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Speaker 1: Global business news twenty four hours a day. That's Bloomberg

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Speaker 1: this is a Bloomberg Business Flash and I'm Karin Moscow.

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Speaker 1: There's updates brought to you. Buy Sector Spider e t F.

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Speaker 1: So why buy a single stock when you can invest

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Speaker 1: in the entire sector? Visits Sector sp d r s

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Speaker 1: There is a headline crossing the Bloomberg alley. Bamba is

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Speaker 1: said to be in talks with the banks for up

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Speaker 1: to a four billion dollar loan, and that's according to

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Speaker 1: the Wall Street Journal. Stocks are rallying around the world

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Speaker 1: this morning, Oil gaining with industrial medals as China Central

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Speaker 1: Bank said it sees room for monetary easing and the

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Speaker 1: build up to Group of twenty Finance Chiefs discussions on

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Speaker 1: the global economy. SNP eveny futures of nine points now

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Speaker 1: even the futures up seventy six and nash doc eveny

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Speaker 1: future is up twenty five tacks. In Germany's up one

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Speaker 1: point three percent, ten your treasury down three thirty seconds,

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Speaker 1: the yield one point seven two percent. Ni'm ex screwed

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Speaker 1: oil up one and a quarter per center forty one

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Speaker 1: cents to thirty three forty eight. A barrel comics gold

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Speaker 1: is little change, down eighty cents to twelve thirty eight

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Speaker 1: ten announced the euro a dollar ten twenty nine again

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Speaker 1: one twelve point seven nine. And that's a Bloomberg business flash.

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Speaker 1: Tom and Mike Karen, thanks so much. I'm glad you

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Speaker 1: mentioned at Ali Baba headline. It came across folks. You

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Speaker 1: see stuff coming across the Bloomberg and you go, oh, Mike.

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Speaker 1: In dollar terms, they have something in the vicinity of

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Speaker 1: eight point two billion in debt, So a four billion

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Speaker 1: dollar overlay is a tangible amount of money. That's where

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Speaker 1: I was going here. I think that's something worth looking

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Speaker 1: into next week. Ali Baba looking for four billion dollars story.

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Speaker 1: This is from the Wall Street Journal, and uh, ali

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Speaker 1: Baba not being in America. If we're an American company,

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Speaker 1: you would say they probably have profits trapped overseas, so

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Speaker 1: they want to borrow against those. You know what the

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Speaker 1: story is. Well, I'm not saying it's the farious. I'm

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Speaker 1: just saying that why they're doing it, I don't understand. Well,

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Speaker 1: rip up the script. Robert Hormetz with us with his

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Speaker 1: decades of experience in China. Jack Ma was at the

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Speaker 1: Economic Club of New York and it's not that long ago,

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Speaker 1: and it was it was it was almost messionic or whatever.

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Speaker 1: Tell me about your perception as an expert on international

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Speaker 1: relations of the capitalism of Mr Mama. Well, I think

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Speaker 1: he is a very innovative guy, and he's trying to

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Speaker 1: strengthen the the capitalistic environment in China, for sure, and

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Speaker 1: he is one of the very biggest, probably the biggest

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Speaker 1: private company in China today and one of the most international.

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Speaker 1: But he's really working very hard to make that a

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Speaker 1: global company. That was what he was saying at the

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Speaker 1: Economic Club that over paid time, more and more people,

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Speaker 1: pretty younger people are going to use e commerce in

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Speaker 1: the way he has set it out in his mind.

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Speaker 1: And then that's something you've been so good at, is

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Speaker 1: ungenerational shifts, whether it's Japan or Russia. What is the

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Speaker 1: generational shift you within China? That is really the key

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Speaker 1: point he made. I'm glad you raised that. I think

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Speaker 1: what he was saying was two things. One, Chinese don't

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Speaker 1: have big malls like we do. So when younger generations

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Speaker 1: emerge in China and want to do business. They're not

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Speaker 1: going to go to a mall and congregate because there

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Speaker 1: they don't have them in China to anything to degree

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Speaker 1: we do. So they're going to use an international cyber mall,

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Speaker 1: which is an e mall, which is the kind of

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Speaker 1: thing he is he's developing. So and he's also saying

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Speaker 1: in the United States, increasingly younger Americans are going to

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Speaker 1: see the Internet as the prime vehicle for shopping, and

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Speaker 1: businesses are going to see it in the same way.

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Speaker 1: So he's very really talking about an intergenerational change, not

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Speaker 1: only in China but elsewhere, and that would play to

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Speaker 1: the strengths of Ali Obama but also other companies like

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Speaker 1: Amazon and eBay. Mike, I never thought we'd do security

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Speaker 1: analysis in Ali Bobma with Boba hormets. Yeah, it's a great,

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Speaker 1: beautiful uh. But but I want to follow on China

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Speaker 1: because you were noting the comments from the Chinese. Is

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Speaker 1: the G twenty meeting gets under way, seemed to be

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Speaker 1: very different from in the past. They normally don't talk

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Speaker 1: about monetary policy. Is forthrightly, I think it's very interesting

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Speaker 1: how the Chinese have worked very hard to improve their

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Speaker 1: communications skills to the market I think they realized in

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Speaker 1: the past that they needed improvement, and I think they

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Speaker 1: have done this, you know, Loji way, the Finance minister

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Speaker 1: has been doing that. Joan Government Central Bank has been

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Speaker 1: trying to understand better how to work with and and

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Speaker 1: signal to the market in much the same way that

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Speaker 1: the FED or the e c B do Um Jiguangal,

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Speaker 1: the Deputy Finance Minister, has talked about the fact that

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Speaker 1: China is now focusing a lot more own market communication.

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Speaker 1: I think they've come to understand that that is part

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Speaker 1: of managing a very complicated economy to give signals to

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Speaker 1: the market. And Jack Lewis said, if you don't give

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Speaker 1: signals to the market, the market will develop its own

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Speaker 1: ideas of what you're doing. And I think the Chinese

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Speaker 1: are They're very quick learners and they're very smart, and

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Speaker 1: I think they have come to conclude that they need

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Speaker 1: to look at this experience of the past to figure

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Speaker 1: out how to do it better when you're running a

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Speaker 1: complicated and increasing global economy. I give them credit for

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Speaker 1: being a very quick group of learners, and I think

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Speaker 1: they've they've they've expressed that at this i F meeting,

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Speaker 1: and I think we'll see more of this in the

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Speaker 1: G twenty meeting. Tommy, you wanted to ask about Iran,

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Speaker 1: I didn't want to ask about I Ran. You've got

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Speaker 1: an incredibly totally typical Robert Hormat's effort, where paragraph by paragraph,

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Speaker 1: I was learning about the strength and diversity of Iran.

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Speaker 1: Is they face a new world? I was thunderstruck at

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Speaker 1: your educational statistics on Iran. As you're right for the

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Speaker 1: Atlantic Council. What did you learn in putting together this piece?

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Speaker 1: When I was at State, I spent a lot of

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Speaker 1: time trying to understand the Iranian economy because at that

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Speaker 1: point we were imposing sanctions on them on a variety

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Speaker 1: of things, so I really wanted to understand what's going

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Speaker 1: on there. The interesting thing about Iran is it's not

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Speaker 1: a monolithic government or monolithic economy. It's run by clerics,

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Speaker 1: but they're also reformers. There's Rohani and a number of

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Speaker 1: people who want to open up the economy more and

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Speaker 1: foreign investors who are looking to invest in Iran. Now

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Speaker 1: under the current sanctions, most American companies can't trade with

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Speaker 1: Iran and can't invest with Iran, but Europeans and American

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Speaker 1: subs and Japanese and others can and what they'll find

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Speaker 1: is I put point out in the report is first

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Speaker 1: of all, there are a lot of very talented people

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Speaker 1: in STEMS and science, technology, engineering, mathematics. They're very well trained.

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Speaker 1: It's a very very innovative workforce. Many of them don't

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Speaker 1: have jobs, so they want more foreign investment, at least

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Speaker 1: the reformers to absorb these unemployed people. On the other hand,

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Speaker 1: when they go there, they're going to find that a

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Speaker 1: large portion of the economy for the moment is totally opaque.

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Speaker 1: And you have a lot of companies that are controlled

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Speaker 1: by members of the Revolutionary Guard and the Guard itself,

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Speaker 1: or these bonyards which are religious foundations. So and many

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Speaker 1: of the entities there are on the Specially Designated Names List,

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Speaker 1: which means you can't deal with them for fear of

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Speaker 1: being penalized by U S sanctions. We are out of time,

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Speaker 1: which is always the case with Bob Warman's please come back,

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Speaker 1: Please don't trumps with Kissinger Associates. The headline across the

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Speaker 1: Bloomberg will have much more on this Nissan of Japan's

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Speaker 1: that's a four dred billion yen buy back Renault in

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Speaker 1: Europe in France will go out and sell shares to

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Speaker 1: the market. This is Bloomberg surveillance. Bloomberg surveillance has brought

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Speaker 1: more at c I T dot com. With knowledge to work,