1 00:00:03,160 --> 00:00:06,560 Speaker 1: Global business news twenty four hours a day, if Bloomberg 2 00:00:06,600 --> 00:00:09,680 Speaker 1: dot Com, the radio, plus Globo lap and on your radio. 3 00:00:09,960 --> 00:00:14,160 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters. 4 00:00:14,200 --> 00:00:17,280 Speaker 1: I'm Charlie Pellets selling today for the DAL, the SMP, 5 00:00:17,360 --> 00:00:20,720 Speaker 1: and NEZDAK very close to the worst levels of the session, 6 00:00:21,280 --> 00:00:25,200 Speaker 1: SMP five hundred extending losses to a one month low, 7 00:00:25,600 --> 00:00:28,440 Speaker 1: Crude oil slipping from a six month high. Right now, 8 00:00:28,480 --> 00:00:32,360 Speaker 1: we've got West Texas intermediate crude down one two percent, 9 00:00:32,440 --> 00:00:36,600 Speaker 1: falling fifty four cents a barrel to forty sixteen. Gold 10 00:00:36,680 --> 00:00:39,080 Speaker 1: up three eighty the ounce to twelve seventy five, a 11 00:00:39,120 --> 00:00:42,000 Speaker 1: gain of three tenths of one percent. The SMP five 12 00:00:42,080 --> 00:00:45,519 Speaker 1: hundred index down eighteen to two thousand forty five, a 13 00:00:45,600 --> 00:00:48,839 Speaker 1: drop of nine tenths of one percent. Nastack down twenty 14 00:00:48,840 --> 00:00:51,280 Speaker 1: four a drop of five tenths of one percent down, 15 00:00:51,320 --> 00:00:55,200 Speaker 1: Industrials down one eighty five points, a drop of one percent. 16 00:00:55,640 --> 00:01:04,959 Speaker 1: I'm Charlie Palaton. That's a Bloomberg Business Flash. Days, Good Days. 17 00:01:09,240 --> 00:01:12,200 Speaker 1: This is taking stock on Bloomberg. I'm Pim Fox my 18 00:01:12,360 --> 00:01:16,640 Speaker 1: co host Kathleen Hayes. We are broadcasting live from Elbow Beach, Bermuda, 19 00:01:16,720 --> 00:01:21,200 Speaker 1: an ocean front enclave of classic style and contemporary luxury. 20 00:01:21,319 --> 00:01:26,320 Speaker 1: Bermuda is a British overseas territory. And here to tell 21 00:01:26,400 --> 00:01:29,520 Speaker 1: us more about Bermuda is the Premier and the Minister 22 00:01:29,600 --> 00:01:33,880 Speaker 1: of National Security, the Honorable Michael Dunkley. Thank you very 23 00:01:33,920 --> 00:01:36,360 Speaker 1: much for being here, sir. It is great to be here. 24 00:01:36,440 --> 00:01:40,720 Speaker 1: And does it get any more beautiful than this? No, no, 25 00:01:40,840 --> 00:01:43,160 Speaker 1: it doesn't. I could. I can say definitively I have. 26 00:01:43,520 --> 00:01:45,280 Speaker 1: All I had to do was get off the plane 27 00:01:45,520 --> 00:01:48,680 Speaker 1: yesterday at the airport, come and sit on that beach, 28 00:01:48,720 --> 00:01:50,360 Speaker 1: and all the thoughts I had, what, all the things 29 00:01:50,400 --> 00:01:53,640 Speaker 1: I had to do just sort of melting away. It 30 00:01:54,040 --> 00:01:56,560 Speaker 1: tends to get like that. And I'll tell all your 31 00:01:56,880 --> 00:02:00,240 Speaker 1: listening audience that you are here in beautiful Bermuda. But 32 00:02:00,280 --> 00:02:02,800 Speaker 1: there's no rum swizzles or dark and stormies out just yet. 33 00:02:02,880 --> 00:02:06,360 Speaker 1: It's a little bit earlier to day. Tell us a 34 00:02:06,440 --> 00:02:11,200 Speaker 1: little bit about Bermuda. It's legal status, the way the 35 00:02:11,320 --> 00:02:15,040 Speaker 1: politics and the business community work in the island. Tell 36 00:02:15,120 --> 00:02:19,600 Speaker 1: us what goes on. We have been blessed with a 37 00:02:19,720 --> 00:02:24,959 Speaker 1: very strong system of democracy for hundreds of years, and 38 00:02:25,080 --> 00:02:29,320 Speaker 1: along with that we build a very strong foundation uh 39 00:02:29,320 --> 00:02:32,480 Speaker 1: in our community and also in the business world. Our 40 00:02:32,600 --> 00:02:36,720 Speaker 1: legal system is one that we made sure that at 41 00:02:36,760 --> 00:02:41,080 Speaker 1: all times we've continued to make sure that we have 42 00:02:41,320 --> 00:02:44,840 Speaker 1: a sound system to be used with appeal to the 43 00:02:44,840 --> 00:02:49,640 Speaker 1: Privy Council in London. And I say those comments to 44 00:02:49,639 --> 00:02:52,680 Speaker 1: to get to this position where we live in a 45 00:02:52,680 --> 00:02:56,520 Speaker 1: small world nowadays because of the technology and how it 46 00:02:56,600 --> 00:03:00,600 Speaker 1: moves very quickly and people seem to be the access 47 00:03:00,720 --> 00:03:02,400 Speaker 1: to capital in all parts of the world do what 48 00:03:02,440 --> 00:03:06,720 Speaker 1: they have to do. But with that comes real increase 49 00:03:07,040 --> 00:03:11,040 Speaker 1: in scrutiny to all jurisdictions in regards to how they 50 00:03:11,120 --> 00:03:14,960 Speaker 1: run their country. What type of tax system you have, 51 00:03:15,480 --> 00:03:18,320 Speaker 1: what type of transparency and compliance you have. And we're 52 00:03:18,360 --> 00:03:21,240 Speaker 1: proud in Bermuda that while we might be one of 53 00:03:21,240 --> 00:03:24,440 Speaker 1: the most remote places in the world, seven miles from 54 00:03:24,800 --> 00:03:28,400 Speaker 1: the East coast, we've built a system that we believe 55 00:03:28,840 --> 00:03:34,920 Speaker 1: is just equitable, openly transparent compliance and we cooperate with 56 00:03:35,280 --> 00:03:37,200 Speaker 1: all our partners throughout the world to make sure we 57 00:03:37,240 --> 00:03:39,880 Speaker 1: stay in that position. And I think if you've seen 58 00:03:40,880 --> 00:03:43,760 Speaker 1: over the past couple of weeks, months and years, while 59 00:03:43,840 --> 00:03:47,280 Speaker 1: there's been for example, the release of the Panama Papers 60 00:03:47,920 --> 00:03:52,360 Speaker 1: with significant discussion about it. Bermuda's reputation has held a 61 00:03:52,440 --> 00:03:56,800 Speaker 1: line because when we've built industry, as we've built international 62 00:03:56,840 --> 00:04:00,080 Speaker 1: business through the years, seventy eight years ago, before what 63 00:04:00,160 --> 00:04:02,720 Speaker 1: people even thought about it, we created our Registry of 64 00:04:02,760 --> 00:04:06,040 Speaker 1: Beneficial Interest, and we we set right up front if 65 00:04:06,080 --> 00:04:07,720 Speaker 1: you're not going to come to if you're gonna come 66 00:04:07,760 --> 00:04:09,800 Speaker 1: to the island, you're gonna do business an appropriate way. 67 00:04:09,920 --> 00:04:11,880 Speaker 1: We're not gonna let you hide things. Would you explain 68 00:04:11,920 --> 00:04:14,200 Speaker 1: to our listeners who don't know much about Remuda, accept 69 00:04:14,240 --> 00:04:16,600 Speaker 1: that beautiful beaches and great golf courses, etcetera, what that 70 00:04:16,640 --> 00:04:20,040 Speaker 1: regis wonderful people and what I'm we have talked more 71 00:04:20,040 --> 00:04:22,200 Speaker 1: about that. The culture, the people, it's fascinating to me. 72 00:04:22,400 --> 00:04:25,040 Speaker 1: Less than a hundred thousand people, so cohesive, it's just amazing. 73 00:04:25,040 --> 00:04:28,520 Speaker 1: But tell us about the Beneficial Registry, Well, uh, it 74 00:04:28,600 --> 00:04:32,680 Speaker 1: was started in the I would say probably shortly around 75 00:04:32,680 --> 00:04:36,719 Speaker 1: there when we started have a real business infrastructure developed, 76 00:04:37,200 --> 00:04:41,600 Speaker 1: and uh, the the leaders of that of that time 77 00:04:41,720 --> 00:04:43,880 Speaker 1: decided that they wanted to make sure that if you 78 00:04:43,920 --> 00:04:45,960 Speaker 1: were going to set up companies in Bermuda, there had 79 00:04:46,000 --> 00:04:48,120 Speaker 1: to be access to know who was a part of 80 00:04:48,120 --> 00:04:51,400 Speaker 1: those companies and what type of business they've done. Um. 81 00:04:51,480 --> 00:04:54,520 Speaker 1: And it's unbelievable the vision that they had to do 82 00:04:54,600 --> 00:04:57,520 Speaker 1: something like that, because today in two thousand and sixteen, 83 00:04:57,760 --> 00:05:01,920 Speaker 1: other jurisdictions are still looking through basic scenarios of what 84 00:05:01,960 --> 00:05:04,039 Speaker 1: they will do. There's been a lot of oppression from 85 00:05:04,160 --> 00:05:07,320 Speaker 1: the UK and from European Union countries to have other 86 00:05:07,320 --> 00:05:09,920 Speaker 1: countries developed some things like this, and we said, look, 87 00:05:09,960 --> 00:05:12,200 Speaker 1: we have a model here that works, uh, and we've 88 00:05:12,240 --> 00:05:16,039 Speaker 1: continued to tweak it as we've gone forward. So for example, UM, 89 00:05:16,480 --> 00:05:19,279 Speaker 1: my colleague, the Deputy Perium and the Minister of Financing myself, 90 00:05:19,320 --> 00:05:21,520 Speaker 1: we're in the UK and November UH and with the 91 00:05:21,600 --> 00:05:25,159 Speaker 1: heightened oversight to try to deal with corruption and the 92 00:05:25,240 --> 00:05:28,440 Speaker 1: farious activity, and we met with the National Crime Agency 93 00:05:28,440 --> 00:05:30,880 Speaker 1: there and he said, look, you know, we've never turned 94 00:05:30,880 --> 00:05:33,000 Speaker 1: down a request for information or for people to see 95 00:05:33,000 --> 00:05:35,120 Speaker 1: the books. Obviously, you know you have to protect the 96 00:05:35,160 --> 00:05:37,200 Speaker 1: privacy of some things, but we need to know what's 97 00:05:37,240 --> 00:05:40,000 Speaker 1: going on. And so we told the National Crime Agency 98 00:05:40,080 --> 00:05:43,040 Speaker 1: that you know, if you have a request that's legitimate enveloped, 99 00:05:43,080 --> 00:05:45,279 Speaker 1: within twenty four hours, you will get the information you need. 100 00:05:45,720 --> 00:05:48,520 Speaker 1: And I think that's given us a strong foundation to 101 00:05:48,520 --> 00:05:52,560 Speaker 1: build our business because that's what business wants. They want reliability, 102 00:05:53,000 --> 00:05:56,040 Speaker 1: they want certainty, and they want to be able to 103 00:05:56,120 --> 00:06:00,520 Speaker 1: withstand public scrutiny, which is picking up more and more nowadays. 104 00:06:00,680 --> 00:06:02,680 Speaker 1: And I think it's it's only appropriate that it does. 105 00:06:03,880 --> 00:06:06,960 Speaker 1: I wonder if you could just speak to the issue 106 00:06:07,240 --> 00:06:10,400 Speaker 1: of what goes on domestically, because many people may not 107 00:06:11,000 --> 00:06:14,640 Speaker 1: realize that, Uh, you have to deal with the same 108 00:06:14,640 --> 00:06:19,280 Speaker 1: issue that every country deals with. Spending on education, UH, 109 00:06:19,320 --> 00:06:24,279 Speaker 1: spending on housing, health care, sixty to sixty five thousand 110 00:06:24,440 --> 00:06:27,719 Speaker 1: people g d P, I think of around six billion. 111 00:06:27,839 --> 00:06:30,320 Speaker 1: Is that just a little okay further south and that, 112 00:06:30,400 --> 00:06:34,080 Speaker 1: But it's it's growing, right, and and as it grows, 113 00:06:34,720 --> 00:06:38,960 Speaker 1: you have to fulfill the promises that that the people 114 00:06:39,000 --> 00:06:42,599 Speaker 1: want to want kept tell us about the mix of 115 00:06:42,760 --> 00:06:45,160 Speaker 1: businesses and what you're trying to do here, because I 116 00:06:45,279 --> 00:06:47,920 Speaker 1: understand that, for example, many of the tourists that come 117 00:06:48,000 --> 00:06:51,640 Speaker 1: now come on the cruise ship, and that that's great, 118 00:06:52,400 --> 00:06:54,800 Speaker 1: but how do you grow all that. I have to 119 00:06:54,839 --> 00:06:57,120 Speaker 1: say that it's it's hard for me to concentrate when 120 00:06:57,120 --> 00:06:59,719 Speaker 1: I'm sitting at this wonderful thing. We did that on 121 00:06:59,760 --> 00:07:02,000 Speaker 1: per in Elbow Beach and then looking at at the 122 00:07:02,080 --> 00:07:05,280 Speaker 1: at so many different colors of the water and UM, 123 00:07:05,320 --> 00:07:06,920 Speaker 1: but I think I can collect my thoughts enough to 124 00:07:07,080 --> 00:07:10,200 Speaker 1: answer that question for you. UH. And it is Friday afternoon, 125 00:07:10,240 --> 00:07:13,920 Speaker 1: so you've got our own wine sometime. UM at this 126 00:07:13,960 --> 00:07:18,240 Speaker 1: point in time are our foundation is international business. We're 127 00:07:18,240 --> 00:07:22,360 Speaker 1: heavy reliant on that. We've found um some good growth 128 00:07:22,600 --> 00:07:26,520 Speaker 1: and strength over the years. Recent changes to the industry 129 00:07:26,520 --> 00:07:29,960 Speaker 1: have seeing mergers and acquisitions and their rates have been 130 00:07:30,040 --> 00:07:32,520 Speaker 1: dampened a bit. You're talking about the reinsurance, the reinsurance, 131 00:07:32,680 --> 00:07:36,240 Speaker 1: the reinsurance industry. But we did for me to still 132 00:07:36,280 --> 00:07:40,320 Speaker 1: the third largest reinsurance destination insurance destination in the world, 133 00:07:40,680 --> 00:07:42,560 Speaker 1: and we're proud of that with our size, and we 134 00:07:42,640 --> 00:07:44,920 Speaker 1: continue to work very closely with the industry to make 135 00:07:44,960 --> 00:07:47,720 Speaker 1: sure uh that this is the place that they want 136 00:07:47,720 --> 00:07:49,320 Speaker 1: to be and this is the place that they want 137 00:07:49,360 --> 00:07:51,440 Speaker 1: to do their business from and grow. And we have 138 00:07:51,480 --> 00:07:54,560 Speaker 1: a strong relationship with them. And also the regulation, the 139 00:07:55,040 --> 00:07:56,920 Speaker 1: regulator in Bermuda, the b m A, who do a 140 00:07:56,960 --> 00:08:00,480 Speaker 1: fantastic job tourism. I guess is we're from a first 141 00:08:00,480 --> 00:08:04,480 Speaker 1: put its footprint back in the fifties I think we 142 00:08:04,480 --> 00:08:06,640 Speaker 1: were probably one of the four runners of the modern 143 00:08:06,680 --> 00:08:10,360 Speaker 1: era of tourism, uh with furnace, with the built the 144 00:08:10,360 --> 00:08:12,720 Speaker 1: old Castle Harbor Hotel, and the cruise ships will come 145 00:08:12,720 --> 00:08:14,560 Speaker 1: in and drop people off, and the golf courses who 146 00:08:14,560 --> 00:08:17,120 Speaker 1: have built it at uh what's now Tuckers Point and 147 00:08:17,160 --> 00:08:19,720 Speaker 1: what still is mid Ocean UM. And so we were 148 00:08:19,760 --> 00:08:21,920 Speaker 1: the four runner of the vibrant cruise industry. And over 149 00:08:21,960 --> 00:08:26,080 Speaker 1: time UH that has changed. Uh. We now, I believe, 150 00:08:26,160 --> 00:08:28,800 Speaker 1: are on a nice resurgence with tourism. We've got a 151 00:08:28,880 --> 00:08:32,000 Speaker 1: number of exciting properties that are redeveloping and and um 152 00:08:32,000 --> 00:08:34,720 Speaker 1: putting them up in a better position. Obviously, Elba Beach 153 00:08:34,760 --> 00:08:37,839 Speaker 1: I think is one of the jewels in our crown. 154 00:08:37,880 --> 00:08:40,520 Speaker 1: Here in Bermuda, there's redevelopment in the east end with 155 00:08:40,640 --> 00:08:43,680 Speaker 1: Desperallas Group and with Mortgage Point, which is gonna build 156 00:08:43,679 --> 00:08:47,520 Speaker 1: a rich reserve. Michael Douglas probably just three miles down 157 00:08:47,520 --> 00:08:50,480 Speaker 1: the coast here is going to be developing his property, 158 00:08:50,520 --> 00:08:53,000 Speaker 1: so that there's a lot going on. Cruise ship visitors 159 00:08:53,000 --> 00:08:56,200 Speaker 1: are an important part of that industry UM and Bermuda 160 00:08:56,280 --> 00:08:59,040 Speaker 1: is probably one of the top cruise destinations at this 161 00:08:59,120 --> 00:09:02,360 Speaker 1: point in time. Because we have developed the facilities for 162 00:09:02,400 --> 00:09:04,680 Speaker 1: them to come into the Royal Naval Dockyard, so we 163 00:09:04,720 --> 00:09:07,280 Speaker 1: can have two mega ships there at a time and 164 00:09:07,280 --> 00:09:09,760 Speaker 1: we typically have four through the whole week. And the 165 00:09:09,840 --> 00:09:11,960 Speaker 1: Royal Naval Docker is a really good place to visit 166 00:09:12,000 --> 00:09:14,760 Speaker 1: and then we put ferries to go out to support that. 167 00:09:14,880 --> 00:09:17,440 Speaker 1: So the government obviously has a big role to play. 168 00:09:17,520 --> 00:09:19,959 Speaker 1: And I know that you have a beach vision. You know, 169 00:09:20,000 --> 00:09:21,760 Speaker 1: we spoke earlier in the show to Ed Burns, who's 170 00:09:21,760 --> 00:09:24,280 Speaker 1: the managing director here at the Double Beach in Bermuda, 171 00:09:24,320 --> 00:09:30,000 Speaker 1: and Ed has been affiliated. Now what a very dynamic 172 00:09:30,040 --> 00:09:35,240 Speaker 1: experienced hotel development professional. Who's who's come in? Did Bermuna 173 00:09:35,240 --> 00:09:37,520 Speaker 1: fall behind for a while? Does Bermuda have catching up? 174 00:09:37,600 --> 00:09:39,680 Speaker 1: Are you having to like like let the world know 175 00:09:39,760 --> 00:09:42,680 Speaker 1: again what's going on here? No doubt we we did 176 00:09:42,679 --> 00:09:46,439 Speaker 1: fall beyond um And I think it's probably twofold one 177 00:09:46,559 --> 00:09:48,839 Speaker 1: is you know, we might have taken our eye off 178 00:09:48,880 --> 00:09:53,560 Speaker 1: the ball and had other opportunities that were in front 179 00:09:53,559 --> 00:09:55,760 Speaker 1: of us. And I also think, you know, in all 180 00:09:55,840 --> 00:10:00,280 Speaker 1: reality is that the world has really focused more on 181 00:10:00,320 --> 00:10:03,120 Speaker 1: tourism and destinations at ten fifty and twenty years ago, 182 00:10:03,280 --> 00:10:06,920 Speaker 1: never happened um and so while we were we were 183 00:10:06,960 --> 00:10:10,240 Speaker 1: still in the game and tourism uh, and we were 184 00:10:10,240 --> 00:10:14,000 Speaker 1: concentrating to some other real growth opportunities. It's it's like 185 00:10:14,040 --> 00:10:16,880 Speaker 1: a champion if if if you're the world champions um 186 00:10:16,920 --> 00:10:19,600 Speaker 1: of basketball or football, whatever, it's always hard to stay 187 00:10:19,600 --> 00:10:22,080 Speaker 1: in that position because people want to attain that. And 188 00:10:22,120 --> 00:10:23,960 Speaker 1: even though we you know, we live in paradise and 189 00:10:24,000 --> 00:10:26,920 Speaker 1: we've got so much going for us in the tourism industry, 190 00:10:26,920 --> 00:10:30,239 Speaker 1: as I'm sure Mr Burns knows as as a great professional, 191 00:10:30,360 --> 00:10:33,319 Speaker 1: is that every year you have to reevaluate your product. 192 00:10:33,360 --> 00:10:35,120 Speaker 1: And that's what we're trying to do in Bermuda. Now 193 00:10:35,480 --> 00:10:38,000 Speaker 1: we've we've looked at our product. We're trying to give 194 00:10:38,040 --> 00:10:40,760 Speaker 1: the experience so we can appeal to the traveler of 195 00:10:40,800 --> 00:10:42,520 Speaker 1: today that we want to get in Bermuda that has 196 00:10:42,520 --> 00:10:45,600 Speaker 1: a disposable income. We're appealing to the markets where we 197 00:10:45,640 --> 00:10:49,400 Speaker 1: have good access to good air airlift from and I 198 00:10:49,440 --> 00:10:51,840 Speaker 1: think now we're starting to see that progress. I've talked 199 00:10:51,840 --> 00:10:54,760 Speaker 1: about the development and if you take a look at 200 00:10:54,800 --> 00:10:57,079 Speaker 1: our first core tourism numbers, we're up about fourteen but 201 00:10:57,160 --> 00:11:01,400 Speaker 1: set with good growth. Well, congratulations on that We're so 202 00:11:01,440 --> 00:11:04,640 Speaker 1: happy you joined us today. This is the premiere of Bermuda. 203 00:11:04,679 --> 00:11:07,440 Speaker 1: You've been listening to the honorable Michael Dunkley as we 204 00:11:07,520 --> 00:11:11,200 Speaker 1: continue our live broadcast from Elbow Beach, Bermuda. Kathleen Hayes 205 00:11:11,240 --> 00:11:14,800 Speaker 1: taking stock, Bloomberg Radio m