TAKING BREAKFAST TO A GALAXY
FAR FAR AWAY.
ALTHOUGH STORIES COMING UP.
FIRST OUR TOP STORY THIS
HALF-HOUR, GROWING THE GLOBAL
ECONOMY.
JAMIE DIAMOND RELEASING HIS
ANNUAL LETTER TO SHAREHOLDERS
THIS MORNING AND PENDING AN
OP-ED IN THE WALL STREET
JOURNAL HOW GOVERNMENT CAN WORK
WITH PRIVATE COMPANIES TO SPUR
ECONOMIC GROWTH AND HELP THE
WORKERS.
IN HIS LETTER TO SHAREHOLDERS
HE GAVE HIS TAKE ON THE GLOBAL
ECONOMY WRITING GLOBAL ECONOMY
ACROSS ASIA AND JAPAN, EUROPE
AND THE UNITED STATES HAS BEEN
DOING WELL, BETTER THAN MOST.
THE UNITED STATES MAY BE
STRENGTHENING AS WE SPEAK BUT
IT COMES BEFORE THE MARCH JOBS
REPORT, 193,000 JOBS TO BE
ADDED TO THE ECONOMY IN THE
MARCH OF MONTH WITH THE
UNEMPLOYMENT RATE DOWN TO 4%.
THAT WOULD BE ALMOST FULL
EMPLOYMENT.
JOINING ME TO TALK ABOUT THE
BROAD ENVIRONMENT IS JOHN.
YOU HAVE A GREAT VANTAGE POINT
TO SEE NOT JUST THE CORPORATE
SECTOR BUT THE RETAIL SECTOR.
LET'S TALK ABOUT YOUR VIEWS
HERE AND HOW YOU CHARACTERIZE
THE ECONOMY FROM 30,000 FEET.
>> AS GOOD AS IT GETS.
THE ECONOMY HAS GROWN BY 4%.
ASIA IS ON GOOD MOMENTUM.
THE US IS IN A GOOD TREND, GOOD
DYNAMIC, EXPANSION.
CORPORATE AMERICA IS IN GREAT
SHAPE, CASH RATES DIVERGING
EUROPE IS BOOMING, EXPANSION
BENEFITS ALL COUNTRIES WHICH IS
AN INTERESTING EVOLUTION AND
LEADERSHIP FROM FRANCE AND
GERMANY AND THE ECB IS
PROVIDING A STRONG STIMULUS.
MARIA: YOU ARE SPEAKING TO SO
MANY INTERNATIONAL CLIENTS ON
THE CORPORATE SIDE.
LET ME ASK WHAT YOU ARE HEARING
IN TERMS OF THE TAX PLAN, THE
POLICIES OUT OF WASHINGTON.
HOW HAS IT IMPACTED THEM AND
HOW ARE THEY PUTTING MONEY TO
WORK.
>> THE TAX CUT BENEFITS,
SIGNIFICANT, THERE IS ONE
DIMENSION OF THE TAX REFORM
WHICH I THINK IS QUITE
IMPORTANT, REPATRIATION.
THE FLOWS OF MONEY COMING BACK
THANKS TO THE REPATRIATION
DIMENSION WILL EVENTUALLY FUEL
THE ECONOMY AND HOPEFULLY
CREATE MORE JOBS AND PROVIDE
MORE IN BUSINESS.
MARIA: PEOPLE WERE AFRAID
COMPANIES WOULD ONLY USE THAT
EXTRA SAVINGS TO BUY BACK
STOCKS.
BUT YOU THINK WE WILL SEE A
PICKUP IN DEALS AND A BETTER
BACKDROP.
>> SO FAR IT IS TRUE THAT
LINKED TO SOME VOLATILITY THE
BUYBACK TREND HAS BEEN QUITE
HIGH.
I'M OPTIMIST, A GOOD STATE OF
THIS ECONOMY WILL CONVERT INTO
INVESTMENTS AND CONTINUE TO
SUPPORT THE EXPANSION WE SEE
HERE.
MARIA: WHAT ABOUT THE
BACK-AND-FORTH OVER TARIFFS,
THEY SAY IT CREATED SO MUCH
VOLATILITY YOU ARE SEEING IT IN
YOUR MARKET, MARKET SAW A
MASSIVE BOOM SWINGING 700
POINTS.
YOU EXPECT VOLATILITY TO
CONTINUE?
HOW DOES THAT IMPACT YOUR
BUSINESS?
>> WE DO.
PROBABLY THE ABNORMAL SITUATION
LAST YEAR WHEN VOLATILITY WAS
LOW, RATES WERE HIGH.
THE ABNORMAL PART AND BACK TO
MORE NORMAL VOLATILITY.
THE VICKS IS IN THE 20s AND
THIS IS WHERE WE ARE.
ONE FORM OF VOLATILITY.
LAST YEAR THE MARKETS WERE
INVESTED IN US EQUITIES
SUPPORTED BY TAX REFORM AND
ACTIONS AND IT WAS A PERFECT
SETUP FOR FUELING SET OFF WITH
THE TRADE DISCUSSIONS YOU JUST
MENTIONED, THIS IS WHAT IS
HAPPENING HERE.
MARIA: ARE YOU WORRIED ABOUT
THE TRADE DISCUSSIONS, THE
POTENTIAL OF A TRADE WAR IS
THIS JUST NEGOTIATION AND PAR
FOR THE COURSE?
>> MY CLIENTS ARE WORRIED AND
PARTICULARLY THE ONES WHO ARE
IMPORTING, EXPORTING, MY CLIENT
BASE IS MULTINATIONAL.
WE SPENT A LOT OF TIME INVITING
THEM.
IT HAS BEEN GOOD DIALOGUE.
FOR HEDGING, STRUCTURED
PROTECTION, FOR BEING ONE OF
THE LEAD HOUSES IN THE WORLD,
IT IS SOMETHING WE CAN ADVISE
WELL AS EQUIPPED TO SUPPORT
THEM IN TIMES OF UNCERTAINTY.
ON THE NEGOTIATIONS SITE I DO
BELIEVE HOPEFULLY THIS IS A
COMMERCIAL DISCUSSION AND THESE
AGREEMENTS HAVE BEEN IN
EXISTENCE A LONG TIME AND
HOPEFULLY END