1 00:00:02,279 --> 00:00:08,320 Speaker 1: YEA broadcasting live to New York, Bloomberg eleven, Rio to Washington, 2 00:00:08,400 --> 00:00:13,400 Speaker 1: d C, Bloomberg to Boston, Bloomberg dwell Under to San Francisco, 3 00:00:13,520 --> 00:00:17,799 Speaker 1: Bloomberg nine to the country suis Exam General one nine team, 4 00:00:17,880 --> 00:00:20,880 Speaker 1: and around the globe the Bloomberg Radio Plus app and 5 00:00:20,920 --> 00:00:25,280 Speaker 1: Bloomberg dot Com. This is taking stock. I'm Kafeene Hayes. 6 00:00:25,360 --> 00:00:29,600 Speaker 1: Along with pim Fox. Japan has an aging population, a 7 00:00:29,680 --> 00:00:33,640 Speaker 1: gigantic budget deficit, deflation and negative interest rates. Why would 8 00:00:33,640 --> 00:00:37,680 Speaker 1: a former ambassador Japan then be starting a fund to 9 00:00:37,720 --> 00:00:42,360 Speaker 1: help American entrepreneurs girl their businesses in Japan? PM, We're 10 00:00:42,400 --> 00:00:44,880 Speaker 1: gonna find out. Yes, we're gonna be speaking with John 11 00:00:44,920 --> 00:00:47,400 Speaker 1: Rousey is the founding partner of the venture capital firm 12 00:00:47,560 --> 00:00:51,400 Speaker 1: Geodesic Capital, and as you mentioned, a former US ambassador 13 00:00:51,600 --> 00:00:54,120 Speaker 1: to Japan. Right now, let's go to Charlie Pellam in 14 00:00:54,120 --> 00:00:56,720 Speaker 1: the Bloomberg news room for a Bloomberg Business flatman. I 15 00:00:56,760 --> 00:00:59,800 Speaker 1: thank you, pim Fox, Thank you, Kathleen Hayes. The Dow Yes, 16 00:00:59,840 --> 00:01:03,440 Speaker 1: I'm be Nazdak. All declining with stocks have paired a 17 00:01:03,560 --> 00:01:08,000 Speaker 1: decline banks and energy producers trimming losses. SMP five hundred index, 18 00:01:08,080 --> 00:01:11,720 Speaker 1: slipping from a ten month high amid speculation equities may 19 00:01:11,720 --> 00:01:15,479 Speaker 1: have run too far, too fast given the lackluster prospects 20 00:01:15,480 --> 00:01:18,080 Speaker 1: for global growth. On top of that, there is the 21 00:01:18,360 --> 00:01:21,640 Speaker 1: Brexit vote, the US political conventions, and the looming of 22 00:01:21,720 --> 00:01:25,560 Speaker 1: Federal Reserve meeting. Josh Shapiro is chief US economist at 23 00:01:25,560 --> 00:01:28,520 Speaker 1: Maria Fiorini Ramarans. I think that it's a it's a 24 00:01:28,600 --> 00:01:31,000 Speaker 1: dangerous thing that's been going on with central banks have 25 00:01:31,080 --> 00:01:34,840 Speaker 1: been doing there. They're they're they're causing distortions and financial 26 00:01:34,840 --> 00:01:38,440 Speaker 1: markets distortions and behavior. They've done everything they pretty much 27 00:01:38,480 --> 00:01:41,000 Speaker 1: can do at this stage with the size of the 28 00:01:41,200 --> 00:01:43,280 Speaker 1: deficits that we have in the amount of debt that's out, 29 00:01:43,319 --> 00:01:47,640 Speaker 1: their fiscal policies kind of handstrung and and and I 30 00:01:47,680 --> 00:01:49,840 Speaker 1: think we're limping along. And when you're in that with 31 00:01:49,920 --> 00:01:53,240 Speaker 1: that type of backdrop, you're downside risks far out where 32 00:01:53,240 --> 00:01:57,000 Speaker 1: you're upside risks. Bill Gross, Bill Gross, manager of the 33 00:01:57,040 --> 00:02:00,840 Speaker 1: one point four billion dollar Janus Global Unconstrain Bond Fund, 34 00:02:00,840 --> 00:02:04,280 Speaker 1: warning central bank policies that pushed trillions of dollars into 35 00:02:04,280 --> 00:02:08,959 Speaker 1: bonds with negative interest rates will eventually backfire violently grows. 36 00:02:09,000 --> 00:02:11,960 Speaker 1: Compares it to a super nova, which is a star 37 00:02:12,280 --> 00:02:14,680 Speaker 1: at the end of its life, and a person familiar 38 00:02:14,720 --> 00:02:17,640 Speaker 1: with the matter, says billionaire investor George Soros has become 39 00:02:17,680 --> 00:02:20,880 Speaker 1: more involved in trading at his family office, concerned about 40 00:02:20,880 --> 00:02:22,880 Speaker 1: the outlook for the global economy and the risk that 41 00:02:23,080 --> 00:02:27,800 Speaker 1: large market ships maybe at hand SMP five hundred index 42 00:02:27,919 --> 00:02:30,320 Speaker 1: down five, a drop of three tenths of one percent, 43 00:02:30,400 --> 00:02:33,920 Speaker 1: Gold up ten to twelve seventy two, eight tenths of 44 00:02:33,919 --> 00:02:36,799 Speaker 1: one percent ten, You're up seven thirty seconds. Zeal there 45 00:02:36,880 --> 00:02:40,760 Speaker 1: one point six seven percent to thirty two on Wall Street. Now, 46 00:02:40,840 --> 00:02:43,400 Speaker 1: let's take a look at other news from around the world. 47 00:02:45,000 --> 00:02:48,160 Speaker 1: Thank you, Charlie from the Bloomberg newsroom. I'm Scarlet Foom. 48 00:02:48,240 --> 00:02:51,720 Speaker 1: President Obama has formally endorsed Hillary Clinton to succeed him 49 00:02:51,800 --> 00:02:53,840 Speaker 1: as next to US president. Today, for more than a 50 00:02:53,919 --> 00:02:57,600 Speaker 1: year now, across thousands of miles in all fifty states, 51 00:02:57,880 --> 00:03:00,160 Speaker 1: tens of millions of Americans have made their boys has 52 00:03:00,200 --> 00:03:04,320 Speaker 1: heard today. I just want to add mine. I want 53 00:03:04,320 --> 00:03:08,040 Speaker 1: to congratulate Hillary Clinton on making history as the presumptive 54 00:03:08,120 --> 00:03:12,040 Speaker 1: Democratic nominee for president of the United States. The President 55 00:03:12,080 --> 00:03:15,040 Speaker 1: offered his endorsement in an online video after meeting at 56 00:03:15,040 --> 00:03:18,280 Speaker 1: the White House earlier today with Clinton's Democratic primary rival, 57 00:03:18,440 --> 00:03:22,440 Speaker 1: Vermont Senator Bernie Sanders. Israel is deploying additional battalions to 58 00:03:22,440 --> 00:03:25,680 Speaker 1: the West Bank and restricting travel for Palestinians during Ramadon 59 00:03:26,040 --> 00:03:28,639 Speaker 1: in the wake of yesterday's shooting in Tel Aviv, two 60 00:03:28,680 --> 00:03:32,240 Speaker 1: Palestinians gunned down four Israeli's and wounded at least five others. 61 00:03:32,520 --> 00:03:42,320 Speaker 1: Here's Prime Minister Benjamin net Yahoo murder. The shooters cousins 62 00:03:42,320 --> 00:03:44,640 Speaker 1: from the West Bank are in custody. A coalition of 63 00:03:44,680 --> 00:03:48,000 Speaker 1: twenty one states is suing Delaware over policies involving unclaimed 64 00:03:48,040 --> 00:03:51,600 Speaker 1: official checks. Texas Attorney General Ken Paxton says, it's a 65 00:03:51,600 --> 00:03:54,880 Speaker 1: clear case Arkansas and Texas are co leading this coalition 66 00:03:54,880 --> 00:03:57,240 Speaker 1: of states to get our money back, and we are 67 00:03:57,320 --> 00:04:01,200 Speaker 1: urging the Supreme Court to enforce federal pax and alleges 68 00:04:01,240 --> 00:04:03,720 Speaker 1: Delaware has been taking the money for unclaimed checks written 69 00:04:03,720 --> 00:04:07,000 Speaker 1: by financial institutions based in Delaware even if those checks 70 00:04:07,000 --> 00:04:09,800 Speaker 1: weren't ordered. Their workers in Times Square are laying down 71 00:04:09,800 --> 00:04:12,840 Speaker 1: paint to mark new boundaries for pedestrians and street performers. 72 00:04:13,200 --> 00:04:16,240 Speaker 1: The new color coded system will regulate where characters can 73 00:04:16,279 --> 00:04:19,279 Speaker 1: interact with tourists. The zones started at West forty seven 74 00:04:19,360 --> 00:04:22,159 Speaker 1: Street and run down to West forty two Street. Global 75 00:04:22,200 --> 00:04:25,160 Speaker 1: News twenty four hours a day, powered by our journalists 76 00:04:25,160 --> 00:04:27,960 Speaker 1: and more than one news burreaus around the world. From 77 00:04:28,000 --> 00:04:31,400 Speaker 1: the Bloomberg News Room, I'm Scarlet Fou and we thank 78 00:04:31,440 --> 00:04:36,480 Speaker 1: you and again recapping stocks lower SMP down five a 79 00:04:36,600 --> 00:04:39,880 Speaker 1: drop of three tenths of one percent. I'm Charlie Peloton. 80 00:04:40,000 --> 00:04:44,680 Speaker 1: That's a Bloomberg Business flash. You're listening to Taking Stock 81 00:04:44,760 --> 00:04:48,400 Speaker 1: with Kathleen Hayes and Pimp Box on Bloomberg Radio. If 82 00:04:48,400 --> 00:04:50,160 Speaker 1: there's a country you're worried about when it comes to 83 00:04:50,200 --> 00:04:52,000 Speaker 1: the economy, at least if you're looking at the direction 84 00:04:52,040 --> 00:04:54,640 Speaker 1: of bondfield, you'd have to say Japan is on that list. 85 00:04:54,720 --> 00:04:58,279 Speaker 1: After all, the j GB, the benchmark tenure Japanese government 86 00:04:58,279 --> 00:05:02,440 Speaker 1: bond is now trade at a minus zero point one 87 00:05:02,640 --> 00:05:06,479 Speaker 1: four percent. That's not stopping John Ruth He's a founding 88 00:05:06,600 --> 00:05:10,800 Speaker 1: partner at Geodesic Capital, former US Ambassador Japan from two 89 00:05:10,800 --> 00:05:14,720 Speaker 1: thousand nine to two two thousand thirteen. He has launched 90 00:05:14,760 --> 00:05:17,920 Speaker 1: a fund more than three hundred million dollars to help 91 00:05:17,960 --> 00:05:22,599 Speaker 1: American growth stage companies entrepreneurs expand into Japan and other 92 00:05:22,600 --> 00:05:24,480 Speaker 1: countries in the region. He's here to tell us all 93 00:05:24,480 --> 00:05:27,320 Speaker 1: about it. John, Welcome to the show. Thanks for having 94 00:05:27,320 --> 00:05:30,000 Speaker 1: me delied to be here. So first tell us about 95 00:05:30,080 --> 00:05:32,520 Speaker 1: the fund. What are you doing, what kind of companies 96 00:05:32,600 --> 00:05:36,880 Speaker 1: you're funding? Well, geodes A Capital, as you said, we've 97 00:05:36,960 --> 00:05:41,880 Speaker 1: raised over three hundred million dollars. Were investing in later stage, 98 00:05:41,880 --> 00:05:45,039 Speaker 1: growth stage companies here in the Silicon Valley and helping 99 00:05:45,080 --> 00:05:48,360 Speaker 1: them go to Japan. Now, what we have found is 100 00:05:48,440 --> 00:05:53,080 Speaker 1: that companies here are going private, staying private for a 101 00:05:53,160 --> 00:05:57,680 Speaker 1: longer period of time, and in the later stages of 102 00:05:57,680 --> 00:06:01,520 Speaker 1: of their growth, they begin to think about going global. 103 00:06:01,560 --> 00:06:05,240 Speaker 1: And obviously the Asia market is incredibly important, and we 104 00:06:05,400 --> 00:06:09,000 Speaker 1: believe um and here and from the companies here that 105 00:06:09,120 --> 00:06:14,919 Speaker 1: Japan is a very important gateway into the Asia economy. Ambassador, 106 00:06:15,000 --> 00:06:16,560 Speaker 1: I was wondering if you could just give people a 107 00:06:16,600 --> 00:06:18,760 Speaker 1: little bit of your background, because I know that you 108 00:06:18,920 --> 00:06:23,000 Speaker 1: in many of your legal capacities before your ambassadorship that 109 00:06:23,080 --> 00:06:26,240 Speaker 1: you helped to represent companies at the time may have 110 00:06:26,320 --> 00:06:30,560 Speaker 1: been unknown to many Americans, such as Google and Pixar. 111 00:06:31,160 --> 00:06:33,200 Speaker 1: With your work with Wilson san Cini good Rich in 112 00:06:33,320 --> 00:06:38,000 Speaker 1: Rosani prior to go into Japan twenty five years here 113 00:06:38,040 --> 00:06:41,840 Speaker 1: in the Silicon Valley where I'm back um and as 114 00:06:41,880 --> 00:06:44,880 Speaker 1: you said, we represented at Wilson Sancini, which is a 115 00:06:44,960 --> 00:06:49,760 Speaker 1: leading tech UH law firm in the country. We represented 116 00:06:49,839 --> 00:06:53,200 Speaker 1: companies all the way from their infancy like Apple and 117 00:06:53,279 --> 00:06:59,200 Speaker 1: Google until many of them obviously became multi billion dollar corporations. 118 00:06:59,560 --> 00:07:02,440 Speaker 1: And then when I went to Japan from two thousand 119 00:07:02,560 --> 00:07:05,400 Speaker 1: nine to two thousand thirteen and the honor of being 120 00:07:05,400 --> 00:07:09,400 Speaker 1: the US ambassador there, I heard an incredible amount of 121 00:07:09,480 --> 00:07:14,520 Speaker 1: interest in UH in Silicon Valley by the Japanese and 122 00:07:14,600 --> 00:07:17,640 Speaker 1: so Prime Minister Abe, for example, came here a year 123 00:07:17,680 --> 00:07:20,720 Speaker 1: ago when he talked about building a bridge between the 124 00:07:20,840 --> 00:07:25,000 Speaker 1: valley and Japan, and Geodesic Capital is helping to build 125 00:07:25,160 --> 00:07:29,239 Speaker 1: that bridge between between Silicon Valley and Japan. Certainly helps 126 00:07:29,280 --> 00:07:33,560 Speaker 1: to have a heavyweight partner in this inaugural fund. You're 127 00:07:33,680 --> 00:07:38,920 Speaker 1: backed by anchor investor and co founder Mitsubishi. Gensic Capitals 128 00:07:39,000 --> 00:07:43,320 Speaker 1: already made successful investments. Of course, one everybody would recognize. 129 00:07:43,360 --> 00:07:45,840 Speaker 1: I think it's Snapchat that was a good one to 130 00:07:45,920 --> 00:07:49,040 Speaker 1: have gotten in on are there particular kinds of technology 131 00:07:49,160 --> 00:07:52,720 Speaker 1: that you're going to be looking for these late stage 132 00:07:53,320 --> 00:07:56,400 Speaker 1: companies is and how do the Japanese field don't they 133 00:07:56,480 --> 00:07:58,240 Speaker 1: have their own startups or do they feel this is 134 00:07:58,280 --> 00:08:02,680 Speaker 1: gonna seed activity and their own sort of homegrown startups 135 00:08:02,840 --> 00:08:06,600 Speaker 1: by having Silicon Valley come to them. We're looking at 136 00:08:07,520 --> 00:08:11,480 Speaker 1: both enterprise companies and consumer companies. So for example, you 137 00:08:11,560 --> 00:08:15,080 Speaker 1: mentioned Snapchat in a social media area, but we're looking 138 00:08:15,080 --> 00:08:19,320 Speaker 1: at areas like security. Taneum as a company that we've 139 00:08:19,360 --> 00:08:22,840 Speaker 1: invested in that the Japanese have a significant interest in 140 00:08:23,000 --> 00:08:28,800 Speaker 1: cybersecurity as an example, are investors there. I've already talked 141 00:08:28,840 --> 00:08:31,640 Speaker 1: about some of the benefits of going into the third 142 00:08:31,680 --> 00:08:34,800 Speaker 1: biggest economy in the world. But for our investors, they 143 00:08:34,800 --> 00:08:38,160 Speaker 1: see the opportunity to have this window into the Valley, 144 00:08:38,240 --> 00:08:41,760 Speaker 1: into the disruptive businesses that are going on here, and 145 00:08:41,800 --> 00:08:46,480 Speaker 1: they also obviously are looking for returns, but also kind 146 00:08:46,520 --> 00:08:50,440 Speaker 1: of a window into the Silicon Valley ecosystem, and the 147 00:08:50,559 --> 00:08:56,319 Speaker 1: benefit to them is not only returns, but potential investment opportunities, 148 00:08:56,360 --> 00:09:01,120 Speaker 1: potential mergers and acquisitions, uh potential partner ships. A good 149 00:09:01,120 --> 00:09:05,880 Speaker 1: example that which is just recently announced is the Toyota 150 00:09:06,080 --> 00:09:09,920 Speaker 1: Uber deal. On the Silicon Valley side, you have this 151 00:09:10,000 --> 00:09:14,520 Speaker 1: cutting edge shared economy technology, and on the Japanese side, 152 00:09:14,600 --> 00:09:18,480 Speaker 1: Toyota you have the biggest car manufacturer in the world. 153 00:09:18,600 --> 00:09:24,760 Speaker 1: So you have these traditional enterprises partnering up with new 154 00:09:24,760 --> 00:09:29,120 Speaker 1: cutting edge technologies and both sides of the equation will benefit. 155 00:09:29,240 --> 00:09:32,560 Speaker 1: And we see more and more of that happening. Ambassador US, 156 00:09:32,960 --> 00:09:37,280 Speaker 1: If an executive or an investor in a startup growth 157 00:09:37,320 --> 00:09:40,280 Speaker 1: company is listening to you and wants to learn more 158 00:09:40,320 --> 00:09:44,600 Speaker 1: about expanding into the Japanese market, what do they do? 159 00:09:45,520 --> 00:09:49,400 Speaker 1: They should give me a call. That's a capital We 160 00:09:49,559 --> 00:09:54,400 Speaker 1: have a team that's on the ground. We have as 161 00:09:54,400 --> 00:09:58,600 Speaker 1: our senior advisor, the person who built Twitter in Japan, 162 00:09:59,679 --> 00:10:03,240 Speaker 1: as are japan lead. We have a person who built 163 00:10:03,240 --> 00:10:05,920 Speaker 1: an enterprise company in Japan as well as was a 164 00:10:06,040 --> 00:10:11,360 Speaker 1: senior executive that Apple. Obviously, I've had tremendous experience with 165 00:10:11,640 --> 00:10:14,640 Speaker 1: the senior leadership on both the public and private side, 166 00:10:15,240 --> 00:10:19,800 Speaker 1: and the important lesson to be learned is it's not 167 00:10:20,000 --> 00:10:24,560 Speaker 1: one size fits all. Many of these incredibly disruptive, successful 168 00:10:24,640 --> 00:10:28,280 Speaker 1: companies here in the Valley have been in the US market, 169 00:10:28,600 --> 00:10:31,480 Speaker 1: but when they begin to go global. They have to 170 00:10:31,559 --> 00:10:36,160 Speaker 1: understand that different cultures at different business practices, and that's 171 00:10:36,200 --> 00:10:39,400 Speaker 1: where companies such as ours can really be a benefit. 172 00:10:39,920 --> 00:10:42,520 Speaker 1: Thank you very much for spending time with this. Ambassador 173 00:10:42,679 --> 00:10:45,880 Speaker 1: John Roucy is the former US Ambassador to Japan. He 174 00:10:46,000 --> 00:10:49,559 Speaker 1: is now the founding partner of Geodesic Capital. They are 175 00:10:49,600 --> 00:10:54,080 Speaker 1: based in San Francisco. You're listening to taking Stock. I'm 176 00:10:54,120 --> 00:10:57,520 Speaker 1: pim Fox, My Coast, Kathleen Hayes, and this is Bloomberg Radio. 177 00:11:00,480 --> 00:11:03,800 Speaker 1: Bloombertaking Stock is brought to you by Commonwealth Financial Network. 178 00:11:03,840 --> 00:11:06,200 Speaker 1: When it's time to change the conversation, talk with a 179 00:11:06,240 --> 00:11:08,800 Speaker 1: broker dealer r I A that's ready to listen Call 180 00:11:08,920 --> 00:11:10,920 Speaker 1: eight six six four six two three sixth thre eight 181 00:11:11,000 --> 00:11:13,040 Speaker 1: or visit Commonwealth dot com to learn more