1
00:00:00,080 --> 00:00:02,680
Speaker 1: Time now for our Wall Street Week daily segment. The

2
00:00:02,720 --> 00:00:04,920
Speaker 1: host of Wall Street Week, David Western, joins us every

3
00:00:04,960 --> 00:00:07,080
Speaker 1: day at this time. And David, you always have some

4
00:00:07,120 --> 00:00:10,080
Speaker 1: great interviews, and you actually found somebody and dragged him

5
00:00:10,080 --> 00:00:11,440
Speaker 1: into the studio with a little.

6
00:00:11,200 --> 00:00:13,120
Speaker 2: Bit of history of Wall Street. We actually have We're

7
00:00:13,160 --> 00:00:14,280
Speaker 2: delighted to have with us now.

8
00:00:14,440 --> 00:00:16,280
Speaker 1: I feel like we should be planned the music exactly

9
00:00:17,360 --> 00:00:18,400
Speaker 1: in the background.

10
00:00:18,800 --> 00:00:20,840
Speaker 2: Andthew Scaram Ritchie of course is the founder and the

11
00:00:20,840 --> 00:00:23,400
Speaker 2: head of Skybridge, but he also hosted a version of

12
00:00:23,400 --> 00:00:25,440
Speaker 2: Wall Street Week in the day. So welcome, Anthony's great

13
00:00:25,440 --> 00:00:25,960
Speaker 2: to have you back.

14
00:00:26,040 --> 00:00:29,720
Speaker 3: It's it's great to be back some of the old memorabile.

15
00:00:29,720 --> 00:00:31,040
Speaker 3: I'm going to send you one of the hats.

16
00:00:32,159 --> 00:00:34,040
Speaker 2: So let's start with China. There was big news out

17
00:00:34,080 --> 00:00:36,879
Speaker 2: of China over the overnight about the stepping down of

18
00:00:36,920 --> 00:00:39,800
Speaker 2: the short term actually Foreign Minister was something of a

19
00:00:39,840 --> 00:00:42,000
Speaker 2: shock somebody, I think, you know he spent time in

20
00:00:42,120 --> 00:00:45,440
Speaker 2: Washington as ambassador. I know Skybridge has been very active

21
00:00:45,560 --> 00:00:47,840
Speaker 2: in China, and you have views about where we should

22
00:00:47,840 --> 00:00:49,600
Speaker 2: be going. What is this like to mean for the

23
00:00:49,680 --> 00:00:52,040
Speaker 2: relations that we're trying to put back together between US

24
00:00:52,040 --> 00:00:52,440
Speaker 2: and China?

25
00:00:52,800 --> 00:00:54,440
Speaker 3: So you know, I'm a little bit of a contrary

26
00:00:54,480 --> 00:00:58,040
Speaker 3: because I know both parties. Now I've decided that China

27
00:00:58,120 --> 00:00:59,720
Speaker 3: is our great antagonist if you listen to some of

28
00:00:59,760 --> 00:01:03,520
Speaker 3: the campaign rhetoric from the presidential campaign. But I think

29
00:01:03,560 --> 00:01:05,320
Speaker 3: long term that's not in the best interest of the

30
00:01:05,400 --> 00:01:08,040
Speaker 3: United States, nor in the best interests of the Chinese

31
00:01:08,080 --> 00:01:10,200
Speaker 3: and for that matter, of the world. And so I'm

32
00:01:10,200 --> 00:01:12,399
Speaker 3: hoping long term that we bridge the gap. I think

33
00:01:12,480 --> 00:01:16,760
Speaker 3: the replacement of the Foreign Minister is a good signal

34
00:01:16,840 --> 00:01:20,160
Speaker 3: actually from the Chinese because the rhetoric was quite harsh.

35
00:01:20,560 --> 00:01:23,839
Speaker 3: The rhetoric in tone seems to be coming down a notch,

36
00:01:24,440 --> 00:01:27,120
Speaker 3: and I you know, my friends in China believe that

37
00:01:27,319 --> 00:01:30,480
Speaker 3: now that president she has consolidated power and has sort

38
00:01:30,480 --> 00:01:33,840
Speaker 3: of set himself up for the next decade plus, that

39
00:01:33,880 --> 00:01:35,760
Speaker 3: there's going to be a reproach moodel. I hope there

40
00:01:35,800 --> 00:01:40,399
Speaker 3: will be. We may have different ideologies, in different ways

41
00:01:40,400 --> 00:01:42,200
Speaker 3: of thinking, and we have a two party system, they

42
00:01:42,200 --> 00:01:45,000
Speaker 3: have a one party system. But we're the two strongest

43
00:01:45,000 --> 00:01:46,959
Speaker 3: economies in the world and we need to figure it out.

44
00:01:47,000 --> 00:01:50,200
Speaker 3: So we'll be doing our conference in Hong Kong hopefully

45
00:01:50,520 --> 00:01:52,120
Speaker 3: some point in twenty twenty four.

46
00:01:52,480 --> 00:01:54,559
Speaker 2: I think one of the big questions Anthony is where

47
00:01:54,560 --> 00:01:56,280
Speaker 2: can we get along well and where are we just

48
00:01:56,280 --> 00:01:57,760
Speaker 2: going to be competing with each other. I mean a

49
00:01:57,800 --> 00:02:00,000
Speaker 2: lot of talk about red lines. We have some ideas

50
00:02:00,000 --> 00:02:01,960
Speaker 2: where the redlines are on national security. Where are the

51
00:02:02,000 --> 00:02:04,200
Speaker 2: places that you think that we really can work with

52
00:02:04,320 --> 00:02:05,560
Speaker 2: the Chinese economically?

53
00:02:06,320 --> 00:02:07,920
Speaker 3: Well, I mean that's the big debate going on in

54
00:02:08,000 --> 00:02:10,920
Speaker 3: Washington right now. Right Like we've more or less stopped

55
00:02:10,919 --> 00:02:13,880
Speaker 3: some of our chips, the AI chips, going into China.

56
00:02:14,480 --> 00:02:16,720
Speaker 3: We don't want them to stop their rare earth material

57
00:02:16,800 --> 00:02:20,040
Speaker 3: shipments to US and our allies in the West. And

58
00:02:20,120 --> 00:02:22,400
Speaker 3: so I think that's really where it has to be.

59
00:02:22,480 --> 00:02:24,720
Speaker 3: You know, China, whether we like it or not, has

60
00:02:24,760 --> 00:02:28,280
Speaker 3: over the last thirty years been the Saudi Arabia manufacturing

61
00:02:28,360 --> 00:02:30,639
Speaker 3: and so I don't think we're going to be able

62
00:02:30,639 --> 00:02:34,160
Speaker 3: to reposition ourselves that quickly. Moreover, if you just look

63
00:02:34,200 --> 00:02:38,320
Speaker 3: at the principles of global trade and thinking of David Ricardo,

64
00:02:38,680 --> 00:02:40,600
Speaker 3: it doesn't make the most sense for the United States

65
00:02:40,639 --> 00:02:44,040
Speaker 3: to go in that direction. It's great campaign rhetoric, but

66
00:02:44,080 --> 00:02:47,840
Speaker 3: it doesn't necessarily lead to better consumer benefits or better

67
00:02:47,919 --> 00:02:50,520
Speaker 3: employment metrics. For the United States, So I think we

68
00:02:50,560 --> 00:02:52,760
Speaker 3: need to calm ourselves down a little bit. I think

69
00:02:52,760 --> 00:02:56,840
Speaker 3: it's important for business leaders to be in China, have

70
00:02:56,919 --> 00:03:00,000
Speaker 3: a presence felt in China. I like the fact thats

71
00:03:00,080 --> 00:03:02,760
Speaker 3: eos are traveling more to China and I'll be making

72
00:03:02,760 --> 00:03:04,519
Speaker 3: in trip myself to Hong Kong and September.

73
00:03:04,680 --> 00:03:07,120
Speaker 1: Is that consistency, that's stability there, because when we talk

74
00:03:07,160 --> 00:03:09,120
Speaker 1: to CEO, is part of the concern they have. It's

75
00:03:09,160 --> 00:03:10,799
Speaker 1: not so much that they don't want to do business there,

76
00:03:10,880 --> 00:03:13,360
Speaker 1: is that policies seem to shift, the relationship with the

77
00:03:13,440 --> 00:03:16,120
Speaker 1: US seems to improve, and then it gets worse, and

78
00:03:16,160 --> 00:03:18,120
Speaker 1: it's just kind of like nobody really knows where this

79
00:03:18,200 --> 00:03:18,760
Speaker 1: all ends.

80
00:03:18,880 --> 00:03:21,280
Speaker 3: Well, listen, I think that's something that we do take

81
00:03:21,280 --> 00:03:24,360
Speaker 3: for granted in our country is the stability of our

82
00:03:24,440 --> 00:03:28,280
Speaker 3: judicial and legal system, and so there's no capricious behavior

83
00:03:28,400 --> 00:03:32,040
Speaker 3: by our judges, by and large, very predictable standards and

84
00:03:32,080 --> 00:03:35,200
Speaker 3: contract law, and there's less predictability over there. It's one

85
00:03:35,240 --> 00:03:38,560
Speaker 3: of the reasons why the United States should still be heralded.

86
00:03:38,600 --> 00:03:41,840
Speaker 3: That's a reserve currency. There's no way anybody's going to

87
00:03:41,880 --> 00:03:43,240
Speaker 3: be able to compete with US that way. If you

88
00:03:43,280 --> 00:03:46,000
Speaker 3: think of our free market system and our legal system,

89
00:03:46,040 --> 00:03:47,880
Speaker 3: and so we're way ahead of the Chinese that way,

90
00:03:48,800 --> 00:03:52,920
Speaker 3: and so, but we have to recognize their rise is

91
00:03:53,080 --> 00:03:56,720
Speaker 3: generally beneficial for the planet because less poor people. Better

92
00:03:57,720 --> 00:03:59,560
Speaker 3: not to go all the way back to George Kennon,

93
00:03:59,640 --> 00:04:03,320
Speaker 3: but go there for a second, greater global interdependence, more

94
00:04:03,360 --> 00:04:08,000
Speaker 3: peace and prosperity. And so this fraying in China, some

95
00:04:08,080 --> 00:04:10,520
Speaker 3: of it is being done by nationalism on both sides.

96
00:04:11,080 --> 00:04:15,240
Speaker 3: It's served President she to have this charge rhetoric as

97
00:04:15,280 --> 00:04:18,200
Speaker 3: he was consolidating power, and it certainly has served the

98
00:04:18,279 --> 00:04:20,919
Speaker 3: populist communities on both the left and the right. But

99
00:04:20,960 --> 00:04:24,240
Speaker 3: I think long term it's not great common sense for.

100
00:04:24,240 --> 00:04:26,320
Speaker 1: The world or for the United States. I do want

101
00:04:26,320 --> 00:04:27,760
Speaker 1: to get you in China. I do want to get

102
00:04:27,760 --> 00:04:31,040
Speaker 1: your thoughts on artificial intelligence. Obviously, even the heart of

103
00:04:31,120 --> 00:04:33,719
Speaker 1: at least the current split between the US and China

104
00:04:33,839 --> 00:04:35,760
Speaker 1: has a lot to do with these advanced chips. But

105
00:04:36,040 --> 00:04:38,160
Speaker 1: just talk a little bit more overall about the promise

106
00:04:38,480 --> 00:04:40,880
Speaker 1: of AI. Whether you find that promise or whether you

107
00:04:40,920 --> 00:04:42,520
Speaker 1: maybe you just think it's hype.

108
00:04:42,600 --> 00:04:45,520
Speaker 3: Well, listen, it's certainly height But I want to remind

109
00:04:45,560 --> 00:04:48,760
Speaker 3: everybody that we're getting a little old here. I mean,

110
00:04:48,880 --> 00:04:51,359
Speaker 3: David and I not. You can do it great, by

111
00:04:51,400 --> 00:04:53,400
Speaker 3: the way, but I mean I can go back to

112
00:04:53,440 --> 00:04:57,360
Speaker 3: the March two thousand debacle for web One and the Nasdaq,

113
00:04:57,960 --> 00:05:01,320
Speaker 3: and many of my contemporaries swore off of technology stocks

114
00:05:01,720 --> 00:05:05,719
Speaker 3: and they miss the greatest investment of a generation, arguably

115
00:05:05,920 --> 00:05:09,120
Speaker 3: perhaps the best investment in US economic history. So we're

116
00:05:09,120 --> 00:05:12,840
Speaker 3: probably in a bubble for some elements of AI. But

117
00:05:13,040 --> 00:05:16,440
Speaker 3: when you think of the promise and the exponential growth

118
00:05:16,760 --> 00:05:18,479
Speaker 3: of what's going to happen in AI in terms of

119
00:05:18,480 --> 00:05:22,640
Speaker 3: the efficiencies improvement in productivity, Yes, there'll be some elimination

120
00:05:22,680 --> 00:05:25,799
Speaker 3: of white collar jobs and what have you, but in general,

121
00:05:26,200 --> 00:05:27,840
Speaker 3: people's quality of life is going to go up a

122
00:05:27,880 --> 00:05:31,200
Speaker 3: big tick and there'll be another great wave of prosperity.

123
00:05:31,320 --> 00:05:36,440
Speaker 3: So I'm an investor. We're planning new product offerings related

124
00:05:36,480 --> 00:05:38,719
Speaker 3: to it, and I think long term will be fine.

125
00:05:38,720 --> 00:05:40,360
Speaker 3: But we could be sitting here six or twelve months

126
00:05:40,360 --> 00:05:40,680
Speaker 3: from now.

127
00:05:40,720 --> 00:05:43,760
Speaker 1: Are you investing in like smaller companies are investing.

128
00:05:44,720 --> 00:05:48,560
Speaker 3: Mostly larger traditional companies. But my point is we could

129
00:05:48,560 --> 00:05:50,680
Speaker 3: be sitting here six months from now and we could

130
00:05:50,680 --> 00:05:54,200
Speaker 3: be talking about a bubble bursting in AI for a

131
00:05:54,240 --> 00:05:56,359
Speaker 3: whole sortment of different reasons, and everyone will be and

132
00:05:56,400 --> 00:05:58,760
Speaker 3: I told you so mode. But if they wait five years,

133
00:05:58,800 --> 00:05:59,760
Speaker 3: they'll be well rewarded.

134
00:06:00,000 --> 00:06:02,000
Speaker 2: Well, let's talk about the timing specifically, because when it

135
00:06:02,040 --> 00:06:04,120
Speaker 2: came to computers, and it took a while for to

136
00:06:04,160 --> 00:06:06,520
Speaker 2: show up in productivity, like ten fifteen years, you know,

137
00:06:06,720 --> 00:06:09,120
Speaker 2: it mightn't take that long for to really show up in,

138
00:06:09,120 --> 00:06:10,200
Speaker 2: for example, productivity.

139
00:06:10,600 --> 00:06:13,200
Speaker 3: So we don't we don't think so because we already

140
00:06:13,200 --> 00:06:16,680
Speaker 3: think it is showing up in productivity. You know, I'm

141
00:06:16,720 --> 00:06:20,320
Speaker 3: writing a new book, and I put into my chatster

142
00:06:21,240 --> 00:06:23,440
Speaker 3: what would be a title that you would name Anthony

143
00:06:23,520 --> 00:06:26,359
Speaker 3: Scaramucci's new book. Some of them are quite cheap that

144
00:06:26,400 --> 00:06:30,040
Speaker 3: I didn't like them, like yeah, but some of them

145
00:06:30,080 --> 00:06:32,479
Speaker 3: are quite good, And that would have been three hours

146
00:06:32,480 --> 00:06:34,840
Speaker 3: of brainstorming. I submitted those of my publisher. They pick

147
00:06:34,920 --> 00:06:37,440
Speaker 3: one of them and off we go. And so you

148
00:06:37,440 --> 00:06:42,320
Speaker 3: you can find yourself in a brain blocking moment and

149
00:06:42,360 --> 00:06:45,599
Speaker 3: you can turn on one of these technologies and you

150
00:06:45,600 --> 00:06:46,440
Speaker 3: could have a breakthrough.

151
00:06:46,960 --> 00:06:48,800
Speaker 2: Well, we'll wait for that book a eagerly.

152
00:06:48,880 --> 00:06:52,720
Speaker 3: Actually, Anthony hopefully hopefully invite me back, will being on

153
00:06:53,120 --> 00:06:53,719
Speaker 3: lastree Week.

154
00:06:53,800 --> 00:06:57,840
Speaker 2: Thanks so much, Anthony, Sarahmuccie. He's Skybridge founder and managing director.