FRANCINE:
GOOD MORNING, EVERYONE. WELCOME TO OUR SPECIAL COVERAGE
FROM THE WORLD ECONOMIC FORUM. I’M FRANCINE LACQUA LIVE FROM
DAVOS. COMING UP, FRESH TENSIONS IN
THE MIDDLE EAST AS PAKISTAN CARRIES OUT STRIKES ON MILITANT
GROUPS INSIDE IRANIAN TERRITORY FOLLOWING SIMILAR ATTACK
BUSINESS TEHERAN YESTERDAY. THE PAKISTAN PRIME MINISTERED
CUT SHORT HIS VISIT TO DAVOS TO RETURN TO ISLAMABAD.
DOUBT ON A DOVISH FED IN MARCH. COMING UP FROM DAVOS THIS HOUR,
INTERVIEWS WITH THE DIRECTOR GENERAL OF THE IAEA, THE
INTERNATIONAL CHIEF EXECUTIVE OF GOLDMAN SACHS.
LET’S START IN THE MIDDLE EAST WHERE TENSIONS ARE ESCALATING
BETWEEN IRAN AND ITS NUKE ARMS NEIGHBOR PAKISTAN.
PAN STAN HAS CARRIED OUT STRIKES ON MILITARY GROUPS
INSIDE IRAN TERRITORY. PAKISTAN’S PRIME MINISTER HAS
CUT SHORT HIS TIME HERE IN DAVOS AND IS RETURNING HOME TO
DEAL WITH THE UNFOLDING CRISIS. WE’RE DELIGHTED TO BE JOINED BY
JOHN DOYLE. ALSO A BROKER IN INSURANCE.
YOU UNDERSTAND RISK AND PREMIUMS THAT NEED TO BE PAID
TO GO THROUGH THE RED SEA. ARE YOU WORRIED THIS ESCALATES? >> YES, I’M QUITE WORRIED ABOUT
THE RECENT ESCALATION OVER THE LAST COUPLE OF DAYS AND THE
POTENTIAL FOR FURTHER ESCALATION AND AS A RISK
ADVISER GEO-POLITICAL RISK IS REALLY AT THE TOP OF THE AGENDA
THIS WEEK AND THE CONVERSATIONS WE’RE HAVING WITH BOTH THE
PUBLIC SECTOR AND PRIVATE SECTOR.
ONE OF THE ROLES WE PLAY IS HELPING CLIENTS UNDERSTAND WHAT
THAT MEANS FOR THE SUPPLY CHAIN RISK AND HOW GEOPOLITICAL
EVENTS MAY IMPACT CYBER RISK AND SHIPPING AS WELL.
THAT IS A MAJOR CHALLENGE. FRANCINE:
WHAT HAPPENS TO SHIPPING IN THIS KIND OF ENVIRONMENT?
HOW MANY PERCENTAGE OF BOAT ALSO ACTUALLY HAVE TO GO AROUND
TO MAKE SURE THEY ARE SAFE AND THEY CAN ACTUALLY HAVE
INSURANCE? >> INSURANCE IS A CRITICAL
ENABLER TO THE SHIPPING INDUSTRY AROUND THE WORLD.
NOT JUST THE RED SEA. WE HAVE SEEN CHALLENGES TO THE
WAR IN UKRAINE AROUND THE BLACK SEA.
SPECIFICALLY TO RED SEA, THE INSURANCE MARKET IS IN GREAT
TURMOIL CURRENTLY PRICES HAVE INCREASED SIGNIFICANTLY.
IN FACT UP ABOUT 10 TIMES BUT MANY SHIPPERS ARE NOT WILLING
TO EXPOSE THEIR PEOPLE OR FOR THAT MATTER THE VESSEL OR THE
CARGO. THAT IS REQUIRING SHIPPING TO HEAD DOWN DIFFERENT PATHS AND
ANDROUTES. FRANCINE: WHEN I SPOKE TO INVESTORS, THEY
SAY WE DON’T KNOW THROW SCENARIO PLAN.
THEY IGNORE THE RISK. WHAT ARE YOU DOING TO MITIGATE
THIS RISK? >> WE’RE TRYING TO WORK WITH
OUR CLIENTS GETTING IN FRONT OF RISK, UNDERSTANDING WHERE THE
RISKS LIE AND AGGREGATE. DO SOME SCENARIO PLANNING AND
IF POSSIBLE MITIGATE THE RISK IN ADVANCE. FRANCINE:
THIS MEANS A LOT MORE EXPENSIVE. THE CHIEF EXECUTIVES THAT YOU
ADVISE, ARE THEY ALGATING A LOT MORE MONEY TO GET GOODS FROM A
TO B? >> THEY ARE TRYING TO BETTER
BALANCE RESILIENCE WITH EFFICIENCY.
IT WORRIES ME A BIT ABOUT THE ECONOMIC CONDITIONS.
THERE ARE SO MANY RISKS THROUGHOUT AND THE RISK OF
INFLATION FROM THINGS LIKE SHIPPING COSTS AND GETTING
GOODS TO MARKETS IS A CONCERN THAT I HAVE. FRANCINE:
2023 WAS IN MANY WAYS SHOWED A RESILIENT ECONOMY BUT WE SAW
POCKETSOR HUGE CONFLICTING TENSION.
ONE IS WHAT HAPPENED IN THE BLACK SEA WITH GRAINS.
I DON’T KNOW WHETHER THERE IS A TEMPLATE TO TRY AND DE-ESCALATE
THESE SITUATIONS. >> THERE IS.
I’M VERY PROUD OF THE WORK WE DID WITH THE GOVERNMENT OF THE
UKRAINE TO FUNDAMENTALLY GET GRAIN MOVING AGAIN THROUGH THE
BLACK SEA. IT IS SUCH A CRITICAL PART OF
THEIR ECONOMY. SO WHILE AT WAR, TRYING TO
ENABLE THE RESILIENCE OF THE UKRAINE IS A REALLY IMPORTANT
THING. WE WORKED WITH THE GOVERNMENT
THERE AND PUT SOME STRUCTURE TOGETHER. IT IS A PUBLIC-PRIVATE
PARTNERSHIP. WE HAVE SEEN MORE RISK BEFORE.
WE HAVE WORKED AROUND IT. THERE ARE LESSONS THAT HAVE
BEEN LEARNED THAT WE CAN APPLY TO THE RED SEA. FRANCINE:
HOW MUCH DO YOU WORRY ABOUT 2024? WE’RE NOT SURE WHERE A.I.
IS GOING. THERE IS CLIMATE CHANGE AND
CONFLICT. >> I’M POSITIVE ABOUT 2024,
HAVING SAID THAT, I LOOK BACK TO A YEAR AGO WHEN WE HAD A
SIMILAR CONVERSATION. THERE MAYBE WAS TOO MUCH
PESSIMISM A YEAR AGO. I WORRY THAT FOLKS A LITTLE BIT
TOO OPTIMISTIC TODAY. BUSINESS LEADERS NEED TO BE AWARE
WHERE THE RISKS ARE. THE TECHNOLOGY RISK AND ADVENTS OF A.I.
AND IT CONTINUES TO ESCALATE. I’M WORRIED ABOUT THOSE RISKS.
WE NEED TO BE PREPARED FOR A BROADER RANGE OF OUTCOMES AND
THINKING ABOUT RISK AND PUTTING IT AT THE TOP OF MIND IS
CRITICAL. FRANCINE: WILL THEY BECOME LEERN IN TERMS
H.O.V. HOW THEY OPERATE? JOB LOSS? IT IS UNCERTAIN. >> IT IS ALWAYS UNCERTAIN.
YOU NEVER ARE SURE HOW THE ECONOMY IS GOING TO EVOLVE. THE COMPLEXITY IS WHAT SETS
TODAY APART FROM OTHER YEARS. A BIT MORE DEFENSIVELY WITH A
LEVEL OF OPTIMISM. BEING AGILE IN THIS MARKET IS
CRITICAL. FRANCINE: EVERYONE’S CONCERN IS THAT
THERE IS A SURVEY, WE HAVE THE RISKS AND THEN SOMETHING POPS
OUT OF NOWHERE LIKE WE SAW IN THE LAST THREE TO FOUR MONTHS.
CAN YOU AREA A POTENTIAL BLACK SWAN. I DON’T KNOW IF THERE IS
SOMETHING, THE MARKETS, LIQUIDITY OR SOMETHING THAT
YOU’RE LOOKING OUT FOR THAT WE’RE NOT TALKING ABOUT? >> I THINK SO BETWEEN
GEO-POLITICAL RISKS, ECONOMIC RISKS, AGAIN, THE RISK OF
INFLATION, CLIMATE-RELATED RISK CAN CREATE ALL SORTS OF
CHALLENGES. LABOR RISK. SOCCER ISSUES ARE CRITICAL.
FRANCINE: ALL RIGHT. TIGHT LABOR MARKET. >> THE THING I WORRY ABOUT WITH
THE EXPLOSION OF A.I. MISINFORMATION RISK.
WHAT THAT MIGHT MEAN FRANCINE:
WE SEE PEOPLE POPPING IN. THIS IS WHAT HAPPENS AT DAVOS.
GREAT CONVERSATION. JOHN DOYLE. COMING UP, WE’LL BE HEARING
FROM THE HEAD OF META BUSINESS GLOBAL GROUP. THIS IS BLOOMBERG. FRANCINE:
WELCOME BACK TO "THE PULSE." ARTIFICIAL INTELLIGENCE HAS
DOMINATED DISCUSSIONS AT THE WORLD ECONOMIC FORUM THIS WEEK.
HOW TO MAKE IT PAY ARE AMONG THE KEY AREAS BEING DEBATED.
WE’RE JOINED BY THE HEAD OF GLOBAL BUSINESS GROUP AT META. ALSO WELCOME TO OUR GLOBAL
BLOOMBERG AUDIENCE. A LOT OF PEOPLE ARE EXCITED
ABOUT THIS NEW OBJECT. NOT MANY PEOPLE UNDERSTAND IT.
YOU DO. WHAT’LL BE THE MOST TRANSFORMATIONAL FORCE AT META
THIS YEAR? >> IT IS A BIG CONVERSATION
HERE THIS WEEK AT DAVOS. IN MANY WAYS THIS COULD BE
CALLED THE A.I. CONFERENCE THIS TIME.
MARK HAS BEEN A PIONEER IN THIS AREA.
WE SET A RESEARCH LAB OVER A DECADE AGO. A.I.
HAS BEEN AT THE HEART OF META SINCE THE VERY EARLY DAYS OF
NEWS FEED. WE ARE USING IT IN A NUMBER OF
WAYS. ON THE RANKINGS. ON THE MONETIZATION SIDE AS
WELL. CONNECTING THE BEST AD TO RIGHT
PERSON FOR THE ADVERTISER. THINGS HAVE CHANGED
DRAMATICALLY IN THE LAST FEW YEARS.
WE’RE IMAGINING A WORLD WHERE YOU CAN HAVE PERSONAL
ASSISTANCE. NOT JUST ONE ASSISTANT BUT
MULTIASSISTANTS THAT CAN HELP IN VARIOUS ASPECTS OF YOUR LIFE.
THERE ARE MANY DIFFERENT AREAS AND I THINK ABOUT HOW IT IS
CHANGING ADVERTISING SIDE OF THINGS.
LAST YEAR WE BROUGHT TOGETHER ALL OF OUR ADVERTISING
PROPERTIES THAT ARE USING A.I. THE PERFORMANCE THAT WE’RE
SEEING HERE FOR OUR ADVERTISERS, AN INCREASE ON
AVERAGE OF 32%. A DECREASE ON ACQUISITION ABOUT
17%. ADVERTISERS ARE USING AT LEAST
ONE OF THOSE PRODUCTS NOW. THERE IS A LOT OF MOMENTUM.
FRANCINE: HOW DO YOU TRANSFORM IT INTO
BUSINESS? >> THAT IS A GOOD EXAMPLE IN
TERMS OF HOW ADVERTISERS ARE USING IT.
I THINK OF IT LIKE EASY BUTTONS. IN THE PAST WHAT WE’RE ALLOWING
ADVERTISERS TO DO NOW, IT MIGHT HAVE TAKEN THEM 15-20, 30 STEPS
TO SET UP A CAMPAIGN. YOU CAN DO IT IN ONE BUTTON NOW.
YOU CAN FIND PEOPLE THAT YOU MIGHT HAVE THOUGHT DIDN’T
WANTED TO BUY YOUR PRODUCT AND PUT THAT IN FRONT OF THEM.
ANOTHER ASPCT IS ON THE CREATIVE GENERATION SIDE.
WE’RE PUTTING THE TOOLS IN THE HANDS OF THE SMALLEST AND
BIGGEST ADVERTISEERS IN THE WORLD TO BE ABLE TO CHANGE THE
BACKGROUND, CHANGE THE COPY. CHANGE THE DIMENSION.
THESE THINGS ARE COST SAVING. IT IS NOT JUST ABOUT HOW TO
MAKE MONEY BUT ALSO REDUCING COSTS IN TERMS OF THE NUMBER OF
STEPS SOMETHING MIGHT HAVE TAKEN. FRANCINE:
IS IT FAIR TO SAY META HAS GONE FROM METAVERSE TO A.I.? >> BOTH. A.I.
IS VERY MUCH THE BUILDING BLOCKS.
WHETHER IT IS ON THE HARDWARE SIDE.
THE FACT THAT WE HAVE MIXED REALITY RELIES ON IT.
I’M TALKING ABOUT IT ALL THE TIME. I DID A MAIN STAGE PANEL ON IT.
WE’RE SEEING IT BEING USED IN SUPPLY CHAINS.
SUPPLY CHAIN TRAINING. A LOT OF TRAINING. FRANCINE: THERE IS A MASSIVE CHALLENGE
THIS YEAR THE. FAKE NEWS. ARE YOU CONFIDENT THAT YOU WILL
BE ABLE TO MINIMIZE FAKE INFORMATION ON YOUR PLATFORMS? >> THE ELECTIONS IS A REALLY
IMPORTANT AREA FOR US AND PROTECTING THE INTEGRITY OF E
RXS IS SOMETHING WE HAVE BEEN WORKING ON FOR MANY YEARS.
WE’RE NOT JUST WAITING FOR 24. THERE IS BIG ELECTIONS ALL THE
TIME ALL OVER THE WORLD. AS THE TECHNOLOGY IS ADVANCING,
WE’RE FINDING OUT THE PLAY BOOK THAT WE HAVE, WE HAVE VERY
CLEAR POLICIES. WE PUBLISHED IN NOVEMBER THAT
WE’RE GOING TO BE ALWAYS ON 24 IN THE U.S.
NOT JUST THE U.S., INDIA AND TUNISIA AS WELL.
WE HAVE THE POLICIES. WE HAVE OVER 945 FACT CHECKERS
AROUND THE WORLD WHEN IT COMES TO MISINFORMATION.
ON THE POLITICAL -- IT IS LABELED AND GOES INTO AN APPS
LIBRARY. ANYBODY CAN HAVE A LOOK AND SEE
WHAT IS OUT THERE. FRANCINE: WILL YOU HIRE MORE FACT
CHECKERS BECAUSE A LOT ISA AT STAKE IN A BIG ELECTION YEAR? >> WE ALREADY HAVE 90.
LOOKING AT WHERE ELECTIONS ARE HAPPENING.
IT IS SOMETHING WE’RE ACTIVELY LOOKING AT. FRANCINE:
SO THE EUROPEAN UNION IS ENFORCING SOME OF THE
COMPETITION CONTENT RULES TO TRY TO REIGN IN BIG TECH. >> YES.
IT ABSOLUTELY -- WE INTEND TO DO THAT. FRANCINE: A.
SIRVETION FASCINATING. SO MANY PEOPLE ARE EXCITED
ABOUT IT. WE NEED TO REGULATE IT AND PUT
THE HUMAN AT THE FRONT OF IT. DO YOU HAVE ANY CONCERNS IF A.I.
GOES UNCHECKED WE DON’T REALLY KNOW WHAT IT BECOMES AND WHAT
IT MEANS FOR JOB LOSS, WHAT IT MEANS FOR HOW HUMANS INTERACT? >> LIKE WITH NEW
TECHNOLOGY, YOU NEED REGULATION AND ALSO THOUGHTFUL
REGULATION THAT CAN ENHANCE THE INNOVATION BEHIND THAT.
THAT’S WHY WE LIKE TO WORK WITH REGULATORS AROUND THE WOULD SO
WE CAN SHARE DIFFERENT OPINIONS. THAT IS IMPORTANT. FRANCINE: WHAT WILL WE SEE THIS YEAR
AROUND THE WORLD. THERE COULD BE ANOTHER GLOBAL
A.I. SUMMIT. DO THOSE THINGS MATTER? >> IT IS REALLY IMPORTANT.
WE’RE NOT GOING WAIT AROUND FOR THE REGULATION TO COME INTO
PLAY. WE’RE GOING TO GET AHEAD OF IT.
WE’RE BUILDING IN RESPONSIBLE A.I.
INTO EVERY SINGLE ONE OF THE PRODUCTS THAT WE’RE CREATING.
THE WORK WE HAVE DONE WITH PRIVACY.
WE HAVE AROUND 40,000 PEOPLE AT THE COMPANY WORKING ON THESE
ISSUES. IT IS AN AREA WHERE WE SPENT
OVER $20 BILLON TO ENSURE THE SAFETY TO HAVE PRODUCTS THAT WE’RE PUTTING OUT THERE.
WE’RE GOING TO KEEP WORKING ON THIS ANYWAY.
WE’RE GOING TO KEEP ENSURING THAT WE’RE THINKING ABOUT THESE
ISSUES RIGHT FROM THE VERY BEGINNING BUT ULTIMATELY THIS
WORKS BEST WHEN WE CAN WORK AS AN INDUSTRY TOGETHER AND WITH
REGULATORS. FRANCINE: HOW's IT GOING? >> IT IS GOING GOOD. FRANCINE:
A SOURCE OF REVENUE? >> WE HAVE 100 MILLION PEOPLE
USING IT. WE JUST RECENTLY LAUNCHED IT IN
THE U.S. AS WELL. NO PLANS TO MONETIZE JUST YET.
FRANCINE: YOU’LL HAVE TO COME BACK AND
TELL US WHEN YOU DO. THANK YOU SO MUCH.
HEAD OF GLOBAL BUSINESS GROUP AT META.
COMING UP, WE’LL BE JOINED BE BY THE DIRECTOR GENERAL OF THE FRANCINE: WELCOME BACK TO DAVOS.
A RECENT RECORD BY THE U.N.’S NUKE WATCHDOG SAYS IRAN IS
PRODUCING WEAPONS GRADE. THANK YOU SO MUCH FOR JOININGS. YOU REPORTED ACTUALLY AT
TOAMPED DECEMBER THAT IRAN TRIPLED THE RATE AT WHICH IT IS
ACCUMULATING URANIUM CLOSE TO WEAPONS GRADES. HOW MUCH MATERIAL DO YOU THINK THEY HAVE
NOW? >> THEY HAVE ENOUGH MATERIAL
FOR SEVERAL NUKE WARHEADS. THIS DOESN’T MEAN THEY HAVE
THEM. LET ME BE CLEAR ABOUT THIS.
THEY HAVE CREATED SO MUCH ENRICHED URANIUM. TWO MONTHS, THREE MONTHS, FIVE
MONTHS THAT THEY WOULD HAVE ENOUGH MATERIAL TO DO THIS AND
NOW IT IS A REALITY. THIS CONTINUES.
THEY ARE SPEEDING UP THE ENRICHMENT BASE. IT IS SOMETHING THEY CAN DO BUT
WE NEED TO VERIFY. FRANCINE: WHAT ARE THEY DOING WITH IT? >> THIS IS ONE OF THE QUESTIONS.
THEY ARE AACCUMULATING IT. THINK THEY SAY IT IS THEIR
RIGHT. THEY SAY IT IS FOR CIVILIAN . FRANCINE:
IS THERE A REAL DANGER THEY ARE PRAYING NUKE SITES TO PUT THEM
ONLINE? >> I WOULD SAY HERE WE HAVE TO
DIVIDE CAREFULLY WHAT OUR ACTIVITIES MAY HAVE FUTURE
IMPLICATIONS FROM THIS PLACE IN REALITY. THEY ENRICH. THEY PRODUCE. THEY FABRICATE CENTRIFUGES.
THEY HAVE UKRAINIAN MINING. ALL OF THE PROPERTIES OF THE
SO-CALLED NUKE FUEL CYCLE ARE TAKING PLACE.
THERE ARE MANY AREAS THEY HAVE NOT CLARIFIED.
IMPORTANT THINGS THAT WE HAVE DISCOVERED IN THE PAST WHICH
WERE NOT ENTIRELY CLEAR FOR US. WHY WERE WE FINDING TRACES OF
UKRAINE YUM URANIUM IN PLACES THAT HAD
NEVER HOSTED NUKE ACTIVITIES. WE’RE ASKING IF THERE IS
MATERIAL, WHERE IT IS. IF THERE IS EQUIPMENT, WHERE IS
THIS EQUIPMENT? SO IT IS A VERY FRUSTRATING
CYCLE OF ASKING QUESTIONS AND NOT GETTING THE NECESSARY
CLARIFICATIONS AND ANSWERS. VERY SIMPLE. FRANCINE:
YOU DON’T UNDERSTAND THE NATURE OF SOME OF THESE SITES? >> UNTIL WE CLARIFY, WE DON’T
UNDERSTAND WHY THEY DON’T PROVIDE THE NECESSARY
TRANSPARENCY. I WAS THERE AND SAW THE
PRESIDENT LAST MARCH AND THE FOREIGN MINISTER AND WE HAD
SOME UNDERSTANDINGS BUT UNFORTUNATELY OVER THE COURSE OF A YEAR, THIS COMMITMENT
NEVER REALLY FULLY REALIZED. HERE WE ARE. FRANCINE:
YOU WERE ALSO IN SAUDI ARABIA LAST YEAR.
IT HAS TAKEN A LOT OF TIME FOR SAUDI ARABIA TO IMPLEMENT SOME
OF THE NUKE SAFEGUARDS IN ORDER TO GENERATE ATOMIC POWER.
WHY SITZ TAKING SO LONG? >> THEY DON’T HAVE AT THIS
POINT IN TIME THE KIND OF ACTIVITIES THAT REQUIRE A MAJOR
COMPREHENSIVE SYSTEM. THEY HAVE MINOR ACTIVITIES.
THEY HAVE COMMISSIONED POWER RESEARCH FROM ARGENTINA.
THEY HAVEN’T RECEIVED IT YET. THIS IS A SMALL TRAINING
FACILITY BUT THEY DO HAVE PLANS. THEY HAVE THE IDEA WHICH IS
PERFECTLY FINE WITH US TO HAVE A BIG NUKE ENERGY PROGRAM. THIS WILL REQUIRE AN ADAPTATION
OF THE INSPECTION SYSTEM. THEY ARE GOING TO HAVE
UNDERSTAND THE AND TONS OF URANIUM. IT HAS TO BE EXPECTED.
IN DECEMBER, I WAS TALKING TO THE MINISTER OF ENERGY, THE
FOREIGN MINISTER WHOM I MET HERE IN DAVOS. HE IS HERE.
FRANCINE: WHAT IS GOING ON IN UKRAINE?
THERE WERE QUESTIONS FOR EXAMPLE OF RUSSIAN NUKE PLANTS
IN BELARUS AND WHETHER THEY WERE SAFE. >> A NUMBER OF THINGS THERE. MOST IMPORTANT IS THE BIGGEST
LARGEST NUKE POWER PLANT. FRANCINE: IN UKRAINE. >> IN OCCUPIED TERRITORY.
RUSSIAN CONTROLLED. THE ISSUE HERE IS THAT THIS
PLANT IS AT AT THE FRONT LINE OF THE WAR.
IT IS NOT SOMEWHERE IN THE PROVINCE.
IT IS AT THE FRONT LINE. IT IS AN ACTIVE CONFLICT ZONE.
THERE HAVE BEEN ATTACKS IN THE PAST. THIS IS WHY I DEPLOYED --
I HAVE BEEN THERE MYSELF. I WILL BE RETURNING THERE VERY
SOON. WE ARE TRYING TO STABILIZE THE
SITUATION THERE TO AVOID A NUKE ACCIDENT WITH MAJOR
CONSEQUENCES. THIS IS A MAJOR THEME.
WE HAVE ALSO DEPLOYED TEAMS AT ALL OTHER NUKE POWER PLANTS IN
UKRAINE AND THEY ARE CHECKING THAT NOTHING BAD HAPPENS THERE.
FRANCINE: THANK YOU SO MUCH FOR JOINING
US. DIRECTOR OF THE INTERNATIONAL
ATOMIC AGENCY. FRANCINE:
FRESH TENSIONS IN THE MIDDLE EAST AS PAKISTAN CARRIES ON
STRIKES IN RETALIATION FOR SIMILAR ATTACKS FROM TEHRAN
YESTERDAY. PAKISTAN'S PRIME MINISTER CUT
SHORT HIS TIME IN DAVOS. THE IRAN BACKED GROUP CONTINUES
TO DISRUPT GLOBAL SHIPPING AROUND THE RED SEA. STRONG U.S. RETAIL SALES -- TO A DOVISH FED
IN MARCH. WELCOME BACK TO OUR SPECIAL
COVERAGE FROM DAVOS. INVESTORS BANKING ON THE COMING
YEAR TO SEE IN THE EASING OF MONETARY POLICY IS INFLATION
MOVES CLOSER TO TARGET. FOR THE WORLD'S INVESTMENT
BANKS THE HOPE WILL BE CHEAPER MONEY REVIVES DEALMAKING AFTER
A DISMAL 2023. TO DISCUSS THIS AND MORE
WE ARE JOINED BY RICHARD GNODDE. THANK YOU FOR MAKING US SMARTER
ON HOW YOU SEE THE WORLD AND THE DEALS WE COULD SEE IN A
FUTURE. THERE IS A MISMATCH IN M&A THAT
BUYERS WERE EXPECTING TOO MUCH AND BUYERS DID NOT WANT TO
SPEND AS MUCH AS SELLERS WANT TO PAY FOR. RICHARD:
WE ARE GETTING CLOSER. THE VIEW WAS PRETTY PESSIMISTIC.
THIS TIME LAST YEAR THE EXPECTATION WAS A RECESSION IN
THE U.S.. THE MARKETS PERFORMED MUCH
BETTER THAN THAT AND WE KNOW THE U.S.
MARKET WAS UP 23, 20 4%. WE ALSO CARRIED INTO LAST YEAR
ASSETS PURCHASED OF THE TIME PRICES.
THERE WAS A DIFFERENCE IN THE OFFER.
WE MADE A LOT OF PROGRESS. I WOULD NOT EXPECT THIS YEAR TO
BE BACK FULL THROTTLE. FRANCINE: HOW CONCERNED ARE YOU ABOUT
2024. WE ARE TALKING ABOUT CONFLICTS,
AND GEOPOLITICS. THE NEWS WAS ESCALATED TENSIONS.
HOW DOES THAT PLAY THROUGH MARKETS. RICHARD:
WE FEEL BETTER ABOUT THE ECONOMICS.
WE HAVE MORE OF A TAILWIND THIS YEAR THAN A HEADWIND WHICH WAS
LAST YEAR STORY. RATES ARE COMING DOWN WITH A
DEBATE OF HOW QUICKLY THE CENTRAL BANKS AROUND THE WORLD
ARE TRYING TO SLOW THE EXPECTATIONS DOWN A LITTLE BIT
IN TERMS OF RATE CUTS AND SPEED. THAT'S GOING TO BE DEPENDING ON
WHAT THEY ARE CHASING. THE EUROPEAN ECONOMY HAS TO GET
BACK TO GROWTH. NO EXPECTATION REALLY OF A
RECESSION IN THE U.S.. SO ECONOMICALLY WE FEEL A MUCH
BETTER PLACE. THIS IS NOT NEW, IT'S BEEN
GOING ON FOR THE LAST COUPLE OF YEARS. THE ISSUE IS WE STARTED WITH
RUSSIA UKRAINE AND THEN THE TRAGEDY OF OCTOBER 7, WE HAVE
WHAT'S GOING ON THIS WEEK IN TERMS OF EXPANDING INTO THE
STRIKES, MORE AND MORE COUNTRIES ARE GETTING INVOLVED
AND THAT IS OF COURSE A REAL CONCERN.
I'D LIKE TO SEE THE LIST OF ISSUES SHRINKING AS OPPOSED TO
GROW. FRANCINE: I KNOW THIS IS A HOT YEAR FOR
BONUSES, WHAT CAN YOU TELL THEM? RICHARD:
WE PAY-FOR-PERFORMANCE AND WHAT'S REALLY IMPORTANT TO US
IS WE HAVE THE BEST TEAM ON THE FIELD.
WE FEEL TERRIFIC ABOUT THE TEAM. THE STRATEGIC FOCUS IS AS GOOD
AS IT'S EVER BEEN. AT THE END OF THE DAY THE
SUCCESS OF THE STRATEGY DEPENDS ON THE QUALITY OF OUR PEOPLE.
SO WE'RE VERY FOCUSED ON KEEPING THE BEST PEOPLE AT THE
FIRM, THE GLOBAL FOOTPRINT WE HAVE IN THE LAST FOUR DECADES
PROBABLY. A KEY DIFFERENTIATOR FOR US.
THEY LIKE THE FOCUS OF THE FIRM. THEY LIKE THE SCALE WE HAVE
LEADERSHIP POSITIONS. WE WILL PLAY THE BALL AT OUR
FEET. THIS CAN BE UNPREDICTABLE MOMENTS THIS YEAR.
THERE WILL BE ISSUES THAT COME ACROSS BUT WE HAVE NOT FORESEEN.
THE BEST PEOPLE AND THE BEST TEAM WORKING TOGETHER. FRANCINE:
THERE WAS A PART WHERE GOLDMAN WAS ALMOST IN THE EYE OF THE
STORM AND WE DON'T HEAR ABOUT THAT ANYMORE. RICHARD:
STRATEGIC CLARITY IS A FANTASTIC THING.
WE CLOSE THE CHAPTER ON 23 AND MOVE INTO 24.
IT'S ALL ABOUT CONTINUING TO BUILD SCALE IN THESE BUSINESSES.
FRANCINE: WHERE DO YOU SEE THE BEST
GROWTH COMING FROM? RICHARD: I WAS IN ASIA LAST WEEK.
IN JAPAN THERE'S A LOT OF ENTHUSIASM I THINK WE SPENT A
LOT MORE TIME TALKING ABOUT JAPAN THROUGH THIS YEAR.
THEY WILL HAVE TO GO THROUGH A CHANGE IN MONETARY POLICY.
WHEN YOU GO THERE YOU ARE JUST REMINDED OF THE SCALE OF
MANUFACTURING CAPABILITY, OF THAT ECONOMY.
IT'S GOING TO BE IMPORTANT TO FOCUS ON.
EVERYONE WE TALKED TO IS DOING MORE. THAT WILL BE INTERESTING. IN THE BIG TWO DEVELOPED
MARKETS, THE U.S. AND EUROPE, WE EXPECT IT TO
PICK UP. WE UNDERSTAND IT MAY NOT BE
BACK TO PEAK LEVELS BUT IT WILL BE BETTER THAN IT WAS WE EXPECT
IN 24 THEN 23. CAPITAL MARKETS CANNOT STAY
SHUT FOREVER. THEY WILL CONTINUE TO REBOUND.
THAT'S OUR BELIEF. FRANCINE: ARE THERE POCKETS WERE YOU SEE
HIRING IN CERTAIN SPECIFIC BUSINESSES OR REGIONS? RICHARD:
WE HIRE EVERY SINGLE YEAR. FROM CAMPUS, WE DO THAT YEAR-IN
AND YEAR-OUT. IT'S IMPORTANT TO FEED THE
MACHINE AND BUILD THE NEXT GENERATION.
AND THEN OF COURSE WE LOVE TO BRING PEOPLE INTO DRIVE CERTAIN
PARTS. ASK WEALTH MANAGEMENT IS A HUGE
FOCUS FOR US. SO THAT WILL RECEIVE
SIGNIFICANT ATTENTION. FRANCINE: YOU WON'T BELIEVE THE NUMBER OF
BANKERS NOT HAPPY ABOUT REGULATION.
IS THIS TOP OF MIND AS WELL. RICHARD:
WE ARE IN THE MIDDLE OF THE PROCESS AT THIS WEEK.
IT'S BEEN INTERESTING TO ME TO SEE THE BROAD RANGE OF INPUT
BECAUSE IT'S NOT JUST THE BANKS TALKING ABOUT THIS IT'S THE END
USERS TALKING ABOUT THIS. IT'S THE REAL ECONOMY.
THE AIRLINES, USERS OF THE PRODUCTS.
AND IF COSTS GO UP THERE THAT IMPACTS THE REAL ECONOMY IT'S
IMPORTANT THE OUTPOURING HAS BEEN STRIKING. FRANCINE: COULD IT LEAD TO SOME KIND OF
FINANCIAL EVENT OR MAYBE NOT SYSTEMIC, BUT IS THERE WORRY
THE MARKET CHANGES AND SEIZES PARTS OF IT? RICHARD:
THE DIALOGUE IS OPEN. IF YOU LOOK AT SOME OF THE
CONFLICT FROM THE LEADERSHIP OF THE FED AND OBVIOUSLY THERE IS
STILL WORK TO BE DONE AND A CRISIS TO BE GONE THROUGH.
WE HAVE SOME SMART PEOPLE IN THIS AND IN THE END PEOPLE
TYPICALLY GET TO A SMART PLACE. RICHARD:
THANK YOU SO MUCH RICHARD. COMING UP, WILL THIS YEAR SEE A
REVIVAL IN M&A? WE WILL SPEAK PRIVATE EQUITY
WITH THE CO-FOUNDER OF THE CARLYLE GROUP.
THIS IS BLOOMBERG. ♪ FRANCINE: WELCOME BACK EVERYONE.
LAST YEAR WAS THE WORST FOR MERGERS AND ACQUISITIONS IN A
DECADE. DEALMAKERS SAY 2024 IS LOOKING
MORE POSITIVE. I'M DELIGHTED TO BE JOINED BY
DAVID RUBENSTEIN. THANK YOU FOR JOINING US.
I DON'T KNOW IF THE LAST YEAR WAS SO BAD BECAUSE THERE WAS A
MISMATCH BETWEEN THE PRICE PEOPLE WANT TO PAY AND WHAT
THEY WANTED TO SELL. DOES THAT GET ADJUSTED? DAVID:
INTEREST RATES WERE HIGH AND SELLERS WERE AFRAID IF THEY
SOLD TO SOMEBODY THEY PROBABLY WEREN'T GOING TO GET THE PRICE
BECAUSE BUYERS DID NOT WANT TO PAY THE PRICE BECAUSE INTEREST
RATES WERE HIGH. BUYERS WERE AFRAID THEY WOULD
BUY INTO A RECESSION. NOW THE RECESSION FEARS ARE
GONE, INTEREST RATES ARE COMING DOWN CERTAINLY VERY SOON.
SO I THINK YOU SEE MORE M&A ACTIVITY, PRIVATE ACTIVITY.
FRANCINE: ARE YOU EXPECTING SIX FED CUTS?
DAVID: TRYING TO PREDICT WHAT THE FED
WILL DO IS A FOOLS ERRAND. THE FED WILL DO WHAT IT DOES
BASED ON THE DATA. THE MARKETS WILL BE SHOCKED IF
THE FED DID NOT CUT BEFORE THE ELECTION.
THE FED WILL HAVE POLITICAL PROBLEMS IF THEY SAY WE WILL DO
SOME CUTS AROUND THE TIME OF THE PRESIDENTIAL ELECTION. THEY WILL GET THEIR CUTS OUT OF
THE WAY. THEY WILL MEET IN JANUARY AND I
SUSPECT THEY WILL TALK ABOUT WHAT THEY WILL DO IN THE MARCH
FOMC MEETING. I WOULD BE SURPRISED IF THERE
WAS SOME CUTS BY MARCH. FRANCINE:
WILL PEOPLE NOT WAIT FOR THE U.S. ELECTION?
THAT COULD CHANGE RELATIONS, RULES FOR POLICY. DAVID:
THERE IS NO DOUBT THE CURRENT ANTITRUST ENFORCEMENT IS NOT
THAT FAVORABLE TO A LOT OF BIGGER ACQUISITIONS. THEY KIND OF STAND ALONG
ACQUISITIONS. SO IT'S NOT BEEN A BIG PROBLEM
FOR THE INTEREST RATES. OUT OF CONCERN THERE MIGHT BE A
RECESSION COMING. FRANCINE: WE'VE SEEN SOME BIG DEALS AND
PRIVATE EQUITY. WE HAVE GENERAL ATLANTIC.
ARE WE GOING TO SEE A LOT MORE OF THIS ALREADY BIG
SIZABLE -- FRANCINE: IT'S A VERY GOOD DEAL -- DAVID:
IT'S A VERY GOOD DEAL FOR BLACKROCK. THE HIGH PRICE I THINK WILL
WORK OUT WELL FOR EVERYBODY. WE CAN SEE MORE
CONSOLIDATION. A RELATIVELY PREDICTABLE RATE
OF RETURN. I DO THINK YOU WILL SEE MORE
CONSOLIDATION AND SOME OF THE BIGGER FIRMS WILL GET BIGGER.
FRANCINE: INFRASTRUCTURE IS REALLY WHAT
WE NEED IF WE ARE GOING TO BUILD THIS NEW FUTURE OR
PRIVATE EQUITY IN GENERAL? DAVID:
INFRASTRUCTURE IS A CLASS WHERE A LOT OF BIG PRIVATE EQUITY FIRMS DON'T HAVE INFRASTRUCTURE
BUSINESS, BUT THAT IS VERY PREDICTABLE BUSINESS, IT'S A
VERY PREDICTABLE RATE OF RETURN BUSINESS AND ONE OF THE ONES A
LOT OF INVESTORS INCREASINGLY THINK IS A GOOD AREA TO INVEST
IN. THE BIDEN ADMINISTRATION HAS GOTTEN A VERY BIG
INFRASTRUCTURE BILL THROUGH CONGRESS.
THAT'S TRUE AROUND THE WORLD. FRANCINE:
DO YOU WORRY ABOUT PRIVATE EQUITY MAY BE SOME OF THE
SPACES THAT ARE SMALLER WHERE THERE ARE DEBTS IF INTEREST
RATES DON'T GO DOWN QUICKLY OR SOME OF THE SMALLER COMPANIES
IN TROUBLE? DAVID: THERE'S ALWAYS A WAY YOU CAN
GET ATTENTION BY SAYING THINGS ARE FALLING APART.
RIGHT NOW DESPITE THE FACT INTEREST RATES ARE SO HIGH AND
THE ECONOMY WAS NOT WONDERFUL FOR A WHILE POST-COVID, I THINK
NOW WE'VE SEEN RELATIVELY FEW BANKRUPTCIES AND REALLY CUTE --
RELATIVELY FEW DISTRESSED DEBT OPTIONS.
IN COMMERCIAL REAL ESTATE THEY REALLY HAVEN'T SEEN THE WORST
OF THE DEBT PROBLEM. I THINK IT'S DIFFERENT IN OTHER
PARTS OF PRIVATE EQUITY? FRANCINE:
IS IT A DELAYED EFFECT OR MORE RESILIENT THAN WE THOUGHT IT
WOULD BE? DAVID: THE DATA IN REAL ESTATE AND
CORPORATE ACQUISITIONS IS ON COVENANT LIGHT.
SO YOU DEFAULT IN THE INTEREST YOU DON'T HAVE THE PROBLEMS OF
THE BANKS TAKING OVER THE DEBT SO IT'S EASIER TO STAY ALIVE
WHEN THINGS ARE WORKING WELL VENTED WAS YEARS AGO. FRANCINE:
WHERE DO YOU WANT TO MAKE DEALS. DAVID:
THERE ARE A NUMBER OF AREAS I THINK WILL BE ATTRACTIVE IN THE
FUTURE. ONE OF THE ONES PEOPLE ARE
TALKING ABOUT IS OBVIOUSLY ARTIFICIAL INTELLIGENCE.
ANOTHER AREA THAT HASN'T GOTTEN AS MUCH ATTENTION IS SOMETHING
CALLED QUANTUM COMPUTING. IT WILL CHANGE COMPUTING
DRAMATICALLY BY'S PINNING UP THE WEIGHT COMPUTERS MOVE IN
MAKING DECISIONS. THAT'S AN AREA WE WILL SEE A
LOT OF ACTIVITY. I THINK CRISPER TECHNOLOGY WILL
BE AN AREA THAT HAS A LOT OF ACTIVITY IN THE FUTURE.
COMPUTATIONAL BIOLOGY. THERE'S BEEN A LOT OF AREAS I
THINK YOU ARE SEEING A LOT OF GROWTH. FRANCINE:
THAT MEANS MORE ENERGY. DO YOU INVEST SOME OF THE
COMPANIES OF TOMORROW WHEN IT COMES TO ENERGY OR IS IT TOO
CROWDED. DAVID: IT IS CROWDED IN SOME RESPECTS.
IT IS NOT CROWDED IN THE TRADITIONAL OIL AND GAS SECTOR.
LARGE INSTITUTIONAL INVESTORS ARE WORRIED ABOUT INVESTING IN
OIL AND GAS BECAUSE THERE'S STILL SOMETHING WE NEED.
EVERYBODY WANTS CLEAN ENERGY AND TO GET RID OF CARBON
EMISSIONS BUT I THINK FOR THE FORESEEABLE FUTURE IT'S NOT
LIKELY THAT WE WILL GO TO CARBON NEUTRALITY COMPLETELY.
FRANCINE: HOW DO YOU LOOK AT AI. IT'S GOING TO STOP US -- WE
DON'T HAVE TO LEARN POWERPOINT ANYMORE BUT WHERE DO YOU WANT
TO BE INVESTED? DAVID: AI THE ISSUE WILL BE WILL YOU
BE BETTER OFF WITH A SMALL START OF OR INVESTING IN THE
MICROSOFT'S. NO ONE REALLY KNOWS YET.
I THINK THERE'S OPPORTUNITIES IN BOTH PLACES.
EVERY COMPANY I SEE IN THE VENTURE SPACE SAYS IT'S AN AI
COMPANY. >> THIS IS NOT GOLDMAN
SACHS.COM ERA OF 2000. DAVID:
I WOULD SAY YOU ONLY KNOW YOU ARE IN A BUBBLE WHEN IT BURSTS.
RIGHT NOW IT DOES NOT LOOK LIKE A BUBBLE.
PEOPLE PAY CRAZY PRICES FOR START UP COMPANIES WITH NO
REVENUE, NO PROSPECT IN THE NEXT FOUR OR FIVE YEARS.
I THINK YOU ARE SEEING HIGH VALUATIONS AND SOME ARTIFICIAL
INTELLIGENCE COMPANIES. EVERYBODY IS AFRAID OF MISSING
OUT. THERE'S A HUMAN TENDENCY OF BEING AFRAID OF MISSING OUT. PEOPLE ARE PUTTING A LOT OF
MONEY IN IT AT RELATIVELY HIGH PRICES. FRANCINE: IS THAT ONE OF YOUR FINANCIAL
ADVICE? DAVID: YOU ARE BETTER OFF TO INVEST
WHERE OTHER PEOPLE AREN'T RUSHING TO GO INTO IT.
I DON'T WANT PEOPLE TO LOOK AT THE THINGS I'M LOOKING AT
BECAUSE THEN THE PRICE WILL GO UP BUT CLEARLY THERE'S A LOT OF
INTEREST IN AI. A YEAR AGO WHEN WE WERE HERE, AI HAS BEEN DOMINANT IN DAVOS
BECAUSE EVERYONE IS WORRIED WHAT AI WILL DO AND THEY WANT
TO MAKE SURE THE COMPANIES DEAL WITH AI WON'T BE HURT BY AI.
FRANCINE: I WAS JUST SPEAKING TO SOMEONE
SAYING WE HAVE PERSONAL ASSISTANCE FOR WORK STUFF.
THAT'S WHAT 10 OR 20 YEARS AWAY OR COULD IT ALSO JUST NEVER
COME TRUE? DAVID: IT'S HARD TO PREDICT 10 OR 20
YEARS DOWN THE ROAD. WHO WOULD'VE PREDICTED THE
INTERNET WOULD CHANGE THE WORLD AS WE KNOW IT.
IN 1999, 2000 WE THOUGHT THE INTERNET WAS A BIG BUBBLE.
RIGHT NOW THE INTERNET HAS CHANGED THE WAY WE ARE LIVING
FOREVER. I SUSPECT AI WILL HAVE A BIG
IMPACT. >> HOW DO YOU MAKE THAT
INVESTMENT CHOICE AGAIN? DAVID:
I DON'T WANT TO GIVE UP MY SECRETS BUT GENERALLY YOU WANT
SOMETHING FROM PEOPLE WHO KNOW WHAT THEY ARE DOING AND HAVE A
DESIRE TO BUILD A COMPANY. PEOPLE WHO WORK AROUND THE
CLOCK AND HAVE SOME TECHNOLOGY KNOWLEDGE. LOOKING AT THE GREAT ENTREPRENEURS OF THE LAST 20
YEARS, WHAT DID THEY HAVE IN COMMON?
THEY BELIEVED WOULDN'T -- AND WHAT THEY WERE DOING AND HAD A
PASSION THAT YOU CAN RECOGNIZE EASILY. THE GREAT ENTREPRENEURS WILL BE
COMING ALONG IN THE NEXT GENERATION AS WELL.
IN PROBABLY AI. FRANCINE: THANK YOU SO MUCH FOR JOINING
US. COMING UP WE WILL HAVE PLENTY
MORE FROM DAVOS. WE HAVE THE REST OF TODAY AND
THEN TOMORROW. MUCH MORE, THIS IS BLOOMBERG. ♪ FRANCINE:
TENSIONS ESCALATING IN THE MIDDLE EAST. THIS TIME BETWEEN
IRAN AND ITS NUCLEAR ARMED NEIGHBOR PAKISTAN.
PAKISTAN'S MILITARY CARRIED OUT STRIKES AGAINST MILITANT
HIDEOUTS INSIDE IRAN IN RESPONSE TO AN ATTACK IN
PAKISTANI TERRITORY. PAKISTAN'S INTERIM PRIME
MINISTER IS RETURNING HOME TO DEAL WITH THE UNFOLDING CRISIS.
THE U.S. LAUNCHED ANOTHER ROUND OF STRIKES ON YEMEN'S HOUTGHIS
OVERNIGHT. AN INTERVIEW WITH BLOOMBERG
HERE IN DAVOS, OF THE U.K. FOREIGN SECRETARY SUGGESTED
STEPPING UP SANCTIONS AGAINST THE IRANIAN REGIME IF THE RED
SEA ATTACKS CONTINUE. >> WE HAVE DELIVERED TOUGH
MESSAGES TO IRAN. I HAD A DISCUSSION WITH THE
FOREIGN MINISTER LAST WEEK. THERE'S A NUMBER OF SANCTIONS
AND OTHER MEASURES ALREADY IN PLACE BUT I THINK IT'S ACTUALLY
VITAL THAT WE SEND A CLEAR MESSAGE TO IRAN THAT ITS
BEHAVIOR AND SUPPORTING THESE PROXIES, WHETHER IT IS HAMAS,
HEZBOLLAH OR THE ARMED GROUPS IN SYRIA, IN THIS BEHAVIOR IS
UNACCEPTABLE. FRANCINE: THE OPPOSITION LABOR PARTY SAYS
IT SUPPORTS THE U.K. DECISION TO STRIKE BACK AGAINST
TARGETS TO STOP FURTHER ATTACKS IN THE RED SEA.
I SPOKE TO RACHEL REEVES YESTERDAY. >> THAT WAS TO PROTECT MARITIME
ROUTES AND TO PROTECT THE SHIPS GOING
THROUGH IT AND SEND A CLEAR SIGNAL THAT WE WILL NOT STAND
FOR THIS DISRUPTION TO TRADE FLOWS AND THESE ATTACKS ON
MARITIME VESSELS. I THINK THAT WAS IMPORTANT THAT
THAT HAPPENED AND HAD THE FULL BACKING OF THE OPPOSITION AND
MANY COUNTRIES IN THE WORLD. >> I ALSO ASKED ABOUT LABOR'S
PLANS FOR CORPORATE TAXATION IN THE U.K.. >> THE CORPORATION TAX IS
INCREDIBLY IMPORTANT THAT BRITISH INDUSTRY IS COMMITTED
HERE. WE WILL BE NOT JUST OPEN FOR
BUSINESS BUT ACTIVELY ENCOURAGING INVESTMENT, WEALTH
CREATION IN BRITAIN AND WE ARE THE PARTY OF WEALTH CREATION.
FRANCINE: DOES THAT MEAN YOU COULD RULE
OUT A CORPORATION TAX? >> I'M NOT GOING TO SET LABOR'S
TAX POLICY ON A TELEVISION PROGRAM BUT WE WANT TO
GIVE CLARITY AND CERTAINTY THAT THEY CAN MAKE THOSE LONG-TERM
INVESTMENTS. WE WOULD INVEST ALONGSIDE
BUSINESS THAT WE SEE IN OUR ECONOMY TODAY. FRANCINE: -- >> WE WANT A COMPETITIVE
RATE OF TAX AND CERTAINTY FOR BUSINESS. FRANCINE:
THE UNICREDIT CHIEF EXECUTIVE SAYS HE IS CERTAIN TO HIT HIS
PROFITABILITY GOALS DESPITE HEIGHTENED GEOPOLITICAL
UNCERTAINTY. HERE'S A LOOK BACK FROM OUR
CONVERSATION EARLIER. >> WE WILL GIVE AN UPDATE WITH
OUR YEAR END RESULTS, BUT SUFFICE TO SAY OUR STRATEGY AND
COMMITMENT HAS NOT CHANGED. AT THE MOMENT WE ARE LOOKING AT
WE HAVE PROBABLY REDUCED BY 70% ARE EXPOSURE. IT HAS COST US LESS THEN 10 OR
15% OF THAT. WE HAVE DONE THAT IN AN ORDERLY
FASHION AND WE CONTINUE TO DO THAT. FRANCINE: THAT WAS THE UNICREDIT CHIEF
EXECUTIVE SPEAKING TO ME EARLIER TODAY HERE IN DAVOS AT
THE WORLD ECONOMIC FORUM. LATER TODAY WE WILL SPEAK TO
THE BLACKSTONE CHAIRMAN CHIEF EXECUTIVE, OF THE GERMAN
FINANCE MINISTER AND INTERVIEWS WITH THE CHIEF EXECUTIVES OF
MORGAN STANLEY AND BANK OF AMERICA.
THAT'S COMING UP SHORTLY. UP NEXT, BLOOMBERG BRIEF WITH
DANI BURGER IN LONDON AND MANUS CRANNY IN NEW YORK.
THIS IS BLOOMBERG. ♪
