13: let up and hopefully we will make that even better 570 00:26:01,720 --> 00:26:02,840 Speaker 13: in the next four years. 571 00:26:02,880 --> 00:26:05,160 Speaker 3: I want to return to where we began, which is sports, 572 00:26:05,520 --> 00:26:07,359 Speaker 3: and my sport, which is auctions. 573 00:26:07,680 --> 00:26:10,760 Speaker 1: I'm looking at bond auctions, which I think is right 574 00:26:10,760 --> 00:26:12,840 Speaker 1: to caut a time. Well, I know, hold on a second, No, 575 00:26:12,880 --> 00:26:15,480 Speaker 1: I'm serious because I wonder how much you're watching what 576 00:26:15,560 --> 00:26:17,879 Speaker 1: so many people here are worried about, which is that 577 00:26:18,000 --> 00:26:21,040 Speaker 1: all of this optimism, all of this you know, happy 578 00:26:21,080 --> 00:26:24,040 Speaker 1: talk about getting together and really focusing on growth could 579 00:26:24,040 --> 00:26:26,200 Speaker 1: get really styn made if you start to see bond 580 00:26:26,280 --> 00:26:29,080 Speaker 1: yields climb and you start to see the fiscal pressures 581 00:26:29,080 --> 00:26:30,080 Speaker 1: really come into play. 582 00:26:30,920 --> 00:26:32,080 Speaker 4: How concerned are you about that? 583 00:26:32,119 --> 00:26:32,880 Speaker 11: I'm very concerned. 584 00:26:33,080 --> 00:26:35,600 Speaker 13: You know, all the data would show when you have 585 00:26:35,680 --> 00:26:37,920 Speaker 13: an increase in the money supply as big as it's 586 00:26:37,920 --> 00:26:40,880 Speaker 13: been in the last five years and a large deficit, 587 00:26:41,560 --> 00:26:44,280 Speaker 13: that's going to cause higher interest rates and inflation. Those 588 00:26:44,640 --> 00:26:46,760 Speaker 13: kind of go hand in hand. So my biggest worry 589 00:26:46,800 --> 00:26:49,600 Speaker 13: is is inflation going to get out of control and 590 00:26:49,680 --> 00:26:51,679 Speaker 13: keep those interests up there. I think house mortgages are 591 00:26:51,720 --> 00:26:54,719 Speaker 13: costing seven percent. We definitely have to increase the supply, 592 00:26:54,800 --> 00:26:56,919 Speaker 13: and they're looking at programs to do that. But with 593 00:26:57,000 --> 00:26:58,960 Speaker 13: seven percent mortgages, that's not great for growth. 594 00:26:59,080 --> 00:27:01,359 Speaker 3: You mentioned ninety nine, and we all know what happened 595 00:27:01,400 --> 00:27:03,320 Speaker 3: after nineteen ninety nine, and there is this feeling that 596 00:27:03,320 --> 00:27:04,760 Speaker 3: there needs to be a washout and some of the 597 00:27:04,800 --> 00:27:09,520 Speaker 3: startup companies to say deal with technology that continues to evolve. 598 00:27:10,400 --> 00:27:13,600 Speaker 3: Is that the big concern that this kind of increase 599 00:27:13,640 --> 00:27:16,119 Speaker 3: in rates could really catalyze that kind of washout is 600 00:27:16,119 --> 00:27:17,919 Speaker 3: that what you're keeping your eye on. 601 00:27:18,359 --> 00:27:21,760 Speaker 13: Increase in rates definitely catalyzes washouts because when money is free, 602 00:27:21,800 --> 00:27:22,679 Speaker 13: there are no washouts. 603 00:27:22,760 --> 00:27:24,480 Speaker 11: Right, we had free money for a long period of time. 604 00:27:24,520 --> 00:27:27,159 Speaker 13: Now, the good news is for most of my life 605 00:27:27,640 --> 00:27:31,040 Speaker 13: too long life, most of my life. Regist rates have 606 00:27:31,080 --> 00:27:33,080 Speaker 13: been t bills have been five percent, five and a 607 00:27:33,119 --> 00:27:35,920 Speaker 13: half percent, so it's not anomalists. 608 00:27:36,760 --> 00:27:38,399 Speaker 11: But yeah, that is the fear. 609 00:27:39,240 --> 00:27:41,639 Speaker 13: We've already seen a lot of the company's valuations go 610 00:27:41,720 --> 00:27:43,119 Speaker 13: down and good White does, so I think we're. 611 00:27:43,000 --> 00:27:43,720 Speaker 11: Kind of through that. 612 00:27:44,400 --> 00:27:47,480 Speaker 13: I think there is a lot of hype on AI 613 00:27:47,680 --> 00:27:50,600 Speaker 13: and probably some fundings at very high levels, but I 614 00:27:50,640 --> 00:27:53,000 Speaker 13: don't see it like it was in ninety nine, where 615 00:27:53,040 --> 00:27:54,960 Speaker 13: everything across the board was crazy. 616 00:27:54,960 --> 00:27:56,480 Speaker 11: I used to walk into a room San Francisco. 617 00:27:56,880 --> 00:27:58,720 Speaker 13: They give me a term sheet and they say, we 618 00:27:58,800 --> 00:28:01,399 Speaker 13: have a company that's going your internet company is going 619 00:28:01,440 --> 00:28:03,600 Speaker 13: to reduce the supply chain cost of medical equipment. 620 00:28:04,480 --> 00:28:06,160 Speaker 11: That we're valuing the company in a one hundred million 621 00:28:06,200 --> 00:28:07,000 Speaker 11: and has no revenues. 622 00:28:07,080 --> 00:28:08,720 Speaker 13: Is this is the idea and you have two hours 623 00:28:08,760 --> 00:28:10,400 Speaker 13: to decide do you want to invest ten million one hundred 624 00:28:10,400 --> 00:28:10,919 Speaker 13: million valuation? 625 00:28:11,640 --> 00:28:12,080 Speaker 7: I'll pass. 626 00:28:12,160 --> 00:28:14,000 Speaker 11: I was. I was fall out of my chair. This 627 00:28:14,080 --> 00:28:16,640 Speaker 11: is a real story. I said, thank you very much. 628 00:28:16,800 --> 00:28:19,200 Speaker 13: And n ninety nine of those went bankrupt, and then 629 00:28:19,359 --> 00:28:21,440 Speaker 13: we had Google and a few other ones that did well. 630 00:28:21,680 --> 00:28:23,920 Speaker 11: That's not that's not the situation we're in right now. 631 00:28:24,040 --> 00:28:25,800 Speaker 2: Stay you know, John, it's going to say great to 632 00:28:25,800 --> 00:28:28,400 Speaker 2: see you, Good luck to all your sports teams, as 633 00:28:28,440 --> 00:28:31,520 Speaker 2: we say for without a doubt Steve Paliuca a bank 634 00:28:31,560 --> 00:28:44,240 Speaker 2: capital and force Amelia so well from Damos, Switzerland to 635 00:28:44,240 --> 00:28:47,080 Speaker 2: the World Economic Forum, the big event, Ted pick the 636 00:28:47,080 --> 00:28:48,400 Speaker 2: Morgan Stanley chairman and. 637 00:28:48,400 --> 00:28:52,120 Speaker 14: See fantastic good one year in the city. Yes, I'm 638 00:28:52,200 --> 00:28:55,360 Speaker 14: by one year and three weeks. How does it feel amazing? 639 00:28:55,560 --> 00:28:55,800 Speaker 7: Yeah? 640 00:28:55,960 --> 00:28:57,800 Speaker 14: You know, you come into this job and you you 641 00:28:57,880 --> 00:29:01,560 Speaker 14: want to do good, but you discovered is the quality 642 00:29:01,680 --> 00:29:04,800 Speaker 14: underlying franchise and the people, and it's a wonderful franchise. 643 00:29:04,840 --> 00:29:07,400 Speaker 14: I got the keys to a great car and the 644 00:29:07,440 --> 00:29:09,880 Speaker 14: partnership is alive and well now you've got. 645 00:29:09,840 --> 00:29:10,720 Speaker 7: To hit the ground running. 646 00:29:10,800 --> 00:29:11,040 Speaker 11: Yeah. 647 00:29:11,080 --> 00:29:14,560 Speaker 2: American bankers running around CEO very very very happy here 648 00:29:14,560 --> 00:29:17,080 Speaker 2: in Davas, Switzerland, the CEOs and American bankers and you 649 00:29:17,120 --> 00:29:17,600 Speaker 2: one of them. 650 00:29:17,600 --> 00:29:19,320 Speaker 7: Are you optimistic about this year ahead? 651 00:29:19,440 --> 00:29:22,040 Speaker 2: And what is it about the incoming administration that gives 652 00:29:22,080 --> 00:29:23,160 Speaker 2: you that confidence? 653 00:29:23,520 --> 00:29:23,960 Speaker 11: Jonathan? 654 00:29:24,000 --> 00:29:27,080 Speaker 14: I am positive because it is definitely a change in tone. 655 00:29:27,240 --> 00:29:29,800 Speaker 14: It just feels like the overall framework is one where 656 00:29:30,120 --> 00:29:32,760 Speaker 14: more interaction between the public and the private sectors. Well, 657 00:29:32,760 --> 00:29:34,480 Speaker 14: you guys were talking about the last couple of minutes. 658 00:29:34,680 --> 00:29:37,000 Speaker 14: It can't be state actors alone, and it can't be 659 00:29:37,040 --> 00:29:38,040 Speaker 14: private companies alone. 660 00:29:38,080 --> 00:29:38,880 Speaker 7: So the fact that. 661 00:29:38,840 --> 00:29:42,080 Speaker 14: There's real dialogue building, I think that's a huge plus. 662 00:29:42,120 --> 00:29:44,840 Speaker 14: And on the European question, sort of interesting comment too, 663 00:29:44,880 --> 00:29:48,360 Speaker 14: because I think there may be some catalysts to some 664 00:29:48,560 --> 00:29:51,120 Speaker 14: now reflection. You know, there were the droggy papers and 665 00:29:51,160 --> 00:29:52,760 Speaker 14: people read it, they kind of read it, but there 666 00:29:52,800 --> 00:29:57,160 Speaker 14: was nothing capital markets, union, banking union, kind of European 667 00:29:57,440 --> 00:30:01,040 Speaker 14: sort of self strength. Maybe this is a cattle some 668 00:30:01,080 --> 00:30:03,480 Speaker 14: real conversations. So in that sense, I think it's positive too. 669 00:30:03,560 --> 00:30:07,160 Speaker 3: Are you hearing about actual business activities stemming from that 670 00:30:07,240 --> 00:30:09,120 Speaker 3: change in tone in Europe or is it just sort 671 00:30:09,120 --> 00:30:10,320 Speaker 3: of a conversation at this point. 672 00:30:10,360 --> 00:30:13,160 Speaker 14: Well, I mean we're like, what twenty five basis points 673 00:30:13,200 --> 00:30:16,960 Speaker 14: into the new administration, right, We're just getting going. But yeah, 674 00:30:17,120 --> 00:30:19,240 Speaker 14: hell of a lot more than you would expected two 675 00:30:19,320 --> 00:30:22,320 Speaker 14: or three weeks ago. One thing, it's you know, it's constructive. 676 00:30:22,480 --> 00:30:24,320 Speaker 3: One thing in your earnings that really stood out as 677 00:30:24,320 --> 00:30:26,840 Speaker 3: a stock trading revenues that really boomed. And I'm wondering 678 00:30:27,840 --> 00:30:30,680 Speaker 3: this has been a discussion about how risk on things 679 00:30:30,720 --> 00:30:33,760 Speaker 3: have been feeling certainly at Davos. But through the last 680 00:30:33,960 --> 00:30:36,720 Speaker 3: couple of months, do you see that waning at all 681 00:30:36,920 --> 00:30:39,400 Speaker 3: or is it just continuing to amp up in terms 682 00:30:39,400 --> 00:30:40,200 Speaker 3: of risk taking. 683 00:30:40,440 --> 00:30:43,400 Speaker 14: Well, you know, when you become a CEO, one thing 684 00:30:43,480 --> 00:30:46,080 Speaker 14: is for sure. All of your children are equally beautiful. 685 00:30:46,320 --> 00:30:50,120 Speaker 14: But our equities business is one of our more beautiful 686 00:30:50,160 --> 00:30:53,280 Speaker 14: children that I adore. And yes, they put up some 687 00:30:53,360 --> 00:30:55,520 Speaker 14: great numbers, and I think that is a reflection on 688 00:30:55,600 --> 00:30:58,280 Speaker 14: just the quality of the underlying franchise, but also a 689 00:30:58,360 --> 00:31:00,920 Speaker 14: sense that people want to allocate to a little more risk, 690 00:31:01,120 --> 00:31:03,320 Speaker 14: but importantly they kind of want to get beyond the 691 00:31:03,320 --> 00:31:05,160 Speaker 14: index level. You guys talk about this a lot, right, 692 00:31:05,200 --> 00:31:08,560 Speaker 14: sort of index level equity risk premium relative to sectors. 693 00:31:08,800 --> 00:31:10,880 Speaker 14: And I think one of the positives here is we're 694 00:31:10,880 --> 00:31:13,760 Speaker 14: talking about deregulation the energy space and energy transition. We're 695 00:31:13,760 --> 00:31:16,360 Speaker 14: talking about the financial services space, and yes, you need 696 00:31:16,400 --> 00:31:18,240 Speaker 14: to own the six because they are money machines and 697 00:31:18,280 --> 00:31:20,360 Speaker 14: great companies, but how about the rest of the four 698 00:31:20,440 --> 00:31:22,320 Speaker 14: hundred and ninety three four hundred and ninety four. And 699 00:31:22,360 --> 00:31:25,040 Speaker 14: I think some of that dispersion getting kind of allocated 700 00:31:25,040 --> 00:31:27,720 Speaker 14: across teams and sectors and around the world. I think 701 00:31:27,760 --> 00:31:29,719 Speaker 14: that's a multi year trend. I think we're early on 702 00:31:29,720 --> 00:31:30,000 Speaker 14: that it. 703 00:31:30,040 --> 00:31:31,960 Speaker 2: Concentration is certainly a risk factor that a lot of 704 00:31:31,960 --> 00:31:34,920 Speaker 2: people are considering. Another one is the deficit and the 705 00:31:35,080 --> 00:31:37,840 Speaker 2: cost of interest payments for the US government, for you, 706 00:31:37,920 --> 00:31:40,240 Speaker 2: for the capital market business. Is that a risk more 707 00:31:40,320 --> 00:31:42,560 Speaker 2: generally that you've take even the team of focused on. 708 00:31:42,920 --> 00:31:45,720 Speaker 14: Yeah, you've been talking about that a lot, and I'm sure, 709 00:31:45,800 --> 00:31:48,280 Speaker 14: and I think it's important because if you don't talk 710 00:31:48,320 --> 00:31:50,160 Speaker 14: about it, it sort of says, you know, there's no 711 00:31:50,200 --> 00:31:52,320 Speaker 14: canary in the coal mine, right. But I do think 712 00:31:52,360 --> 00:31:54,920 Speaker 14: there is the fact that there has been so much 713 00:31:54,920 --> 00:31:57,560 Speaker 14: attention given to this, and you have folks like Best 714 00:31:57,640 --> 00:32:00,840 Speaker 14: and coming in who know the bond market. It has 715 00:32:00,920 --> 00:32:02,920 Speaker 14: a sort of reaffirmation that we got to look at 716 00:32:02,920 --> 00:32:05,320 Speaker 14: on that Simpson balls, you know, here we are these 717 00:32:05,400 --> 00:32:08,440 Speaker 14: years later that hasn't even said, you know, term premium 718 00:32:08,520 --> 00:32:12,080 Speaker 14: is still pretty narrow, so like we haven't seen the 719 00:32:12,200 --> 00:32:15,640 Speaker 14: long bond really move. So there's an underlying confidence. I 720 00:32:15,680 --> 00:32:18,400 Speaker 14: think the question is what kind of growth can we generate? 721 00:32:18,560 --> 00:32:22,000 Speaker 14: I think so the conversation that one would have is 722 00:32:22,160 --> 00:32:25,080 Speaker 14: which comes first, sort of the potential inflationary effect of 723 00:32:25,160 --> 00:32:28,719 Speaker 14: tars or the positive deregulatory effect. And I think that's 724 00:32:28,760 --> 00:32:30,240 Speaker 14: going to be one of the things we know is 725 00:32:30,280 --> 00:32:33,479 Speaker 14: that there's going to be an ongoing dialectic. You know 726 00:32:34,000 --> 00:32:37,360 Speaker 14: which policy function can be transmitted more quickly than the other, 727 00:32:37,560 --> 00:32:41,640 Speaker 14: and I think that pivoting and transitioning, and that's as important. 728 00:32:41,680 --> 00:32:44,360 Speaker 2: Do you think it holds back activity that degree of 729 00:32:44,440 --> 00:32:49,800 Speaker 2: uncertainty given how confident everyone is, and Lisa, especially me too, 730 00:32:50,160 --> 00:32:52,600 Speaker 2: we get nervous when everyone in Davos gets ready. 731 00:32:52,520 --> 00:32:54,000 Speaker 14: Yes, contra indicator. 732 00:32:54,080 --> 00:32:55,000 Speaker 7: Does it hold. 733 00:32:54,840 --> 00:32:58,080 Speaker 2: Back activity without having the clarity on what these changes 734 00:32:58,120 --> 00:32:58,840 Speaker 2: are going to look like? 735 00:32:59,280 --> 00:33:05,360 Speaker 14: I think part of the dilemma is that the vernacular 736 00:33:05,720 --> 00:33:10,040 Speaker 14: of whether we're really moving with animal spirits as whether 737 00:33:10,080 --> 00:33:12,080 Speaker 14: we see a bunch of M and A prints like 738 00:33:12,120 --> 00:33:14,280 Speaker 14: where are those m and announcements? And the reality is, 739 00:33:14,320 --> 00:33:15,920 Speaker 14: over the last number of years, we've had I think 740 00:33:15,920 --> 00:33:18,960 Speaker 14: two major uncertainties, right the end of financial oppressions zero 741 00:33:19,000 --> 00:33:21,320 Speaker 14: and zero. Is that finally passes and do we kind 742 00:33:21,320 --> 00:33:22,880 Speaker 14: of know where rates are going to be and we 743 00:33:22,880 --> 00:33:25,360 Speaker 14: can focus on the detail of whether there'll be you know, 744 00:33:25,400 --> 00:33:27,080 Speaker 14: one or two moves or none at all, But at 745 00:33:27,160 --> 00:33:30,120 Speaker 14: least we generally know that for the next period of time, 746 00:33:30,520 --> 00:33:32,920 Speaker 14: the US for history rate is somewhere in the mid forest, 747 00:33:33,120 --> 00:33:35,520 Speaker 14: and then you can apply discount rates for country risk 748 00:33:35,600 --> 00:33:36,600 Speaker 14: and the company and the rest of it. 749 00:33:36,800 --> 00:33:39,400 Speaker 11: So that's kind of pass us. So that's an uncertainty that's. 750 00:33:39,280 --> 00:33:41,360 Speaker 14: Taken off the table if you're a CFO and you're 751 00:33:41,400 --> 00:33:43,640 Speaker 14: a board room. The second set of uncertainty has been 752 00:33:43,640 --> 00:33:45,160 Speaker 14: around sort of the end of the end of history, 753 00:33:45,160 --> 00:33:47,440 Speaker 14: which is the resumption of nation states and the like. 754 00:33:47,560 --> 00:33:49,480 Speaker 14: And one could argue, well, there's a lot of uncertainty 755 00:33:49,480 --> 00:33:51,760 Speaker 14: in the world. I would argue the combination we're having 756 00:33:51,880 --> 00:33:54,600 Speaker 14: some sense of a rate framework and having some sense 757 00:33:54,600 --> 00:33:58,400 Speaker 14: that things are gonna happen in the US, in Europe, 758 00:33:58,560 --> 00:34:02,120 Speaker 14: around the world. I think it galvanizes the corporate community. 759 00:34:02,120 --> 00:34:04,400 Speaker 14: And so the question is how much does the market 760 00:34:04,400 --> 00:34:06,640 Speaker 14: discount of how fast will that be? And I do 761 00:34:06,680 --> 00:34:09,480 Speaker 14: think important catalysts to this will be there are the 762 00:34:09,520 --> 00:34:12,280 Speaker 14: better part of nineteen hundred companies in the private equity 763 00:34:12,320 --> 00:34:16,160 Speaker 14: space that have a billion of aggregate value five years 764 00:34:16,200 --> 00:34:19,120 Speaker 14: of life on average. Those companies need to move so 765 00:34:19,200 --> 00:34:22,120 Speaker 14: at some level I couldn't tell you exactly the pacing 766 00:34:22,160 --> 00:34:24,680 Speaker 14: of that activity. But we've been below trend line in 767 00:34:24,719 --> 00:34:26,080 Speaker 14: the M and A market. We talked a couple of 768 00:34:26,120 --> 00:34:27,839 Speaker 14: years from now. I think we'll be a trend line 769 00:34:27,880 --> 00:34:28,880 Speaker 14: or higher. I'm pretty confident. 770 00:34:28,920 --> 00:34:29,920 Speaker 4: I think it's going to be M and A. I 771 00:34:29,960 --> 00:34:32,080 Speaker 4: think it's going to be IPOs and everything. 772 00:34:32,600 --> 00:34:34,440 Speaker 14: I think we've been talking about. You've talked about so 773 00:34:34,520 --> 00:34:37,399 Speaker 14: much the sort of paucity of investable names, especially when 774 00:34:37,400 --> 00:34:40,279 Speaker 14: you get past the Big seven companies and they're sort 775 00:34:40,320 --> 00:34:44,520 Speaker 14: of small cap orphans without research. I think there's a Yes, 776 00:34:44,560 --> 00:34:46,840 Speaker 14: it can be painful starbox for a young company to 777 00:34:46,880 --> 00:34:50,480 Speaker 14: be public, but you get enduring long term value from 778 00:34:50,640 --> 00:34:54,200 Speaker 14: shareholders that actually can also add some value, and you 779 00:34:54,239 --> 00:34:57,120 Speaker 14: can use that currency to make other acquisitions. I think 780 00:34:57,120 --> 00:35:00,359 Speaker 14: the IPO product is alive well, and I think only 781 00:35:00,520 --> 00:35:03,720 Speaker 14: what's happened as a sort of financialization of the markets 782 00:35:03,800 --> 00:35:07,200 Speaker 14: is the intersection of private and public that's come of age. 783 00:35:07,239 --> 00:35:09,880 Speaker 14: So maybe you don't go public in the classic Nasdaq 784 00:35:10,000 --> 00:35:12,759 Speaker 14: and New York IPO at the first. Maybe you do 785 00:35:12,880 --> 00:35:15,200 Speaker 14: some hybrid capital for a while, and then you go 786 00:35:15,280 --> 00:35:18,240 Speaker 14: public alla over a full capital structure. 787 00:35:18,280 --> 00:35:21,240 Speaker 3: One area that you've brought in one of your babies 788 00:35:21,239 --> 00:35:21,920 Speaker 3: that's very beautiful. 789 00:35:21,960 --> 00:35:24,480 Speaker 4: That I'm sure you talk about is your wealth management unit. 790 00:35:24,520 --> 00:35:26,000 Speaker 11: And I'm serious, it's a big baby. 791 00:35:26,040 --> 00:35:27,680 Speaker 4: It's a big baby, big beautiful baby. 792 00:35:28,280 --> 00:35:30,880 Speaker 3: One of the drivers of revenues for a very long time. 793 00:35:31,520 --> 00:35:35,560 Speaker 3: What's been the challenge in accumulating assets in the wealth 794 00:35:35,560 --> 00:35:38,640 Speaker 3: management growing assets to degree that you really have wanted to? 795 00:35:39,120 --> 00:35:42,759 Speaker 14: Well, you have a massive denominator, right, And I think 796 00:35:43,160 --> 00:35:47,120 Speaker 14: what's happened is we were now the better part of 797 00:35:47,600 --> 00:35:51,120 Speaker 14: a trillion of au M between wealth and investment manager. 798 00:35:51,120 --> 00:35:53,239 Speaker 14: And if you look at sort of point to point, 799 00:35:53,400 --> 00:35:57,200 Speaker 14: what have assets done? And obviously markets higher markets, health, 800 00:35:57,360 --> 00:35:59,520 Speaker 14: the assets in one year went up by a trillion 801 00:35:59,560 --> 00:36:03,080 Speaker 14: three So people say, okay, you raised two fifty Well 802 00:36:03,440 --> 00:36:06,080 Speaker 14: that's a huge number. And for me at LEASTA, what's 803 00:36:06,120 --> 00:36:08,839 Speaker 14: really important is how is our funnel working? Like think 804 00:36:08,880 --> 00:36:11,080 Speaker 14: about our wealth business is sort of having three parts 805 00:36:11,280 --> 00:36:12,000 Speaker 14: self directed e. 806 00:36:12,080 --> 00:36:12,279 Speaker 11: Trade. 807 00:36:12,280 --> 00:36:15,200 Speaker 14: We're seeing transaction activity really kicking up. That's clearly a 808 00:36:15,200 --> 00:36:17,880 Speaker 14: positive signal part of what you're asking about. In the 809 00:36:18,000 --> 00:36:21,120 Speaker 14: sort of pure equity space, we have this workplace business. 810 00:36:21,120 --> 00:36:23,000 Speaker 14: I want your stock plan business because then I can 811 00:36:23,040 --> 00:36:25,960 Speaker 14: do factory floor to CEO and then the fee based 812 00:36:25,960 --> 00:36:29,520 Speaker 14: advisor fifty based points per annum, and the fee based 813 00:36:29,520 --> 00:36:32,400 Speaker 14: advisory growth is quite impressive, quite impressive, and it's going 814 00:36:32,440 --> 00:36:34,920 Speaker 14: to continue for years to come, especially if clients need 815 00:36:35,000 --> 00:36:36,480 Speaker 14: to allocate across sectors. 816 00:36:36,640 --> 00:36:39,440 Speaker 3: You've made a lot of acquisitions in the past, any 817 00:36:39,640 --> 00:36:42,960 Speaker 3: in the pipeline planning any further types of tie ups yourself. 818 00:36:43,280 --> 00:36:46,520 Speaker 14: You know, it's interesting we see stuff, but I really 819 00:36:46,600 --> 00:36:49,040 Speaker 14: love the durable growth organically that we have in the 820 00:36:49,080 --> 00:36:51,640 Speaker 14: two major major business in the investment bank and the 821 00:36:51,640 --> 00:36:54,440 Speaker 14: wealth and investment manager. But over time we'll continue to 822 00:36:54,480 --> 00:36:56,240 Speaker 14: look at stuff as we a Cree Capital. 823 00:36:56,440 --> 00:36:58,719 Speaker 2: You've got one minute left on the places in Have 824 00:36:58,760 --> 00:36:59,920 Speaker 2: you spoken to the president? 825 00:37:01,160 --> 00:37:03,240 Speaker 7: I have not, not recently. 826 00:37:03,200 --> 00:37:05,600 Speaker 2: Right if you have the opportunity too, and Davis will 827 00:37:05,640 --> 00:37:08,040 Speaker 2: today to throw a question at the incoming president the comment, 828 00:37:08,080 --> 00:37:09,960 Speaker 2: President Donald Trump, what would you ask him? 829 00:37:10,160 --> 00:37:13,400 Speaker 14: I like the I like the quality of the questioners 830 00:37:13,520 --> 00:37:14,879 Speaker 14: you have I do. 831 00:37:15,080 --> 00:37:16,120 Speaker 11: I like the quality of the question. 832 00:37:16,239 --> 00:37:18,080 Speaker 2: And I was in the mix and you had one 833 00:37:18,160 --> 00:37:18,799 Speaker 2: what would that question? 834 00:37:20,840 --> 00:37:23,840 Speaker 14: I think the question I would ask is one where 835 00:37:23,920 --> 00:37:26,040 Speaker 14: it would give him the opportunity to sort of speak 836 00:37:26,120 --> 00:37:29,880 Speaker 14: to the possibility that he's thinking about a lot of 837 00:37:29,920 --> 00:37:33,080 Speaker 14: different possibilities on a lot of different issues, something along 838 00:37:33,080 --> 00:37:36,480 Speaker 14: the lines of are you open to taking idea flow 839 00:37:36,760 --> 00:37:39,719 Speaker 14: around a whole bunch of different spaces and give examples. 840 00:37:39,880 --> 00:37:41,759 Speaker 14: And I think my guess is the answer that he 841 00:37:41,800 --> 00:37:43,680 Speaker 14: would give is yes, and I'll give. 842 00:37:43,520 --> 00:37:44,200 Speaker 11: You examples of that. 843 00:37:44,239 --> 00:37:46,640 Speaker 14: And the reason that's important is because I think we're 844 00:37:46,719 --> 00:37:49,279 Speaker 14: so early in this administration, people are trying to sort 845 00:37:49,320 --> 00:37:53,080 Speaker 14: of weigh how much is tactical versus how much is baked. 846 00:37:53,239 --> 00:37:55,640 Speaker 14: I think there's a lot of discussion and people it 847 00:37:55,640 --> 00:37:57,960 Speaker 14: wouldn't be so much for him, but people understanding this 848 00:37:58,239 --> 00:38:01,319 Speaker 14: is a real conversation taking place on a whole bunch 849 00:38:01,320 --> 00:38:03,560 Speaker 14: of important issues and we're only five days in. I 850 00:38:03,560 --> 00:38:06,880 Speaker 14: think people hearing that will give confidence that we are 851 00:38:06,880 --> 00:38:09,600 Speaker 14: in the early stages of the dialectic and there's more 852 00:38:09,600 --> 00:38:09,879 Speaker 14: to come. 853 00:38:10,000 --> 00:38:12,480 Speaker 2: Ted, I appreciate your time, Thanks us for having you guys, 854 00:38:12,560 --> 00:38:13,200 Speaker 2: Thank you sir. 855 00:38:13,520 --> 00:38:14,520 Speaker 7: Safe travels back to New. 856 00:38:14,520 --> 00:38:16,120 Speaker 14: York now, Avid listener and watcher, We. 857 00:38:16,120 --> 00:38:16,960 Speaker 7: We appreciate that. 858 00:38:16,960 --> 00:38:18,319 Speaker 4: Than you got to come on again soon. 859 00:38:18,680 --> 00:38:22,080 Speaker 2: Ted Pick, the chairman of CEO of Morgan Stanley. This 860 00:38:22,320 --> 00:38:25,640 Speaker 2: is the Bloomberg Surveillance podcast, bringing you the best in 861 00:38:25,719 --> 00:38:29,120 Speaker 2: markets economics, angio politics. You can watch the show live 862 00:38:29,200 --> 00:38:32,200 Speaker 2: on Bloomberg TV weekday mornings from six am to nine 863 00:38:32,280 --> 00:38:36,000 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify, or 864 00:38:36,040 --> 00:38:38,640 Speaker 2: anywhere else you listen, and as always, on the Bloomberg 865 00:38:38,719 --> 00:38:40,600 Speaker 2: Terminal and the Bloomberg Business Amp.