♪ >> coming up, highlights from the 2018 bloomberg world business form. leaders gather to discuss issues of critical importance. >> the post-brexit britain -- >> there is a lot going on in the world and markets don't care. >> competition is the most important driver for innovation. shared exclusive insight on their global concerns. >> we are working very hard to reposition our economies. the metals tariffs took about

$1 billion profit from us. >> the market is pricing in a little more risk. >> it is all straight ahead on this special edition of bloomberg best. eric: welcome to a special edition of bloomberg best, featuring the best of the bloomberg business forum. -- we interviewed many of them exclusively on the sidelines. by theresat began

may. she related to britain's efforts to forge new relationships after brexit. ♪ challenges,w including the rapid pace and threats of technological change are causing some to question their faith in the institution of global cooperation and what brought us to this point. they look at the growth of artificial intelligence and ask whether their children or grandchildren will have their skills to succeed in this new economy and they look at some of the tensions in global trade today. tos could be really adapted

reflect the modern world. questions -- my answer to all of these questions is yes. be at-brexit britain will global partner that will help lead the international response to those challenges. to our strategy at home, we create one of the most business friendly economies in the world, driving opportunities and spreading benefits of new technologies to every part of my country and internationally, as a global britain, we will champion our vision of the future, a vision based on openness, competition, high-quality and intelligent regulation. we will be on the forefront to address the challenges facing global trade and build a dynamic

and competitive economy that can truly work for everyone. i have always been clear what the united kingdom stands for and what we want to achieve as we leave the european union. our relationship will change with brexit come a but we will still be neighbors and part of the european family of nations and we will continue to champion. that is why i am confident we can reach a deal about our future relationships that are built in spirit. we have put forward a plan for a new relationship with trade at heart. there is no other plan that protects jobs and livelihoods while respecting how people -- in ourhe largest history.

there is much common ground in these objectives. faceow that they would increased board-checks. i urge the eu to engage with our proposals so we can move forward. to be clear, we are not seeking partial membership or trying to undermine it. we are looking to achieve the of all of our interests. the coming weeks will be critical. with the conclusion of the negotiations, the certainty of which to adapt and the guarantee of the future, businesses can look forward to the post-brexit world with confidence. at the same time, looking beyond the eu, we are absolutely committed to delivering

continuity in terms of relationships and we want to with old most dynamic friends and new allies alike. crucially, we also have a plan to deliver an economy that is knowledge rich, highly innovative, highly skilled and high, but with low tax. whatevery clearly, your business investing in a post-brexit, whatever your business, investing in a post-brexit britain will give you the lowest corporation tax in the g20. you will access service industries in london. some of the best universities in the world, strong institutions and a consistent and dependable approach to high standards with

intelligent regulation. pledges made may's headlines around the world and later in the day, bloomberg broke another exclusive brexit story. we sat down with an manual macron, where they discuss negotiations between britain and , where-- emmanuel macron they discussed the negotiations between britain and the eu. secondcould have a referendum. my question is if the british --e to vote to remain >> sure. back?n you would take us are respect the choice, so i

don't want to get into a debate. but i didctful, regret the vote. sure, but i think what we discussionis have a andhe existing referendum next phases by the european union in a single market. eric: coming up, we will go back to the bloomberg global business forum for compelling

conversations. are in this debt fueled bind thatfind -- is laying the seeds for the next crisis. eric: this is bloomberg. ♪

♪ you're watching a special edition of bloomberg best. featured to star-studded panels on the discussion -- the future of finance.

assess my panelists to finance markets in the decades since the financial crisis. impassioned response. >> one thing has been how do we encourage americans to take more risk and there is no doubt the metrics have been successful. we are at an all-time record in the issue of high-yield debt and the lack of confidence, ironically, the 10 year anniversary, we are in this debt upled bind that is pushing valuations and laying the seeds for the next crisis. just to summarize, the crisis was not about lehman brothers,

it was about the collapse of the housing market. millions of americans lost trillions of dollars. it was a national economic catastrophe, but the post-financial crisis. the change has been the weight on what is going to happen in washington? what is going to happen with the european central bank as insuring the fundamentals of business assets? that has changed and not for the better. >> we are nine and a half years into a global market. part, 30or the most years into a bond market. yields have only recently began to back up and they have not backed up a whole lot. future?you see in the what does it look like?

>> people who have invested in equities, you need to do a health check. you do a health check on your own body hopefully at least once a year. every day you are working on it. do thedividuals don't same thing with their financial portfolio. they don't look at it. there equities are probably way outside. they are fixed income portfolio probably has far to much credit risk and duration, and it hasn't gone down, so why touch it? there is no money in cash. in fact, they would charge you if you had it. if you don't have cash for the liquidity and if you don't have that, you won't be able to take it vantage of the opportunity. >> nobody ever says we are about to have a crash tomorrow, so you need to think about portfolio

position before the event happens. now that i have given this gloom and doom part of the speech, we of great growth in the united states. growth by up to areeast 1% or 2%, we creating inflation on the back of this for the first time in nine years. the economy is running hot. the trump policies, whether it certainlyulation, pushing corporate america to go in terms of new equipment, hiring people and so on and so forth. we probably have another 18 to 24 months minimum just on the adrenaline rush on trump's

policies as he has tried to reignite growth of america. advocating -- we don't have a lot of liquidity. , there are times where we are worried about the risk. --which is a to change in consumer behavior. generally, we are leading to growth and disruption which is counterintuitive. we want to go back to the cash flow companies. if multiples are going to come in, i want something that will

grow into that multiple degradation. generally, we are holding back and moving towards a situation where we think there is sector growth that will overcome the inevitable correction whenever that may be. eric: the next session brought together larry fink. they spoke with francine lacqua. about cyberattacks. >> the number one thing i think about what can go wrong, i just look at our own experience. we have grounded all that is going on. it is a big issue and probably doesn't get as much attention. people are really

impact of whathe is occurring. >> do you all have to work together?do you need to share information ? financial the institutions are probably more prepared. i believe there will be organizationsn that have under spent on technology and my first candidates would be state governments and social security numbers, so to me the problem --and organizations that are not in focus. the financial sector has been under such scrutiny that i would say it is one of the sectors

doing as much as it can. i'm not trying to suggest there may not be an attack, but the worry has to be in these other industries. does a cyberattack change the market? and this the reasons is always correlated to positive , common sense has a lot to do with markets. at the moment, it is hard. there is a lot going on in the world and am told markets don't really care. they have been blessed sensitive to some of the things that might create shifts. now thatd argue right despite the big run, equities are cheaper today than they were in january. earnings have been so powerful and we have witnessed a decrease

. the market is, despite the risk.s, pricing in more >> as opposed to a view of the market cheaper, find us an example of something that can change behavior and have an effect on confidence and how people deploy capital. up next, bank of england governor mark carney discusses another global threat. getting businesses to disclose climate information. >> better capital allocation. eric: this is bloomberg. ♪

♪ you're watching bloomberg west. a special recap of the 2018 bloomberg business forum. mark carney was one of the people who attended the event. he spoke with us. the focus of the conversation is leadership on climate related financial disclosures. carney says there is increasing demand for companies to disclose climate related information. there was $25 trillion in assets. the task force comes out. now it is $100 trillion. the globallys of systemic banks and shores

looking for this type of information. companies are starting to disclose. they throw away the stuff that getot useful in been you the better disclosure and real progress. [indiscernible] ,> i think the best companies part of what came out is the survey around the world and you see all of those companies are disclosing at least some aspect in their main report. this is a process you learn by doing. the $100 trillion to

make their capital allocations? i think that keeping we are is you are getting more involved and it is a disclosure that uses strategic resilience, so how resilient are you in changing climate -- >> when it comes to air pollution, water? >> i think what is relative is footprint. . if you have a plan, what is the footprint for that? use. easy to say my energy the thing that is tough is to .ook at the supply chains

first him athe that tells you an awful lot and the more the market is disclosing, you can upstream and downstream because you have the information. >> some people in the trump administers have said that climate change is a hoax and there are rules that protect climate change does that help? >> i would take a neutral view around disclosure. there will be people who are climate change skeptics and others who say this is the absolute top priority and companies need to act. there will be a lot of people in between and the people in between i think will react to, policy around the world. what you need is to have that information.

ist you are seeing today assets looking for that .nformation do are starting to virtuous cycle learning by doing , providing the information and focusing on what is relevant. what is interesting is prime minister abe wrote which mentioned disclosure and they are looking to give a real status report of where the private sector should be. eric: still ahead as we review the 2018 bloomberg global business form, christine on ai's impact on the economy, presidentstax and and prime ministers speak with

us your it >> goal is by the end of the term to be very close to putting an end to extreme poverty. eric: this is bloomberg. ♪

welcome back to this special edition of "bloomberg best." we are focused on the global business forum. liveliest day's panels gathered four past and present heads of state on stage. former u.s. president bill clinton moderated. with others. >> we all live in the world, we want to work together. you have to figure out what

creative cooperation means in terms of how you are going to get the economy going. how you are going to reduce equality. landm the promise of reform without screwing up the investment climate and making people trust you. apartheid was once seen as the most intractable problem in the world. that could not be solved. under the leadership and guidance of nelson mandela we were able to resolve it. spirit, hisow, his values and his principles and his vision is guiding us. we are not going to have land grabs. that is never going to be allowed. if wegoing to make sure embark on land reform, it becomes all-inclusive. it leads to nation building, social cohesion, economic development which will benefit all the people of south africa.

>> it is one thing to say you are for peace and inclusion and another thing to achieve it when there is an unlimited number of money from narco trafficking. c i built my agenda for olombia based on three pillars. land -- law and order. opennted to be a country for business. the third thing, if we have entrepreneurship, the consequence is equality. that means closing the gaps. me gaps.aps, inco i am proud to have a cabinet that is a gallatin 50% men and 50% women. i am proud we are mobilizing investment to technology, agricultural development. my goal is we will be close to

ending extreme poverty. ofwhat is your take in terms where we are in the world today? cap can we get other people like you to be committed to global trade? global development? how is your country dealing with the upheaval caused in europe i the massive influx of refugees, mostly from violence in the middle east? >> i think globalization has been a win-win situation the world. especially for developing countries. we are lifting so many people out of poverty. have the space in between what happens in those countries that were usually part of the global society, people with no income, no education. that is important, to make sure

you have an open economy. trade. that you step forward on globalization. technology will drive this globalization, whatever politicians are going to say because the technology will move that. >> land reform is one of the difficult issues he must address as president of south africa. he went into depth on issues facing his country with francine lacqua. >> investors were concerned about a number of things. are expectingey you to go too fast in reforms, cracking down against corruption? when you part of the turmoil affecting emerging markets? >> investors have been concerned about south africa in terms of our policies on a number of issues. land has been one of those. we are giving a cogent explanation of the process. corruption, we,

are dealing with corruption quite effectively. the mining industry, we are dressing that. telecommunications, we are adjusting that. visa regime, we are addressing that. many of the issues that have are raised by investors those we are addressing. we are addressing them in a proactive and positive way. the beauty is we are including them in the discussion. allre collaborating with role players in south africa. the unions. civil society as well as business. you could not have a better outcome out of the process like that. >> last week in your economic stimulus and recovery plan, you said you would redirect around 50 billion rand. where are you take it from and

putting it in? what ministries? >> we are going to reprioritize our budget. we are looking at where we can reprioritize and we can get is 50 billion. where are we going to put it? we are to put a lot of it in small and medium enterprises. we are going to put a lot of it in agriculture. agricultural production. we are going to promote businesses in the townships and rural areas. we are going to focus on youth and women so a number of entrepreneurs can benefit and become very economically benefited. 400 billion will also be available for infrastructure. we are going to create a mega fund for infrastructure to agglomerate a number of funds and moneys we have in our

economy. is going tosector be invited to participate. nt ventures. loans. promoting private partnerships with the target sector. is going to lead to invigorating are if the structure space. >> -- our infrastructure space. >> do you worry about the weakness in the rand? >> the position of the rand is a function of the market. it also has to do with a lot of what we need to do ourselves to put our economy on a better footing. , we are rand is weak concerned. at the same time it works both ways. feel theak rand, to

benefit. -- it feels like we benefit. we want the rand to be well-balanced to support the economic trajectory of our country. toare working very hard reposition our economy, to transform our economy. to make our economy more attractive to investors. >> much more to come from the 2018 bloomberg global business forum. interviews with leading corporate executives. debates thegarde impact of ai with baidu ceo robin lee. the computer to enhance human these. >> you don't want to replace us. >> no. -- human activities. >> you don't want to replace us. >> no. ♪

this is bloomberg best. the 2018 bloomberg global business forum brought together hundreds of top executives. many spoke to bloomberg television over the course of the day. go to the ceo of ford motor company, jim hackett. >> trade is a function of equilibrium. people can make decisions because, sadly, a hurricane or some sort of fire can pitch you. you are used to dealing with

that. trade is policy. i have two beliefs. it has to be updated. modernized. so many things have changed. it has to be resolved fairly quickly. what we are urging our administration to do and when we are in china and europe, we say, you need to come to agreement quickly. >> from fort perspective, them -- ford's perspective, the tariffs took about $1 billion from us. we source most of that in the u.s.. we are in a good place. if it goes on longer, there will be more damage. >> are you making changes in the way you produce vehicles? >> not really. the traded not change our thinking. we are more of an exporter and that regard.

lincoln is a hot product in china. we make that in louisville, kentucky. has made the price of our lincoln not as attractive. we have had to move people in that factory to other operations because of that trade problem. there is a lot of support for the price of oil. lack of supply, i would say. disruption. venezuela, libya. agreedfx side, they have -- you have strong support for oil prices. demand remains quite high. i announced that in june. i'm not sure it is good news to have prices too high.

when prices are too high, you open the door to competitors. competition. the demand. i am not so supportive of it. opec allies, will they be able to make up for the iran?tion lost in >> in june, they were ready to increase the production to replace part of the production which is not there. they pushed production up. saudi arabia, went up to 10.6% but was then dropped. we discovered the margins are not so high. >> you are here during united nations week. leaders.orld who has been on your list to make sure you speak to which

countries are most important that are gathered here? we have business around the world. the u.s., very important for us. mexico, brazil. those would be countries for us. the messages you are hearing? >> they want to hear about our commitment in terms of investment. environmental consciousness. sustainability. they want to know what else they competitive.more more of a destination for investors. that is very important. i was there with the south african president in a round table. they are committed to reforms. even more inviting for investors. the last two years, north of $300 million. we continue to be very welcome.

they are asking us what else we can do. they are very open to businesses. >> we hear stories about the city of chicago. unfunded or underfunded ventures. where are we in the private sector? >> statistics suggest american society might be short of by $7ment savings trillion. it is clear to me we have what i am describing as a retirement challenge we must confront. otherwise it could become a retirement crisis. it is time for all of us to take the right actions to forestall a crisis. >> who is the us in that? federal government question mark whose responsibility is that? is a shared

responsibility. for individuals, if you have not signed up for work lace retirement plans, do that. best you can. all individuals probably need to save more. for businesses, institutions, make sure you are offering a retirement plan. one that has the right kind of options. at the investments. annuities, which are an insurance product. mosthe government, importantly, thinking about how we are going to repair the social security system. by 2033, the trustees tell us the system will be under more stress and strain. speakers,the featured the commissioner for

competition. she sat down with john mickelthwait and they discussed the timely issue of regulating big tech. >> it is a two-sided market. they have dual functions. into e-commerce. they provide a number of services which allows smaller businesses to be active opportunities. that is great. they guide themselves. bookstore, everything. , movies, the works. they get all the data from the little guy. we want to understand how this data is being used. this is all about competition. innovation,-- say it is the most important driver for innovation.

think the future is a bit like telecom companies or maybe what happened with microsoft many years ago where you have a platform company which is forced to let other people trade and have access? >> i think that is very difficult to say. this is a revolution. we haven't even seen what is quantum computing. blockchain really pulling off. we have have brought -- probably platform economy. which is why it is important for us to understand, what is the new big? how are companies that benefit from network effects, huge costs, of data, marginal how do they compete? >> do you think in some ways, lefttition law has been

behind by big tex? you talked about network effects. it is difficult to intervene until after they have created near monopolies. i think our principles are fine. they are about human nature. we don't change, unfortunately. with our bad sides and good sides, we remain the same. in the regulation, we need to stay alert. you can be successful. but you should not miss use your power. very successful career to very welcome in europe. we find they miss use their .ower -- misuse their power for consumers not to be able to of choice,enefits innovation, affordable prices. that is where we have to be very vigilant. >> do you think tech firms have

become too big? you canthink at such make that conclusion. i think they can be much more transparent. my colleagues have made good proposals to ensure transparency. needed.very much the transparency. the willingness to deal with people. sort of cleare they respect your privacy, your ownership of your own data, so we as citizens feel we can build trust with technology. ♪

it is time >> to wrap up this special edition. one of the great debates centers on the long-term impact of artificial intelligence. many say it will revolutionize's nest. others claim it will damage economies. the managing director christine baidu ceo robin lee engaged on this topic. the results of the results of a study was released. , wehe finding is extrapolated from countries to the rest of the world. the conclusion was quite a lot of jobs will be significantly materially affected. when we look at those 30 countries, it will be about 26

million jobs that will probably disappear. the second finding, i thought was interesting. because it applies essentially to those tasks that are competitive, and there are more women doing those jobs, they are likely to be more effective than men by the impact of artificial intelligence. do you think that is true? >> it could be true. that is one side of the coin. there is another side. you can also say, it is kind of a repetitive. >> you need to apply judgment. relatively simple judgment. it is not that hard. if you try to teach the computer to drive, it is not that hard. most people, when they grow up, they can learn how to drive. it is very hard for computers to learn how to drive. otherses like by do and

are working on -- companies like du and others are working on driving. we are quite a few years away from self driving. vehicles,ly economist not completely free from drivers -- autonomous vehicles, not completely free from drivers. we will use the computer to enhance activities. >> you don't want to replace us. >> no. >> one more question? to -- many of whom are in china. are you enjoying a regime, and environment, framework that enables you to research, develop , anything you want? >> pretty much yes. >> too much? engineers.a lot of

china is a big market. we have tens of millions of users use our services every day. a lot of data is generated. we can use data to learn how to improve our services. we do have a lot of opportunities to innovate. that being said, there are things, how do you provide privacy? have you make sure this technology does not go out of control? but i do see more opportunities than threats. >> that will be all. and coverage of the world most important business stories, visit bloomberg.com.

thank you for watching. this is bloomberg. ♪

>> i'm brad stone in san francisco. in for emily chang. this is "bloomberg technology." coming up in the next hour, a security breach at facebook. the media network says 50 million accounts were affected by an incursion allowing hackers to take over a member's account. the sec is suing elon musk over his tweet suggesting he will take the company private sending tesla shares into a freefall. u.s. lawmakers finally get th