YESTERDAY BEFORE APPEARING IN
FRONT OF LOSSES INVESTORS
WEIGHING HE LATEST ROUND OF
EARNINGS TRADE NEGOTIATIONS
WITH CHINA, PRESIDENT TRUMP'S
ECONOMIC TEAM IS SET TO ARRIVE
IN BEIJING TOMORROW.
TO HASH OUT TRADE ISSUES WITH
CHINESE COUNTERPARTS, THE
PRESIDENT TWEETING THIS AHEAD
OF THE TRIP, QUOTE DELEGATION
HEADED TO CHINA, TO BEGIN
TALKS ON THE MASSIVE TRADE
DEFICIT THAT HAS BEEN CREATED
WITH OUR COUNTRY.
VERY MUCH LIKELY NORTH KOREA
THIS SHOULD HAVE BEEN FIXED
YEARS AGO, NOT NOW.
SAME WITH OTHER COUNTRIES AND
NAFTA BUT IT WILL ALL GET
DONE, GREAT POTENTIAL FOR USA
THAT FROM THE PRESIDENT THIS
MORNING, JOINING ME RIGHT NOW
TO WEIGH IN ON ALL FOUNDER
CHIEF INVESTMENT OFFICER, KYLE
BASS, GOOD TO SEE YOU THANKS
FOR JOINING US THIS MORNING.
>> GOOD TO SEE YOU, TOO, MARIA
HOW ARE YOU.
MARIA: GOOD YOU HAVE BEEN
INVESTING AND YOU HAVE STUDIED
CHINA AND HONG KONG FOR A LONG
TIME.
GIVE YOUR EXPECTATIONS FOR
THESE TRADE TALKS.
>> YOU KNOW, WHAT PRESIDENT
TRUMP AND TEAM ARE DOING, IS
SOMETHING THAT REALLY SHOULD
HAVE BEEN DONE A LONG TIME AGO
I AGREE WITH HIS ASSESSMENT.
OUR KIND OF OPEN-DOOR POLICY
WITH CHINA BEGAN WITH NIXON
KISSINGER ACCELERATED UNDER
REAGAN AND CLINTON, AND EVEN
BUSH AND OBAMA, THIS IS A
NONPARTISAN ARGUMENT BUT OUR
COUNTRY HAS TO TACKLE WE ARE
TRANSFERRING, 450 BILLION PLUS
OF OUR WEALTH TO CHINA EVERY
YEAR, AND WE JUST NEED TO
LEVEL IF PLAYING FIELD, AND
WHAT IS GOING ON OVER THERE,
BETWEEN STAFF AND TRADE HAS TO
BE STOPPED I APPLAUD EFFORTS.
MARIA: THIS IS AN IMPORTANT
STORY I FEEL LIKE EVERYBODY
GETS THIS, BECAUSE WE TO ME,
THAT CHINA HAS BEEN STEALING
INTELLECTUAL PROPERTY FOR
YEARS, AND THE OTHER THING
DOING KYLE TRANSFERS
TECHNOLOGY INVOLVED IN 10%
VENTURE CAPITAL INVEST IN
COMPANIES THAT HAVE
INNOVATIONS A.I. ROBOTICS THEN
TRANSFER TECHNOLOGY TO CHINESE
COMPANIES ULTIMATELY, BEAT US
ON OUR OWN GAME THAT IS ONE OF
THE REASONS YOU WERE AGAINST A
BROADCOM QUALCOMM DEAL BECAUSE
COMPANIES ARE THE UNDER
PININGS OF IMPORTANT
INTELLIGENT IN THE
INTELLIGENT IN TH
INTELLIGENT TE TH
INTELLIGENT TECHH
INTELLIGENT TECHNO
INTELLIGENT TECHNOLO
INTELLIGENT TECHNOLOGY
INTELLIGENT TECHNOLOGY I
INTELLIGENT TECHNOLOGY IN
INTELLIGENT TECHNOLOGY IN TH
INTELLIGENT TECHNOLOGY IN THE
UNITED STATES.
>> RIGHT CHINA PLAYS A LONG
GAME WE PLAYDALE QUARTERLY
THEY PLAY GAMES OVER DECADES,
AND EVEN CENTURIES I THINK
THAT WE HAVE TO START THINKING
A LITTLE BIT MORE
STRATEGICALLY, I SEE THIS
MORNING, WHERE APPLE UP TIM
TOOK SAYING I AM VERY
OPTIMISTIC ABOUT CHINA.
S TRADE HE RELATIONS, OF
COURSE, HE IS HOPES TO SELL
MORE IPHONES IN CHINA BUT TIM
COCK IS NOT IN CHARGE OF OUR
NATIONAL SECURITY DEFINITELY
NOT IN CHARGE OF OUR TRADE
POLICY, SO YOU HAVE THESE
BIFURCATIONS BETWEEN BUSINESS
HEADS AND PEOPLE THAT RUN OUR
COUNTRY, AND I THINK PEOPLE
HAVE TO UNDERSTAND THAT THESE
AGREEMENTS ARE NOT ALL TRULY
BASED ON ECONOMICS EARNINGS
PER SHARE THESE AGREEMENTS
ABOUT OUR SECURITY LONG RUN I
THINK THE PRESS NARRATIVE IS A
HARD ONE TO TELL, IF YOU ARE
IN TRUMP ADMINISTRATION, AND I
THINK, THE NARRATIVE STARTING
TO EMERGE THAT THIS IS NOT ALL
ABOUT, GETTING AN ECONOMIST ON
THE LINE SAYING WELL GOOD OR
BAD?
FOR OUR ECONOMY.
>> SOMETHING THAT CAN BE GOOD
FRONT END GIVING AWAY
TECHNOLOGY INTELLECTUAL
PROPERTY ON BACK END IS
TERRIBLE, AND WE ARE STARTING
TO REALIZE THAT, THE CHINESE
ARE STARTING TO PLAY GAMES, IN
-- IN SILICON VALLEY, WHEREBY
STARTING TO INVEST THROUGH
CHINESE STATE OWNED VC'S U.S.
TECHNOLOGY COMPANIES TO BLOCK
ABILITY TO SELL WARES TO U.S.
GOVERNMENT AN INCREDIBLE
OFFENSE HOPEFUL OUR DEFENSE
AND INTELLIGENCE AGENCIES MOVE
FORWARD ON THIS I FEEL WE ARE
FINALLY MOVING IN THE RIGHT
DIRECTION.
MARIA: WHY I KNOW YOU WEREN'T
SO WORRIED LIKE MANY OTHER
PEOPLE WHO ON FIRE ABOUT
ALUMINUM AND STEEL TARIFFS YOU
SAID LOOK, THE BIGGER ISSUE IS
CHINA THAT IS WHAT WE NEED TO
GET TO, WHAT ARE YOUR THOUGHTS
ABOUT MARKETS, BROADER MARKETS
HERE, AND THE FACT THAT
MARKETS GET REALLY ROILED WHEN
WE START THINKING THERE IS A
SUGGEST THAT THERE WOULD BE
ISSUES AROUND TRADE?
>> YOU KNOW, I ANY IF YOU LOOK
AT THE MARKETS' REACTIONS TO
THE VARIOUS IMPOSITIONS OF
TARIFFS BY TRUMP
ADMINISTRATION HOW LONG HAVE
THEY LASTED TWO OR THREE DAYS
TWO OR THREE TRADING DAYS THE
MARKET FORGETS ABOUT IT MARKET
COMES BACK UP WHEN YOU LOOK AT
GLOBAL GDP, YOU LOOK AT THE
GROWTH IN HE EMERGING MARKETS
IN EMERGING ASIA, EVERYTHING
LOOKS FINE TODAY.
THE 800-POUND GORILLA IN THE
ROOM IS THE CONSTRUCT OF
CHINA'S CREDIT MARKETS, THEY
ARE APPROACHING 50 TRILLION
DOLLARS WORTH, OF -- OF BANK
ASSETS, ON A GDP OF 12.
SO THE REAL RISK TO THE WORLD
IS CHINA, FINALLY HAVING KEEP
UPPANCE IN BANKING SECTOR I
FIND IT COMICAL THAT CHINA IS
NOW OPENING ITSELF TO FURTHER
FOREIGN INVESTMENT IN BANKS,
OF COURSE,.
YOU KNOW, YOU THIS I ABOUT
ASPIRED
ASPIRE
SPIRE
SPIDER SAYING TO FLY ONCE
SPIDER SAYING TO FLY ONC
SPIDER SAYING TO FLY RUC
SPIDER SAYING TO FLY RUIN
SPIDER SAYING TO FLY RUINED
CREDIT SYSTEM --
>> WHAT IS YOUR POINT
ALLOCATING INSTITUTIONAL
CLIENTS HOW ALLOCATING CAPITAL
FOR THEM RIGHT NOW.
>> FROM MY PERSPECTIVE, THERE
ARE FEW BRIGHT SPOTS IN THE
WORLD.
I THINK SOUTHERN EUROPE IS
FINALLY COMING OUT OF KIND OF
A EUROPEAN CRISIS THAT, OF
COURSE -- SHORTER AFTER
FINANCIAL CRISIS, WE HAVE
SPENT A LOT OF TIME FOCUSING
ON GREECE, SO WE HAVE A LOT OF
ASSETS ALLOCATED TO GREECE
HAVE GONE THROUGH GREAT DID HE
DEPRESSION YEARS THERE ARE
BRIGHT SPOTS THE PLACES I
THINK WE NEED TO BE FOCUSED ON
TRADE RELATIONS WITH CHINA
SUMMIT WITH KIM JONG-UN I
THINK SOMETHING INFER COVERED
IN THE MEDIA IS JULY 1 WE'RE
GOING TO HAVE MEXICAN
ELECTION, YOU KNOW, YOU HAVE A
GUY COMING IN, THAT IS LEADING
IN THE POLLS, THAT HAS
CASTRO SORRY CASTRO TO MANDELA
SOMEWHAT BETWEEN CASTRO AND
CHAVEZ, HE IS A CONCEIT NUT
JOB I THINK GOING TO WIN
ELECTION THAT IS IS IN JULY
WHEN WE TALK ABOUT,
RENEGOTIATING NAFTA NAFTA IS A
COMPLETE BALL IN THE AIR IN
NEXT TWO OR THREE MONTHS, AND
I THINK THAT IS A REAL RISK TO
I THINK, OF COURSE, I AM IN
TEXAS SO YOU KNOW, OUR TRADE
NEGOTIATIONS TRADE
RELATIONSHIPS WITH MEXICO ARE
SOMETHING PEOPLE REALLY NEED
TO BE FOCUSED ON.
AND MAYBE BEING CAREFUL
ALLOCATING MONEY TO LATITUDEIN
AMERICA AT CURRENT MOMENT.
>> GOOD POINT WHY, THE
PRESIDENT WANTS A NEW NAFTA
DEAL IN PLACE WITHIN NEXT TWO
WEEKS, FROM WHAT I AM HEARING
WE ACTUALLY COULD SEE THAT IF
WE WERE TO GET NEW DEAL IN
PLACE BEFORE ELECTIONS JULY 1
LET ME ASK ABOUT TESLA
REPORTING AFTER A CLOSE
TONIGHT NEGATIVE HEADLINES ON
COMPANY RECENTLY KYLE THAT
THEY BURNED MORE CASH THAN
THEY DO FUEL.
>> LAUGH -- SO LET ME FIRST
STATE BY SAYING I LOVE THE
PRODUCT, ACTUALLY, WE HAVE
INVESTED IN TWO OF THEM, AND
THEREL THEY ARE A LOT OF FUN
TO DRIVE I THINK ELON MUSK IS
A VISIONARY.
MARIA: YES.
>> TO BE PRAGMATIC DEEPLY
ANALYTICAL ABOUT TESLA BALANCE
SHEET I HAVE NO IDEA HOW
STATEMENT HE MADE RECENTLY
PUBLICLY CAN POSSIBLY BE TRUE,
MEANING THEY DON'T NEED TO
RAISE CAPITAL, THIS YEAR.
I THINK THAT STATEMENT IS
GOING TO PROVE TO BE FALSE I
THINK IF SERIES WITH ROLLING
OUT THE BIG TRUCK AND TESLA
ROADSTER, THAT THEY ARE GOING
TO NEED TO RAISE TWO OR THREE
BILLION DOLLARS THIS YEAR,
THEN THE QUESTION IS WHAT DID
ELON SAY PUBLICLY IS THAT A