WEBVTT - Bermuda Premier Dunkley: 'We Won't Let You Hide Things' (Audio)

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<v Speaker 1>Global business news twenty four hours a day, if Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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<v Speaker 1>I'm Charlie Pellets selling today for the DAL, the SMP,

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<v Speaker 1>and NEZDAK very close to the worst levels of the session,

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<v Speaker 1>SMP five hundred extending losses to a one month low,

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<v Speaker 1>Crude oil slipping from a six month high. Right now,

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<v Speaker 1>we've got West Texas intermediate crude down one two percent,

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<v Speaker 1>falling fifty four cents a barrel to forty sixteen. Gold

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<v Speaker 1>up three eighty the ounce to twelve seventy five, a

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<v Speaker 1>gain of three tenths of one percent. The SMP five

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<v Speaker 1>hundred index down eighteen to two thousand forty five, a

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<v Speaker 1>drop of nine tenths of one percent. Nastack down twenty

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<v Speaker 1>four a drop of five tenths of one percent down,

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<v Speaker 1>Industrials down one eighty five points, a drop of one percent.

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<v Speaker 1>I'm Charlie Palaton. That's a Bloomberg Business Flash. Days, Good Days.

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<v Speaker 1>This is taking stock on Bloomberg. I'm Pim Fox my

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<v Speaker 1>co host Kathleen Hayes. We are broadcasting live from Elbow Beach, Bermuda,

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<v Speaker 1>an ocean front enclave of classic style and contemporary luxury.

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<v Speaker 1>Bermuda is a British overseas territory. And here to tell

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<v Speaker 1>us more about Bermuda is the Premier and the Minister

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<v Speaker 1>of National Security, the Honorable Michael Dunkley. Thank you very

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<v Speaker 1>much for being here, sir. It is great to be here.

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<v Speaker 1>And does it get any more beautiful than this? No, no,

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<v Speaker 1>it doesn't. I could. I can say definitively I have.

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<v Speaker 1>All I had to do was get off the plane

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<v Speaker 1>yesterday at the airport, come and sit on that beach,

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<v Speaker 1>and all the thoughts I had, what, all the things

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<v Speaker 1>I had to do just sort of melting away. It

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<v Speaker 1>tends to get like that. And I'll tell all your

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<v Speaker 1>listening audience that you are here in beautiful Bermuda. But

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<v Speaker 1>there's no rum swizzles or dark and stormies out just yet.

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<v Speaker 1>It's a little bit earlier to day. Tell us a

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<v Speaker 1>little bit about Bermuda. It's legal status, the way the

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<v Speaker 1>politics and the business community work in the island. Tell

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<v Speaker 1>us what goes on. We have been blessed with a

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<v Speaker 1>very strong system of democracy for hundreds of years, and

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<v Speaker 1>along with that we build a very strong foundation uh

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<v Speaker 1>in our community and also in the business world. Our

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<v Speaker 1>legal system is one that we made sure that at

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<v Speaker 1>all times we've continued to make sure that we have

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<v Speaker 1>a sound system to be used with appeal to the

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<v Speaker 1>Privy Council in London. And I say those comments to

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<v Speaker 1>to get to this position where we live in a

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<v Speaker 1>small world nowadays because of the technology and how it

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<v Speaker 1>moves very quickly and people seem to be the access

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<v Speaker 1>to capital in all parts of the world do what

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<v Speaker 1>they have to do. But with that comes real increase

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<v Speaker 1>in scrutiny to all jurisdictions in regards to how they

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<v Speaker 1>run their country. What type of tax system you have,

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<v Speaker 1>what type of transparency and compliance you have. And we're

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<v Speaker 1>proud in Bermuda that while we might be one of

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<v Speaker 1>the most remote places in the world, seven miles from

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<v Speaker 1>the East coast, we've built a system that we believe

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<v Speaker 1>is just equitable, openly transparent compliance and we cooperate with

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<v Speaker 1>all our partners throughout the world to make sure we

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<v Speaker 1>stay in that position. And I think if you've seen

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<v Speaker 1>over the past couple of weeks, months and years, while

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<v Speaker 1>there's been for example, the release of the Panama Papers

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<v Speaker 1>with significant discussion about it. Bermuda's reputation has held a

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<v Speaker 1>line because when we've built industry, as we've built international

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<v Speaker 1>business through the years, seventy eight years ago, before what

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<v Speaker 1>people even thought about it, we created our Registry of

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<v Speaker 1>Beneficial Interest, and we we set right up front if

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<v Speaker 1>you're not going to come to if you're gonna come

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<v Speaker 1>to the island, you're gonna do business an appropriate way.

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<v Speaker 1>We're not gonna let you hide things. Would you explain

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<v Speaker 1>to our listeners who don't know much about Remuda, accept

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<v Speaker 1>that beautiful beaches and great golf courses, etcetera, what that

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<v Speaker 1>regis wonderful people and what I'm we have talked more

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<v Speaker 1>about that. The culture, the people, it's fascinating to me.

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<v Speaker 1>Less than a hundred thousand people, so cohesive, it's just amazing.

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<v Speaker 1>But tell us about the Beneficial Registry, Well, uh, it

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<v Speaker 1>was started in the I would say probably shortly around

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<v Speaker 1>there when we started have a real business infrastructure developed,

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<v Speaker 1>and uh, the the leaders of that of that time

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<v Speaker 1>decided that they wanted to make sure that if you

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<v Speaker 1>were going to set up companies in Bermuda, there had

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<v Speaker 1>to be access to know who was a part of

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<v Speaker 1>those companies and what type of business they've done. Um.

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<v Speaker 1>And it's unbelievable the vision that they had to do

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<v Speaker 1>something like that, because today in two thousand and sixteen,

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<v Speaker 1>other jurisdictions are still looking through basic scenarios of what

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<v Speaker 1>they will do. There's been a lot of oppression from

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<v Speaker 1>the UK and from European Union countries to have other

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<v Speaker 1>countries developed some things like this, and we said, look,

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<v Speaker 1>we have a model here that works, uh, and we've

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<v Speaker 1>continued to tweak it as we've gone forward. So for example, UM,

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<v Speaker 1>my colleague, the Deputy Perium and the Minister of Financing myself,

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<v Speaker 1>we're in the UK and November UH and with the

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<v Speaker 1>heightened oversight to try to deal with corruption and the

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<v Speaker 1>farious activity, and we met with the National Crime Agency

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<v Speaker 1>there and he said, look, you know, we've never turned

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<v Speaker 1>down a request for information or for people to see

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<v Speaker 1>the books. Obviously, you know you have to protect the

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<v Speaker 1>privacy of some things, but we need to know what's

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<v Speaker 1>going on. And so we told the National Crime Agency

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<v Speaker 1>that you know, if you have a request that's legitimate enveloped,

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<v Speaker 1>within twenty four hours, you will get the information you need.

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<v Speaker 1>And I think that's given us a strong foundation to

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<v Speaker 1>build our business because that's what business wants. They want reliability,

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<v Speaker 1>they want certainty, and they want to be able to

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<v Speaker 1>withstand public scrutiny, which is picking up more and more nowadays.

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<v Speaker 1>And I think it's it's only appropriate that it does.

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<v Speaker 1>I wonder if you could just speak to the issue

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<v Speaker 1>of what goes on domestically, because many people may not

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<v Speaker 1>realize that, Uh, you have to deal with the same

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<v Speaker 1>issue that every country deals with. Spending on education, UH,

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<v Speaker 1>spending on housing, health care, sixty to sixty five thousand

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<v Speaker 1>people g d P, I think of around six billion.

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<v Speaker 1>Is that just a little okay further south and that,

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<v Speaker 1>But it's it's growing, right, and and as it grows,

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<v Speaker 1>you have to fulfill the promises that that the people

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<v Speaker 1>want to want kept tell us about the mix of

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<v Speaker 1>businesses and what you're trying to do here, because I

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<v Speaker 1>understand that, for example, many of the tourists that come

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<v Speaker 1>now come on the cruise ship, and that that's great,

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<v Speaker 1>but how do you grow all that. I have to

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<v Speaker 1>say that it's it's hard for me to concentrate when

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<v Speaker 1>I'm sitting at this wonderful thing. We did that on

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<v Speaker 1>per in Elbow Beach and then looking at at the

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<v Speaker 1>at so many different colors of the water and UM,

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<v Speaker 1>but I think I can collect my thoughts enough to

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<v Speaker 1>answer that question for you. UH. And it is Friday afternoon,

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<v Speaker 1>so you've got our own wine sometime. UM at this

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<v Speaker 1>point in time are our foundation is international business. We're

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<v Speaker 1>heavy reliant on that. We've found um some good growth

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<v Speaker 1>and strength over the years. Recent changes to the industry

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<v Speaker 1>have seeing mergers and acquisitions and their rates have been

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<v Speaker 1>dampened a bit. You're talking about the reinsurance, the reinsurance,

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<v Speaker 1>the reinsurance industry. But we did for me to still

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<v Speaker 1>the third largest reinsurance destination insurance destination in the world,

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<v Speaker 1>and we're proud of that with our size, and we

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<v Speaker 1>continue to work very closely with the industry to make

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<v Speaker 1>sure uh that this is the place that they want

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<v Speaker 1>to be and this is the place that they want

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<v Speaker 1>to do their business from and grow. And we have

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<v Speaker 1>a strong relationship with them. And also the regulation, the

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<v Speaker 1>regulator in Bermuda, the b m A, who do a

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<v Speaker 1>fantastic job tourism. I guess is we're from a first

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<v Speaker 1>put its footprint back in the fifties I think we

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<v Speaker 1>were probably one of the four runners of the modern

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<v Speaker 1>era of tourism, uh with furnace, with the built the

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<v Speaker 1>old Castle Harbor Hotel, and the cruise ships will come

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<v Speaker 1>in and drop people off, and the golf courses who

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<v Speaker 1>have built it at uh what's now Tuckers Point and

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<v Speaker 1>what still is mid Ocean UM. And so we were

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<v Speaker 1>the four runner of the vibrant cruise industry. And over

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<v Speaker 1>time UH that has changed. Uh. We now, I believe,

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<v Speaker 1>are on a nice resurgence with tourism. We've got a

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<v Speaker 1>number of exciting properties that are redeveloping and and um

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<v Speaker 1>putting them up in a better position. Obviously, Elba Beach

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<v Speaker 1>I think is one of the jewels in our crown.

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<v Speaker 1>Here in Bermuda, there's redevelopment in the east end with

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<v Speaker 1>Desperallas Group and with Mortgage Point, which is gonna build

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<v Speaker 1>a rich reserve. Michael Douglas probably just three miles down

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<v Speaker 1>the coast here is going to be developing his property,

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<v Speaker 1>so that there's a lot going on. Cruise ship visitors

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<v Speaker 1>are an important part of that industry UM and Bermuda

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<v Speaker 1>is probably one of the top cruise destinations at this

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<v Speaker 1>point in time. Because we have developed the facilities for

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<v Speaker 1>them to come into the Royal Naval Dockyard, so we

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<v Speaker 1>can have two mega ships there at a time and

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<v Speaker 1>we typically have four through the whole week. And the

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<v Speaker 1>Royal Naval Docker is a really good place to visit

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<v Speaker 1>and then we put ferries to go out to support that.

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<v Speaker 1>So the government obviously has a big role to play.

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<v Speaker 1>And I know that you have a beach vision. You know,

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<v Speaker 1>we spoke earlier in the show to Ed Burns, who's

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<v Speaker 1>the managing director here at the Double Beach in Bermuda,

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<v Speaker 1>and Ed has been affiliated. Now what a very dynamic

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<v Speaker 1>experienced hotel development professional. Who's who's come in? Did Bermuna

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<v Speaker 1>fall behind for a while? Does Bermuda have catching up?

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<v Speaker 1>Are you having to like like let the world know

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<v Speaker 1>again what's going on here? No doubt we we did

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<v Speaker 1>fall beyond um And I think it's probably twofold one

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<v Speaker 1>is you know, we might have taken our eye off

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<v Speaker 1>the ball and had other opportunities that were in front

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<v Speaker 1>of us. And I also think, you know, in all

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<v Speaker 1>reality is that the world has really focused more on

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<v Speaker 1>tourism and destinations at ten fifty and twenty years ago,

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<v Speaker 1>never happened um and so while we were we were

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<v Speaker 1>still in the game and tourism uh, and we were

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<v Speaker 1>concentrating to some other real growth opportunities. It's it's like

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<v Speaker 1>a champion if if if you're the world champions um

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<v Speaker 1>of basketball or football, whatever, it's always hard to stay

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<v Speaker 1>in that position because people want to attain that. And

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<v Speaker 1>even though we you know, we live in paradise and

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<v Speaker 1>we've got so much going for us in the tourism industry,

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<v Speaker 1>as I'm sure Mr Burns knows as as a great professional,

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<v Speaker 1>is that every year you have to reevaluate your product.

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<v Speaker 1>And that's what we're trying to do in Bermuda. Now

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<v Speaker 1>we've we've looked at our product. We're trying to give

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<v Speaker 1>the experience so we can appeal to the traveler of

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<v Speaker 1>today that we want to get in Bermuda that has

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<v Speaker 1>a disposable income. We're appealing to the markets where we

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<v Speaker 1>have good access to good air airlift from and I

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<v Speaker 1>think now we're starting to see that progress. I've talked

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<v Speaker 1>about the development and if you take a look at

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<v Speaker 1>our first core tourism numbers, we're up about fourteen but

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<v Speaker 1>set with good growth. Well, congratulations on that We're so

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<v Speaker 1>happy you joined us today. This is the premiere of Bermuda.

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<v Speaker 1>You've been listening to the honorable Michael Dunkley as we

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<v Speaker 1>continue our live broadcast from Elbow Beach, Bermuda. Kathleen Hayes

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<v Speaker 1>taking stock, Bloomberg Radio m