Transcripts For BLOOMBERG Bloomberg Best 20240713

Pro problems that threaten prosperity and exploring solutions. It is 100 clear to us that the cost of inaction is higher than the cost of action. We are going to follow those rules. Time is running out to address Climate Change, so i think it is right to hold our feet to the fire. Abigail its all straight ahead on bloomberg best. Abigail hello, im abigail. Doolittle. Welcome to a special edition of bloomberg best with highlights fromed the 2019 Bloomberg Global business forum. This annual event brings together most influential leaders in business and government to address the most pressing global challenges and explore opportunities for solutions. The theme of this years conference was restoring global stability. The Prime Minister of india delivered the keynote address and joined Michael Bloomberg on founder of bloomberg philanthropies and llc onstage for a conversation. We believe the earth is our mother, and we do not have the right to exploit our earth. We are only have the right to use it for our needs. India has this fundamental principle, we can understand eeds, but we do not want to cater to peoples greed. This is a very fundamental principle of ours. I believe that the challenge of Global Warming in the world today, there are governments, et cetera, that are working on it, but to be able to find a solution, its only the behavior of our citizens that can make an impact. And therefore,human behavior needs to be in harmony with nature. We need to go forward keeping the environment in mind. India initially set a target of 175 gigawatts for the production of renewable energy, today, we are well ahead of the deadline to achieve this target, we have already achieved 120. Yesterday, when i was speaking at the united nations, i set a new target for myself, 450 gigawatts with respect to climate. There is another related topic to which we have not focused our attention on and that ubject is water. In india we have taken an initiative on water which is an initiative which focuses on rain water, harvesting, recycling, we started a big Campaign Across the country, and we also want to make sure we reinvigorate our rivers. We are trying to focus on this as well. We have also banned the use of single use plastic and we are starting a very big movement to stop the use of single use plastics, so with respect to climate and the environment, we want to adopt a holistic approach and move forward together. You talked about plastic, water, renewables, do you have any expectations of reducing the amount of coal burnt in india . You are absolutely right, the Third Largest coal reserve is in india. A poor country like india, we cannot ignore it, but there is a solution to it. Number one, we will have to change the way of mining, and carry out underground mining so they dont do any damage to the environment. The other solution is coal asification. By doing coal gasification we can use clean energy, and we are calling out other countries to bring out their technologies so we can use coal gasification. We want to use gasifying coal. The assets india has, we cannot deny them. At the same time we want to see how we can use these assets in an Environment Friendly way. That is what we are focusing on. Abigail these thoughts from the head of state were followed players in the private sector. Francine lacqua moderated a lively discussion between jamie dimon and bob iger. Walt disney chairman and c. E. O. Francine what advice would you give or take from politicians . I seek advice from politicians when it comes to regulation in various countries around the world, get advice about Government Relations and the knowledge they may have about government officials, but in countries were doing business, but most politicians you deal with have never been in business. So seeking Business Advice from politicians is something i dont normally do. I respect their opinion on things. They help us enter markets, but it is pretty limited to hat. Policy is complicated. Collaboration is necessary. The road to hell is paved with good intentions. A lot of policies are supposed to lift up the people of the country and they drag them down, i can give you a million examples. Really good politicians should figure out the policy, figure out what can be achieved, and get it done, as opposed with going with the wind and thinking oversimplistic things will actually work. Countries around the world are doing great for people and some are doing terrible. The terrible is always in the name of good. Always. Just listen to the politicians. Do the right policy and move on. If you dont get reelected, so be it. Francine how often do you get asked if you are going to run for Public Office . Or for president . Pretty often. And your answer has always been no . Not now . My answer has not always been no, but my answer is no. I considered it at one point. I discussed it with my wife and she said you can run for any office you like just not with this wife. Find someone else. That was somewhat discouraging. Francine how many times have you been asked . I see people ask all the time, hundreds of different people, so i dont think someone should be flattered. Im not going to, i love what i do, i think we can make our production contribution around the world from the platform i have. Francine is that because you think you can make a bigger difference as chief executive . Or youre not made for Public Office . Jamie its the best i can do. Do my job well and that does lift up people around the world and finance economies, cities, states, and i love it. Ill do Something Else one day. Francine is there a vacuum left by politics and politicians that chief executives must fill . Bob i hope not. I dont think there is anything wrong with a chief executive going into politics, but i dont think theres a vacuum that needs to be filled. The world needs great leaders. I think our political system, at least in the united states, is not designed to develop great leaders or to encourage more people to seek Public Office. Jamie theres probably an overlap of skills between a ceo and a good politician. Its not a complete overlap. You are basically getting to an ring that is something you havent dealt with before, the political ring. They try it and its a dismal failure. They dont have the skills. You get out there and take questions at town halls and you wouldnt expect a ceo to be able to be good at Something Like that. Francine you have to be popular as a politician, do you have to be liked as a chief executive . I dont think you have to be liked, you have to be respected. It goes a long way. I think you have to be appreciated. Its not a popularity contest. If you try to run a popularity contest, then you dont make the tough decisions. Thats difficult. I think you have to be fair, and known as somebody who is fair and accessible and communicative, but popularity is not one of them. There are a few things that are critical. Abigail still ahead, as we look back on the 2019 Global Business forum, perspective from a queen and heads of state and government, discussing crucial issues. Not a positive idea to withdraw from the nuclear agreement. Abigail how can the power of finance combat Climate Change . You are raising capital that has to be segregated. Abigail up next, legendary figures in banking and finance weigh in on the global economy. This whole movement particularly in europe is some kind of warning sign, some type of wakeup call. Abigail this is bloomberg. Abigail this is bloomberg best. Im abigail doolittle, looking back at the 2019 Global Business forum. The conference brought together chief executives from some of the worlds biggest banks, Asset Managers, and prominent investment groups. Lets start with a panel that put an illustrious trio on the ame stage. This Panel Discussed navigating global instability. When you have 13 trillion of negative Interest Rates, i dont even know what a negative Interest Rate is. Why would i take my take my money and give it to somebody, for the privilege of them holding it. I have to pay them like its a storage unit. Im supposed to get interest when i give people money. As Interest Rates go down, most of those places that have those negative Interest Rates, it is not stimulative. Because banks have trouble earning money in that kind of environment. If they dont do well, they dont grow their capitals. They cant extend credit, and ountries dont grow unless there is credit extension. This whole movement, particularly in europe to negative Interest Rates, is some type of wakeup call. A warning sign. How did we get in that position . Why are we in that position . Not us as americans, but us as financial people looking at the world. Brian may know more than i do. It just seems thats not ossible. Why does this negative rate environment that we see around the globe to you that there is some underlying weakness that were missing . We know the obvious problems out there, but is there something substantial . I think steves point is right, there is the Monetary Policy decision to take rates to accommodate the economy and growth. They are lower than they have been historically, but positive. Other places are negative. There is a significant amount of it. I think there is a debate whether it transmits to the economy. If you look at some of the countries where the rate structure has been negative for five years, the banks have to pay interest because they are not going to give us 100 and get 95 back and think it is a great thing. In the u. S. , you already have a lexible economy. Talented people. A lot of people, deep Capital Markets. The Banking System restructured. A set of rules you can understand. One law that covers the economy, the largest in the world, as opposed to multiple laws. You see the u. S. Continue to grow. Unemployment is low and consumers are spending. The question really from a macro sense, all of the interesting things to ponder and worry about is offset by 70 of the u. S. Economy speeding up this activity all year. And thats as big as chinas economy. When was the tension going to be really wrestled to the ground . Thats the question. I put that to you because you are operating in a hundred countries, i believe. Are we at a breaking point where we may see something snap, or can we continue on, especially from a consumer perspective, in a nice, gentle trajectory . Im not worried about growth. We have enough focuses of growth to come up. You heard the Prime Minister of india this morning, and i dont think what he was talking about was hype. If india gets moving again, and i think he has taken steps recently, like the tax cut, we which should do what exactly the tax cuts did here, well get another engine of growth for sure. All of the focus has been on america, rightfully. I think you will see an uptick in a lot of other parts of the world. It might be that we need more fiscal stimulus, perhaps we did earlier. It would be unusual at this stage in the game, for sure. Perhaps in europe, more fiscal stimulus. You dont want to get to the place where the central bank is monetizing that. There should be two separate decisions. Is this the time for fiscal stimulus . Id argue in the u. S. , probably not right now. Maybe in the future. If we have a crisis. And a separate independent Monetary Policy that takes the fiscal situation into consideration. We see, in the u. S. And europe, a lack of inflation. Before we had it in japan. Is there a danger in that that lulled into complacency and we might have to take some action to get it to come back . The citizenry at large are doing this for the same thing. We are looking at the strength, wages will probably drop some, that may be a good thing. What we are confronting is that interface of centralbank targets versus the reality and the fact that none of the Central Banks really know how to engineer greater inflation in this world of global labor markets, Global Capital markets, and its becoming very difficult to get back to some of those targets of 2 , more or less. An impact fund is a vehicle that can invest in debt or equity instruments, but is particularly targeted at for example,fitting some of the svgs of the u. N. , but measuring the impact the investment has, typically the carbonization or reducing pollution. This is where the measurement, statistics, and data become important. The engagement by the asset owners and Asset Managers with those organizations, be it public or private sector, will be critical. I dont think standardization will be the answer. Its part of the process. Who are you accountable to, in terms of the objectives set . We are accountable to our own moral standards and following the lead of the u. N. , but also, the asset owners, which trust us with their money. They often have different and diverse aims. Do you see a shift, in terms of direction of investment . We talked about it earlier. In the back. I think it is about 100 of our clients feeling this is a very important topic. We want sustainability to be at the core of what we do. We have decided to look at it in three different ways. One is to bring the framework into investment process to make sure the countries to invest in our on a journey with the framework. The second is to see to what xtent many investors will fill the usngds, the 17 of them, a number of them. The third is to look at decarbonization, sustainable investments, water efficiency, addressing issues of water scarcity, and looking at sustainable solutions. That includes Environment Solutions that Companies May have, or even things like sustainable financing to allow more of these Infrastructure Projects that are needed and comes to fruit in a way that does not harm the environment. Thats all good from that point of view, but how receptive are the companies to these ideas . Increasingly, we are finding a more receptive audience. Everyone knows this journey has been going on for some time. Their own customers are looking for them to embrace the journeys, their employees are looking for that as well. This is a good thing. If you look at the Business Roundtable by saying it is a stakeholder responsibility rather than shareholder, most of these companies we are investing in are thinking about this themselves. Abigail youre watching a special edition of bloomberg best, with coverage of the 2019 Bloomberg Global business forum. I am abigail doolittle. Restoring global stability was the theme of the conference. Its agenda paid considerable attention to environmental instability. Mark carney moderated a session on harnessing the power of capital to fight Climate Change. It featured top executives from the World Largest pension fund, the Worlds Largest insurance company, and one of the worlds eading investment banks. The conversation has amped up materially over the course of the last year or two. There is no place i go with either ceos, investors, market participants. This is not a significant conversation. Volume is different, particularly in europe. You can feel the ground swell of popular sentiment that the urgency of this is elevated. In the u. S. , it depends where you are, in terms of level of engagement. It is up everywhere. There is a lot of focus on it. From a Capital Markets perspective and availability of capital, it is relatively niche in terms of where it operates. There is growth of green bonds over the course of time. Significant, last year, about 250 billion of issuance of green or sustainability linked bonds. That is very, very small, it is 1 , Capital Markets activity, it is very small. How do you find things that more mainstream is into the Capital Markets . Green bonds are terrific, but one of the issues is green bonds segregate capital. You are raising capital that has to be segregated in a certain way. The u. K. Is going to be in charge of cop 26, the Climate Policy process, next year, along with italy, and the following year, u. K. s g7 chair and italys g20 chair. One of the focuses would be what needs to be done to advance mainstreaming and aligning private capital flows to a two degree world . A subtwodegree world . We need to have clear policy framework. At the same time, the investors should take advantage of the lack of clear policy at the moment to make a better return for the investors. Pushing the policymaker to create the framework and to increase the profitability of our investment. Professional investors should take advantage at the moment. We really dont see that very often. We need more Publicprivate Partnership in this space, so the Pension Funds and Insurance Companies can work with the Development Banks and the banks should be able to sell mature portfolios, rather than ask for more capital in order to make room for the private investors in that space. That is one area. The second area, which is important in my view, is there needs to be more pressure on the sovereigns. I believe the imf needs to incorporate climate analysis in its analysis of the residence of countries. That would probably make the way for a better alignment for Better Capital and public capital. There are opportunities to be creative. Fundamentally, i will go back to the longterm policy framework and create the commercial incentive pressure on government. When you get to the emerging markets, the multilateral Development Banks are important. You dont have the Capital Formation to support what we are talking about, so you need help. Those are the things i would emphasize. Abigail much more coming up from the Bloomberg Global business form. Technology can solve a host of problems and create risks. Top executives discussed the implications of regulation. Regulation and innovation are upfront. Abigail plus, insight from the Public Sector has the state of governments speak on topics of global importance. Trade wars are not good for anyone. They are not good for the u. S. , china, not good to the emerging market. Abigail this is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] abigail on this special edition, highlights from the 2019 Bloomberg Global business forum. Governmentand leaders spoke with bloomberg begin with which conversation with the Prime Minister of spain, pedroia sanchez. We are following closely what is happening with brexit. I was explained in catalonia it creates a huge fracture in society. Not give them a constructive way out. In order todialogue restore and rebuild. You suck president rouhani yesterday. Do you think they were responsible for the drone attack . The opportunity i have with the opportunity with is it is not ani good idea, not a positive idea to withdraw from the nuclear agreement. To reinforce our commercial relations with iran. That weel confident could meet our obligations for 2020. We will be submitting our budget within the next couple of weeks. We are in discussion with institutions as we speak. We feel comfortable that we could find a compromise that will not endanger our fiscal sustainability. Could be keep alive that discussion . Momentum supporting our arguments. You are already talking with some of the guarantees about the bad loans. The Balance Sheets remain somewhat crippled. Is there anything you do so greek banks will pump more credit into the economy . We have very quickly moved towards putting in place in Asset Protection scheme that will allow the banks to offload a large number of mpes. That will suddenly improve the Balance Sheets and allow them to expand credit and provide funds to the economy. As the Business Climate improves, as the asset prices improve, that will also help the balance sheet. We will legislate along those lines. To make sure we tie up the loose ends within the next couple of months. The instrument is going to be in place very quickly. We will have the exports of colombian green peppers. We are exporting trends for aggregated value. Exporting products. We have opened in the u. S. Lightly the avocado market. We are trying to identify new products that have a positive impact in columbia. Asian market, particularly china, i was on a mission maybe a month and a half ago. Maybech two, three very important resources. We opened the banana center for columbia. We will get at least 40 million per year of bananas that will be bought in the chinese market. For theopen the ground avocado in china. We are working the beef sector pretty soon. We have made calls on chinese investors to identify projects. N columbia theres a lot of things taking. N place there was an announcement of the financing of more than 400 million to a four generation highway in columbia. Interest in the coast and there is interest of chinese corporations to participate in the bids. What about other parts of asia, i know you have free trade agreements. We have a freetrade agreement with south korea. We have called, it will be a great opportunity for columbia to open the beef market. Same time, we want to be call korean investment to participate in infrastructure in columbia and sectors like tech and Creative Industries were south korea has been taking a lead in the nation. But we have accomplished the last 10 years is basically to make financial existence for possible who did not have access to financial until now. We have been working with countries from india, pakistan, argentina tozil, actually make this an important issue. Also work with Global Partners the access to financial services. The fact that it is actually a ,ittle bit of a business issue a bank far away in the rural areas. Technology we have been able to really grow tremendously. In many countries, they do have access to financial services. Also changes in regulation. You go around the world, where is the most resistance . Do you get resistance from government . Banks . Where do you get the resistance . Ofchanges something a lot the sectors will be resistant to. A central bank will not be very happy to immediately give a banking license. Trusted and the risks with the network operator. We are seeing the change. We are seeing companies be leaders in the front. It is not actually csr, is something that is good to do and smart to do. Moving towards europe on a very continuous path. One to the other neighbor, we have free trade agreement. All of that continues to move towards european. I will not so you what we have. Im sure you are looking at it to see what happens. We are a small country. What we need is my second message here in the u. N. , we need movement. We need to get closer and closer and somebody will discover that we are already europeans and we are in europe. Georgians are completely european. The fact that they are christians, one of the oldest the state wasn converted in the fourth century. That is why sometimes we say this. This is bloomberg best review of the Global Business forum. Chief executives from some of the worlds most Prominent Companies have much to say about increased focus on sustainability. It is 100 clear to us the cost of inaction is higher than the cost of action. The Business Case for sustainability is simple. Maybe most importantly it is a magnet for talent. Talk about plastics around the world, how are you addressing that . Plastic is a wonderful material. It has a very good carbon footprint. It is highly efficient. Too much of it ends up in the environment. The economy and out of the environment. The way we are tackling it is less plastic, that are plastic. 50 of the plastic we use will come from recycled resources. We are looking at plastic concerns. Moves have left a much worse carbon footprint. Fundamentally a good material when used responsibly. World,ou look around the we only speak a little bit about the fact that we waste a lot of food after we have bought it. Changing, youare will see changes like that elsewhere in the world. How do we actually provide the food . There will be changes depending on where you are in the world. Here in north america and europe it will be about how much we consume. What do your customers want . It is about service, range, choice. We are 100 years old this year. That is what we focused on form 100 years. That is what we are focused on for the next years. Is there anything in your control that you could change . Of the would come back to what we are talking about this week which is food waste. That is 940 billion of value destroyed. It takes 25 of the worlds resources. The 10 largest retailers and Food Service Providers are going to recruit 20 of the biggest suppliers against the journey of food waste by 2030. That is the big thing as well. Im here at climate week because really it is the epicenter of the conversation. Serious,ation that is significant, if not addressed. Really seeking to drive systemic change in relationship to having been important and taken seriously at the level to enable the future that we want and need. You mentioned farmers, there have been issues about where coco gets raised. How do you address that . He also have things like packaging of the snickers bars and mars bars. Theres a range of issues that face the planet. When it comes to Something Like coco, which is grown by small farms around the world, it really means rolling up our sleeves, trying to understand in challenges they face terms of driving sustainable income. It takes a partnership across to multiplicity of actors drive change. That is what we are endeavoring to do. A few of the biggest names in Silicon Valley took the stage together on a Breakout Panel on technology. Apple Vice President of alphabet, they spoke about how they are dealing with regulatory scrutiny. What we are doing very clearly is working with congress. It is clear we support National Privacy legislation. As always, the devil is in the details. It is incumbent on each of us to lean in and provide insight into the areas that there would be unintended consequences. Asked ofion is often are you paying your fair share in tax . Reality is we paid the average the last three days. That still exists. One of the key issues is the it isure is outdated gathering more support for a fundamental redo. The devil is in the details. It does feel like it is progressing. If you want to be a constructive part of the solution you have an obligation to bring whatever insight and Technical Expertise you have so that we end up with smart regulation. One of the dangers of the Regulatory Regime in the direction we are going right now and innovation are not friends. We will have the dialogue on a global basis and when the rules are clear we will follow those rules. Whatever regulation areas, we would want there to be room for innovation at a certain level at the much lower scale so you could have startups who have some sandbox to innovate in and take some risks in. Once they get to a certain side, they have to regulate just like everyone else. The direction, the dialogue, i think it is positive dialogue. Large Global Companies will do what they should. To create a sandbox for innovation that 10 years ago created uber and 10 years ago created google for that innovation. I think that is incredible. I think some of the rulemaking is problematic for startups. About fiveo think Different Things versus building a great product that consumers love. Some of the regulations there, there is a european startup out there. They have one more thing to worry about. Ultimately, i think it is a good thing. It is a necessary ingredient. We have toforward create a sandbox. Aigail youre watching special edition of bloomberg best with highlights from the 2019 Global Business forum. Leaders were brought together from the public and private sectors to explore two of the most important issues affecting the global economy. Between the environmental goals and the expectations we should have with actually our trade talks. With our free trade agreements. Ability when we negotiate multilateral to make sure we have environmental principles. In the world in some ways nexusis fear around this and climate. Great andion has been trade has lifted hundreds of millions of people out of poverty, there is the other side of that around the protectionism of people having lost jobs. Subsidies into that, they move slower than they otherwise would. We can incorporate innovation. It has been criticized lately which isf the fires, extremely worrying. You cannot accuse the agreement of causing that. It will take another two years, it is not legally scrubbed. We think that is a way to keep brazil and others in the climate agreement and make sure they live up to it. Is a linkage between the trade agreement and the cloud agreement. That is why we cannot right now have a comprehensive trade agreement with the u. S. Are you running out of time and the court of Public Opinion . They do think the trade is a bad idea and it is bad for the climate. How do you change that narrative . How do you bring these together so the climate activists dont think about that. Time is running out in the court of Public Opinion because time is running out to address Climate Change. Issues is that it has a tool for blame. If a trade agreement is not delivering greater equality, greater reduction of the income divide between the well off and theyoor in our countries, have to answer that question as well. The same i would say for environmental policy. It cant take the brunt of the blame but could provide some of the answers. Often People Like Us who are protrade are told about the downside, that is not sufficient as an answer. We need explicit answers. Not just saying what the positive are elsewhere. Take moreably need to radical action than that. Im a big believer in the combination of the stick and the care. In many ways it is the carrot that has the ability. I dont like just having the stick. I think the stick has a rationality of behavior. We need to change the paradigm and incentivize people to innovate so we really bend the curve. Be all forat will this special edition of bloomberg best with highlights from the 2019 Global Business forum. Find much more coverage of the conference at bloomberg. Com along with all of the latest Business News and analysis 24 hours a day. Thanks for watching. This is bloomberg. These days you need faster internet that does all you expect and way more. Thats xfinity xfi. Get powerful wifi coverage that leaves no room behind with xfi pods. And now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device thats connected is protected. Thats a 72 a year value. No one else offers this. Faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. Can your internet do that . Announcer the following is a paid advertisement for time lifes musical collection. I got a feeling the blues goes on announcer in the 1950s and 1960s, Country Music poured out of the honky tonks. Hello walls Music History was made. Howd things go for you today announcer legends were born. I keep a close watch on this heart of mine