leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ is thee: iberdrola number one player. liberalized galan the spanish telecoms sector. in 2001,ing the reins he has made the transition into renewables and expanded the company's global reach and increasing the company size by four times. today on "leaders with lacqua," we meet jose ignacio galan, iberdrola chairman and chief

executive. thank you for joining us. do you remember that first day at iberdrola all those years ago? jose: of course. fight againstdous the company, i was ready to license mobile. coming from the sector was already open to competition to a sector that was traditional, so i remember very well the state. to bek i had the chance chairman at the time. all support to change the company completely. francine: what was your first thought, this is an industry i need to liberalize? is this an industry that needs to change dramatically? jose: the first decision i had to took his we have to move to another premises.

we have to go from this traditional building to some building that will represent more what i would like to implement in the company. francine: which is what? jose: it is a traditional building in the center of town and i moved the company to more closedaces, not so many offices, and more according with the idea of the new order i would like to implement. francine: how much time did you give yourself to make changes? jose: well, i think i start -- francine: day one, day to bring? jose: they won because they would like to get to me 50 people, an office far away, and my office is, but sorry, that is my office. this is another one. i would like this for a meeting room. no, that is the office for other people. no, that is my office. i think 24 hours later. francine: at the time you had

vision of a big company? jose: this company was a great company, 100 years old with great assets, but very focused. i felt we had to open the company to different work. we have to move from the traditional businesses to a different business. and we wouldtrust have to make this, transforming not in onere, century energy has been generated. francine: you were spearheading a movement. a lot of people were pushing back against that. what was your most difficult day in the office? jose: i cannot make this. ie most difficult, i think approved my first business plan was an investment of 60 billion

euros. that is -- francine: a lot. jose: it is 10 times more than what we would normally invest. the second thing is to change the color of the company. traditional color was blue. the 16 billion were approved in half an hour, and change from blue to green took three board meetings. the last one, i said that is going to be green or i am not jose ignacio galan. they, the whole building and green. inside, green, green, green. all right, fine, green. that is another time then i come to green and it is time for green and said whatever, but green. francine: was that bold, yes. september 20, 2

thousand one. i joined the company in may. that was in september. francine: how do you describe yourself as a leader? ife: i think the point is you trust and believe something. i believe all my life i do the things because i'm convinced that they had to move in this direction. that is thecommit direction to follow. you have to make it be executed. to to people and make a follow-up, and that is the history of my life. francine: you have a team to move forward. you also have shareholders. what is more difficult, teen, employees, the board, shareholders? jose: i have been lucky in my life, very lucky. splendid --y had someone teach to me a lot. i'm talking about an engineer

that showed to me a lot about what is the real life. already with someone that has been absolutely great. i was telling you before a lot of negotiation between trade unions, always reach an agreement that has been very, very understanding both positions to reach an agreement and shareholders which also trust. they already fully support it. francine: what makes you a success? have you ever felt like an outsider? jose: i think i am lucky because i have an education and started working in a company in which is a chairman, which teach to me a lot, and i have been lucky because the life giving me the opportunity to transform things. the think when i went to

good at thes not sector. i was transforming it. peoplere many, many which are very capable. they don't have opportunities. i had this opportunity. francine: some people may say this is too difficult. i don't want to fight over that shipyard, to change the color because i don't care enough. how do you get your energy? francine: i am telling you -- jose: i am telling you that if i believe and trust in something, it has to be done. i cannot say i am convinced that has to be done and that has to do. i have to be done for myself. i have to take the risk. i have to put my enthusiasm, all my knowledge to make that one in the framework. that is another direction which , capability,alues

honesty, so these sort of things it built already my personality. francine: up next on "leaders with lacqua,, the green resolution -- "leaders with lacqua," the green revolution and how iberdrola is placing itself in that. more next. ♪ ♪

aancine: iberdrola has been heavy investor in wind farms since the start of the renewable boom. it owns hydroelectric, fossil fuel, and nuclear powered generation facilities from brazil to scotland. as the market continues to adopt cleaner injury, how has managed to position itself to take

advantage of the green revolution. isirman and ceo of iberdrola still with us. we were talking about your leadership style and from day one you believed in renewables. how will your industry change in the next 10 years? francine: the world of energy is changing. in the next 25 years, it will increase 60% worldwide, so the economy will be more and more electrified. we would like to achieve the target. is to useolution everyone sources which are not already contaminated. the electricity today, we have the means for producing without burning fossil fuels. the electricity has the means for making ready a network much more efficient. the electricity means for the

storage, energy, to provide to the customer when it is needed, and that is how it is going to change. it is huge investment in the next 25 years. trillions,lking in $25 trillion. francine: are you worried about under investment or over investment? jose: look, we need 60% more energy than produced today. we put the money or the system will stop. i think the money will flow. already frameworks, we make that attractive. and that is what we are seeing in great many countries, especially countries which are doing all that is necessary to attract capital to move in the direction. in other countries, they are doing refurbishing and expanding the grid. so i think the world requires this. we are the company in the sector. we are ready and willing to do

what is necessary for that to happen. francine: i hope to speak to before, but in five years, how much revenue will come from renewables? jose: yesterday we presented our teaching plan. tois investment for now which32 billion euros, so i think is approximately 50% will be dedicated to networks. renewables, we need the grid to get to houses. so presley 40% is renewables. i think we are already planning to build in the range we are ofund, 30,000 megawatts renewables in our portfolio and reached close to 37,000, 30 9000 camusso 40% of this is going to be addressed to renewables. did you will be addressed to networks.

foran facilitate and use electricity for bringing homes to our customers. francine: is this because the private sector wants it or it is pushed by government? jose: because the demand is there. if the demand is there and what we are requesting is clear, defined frameworks of the government. the government is the best thing is they make clear planning and clear regulation for making that happen. i think that is not made by governments. a long time ago the government's already come into the private investor to do all this investment. but this long-term planning, clear definition, and the framework, the money is not in my pocket. i said another day to an interview to one of your colleagues, our sector has two things, money and talent. the only thing now is talent, the money has to arrive from somewhere else. francine: the money is there. jose: i need for convincing the money flows into my company to

show the framework is clear and defined and stable. framework wethis get talent, which is in the company the last 100 years it was able to deliver. economies are changing fast, the future of transportation, driverless cars. how much would that change her industry and iberdrola? think we are already in five years our total asset in the range of 110 billion euros. in five years, almost 30% more than the last 100 years, or 120 years. it is a tremendous opportunity for a company like ours with expertise which we are the most company in how to manage the grid, networks, electricity, it is a great opportunity. we are trying to use this moment

to put up the service for society and the knowledge we have accumulated across the century. and we have for the time being we have absolute support of investors to give us the money which is necessary for doing so. francine: one of your biggest shareholders is the sovereign wealth fund. are they 1% aligned with your long-term goal question mark is it almost a perfect fit? most i can tell you that are companies which took publicly the commitment with climate change, with things trying to make a better life for the citizens. athink recently we signed -- credit line,

which is the first credit line come never been signed, 5.3 billion euros, signed by 24 banks, with a target of sustainability. that is how the world is changing. francine: and it's not only talk to me because in the past people say we talk about sustainability. this is real. jose: it is real. it is real. we are the largest company in green bonds. are cheaper than the additional ones because they know we are using this money for already promoting green technologies come clean technologies, more efficient networks in the storage, etc. you've explained it very simply, talent, looking for money, money, talent is how you put it. what is the one thing you will focus on the next five years? is there one big challenge that you need question mark -- need? jose: the big challenges to deliver what we were committed

yesterday, to expand our networks worldwide, our grid worldwide, and to expand in brazil and to make already the , to beent which we today ready and production by 2022. francine: do you worry about rivals because a lot of the oil majors are trying to diversify going after your lunch? jose: there is room for everybody. it should be great. then everybody used the resources for making a better world. so i would be delighted. i'm not afraid of competition. competition is fine. i think we are one of the few utilities in europe, probably the only one, always with the foundation. we never had the state or the government behind. we had then already earning our money, competing in some cases with tremendous difficulties, but we already have the state

support, so we are not afraid of competition. so welcome those which is coming to the sector to try to compete companies, which is already trying to be the cleanest of the clean companies worldwide. francine: up next on "leaders with lacqua," building a world-class business in spain, the risks of operating and a country where questions of independence are far from settled. more with jose ignacio galan next. ♪

francine: spain has been one of the biggest beneficiaries of europe's economic recovery. in january 2018, fitch rates the country's credit rating to a negative after buoyant growth. spain is also playing host to a seemingly never-ending crisis, the catalonian independence movement dominated the headlines last year after an illegal referendum. it is still unclear how the state government will result the unrest. stalemates have become the watchword in the region, which makes up a fifth of spain's economy. so what does this mean for iberdrola, one of spain's corporate heavyweights? we are back with jose ignacio galan, chairman and chief executive of iberdrola. how concerned are you about politics in spain affecting

investor sentiment? francine: well, i have to say that spain is already come as in good shape,is growing at over 3% or animal, generating more than 500,000 jobs, gone from being one of the to start, and that is a consequence of several things. already towas making try to defend my country, and i saw opportunities. i went to london, new york, boston, to meet investors and show them that spain is -- because the spanish, we are never warm. we are hot or cold. we have already the ability to recover. francine: what did investors misunderstand at the time about spain? jose: they felt that this crisis

would remain forever, but i will say, no. we have tremendous capability of recovery if we have already as we had already a government which is ready to make already reforms. ,o in the moment that was done the country started moving, so the country from being an economy moving internally to become more than anybody else, fully dependent on the construction of the real estate to be already in service oriented, so a public deficit, to control the deficit, so all the sorts of things, and i think now we have party benefited, and you mentioned the company, the country, is growing, which is stable and predictable, respected, which i think the economy is planning, and that is

the matter, one, the rules are clear, and the government did so then for making that happen. francine: is there anything you can do? you have an international company, but are seen as a spanish conglomerate? so how can you protect yourself from the next political crisis question mark jose: first thing, we are not a must present in catalonia. the second one, i think something which i would like to be positive in all these things. something with this company in crisis is that spain is a clear spain, theso the other day i saw an economist, it is the 17th democracy worldwide, britain is 16th, so we are in the same area, so it is a clear separation of powers. we have already constitution. .t has already been made

we lost the civil war after almost one million people died. together andoin said, let's try to make rules for the spaniards to avoid that sort of thing happen. that has been our framework for 40 years, and now some people which are not respecting the law, and what is happening? the justice, which is independent, is not a politician. it is a justice, controlling the situation, saying you are not respecting the law. we have to be in front of the court for giving a nation. people are leaving the country because they don't like to sit in front of the judges, so that is it. francine: will you ever run for office or become a politician? jose: oh, no, no, no. my life as a politician would have a life of 30 seconds. it is 30 seconds for singles things which are politically not correct. it is clear straightforward.

i like to say to people that things which i trust, to defend those bayous in which i have defended. sometimes i think you have to be politically correct, to shut down your mouth come and start i would like to be clear. francine: diplomacy is changing. people want something fresher come a different. don't know what it means to be fresh. what works.well i have been all my life in the world to i understand with this, the capitalism. responsible of capitalist. i know how to do with the trade union. i know how to deal with investors. i know how to do with my employees. i know how to convince my staff had to move in one direction. i don't know how to move the people to convince how the things like to be done. i am sorry.

i have tremendous respect for politicians. i think very much because they have already a difficult life and they are already sacrificed lives. they have always people not recognizing the sacrifice they are making in some cases. i recognize and try to do my best to recognize the things i am making, but i am already not the type of person. so, i am sorry. i am catholic, but i can never be a priest. francine: jose ignacio galan, thank you for joining us. jose: thank you. ♪

rishaad: malaysia's political shift. and bring it whose tumbling on the news. it is saying that some of his policies appeared to be credit negative. inclusive insight into what is next for the country. haidi: also coming up, and inflation has shot for investors

in central banks. this is bloomberg markets: asia. ♪ rishaad: indonesia under a bit of pressure let's look at what is going on with the jc are. -- jcr. we are expecting a moderation in the first quarter from 655% in the -- 65% year on year. the inflation issue as well. that brings us to the philippine central-bank decision expected. we are not expecting any movement when it comes to the likes of malaysia. but certainlyhe