1 00:00:09,880 --> 00:00:13,800 Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane Jay Lee. 2 00:00:13,960 --> 00:00:17,560 Speaker 1: We bring you insight from the best in economics, finance, investment, 3 00:00:18,000 --> 00:00:23,520 Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 4 00:00:23,600 --> 00:00:27,440 Speaker 1: Bloomberg dot Com, and of course on the Bloomberg. This 5 00:00:27,600 --> 00:00:30,640 Speaker 1: is Blomberg Surveillance. I'm Shinnali Bassek and joining me now 6 00:00:30,760 --> 00:00:33,640 Speaker 1: is Ken Mullis, CEO of Mullets and Company. Thank you 7 00:00:33,720 --> 00:00:36,080 Speaker 1: so much for joining us. Ken, great to be here. 8 00:00:36,280 --> 00:00:39,000 Speaker 1: So you've been on a world tour. You just came 9 00:00:39,040 --> 00:00:41,080 Speaker 1: back from Russia where you had a panel with Putin. 10 00:00:41,560 --> 00:00:44,960 Speaker 1: What was the big takeaway? What was interesting? You know, 11 00:00:45,040 --> 00:00:47,680 Speaker 1: it's hard to get good information, and you do these 12 00:00:47,680 --> 00:00:50,400 Speaker 1: things because my job is to get as much information 13 00:00:50,400 --> 00:00:52,960 Speaker 1: about the global economy as you can. So there was 14 00:00:52,960 --> 00:00:55,040 Speaker 1: a lot of takeaways about it, just getting up to 15 00:00:55,080 --> 00:00:57,320 Speaker 1: speed on on on the Moscow economy and how the 16 00:00:57,360 --> 00:01:00,320 Speaker 1: sanctions are affecting you know, what they're doing. UM. So 17 00:01:00,440 --> 00:01:03,560 Speaker 1: I thought it was good to um put that information 18 00:01:03,600 --> 00:01:05,240 Speaker 1: in the back of your mind and keep it in 19 00:01:05,360 --> 00:01:08,919 Speaker 1: mind as your advice companies. Are they the next place 20 00:01:09,000 --> 00:01:11,959 Speaker 1: for you to be doing the next big deal? No, No, 21 00:01:12,600 --> 00:01:15,520 Speaker 1: Russia is long. I think it's a while in the future, 22 00:01:15,680 --> 00:01:18,200 Speaker 1: but look, it's a long life. I've been doing this 23 00:01:18,240 --> 00:01:22,000 Speaker 1: forty years, and you know, friends last, long time, loyalties, 24 00:01:22,040 --> 00:01:24,920 Speaker 1: you get to know people, um and and look, it's 25 00:01:24,959 --> 00:01:27,760 Speaker 1: a long time. I think before an American company will 26 00:01:27,800 --> 00:01:31,840 Speaker 1: be Russia will be investable. But someday maybe you are 27 00:01:31,880 --> 00:01:34,119 Speaker 1: also recently in spending a lot of time in Hong 28 00:01:34,200 --> 00:01:36,959 Speaker 1: Kong with the Hong Kong Stock Exchange proposed takeover of 29 00:01:37,000 --> 00:01:40,479 Speaker 1: the London Stock Exchange. What is the tone there right now? 30 00:01:40,640 --> 00:01:43,200 Speaker 1: Are you worried about what's going on there. I've been 31 00:01:43,240 --> 00:01:44,520 Speaker 1: around the world a lot. I haven't been to Hong 32 00:01:44,600 --> 00:01:47,440 Speaker 1: Kong in a while, but look, what's happening in Hong 33 00:01:47,520 --> 00:01:52,480 Speaker 1: Kong is definitely uh concerning. But again the world it's 34 00:01:52,520 --> 00:01:55,480 Speaker 1: gonna be uh. I think would happen with Trump and 35 00:01:55,840 --> 00:01:58,560 Speaker 1: the China and the trade war calming down will be positive. 36 00:01:59,160 --> 00:02:01,680 Speaker 1: Um And again, things are long. These there's a lot 37 00:02:01,680 --> 00:02:03,760 Speaker 1: of issues you go back over. Again. I've been doing 38 00:02:03,760 --> 00:02:06,960 Speaker 1: this forty years. There's always been major issues, but we 39 00:02:07,240 --> 00:02:09,440 Speaker 1: tend to get through these. And actually business is one 40 00:02:09,440 --> 00:02:12,160 Speaker 1: of the key events that keeps peace and things moving 41 00:02:12,160 --> 00:02:16,160 Speaker 1: in the world. People in business want to do transactions 42 00:02:16,200 --> 00:02:17,840 Speaker 1: with each other, want to get to know each other, 43 00:02:17,840 --> 00:02:20,840 Speaker 1: and it kind of supersedes the cycle of almost politics. 44 00:02:20,880 --> 00:02:23,000 Speaker 1: By the way, with so much time in Russia and 45 00:02:23,120 --> 00:02:25,000 Speaker 1: China right now, what does that say about where you 46 00:02:25,040 --> 00:02:27,959 Speaker 1: think power is shifting in the world. We don't overdue 47 00:02:27,960 --> 00:02:29,639 Speaker 1: to Rush. I was there for a brief time to 48 00:02:30,120 --> 00:02:33,960 Speaker 1: you know, to get some information. Um, look, it's it's 49 00:02:34,480 --> 00:02:37,120 Speaker 1: there's obviously China is important, but you know it's interestingly 50 00:02:37,240 --> 00:02:39,560 Speaker 1: just thinking about the United States was twenty three percent 51 00:02:39,600 --> 00:02:42,239 Speaker 1: of world GDP ten years ago. And if you would 52 00:02:42,240 --> 00:02:44,160 Speaker 1: have bet that the United States would have been larger 53 00:02:44,240 --> 00:02:46,800 Speaker 1: or smaller, given the rise of the bricks and all 54 00:02:46,800 --> 00:02:50,880 Speaker 1: those economies, I think we're up to. So there's a 55 00:02:50,919 --> 00:02:53,720 Speaker 1: lot of handwringing in the United States, but we went 56 00:02:53,760 --> 00:02:57,320 Speaker 1: from twenty three of world g d P. The US 57 00:02:57,360 --> 00:03:00,760 Speaker 1: has great laws, it's got a great capital markets, it's 58 00:03:00,800 --> 00:03:04,640 Speaker 1: got innovation. It's still a tremendous place. When you listen 59 00:03:04,680 --> 00:03:07,440 Speaker 1: to Trump speak this weekend, you know Trump, right, you've 60 00:03:07,440 --> 00:03:11,920 Speaker 1: worked for Donald Trump before. How our world leaders receiving 61 00:03:11,960 --> 00:03:17,240 Speaker 1: his message here? And Dave us, Well, look, they receive 62 00:03:17,280 --> 00:03:19,280 Speaker 1: it in different ways. But I think the thing that 63 00:03:19,280 --> 00:03:21,120 Speaker 1: that he did do, that President Trump did when he 64 00:03:21,160 --> 00:03:23,800 Speaker 1: got here was at least very carefully tell the story. 65 00:03:23,919 --> 00:03:25,600 Speaker 1: And it's hard to get it sometimes that the U. S. 66 00:03:25,639 --> 00:03:29,200 Speaker 1: Economy is booming. We do have three percent unemployment. There 67 00:03:29,200 --> 00:03:32,200 Speaker 1: are so many good things going on. We are deregulating, 68 00:03:32,240 --> 00:03:35,920 Speaker 1: there are lots of things in the policies that are 69 00:03:35,960 --> 00:03:40,240 Speaker 1: generating substantial rewards for business and people and and for everybody. 70 00:03:40,360 --> 00:03:42,360 Speaker 1: And I know sometimes you can get caught up in 71 00:03:42,400 --> 00:03:45,080 Speaker 1: the tweets and the presentations, but if you, if you really, 72 00:03:45,680 --> 00:03:47,680 Speaker 1: and I think he did a good job of just 73 00:03:48,040 --> 00:03:51,360 Speaker 1: calming that down and saying, look what we're accomplishing. And 74 00:03:52,160 --> 00:03:54,320 Speaker 1: I do think the policies have been good for business. 75 00:03:54,640 --> 00:03:56,520 Speaker 1: What do you think his prospects are? Given that you 76 00:03:56,760 --> 00:03:59,320 Speaker 1: called his last election, what do you think his prospects 77 00:03:59,320 --> 00:04:02,360 Speaker 1: are for this upcoming one? Look, it's too early to tell. 78 00:04:02,480 --> 00:04:04,360 Speaker 1: We don't have a candidate. You know, in order to 79 00:04:04,400 --> 00:04:06,680 Speaker 1: call a good fight, you have to know who you're who, 80 00:04:06,680 --> 00:04:08,320 Speaker 1: the who the other side is. So I'm want to 81 00:04:08,360 --> 00:04:10,800 Speaker 1: wait on that. I think I think there's lots to 82 00:04:10,840 --> 00:04:14,560 Speaker 1: go in the in the primaries, and lots of stories 83 00:04:14,600 --> 00:04:16,520 Speaker 1: to be told over the next six or seven months. 84 00:04:16,560 --> 00:04:18,839 Speaker 1: I'll wait, wait, let's wait and see who it's between. 85 00:04:19,040 --> 00:04:21,680 Speaker 1: The other thing that everyone's talking about here in Davos, 86 00:04:21,720 --> 00:04:25,040 Speaker 1: at least publicly, is sustainability and green initiatives. But three 87 00:04:25,040 --> 00:04:27,280 Speaker 1: times just today I've had bankers tell me that we're 88 00:04:27,279 --> 00:04:30,160 Speaker 1: talking about green too much here, and so I'm kind 89 00:04:30,200 --> 00:04:32,800 Speaker 1: of wondering what you're hearing. What do you think is 90 00:04:32,839 --> 00:04:36,760 Speaker 1: the opportunity or is it realistic for the financial industry 91 00:04:36,839 --> 00:04:39,200 Speaker 1: and black Rock, which is leading the charge here to 92 00:04:39,360 --> 00:04:43,560 Speaker 1: make real change. So that's a complicated question. And let 93 00:04:43,560 --> 00:04:45,839 Speaker 1: me say this. Look, we have to advise our clients 94 00:04:45,839 --> 00:04:48,839 Speaker 1: on how to navigate in an environment where look, E. S. 95 00:04:48,920 --> 00:04:51,640 Speaker 1: G and all. An environment is going to be part 96 00:04:51,680 --> 00:04:56,640 Speaker 1: of what they're held accountable for. Now, does sometimes Davos 97 00:04:57,080 --> 00:05:00,640 Speaker 1: go overboard on some of the requirements things that they're 98 00:05:00,640 --> 00:05:03,360 Speaker 1: talking about. Sure, people ask me why go to Davis, 99 00:05:03,360 --> 00:05:06,240 Speaker 1: and I say, sometimes to find out exactly what the 100 00:05:06,279 --> 00:05:10,000 Speaker 1: consensus is so I know what won't happen and and 101 00:05:10,080 --> 00:05:14,120 Speaker 1: do the opposite. Um, because you know it's an extremely 102 00:05:14,240 --> 00:05:18,280 Speaker 1: consensus atmosphere here and um, but look, people are gonna 103 00:05:18,279 --> 00:05:21,400 Speaker 1: have to deal with the fact that large institutions like 104 00:05:21,480 --> 00:05:25,440 Speaker 1: black Rock and and like rating agencies and and government 105 00:05:25,480 --> 00:05:31,880 Speaker 1: institutions will be monitoring certain environmental social governance checklist and 106 00:05:31,920 --> 00:05:33,880 Speaker 1: we're gonna have to we're gonna have to help our 107 00:05:33,920 --> 00:05:36,320 Speaker 1: clients through that. Well, you advised a romco. Where does 108 00:05:36,320 --> 00:05:40,640 Speaker 1: that fit into the situation here? Look, the world is 109 00:05:40,640 --> 00:05:43,400 Speaker 1: going to continue to use and need cheap energy. You know, 110 00:05:43,400 --> 00:05:46,160 Speaker 1: there's five hundred million Europeans, there's three hundred million Americans, 111 00:05:46,160 --> 00:05:48,880 Speaker 1: three fifty. There's six or seven billion people in the 112 00:05:48,880 --> 00:05:52,560 Speaker 1: world who still are are struggling, and the access to 113 00:05:52,680 --> 00:05:58,040 Speaker 1: cheap fossil feels it. Look, it's it's their life, you know, India, China, Africa, 114 00:05:58,080 --> 00:06:00,880 Speaker 1: They're not They're not gonna They're not as worried about 115 00:06:00,960 --> 00:06:03,400 Speaker 1: the environment yet as they are about you know, making 116 00:06:03,640 --> 00:06:08,720 Speaker 1: ends meet and and and life. So I think the 117 00:06:08,760 --> 00:06:11,960 Speaker 1: fact that what worries me about this is the severe 118 00:06:12,120 --> 00:06:15,560 Speaker 1: pressure on fossil fuels and the severe pressure not to 119 00:06:15,640 --> 00:06:20,200 Speaker 1: invest in developed countries I think might lead to a 120 00:06:20,240 --> 00:06:24,159 Speaker 1: shortage sooner than we think. Ken real quick, what do 121 00:06:24,200 --> 00:06:27,240 Speaker 1: you think the next big market risk is? As we're 122 00:06:27,240 --> 00:06:31,040 Speaker 1: sitting down us today. Look, I just think markets are 123 00:06:31,120 --> 00:06:33,440 Speaker 1: priced pretty much for perfection. And you don't have to know. 124 00:06:33,560 --> 00:06:36,240 Speaker 1: This is on my I've learned over many years people 125 00:06:36,279 --> 00:06:39,680 Speaker 1: spend too much time trying to predict the event. All 126 00:06:39,720 --> 00:06:41,200 Speaker 1: you have to do is know that there probably will 127 00:06:41,320 --> 00:06:43,440 Speaker 1: be one. I've learned you don't have to know what 128 00:06:43,480 --> 00:06:45,640 Speaker 1: it is. You just have to know that one will 129 00:06:45,720 --> 00:06:51,000 Speaker 1: happen this year. You know, maybe this year. But look, 130 00:06:51,240 --> 00:06:53,120 Speaker 1: I was saying today, if Lehman Brothers had made it 131 00:06:53,120 --> 00:06:55,080 Speaker 1: through that one market that one year, they'd probably be 132 00:06:55,080 --> 00:06:57,440 Speaker 1: a hundred fifty billion dollar market cap company today. So 133 00:06:57,480 --> 00:06:59,680 Speaker 1: you can't get taken out. You have to know that 134 00:06:59,800 --> 00:07:03,040 Speaker 1: risk is possible, um and you have to plan for it. 135 00:07:03,480 --> 00:07:06,680 Speaker 1: And but you don't know exactly what the risk is. 136 00:07:06,720 --> 00:07:08,719 Speaker 1: You just have to know you can survive it. Ken, 137 00:07:08,839 --> 00:07:22,720 Speaker 1: thank you so much for joining us. Here's the evident idea. 138 00:07:23,000 --> 00:07:25,360 Speaker 1: You can talk all you want up a happy valley 139 00:07:25,360 --> 00:07:28,480 Speaker 1: in Switzerland, you've got to go out there and do it. 140 00:07:28,560 --> 00:07:31,160 Speaker 1: And if you do it, you've got to move it. 141 00:07:31,360 --> 00:07:34,400 Speaker 1: And the obvious most visible thing out there to move 142 00:07:34,440 --> 00:07:39,120 Speaker 1: it is something for Liverpool football fields long and what 143 00:07:39,400 --> 00:07:42,200 Speaker 1: is it truly a football field? Why are you speaking 144 00:07:42,240 --> 00:07:45,440 Speaker 1: of the MAXX tripling. This would be the boat, the boats, 145 00:07:45,480 --> 00:07:48,520 Speaker 1: the ships that move all this stuff around. To me, 146 00:07:48,600 --> 00:07:51,480 Speaker 1: the most articulate voice on this and shipping and serious 147 00:07:51,600 --> 00:07:54,960 Speaker 1: idea of climate change and the logistics and trade of 148 00:07:55,000 --> 00:07:58,000 Speaker 1: the world, as Mr School of Marri's the chief executive 149 00:07:58,040 --> 00:08:00,640 Speaker 1: officers Sore and School joins us. Uh. Now we talked 150 00:08:00,680 --> 00:08:03,640 Speaker 1: often in London, thrilled they have you here. How do 151 00:08:03,720 --> 00:08:08,400 Speaker 1: you respond to the visible lads are climate change who 152 00:08:08,440 --> 00:08:11,000 Speaker 1: don't realize you've got to get the boxes in Asia 153 00:08:11,280 --> 00:08:14,400 Speaker 1: from point A to point B. Well, first, I always 154 00:08:14,440 --> 00:08:17,720 Speaker 1: say that the shipping is actually the most environmentally free 155 00:08:18,520 --> 00:08:21,840 Speaker 1: in my mentorly way of moving any any type of good. 156 00:08:21,920 --> 00:08:24,560 Speaker 1: So the c U two emission that we have any 157 00:08:24,560 --> 00:08:26,960 Speaker 1: ton of good move this is quite low compared to 158 00:08:27,560 --> 00:08:31,720 Speaker 1: road and rail and air. But we still take on 159 00:08:32,040 --> 00:08:35,120 Speaker 1: the channels. Are wanting to reduce our CU two footprint, 160 00:08:35,160 --> 00:08:37,960 Speaker 1: and we have articulated more than a year ago an 161 00:08:37,960 --> 00:08:41,079 Speaker 1: ambusites to get to zero c U two by by 162 00:08:41,120 --> 00:08:44,120 Speaker 1: twenty fifty, and we have solid plans for how to 163 00:08:44,200 --> 00:08:45,559 Speaker 1: get How do you plan to do that? Talk to 164 00:08:45,600 --> 00:08:47,920 Speaker 1: us about those plans. Well, we want to find it. 165 00:08:48,280 --> 00:08:49,720 Speaker 1: I mean, the obviously is we need to find it 166 00:08:49,760 --> 00:08:52,720 Speaker 1: a different kind of fuel, and we believe that we 167 00:08:52,720 --> 00:08:59,040 Speaker 1: we have fuels that are probable, alcohols, ammonia, bio method 168 00:08:59,160 --> 00:09:02,600 Speaker 1: that can be used on eternative sources. It's important because 169 00:09:02,600 --> 00:09:04,839 Speaker 1: it's about the field and not about a ship. Because 170 00:09:04,840 --> 00:09:06,480 Speaker 1: you're in a really, really tough spot. You have to 171 00:09:06,520 --> 00:09:09,400 Speaker 1: plan a decade multi multi decades ahead from where you 172 00:09:09,400 --> 00:09:11,040 Speaker 1: are right now. So it's not a simplest thaying we're 173 00:09:11,040 --> 00:09:13,600 Speaker 1: going to build a whole load of new ships. Won't 174 00:09:13,640 --> 00:09:16,440 Speaker 1: me throw the strategic thinking around issues like that? Well, 175 00:09:16,520 --> 00:09:19,880 Speaker 1: we we believe first of all that we're having a 176 00:09:19,880 --> 00:09:23,240 Speaker 1: responsibility as a leader in the industry to drive the agenda. Secondly, 177 00:09:23,520 --> 00:09:26,200 Speaker 1: as you say, you know we we we we own 178 00:09:26,280 --> 00:09:28,680 Speaker 1: assets that have a twenty five year lifespan. I cannot 179 00:09:28,679 --> 00:09:30,920 Speaker 1: be caught up by a regulation that tells me to 180 00:09:30,960 --> 00:09:34,120 Speaker 1: do something completely different when i'm when I'm when when 181 00:09:34,160 --> 00:09:36,800 Speaker 1: we operate sim more than seven hunted ships. So so 182 00:09:36,840 --> 00:09:39,920 Speaker 1: we need to we need to think ahead. You are 183 00:09:39,960 --> 00:09:43,080 Speaker 1: a front and center in this new world. Someone suggested 184 00:09:43,160 --> 00:09:46,920 Speaker 1: President Trump has moved aggressively from a multilateral, merisk world 185 00:09:46,960 --> 00:09:50,640 Speaker 1: where trade gets done to some form of bilateral world. 186 00:09:50,880 --> 00:09:55,439 Speaker 1: Are almost Americ until system. How is your business changed 187 00:09:55,679 --> 00:09:59,120 Speaker 1: with not the trade war, but the many trades were 188 00:09:59,200 --> 00:10:03,200 Speaker 1: the new trade Daniel mccows have changed well. Clearly growth 189 00:10:03,280 --> 00:10:06,760 Speaker 1: is down up to the financial crisis twenty five years. 190 00:10:06,840 --> 00:10:09,800 Speaker 1: Leading up to the financial crisis ten years ago, trade 191 00:10:09,840 --> 00:10:13,840 Speaker 1: was growing seven eight per year, trade liberalization and so on. 192 00:10:14,200 --> 00:10:16,800 Speaker 1: And since then we've seen much lower levels of growth. 193 00:10:16,880 --> 00:10:19,240 Speaker 1: And then last year we believe probably in the numbers 194 00:10:19,240 --> 00:10:20,679 Speaker 1: when they all said and done, will come in a 195 00:10:21,000 --> 00:10:23,480 Speaker 1: slightly less than two percent growth. It's a very low number. 196 00:10:23,559 --> 00:10:25,640 Speaker 1: You expect that to pick up. You seeing improving business 197 00:10:25,640 --> 00:10:27,280 Speaker 1: in the new year. I I don't think that we 198 00:10:27,320 --> 00:10:29,520 Speaker 1: will see much higher trade growths. It's just going to 199 00:10:29,600 --> 00:10:31,640 Speaker 1: stay the same, despite the fact that we have some 200 00:10:31,720 --> 00:10:33,640 Speaker 1: kind of trade trade between the United States and China 201 00:10:33,720 --> 00:10:36,120 Speaker 1: and China, what we see in our numbers, based on 202 00:10:36,200 --> 00:10:38,640 Speaker 1: the commodities that are being shipped, is that actually all 203 00:10:38,679 --> 00:10:41,120 Speaker 1: of the consumer goods are holding up quite fine across 204 00:10:41,120 --> 00:10:43,600 Speaker 1: the world. It's the capital goods that are not moving. 205 00:10:43,600 --> 00:10:46,480 Speaker 1: And that's because business leaders like myself are worried about 206 00:10:46,480 --> 00:10:49,360 Speaker 1: the future and we invest list in your Denmark and folks, 207 00:10:49,440 --> 00:10:52,800 Speaker 1: I want to make clear Denmark is the space of economics, 208 00:10:52,800 --> 00:10:55,480 Speaker 1: of geography in the world. It's the best academics and 209 00:10:55,720 --> 00:10:57,920 Speaker 1: is that there is there is the geography of the 210 00:10:57,920 --> 00:11:02,040 Speaker 1: South China, see of Singapore, of Indonesia, and that romantic 211 00:11:02,160 --> 00:11:04,240 Speaker 1: straight that you're You've got to get your boats through 212 00:11:04,280 --> 00:11:07,200 Speaker 1: that straight at night at any time. That must be extraordinary. 213 00:11:07,360 --> 00:11:10,000 Speaker 1: Give us an update on the ability to move mayor's 214 00:11:10,040 --> 00:11:12,720 Speaker 1: ships from point A to point B in the South 215 00:11:12,800 --> 00:11:15,720 Speaker 1: China see in the Pacific. Today we are seeing no no, 216 00:11:15,720 --> 00:11:18,800 Speaker 1: no impediments or any restrictions or anything that we need 217 00:11:18,880 --> 00:11:21,640 Speaker 1: to be concerned about. You're right, the Malaga Strate between 218 00:11:21,679 --> 00:11:26,000 Speaker 1: single point Indonesia is a very narrow channel, but as 219 00:11:26,120 --> 00:11:28,280 Speaker 1: as of today, we don't see any problems there. You've 220 00:11:28,280 --> 00:11:31,080 Speaker 1: said trade is basically where it was last year done 221 00:11:31,080 --> 00:11:33,920 Speaker 1: when he said improving. Let's talk about rates. Contain a 222 00:11:34,000 --> 00:11:35,480 Speaker 1: rate you speaking to your big clients, what have they 223 00:11:35,480 --> 00:11:37,440 Speaker 1: said so far, what a race look like, and how 224 00:11:37,520 --> 00:11:39,560 Speaker 1: things going to evolve in a year ahead. Freight rates 225 00:11:39,559 --> 00:11:42,760 Speaker 1: have gone up quite substantially since the first of October 226 00:11:42,840 --> 00:11:45,280 Speaker 1: last year, mainly because we have switched over to a 227 00:11:45,280 --> 00:11:49,040 Speaker 1: cleaner fuel on the first of January and we're passing 228 00:11:49,080 --> 00:11:51,800 Speaker 1: that onto the through the customers. Well, well, let's cut 229 00:11:51,840 --> 00:11:53,760 Speaker 1: to the chase and we have to make some news here. 230 00:11:54,000 --> 00:11:57,600 Speaker 1: How do your customers receive the new invoice? Well, uh, 231 00:11:57,760 --> 00:12:00,280 Speaker 1: you know, it's always a procurement discussion. But at the 232 00:12:00,320 --> 00:12:02,200 Speaker 1: end of the day, I believe that many, many, many 233 00:12:02,240 --> 00:12:05,360 Speaker 1: of our customers recognized that it's good for everybody that 234 00:12:05,440 --> 00:12:08,480 Speaker 1: we go to a cleaner, cleaner fuel. Quick final question 235 00:12:08,559 --> 00:12:09,880 Speaker 1: just before we let you go, if we can get 236 00:12:09,880 --> 00:12:12,440 Speaker 1: the mess stock out there for people to just to 237 00:12:12,440 --> 00:12:14,480 Speaker 1: have a look at and for our listeners on radio, 238 00:12:14,480 --> 00:12:16,960 Speaker 1: I'm going to tell you it is several digits long. 239 00:12:17,679 --> 00:12:19,360 Speaker 1: Some people always ask me, when are they going to 240 00:12:19,400 --> 00:12:21,679 Speaker 1: do a stock split? What will Mess do a stock split? 241 00:12:21,800 --> 00:12:24,360 Speaker 1: This is getting ridiculous. Now we're gonna do a stock split. 242 00:12:25,240 --> 00:12:27,000 Speaker 1: I could just say we don't have any plans to 243 00:12:27,000 --> 00:12:29,640 Speaker 1: do a stock split. Okay, we'll leave it there. So 244 00:12:29,800 --> 00:12:32,520 Speaker 1: let's go of MESQ the CEO. Look at the numbers 245 00:12:33,200 --> 00:12:36,360 Speaker 1: for our listeners on on radio. Several digits long and 246 00:12:36,520 --> 00:12:39,319 Speaker 1: Danish kronaw we can do digits on the radio that 247 00:12:39,480 --> 00:12:55,000 Speaker 1: works about his plans for the future. The President of the 248 00:12:54,960 --> 00:12:56,800 Speaker 1: the United States just pulling a pin and loving a 249 00:12:56,840 --> 00:12:59,079 Speaker 1: grenade into this conference yesterday and it was a total 250 00:12:59,160 --> 00:13:01,199 Speaker 1: one eighty from what we thought we heard from the 251 00:13:01,240 --> 00:13:04,840 Speaker 1: administration the day before. We can get real reaction from 252 00:13:04,880 --> 00:13:08,680 Speaker 1: Europe now with Mark Rutter, the Dutch Prime minister. Primarister, 253 00:13:08,720 --> 00:13:11,800 Speaker 1: great to see your annual visit, Tom and myself is 254 00:13:11,840 --> 00:13:14,320 Speaker 1: great to see you. How do you respond to the 255 00:13:14,320 --> 00:13:17,760 Speaker 1: President of the United States? Positively because he also had 256 00:13:17,800 --> 00:13:20,760 Speaker 1: a fair successful meeting Urgin Vonderlay as he's a new 257 00:13:20,840 --> 00:13:23,960 Speaker 1: Your Your Commission president. They agreed that it was a 258 00:13:24,000 --> 00:13:26,040 Speaker 1: good meeting that he will continue to dialogue as soon 259 00:13:26,040 --> 00:13:29,400 Speaker 1: as possible. I've had myself many conversations with Trump on 260 00:13:29,600 --> 00:13:33,400 Speaker 1: trade and always found him very pragmatic and very practical. 261 00:13:33,840 --> 00:13:37,680 Speaker 1: He has his irritations about Europe. We have some issues 262 00:13:37,760 --> 00:13:40,079 Speaker 1: with the US, but that is not a problem. That's 263 00:13:40,120 --> 00:13:41,760 Speaker 1: why you have to negotiate. I think we can get 264 00:13:41,760 --> 00:13:43,360 Speaker 1: a deal done. I wonder if you're more annoyed with 265 00:13:43,400 --> 00:13:45,200 Speaker 1: France than you are the United States at the moment, 266 00:13:45,240 --> 00:13:47,400 Speaker 1: because it's the policies of France that are causing much 267 00:13:47,400 --> 00:13:50,240 Speaker 1: of the problems. Secretary Manuchin said the following this week, 268 00:13:50,360 --> 00:13:52,679 Speaker 1: if people want to just arbitrarily put taxes on our 269 00:13:52,679 --> 00:13:57,440 Speaker 1: digital companies. We will consider arbitrarily putting taxes on car companies. Yeah, 270 00:13:57,480 --> 00:14:00,320 Speaker 1: but that's a discussion about digital text. I think still 271 00:14:00,360 --> 00:14:02,760 Speaker 1: be to deal with the issue digital text in the 272 00:14:02,800 --> 00:14:05,600 Speaker 1: context of the O E c D. It can also 273 00:14:05,640 --> 00:14:08,360 Speaker 1: be part of the talks between the US and Europe. 274 00:14:08,400 --> 00:14:11,000 Speaker 1: But don't forget the US is the number one economy 275 00:14:11,040 --> 00:14:13,120 Speaker 1: the world and the most powerful country. But in terms 276 00:14:13,120 --> 00:14:16,080 Speaker 1: of overall economic science is Europe is bigger. We have 277 00:14:16,080 --> 00:14:18,320 Speaker 1: one a half times the science of the US. So 278 00:14:18,440 --> 00:14:20,920 Speaker 1: when they deal with China, it's not about first places 279 00:14:20,960 --> 00:14:23,320 Speaker 1: about second. But Prime Minister, you bring up a key point. 280 00:14:23,520 --> 00:14:28,040 Speaker 1: Montana has the same voice in President Trump is Mississippi. 281 00:14:28,280 --> 00:14:31,720 Speaker 1: There are many voices of your Europe. What is the 282 00:14:31,760 --> 00:14:35,160 Speaker 1: most efficacious way for Europe to speak to the President 283 00:14:35,200 --> 00:14:39,120 Speaker 1: of the United States and trade directly? And fourth ride 284 00:14:39,520 --> 00:14:42,720 Speaker 1: with Trump? You have to be clear the Strasbourg. I mean, 285 00:14:42,840 --> 00:14:45,680 Speaker 1: who's the voice that's going to set across the table 286 00:14:45,760 --> 00:14:48,360 Speaker 1: from the President that is pressident Jupean Commission, because this 287 00:14:48,480 --> 00:14:51,640 Speaker 1: is a European theme and we are united in the 288 00:14:51,640 --> 00:14:54,880 Speaker 1: European Union on trades. We always have one of one 289 00:14:54,880 --> 00:14:57,200 Speaker 1: of the few very successful things we're doing. I mean, 290 00:14:57,240 --> 00:15:01,000 Speaker 1: we have very many issues in climate change, migration, but 291 00:15:01,120 --> 00:15:04,040 Speaker 1: one of the consistently successful things we're dealing with this 292 00:15:04,120 --> 00:15:08,080 Speaker 1: European Union is trade, and we have to work in 293 00:15:08,160 --> 00:15:09,840 Speaker 1: with bon Force if you're doing that, also with the 294 00:15:10,000 --> 00:15:13,040 Speaker 1: UK when they're leaving from the end from next week onwards, 295 00:15:13,360 --> 00:15:15,200 Speaker 1: we have to create a new day deal. So impossible 296 00:15:15,200 --> 00:15:18,240 Speaker 1: optimistic about it because we know what is important for Trump, 297 00:15:18,280 --> 00:15:20,760 Speaker 1: we know what's important for it for Europe, and we 298 00:15:20,800 --> 00:15:24,200 Speaker 1: are both pragmatical. The retoric in the run up is 299 00:15:24,200 --> 00:15:25,840 Speaker 1: always part of the There are amazing things to do. 300 00:15:26,120 --> 00:15:28,440 Speaker 1: One of them is just look at the tariston autos. 301 00:15:28,520 --> 00:15:30,800 Speaker 1: If you import a car out of the United States 302 00:15:30,840 --> 00:15:34,000 Speaker 1: into Europe ten percent. If you import a passenger car 303 00:15:34,040 --> 00:15:35,960 Speaker 1: out of Europe into the United States, the tariff is 304 00:15:36,120 --> 00:15:42,320 Speaker 1: two and a half percent, but one which goes back deckhead. 305 00:15:42,560 --> 00:15:45,120 Speaker 1: Can we address this? Can we just equalize the whole thing? Well, 306 00:15:45,120 --> 00:15:47,440 Speaker 1: I discussed it the stream myself, and and and on 307 00:15:47,600 --> 00:15:50,080 Speaker 1: average it is about nine percent from a car coming 308 00:15:50,080 --> 00:15:52,080 Speaker 1: out of out of Europe, the two and a half 309 00:15:52,320 --> 00:15:54,720 Speaker 1: twenty five who together is about nine percent, and a 310 00:15:54,800 --> 00:15:56,720 Speaker 1: car coming out of the US is ten percent. So 311 00:15:56,800 --> 00:15:59,240 Speaker 1: it is already almost the same. This is not a 312 00:15:59,240 --> 00:16:01,480 Speaker 1: big issue. I think we can do with this is 313 00:16:02,280 --> 00:16:05,120 Speaker 1: before this morning. I want you to identify what the 314 00:16:05,200 --> 00:16:08,760 Speaker 1: new capitalism will be for Europe. The Dutch of letter 315 00:16:08,840 --> 00:16:12,360 Speaker 1: on capitalism for well in access of four hundred years 316 00:16:12,400 --> 00:16:15,480 Speaker 1: as well. Do you sense with the solution of Brexit, 317 00:16:15,560 --> 00:16:18,200 Speaker 1: do you sense with some form of trade agreement with 318 00:16:18,240 --> 00:16:21,560 Speaker 1: the United States a less multilateral approach, that there has 319 00:16:21,600 --> 00:16:24,400 Speaker 1: to be a new capitalism out of Europe and not 320 00:16:24,520 --> 00:16:26,800 Speaker 1: an attitude, not a new capitalists. But we have so 321 00:16:27,000 --> 00:16:30,120 Speaker 1: learned from the past. Dutch companies like Shell you don 322 00:16:30,240 --> 00:16:35,680 Speaker 1: leave Phillips. Actually they're always We're both successful internationally oriented companies, 323 00:16:35,680 --> 00:16:38,560 Speaker 1: but also very much rooted in the local communities in 324 00:16:38,600 --> 00:16:41,520 Speaker 1: the countries which they were serving. There still are. I'm 325 00:16:41,520 --> 00:16:44,400 Speaker 1: still very proud of these companies. Some of the companies 326 00:16:44,600 --> 00:16:49,080 Speaker 1: recently coming into place have less of a connection to 327 00:16:49,200 --> 00:16:53,600 Speaker 1: the local communities, do not fully realize that next to 328 00:16:53,640 --> 00:16:56,200 Speaker 1: making a nice profit, there's also sociential impact as a 329 00:16:56,240 --> 00:16:58,840 Speaker 1: company and the good you can do in terms of 330 00:16:59,040 --> 00:17:01,800 Speaker 1: making sure that and the changes the environment are not 331 00:17:01,800 --> 00:17:03,880 Speaker 1: taking place in a role you can play there and 332 00:17:03,960 --> 00:17:06,600 Speaker 1: I believe you shouldn't put more emphasised on emphasis on that. 333 00:17:06,880 --> 00:17:10,200 Speaker 1: John mentions the French and the challenges Mr McCraw has 334 00:17:10,240 --> 00:17:13,480 Speaker 1: domestically or the transition of power after the miracle era 335 00:17:13,840 --> 00:17:18,480 Speaker 1: in Germany. What part can the Netherlands play to provide 336 00:17:18,520 --> 00:17:24,800 Speaker 1: a center to Europe and more co co more coalessing capitalism. Well, 337 00:17:25,040 --> 00:17:27,359 Speaker 1: we believe that with the UK leaving, be one of 338 00:17:27,400 --> 00:17:31,280 Speaker 1: the countries with the most international outlook, the most trade oriented, 339 00:17:31,320 --> 00:17:35,000 Speaker 1: the most free enterprise oriented countries. We've worked very closely 340 00:17:35,000 --> 00:17:38,600 Speaker 1: together with the can Scandinavian EU countries, with the Baltic 341 00:17:38,600 --> 00:17:43,440 Speaker 1: country Stovenia, with Ireland, but also with Belgian and Luxembourg. 342 00:17:43,520 --> 00:17:46,520 Speaker 1: Within the Benelucks. That is a powerful group of countries 343 00:17:46,520 --> 00:17:50,879 Speaker 1: who all share this outlook on capitalism, on international trade. 344 00:17:50,880 --> 00:17:53,360 Speaker 1: At the same time, we have a strong political relationship 345 00:17:53,400 --> 00:17:55,720 Speaker 1: with Germany, which France was last week. In Italy, we 346 00:17:55,720 --> 00:17:59,200 Speaker 1: are building a strong relationship with the Italian government, a 347 00:17:59,640 --> 00:18:02,879 Speaker 1: violet relationship within the EU because this is needed to 348 00:18:02,960 --> 00:18:06,879 Speaker 1: maintain that that outlook on the world with the UK leaving. 349 00:18:07,080 --> 00:18:09,360 Speaker 1: We'll pushed for time, let's get the UK leaving into 350 00:18:09,359 --> 00:18:12,359 Speaker 1: the conversation. You're very pragmatic in fact, respectful of the 351 00:18:12,400 --> 00:18:15,320 Speaker 1: US administration, and that's encouraging about ultimately coming to a 352 00:18:15,359 --> 00:18:18,600 Speaker 1: positive outcome with the United States. Are you equally the 353 00:18:18,640 --> 00:18:20,840 Speaker 1: same with the UK At the moment, well, I have 354 00:18:20,920 --> 00:18:23,440 Speaker 1: pune warrior, and that is the time we have available 355 00:18:23,440 --> 00:18:26,679 Speaker 1: because they will leave formally next week, but basically they 356 00:18:26,720 --> 00:18:29,639 Speaker 1: won't leave at all. They will only leave the political structures. 357 00:18:29,880 --> 00:18:32,000 Speaker 1: They will still be part of everything else in the 358 00:18:32,000 --> 00:18:33,919 Speaker 1: EU till the end of the year. And in the 359 00:18:33,960 --> 00:18:36,879 Speaker 1: meantime we have to solve this trade deal. But for 360 00:18:36,920 --> 00:18:39,600 Speaker 1: this trade deal to be solved, we need to agree 361 00:18:39,600 --> 00:18:42,320 Speaker 1: on level playing field all the other issues. It's an 362 00:18:42,359 --> 00:18:46,280 Speaker 1: awfully short amount of time. So I hope that coming 363 00:18:46,400 --> 00:18:50,200 Speaker 1: next summer June July, that Boris Johnson will at least 364 00:18:50,200 --> 00:18:54,720 Speaker 1: contemplate extending, if necessary, this transition face. At the moment 365 00:18:54,720 --> 00:18:56,640 Speaker 1: he is not. At the moment, it's not. But also 366 00:18:56,720 --> 00:18:58,480 Speaker 1: here I would say, let's take this step by step, 367 00:18:58,520 --> 00:19:00,920 Speaker 1: and you just think it's inconceivable that you can come 368 00:19:00,960 --> 00:19:03,800 Speaker 1: to the trade but it's very difficult. So and then 369 00:19:03,840 --> 00:19:06,080 Speaker 1: you and there's there's still the risk in the worst 370 00:19:06,119 --> 00:19:08,359 Speaker 1: case that you have a cliff at scenario like we 371 00:19:08,560 --> 00:19:12,320 Speaker 1: had experienced last year. This is a nightmare scenario because 372 00:19:12,400 --> 00:19:15,240 Speaker 1: what we're gonna end up with the Heathrow is Virgil 373 00:19:15,320 --> 00:19:17,120 Speaker 1: van Dyke is not gonna be able to go through 374 00:19:17,200 --> 00:19:20,280 Speaker 1: customs exactly like he can. Now, let's bring it the 375 00:19:20,320 --> 00:19:22,879 Speaker 1: Gentleman for Britain Grandigan. He's got to get up to 376 00:19:22,960 --> 00:19:26,040 Speaker 1: Liverpool and there he is stuck at Heathrow in the 377 00:19:26,200 --> 00:19:33,080 Speaker 1: new unacceptable. He will return us audience, can we explain? Well? 378 00:19:33,119 --> 00:19:35,440 Speaker 1: I know who he is because I've been lecture greatest 379 00:19:35,640 --> 00:19:39,000 Speaker 1: center bank if football at the one of the great 380 00:19:39,040 --> 00:19:42,199 Speaker 1: players teams, the reason why we will win the European 381 00:19:42,280 --> 00:19:45,160 Speaker 1: champions You think you've got to absolutely not, really, no doubt. 382 00:19:45,240 --> 00:19:48,919 Speaker 1: A couple of injuries. This is a part of it 383 00:19:49,080 --> 00:19:52,600 Speaker 1: and they hopefully will be back in time. This goes 384 00:19:52,680 --> 00:19:54,920 Speaker 1: to the we're gonna have to talk about this later 385 00:19:55,040 --> 00:19:57,720 Speaker 1: on the Dutch Prime Minister's next visit to New York 386 00:19:57,720 --> 00:19:59,840 Speaker 1: and London. I just left. We have the Dutch Prime 387 00:20:00,000 --> 00:20:02,000 Speaker 1: stay with us and we end up talking about your 388 00:20:02,000 --> 00:20:04,800 Speaker 1: favorite topic. I love watching. It's like Aaron Judge of 389 00:20:04,800 --> 00:20:07,320 Speaker 1: the New York Game. He's not a body fantastic is 390 00:20:07,359 --> 00:20:10,280 Speaker 1: something else. Margaret's great to catch up with you once again, 391 00:20:10,880 --> 00:20:15,840 Speaker 1: the Dutch Prime Minister and damaged economic for minister does 392 00:20:15,880 --> 00:20:20,000 Speaker 1: not wait in line when he goes through special Privately, 393 00:20:20,160 --> 00:20:23,280 Speaker 1: I wait in line. When I would travel to Jos 394 00:20:23,359 --> 00:20:26,879 Speaker 1: official capacity, I would be well hovered around, But in 395 00:20:26,880 --> 00:20:28,640 Speaker 1: the private capacity I have to wait in the same 396 00:20:28,720 --> 00:20:42,119 Speaker 1: lineage pharaoh with us for a good conversation of the 397 00:20:42,160 --> 00:20:45,480 Speaker 1: international finance but also strength of the emerging markets and 398 00:20:45,480 --> 00:20:48,439 Speaker 1: some of the weaknesses. Is the chief executive of Standard Charged, 399 00:20:48,480 --> 00:20:51,240 Speaker 1: He's Bill Winters. As always, thank you so much for 400 00:20:51,359 --> 00:20:54,439 Speaker 1: joining us. We every time quisy on Hong Kong and 401 00:20:54,480 --> 00:20:57,840 Speaker 1: whether you've seen money flows, wealthy clients wanting to move 402 00:20:57,840 --> 00:21:00,840 Speaker 1: their bank accounts out, give us an update of First 403 00:21:00,840 --> 00:21:02,960 Speaker 1: of all, it nice to be here. Uh. Hong Kong's 404 00:21:02,960 --> 00:21:04,800 Speaker 1: in good shape, right, I mean, it was a horrific 405 00:21:05,160 --> 00:21:08,240 Speaker 1: six months uh and culminating in a really horrific period 406 00:21:08,240 --> 00:21:11,960 Speaker 1: of violence in December. Uh. But while the issues are 407 00:21:12,080 --> 00:21:14,280 Speaker 1: are as yet unresults and we know that so so 408 00:21:14,320 --> 00:21:17,080 Speaker 1: the idea that this is behind us would would be hopeful, 409 00:21:17,400 --> 00:21:21,679 Speaker 1: but night but pieces prevailing in Hong Kong, and that's 410 00:21:21,760 --> 00:21:24,359 Speaker 1: very encouraging. So what we saw through the through the 411 00:21:24,400 --> 00:21:26,760 Speaker 1: worst of the of the period was some people, frank 412 00:21:26,920 --> 00:21:29,760 Speaker 1: very few on a percentage basis, made some provisions to 413 00:21:29,840 --> 00:21:32,000 Speaker 1: move their money someways else opening an account in some 414 00:21:32,040 --> 00:21:35,359 Speaker 1: plays UH, but virtually none of them actually moved their money. 415 00:21:35,600 --> 00:21:38,399 Speaker 1: So so so so that the business activity has stayed 416 00:21:38,520 --> 00:21:40,440 Speaker 1: very strong in Hong Kong. So as Hong Kong is 417 00:21:40,480 --> 00:21:42,840 Speaker 1: a as a trading hub, Hong Kong is a financial center, 418 00:21:42,880 --> 00:21:44,320 Speaker 1: and we see it from the I p O calendars 419 00:21:44,320 --> 00:21:46,600 Speaker 1: and is very strong. And if they haven't missed a 420 00:21:46,600 --> 00:21:49,400 Speaker 1: beat in that regard, the hospitality of the retail sectors, 421 00:21:49,600 --> 00:21:52,680 Speaker 1: tourism have been severely impacted. It was a big chunk 422 00:21:52,680 --> 00:21:55,040 Speaker 1: of the tourism came from mainland China. It will take 423 00:21:55,080 --> 00:21:57,800 Speaker 1: a while for for them to come back. They had 424 00:21:57,800 --> 00:22:00,480 Speaker 1: a bad experience when they were in Hong Kong and 425 00:22:00,600 --> 00:22:02,400 Speaker 1: UH and the rest of the world has has stayed 426 00:22:02,400 --> 00:22:06,159 Speaker 1: away while things were unsettled. Now that that pieces is 427 00:22:06,480 --> 00:22:08,960 Speaker 1: breaking out, as it persists, as as we hope it does, 428 00:22:09,280 --> 00:22:10,840 Speaker 1: I think Hong Kong will get back to normal. And 429 00:22:11,080 --> 00:22:13,400 Speaker 1: over the course of this year. Moments ago, China has 430 00:22:13,440 --> 00:22:16,080 Speaker 1: taken steps to actually cancel some of the festivities, lunar 431 00:22:16,119 --> 00:22:19,480 Speaker 1: festivities because of the coronavirle is as a big chief 432 00:22:19,480 --> 00:22:22,520 Speaker 1: executive in the region. How do you monitor and and 433 00:22:22,560 --> 00:22:24,400 Speaker 1: how do you prepare for Well, it's concerning. I mean 434 00:22:24,400 --> 00:22:26,879 Speaker 1: we we first start by by making sure that that 435 00:22:26,920 --> 00:22:29,639 Speaker 1: our on colleagues are taking the proper precautions and safe 436 00:22:30,320 --> 00:22:32,480 Speaker 1: So you can imagine the level of anxiety is very 437 00:22:32,520 --> 00:22:34,760 Speaker 1: very high. If somebody gets a cold, now it's that 438 00:22:34,800 --> 00:22:36,639 Speaker 1: there's a question whether whether it's something much worse, and 439 00:22:36,680 --> 00:22:38,560 Speaker 1: that can cause the whole office to to lock down. 440 00:22:38,920 --> 00:22:41,680 Speaker 1: So that's uh, we start started home. Uh, we're trying 441 00:22:41,680 --> 00:22:43,879 Speaker 1: to stay very close to our clients, help them understand 442 00:22:43,920 --> 00:22:46,800 Speaker 1: what their exposures are. Obviously, people in the transportation and 443 00:22:46,920 --> 00:22:50,840 Speaker 1: and tourism industry themselves are at some risk within China, 444 00:22:51,160 --> 00:22:55,120 Speaker 1: especially coming into Chinese New Year, so trying to help 445 00:22:55,119 --> 00:22:57,760 Speaker 1: identify working capital needs or challenges. It will come up 446 00:22:58,160 --> 00:23:00,560 Speaker 1: if things progress as they have for the past twenty 447 00:23:00,600 --> 00:23:03,960 Speaker 1: four hours. Other than that, we were watching with the 448 00:23:03,960 --> 00:23:06,679 Speaker 1: rest of the world and hoping do you have operations 449 00:23:07,200 --> 00:23:10,840 Speaker 1: that could be directly affected. We do. My I was 450 00:23:11,040 --> 00:23:13,280 Speaker 1: intending to be in Uhan next week. I mean that 451 00:23:13,320 --> 00:23:15,280 Speaker 1: was we have we have a very substantial operation in 452 00:23:15,359 --> 00:23:17,640 Speaker 1: Muhan and Johan Chang and Jian you know, all through 453 00:23:17,640 --> 00:23:21,520 Speaker 1: Western China, and yes, or they're directly affected that. So 454 00:23:21,720 --> 00:23:24,879 Speaker 1: are you speaking with with health officials on the ground 455 00:23:24,880 --> 00:23:28,000 Speaker 1: there or my colleagues, my colleagues in China are speaking 456 00:23:28,000 --> 00:23:30,520 Speaker 1: with health officials continuously. But as as you've seen and 457 00:23:30,520 --> 00:23:33,200 Speaker 1: as you've reported, it's a very fast moving set of facts. 458 00:23:33,359 --> 00:23:36,160 Speaker 1: Even even today, we've we've had material new pieces of news. 459 00:23:37,080 --> 00:23:38,840 Speaker 1: But but we we we have our own intelligence on 460 00:23:38,840 --> 00:23:40,879 Speaker 1: the ground as well, from our clients and from our people, 461 00:23:40,920 --> 00:23:43,880 Speaker 1: and it's it's very consistent with what we're hearing from 462 00:23:43,880 --> 00:23:47,760 Speaker 1: the government. So I'm encouraged by this commitment to transparency. 463 00:23:48,400 --> 00:23:51,040 Speaker 1: I could only encourage it to continue. Are you encouraged 464 00:23:51,040 --> 00:23:54,080 Speaker 1: by US China Phase one deal or actually Phase one nothing, 465 00:23:54,119 --> 00:23:57,480 Speaker 1: because it's it's simply an understanding that you know, things 466 00:23:57,480 --> 00:24:01,200 Speaker 1: won't escalate. Fun It's encouraging because it's they demonstrated that 467 00:24:01,240 --> 00:24:04,119 Speaker 1: they can agree on something and it has stopped the 468 00:24:04,160 --> 00:24:06,800 Speaker 1: cycle of escalation. That's a good thing. There's a bit 469 00:24:06,840 --> 00:24:09,439 Speaker 1: of of of claw back in terms of tariffs and 470 00:24:09,440 --> 00:24:12,600 Speaker 1: protection of intellectual properties and opening up the financial services markets. 471 00:24:12,760 --> 00:24:15,199 Speaker 1: These are all good things. And does it solve the problem? No, 472 00:24:15,320 --> 00:24:17,640 Speaker 1: of course, not that the structural issues are still there, 473 00:24:18,080 --> 00:24:20,960 Speaker 1: but the fact that the two sides have demonstrated willing 474 00:24:21,000 --> 00:24:23,120 Speaker 1: us to agree on some things we have to take 475 00:24:23,200 --> 00:24:27,000 Speaker 1: is encouraging. Does it help statur charger when with the 476 00:24:27,040 --> 00:24:30,639 Speaker 1: tariffs going up there was no particular impact on header chargers, 477 00:24:30,680 --> 00:24:33,280 Speaker 1: so coming down there won't be either. What is what's 478 00:24:33,720 --> 00:24:37,199 Speaker 1: challenging is is the the prospect, the uncertainty around this 479 00:24:37,240 --> 00:24:41,080 Speaker 1: prospect of of a bifurcated world, with with our customers 480 00:24:41,080 --> 00:24:42,879 Speaker 1: and our clients not really knowing how much they have 481 00:24:42,920 --> 00:24:45,439 Speaker 1: to reconfigure their supply chains and which you don't know 482 00:24:45,480 --> 00:24:46,800 Speaker 1: what you need to do, you tend to prepare for 483 00:24:46,840 --> 00:24:49,560 Speaker 1: the worst, which usually means a lot of wasted cost 484 00:24:49,600 --> 00:24:53,440 Speaker 1: and investment. So so the the the increasing uncertainty was 485 00:24:53,480 --> 00:24:55,879 Speaker 1: a problem. It's come off a little bit, but the 486 00:24:55,920 --> 00:24:58,760 Speaker 1: uncertainty hasn't improved too much. President trumpus here yesterday. He 487 00:24:58,800 --> 00:25:00,639 Speaker 1: spoke to a number of business leaders. I think you 488 00:25:00,680 --> 00:25:02,520 Speaker 1: learned some of those meetings. What was the message coming 489 00:25:02,560 --> 00:25:05,199 Speaker 1: from the US administration? I mean, the key message I 490 00:25:05,200 --> 00:25:07,359 Speaker 1: take away from from the messages was that he's running 491 00:25:07,359 --> 00:25:09,879 Speaker 1: for president of the United States, so that the message 492 00:25:09,880 --> 00:25:13,399 Speaker 1: would seem to be quite targeted at the domestic audience. Uh, 493 00:25:13,560 --> 00:25:15,639 Speaker 1: it was. You know, I say that the themes in 494 00:25:15,720 --> 00:25:19,320 Speaker 1: Davos have overwhelmingly been sustainability, to the point that it's 495 00:25:19,600 --> 00:25:23,399 Speaker 1: probably crowded out some other very important discussions like the 496 00:25:23,640 --> 00:25:27,840 Speaker 1: challenges around inequality. But the traction on on sustainability has 497 00:25:27,880 --> 00:25:31,720 Speaker 1: been very impressive. I think, so hardcore commitments in terms 498 00:25:31,760 --> 00:25:34,840 Speaker 1: of the metrics that will be using to measure progress. Uh. 499 00:25:35,280 --> 00:25:37,800 Speaker 1: And I say specifically, you know, what does my business 500 00:25:38,400 --> 00:25:42,639 Speaker 1: contribute to to this climate change dynamic and what can 501 00:25:42,680 --> 00:25:45,000 Speaker 1: I do about it? And then specific commitments from corporations 502 00:25:45,160 --> 00:25:48,000 Speaker 1: and willingness I SNA across the banking industry and sharing 503 00:25:48,000 --> 00:25:49,679 Speaker 1: a session yesterday where we focused a lot of what 504 00:25:49,720 --> 00:25:53,480 Speaker 1: the banks could do collectively to address a sustainability question. So, 505 00:25:53,560 --> 00:25:55,360 Speaker 1: I mean, those are the messages coming out of Davos. 506 00:25:55,359 --> 00:25:56,960 Speaker 1: And then there was some noise on the side. Okay, 507 00:25:57,119 --> 00:25:58,840 Speaker 1: if you look at market, it's what is one thing 508 00:25:59,160 --> 00:26:02,000 Speaker 1: we had to political concerns, you know regarding Iran and 509 00:26:02,040 --> 00:26:06,080 Speaker 1: Iraq um us China trade is the forefront to US elections, 510 00:26:06,119 --> 00:26:08,080 Speaker 1: which you kind of mentioned out of those three, what's 511 00:26:08,080 --> 00:26:11,040 Speaker 1: the biggest risk for the markets? I think the big 512 00:26:11,080 --> 00:26:14,320 Speaker 1: structural risk because it's it's very impactful and and as 513 00:26:14,400 --> 00:26:16,960 Speaker 1: yet unresolved. Although in a peaceful zone right now is 514 00:26:17,000 --> 00:26:22,320 Speaker 1: the US China tentions, Iraq Iran, US Saudi has the 515 00:26:22,320 --> 00:26:25,639 Speaker 1: possibility to explode right now. That's that feels unlikely. I mean, 516 00:26:25,640 --> 00:26:27,959 Speaker 1: it feels like there's been a dramatic escalation and then 517 00:26:28,000 --> 00:26:31,520 Speaker 1: quick de escalation. Uh. And certainly that what I can 518 00:26:31,560 --> 00:26:33,199 Speaker 1: pick up through the hallways, and it's just you know, 519 00:26:33,200 --> 00:26:36,600 Speaker 1: I think everybody's got their views. Uh there there's a 520 00:26:36,640 --> 00:26:38,879 Speaker 1: genuine willingness on all sides to try to de escalate 521 00:26:39,200 --> 00:26:41,320 Speaker 1: at this point. So, but of course have that changed 522 00:26:41,760 --> 00:26:43,760 Speaker 1: and and an impact it all flos through the through 523 00:26:43,800 --> 00:26:46,360 Speaker 1: the straits, then we've been a very different place. Um 524 00:26:46,520 --> 00:26:49,119 Speaker 1: so I So to me, it still comes back to 525 00:26:49,200 --> 00:26:52,160 Speaker 1: US China and getting some real progress there. We're moments 526 00:26:52,160 --> 00:26:54,480 Speaker 1: away from the e CD decision. Are central banks exhausted? 527 00:26:54,480 --> 00:26:57,080 Speaker 1: Are they running out of ammunition? I think the I 528 00:26:57,080 --> 00:26:58,679 Speaker 1: don't thin they're running out of ammunition, but I think 529 00:26:58,680 --> 00:27:00,880 Speaker 1: the ammunition is is a little bit as effective. So 530 00:27:01,000 --> 00:27:03,399 Speaker 1: I mean, of course that there's new rounds of quantity 531 00:27:03,480 --> 00:27:05,520 Speaker 1: of easing, or there's new new types of assets that 532 00:27:05,520 --> 00:27:08,359 Speaker 1: that central banks could buy to affect credit spreads or 533 00:27:08,720 --> 00:27:11,240 Speaker 1: even affect equity prices at a point, but it seems 534 00:27:11,320 --> 00:27:14,240 Speaker 1: to be an exercise with diminishing returns. So I don't 535 00:27:14,240 --> 00:27:15,919 Speaker 1: think they're out of tools by any means, but they 536 00:27:16,000 --> 00:27:17,520 Speaker 1: might have to use more of those tools if they 537 00:27:17,560 --> 00:27:19,080 Speaker 1: feel the need to use those who's at all right, 538 00:27:19,119 --> 00:27:21,760 Speaker 1: But we've heard presidents leg out of the e CB 539 00:27:21,840 --> 00:27:24,000 Speaker 1: trying to put pressure on fiscal If you were to 540 00:27:24,080 --> 00:27:27,200 Speaker 1: quantify twenty twenty, if we had one, you know, one 541 00:27:27,240 --> 00:27:29,960 Speaker 1: mondary policy or one fiscal policy, would it be, you know, 542 00:27:30,040 --> 00:27:32,760 Speaker 1: government spending more. Does that actually give you more business? 543 00:27:33,320 --> 00:27:34,800 Speaker 1: If there's If there's a lesson that we've learned from 544 00:27:34,840 --> 00:27:38,359 Speaker 1: developing markets through the years, it's that that aggressive fiscal 545 00:27:38,359 --> 00:27:41,080 Speaker 1: programs targeted at things that really improve the quality of 546 00:27:41,119 --> 00:27:46,120 Speaker 1: an economy, so infrastructure, education, healthcare, those things are typically 547 00:27:46,119 --> 00:27:48,600 Speaker 1: a really good use of money, especially when you're funding 548 00:27:48,600 --> 00:27:50,200 Speaker 1: it with very low cost debt, which is what we 549 00:27:50,240 --> 00:27:53,080 Speaker 1: have right now. Fiscal deficits that are that are being 550 00:27:53,119 --> 00:27:56,159 Speaker 1: used to drive consumption give you a sugar high, but 551 00:27:56,200 --> 00:27:58,719 Speaker 1: don't don't structurally improve the ability of the economy to 552 00:27:58,800 --> 00:28:02,159 Speaker 1: grow and strengthened. So I think to the extent that 553 00:28:02,200 --> 00:28:04,560 Speaker 1: the US and Germany, so the two guys with the 554 00:28:04,600 --> 00:28:08,080 Speaker 1: biggest fiscal firepower right now, step up their fiscal spending, 555 00:28:08,080 --> 00:28:12,359 Speaker 1: but focus on on these these structural value creators that 556 00:28:12,400 --> 00:28:14,719 Speaker 1: can be a very important complement to monitory policy. But 557 00:28:14,920 --> 00:28:17,480 Speaker 1: there's a little noise that actually Germany is ready to 558 00:28:17,520 --> 00:28:19,520 Speaker 1: spend what what a lot of people ask of them. 559 00:28:19,640 --> 00:28:21,879 Speaker 1: They're under a lot of pressure. I don't know if 560 00:28:21,880 --> 00:28:25,040 Speaker 1: they've they've internalized that yet. Okay, the negative rates, how 561 00:28:25,280 --> 00:28:28,160 Speaker 1: how much of I mean every bank is complaining about 562 00:28:28,160 --> 00:28:32,160 Speaker 1: negative rates? But actually do policy makers understand that that 563 00:28:32,240 --> 00:28:35,439 Speaker 1: this could not only lead to to really testing the 564 00:28:35,440 --> 00:28:38,680 Speaker 1: banking models even further, but actually social like unrest. I 565 00:28:38,720 --> 00:28:40,480 Speaker 1: think policy makers have to be very careful about what 566 00:28:40,520 --> 00:28:42,840 Speaker 1: they say. But I can't imagine that they don't know 567 00:28:43,360 --> 00:28:45,720 Speaker 1: that it's not just bad for the banking systems, it's 568 00:28:45,800 --> 00:28:48,480 Speaker 1: very bad in terms of creating imbalances in the economy 569 00:28:48,520 --> 00:28:51,120 Speaker 1: and imbalances and capital markets that when they unwind, it 570 00:28:51,120 --> 00:28:53,480 Speaker 1: would be quite dangerous. And since it's clearly part of 571 00:28:53,600 --> 00:28:56,440 Speaker 1: the central banks mandate is financial stability. They know that 572 00:28:56,480 --> 00:28:58,840 Speaker 1: this this is another kind of drug, that it's also 573 00:28:58,840 --> 00:29:01,480 Speaker 1: having diminishing returns, and that that is piling up quite 574 00:29:01,480 --> 00:29:03,840 Speaker 1: a substantial problem for the future. Very quickly on your 575 00:29:03,840 --> 00:29:05,520 Speaker 1: turn around planned? Is it too? Is it? You know, 576 00:29:05,560 --> 00:29:08,360 Speaker 1: time to say mission accomplished? You never say, MISSI accomplished, 577 00:29:08,400 --> 00:29:10,280 Speaker 1: and it's not accomplished. But but what I can say 578 00:29:10,320 --> 00:29:12,600 Speaker 1: is that that that our bank is super strong at 579 00:29:12,600 --> 00:29:14,760 Speaker 1: this point. We have all the foundations that we need. 580 00:29:14,800 --> 00:29:16,720 Speaker 1: We have all the growth momentum in the key areas 581 00:29:16,760 --> 00:29:20,800 Speaker 1: of our our cross border corporate business, our affluent client business, 582 00:29:20,840 --> 00:29:24,000 Speaker 1: and then then more recently our massive investments in digital banking. 583 00:29:24,400 --> 00:29:27,080 Speaker 1: All those things are working extremely well. We just have 584 00:29:27,200 --> 00:29:30,200 Speaker 1: to to to see them through to to fruition bills. 585 00:29:30,240 --> 00:29:31,840 Speaker 1: As always, thank you so much for joining us. He's 586 00:29:31,840 --> 00:29:45,520 Speaker 1: a protective of standard charge. Stacy cunning and joins us. 587 00:29:45,720 --> 00:29:48,400 Speaker 1: She's gone a little bit better than internship as president 588 00:29:48,720 --> 00:29:51,920 Speaker 1: of the New York Stack. Were thrilled here. Thanks because 589 00:29:51,960 --> 00:29:54,880 Speaker 1: the American dream when you were a kid in a 590 00:29:55,000 --> 00:29:57,840 Speaker 1: financial family, that was like Because what was it like 591 00:29:57,920 --> 00:30:00,600 Speaker 1: the first day when you were in turned on the floor. 592 00:30:01,040 --> 00:30:04,040 Speaker 1: I actually before I walked onto the Stock exchange floor. 593 00:30:04,080 --> 00:30:06,120 Speaker 1: I never thought about finance. It wasn't something I wanted 594 00:30:06,160 --> 00:30:08,840 Speaker 1: to do. But those first minutes, the first fifteen minutes, 595 00:30:08,840 --> 00:30:09,880 Speaker 1: I knew it was what I wanted to do with 596 00:30:09,920 --> 00:30:12,040 Speaker 1: my life. I loved it. I love the pace and 597 00:30:12,160 --> 00:30:13,840 Speaker 1: I love the energy, and you know, I love what 598 00:30:13,880 --> 00:30:16,719 Speaker 1: capitalism delivers for this country. And I think that's what 599 00:30:16,760 --> 00:30:18,840 Speaker 1: we should be talking about, because I think that that's 600 00:30:18,840 --> 00:30:21,760 Speaker 1: where we need. Do you think anyone is defending capitalism 601 00:30:21,760 --> 00:30:24,040 Speaker 1: at this conference, Well, no, no, And that's the point. 602 00:30:24,040 --> 00:30:25,560 Speaker 1: I think what I'm hearing at this conference is we 603 00:30:25,600 --> 00:30:27,920 Speaker 1: have to tell our stories better, and I think capitalism 604 00:30:27,920 --> 00:30:30,960 Speaker 1: does not is not immune from that. Right, Capitalism has 605 00:30:31,000 --> 00:30:33,520 Speaker 1: been the engine that has been the growth of the 606 00:30:33,600 --> 00:30:36,000 Speaker 1: you know, really fueling the growth of the United States, 607 00:30:36,040 --> 00:30:37,480 Speaker 1: but it needs a tune up. We need to make 608 00:30:37,480 --> 00:30:40,480 Speaker 1: sure that the American dream is a story of shared success. 609 00:30:40,600 --> 00:30:42,760 Speaker 1: And so we gotta get companies out private, from private 610 00:30:42,760 --> 00:30:45,000 Speaker 1: to public sooner so that others can share in their 611 00:30:45,000 --> 00:30:47,680 Speaker 1: wealth creation. And we need to talk about the good 612 00:30:47,760 --> 00:30:50,440 Speaker 1: that those companies are doing by creating jobs and giving 613 00:30:50,440 --> 00:30:52,280 Speaker 1: back to their community. One of the great voices of 614 00:30:52,320 --> 00:30:54,840 Speaker 1: the n Y s as a guy named Kempoll Curry. 615 00:30:54,920 --> 00:30:59,920 Speaker 1: He's been great, loyal, visible, smart on the markets. Great. 616 00:31:00,320 --> 00:31:03,480 Speaker 1: He and I remember another time is that New York 617 00:31:03,520 --> 00:31:06,480 Speaker 1: Stock has change of today anything like what you knew 618 00:31:06,560 --> 00:31:08,640 Speaker 1: was an intern and where's it going to be in 619 00:31:08,720 --> 00:31:10,680 Speaker 1: five years? Yeah. We kept the best parts of New 620 00:31:10,760 --> 00:31:13,200 Speaker 1: York Stock Exchange, and we brought together modernization where we 621 00:31:13,240 --> 00:31:16,080 Speaker 1: could automate the parts that that really just should be automated. 622 00:31:16,280 --> 00:31:19,000 Speaker 1: And so we really believe strongly that the combination of 623 00:31:19,080 --> 00:31:21,520 Speaker 1: people and technology is so much more powerful. Are you 624 00:31:21,600 --> 00:31:25,880 Speaker 1: keeping at happy with best price? Yes? Explain that for 625 00:31:25,920 --> 00:31:28,560 Speaker 1: our audience that folks on radio and television, this is 626 00:31:28,560 --> 00:31:31,920 Speaker 1: wicked important. You here Arthur love At, the former chairman 627 00:31:31,920 --> 00:31:34,760 Speaker 1: of the SEC with us on Bloomberg Surveillance, and he's 628 00:31:34,840 --> 00:31:39,000 Speaker 1: always talking about the execution. Explain why the execution now 629 00:31:39,400 --> 00:31:41,600 Speaker 1: is different than before ken Ball carry had a beard. 630 00:31:41,920 --> 00:31:43,800 Speaker 1: One of the things that you want to make sure 631 00:31:43,880 --> 00:31:45,600 Speaker 1: is that when somebody wants to buy ourselves stock, they 632 00:31:45,600 --> 00:31:47,280 Speaker 1: can go out and see what is the value. And 633 00:31:47,400 --> 00:31:50,320 Speaker 1: nothing values a company better than the public markets. But 634 00:31:50,440 --> 00:31:52,280 Speaker 1: price is an important part of that, and so the 635 00:31:52,320 --> 00:31:55,400 Speaker 1: exchanges are the ones that set that price. And even 636 00:31:55,400 --> 00:31:59,040 Speaker 1: though market trading has changed and of the market is 637 00:31:59,080 --> 00:32:02,080 Speaker 1: trading in dark and not contributing that price, they're actually 638 00:32:02,080 --> 00:32:05,320 Speaker 1: taking those prices that you the exchange is set to 639 00:32:05,440 --> 00:32:08,000 Speaker 1: determine where to trade, and those are the same exact 640 00:32:08,080 --> 00:32:11,360 Speaker 1: prices that a retail investor logging into their Fidelity each 641 00:32:11,360 --> 00:32:15,080 Speaker 1: trade and merrit trade. You just slipped through trading in 642 00:32:15,160 --> 00:32:18,520 Speaker 1: the dark. Yeah, you tried in the dark. What is 643 00:32:18,560 --> 00:32:22,960 Speaker 1: trading in the so so what that is is if 644 00:32:23,000 --> 00:32:25,480 Speaker 1: you are showing your prices to the world to see, 645 00:32:25,720 --> 00:32:28,240 Speaker 1: so that when someone logs into their online trading account, 646 00:32:28,720 --> 00:32:31,320 Speaker 1: calls they're broker on their Bloomberg terminal and they get 647 00:32:31,320 --> 00:32:34,160 Speaker 1: their prices. Their Bloomberg terminal is showing the best price 648 00:32:34,160 --> 00:32:36,360 Speaker 1: in the market. Stacey, you're making the argument that companies 649 00:32:36,360 --> 00:32:39,479 Speaker 1: should stop staying in private markets for so long income public. 650 00:32:39,880 --> 00:32:42,200 Speaker 1: A lot of people would understand the argument coming from you, 651 00:32:43,160 --> 00:32:45,719 Speaker 1: why and why a direct listening is gonna be such 652 00:32:45,720 --> 00:32:48,440 Speaker 1: an important part of this process. So the two great questions. 653 00:32:48,480 --> 00:32:50,440 Speaker 1: The first one is why should they be public sooner? 654 00:32:50,440 --> 00:32:52,000 Speaker 1: And there are a lot of conversations around why they're 655 00:32:52,040 --> 00:32:54,760 Speaker 1: staying private longer, and you can talk about that it's capital, 656 00:32:54,800 --> 00:32:57,120 Speaker 1: it's it's it's it's regulation, it's all these things. But 657 00:32:57,400 --> 00:33:00,000 Speaker 1: with the downsides to the fact that they're staying private 658 00:33:00,080 --> 00:33:02,840 Speaker 1: means there's less discipline governance in companies which are a 659 00:33:02,960 --> 00:33:05,840 Speaker 1: much larger company that's much more impactful. There is less 660 00:33:06,240 --> 00:33:09,600 Speaker 1: clarity around valuation. So are these companies worth what the 661 00:33:09,640 --> 00:33:12,120 Speaker 1: private markets are saying or do you need the wisdom 662 00:33:12,160 --> 00:33:14,440 Speaker 1: and the disclosures and transparency of the public markets to 663 00:33:14,480 --> 00:33:17,400 Speaker 1: determine that. And it's creating a bifurcation of wealth. Let's 664 00:33:17,440 --> 00:33:19,520 Speaker 1: talk about pressure, the pressure on you guys. At the moment, 665 00:33:19,600 --> 00:33:21,360 Speaker 1: we had the like of Larry Think of black Rock 666 00:33:21,440 --> 00:33:24,920 Speaker 1: talk about leaning on the active management world to lean 667 00:33:25,040 --> 00:33:29,000 Speaker 1: out of some companies. Let's say in cold the pressure 668 00:33:29,000 --> 00:33:30,080 Speaker 1: really is going to have to be put on the 669 00:33:30,160 --> 00:33:33,560 Speaker 1: index providers to say to them, you need to get 670 00:33:33,600 --> 00:33:35,640 Speaker 1: these companies off out of the index. That's going to 671 00:33:35,720 --> 00:33:37,840 Speaker 1: make the most difference. The pressure is also going to 672 00:33:37,840 --> 00:33:40,360 Speaker 1: be on the exchanges. Why allow these companies to list 673 00:33:40,360 --> 00:33:43,080 Speaker 1: on your exchange? I think it's really important to distinction, 674 00:33:43,120 --> 00:33:45,680 Speaker 1: to make sure that that investors have access to opportunities 675 00:33:45,720 --> 00:33:47,560 Speaker 1: and the right to choose. And so by putting them 676 00:33:47,560 --> 00:33:51,560 Speaker 1: on exchanges and giving them information about their disclosures is 677 00:33:51,560 --> 00:33:54,280 Speaker 1: helpful for them can make it informed decisions. I think 678 00:33:54,320 --> 00:33:56,640 Speaker 1: it's really important to recognize, what are the conversations I've 679 00:33:56,640 --> 00:33:58,360 Speaker 1: been having here in Davas over the past few days 680 00:33:58,600 --> 00:34:01,480 Speaker 1: are from many CEOs. We're saying, we've been doing all 681 00:34:01,520 --> 00:34:03,640 Speaker 1: of the work around d s G already because it's 682 00:34:03,680 --> 00:34:06,160 Speaker 1: important to our employees. It's an important to our customers 683 00:34:06,200 --> 00:34:08,399 Speaker 1: that we take a stand on these issues, even more 684 00:34:08,480 --> 00:34:11,040 Speaker 1: so than their investors. Let me ask you this because 685 00:34:11,040 --> 00:34:12,759 Speaker 1: I actually it's come up multiple times, not just at 686 00:34:12,800 --> 00:34:14,680 Speaker 1: this conference, but over the last few months, maybe the 687 00:34:14,719 --> 00:34:17,360 Speaker 1: last few years as well. You have minimum standards to 688 00:34:17,400 --> 00:34:20,160 Speaker 1: be listed on the New York Stock Exchange, minimum market cap, 689 00:34:20,360 --> 00:34:22,799 Speaker 1: minimum out of shadholder as well. Why not have the 690 00:34:22,920 --> 00:34:25,680 Speaker 1: s G as part of that. Because our standards are 691 00:34:25,760 --> 00:34:29,320 Speaker 1: very focused on investor protections, and if those companies stay private, 692 00:34:29,320 --> 00:34:31,560 Speaker 1: the conversations we're having are really connected. Right. If we 693 00:34:31,640 --> 00:34:35,880 Speaker 1: put so many standards around requirements for companies to be public, 694 00:34:36,120 --> 00:34:39,279 Speaker 1: they have alternatives. It's a different dynamic than it was 695 00:34:39,360 --> 00:34:40,800 Speaker 1: years ago when you actually had to come to the 696 00:34:40,840 --> 00:34:43,840 Speaker 1: public markets to get money. Because there is money available 697 00:34:43,880 --> 00:34:46,319 Speaker 1: in the private market space. We don't want investors to 698 00:34:46,320 --> 00:34:49,720 Speaker 1: be denied those opportunities entirely. This is not your remit, 699 00:34:50,160 --> 00:34:52,520 Speaker 1: but I want your opinion on this because it's important. 700 00:34:52,760 --> 00:34:55,759 Speaker 1: Pharaoh has just recovered from the shock of losing that 701 00:34:55,840 --> 00:34:59,799 Speaker 1: much money on his eight thousand Listen to this. How 702 00:35:00,000 --> 00:35:03,640 Speaker 1: do you respond when on your floor they do the 703 00:35:03,719 --> 00:35:06,520 Speaker 1: song and dance of an I p O or even 704 00:35:06,560 --> 00:35:09,960 Speaker 1: even a secondary but particularly initial public offerings and they 705 00:35:10,000 --> 00:35:13,120 Speaker 1: come out and they do the whole modern media dance 706 00:35:13,360 --> 00:35:16,439 Speaker 1: and the thing goes down x per set. That's not 707 00:35:16,640 --> 00:35:18,760 Speaker 1: good for the brand, is it. I think we should 708 00:35:18,800 --> 00:35:21,560 Speaker 1: keep in mind that in a large, large IPO like that, 709 00:35:21,560 --> 00:35:23,960 Speaker 1: they sold eight billion dollars worth of stock and it 710 00:35:24,040 --> 00:35:26,360 Speaker 1: opened at a price and stayed right there. Now, over time, 711 00:35:26,400 --> 00:35:29,320 Speaker 1: investors were reacting to the valuations of companies and his 712 00:35:29,400 --> 00:35:31,360 Speaker 1: companies go. Your job is to get it open in 713 00:35:31,400 --> 00:35:33,960 Speaker 1: the early minute, to make sure that investors have the information. 714 00:35:34,440 --> 00:35:38,239 Speaker 1: Did they have the information? And you'll see it's a 715 00:35:38,360 --> 00:35:42,080 Speaker 1: great example of private valuations versus public valuations. And so 716 00:35:42,120 --> 00:35:44,400 Speaker 1: we need to actually make sure companies get out and 717 00:35:44,400 --> 00:35:46,960 Speaker 1: this this this shift because they don't need capital, is 718 00:35:46,960 --> 00:35:49,840 Speaker 1: actually why the direct listing was innovation, an innovation that 719 00:35:49,880 --> 00:35:52,680 Speaker 1: we delivered this year because it's actually not about raising money, 720 00:35:52,840 --> 00:35:55,600 Speaker 1: it's about in those cases you say, so you're nailing, 721 00:35:55,640 --> 00:36:00,360 Speaker 1: there's a private valuation, they go public and so elected 722 00:36:00,400 --> 00:36:04,959 Speaker 1: stocks tank whose responsibility is that it's not you, who 723 00:36:05,040 --> 00:36:09,000 Speaker 1: is it who's respecting questions that they weren't asking before. 724 00:36:09,000 --> 00:36:10,759 Speaker 1: And I think that's what you're gonna see is that 725 00:36:10,840 --> 00:36:16,080 Speaker 1: investor are profitability and valuations. And when you have limited 726 00:36:16,520 --> 00:36:19,640 Speaker 1: people participating in the private space, you're limning access to 727 00:36:19,680 --> 00:36:23,640 Speaker 1: opportunity and you're also limiting access to information. Stacey, fantastic 728 00:36:23,640 --> 00:36:28,760 Speaker 1: conversation one of my work you're looking for work Stacey 729 00:36:28,760 --> 00:36:42,319 Speaker 1: accounting of nicely President. Thank you very much from Davil, 730 00:36:42,400 --> 00:36:46,160 Speaker 1: Switzerland for our audience worldwide. Alongside it's Tom Keane, Jonathan Pharaoh. 731 00:36:46,200 --> 00:36:48,560 Speaker 1: This is the countdown to the open on bloom Black 732 00:36:48,600 --> 00:36:51,600 Speaker 1: TV and on Bloomberg Riding Up. I can confirm then 733 00:36:51,600 --> 00:36:54,560 Speaker 1: in Frankfurt, Germany, there is an absolute snoozer of a 734 00:36:54,560 --> 00:36:59,359 Speaker 1: news conference. In Christine. Everybody asking questions is asking one 735 00:36:59,400 --> 00:37:00,960 Speaker 1: to three in a row. I don't know how she 736 00:37:01,040 --> 00:37:02,799 Speaker 1: does it. If you would like to follow that you 737 00:37:02,840 --> 00:37:04,720 Speaker 1: can on the Blomberg terminal if you are a Blomberg 738 00:37:04,719 --> 00:37:07,919 Speaker 1: subscriber on Life Go. Let's get the price action. Around 739 00:37:07,960 --> 00:37:09,920 Speaker 1: about twenty minutes out from the opening bout in New 740 00:37:10,000 --> 00:37:12,000 Speaker 1: York City, we set up as follows the pain. The 741 00:37:12,040 --> 00:37:14,280 Speaker 1: epicenter of all of it is over an Asia, Chinese 742 00:37:14,320 --> 00:37:16,839 Speaker 1: equity markets down and down hard, in the United States barely. 743 00:37:16,840 --> 00:37:19,759 Speaker 1: And he followed through whatsoever SMP five futures coming in 744 00:37:19,800 --> 00:37:21,640 Speaker 1: just a tenth of one percent in the bottom market 745 00:37:21,680 --> 00:37:25,080 Speaker 1: yields lullaby three basis points TOM one seventy four is 746 00:37:25,120 --> 00:37:27,760 Speaker 1: your yield on a US tenure. What's interesting in all 747 00:37:27,800 --> 00:37:30,120 Speaker 1: of our discussions here, and you learn this in Davos, 748 00:37:30,120 --> 00:37:32,680 Speaker 1: and frankly you learn it on the island of Manhattan 749 00:37:32,719 --> 00:37:35,920 Speaker 1: as well, that each bank is different, each executive and 750 00:37:36,000 --> 00:37:38,319 Speaker 1: set of executives at the banks are different, of course, 751 00:37:38,400 --> 00:37:41,799 Speaker 1: all different challenges at Goldman Sachs, of course, the transition. 752 00:37:42,160 --> 00:37:44,439 Speaker 1: And they've chosen a guy they used to move ice 753 00:37:44,440 --> 00:37:49,120 Speaker 1: cream at Baskin Robbins. This is important, John, You don't 754 00:37:49,200 --> 00:37:54,160 Speaker 1: understand America. The coveted job in high school younger high school, 755 00:37:54,200 --> 00:37:57,120 Speaker 1: all right, you went to McDonald's, you went to the others. 756 00:37:57,320 --> 00:38:01,040 Speaker 1: The Glory Job was best and Robbins ice cream and 757 00:38:01,200 --> 00:38:04,040 Speaker 1: that's how you moved David Selom, a gome sex chairman, 758 00:38:04,040 --> 00:38:06,400 Speaker 1: to see have you ever had an introduction like that before? 759 00:38:06,520 --> 00:38:08,440 Speaker 1: I've never. First of all, thank you for having me, 760 00:38:08,480 --> 00:38:11,240 Speaker 1: but yeah, I've never had What was your favorite flavor? 761 00:38:11,360 --> 00:38:16,920 Speaker 1: My favorite flavor was Rocky Road. Always your favorite introduction? Okay, 762 00:38:17,040 --> 00:38:21,040 Speaker 1: I'm not taking podcast banks the Center. In the conversation 763 00:38:21,080 --> 00:38:23,040 Speaker 1: today with the CP and Frankfurt for the feder was 764 00:38:23,080 --> 00:38:25,080 Speaker 1: a real conversation about what is going on with the 765 00:38:25,080 --> 00:38:27,319 Speaker 1: balance sheet. David would love your insight, just your take, 766 00:38:27,400 --> 00:38:30,440 Speaker 1: your opinion. Is that QI or is that not QI? 767 00:38:30,760 --> 00:38:35,680 Speaker 1: What is that? So the monetary policy that's been around 768 00:38:36,000 --> 00:38:37,880 Speaker 1: and has been in place for a long time obviously 769 00:38:37,920 --> 00:38:40,399 Speaker 1: has been an enormous stimulus. When we when we sit 770 00:38:40,440 --> 00:38:42,200 Speaker 1: here today and I kind of think about, you know, 771 00:38:42,239 --> 00:38:44,360 Speaker 1: the path forward. I think we're now in a period 772 00:38:44,440 --> 00:38:48,800 Speaker 1: this year after three mid uh three mid cycle cuts 773 00:38:48,800 --> 00:38:51,000 Speaker 1: for lack of a better term, that I don't expect 774 00:38:51,000 --> 00:38:53,360 Speaker 1: a lot from the Fed in the context of this year. Obviously, 775 00:38:53,400 --> 00:38:55,120 Speaker 1: the balance sheets come down a lot over the course 776 00:38:55,160 --> 00:38:57,440 Speaker 1: of the last couple of years. UM all of this 777 00:38:57,760 --> 00:39:00,600 Speaker 1: supports or impacts liquidity in markets, and I think the 778 00:39:00,600 --> 00:39:03,480 Speaker 1: FED has done a reasonable job managing liquidity and markets 779 00:39:03,480 --> 00:39:05,279 Speaker 1: even with a speed bump back. So I'll ask it again, then, 780 00:39:05,440 --> 00:39:07,200 Speaker 1: is that Q wait as they start to buy tapos 781 00:39:07,200 --> 00:39:09,400 Speaker 1: and a balance sheet stops to expand again, any time 782 00:39:09,640 --> 00:39:13,480 Speaker 1: the FED uses its resources to affect liquidity in some way, 783 00:39:13,520 --> 00:39:16,640 Speaker 1: shape or form, it's having an impact on markets. I'm 784 00:39:16,640 --> 00:39:18,319 Speaker 1: not going to answer the question that you're looking for 785 00:39:18,320 --> 00:39:20,160 Speaker 1: me to answer it because I I don't think it's 786 00:39:20,160 --> 00:39:21,800 Speaker 1: a black and white answer. You tell me what Q 787 00:39:21,960 --> 00:39:26,359 Speaker 1: he is? Who ask Bill Dudley. But the answer here 788 00:39:26,400 --> 00:39:28,800 Speaker 1: is we get a lot of different opinions, including the 789 00:39:28,880 --> 00:39:31,880 Speaker 1: former member of Golden sexually someone that drove your economics 790 00:39:31,880 --> 00:39:34,399 Speaker 1: for Mr Dudley of the New York Fed. We get 791 00:39:34,440 --> 00:39:37,799 Speaker 1: all these different opinions, and what our audience wants to 792 00:39:37,840 --> 00:39:40,680 Speaker 1: know is what you have learned from your prose on 793 00:39:40,920 --> 00:39:44,680 Speaker 1: the desk of those reactions, the movements that you've seen 794 00:39:45,040 --> 00:39:47,719 Speaker 1: in the short term paper market. What have you actually 795 00:39:47,800 --> 00:39:51,439 Speaker 1: observed in the market that gives you information about these 796 00:39:51,440 --> 00:39:55,719 Speaker 1: balance sheet challenges? Well, I I think that everyone observed 797 00:39:56,120 --> 00:39:59,040 Speaker 1: that the FED had a very very significant balance sheet investment, 798 00:39:59,040 --> 00:40:01,120 Speaker 1: and it reduced that balot and cheat. There have been 799 00:40:01,160 --> 00:40:04,520 Speaker 1: a bunch of regulatory inputs the amount of liquidity that 800 00:40:04,680 --> 00:40:08,000 Speaker 1: banks need to hold as the regulations have changed, and 801 00:40:08,080 --> 00:40:11,120 Speaker 1: at some point you can reach a supply demand where 802 00:40:11,400 --> 00:40:13,600 Speaker 1: for a variety of reasons, some of them can be 803 00:40:13,920 --> 00:40:17,279 Speaker 1: idiosyncratic around a moment time maybe tax payments, that the 804 00:40:17,280 --> 00:40:19,960 Speaker 1: supply demand of liquidity changes and the price for short 805 00:40:20,040 --> 00:40:23,240 Speaker 1: term liquidity rises. And we saw that the FED responded 806 00:40:23,239 --> 00:40:25,719 Speaker 1: appropriately by saying, we want to make sure that there's 807 00:40:25,840 --> 00:40:28,760 Speaker 1: enough liquidity in the system. I think all the banks also, 808 00:40:29,360 --> 00:40:31,279 Speaker 1: I know we did. I can't speak for others. We 809 00:40:31,400 --> 00:40:33,840 Speaker 1: positioned ourselves so at the end of the year we 810 00:40:33,880 --> 00:40:36,280 Speaker 1: thought liquidity might be type. We have liquidity to contribute 811 00:40:36,280 --> 00:40:38,719 Speaker 1: to that felic good question. Are you constrained by the 812 00:40:38,760 --> 00:40:41,200 Speaker 1: new set of regulations? Are you're happy with them? Or 813 00:40:41,239 --> 00:40:43,480 Speaker 1: do you just see I need to see amendments so 814 00:40:43,920 --> 00:40:47,160 Speaker 1: you do finance better? Now? We we we we are 815 00:40:47,200 --> 00:40:50,480 Speaker 1: an adapter to the regulatory framework, and so I think 816 00:40:50,520 --> 00:40:53,520 Speaker 1: as an organization we've adapted very well over the regular 817 00:40:53,560 --> 00:40:56,200 Speaker 1: over the decade to the regulatory framework. And look, the 818 00:40:56,200 --> 00:40:59,640 Speaker 1: regulatory framework continues to evolve, and so our job is 819 00:40:59,680 --> 00:41:01,880 Speaker 1: to make we can serve our clients well, that we 820 00:41:01,920 --> 00:41:03,880 Speaker 1: have the right resources and we do not see we 821 00:41:03,920 --> 00:41:06,160 Speaker 1: do not feel constrained to serve our clients well and 822 00:41:06,239 --> 00:41:08,440 Speaker 1: run our business based on the regulatory framework. We want 823 00:41:08,480 --> 00:41:10,520 Speaker 1: your take on the market. So the price action we've 824 00:41:10,520 --> 00:41:13,320 Speaker 1: seen over the last couple of months, the community, the 825 00:41:13,320 --> 00:41:16,200 Speaker 1: investment community in the World Economic Forum pretty polarized on 826 00:41:16,239 --> 00:41:17,520 Speaker 1: what we're seeing at the moment. We've had a hole 827 00:41:17,640 --> 00:41:20,560 Speaker 1: range of fuse. We had Gougenheim Scott mined to say 828 00:41:20,600 --> 00:41:24,560 Speaker 1: that it resembles someone we had boot prints of Bridgewater 829 00:41:24,680 --> 00:41:27,520 Speaker 1: say the boom bus cyclists, we know it is over. 830 00:41:28,120 --> 00:41:31,320 Speaker 1: When do you come down those two extreme views? Generally 831 00:41:31,320 --> 00:41:34,120 Speaker 1: not a man of extremes, so um So I'd say 832 00:41:34,640 --> 00:41:37,319 Speaker 1: that there will be booms and bus again at some point, 833 00:41:37,360 --> 00:41:39,680 Speaker 1: although I don't see one anytime, you know, anytime soon. 834 00:41:40,239 --> 00:41:43,960 Speaker 1: And you know, as I've been around talking to clients 835 00:41:43,960 --> 00:41:45,360 Speaker 1: over the last few days, and that's one of the 836 00:41:45,400 --> 00:41:48,040 Speaker 1: principal things I do while I'm here, you know, i'd see, 837 00:41:48,280 --> 00:41:51,160 Speaker 1: I'd say, I see and I hear what I call 838 00:41:51,320 --> 00:41:54,319 Speaker 1: kind of a confident middle of the road view of 839 00:41:54,360 --> 00:41:56,920 Speaker 1: the current economic environment, US economy is in good shape. 840 00:41:57,239 --> 00:42:00,120 Speaker 1: Manufacturing sector is a little bit soft. Capital spending been 841 00:42:00,200 --> 00:42:02,320 Speaker 1: lower than people would like to see, but the consumer 842 00:42:02,400 --> 00:42:06,719 Speaker 1: is overcompensating for that. Europe a little bit better. Headwinds 843 00:42:06,760 --> 00:42:09,400 Speaker 1: of the Phase one deal helps a little, but in 844 00:42:09,440 --> 00:42:14,160 Speaker 1: the distribution of outcomes overwhelming likely scenario is economy chugs along. 845 00:42:14,160 --> 00:42:16,719 Speaker 1: That well said, but the distributions of outcome And I 846 00:42:16,800 --> 00:42:20,319 Speaker 1: remember this and Mr Varney in August of two thousand seven, 847 00:42:20,480 --> 00:42:23,080 Speaker 1: you get a three standard or even four point one 848 00:42:23,160 --> 00:42:27,319 Speaker 1: standard deviation moment is golden sas And for that matter, 849 00:42:27,400 --> 00:42:31,440 Speaker 1: your view of global Wall Street position better. Now boom 850 00:42:31,640 --> 00:42:36,160 Speaker 1: bust if we get that jump condition, that abrupt movement 851 00:42:36,160 --> 00:42:37,960 Speaker 1: as we saw in August of two thousand seven. The 852 00:42:37,960 --> 00:42:41,440 Speaker 1: banking systems positioned incredibly differently that it was positioned in 853 00:42:41,520 --> 00:42:43,560 Speaker 1: two thousand and seven. There's been an enormous amount of 854 00:42:43,640 --> 00:42:46,160 Speaker 1: leverage that's come out of the banking system. There's been 855 00:42:46,200 --> 00:42:48,919 Speaker 1: a huge amount of equity that's going into the banking system. 856 00:42:48,960 --> 00:42:52,319 Speaker 1: I also think the risk management activities of the industry 857 00:42:52,480 --> 00:42:56,440 Speaker 1: have improved materially, so there will be cycles, there will 858 00:42:56,480 --> 00:43:01,120 Speaker 1: be events um that stir markets, JE don't really they 859 00:43:01,160 --> 00:43:04,799 Speaker 1: repeat differently. So the last time there was a significant 860 00:43:05,280 --> 00:43:09,640 Speaker 1: economic recession, it affected the banks significantly. I think the 861 00:43:09,640 --> 00:43:11,920 Speaker 1: banks are in a different position. And when we do 862 00:43:12,120 --> 00:43:15,080 Speaker 1: have you know, trouble um in the years ahead, which 863 00:43:15,080 --> 00:43:17,279 Speaker 1: at some point we will the range of things we 864 00:43:17,280 --> 00:43:18,680 Speaker 1: can see, but I think the banks will be more 865 00:43:18,719 --> 00:43:20,520 Speaker 1: resilient in the context of that, based on the way 866 00:43:20,520 --> 00:43:22,560 Speaker 1: they currently talk about how your position in the bank 867 00:43:22,719 --> 00:43:25,040 Speaker 1: for the years to come best. Today, I believe it's 868 00:43:25,040 --> 00:43:28,600 Speaker 1: next Wednesday investerdays. Next Wednesday, Investor Day is right now, 869 00:43:28,719 --> 00:43:33,399 Speaker 1: Let's begin, right now, come on investor Days. Investor Day's 870 00:43:33,440 --> 00:43:36,239 Speaker 1: next Wednesday. It's our first investor day ever since we 871 00:43:36,239 --> 00:43:39,320 Speaker 1: went public in twenty years. Um. I'm a big believer 872 00:43:39,440 --> 00:43:42,759 Speaker 1: that that you know, our investors and more broadly are stakeholders, 873 00:43:42,840 --> 00:43:45,440 Speaker 1: you know, deserve transparency around the way we're going to 874 00:43:46,160 --> 00:43:49,880 Speaker 1: grow the organization, expand our franchise, serve our clients, and 875 00:43:49,960 --> 00:43:53,080 Speaker 1: ultimately deriver deliver higher returns for our shareholders. And so 876 00:43:53,160 --> 00:43:56,279 Speaker 1: we'll lay out a series of initiatives, many of which 877 00:43:56,320 --> 00:43:59,880 Speaker 1: we've spoken about, you know, individually publicly, but with more information, 878 00:44:00,320 --> 00:44:03,040 Speaker 1: we'll put out some targets with respect to returns that 879 00:44:03,040 --> 00:44:05,200 Speaker 1: we can be held accountable to. Targets. So we're gonna 880 00:44:05,200 --> 00:44:07,080 Speaker 1: put out targets with respect to returns that we can 881 00:44:07,080 --> 00:44:09,839 Speaker 1: be held accountable to, and we'll talk a little bit 882 00:44:09,840 --> 00:44:11,360 Speaker 1: about how we intend to run the bank so we 883 00:44:11,360 --> 00:44:13,400 Speaker 1: can deliver for shareholders over time. Let me set up 884 00:44:13,400 --> 00:44:16,360 Speaker 1: a scenario. Let's say a week before you're investigating, a 885 00:44:16,400 --> 00:44:19,120 Speaker 1: competitor comes out and says on new profitability target is 886 00:44:19,280 --> 00:44:22,480 Speaker 1: fifty to seventy pace and return on equity step my laugh, 887 00:44:22,480 --> 00:44:25,080 Speaker 1: A little bit difficult for you next week. I We're 888 00:44:25,120 --> 00:44:28,359 Speaker 1: focused on running our business. I don't I don't think 889 00:44:28,360 --> 00:44:31,560 Speaker 1: that that that that the anyone came out and said 890 00:44:31,600 --> 00:44:33,960 Speaker 1: fifteen to seven pc return at equity. They said fifteent 891 00:44:34,360 --> 00:44:37,279 Speaker 1: return a tangible equity. Okay, But we're focused on our 892 00:44:37,320 --> 00:44:40,319 Speaker 1: business and so our returns and our messages are going 893 00:44:40,360 --> 00:44:42,440 Speaker 1: to be rooted in what we want to do as 894 00:44:42,440 --> 00:44:46,760 Speaker 1: an organization so we can deliver competition. Everybody's always benchmarked 895 00:44:46,760 --> 00:44:49,960 Speaker 1: against competitions. We're gonna we're gonna deliver what we think 896 00:44:50,000 --> 00:44:52,839 Speaker 1: we can deliver over time for our shareholders to build 897 00:44:52,880 --> 00:44:56,360 Speaker 1: a better, bigger, stronger organization. Part of the side grilling 898 00:44:56,360 --> 00:44:58,680 Speaker 1: you on this investor investor Day, and you've got a 899 00:44:58,680 --> 00:45:01,160 Speaker 1: whole team on this, and you've been very experiences. This 900 00:45:01,600 --> 00:45:04,480 Speaker 1: is they're going to talk about strategic vision, and so 901 00:45:04,600 --> 00:45:08,640 Speaker 1: much of this on investor Day is explaining to investors 902 00:45:08,840 --> 00:45:12,480 Speaker 1: do you want to expand through acquisition of a bank 903 00:45:12,640 --> 00:45:15,680 Speaker 1: or just small bolt on acquisitions that advanced golden Sex 904 00:45:15,800 --> 00:45:19,720 Speaker 1: intellect and technology. What you're feeling on that right now? 905 00:45:20,120 --> 00:45:23,279 Speaker 1: Given the terrific equity markets of the last twelve months, 906 00:45:23,280 --> 00:45:26,879 Speaker 1: are you are you priced out of opportunities globally? Well, 907 00:45:26,920 --> 00:45:29,680 Speaker 1: I've I've said this repeatedly that I think God and 908 00:45:29,719 --> 00:45:31,480 Speaker 1: I come to this from my own experience as a banker. 909 00:45:31,880 --> 00:45:34,759 Speaker 1: I think anyone, any leadership team that's running a big 910 00:45:34,840 --> 00:45:38,000 Speaker 1: organization always has to be aware of both or of 911 00:45:38,200 --> 00:45:41,839 Speaker 1: both organic opportunities to grow and also in organic opportunities 912 00:45:41,880 --> 00:45:44,640 Speaker 1: to grow. We're always looking and thinking about things that 913 00:45:44,719 --> 00:45:47,440 Speaker 1: we think can expand our franchise and allow us to 914 00:45:47,440 --> 00:45:52,040 Speaker 1: serve our clients more effectively and ultimately deliver for shareholders. 915 00:45:52,080 --> 00:45:54,200 Speaker 1: But the bar for us to ever do something significant 916 00:45:54,200 --> 00:45:57,320 Speaker 1: and organically is extremely high. But on a strategic basis, 917 00:45:57,360 --> 00:46:00,440 Speaker 1: is that a geographic choice. Obviously it's a financial choice. 918 00:46:00,440 --> 00:46:04,440 Speaker 1: But tell me about the Goldman Sex geography right now? 919 00:46:04,600 --> 00:46:07,000 Speaker 1: Is it a gold division? Goldmen Sex Goldman Sax is 920 00:46:07,000 --> 00:46:10,200 Speaker 1: a global firm. I think one of our competitive advantages 921 00:46:10,680 --> 00:46:13,680 Speaker 1: is we truly are a global platform in the businesses 922 00:46:13,719 --> 00:46:16,120 Speaker 1: that we operate in. Historically, if you look at our 923 00:46:16,160 --> 00:46:18,719 Speaker 1: investment banking business, if you look at our sales and 924 00:46:18,719 --> 00:46:22,520 Speaker 1: trading business, you look at our asset management business, we 925 00:46:22,680 --> 00:46:25,760 Speaker 1: are a global organization and we have an ability to 926 00:46:25,480 --> 00:46:28,960 Speaker 1: work anywhere in the strategy and wealth management right now 927 00:46:29,080 --> 00:46:32,239 Speaker 1: and Golden Sax asset management, what's the strategy right now? 928 00:46:32,320 --> 00:46:34,839 Speaker 1: So on wealth management or on an asset manage I'll 929 00:46:34,840 --> 00:46:37,600 Speaker 1: take both. You asked one and then the other. I'll 930 00:46:37,640 --> 00:46:42,279 Speaker 1: take you for two. Um, let's start with asset man um. 931 00:46:42,320 --> 00:46:44,800 Speaker 1: On asset management, we run one of the top three 932 00:46:45,520 --> 00:46:50,080 Speaker 1: global active asset management platforms. It's an advisory red lead business. 933 00:46:50,120 --> 00:46:52,399 Speaker 1: In other words, we think our clients come to us because, 934 00:46:52,440 --> 00:46:55,600 Speaker 1: in addition to strong investment performance over a period of time, 935 00:46:55,880 --> 00:46:58,399 Speaker 1: we package it around advice to help them meet their 936 00:46:58,440 --> 00:47:02,480 Speaker 1: long term investment needs. We think advice is differentiated and 937 00:47:02,520 --> 00:47:05,040 Speaker 1: you can still get paid for advice and that's what 938 00:47:05,120 --> 00:47:08,440 Speaker 1: our asset management business focuses on. We're also very unique 939 00:47:08,680 --> 00:47:11,560 Speaker 1: and that when you look at the three largest global 940 00:47:11,600 --> 00:47:16,080 Speaker 1: asset management businesses, we may be the only one that 941 00:47:16,360 --> 00:47:20,880 Speaker 1: really in every product category, including alternatives, is really as scale. 942 00:47:21,440 --> 00:47:25,680 Speaker 1: And so you know, across liquidity products, across active equity 943 00:47:25,680 --> 00:47:28,960 Speaker 1: and fixed income, across alternatives were its scale on a 944 00:47:28,960 --> 00:47:32,600 Speaker 1: global basis, and I think for our institutional customers that's 945 00:47:32,600 --> 00:47:35,320 Speaker 1: an advantageous position. So when you look at our ability 946 00:47:35,800 --> 00:47:38,160 Speaker 1: to acquire assets over the last three or five years 947 00:47:38,440 --> 00:47:42,399 Speaker 1: long term fee based assets, we've outperformed relative to people 948 00:47:42,400 --> 00:47:44,440 Speaker 1: we'd be benchmarked against. It. Talk to us about how 949 00:47:44,480 --> 00:47:46,960 Speaker 1: hard it is to make a strategy, strange strategic decision 950 00:47:47,000 --> 00:47:48,560 Speaker 1: for the bank that will work out a ten years, 951 00:47:48,560 --> 00:47:51,280 Speaker 1: not just for now. So ten years ago the right decision, 952 00:47:51,360 --> 00:47:54,160 Speaker 1: some people might say, would be to beeft Wealth Management 953 00:47:54,160 --> 00:47:56,560 Speaker 1: and scale back fixed income trading. Ten years later, that 954 00:47:56,640 --> 00:47:58,520 Speaker 1: might be the right strategic place to be in. But 955 00:47:58,560 --> 00:48:01,080 Speaker 1: as we sit here now, ten years out, how hot 956 00:48:01,160 --> 00:48:03,399 Speaker 1: is it to get that strategy right? To look forward 957 00:48:03,440 --> 00:48:05,960 Speaker 1: and say what works now might not work in the future. Well, look, 958 00:48:06,000 --> 00:48:08,000 Speaker 1: I think that's what CEO is always have to do 959 00:48:08,520 --> 00:48:11,200 Speaker 1: um and I think the right CEO is make investments 960 00:48:11,239 --> 00:48:14,880 Speaker 1: to ensure that the competitive position of their franchises strengthens 961 00:48:14,880 --> 00:48:17,040 Speaker 1: over time. And when you get it right, your franchise 962 00:48:17,120 --> 00:48:19,320 Speaker 1: is strengthened. And if you don't get it right, you 963 00:48:19,360 --> 00:48:21,680 Speaker 1: know over time, you know the evidence comes forward. So 964 00:48:22,000 --> 00:48:24,520 Speaker 1: we are going to grow our asset management business. We 965 00:48:24,560 --> 00:48:26,680 Speaker 1: are going to grow and expand our wealth management business. 966 00:48:26,960 --> 00:48:29,520 Speaker 1: And we think over the next decade those are opportunities 967 00:48:29,560 --> 00:48:32,799 Speaker 1: that take core competencies at Goldman Sachs and we can 968 00:48:32,840 --> 00:48:34,439 Speaker 1: expand on them. So if I don't want to talk 969 00:48:34,440 --> 00:48:37,239 Speaker 1: about the sensitivities at the moment and this comes out, 970 00:48:37,280 --> 00:48:39,880 Speaker 1: I think of William Cohen's book on Goldman Sex, and 971 00:48:39,920 --> 00:48:44,200 Speaker 1: there's that a claim scene, a scene. It's Scotty's over 972 00:48:44,320 --> 00:48:47,520 Speaker 1: Excel and sandwich, and it's Mr Weinberg and others that 973 00:48:47,680 --> 00:48:50,680 Speaker 1: go down to Scotty's and over lunch they do Golden 974 00:48:50,719 --> 00:48:54,080 Speaker 1: Sex business. This is a whole new world. Now. Tell 975 00:48:54,160 --> 00:48:56,759 Speaker 1: us about the shift that you've had as a new 976 00:48:57,000 --> 00:49:01,040 Speaker 1: chief executive officer, and this is vesterday coming up. Tell 977 00:49:01,120 --> 00:49:04,880 Speaker 1: us internally at Golden Sex. The mood as you go 978 00:49:05,000 --> 00:49:07,759 Speaker 1: to your first investors to day. What's the day to 979 00:49:07,840 --> 00:49:11,640 Speaker 1: day mix at Goldman Sex right now is you move 980 00:49:11,719 --> 00:49:14,600 Speaker 1: forward with your strategic plan well, along with the rest 981 00:49:14,680 --> 00:49:17,840 Speaker 1: of our leadership team were uh, you know, I'm very privileged, 982 00:49:17,880 --> 00:49:20,799 Speaker 1: were very privileged to lead an organization that's filled with 983 00:49:20,800 --> 00:49:24,200 Speaker 1: extraordinary people. And I think they're excited about the investor day, 984 00:49:24,280 --> 00:49:28,320 Speaker 1: but I also think the organization is energized by the momentum. 985 00:49:28,360 --> 00:49:31,799 Speaker 1: The firm has to serve our clients holistically through a 986 00:49:31,800 --> 00:49:34,000 Speaker 1: program we call one Golden Sacks to really make sure 987 00:49:34,160 --> 00:49:36,680 Speaker 1: we're delivering as much as we can for our clients. Broadly, 988 00:49:36,960 --> 00:49:40,160 Speaker 1: there's a real client service mindset in the organization that 989 00:49:40,239 --> 00:49:42,799 Speaker 1: this leadership team is really you know, pushing hard at 990 00:49:42,800 --> 00:49:45,000 Speaker 1: making sure we get right. And when they look at 991 00:49:45,000 --> 00:49:50,600 Speaker 1: the areas where we're investing, whether it's transaction banking, it's uh, 992 00:49:50,640 --> 00:49:53,840 Speaker 1: it's the alternatives business and asset management, it's the expansion 993 00:49:53,840 --> 00:49:57,000 Speaker 1: of our wealth management opportunities, or it's our digital consumer 994 00:49:57,040 --> 00:50:00,839 Speaker 1: banking platform. They're excited about the investments and excited about 995 00:50:00,880 --> 00:50:04,480 Speaker 1: thinking about a Goldman Sex where more of these businesses 996 00:50:04,520 --> 00:50:09,080 Speaker 1: make us more more new new. Is that Goldman Sex. 997 00:50:09,200 --> 00:50:12,000 Speaker 1: It's not like Scotty's in the romance of Exhale and Sandwiches. 998 00:50:12,600 --> 00:50:16,799 Speaker 1: I don't remember important I don't. I read, but I 999 00:50:16,840 --> 00:50:19,600 Speaker 1: don't remember. This is an important scene of how Goldman 1000 00:50:19,680 --> 00:50:22,920 Speaker 1: Sex operated within the mythology and legend of the company. 1001 00:50:23,080 --> 00:50:26,799 Speaker 1: I want the new Goldman Sex look like. I can't 1002 00:50:26,840 --> 00:50:31,160 Speaker 1: speak to how Golden Sex operated historically going back that far, 1003 00:50:31,360 --> 00:50:34,880 Speaker 1: because I wasn't there today today. Look, we have a 1004 00:50:35,000 --> 00:50:38,080 Speaker 1: very very young, vibrant workforce that's very focused on serving 1005 00:50:38,080 --> 00:50:42,080 Speaker 1: our clients. Um, We're very, very focused on making sure 1006 00:50:42,120 --> 00:50:46,200 Speaker 1: we continue to have the best, the brightest, the most talented, motivated, 1007 00:50:46,280 --> 00:50:48,680 Speaker 1: driven people to serve our clients. Well, I think we're 1008 00:50:48,680 --> 00:50:51,520 Speaker 1: in that position. This management team leads with an open, 1009 00:50:51,600 --> 00:50:55,080 Speaker 1: communicative style. I think that's what the organization wants, and 1010 00:50:55,120 --> 00:50:57,759 Speaker 1: I I feel like the organization is excited about the 1011 00:50:57,760 --> 00:50:59,080 Speaker 1: direction we're moving it. But we have a lot of 1012 00:50:59,080 --> 00:51:00,560 Speaker 1: work to do. When we have a lot to accomplish, 1013 00:51:00,600 --> 00:51:03,400 Speaker 1: and like any organization, we're focused and committed to getting 1014 00:51:03,400 --> 00:51:05,880 Speaker 1: that done. How do you open up to the consumer 1015 00:51:05,920 --> 00:51:08,520 Speaker 1: at the same time maintaining that Goldman Sacks gold plates 1016 00:51:08,520 --> 00:51:11,520 Speaker 1: at branding Because I'm not concerned about that. Look, we 1017 00:51:11,560 --> 00:51:15,440 Speaker 1: think a lot about about our brand and our position UM, 1018 00:51:15,480 --> 00:51:18,160 Speaker 1: But at the same point, I think there's lots that 1019 00:51:18,239 --> 00:51:21,840 Speaker 1: we can do for consumers that makes our brand and 1020 00:51:21,840 --> 00:51:25,520 Speaker 1: our approach, especially on the digital platform, aspirational for consumers. 1021 00:51:25,520 --> 00:51:27,640 Speaker 1: And look, when you talk about consumers, there is a 1022 00:51:27,680 --> 00:51:31,080 Speaker 1: wide swath of people that you can deal with and 1023 00:51:30,760 --> 00:51:32,960 Speaker 1: UM and I feel good about the way our brands are. 1024 00:51:33,320 --> 00:51:35,719 Speaker 1: One of the one of the big one of the 1025 00:51:35,719 --> 00:51:39,319 Speaker 1: big endorsements I think of our brand is that when 1026 00:51:39,320 --> 00:51:43,120 Speaker 1: we partnered with Apple around the credit card, they wanted 1027 00:51:43,120 --> 00:51:45,319 Speaker 1: Goldman Sachs on that credit card. And I think that 1028 00:51:45,400 --> 00:51:48,040 Speaker 1: speaks to how you know our brand you know is 1029 00:51:48,080 --> 00:51:50,359 Speaker 1: viewed by some out in the marketplace that we we 1030 00:51:50,400 --> 00:51:53,880 Speaker 1: want to find ways to use that man effectively to 1031 00:51:53,960 --> 00:51:57,040 Speaker 1: serve individuals for their financial needs. And there's no reason 1032 00:51:57,280 --> 00:52:00,440 Speaker 1: if we do it well, it's differentiated. We ease their 1033 00:52:00,440 --> 00:52:03,399 Speaker 1: pain points, we give them information and resources that allow 1034 00:52:03,400 --> 00:52:06,400 Speaker 1: them to make any decisions that that can't represent that 1035 00:52:06,440 --> 00:52:09,120 Speaker 1: brand with consumers in a very effective way. Are you 1036 00:52:09,160 --> 00:52:12,320 Speaker 1: going to take technology at this investors and drive it forward? 1037 00:52:12,400 --> 00:52:15,000 Speaker 1: Is there another announcement with Apple or some there there's 1038 00:52:15,000 --> 00:52:16,719 Speaker 1: no There's there's no there's no big review. I got 1039 00:52:17,920 --> 00:52:22,480 Speaker 1: here in my ear. You're not going to You're not 1040 00:52:22,480 --> 00:52:24,120 Speaker 1: going to make a lot of news where we we 1041 00:52:24,160 --> 00:52:27,760 Speaker 1: will talk about our technology investment. We have some new leaders, 1042 00:52:27,840 --> 00:52:29,839 Speaker 1: you know outside. We'll talk a little bit about some 1043 00:52:29,880 --> 00:52:32,760 Speaker 1: of the technology investments were making, like all financial services 1044 00:52:32,800 --> 00:52:36,040 Speaker 1: firms of making. You're excited about that, um, but but 1045 00:52:36,360 --> 00:52:37,719 Speaker 1: I don't know that I'm gonna help you make some 1046 00:52:37,800 --> 00:52:42,799 Speaker 1: great grand you know, curtain raising news. Um, the investor day, Well, 1047 00:52:43,360 --> 00:52:49,920 Speaker 1: come next Wednesday. Your facing interview is so over all 1048 00:52:49,960 --> 00:52:51,719 Speaker 1: the sacks by to catch How do you thank you? 1049 00:52:52,080 --> 00:52:56,279 Speaker 1: Thanks for listening to the Bloomberg Surveillance podcast. Subscribe and 1050 00:52:56,320 --> 00:53:01,640 Speaker 1: listen to interviews on Apple Podcasts, SoundCloud, or whichever podcast 1051 00:53:01,680 --> 00:53:05,920 Speaker 1: platform you prefer. I'm on Twitter at Tom Keene before 1052 00:53:05,960 --> 00:53:10,200 Speaker 1: the podcast. You can always catch us worldwide. I'm Bloomberg Radio.