BACK OVER TO YOU.
MARIA: THANK YOU SO MUCH.
DICK GRASSO IS WITH US THIS
MORNING.
WE HAVE TO GET YOUR REACTION TO
HONG KONG OFFERING TO ACQUIRE
THE LONDON STOCK EXCHANGE FOR
$36.6 BILLION, DICK.
>> THAT'S A LOT OF MONEY.
BUT THERE IS A LOT OF MONEY IN
EXCHANGE THESE DAYS.
I THINK THAT HONG KONG HAS BEEN
VERY SUCCESSFUL BECAUSE IT'S INT
INTEGRATED BOTH ITS TRANSACTION
BUSINESS AND ITS CLEARANCE,
COMPARISON AND SETTLEMENT
BUSINESS.
I THINK THE ATTRACTIVENESS OF
LONDON WOULD PUT HONG KONG IN A
POSITION TO BE A 24 BY X MARKET.
36 OR $37 BILLION, THOUGH, IS A
VERY BIG PREMIUM AND I GUESS THE
WORK HAS BEEN DONE WHICH
SUGGESTS THERE ARE BOTH
SYNERGIES THAT CAN BE TAKEN OUT
AND GREAT CROSS-TRADING
OPPORTUNITIES.
YOU KNOW, HONG KONG HAS ALWAYS
BEEN A MARKET WITH A
CAPITALIZATION RIGHT UP THERE AT
THE TOP, TOP THREE OR TOP FOUR.
AND I THINK IT'S A LOGICAL MOVE
ON THEIR PART.
IT WILL BE INTERESTING TO SEE
WHAT LONDON'S REACTION IS.
YOU KNOW, THIS IS PROBABLY ONE
OF THOSE RARE MOMENTS WHERE WE
MAY SEE A REVERSE PAC MAN AGAIN.
WE HAVEN'T SEEN ONE IN A WHILE.
BUT LONDON MIGHT TURN AROUND AND
BID FOR HONG KONG TO MAKE IT
INTERESTING.
THE QUESTION BECOMES CAN YOU
MAKE MONEY, GIVEN THAT PREMIUM?
AND THE PREMIUM IS RICH BUT
THERE IS A LOT -- PARTICULARLY
IN LONDON ON THE BACK END THAT
CAN BE VERY PROFITABLE.
SO IT'S GOING TO BE INTERESTING
TO WATCH.
I'M CERTAIN THIS IS NOT THE
FINAL BID.
>> AS FAR AS THAT, THE HONG KONG
BID, THOUGH, YOU MENTIONED THE
RICH PREMIUM, IS THIS AN
ENDORSEMENT OF LONDON AS A
FINANCIAL CENTER, REGARDLESS OF
HOW THE BREXIT DEAL WORKS OUT OR
DOESN'T?
MARIA: THAT'S GOOD QUESTION.
>> IT'S AN EXCELLENT QUESTION.
I THINK THAT BREXIT IS KIND OF A
SIDE SHOW WITH RESPECT TO
EXCHANGES.
EXCHANGES CAN'T BE
COUNTRY-CENTRIC ANYMORE.
THAT'S WHY YOU SEE HONG KONG
BIDDING FOR LONDON.
LONDON HAS A TERRIFIC BUSINESS
AS IT IS, BUT IT ALSO HAS BEEN
-- IT PREDATES THE NEW YORK AND
THE AMERICAN MARKETS BY A COUPLE
HUNDRED YEARS.
LONDON HAS A GEOGRAPHIC
ADVANTAGE THAT THEY COULD BE,
TOGETHER WITH HONG KONG, A 24 BY
FIVE MARKET.
MARIA: IS THERE ANY RETANS
MARIA: IS THERE RNY RETANS
MARIA: IS THERE REL RETANS
MARIA: IS THERE RELUCETANS
MARIA: IS THERE RELUCTAANS
MARIA: IS THERE RELUCTANCS
MARIA: IS THERE RELUCTANCE IN
YOUR VIEW, GIVEN THE FACT WE'RE
WATCHING HONG KONG PUSH BACK ON
CHINA'S THOR
CHINA'S RHOR
CHINA'S RULR
CHINA'S RULE.
PEOPLE ARE PUSHING BACK ON CHINA
IN HONG KONG.
DO YOU THINK OF HONG KONG ANY
DIFFERENTLY THAN YOU DID YEARS
AGO?
I ALWAYS THOUGHT OF HONG KONG AS
THIS INTERNATIONAL FINANCE HUB,
EQUAL TO LONDON, EQUAL TO NEW
YORK.
IN RECENT MONTHS, MY OWN
PERCEPTION HAS CHANGED BECAUSE
OF THE CHINA POWER GRAB.
AND WE ONLY HAVE 28 YEARS LEFT,
RIGHT, JAMES, 50 YEAR PACT FROM
THE HANDOFF.
>> I THINK -- WELL, FIRST, MOST
IMPORTANTLY, HONG KONG DOESN'T
MAKE THIS BID WITHOUT BEIJING'S
APPROVAL.
OKAY.
SO YOU KNOW THAT BEIJING WAS
INVOLVED.
IT'S A WONDERFUL DIVERSIONARY
TACTIC.
WHETHER OR NOT THE DEAL ACTUALLY
HAPPENS, IT TAKES A LITTLE BIT
OF THE HEAT OFF BEIJING TO KNOW
OR TO SAY TO THE WORLD, HONG
KONG REALLY IS INDEPENDENT.
LOOK AT THE BID THEY MADE FOR
LONDON.
ON THE COMMERCIAL SIDE, THOUGH,
IT MAKES A LOT OF SENSE.
I MEAN, WHETHER IT'S HONG KONG
BUYING LONDON OR LONDON BUYING