WEBVTT - Surveillance: Don't Expect Much From Fed, Solomon Says 0:00:09.880 --> 0:00:13.800 Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane Jay Lee. 0:00:13.960 --> 0:00:17.560 We bring you insight from the best in economics, finance, investment, 0:00:18.000 --> 0:00:23.520 and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 0:00:23.600 --> 0:00:27.440 Bloomberg dot Com, and of course on the Bloomberg. This 0:00:27.600 --> 0:00:30.640 is Blomberg Surveillance. I'm Shinnali Bassek and joining me now 0:00:30.760 --> 0:00:33.640 is Ken Mullis, CEO of Mullets and Company. Thank you 0:00:33.720 --> 0:00:36.080 so much for joining us. Ken, great to be here. 0:00:36.280 --> 0:00:39.000 So you've been on a world tour. You just came 0:00:39.040 --> 0:00:41.080 back from Russia where you had a panel with Putin. 0:00:41.560 --> 0:00:44.960 What was the big takeaway? What was interesting? You know, 0:00:45.040 --> 0:00:47.680 it's hard to get good information, and you do these 0:00:47.680 --> 0:00:50.400 things because my job is to get as much information 0:00:50.400 --> 0:00:52.960 about the global economy as you can. So there was 0:00:52.960 --> 0:00:55.040 a lot of takeaways about it, just getting up to 0:00:55.080 --> 0:00:57.320 speed on on on the Moscow economy and how the 0:00:57.360 --> 0:01:00.320 sanctions are affecting you know, what they're doing. UM. So 0:01:00.440 --> 0:01:03.560 I thought it was good to um put that information 0:01:03.600 --> 0:01:05.240 in the back of your mind and keep it in 0:01:05.360 --> 0:01:08.919 mind as your advice companies. Are they the next place 0:01:09.000 --> 0:01:11.959 for you to be doing the next big deal? No, No, 0:01:12.600 --> 0:01:15.520 Russia is long. I think it's a while in the future, 0:01:15.680 --> 0:01:18.200 but look, it's a long life. I've been doing this 0:01:18.240 --> 0:01:22.000 forty years, and you know, friends last, long time, loyalties, 0:01:22.040 --> 0:01:24.920 you get to know people, um and and look, it's 0:01:24.959 --> 0:01:27.760 a long time. I think before an American company will 0:01:27.800 --> 0:01:31.840 be Russia will be investable. But someday maybe you are 0:01:31.880 --> 0:01:34.119 also recently in spending a lot of time in Hong 0:01:34.200 --> 0:01:36.959 Kong with the Hong Kong Stock Exchange proposed takeover of 0:01:37.000 --> 0:01:40.479 the London Stock Exchange. What is the tone there right now? 0:01:40.640 --> 0:01:43.200 Are you worried about what's going on there. I've been 0:01:43.240 --> 0:01:44.520 around the world a lot. I haven't been to Hong 0:01:44.600 --> 0:01:47.440 Kong in a while, but look, what's happening in Hong 0:01:47.520 --> 0:01:52.480 Kong is definitely uh concerning. But again the world it's 0:01:52.520 --> 0:01:55.480 gonna be uh. I think would happen with Trump and 0:01:55.840 --> 0:01:58.560 the China and the trade war calming down will be positive. 0:01:59.160 --> 0:02:01.680 Um And again, things are long. These there's a lot 0:02:01.680 --> 0:02:03.760 of issues you go back over. Again. I've been doing 0:02:03.760 --> 0:02:06.960 this forty years. There's always been major issues, but we 0:02:07.240 --> 0:02:09.440 tend to get through these. And actually business is one 0:02:09.440 --> 0:02:12.160 of the key events that keeps peace and things moving 0:02:12.160 --> 0:02:16.160 in the world. People in business want to do transactions 0:02:16.200 --> 0:02:17.840 with each other, want to get to know each other, 0:02:17.840 --> 0:02:20.840 and it kind of supersedes the cycle of almost politics. 0:02:20.880 --> 0:02:23.000 By the way, with so much time in Russia and 0:02:23.120 --> 0:02:25.000 China right now, what does that say about where you 0:02:25.040 --> 0:02:27.959 think power is shifting in the world. We don't overdue 0:02:27.960 --> 0:02:29.639 to Rush. I was there for a brief time to 0:02:30.120 --> 0:02:33.960 you know, to get some information. Um, look, it's it's 0:02:34.480 --> 0:02:37.120 there's obviously China is important, but you know it's interestingly 0:02:37.240 --> 0:02:39.560 just thinking about the United States was twenty three percent 0:02:39.600 --> 0:02:42.239 of world GDP ten years ago. And if you would 0:02:42.240 --> 0:02:44.160 have bet that the United States would have been larger 0:02:44.240 --> 0:02:46.800 or smaller, given the rise of the bricks and all 0:02:46.800 --> 0:02:50.880 those economies, I think we're up to. So there's a 0:02:50.919 --> 0:02:53.720 lot of handwringing in the United States, but we went 0:02:53.760 --> 0:02:57.320 from twenty three of world g d P. The US 0:02:57.360 --> 0:03:00.760 has great laws, it's got a great capital markets, it's 0:03:00.800 --> 0:03:04.640 got innovation. It's still a tremendous place. When you listen 0:03:04.680 --> 0:03:07.440 to Trump speak this weekend, you know Trump, right, you've 0:03:07.440 --> 0:03:11.920 worked for Donald Trump before. How our world leaders receiving 0:03:11.960 --> 0:03:17.240 his message here? And Dave us, Well, look, they receive 0:03:17.280 --> 0:03:19.280 it in different ways. But I think the thing that 0:03:19.280 --> 0:03:21.120 that he did do, that President Trump did when he 0:03:21.160 --> 0:03:23.800 got here was at least very carefully tell the story. 0:03:23.919 --> 0:03:25.600 And it's hard to get it sometimes that the U. S. 0:03:25.639 --> 0:03:29.200 Economy is booming. We do have three percent unemployment. There 0:03:29.200 --> 0:03:32.200 are so many good things going on. We are deregulating, 0:03:32.240 --> 0:03:35.920 there are lots of things in the policies that are 0:03:35.960 --> 0:03:40.240 generating substantial rewards for business and people and and for everybody. 0:03:40.360 --> 0:03:42.360 And I know sometimes you can get caught up in 0:03:42.400 --> 0:03:45.080 the tweets and the presentations, but if you, if you really, 0:03:45.680 --> 0:03:47.680 and I think he did a good job of just 0:03:48.040 --> 0:03:51.360 calming that down and saying, look what we're accomplishing. And 0:03:52.160 --> 0:03:54.320 I do think the policies have been good for business. 0:03:54.640 --> 0:03:56.520 What do you think his prospects are? Given that you 0:03:56.760 --> 0:03:59.320 called his last election, what do you think his prospects 0:03:59.320 --> 0:04:02.360 are for this upcoming one? Look, it's too early to tell. 0:04:02.480 --> 0:04:04.360 We don't have a candidate. You know, in order to 0:04:04.400 --> 0:04:06.680 call a good fight, you have to know who you're who, 0:04:06.680 --> 0:04:08.320 the who the other side is. So I'm want to 0:04:08.360 --> 0:04:10.800 wait on that. I think I think there's lots to 0:04:10.840 --> 0:04:14.560 go in the in the primaries, and lots of stories 0:04:14.600 --> 0:04:16.520 to be told over the next six or seven months. 0:04:16.560 --> 0:04:18.839 I'll wait, wait, let's wait and see who it's between. 0:04:19.040 --> 0:04:21.680 The other thing that everyone's talking about here in Davos, 0:04:21.720 --> 0:04:25.040 at least publicly, is sustainability and green initiatives. But three 0:04:25.040 --> 0:04:27.280 times just today I've had bankers tell me that we're 0:04:27.279 --> 0:04:30.160 talking about green too much here, and so I'm kind 0:04:30.200 --> 0:04:32.800 of wondering what you're hearing. What do you think is 0:04:32.839 --> 0:04:36.760 the opportunity or is it realistic for the financial industry 0:04:36.839 --> 0:04:39.200 and black Rock, which is leading the charge here to 0:04:39.360 --> 0:04:43.560 make real change. So that's a complicated question. And let 0:04:43.560 --> 0:04:45.839 me say this. Look, we have to advise our clients 0:04:45.839 --> 0:04:48.839 on how to navigate in an environment where look, E. S. 0:04:48.920 --> 0:04:51.640 G and all. An environment is going to be part 0:04:51.680 --> 0:04:56.640 of what they're held accountable for. Now, does sometimes Davos 0:04:57.080 --> 0:05:00.640 go overboard on some of the requirements things that they're 0:05:00.640 --> 0:05:03.360 talking about. Sure, people ask me why go to Davis, 0:05:03.360 --> 0:05:06.240 and I say, sometimes to find out exactly what the 0:05:06.279 --> 0:05:10.000 consensus is so I know what won't happen and and 0:05:10.080 --> 0:05:14.120 do the opposite. Um, because you know it's an extremely 0:05:14.240 --> 0:05:18.280 consensus atmosphere here and um, but look, people are gonna 0:05:18.279 --> 0:05:21.400 have to deal with the fact that large institutions like 0:05:21.480 --> 0:05:25.440 black Rock and and like rating agencies and and government 0:05:25.480 --> 0:05:31.880 institutions will be monitoring certain environmental social governance checklist and 0:05:31.920 --> 0:05:33.880 we're gonna have to we're gonna have to help our 0:05:33.920 --> 0:05:36.320 clients through that. Well, you advised a romco. Where does 0:05:36.320 --> 0:05:40.640 that fit into the situation here? Look, the world is 0:05:40.640 --> 0:05:43.400 going to continue to use and need cheap energy. You know, 0:05:43.400 --> 0:05:46.160 there's five hundred million Europeans, there's three hundred million Americans, 0:05:46.160 --> 0:05:48.880 three fifty. There's six or seven billion people in the 0:05:48.880 --> 0:05:52.560 world who still are are struggling, and the access to 0:05:52.680 --> 0:05:58.040 cheap fossil feels it. Look, it's it's their life, you know, India, China, Africa, 0:05:58.080 --> 0:06:00.880 They're not They're not gonna They're not as worried about 0:06:00.960 --> 0:06:03.400 the environment yet as they are about you know, making 0:06:03.640 --> 0:06:08.720 ends meet and and and life. So I think the 0:06:08.760 --> 0:06:11.960 fact that what worries me about this is the severe 0:06:12.120 --> 0:06:15.560 pressure on fossil fuels and the severe pressure not to 0:06:15.640 --> 0:06:20.200 invest in developed countries I think might lead to a 0:06:20.240 --> 0:06:24.159 shortage sooner than we think. Ken real quick, what do 0:06:24.200 --> 0:06:27.240 you think the next big market risk is? As we're 0:06:27.240 --> 0:06:31.040 sitting down us today. Look, I just think markets are 0:06:31.120 --> 0:06:33.440 priced pretty much for perfection. And you don't have to know. 0:06:33.560 --> 0:06:36.240 This is on my I've learned over many years people 0:06:36.279 --> 0:06:39.680 spend too much time trying to predict the event. All 0:06:39.720 --> 0:06:41.200 you have to do is know that there probably will 0:06:41.320 --> 0:06:43.440 be one. I've learned you don't have to know what 0:06:43.480 --> 0:06:45.640 it is. You just have to know that one will 0:06:45.720 --> 0:06:51.000 happen this year. You know, maybe this year. But look, 0:06:51.240 --> 0:06:53.120 I was saying today, if Lehman Brothers had made it 0:06:53.120 --> 0:06:55.080 through that one market that one year, they'd probably be 0:06:55.080 --> 0:06:57.440 a hundred fifty billion dollar market cap company today. So 0:06:57.480 --> 0:06:59.680 you can't get taken out. You have to know that 0:06:59.800 --> 0:07:03.040 risk is possible, um and you have to plan for it. 0:07:03.480 --> 0:07:06.680 And but you don't know exactly what the risk is. 0:07:06.720 --> 0:07:08.719 You just have to know you can survive it. Ken, 0:07:08.839 --> 0:07:22.720 thank you so much for joining us. Here's the evident idea. 0:07:23.000 --> 0:07:25.360 You can talk all you want up a happy valley 0:07:25.360 --> 0:07:28.480 in Switzerland, you've got to go out there and do it. 0:07:28.560 --> 0:07:31.160 And if you do it, you've got to move it. 0:07:31.360 --> 0:07:34.400 And the obvious most visible thing out there to move 0:07:34.440 --> 0:07:39.120 it is something for Liverpool football fields long and what 0:07:39.400 --> 0:07:42.200 is it truly a football field? Why are you speaking 0:07:42.240 --> 0:07:45.440 of the MAXX tripling. This would be the boat, the boats, 0:07:45.480 --> 0:07:48.520 the ships that move all this stuff around. To me, 0:07:48.600 --> 0:07:51.480 the most articulate voice on this and shipping and serious 0:07:51.600 --> 0:07:54.960 idea of climate change and the logistics and trade of 0:07:55.000 --> 0:07:58.000 the world, as Mr School of Marri's the chief executive 0:07:58.040 --> 0:08:00.640 officers Sore and School joins us. Uh. Now we talked 0:08:00.680 --> 0:08:03.640 often in London, thrilled they have you here. How do 0:08:03.720 --> 0:08:08.400 you respond to the visible lads are climate change who 0:08:08.440 --> 0:08:11.000 don't realize you've got to get the boxes in Asia 0:08:11.280 --> 0:08:14.400 from point A to point B. Well, first, I always 0:08:14.440 --> 0:08:17.720 say that the shipping is actually the most environmentally free 0:08:18.520 --> 0:08:21.840 in my mentorly way of moving any any type of good. 0:08:21.920 --> 0:08:24.560 So the c U two emission that we have any 0:08:24.560 --> 0:08:26.960 ton of good move this is quite low compared to 0:08:27.560 --> 0:08:31.720 road and rail and air. But we still take on 0:08:32.040 --> 0:08:35.120 the channels. Are wanting to reduce our CU two footprint, 0:08:35.160 --> 0:08:37.960 and we have articulated more than a year ago an 0:08:37.960 --> 0:08:41.079 ambusites to get to zero c U two by by 0:08:41.120 --> 0:08:44.120 twenty fifty, and we have solid plans for how to 0:08:44.200 --> 0:08:45.559 get How do you plan to do that? Talk to 0:08:45.600 --> 0:08:47.920 us about those plans. Well, we want to find it. 0:08:48.280 --> 0:08:49.720 I mean, the obviously is we need to find it 0:08:49.760 --> 0:08:52.720 a different kind of fuel, and we believe that we 0:08:52.720 --> 0:08:59.040 we have fuels that are probable, alcohols, ammonia, bio method 0:08:59.160 --> 0:09:02.600 that can be used on eternative sources. It's important because 0:09:02.600 --> 0:09:04.839 it's about the field and not about a ship. Because 0:09:04.840 --> 0:09:06.480 you're in a really, really tough spot. You have to 0:09:06.520 --> 0:09:09.400 plan a decade multi multi decades ahead from where you 0:09:09.400 --> 0:09:11.040 are right now. So it's not a simplest thaying we're 0:09:11.040 --> 0:09:13.600 going to build a whole load of new ships. Won't 0:09:13.640 --> 0:09:16.440 me throw the strategic thinking around issues like that? Well, 0:09:16.520 --> 0:09:19.880 we we believe first of all that we're having a 0:09:19.880 --> 0:09:23.240 responsibility as a leader in the industry to drive the agenda. Secondly, 0:09:23.520 --> 0:09:26.200 as you say, you know we we we we own 0:09:26.280 --> 0:09:28.680 assets that have a twenty five year lifespan. I cannot 0:09:28.679 --> 0:09:30.920 be caught up by a regulation that tells me to 0:09:30.960 --> 0:09:34.120 do something completely different when i'm when I'm when when 0:09:34.160 --> 0:09:36.800 we operate sim more than seven hunted ships. So so 0:09:36.840 --> 0:09:39.920 we need to we need to think ahead. You are 0:09:39.960 --> 0:09:43.080 a front and center in this new world. Someone suggested 0:09:43.160 --> 0:09:46.920 President Trump has moved aggressively from a multilateral, merisk world 0:09:46.960 --> 0:09:50.640 where trade gets done to some form of bilateral world. 0:09:50.880 --> 0:09:55.439 Are almost Americ until system. How is your business changed 0:09:55.679 --> 0:09:59.120 with not the trade war, but the many trades were 0:09:59.200 --> 0:10:03.200 the new trade Daniel mccows have changed well. Clearly growth 0:10:03.280 --> 0:10:06.760 is down up to the financial crisis twenty five years. 0:10:06.840 --> 0:10:09.800 Leading up to the financial crisis ten years ago, trade 0:10:09.840 --> 0:10:13.840 was growing seven eight per year, trade liberalization and so on. 0:10:14.200 --> 0:10:16.800 And since then we've seen much lower levels of growth. 0:10:16.880 --> 0:10:19.240 And then last year we believe probably in the numbers 0:10:19.240 --> 0:10:20.679 when they all said and done, will come in a 0:10:21.000 --> 0:10:23.480 slightly less than two percent growth. It's a very low number. 0:10:23.559 --> 0:10:25.640 You expect that to pick up. You seeing improving business 0:10:25.640 --> 0:10:27.280 in the new year. I I don't think that we 0:10:27.320 --> 0:10:29.520 will see much higher trade growths. It's just going to 0:10:29.600 --> 0:10:31.640 stay the same, despite the fact that we have some 0:10:31.720 --> 0:10:33.640 kind of trade trade between the United States and China 0:10:33.720 --> 0:10:36.120 and China, what we see in our numbers, based on 0:10:36.200 --> 0:10:38.640 the commodities that are being shipped, is that actually all 0:10:38.679 --> 0:10:41.120 of the consumer goods are holding up quite fine across 0:10:41.120 --> 0:10:43.600 the world. It's the capital goods that are not moving. 0:10:43.600 --> 0:10:46.480 And that's because business leaders like myself are worried about 0:10:46.480 --> 0:10:49.360 the future and we invest list in your Denmark and folks, 0:10:49.440 --> 0:10:52.800 I want to make clear Denmark is the space of economics, 0:10:52.800 --> 0:10:55.480 of geography in the world. It's the best academics and 0:10:55.720 --> 0:10:57.920 is that there is there is the geography of the 0:10:57.920 --> 0:11:02.040 South China, see of Singapore, of Indonesia, and that romantic 0:11:02.160 --> 0:11:04.240 straight that you're You've got to get your boats through 0:11:04.280 --> 0:11:07.200 that straight at night at any time. That must be extraordinary. 0:11:07.360 --> 0:11:10.000 Give us an update on the ability to move mayor's 0:11:10.040 --> 0:11:12.720 ships from point A to point B in the South 0:11:12.800 --> 0:11:15.720 China see in the Pacific. Today we are seeing no no, 0:11:15.720 --> 0:11:18.800 no impediments or any restrictions or anything that we need 0:11:18.880 --> 0:11:21.640 to be concerned about. You're right, the Malaga Strate between 0:11:21.679 --> 0:11:26.000 single point Indonesia is a very narrow channel, but as 0:11:26.120 --> 0:11:28.280 as of today, we don't see any problems there. You've 0:11:28.280 --> 0:11:31.080 said trade is basically where it was last year done 0:11:31.080 --> 0:11:33.920 when he said improving. Let's talk about rates. Contain a 0:11:34.000 --> 0:11:35.480 rate you speaking to your big clients, what have they 0:11:35.480 --> 0:11:37.440 said so far, what a race look like, and how 0:11:37.520 --> 0:11:39.560 things going to evolve in a year ahead. Freight rates 0:11:39.559 --> 0:11:42.760 have gone up quite substantially since the first of October 0:11:42.840 --> 0:11:45.280 last year, mainly because we have switched over to a 0:11:45.280 --> 0:11:49.040 cleaner fuel on the first of January and we're passing 0:11:49.080 --> 0:11:51.800 that onto the through the customers. Well, well, let's cut 0:11:51.840 --> 0:11:53.760 to the chase and we have to make some news here. 0:11:54.000 --> 0:11:57.600 How do your customers receive the new invoice? Well, uh, 0:11:57.760 --> 0:12:00.280 you know, it's always a procurement discussion. But at the 0:12:00.320 --> 0:12:02.200 end of the day, I believe that many, many, many 0:12:02.240 --> 0:12:05.360 of our customers recognized that it's good for everybody that 0:12:05.440 --> 0:12:08.480 we go to a cleaner, cleaner fuel. Quick final question 0:12:08.559 --> 0:12:09.880 just before we let you go, if we can get 0:12:09.880 --> 0:12:12.440 the mess stock out there for people to just to 0:12:12.440 --> 0:12:14.480 have a look at and for our listeners on radio, 0:12:14.480 --> 0:12:16.960 I'm going to tell you it is several digits long. 0:12:17.679 --> 0:12:19.360 Some people always ask me, when are they going to 0:12:19.400 --> 0:12:21.679 do a stock split? What will Mess do a stock split? 0:12:21.800 --> 0:12:24.360 This is getting ridiculous. Now we're gonna do a stock split. 0:12:25.240 --> 0:12:27.000 I could just say we don't have any plans to 0:12:27.000 --> 0:12:29.640 do a stock split. Okay, we'll leave it there. So 0:12:29.800 --> 0:12:32.520 let's go of MESQ the CEO. Look at the numbers 0:12:33.200 --> 0:12:36.360 for our listeners on on radio. Several digits long and 0:12:36.520 --> 0:12:39.319 Danish kronaw we can do digits on the radio that 0:12:39.480 --> 0:12:55.000 works about his plans for the future. The President of the 0:12:54.960 --> 0:12:56.800 the United States just pulling a pin and loving a 0:12:56.840 --> 0:12:59.079 grenade into this conference yesterday and it was a total 0:12:59.160 --> 0:13:01.199 one eighty from what we thought we heard from the 0:13:01.240 --> 0:13:04.840 administration the day before. We can get real reaction from 0:13:04.880 --> 0:13:08.680 Europe now with Mark Rutter, the Dutch Prime minister. Primarister, 0:13:08.720 --> 0:13:11.800 great to see your annual visit, Tom and myself is 0:13:11.840 --> 0:13:14.320 great to see you. How do you respond to the 0:13:14.320 --> 0:13:17.760 President of the United States? Positively because he also had 0:13:17.800 --> 0:13:20.760 a fair successful meeting Urgin Vonderlay as he's a new 0:13:20.840 --> 0:13:23.960 Your Your Commission president. They agreed that it was a 0:13:24.000 --> 0:13:26.040 good meeting that he will continue to dialogue as soon 0:13:26.040 --> 0:13:29.400 as possible. I've had myself many conversations with Trump on 0:13:29.600 --> 0:13:33.400 trade and always found him very pragmatic and very practical. 0:13:33.840 --> 0:13:37.680 He has his irritations about Europe. We have some issues 0:13:37.760 --> 0:13:40.079 with the US, but that is not a problem. That's 0:13:40.120 --> 0:13:41.760 why you have to negotiate. I think we can get 0:13:41.760 --> 0:13:43.360 a deal done. I wonder if you're more annoyed with 0:13:43.400 --> 0:13:45.200 France than you are the United States at the moment, 0:13:45.240 --> 0:13:47.400 because it's the policies of France that are causing much 0:13:47.400 --> 0:13:50.240 of the problems. Secretary Manuchin said the following this week, 0:13:50.360 --> 0:13:52.679 if people want to just arbitrarily put taxes on our 0:13:52.679 --> 0:13:57.440 digital companies. We will consider arbitrarily putting taxes on car companies. Yeah, 0:13:57.480 --> 0:14:00.320 but that's a discussion about digital text. I think still 0:14:00.360 --> 0:14:02.760 be to deal with the issue digital text in the 0:14:02.800 --> 0:14:05.600 context of the O E c D. It can also 0:14:05.640 --> 0:14:08.360 be part of the talks between the US and Europe. 0:14:08.400 --> 0:14:11.000 But don't forget the US is the number one economy 0:14:11.040 --> 0:14:13.120 the world and the most powerful country. But in terms 0:14:13.120 --> 0:14:16.080 of overall economic science is Europe is bigger. We have 0:14:16.080 --> 0:14:18.320 one a half times the science of the US. So 0:14:18.440 --> 0:14:20.920 when they deal with China, it's not about first places 0:14:20.960 --> 0:14:23.320 about second. But Prime Minister, you bring up a key point. 0:14:23.520 --> 0:14:28.040 Montana has the same voice in President Trump is Mississippi. 0:14:28.280 --> 0:14:31.720 There are many voices of your Europe. What is the 0:14:31.760 --> 0:14:35.160 most efficacious way for Europe to speak to the President 0:14:35.200 --> 0:14:39.120 of the United States and trade directly? And fourth ride 0:14:39.520 --> 0:14:42.720 with Trump? You have to be clear the Strasbourg. I mean, 0:14:42.840 --> 0:14:45.680 who's the voice that's going to set across the table 0:14:45.760 --> 0:14:48.360 from the President that is pressident Jupean Commission, because this 0:14:48.480 --> 0:14:51.640 is a European theme and we are united in the 0:14:51.640 --> 0:14:54.880 European Union on trades. We always have one of one 0:14:54.880 --> 0:14:57.200 of the few very successful things we're doing. I mean, 0:14:57.240 --> 0:15:01.000 we have very many issues in climate change, migration, but 0:15:01.120 --> 0:15:04.040 one of the consistently successful things we're dealing with this 0:15:04.120 --> 0:15:08.080 European Union is trade, and we have to work in 0:15:08.160 --> 0:15:09.840 with bon Force if you're doing that, also with the 0:15:10.000 --> 0:15:13.040 UK when they're leaving from the end from next week onwards, 0:15:13.360 --> 0:15:15.200 we have to create a new day deal. So impossible 0:15:15.200 --> 0:15:18.240 optimistic about it because we know what is important for Trump, 0:15:18.280 --> 0:15:20.760 we know what's important for it for Europe, and we 0:15:20.800 --> 0:15:24.200 are both pragmatical. The retoric in the run up is 0:15:24.200 --> 0:15:25.840 always part of the There are amazing things to do. 0:15:26.120 --> 0:15:28.440 One of them is just look at the tariston autos. 0:15:28.520 --> 0:15:30.800 If you import a car out of the United States 0:15:30.840 --> 0:15:34.000 into Europe ten percent. If you import a passenger car 0:15:34.040 --> 0:15:35.960 out of Europe into the United States, the tariff is 0:15:36.120 --> 0:15:42.320 two and a half percent, but one which goes back deckhead. 0:15:42.560 --> 0:15:45.120 Can we address this? Can we just equalize the whole thing? Well, 0:15:45.120 --> 0:15:47.440 I discussed it the stream myself, and and and on 0:15:47.600 --> 0:15:50.080 average it is about nine percent from a car coming 0:15:50.080 --> 0:15:52.080 out of out of Europe, the two and a half 0:15:52.320 --> 0:15:54.720 twenty five who together is about nine percent, and a 0:15:54.800 --> 0:15:56.720 car coming out of the US is ten percent. So 0:15:56.800 --> 0:15:59.240 it is already almost the same. This is not a 0:15:59.240 --> 0:16:01.480 big issue. I think we can do with this is 0:16:02.280 --> 0:16:05.120 before this morning. I want you to identify what the 0:16:05.200 --> 0:16:08.760 new capitalism will be for Europe. The Dutch of letter 0:16:08.840 --> 0:16:12.360 on capitalism for well in access of four hundred years 0:16:12.400 --> 0:16:15.480 as well. Do you sense with the solution of Brexit, 0:16:15.560 --> 0:16:18.200 do you sense with some form of trade agreement with 0:16:18.240 --> 0:16:21.560 the United States a less multilateral approach, that there has 0:16:21.600 --> 0:16:24.400 to be a new capitalism out of Europe and not 0:16:24.520 --> 0:16:26.800 an attitude, not a new capitalists. But we have so 0:16:27.000 --> 0:16:30.120 learned from the past. Dutch companies like Shell you don 0:16:30.240 --> 0:16:35.680 leave Phillips. Actually they're always We're both successful internationally oriented companies, 0:16:35.680 --> 0:16:38.560 but also very much rooted in the local communities in 0:16:38.600 --> 0:16:41.520 the countries which they were serving. There still are. I'm 0:16:41.520 --> 0:16:44.400 still very proud of these companies. Some of the companies 0:16:44.600 --> 0:16:49.080 recently coming into place have less of a connection to 0:16:49.200 --> 0:16:53.600 the local communities, do not fully realize that next to 0:16:53.640 --> 0:16:56.200 making a nice profit, there's also sociential impact as a 0:16:56.240 --> 0:16:58.840 company and the good you can do in terms of 0:16:59.040 --> 0:17:01.800 making sure that and the changes the environment are not 0:17:01.800 --> 0:17:03.880 taking place in a role you can play there and 0:17:03.960 --> 0:17:06.600 I believe you shouldn't put more emphasised on emphasis on that. 0:17:06.880 --> 0:17:10.200 John mentions the French and the challenges Mr McCraw has 0:17:10.240 --> 0:17:13.480 domestically or the transition of power after the miracle era 0:17:13.840 --> 0:17:18.480 in Germany. What part can the Netherlands play to provide 0:17:18.520 --> 0:17:24.800 a center to Europe and more co co more coalessing capitalism. Well, 0:17:25.040 --> 0:17:27.359 we believe that with the UK leaving, be one of 0:17:27.400 --> 0:17:31.280 the countries with the most international outlook, the most trade oriented, 0:17:31.320 --> 0:17:35.000 the most free enterprise oriented countries. We've worked very closely 0:17:35.000 --> 0:17:38.600 together with the can Scandinavian EU countries, with the Baltic 0:17:38.600 --> 0:17:43.440 country Stovenia, with Ireland, but also with Belgian and Luxembourg. 0:17:43.520 --> 0:17:46.520 Within the Benelucks. That is a powerful group of countries 0:17:46.520 --> 0:17:50.879 who all share this outlook on capitalism, on international trade. 0:17:50.880 --> 0:17:53.360 At the same time, we have a strong political relationship 0:17:53.400 --> 0:17:55.720 with Germany, which France was last week. In Italy, we 0:17:55.720 --> 0:17:59.200 are building a strong relationship with the Italian government, a 0:17:59.640 --> 0:18:02.879 violet relationship within the EU because this is needed to 0:18:02.960 --> 0:18:06.879 maintain that that outlook on the world with the UK leaving. 0:18:07.080 --> 0:18:09.360 We'll pushed for time, let's get the UK leaving into 0:18:09.359 --> 0:18:12.359 the conversation. You're very pragmatic in fact, respectful of the 0:18:12.400 --> 0:18:15.320 US administration, and that's encouraging about ultimately coming to a 0:18:15.359 --> 0:18:18.600 positive outcome with the United States. Are you equally the 0:18:18.640 --> 0:18:20.840 same with the UK At the moment, well, I have 0:18:20.920 --> 0:18:23.440 pune warrior, and that is the time we have available 0:18:23.440 --> 0:18:26.679 because they will leave formally next week, but basically they 0:18:26.720 --> 0:18:29.639 won't leave at all. They will only leave the political structures. 0:18:29.880 --> 0:18:32.000 They will still be part of everything else in the 0:18:32.000 --> 0:18:33.919 EU till the end of the year. And in the 0:18:33.960 --> 0:18:36.879 meantime we have to solve this trade deal. But for 0:18:36.920 --> 0:18:39.600 this trade deal to be solved, we need to agree 0:18:39.600 --> 0:18:42.320 on level playing field all the other issues. It's an 0:18:42.359 --> 0:18:46.280 awfully short amount of time. So I hope that coming 0:18:46.400 --> 0:18:50.200 next summer June July, that Boris Johnson will at least 0:18:50.200 --> 0:18:54.720 contemplate extending, if necessary, this transition face. At the moment 0:18:54.720 --> 0:18:56.640 he is not. At the moment, it's not. But also 0:18:56.720 --> 0:18:58.480 here I would say, let's take this step by step, 0:18:58.520 --> 0:19:00.920 and you just think it's inconceivable that you can come 0:19:00.960 --> 0:19:03.800 to the trade but it's very difficult. So and then 0:19:03.840 --> 0:19:06.080 you and there's there's still the risk in the worst 0:19:06.119 --> 0:19:08.359 case that you have a cliff at scenario like we 0:19:08.560 --> 0:19:12.320 had experienced last year. This is a nightmare scenario because 0:19:12.400 --> 0:19:15.240 what we're gonna end up with the Heathrow is Virgil 0:19:15.320 --> 0:19:17.120 van Dyke is not gonna be able to go through 0:19:17.200 --> 0:19:20.280 customs exactly like he can. Now, let's bring it the 0:19:20.320 --> 0:19:22.879 Gentleman for Britain Grandigan. He's got to get up to 0:19:22.960 --> 0:19:26.040 Liverpool and there he is stuck at Heathrow in the 0:19:26.200 --> 0:19:33.080 new unacceptable. He will return us audience, can we explain? Well? 0:19:33.119 --> 0:19:35.440 I know who he is because I've been lecture greatest 0:19:35.640 --> 0:19:39.000 center bank if football at the one of the great 0:19:39.040 --> 0:19:42.199 players teams, the reason why we will win the European 0:19:42.280 --> 0:19:45.160 champions You think you've got to absolutely not, really, no doubt. 0:19:45.240 --> 0:19:48.919 A couple of injuries. This is a part of it 0:19:49.080 --> 0:19:52.600 and they hopefully will be back in time. This goes 0:19:52.680 --> 0:19:54.920 to the we're gonna have to talk about this later 0:19:55.040 --> 0:19:57.720 on the Dutch Prime Minister's next visit to New York 0:19:57.720 --> 0:19:59.840 and London. I just left. We have the Dutch Prime 0:20:00.000 --> 0:20:02.000 stay with us and we end up talking about your 0:20:02.000 --> 0:20:04.800 favorite topic. I love watching. It's like Aaron Judge of 0:20:04.800 --> 0:20:07.320 the New York Game. He's not a body fantastic is 0:20:07.359 --> 0:20:10.280 something else. Margaret's great to catch up with you once again, 0:20:10.880 --> 0:20:15.840 the Dutch Prime Minister and damaged economic for minister does 0:20:15.880 --> 0:20:20.000 not wait in line when he goes through special Privately, 0:20:20.160 --> 0:20:23.280 I wait in line. When I would travel to Jos 0:20:23.359 --> 0:20:26.879 official capacity, I would be well hovered around, But in 0:20:26.880 --> 0:20:28.640 the private capacity I have to wait in the same 0:20:28.720 --> 0:20:42.119 lineage pharaoh with us for a good conversation of the 0:20:42.160 --> 0:20:45.480 international finance but also strength of the emerging markets and 0:20:45.480 --> 0:20:48.439 some of the weaknesses. Is the chief executive of Standard Charged, 0:20:48.480 --> 0:20:51.240 He's Bill Winters. As always, thank you so much for 0:20:51.359 --> 0:20:54.439 joining us. We every time quisy on Hong Kong and 0:20:54.480 --> 0:20:57.840