♪ ♪ susan coming up on bloomberg list, highlights from the 22 member of global business forum. leaders from politics, business and finance governor to discuss issues of critical importance. >> it posed by exit britain will be an unequivocally pro-business britain. >> there's a lot going on underworld and at the moment, marcus don't care. >> competition is the most important driver for innovation. globalization has been a win-win situation of the world. candid andre exclusive insight on their global concerns. >> we are working very hard to reposition your economy.

>> women are likely to be more interactive than men by the impact of artificial intelligence on the market. >> the metals tariffs took about $1 billion profit from us. >> despite the rally, the market is pricing in a little more risk. >> it is all straight ahead on this special edition of bloomberg best. ♪ schatzker.eric welcome to a special edition of bloomberg best, featuring the very best conversations from the 2018 bloomberg business forum. it was a remarkable day in new york city, with some of the most important leaders in global, finance and politics, focused on some of the worlds most difficult and pressing challenges. we interviewed many of them exclusively on the sidelines. the event began with a keynote

address by prime minister theresa may. form newed efforts to global partnerships for britain after breakfast. ♪ >> today, new challenges 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. frameworktion and the of rules that have brought us to this they look at the growth of point. artificial intelligence and ask global system is fair and whether i can be made to work for everyone. 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. and ask whether the rules-based system can be really adopted to reflect the realities of the modern world.

my answer to all these questions is a bold and optimistic, yes. and my message today is that a post by exit britain will be an unequivocally pro-business britain and a global partner that will help to lead the international response to those challenges. to our modern industrial strategy at home, we will create one of the most dynamic and business friendly economies in the world. living opportunities for businesses and branding the benefits of new sectors and technologies to every part of my country. internationally as a global britain, we will champion our vision for the future of the .lobal economy vision that is based on openness, competition, innovation, high-quality and intelligent regulation. we will be at the forefront of sustain international efforts to address the challenges facing global trade and build a dynamic and competitive global 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 with the eu will change with brexit, but we will still be neighbors and part of the european family of nations, and we will continue to champion the same beliefs. freedom, democracy and the rule of law, underpinned by a rule-based, global order. 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 but still close relationship with frictionless trade at its heart. there is no other plan that protects jobs and livelihoods and also meet our commitments in in northern ireland while respecting how people voted in the largest democratic exercise in our history. that behind the noise of the headlines and the

chattering of the commentators, there is much, and in these objectives. we know that the other models of and not deliver business would face either bureaucracy, increased border checks and all those. so i urge the eu to engage with our proposals so we can move forward. to be clear, we are not seeking partial membership as a single market or in any way, trying to undermine it. we are looking to achieve the friction-less trade that i believe is in all of our interests. there is clearly a lot further to go in the negotiations and the coming weeks will be critical. with the conclusion of the negotiations, the certainty of an implementation period in which to adapt to the new arrangements as a guarantee of friction-less trade with the eu in 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 relationsh's is with existing bilateral partners and we want to forge the most dynamic trade agreements with old 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-quality but with low tax and smart regulations. so, let me say this, very clearly. investingour business in a post brexit britain, whatever your business, investing in a post brexit britain will give you the lowest rate of corporation tax in the g20. you will access service industries in the financial center of london that are the envy of the world. some of the best universities in the world. strong institutions. a sound approach to finance and a consistent and dependable approach to high standards with intelligent regulation.

♪ eric: theresa may's pledges made headlines around the world and later in the day after the forum concluded, bloomberg broke another exclusive brexit story. our editor in chief set with french president emmanuel macron at the summit in new york where they discussed the complicated negotiations between britain and the eu. ♪ >> you had to reason may here, forhave brexit, you have the first time in the labour party, the hints that you could have a second referendum. my question to you is, if the british were to remain, would you have asked back? eminem macron: for sure. >> even if you are trying to lower the tariffs, that would go to one side and you would take us back? is about history, not

about domestic interests. i am not the one to decide and i do respect the choice of british voters, so i do not want to interfere in the debate about a second referendum. i am respectful, but i did regret the vote. forthe rest of europe and our very special relationship for friends in the united kingdom. and the united kingdom. i do think in the short run, what we have to do is precisely to have a discussion following of thegth best lines existing referendum, which means doing an agreement with a backstop for ireland, and to find the best way precisely to monitor the next phases by respecting the rules of the european union and the single market. >> coming up, we go back to the 28th two bloomberg global business forum for more of the days compelling conversations.

leaders in finance share their shot -- their thoughts on an economic feature. uying are in this b pushing back valuations and the scene for the next crisis. this is bloomberg. ♪

♪ eric: you're watching a special edition of bloomberg best. we are reviewing the 2018 bloomberg global business forum. i am eric schatz cap. the forum featured to star-studded panels on the discussions on the future of finance. i was honored to moderate the

global investment outlook and i asked my panelists to assess how finance markets have evolved in the decades since the financial crisis. -- can from this an sitter dale jumped in. -- and my next guest jumped in with a 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. if we look at loans for example, forre at in all-time record both the issuance of high-yield debt and the lack of covenants for this debt. tenureically, in the anniversary of the best that ten-year anniversary of the failure of the investment system, we are in this jet fueled buying binge that is pushing up valuations and laying the seeds for the next crisis. the 2008to summarize, crisis was not about lehman

brothers or the investment banks, it was about the collapse of the u.s. housing market where millions of americans lost trillions of dollars. it was a national economic catastrophe, but the post-financial crisis, the salient change has been the all of us have to place 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 been the biggest change of the 10 years and frankly not one for the better. >> we are nine and a half years into a global market. we are, for the most part, 30 years into a bond bull market. yields have only recently began in the last 18 months or so, to back up and the have not backed up a whole lot. if you look into the future,

what do you see? >> >> 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. from exercise -- you don't do the same thing. most individuals do not do the same thing with their financial portfolios. they don't look at it. there equities are probably way outside. if they have them. their fixed income portfolio probably have too much duration and chronic risk and best credit risk and it hasn't gone down, so i touch it? there is no money in cash, because everywhere around the world, and governments have told you not to have cash. as a matter of fact, they would charge if you had it. so you don't have cash for the liquidity for any issues you might have, and if you don't have that, you will not be able to take advantage of the opportunity. >> nobody ever says we are about to have a crash tomorrow, so you need to think about portfolio

position today before the event happens. now that i have given this gloom and doom part of the speech, we are in a period of great growth in the united states. giant ap tax reform a donovan shot to the market and to corporate america and we have gone up by at least one person or 2% and we have driven unemployment almost to the boundaries. we are creating inflation on the back of this for the first time in nine years for real meaningful wish growth for many americans. the economy is running hot right now and the trump policies, whether it is the regulation tax reform is sternly pushing corporate america to go, go, go. go in terms of new equipment, hiring people and so on and so forth. we probably have another 18-24 months minimum in the of then the back

adrenaline rush from trump policies as he is really trying to reignite growth here in america. advocatingary is having cash, you are advocating liquidity. first of all, i'll suck, not beta. there are tens of my market when we are worried about the tail risk but you are worried about, so we are trying to purchase an individual company, and the .ector changes that data the second thing, generally, we are leading into growth and deception, which is a little bit counterintuitive, because often ,s you get more conservative you have to go back to the incumbent companies. of a rise in an era of insurgency and if multiples are going to come in, i want something that will grow into

that multiple degradation. so we are holding back our deployment and moving towards alpha plays and situations were re-think there is industry and sector growth that will overcome the inevitable correction, whenever it may be. ♪ the next session brought eric: together blackrock's larry leaders such as the ceo of credit squeeze. what are the most significant issues they talked about was several attacks. >> the number one thing, i think about what can go wrong and what can cause problems to our business is cyber. own i look at your experience, the efforts that we have come a all the pressures and challenges is that the big issue is probably, it doesn't get as much attention as it deserves, even if it gets a lot of attention. i don't think that people are really internalizing, you know,

what the first seconds of a derivative impact of something serious like this occurring on perspective. >> do you all have to work together? do you need to share information to make sure cyber attacks to not impact large financial whole?tions as a >> i think that financial's editions that are most prepared. >> i am talking broader. >> i actually believed that if there are several attacks, it will be on organizations that have under spent on technology, and my first candidates would be state governments there who possess social security numbers. so to me, the problem could be to organizations that are not in focus. the financial sector has been obviously,scrutiny, because of the financial crisis, but i would say it is one of the

sectors that is doing as much as it can. i am not trying to suggest that there may not be an attack or a real impact, but the worry has to be in these other sectors that have a lot of personal information. >> there was a lot of corporation, there's a lot of organization. >> does a cyberattack change the market? >> one of the reasons and this is always correlated to positive and negative to the markets, is common sense. common sense and sentiment has a lot to do with markets. at the moment, it is hard. there is a lot going on in the moment, marcuse stone really care. that doesn't mean they don't react to the margins, but they have been a less sensitive to some other things that might create sentiment shifts. historically, more than they are today. >> i would argue right now that despite the big run, equities are cheaper today than they were in january. earnings have been so powerful and appear to be even more powerful than we witnessed about

a multiple point decrease in te's. so the market is actually now, despite the rallies, it is actually pricing in a little more risk. >> i agree, but compared to when he started q1 -- i where i was going with it, think it is an example of something that can change people's sentiment and behavior in ways that cap -- that could have a derivative effect on how apply capital and markets. eric: up next, bank of england governor mark carney discusses another global threat, climate change, and the importance of discloseusiness to climate information. >> get that first cycle of better and better disclosure, better capital allocation. eric: this is bloomberg. ♪

♪ bloombergre watching best, i'm eric schatz guy with a special recap of the 2018 bloomberg mobile business forum. mark carney was one of the many global financial leaders who attended the event. he spoke exclusively with our friends in the lacuna the focus . the focus of the conversation is on myship on a task force mid-related financial disclosures, which just released its first report. carney says there is increasing demand for companies to disclose climate related information. >> there was $25 trillion in assets under management. the task force comes out. itrivate sector task force, says, this is how we should do the disclosure. now it is $100 trillion. more than global gdp. three quarters of the globally systemic banks and shores looking for this type of information.

major pension funds, insurance, there are all looking for the step of information. what i think happens is, the private sector does what it does best. companies are starting to disclose. they throw away the stuff that is not useful and the focus on what is material to decision making and then you get better and better disclosure, better and better capital allocation and real progress. francine: what about the people who don't want to disclose? mark: i think that the best a range ofome across industries and geographies, part of what came out today in the was 2000 and the top companies around the road. vastou see that the majority of them are disclosing at least, some aspect of climate related risk in their report. so they are moving. this is a process you learn by doing. again, i will come back to, what is material, what is decision-useful? what is the $100 trillion to make their capital allocations?

i think the key thing that we are seeing now on top of just sort of disclosure, what is my carbon footprint, if you will, is you are getting boards and management involved, thinking about how this affects strategy. if there is disclosure about strategy, strategic resilience, -- how resilient are you to changing climate policies? francine: how difficult is it to measure this data, when it comes to air pollution and water. >> i think what is relatively straightforward to measure is the static carbon footprint. what is your footprint in your core -- in your so-called, scope one, in your plan. what is a footprint of that? it is relative to then go and say, i have my energy use, what is the carbon flippin of that area you the thing that is -- carbon footprint. tough is to look at the supply chains.

after the product has started being made and the components that come in. that tells you a lot and the more the more -- the more and more that the market is a disclosing, you can see upstream and downstream, because it have information. francine: 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? or does it hinder your course? mark: i would take a neutral view around disclosure. there are people who are climate skeptics and say exactly what you just said, and there are others who say, this is the absolute top priority and companies the to act now. there will be a lot of people in between and the people in between, i think, will react to what happens with climate policy around the world. remember, 195 countries are still signatories to the harris climate accords. what you need to make markets between denial and the truth believer, is to have that

information. what you are seeing today, 100 trillion of assets are looking for that information and we now have 500 of the world's largest providing that information. 2000 of which, once we look more broadly, are starting to do it .nd really, a virtuous cycle starting to hear of learning by doing, focusing in on what is relevant. and what is interesting, the japan 2020 summit, prime minister shinzo abe wrote in an op-ed this week where he mentioned disclosure. there are looking to give a real status report into that summit in june and where the private sector should be. ♪ eric: still ahead, we review the 2018 bloomberg global business on ai'shristine lagarde explosive impact on jobs and the economy. margrethe vestager on regulating tax, and presidents and prime ministers speak with us. and with each other.

>> my goal is up at the end of our term, we will be very close to putting an end to extreme poverty. this is bloomberg. ♪ eric:this is bloomberg. ♪ . . .

erik: welcome back to this special edition of "bloomberg best." i'm erik schatzker. we're focusing on the 2018 bloomberg global business forum. one of the day's liveliest panels gathered four past and present heads of state on stage for a vigorous conversation. former u.s. president bill clinton moderated, with president ivan duque of colombia, prime minister of norway erna solberg, and south african president cyril ramaphosa. mr. clinton: ok, we all live in an interdependent world. we want to work together. we believe that creative cooperation is better. you have to figure out what that means in terms of how you are going to get the economy going,

how you are going to reduce inequality, and how you redeem the promise of land reform without screwing up the investment climate and making people trust you. pres. ramaphosa: apartheid was once seen as the most intractable problem in the world, that could not be solved. but under the leadership and guidance of nelson mandela, we were able to resolve it. and similarly, now, his spirit, 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. we're going to make sure that as we 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. mr. clinton: it is one thing to say you are for peace and

inclusion and quite another thing to achieve it when there is an unlimited amount of money coming from narco trafficking to do everything possible to undermine the future you want to build. pres. duque: i built my agenda for colombia based on three pillars. law and order, legality, entrepreneurship, because we want to be a country that is always more business-friendly, that is always open for a small, mid-sized enterprise to keep growing and innovating. and the third thing, if we have legality and entrepreneurship, the consequence is equality. that means closing the gaps. gender gaps, income gaps, and i feel very proud to be the first colombian president to have a parliamentary, equalitarian cabinet that is 50% men and women, 50% men, 50% women. and i also feel very proud that we are mobilizing investment to technology, to agricultural development. and my goal is that by the end of the term, we will be very close to putting an end to extreme poverty. mr. clinton: what is your take

on where we are in the world today? how can we get other people who otherwise think like you to continue to be committed to global trade, global development? and how is your country dealing with the upheaval caused in europe by the massive influx of refugees, mostly from violence in the middle east? p.m. solberg: i think globalization has been a win-win situation in the world. both for -- especially for developing countries. the fact that we are lifting so many people out of poverty. but of course, you have the space in between what happens for people inside those countries that usually were the part of the global society, poor people with low income, low education who now feel themselves threatened. and i think that is a european issue today, to make sure that you have an open economy, trade,

that you step forward on globalization. because technology will drive this globalization, whatever politicians are going to say, because the technology will move that. erik: land reform is just one of the difficult issues cyril ramaphosa must address as the president of south africa. he went into depth on challenges facing his country's economy in an exclusive interview with francine lacqua. francine: investors were concerned about a number of things. do you feel it is because they are expecting you to go too fast in the reforms, to go too fast in cracking down against corruption, or do you think you are part of the turmoil affecting emerging markets? pres. ramaphosa: well, you see, investors have been concerned about south africa in terms of our policy constructs on a number of issues. land has been one of those. and we are giving a very cogent explanation of the process we are involved in.

on other issues, for instance on corruption, we are dealing with corruption quite effectively. on other issues that have to deal with our policy on the mining industry, we are addressing that. on telecommunications, we are addressing that. on visa regime, we are addressing all that. so many of the issues that have been raised by investors are the policy fronts we are addressing. and we are addressing all those in a very proactive and positive way. but the beauty of it all is that we are including them in the discussion. we are collaborating with all role-players in south africa -- the unions, civil society, as well as business. you could not have a better outcome out of a type of process like that. francine: you also said that in your economic stimulus and

recovery plan, you said you would redirect around 50 billion rand. right? where are you taking it from and putting it in? what ministries? pres. ramaphosa: we are going to reprioritize our budget. we are currently looking at where we can reprioritize and where we can get this 50 billion. that will be announced by our minister of finance in his medium temp budget statement. and where are we going to put it? we are to put quite 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 in the rural areas. we are going to focus on skilling the youth and women, so that a number of entrepreneurs can benefit from it and become very economically active. but 400 billion will also be made available for infrastructure. we are going to create a mega-fund for infrastructure to agglomerate a number of funds and monies that we have in our economy.

the private sector is going to be invited to participate. in equity, in joint ventures, in professional propositions, in loans. and also promoting private partnerships with the target sector. so all this is going to lead to invigorating our infrastructure space. francine: do you worry about the weakness in the rand affecting a, your infrastructure plan, and also being able to repay your external debt? pres. ramaphosa: yeah, well, the position of the rand obviously 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 much better footing. and when the rand is weak, obviously we are concerned, but at the same time, it works both ways. with a weak rand, there are others who feel that they

benefit. with a stronger rand, they feel that they benefit. so we want the rand to be well-balanced as to be able to support the economic trajectory of our country. so we are working very hard to reposition our economy, to transform our economy. to make our economy more attractive to investors. erik: much more to come from the 2018 bloomberg global business forum. interviews with leading corporate executives, a conversation with the eu's competiton commissioner, and the imf's christine lagarde debates the impact of ai with baidu ceo robin li. robin: we will use computers to enhance human activities. christine: you don't want to replace us. robin: right, no, no. erik: this is bloomberg. ♪

erik: this is "bloomberg best." i'm erik schatzker. the 2018 bloomberg global business forum brought together hundreds of top executives, on stage and in the audience, and many spoke to bloomberg television over the course of the day. let's begin with the president and ceo of ford motor company, jim hackett, who talked about trade with my colleague david westin. jim: trade is a function of equilibrium. everything is kind of working,

and business people can make decisions because yes, sadly, a hurricane or some sort of fire like we had in the factory can hit you. you are used to dealing with that. but trade is policy, so i have two beliefs about it. first, it has to be updated. it has to be modernized, because so many things have changed, but it has to be resolved fairly quickly. and so 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 ford's perspective, the metals tariffs took about $1 billion of profit from us, which the irony is that we source most of that in the u.s. today anyways. so we are in a good place right now, but if it goes on longer, there will be more damage. david: are you making changes in the way you produce vehicles? where you produce them, how many you produce, what your supply chain is already? jim: no, really not. the trade did not change any of our thinking about that. as a matter of fact, we are more of an exporter in that regard. so lincoln is a hot product in china. we make that in louisville, kentucky.

and so the 25% tariff has made the price of our lincoln mkc not as attractive. we have had to move people in that factory to other operations because of that trade problem. patrick: with all that is happening in the world today, there are a lot of supportive elements for the price of oil. in particular, lack of supply, i would say. this disruption of supply. iran exiting the market, venezuela, libya, and even on the opec side, they have agreed to increase production, but that production has not increased so much. so today you have strong support for oil prices. but the demand remains also quite high. despite the high price, which is a little bit of a surprise. so yes, i announced that in june. i'm not sure it is good news, by the way, to have high prices too high for the world economy, even

for the oil industry. you know, when prices are too high, then you open the door to competitors and competition. and the demand will fall again. so i am not so supportive of it, but that is a fact. francine: will opec and opec allies be able to put enough barrels to make up for the production lost in iran? patrick: in russia, with the last opec in june, they were ready to increase the production to replace part of the production, which is not there. but they pushed the production up. russia is at 11.3%, maybe they could go to 11.5%. saudi arabia went up to 10.6% but then dropped. so i think the market is discovering that the margins are not so high, and probably it pushes the price up. jason: you are here during united nations week. so many world leaders here. who has been on your list to make sure that you speak to?

what countries are most important that are gathered here today for the future of your business? carlos: well, we have business around the world, on all continents. the u.s., very important for us. mexico, brazil, south africa, colombia, china -- those would be the top five or six countries for us. jason: and what are the messages you are hearing from some of those leaders while they are here in your town? carlos: they want to know about our commitment to their countries in terms of investment, in terms of environmental consciousness, in terms of sustainability, and they want to know what else can they do to be more competitive, in terms of being more of a destination for investors. that is very important. i was this morning with the south african president in a round table. and south africa, for example, is very committed to reforms and things that will make the country even more inviting for investors. we have been in south africa for more than 100 years. in the last two years, we have invested north of $300 million. and we continue to be very

welcome in south africa and very happy to be there. so they are talking to investors and asking us, what else can we do? they are very open to businesses. david: we hear stories about public pensions -- the state of illinois, the city of chicago, we hear horror stories, frankly, of unfunded or underfunded pensions. where are we in the private sector, not just the public? roger: statistics i have seen suggest, broadly speaking, american society might be short of retiring savings by anywhere from $4 trillion to $7 trillion -- that is trillion with a t. so it is clear to me that we have what i am describing now as a retirement challenge we must confront, otherwise it could become a retirement crisis. it has not yet done that, but it is time for all of us to take the right actions to forestall a crisis. david: who is the "us" in that sentence? is that private corporations, is that state, is that federal government? whose responsibility is that? roger: the truth is it is a shared responsibility, and "us"

literally is us. for the individuals, number one, if you have not signed up for a workplace retirement plan, do that. max out as best you can on your retirement savings. all individuals probably need to save more. for businesses and institutions, it is make sure you are offering a retirement plan. and offering one that has the right kind of options in it, which include both equity investments, but importantly, annuities, which are an insurance product that guarantees against longevity risk. for the government, it is creating laws that will make for safe harbors for annuities, for example, and most importantly, thinking about how we are going to repair the social security system, which by 2033, the trustees tell us the system will be under literally more stress and strain. erik: one of the featured speakers at the bloomberg global business forum's plenary session was margrethe vestager, the commissioner for competition of the european commission. she sat down with bloomberg's

editor-in-chief john mickelthwait, and they discussed the extraordinarily timely issue of regulating big tech. margrethe: amazon -- it is a two-sided market. they have dual functions. they host the little guy, so he can enter into e-commerce. they provide a number of services, which allows also smaller businesses to be active in e-commerce and grab active opportunities, and that is great. they are also the big guy themselves. bookstore, you know, everything -- groceries, movies, the works. and they, of course, get all the data from the little guy. and we want to understand how this data is being used. because this is all about competition. because when we say innovation, well, competition is the most important driver for innovation. for you to stay ahead of your competitor. john: do you think the future is

a bit like telecoms companies or maybe what happened with microsoft many years ago, where you have a platform company which is then forced to let other people trade and have access to that platform? margrethe: well, i think that is very difficult to say. because this is a revolution. things change and we haven't even seen what is coming with quantum computing, blockchain sort of really pulling off. so we would probably have a platform economy that is much more diverse than what we have seen, which is why, of course, it is important for us to understand, well, what is the new big? how are companies that benefit from networks' effects, from huge amounts of data, from marginal costs approaching zero, how do they compete? and for us, that of course is the important thing. john: do you think in some ways, competition law has been left behind by big tech? you have these companies where you talked about network effects

-- it is very difficult to intervene until after they have created these -- i suppose near monopolies, as some people would see them. margrethe: i think our principles are fine, because they are about human nature, and we don't change, unfortunately. with all of our good sides and bad sides, i think we remain the same. but of course in the regulation, we need to stay alert. because you can be a big. in europe, you can be successful, but you should not misuse your power. this is actually the story of the two google fines. very successful, very welcome in europe, but we find that they have misused their powers for competitors to not be as innovative as they want to, for consumers not to be able to enjoy the benefits of choice, innovation, affordable prices. that is where we have to be very

vigilant. john: do you think tech firms have become too big, in some cases? margrethe: no, i do not think as such you can make that conclusion, but i think they can be much more transparent. my colleagues have made, i think, very, very good proposals to ensure transparency in the relationship between the smaller business and the platform, and that i think that is very much needed, the transparency and the willingness to deal with people, and to be much more sort of clear that they respect your privacy, your ownership of your own data, so that we as citizens feel that we can build trust with technology. ♪

erik: i am erik schatzker. it is time now to wrap up this special edition of "bloomberg best," the review of the 2018 bloomberg global business forum. one of the 21st century's great debates centers on the long-term impact of artificial intelligence. many say it will revolutionize business. many others claim it will damage economies by eliminating jobs. managing director christine lagarde and baidu ceo robin li engaged on this topic at the bloomberg global business forum, and lagarde revealed results of an imf study that appears to quantify the use of ai. christine: essentially the finding is that and we 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, is that because it applies essentially to those tasks that are repetitive, and because there are more women doing those jobs, women are likely to be more affected than men by the impact of artificial intelligence on the labor market. intelligence. do you think that is true? robin: it could be true. but like i said, that is just one side of the coin. there is another side -- laboring, you can also say, it is kind of repetitive. christine: you need to apply judgment. robin: yes, relatively simple judgment. it is not that hard. for example, 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. but it is actually very, very hard for computers to learn how to drive, although companies

like baidu and ford are working on autonomous driving, and we are quite a few years away from truly self driving. it is still i would say highly-autonomous vehicles, not completely free from drivers. so we will use computers to enhance the human activities. christine: you don't want to replace us. robin: right, no, no. but there is -- christine: am i allowed one more question? i want to ask you one, because you have 40,000 employees around the world, many of whom are in china. are you enjoying a regime, an environmental framework that enables you to research, develop anything you want? robin: pretty much, yes. i think --

christine: too much? robin: [laughs] yes. china is a big market, and we are a lot of people, and we have tens of millions of users who use our services every day. a lot of data is generated. we can use data to learn how to improve our services. so we do have a lot of opportunities to innovate. but that being said, there are constraints, like, how do you provide, protect privacy? and how do you make sure this technology does not go out of control, that do bad things to mankind? there are things that we need to worry about, but i do see more opportunities than threats. erik: that will be all for the special edition of "bloomberg best." for more interviews, analysis, and information from the 2018 bloomberg global business form um and of course for coverage of the world's most important

business stories 24 hours a day, visit bloomberg.com. thank you for watching. i am erik schatzker. this is bloomberg. ♪ xfinity mobile is a new wireless network

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