[laughter] ♪ working with larry fink? philipp: oh, there's a good question.ughter] ♪ ♪ francine: as a hedge fund manager, philipp hildebrand made his mark amongst the swiss elite, but his ambitions ran higher. by the age of 46, he joined the ranks of the central bankers club, becoming the youngest president of the snb. his term ended just two years later when a trading scandal involving his then wife led to his resignation. the bank of england's mervyn king said, we all know that he is a man of total integrity, extraordinary ability, and most important of all, courage. such people are rare. his country will miss him. hildebrand believes strong leadership is having the courage to act in the face of adversity. when you were head of the snb, what was your decisive moment? philipp: in my time we had two i would say. one was the rescue of ubs, which was a very difficult moment. in many ways it went against everything we believed in, and yet we knew we needed to do it. we also knew it would create tremendous anger in the population. that was clear. and of course, i

philipp, what is it like working with larry fink? philipp: oh, there's a good question. larry is a bit older than me. and you know, i try to keep fit, but traveling with him is a -- is a workout. francine: is he demanding? philipp: he is demanding, yes, he is demanding, but no more demanding than he is on himself. you know, we -- he has coined this phrase that we all have to be students of the market. that there no excuse for anybody at blackrock not to be a daily student of the market. and i think that shapes the culture very much at blackrock. this relentless kind of never be satisfied, always remember that the world moves on, you have to continue to learn every single day. so we have a lot of initiatives around internal programs and academy where we really force everybody and encourage everybody to, to kind of live that motto. and if people can't do that or don't want to do that, then they are in the wrong place at blackrock. so, the culture that he carries very much runs throughout the firm. francine: what's the question you get asked most internally, and by your cli

in, tutor jones weighing lee cooperman, larry fink.s portrait of a guy who is very focused on charter schools but also this area that has been such a massive engine, putting blackrock to the top of the charts in terms of acid under management. alix: he doesn't go to movies because he believes they are a waste of time. he doesn't go to concerts apparently. he sitsrday every month and reads market research. i am really nerdy, but a whole day? >> that seemed like a bridge too far for me as well. alix: he loves his tesla, by the way. david: speaking of. this story i love, too. investors are putting in orders for as much as 14 times with the carmaker intends to sell asset-backed securities. >> these are tesla bonds. the funny thing about this, it is an asset-backed security, but in this case, the acid is -- is, people are joking, maybe i will get a tesla out of this. alix: if you look at their cash flow, billions in capex, negative cash flow continuing. david: if you give them money, it is going right out the door. it is not coming back. >>

it's doing on top of the tax reform plan i remember those words at conference that i was at of larry fink saying it's unprecedented. who knows how this is going to work out you've got rates rising. the fed is rolling off its balance sheet and we're doing this massive tax plan and who the next knows how it's going to play out maybe we're learning >> that's right. we are in unchartered territory. we've never seen fed monetary policy intervene we saw the expansion to 4.6 trillion i think we've become conditioneded. i don't want to diminish the pain in the market there's serious pain, but also wild opportunity i think you have to understand what is that opportunity we've seen the technical takeover, but i think we're going to see more of f a shake we haven't seen the panic selling. two weeks ago, we saw panic buying the bearing were throwing in the towels 100 billion in retail. >> it's felt like panic selling at moments >> i agree with scott, but there's a larger point that i want to draw from this you know, we're all talking about this basically being a correction and scott, yesterday, you a

nobody's picking on blackhawk or larry fink.me out and call for csr, corporate social responsibility, in a letter and you're going to use that on exxon mobil, if you care about this issue, then perhaps they're going to have to do something. by the way, you can strip out certain stocks from index funds. they'll charge you a little extra fee, as i'm sure you know. but you can do it. >> i don't think we're calling larry fink out. i think we're encouraging him. first step's a great one. we can't wait for step two. thank you so much. >>> coming up, president trump announces a visit to go see prototypes for his border wall. while the wall is designed to stop people from illegally crossing, we'll meet some people whose entire livelihood depends on being able to get across that very border. ette shave. and at our factory in boston, more than a thousand workers are starting their day building on over a hundred years of heritage, craftsmanship and innovation. today we're bringing you america's number one shave at lower prices every day. p

i agree with larry fink and the statemts that black rock said. my heart breaks for these kinds of situations. we care approximate so many -- and i personally care about a lot of these social issues. but this isn't our money. this is a t fund, and we are fiduciaries. what we are trying to d m ise a long term investment decision. i feel for many of my piers that are at the teacher retirement fund, and i know their members are angryhey may own these. but as you hesaid, own them because it's the entire market. they own the entire u.s. stock market. these are in that index. which means you own it. to pull one company out of an index, there is a hole there and, you can't trade it as well. and many time it is in a mutual fun and they don't have the ability to not open that one lile slice. you want to track the markets, that means all companies not just som subset of that. >> yeah. you said something that intrigued me aboutur the f of firearms makers. do you think a lot of what's going on right now necessarily has their future in doubt? is that what you

larry fink, who is one of the most powerful people in finance, wrote a letter just a month and a halfago to c.e.o.s saying that your companies must actually provide a net social beefit to society. and this is a big change, because now he's stuck with owning these big companies-- owning big stakes in these gun companies, but at the same time, having to kind gf mad on his promise. and that is really going to e.art to push for cha it won't be development, i don't think, in the way we saw in the 1980s with south africa, which was just get out, you know, i.b.m. does business there. we're selling our i.b.m. stock. i.b.m. finally pulls their business from south africa, artheid falls. i think what we'll see here is more engagement. >> sreenivasan: rob x from reuters breakingviews, thank you. >> sreenivasan: hear more of our facebook page,ingviews" on our facebook.com/newshour. >> this is "pbs newshour weekend," saturday. sreenivasan: a boston photographer is highlighting the contributions of immigrants. newshour weekend's mori rothman reports. >> you turn the corner, and all of a sudden you s

. >> yes >> tell us about the plane we were having a conversation about that larry fink letter i knowou're on larry's side on this >> i think we inspired larry we have the red plane coming out today. our third. we had the pink plane for brens breast cancer awareness, the teal plane and now the red plane for heart. >> two questions, on this plane situation, and the larry fink letter, i think you were watching squawk when that letter came out you know who was on our air when he had some not so nice things to say about it. sam zell >> i am in larry fink's corner we need to stand for things. we're citizens of the planet, it's our job to make the planet better the red plane will raise awareness for the number one killer of all time, heart disease. i'm excited and proud of that. i would say on sam zell's front, sam, you are old school vushgyoe to revisit this thing. appreciate the corporations in the old days, didn't look at 9 world that way, but i think sam is on the wrong side. >> who do you root for this weekend? you have people coming in from philly and boston. >> like nbc, we root for

. >> there is a movement from larry fink at blackrock and from others who are kind of stepping into thisaying that they would like to have more of an impact on the companies that they are investing in, that they would like to have maybe a little bit more say in what's happening it's an arena that can get pretty fraught with potential missteps though because by taking a stand you're potentially alienating up to half of your customers where do you come down >> yeah, it's complicated. i'm insuring for what's been going on with wells fargo. wells fargo, we do lots of business with them they made a big mistake and some others that flowed out of the big mistake, but berkshire has made mistakes. i got involved in solomon when they made a mistake. you will not find any large company that doesn't have some problems of one sort or another. i mean, the best defense is a hotline and we have found out more things that have been wrong at berkshire through the hotline -- >> but i think this is a little different than finding out cases of fraud or wrongdoing or somebody doing things that are wrong. this

bigen you have investor pushing against specific companies, it is nothing new, but this time it is larry finkwith clients who want to move manufacturers of weapons that do not align with their values. is that a push back? >> what you are seeing is a push towards the behemoth index when some ofact these things on a global or national scale happen. what happened is that you are seeing more index providers become the, largest holders and stocks across the nation including guns as blackrock is, there is an outcry saying what are you going to do as the largest shareholder? we had fund managers picking stocks, but now with a range of stocks it is harder to say we going to throw out one. do they say we will not own that at all? a couple of things are happening with institutions, in down rents, and pensions who after the newtown tragedy said we are not going to hold these stocks. they can exclude certain stocks. institutions are saying to providers that we want you to build an index without that. that brock said we are seeing increased demand for building indexes where people can say we don't want th

to operate from society if we violate the terms of the license it could be revoked and recently larry fink has echoed the spirit of that. suggesting business leaders could fill a void that is left in the legal system and raise higher standards and in his annual letter and look at pepsi coand what they've send for standards and nutrition and not legally required, it is very successful 16 great quarters of record-setting profitings. and that is doing good and well. and look at ken fraser at merck. >> a lot of examples we appreciate it thanks so much >> we have to run. thank you. >> thanks. >>> watch out cvs and walgreens and watch out for walmart. and a new piece about whether google should be broken up getting a lot of buzz out there. could it happen and will it be a good idea. >>> we'll debate that next but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. the

. >> what's interesting about blackrock is larry fink just sent out that letter about social responsibilityations need to do more and this may look like he's saying, not my problem >> exactly i think that's one of the reasons they have come under fire they put out that letter and one of the main tenants of that letter is to deploy their corporate governance team to do things like this and to engage more with management if you're a passive owner of a stock because it's in an index, there isn't as much you can do because you don't have that power to sell. >> now, okay, i was going to ask you about that because last hour we talked about this and i think you suggested that if you are unhappy with where the money is going in a particular index fund, you can ask to taylor make your own fund. >> yes if you were an investor in an index fund, you can taylor make your index fund. if you're blackrock and you are managing those index funds and etfs, you have to mirror what's in the actual index. unless a client is coming to you asking specifically for their own customized etf or index fund - >> how pre

we've got larry fink in 2014 saying they could blow up the industry we got blackrock coming out, so it's blackrock coming out in the last two days, the largest asset manager saying we do need to classify these things differently. >> so that of my question. are you talking about the all the etps or put aside the etfs and focus on the leveraged products >> the leveraged and the inversed, and the notes. the leverage, the inverse and the notes, not the regular standard, i mean, the etfs that are based upon whatever u.s. oil, u.s. nat gas, the s&p, those are standard things, easy to follow, they're good investments and particularly for mom and pops good places to invest in the market but these really exotic things, i mean it reminds me back in the day with credit default swaps they were really ingenious products, needed products for the markets, but you know, wall street sort of went overboard and sliced and dialsed them and we know what the result of that was, 2008. so i'm just saying be cautious and i think the sec will, one, i guarantee you, they are looking at some of these markets from f

i like larry fink's statement.think that's what -- and the companies that do that are going to perform but if you're only purpose is making money, you're going to run into a million difficulties. you've got to follow the purpose. that's what's going to get your employees around and brings your customers around few shareholders object, so be it. >> it's not necessarily shared widely though, i think, bill there is a view that a company's purpose is largely to generate results for its share owners and that's about where its responsibility ends. >> i don't think so. under law we're there to serve the company as a director, are you there to serve the company and its shareholders and i think that is a very growing feeling. if you look at the company performed they've been very purpose driven. >> millennials certainly care a lot more about that and as they move into the mainstream perhaps larger owners of equities in general that may become more of an issue. >> exactly. >> one thing that struck me is some companies give d

larry fink is nearing moves that brought warren buffett tremendous success. looking to raise $10 million capital. it is a look world's largest asset manager. in the first attempt to make such direct investments in company. the markets were extraordinary worldwide. from our clients they added another $380 million. we could say about $620 billion was market appreciation. shares are up about a 41 percent over the last year. look at that chart. and you just knew this move was coming after him is on what whole foods. they are offering it to our deliveries of groceries also in cincinnati ohio and virginia beach virginia. there can be able to order things like fresh fruits and vegetables from the local whole foods store. the two-hour delivery is free. amazon shares are higher in the premarket. republican senator ron johnson releasing an intern report. including a new text messages that draw possible connections of former president obama. two months after the fbi closed that clinton e-mail case in two months into the russia pro. there they are using bureau shorthand.

. >> larry fink is one of the key voices against activists >> right >> so you wonder, okay, if they take these stakes and do what you do or -- >> right so let's say they take an active stake or a passive stake in one of these, then an activist shows up because they control another major stake in it via ishares group, can they gang up and use this i'm saying -- >> and if it's a high humidity day that day >> yeah. that too >>> coming up, crude prices posting their worst loss in two months. >>> u.s. equity futures after a volatile day yesterday an implied open for the dow jones industrial average down 168. the dow trading in a more than 500-point range one day ago. looks like it may be volatile yet again off the open stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. like you do sometimes, grandpa?

. >> larry fink says he wants to use his influence as a large investor - >> for social issues for important he thinks long-term influence the business. >> absolutely. >> so the question is, he's going to go to companies like american outdoor and others. >> right. >> i imagine and say, look, we think for the long-term health of your company, what's going to happen, we think you need to start pursuing the manufacturer of smart guns or screening for the sales of certain types of your guns. >> right. >> is that the right decision from a company like that from a company like blackstone, blackrock to use that influence? >> i can't prove what influences management decisions i know this. what dick's did today was right for two reasons. it was the right thing but i can't not believe that this is going to be good overall for people feeling good about dick's or wanting to go into the stores you have to understand the importance of people feeling good about where they spend money. or feel like they're doing the right thing. >> thank you very much brian, thank you when we come back, jim cramer. make som

. >> blackrock came out and said -- >> larry fink came out and said they should be regulated jim cramerectly so, but once again, it's a leverage issue. >> here's the thing about regulation people always want leverage. you go back to 1929 and people were buying on margin. so they've raised the margin requirements and then you try to tamp down leverage here. no, you're not allowed to do that then you know what happens, when money gets cheap, people buy six houses when it works, it's really good. >> they didn't understand what they owned in etn. it's okay to go to zero if you don't know what you're buying. that's a good lesson. >> if you're looking for leverage in a product, you can go and get reg team margin from your bank and get leverage assess your risk. >> but it's so much easier to buy this etn. >> so much easier to lose 90% in a day. >> yes >> if you know you have the probability of losing 90% in a day, you may go to that product etn, not etf, etn and do your best and say, listen, i've doubled my money in a year now i'm going to take all this money off the table. it could all be gon