Transcripts For BLOOMBERG Bloomberg Best 20171028

Too big. We are in a whole different environment. David earnings reports from banks in Silicon Valley in the spotlight. We are swimming upstream. Market shares are hanging in there, given what the other banks have done. David it is all straight ahead on bloomberg best. Hello, and welcome. Im david gura. This is bloomberg best, your weekly review of the most important analysis and interviews from around the world. Lets begin with a look at the top headlines. On monday, the results of at snap election in japan delivered a boost to the ruling party. Prime minister shinzo abes gamble on an election may have paid off. A chance to lead japan through to 2021. He comes out of this with a stronger mandate. What does that mean for abenomics . It was a victory based on one crumbling opposition. Two, a referendum on abenomics. We have unemployment below 3 . The stock market this up in areas we have not seen since the 1990s. We will likely see a continuation of abenomics, as well as mr. Abes plans to hike that consumption tax, but not until 2019. And also, slow moves to revise the constitution. What are the most significant ramifications of the ruling coalitions win here . It has to be a green light for the Stimulus Program in japan. The abenomics. It would be a green light for the bank of japan to carry on with their massive Asset Purchasing Program and a green light for abe to go ahead with that consumption tax increase steve just mentioned. The point being, he wants to raise taxes to tackle the deficit and improve education. We may also hear more calls for greater urgency in japan and pushing through structural reforms. Those will be the key challenges for mr. Abe going forward. Chinas communist party has approved a charter hearing under enshrining xi jinpings name under guiding principles. This is the clearest signal we have had up to this point that president xi is going to have a grip on the party, the government, and a china, well beyond 2022, possibly for decades beyond. Esoteric archaicar , form of wording that is put into the charter, but it is consequential. They are saying president xis characteristics are going to be enshrined in the constitution, putting him on the same level in terms of respect as mao zedong. It is very significant. President xi has amassed more power than any leader in a generation. That opens up the prospect that the president can stay in office beyond 2022. The politics of it are clear. He has consolidated the most power it is not clear where he will go on the economy agenda. Will he be emboldened to shakeup the state owned sector . Will he go hard on the economy . If you look at the personality promoted today, there were some its a little bit of as we work. Ecb president mario draghi trying to head for the exit, but draghi emphasizing the central bank will proceed with caution. The decision today is for an openended program and it will not stop suddenly. It is not going to stop suddenly. Matt we got exactly what the market had expected. 30 billion euros in bond purchases per month from january through september. That is a cut of half of where we are now. Also, the ecb maintaining to hold Interest Rates where they are well past the end of qe if draghi chooses to end qe at that point. Of stuck by the technicals. He could have had an earlier stop to it. Hes given himself the flux flexibility to carry on for longer and possibly increase if needed. Jonathan those thirdquarter results showing trade revenue fell more than expected of the two institutions exceeding the incline. It is a difficult revenue environment. We are swimming upstream and a market that has seen shrinking revenues, particularly Financial Market revenues. Market shares held in their, re, given what other banks have done. We expect a return to normal levels of volatility and a recovery in market revenues in the Investment Banking space. You are putting more risk on at a fairly unknown period in history. Barclays have given us a new range, they have lowered their ot target. Deutsche bank is doing a good job on costs. The motion is adopted. The house has adopted the Senate Budget resolution. This unlocks a fasttrack process to achieve republican goal to cut taxes by the end of the year. Republicans in the house will unveil their official tax proposal on november 1. That is next week. Will havelater, they the markup they are on pace for tax relief by the end of the year. That is good news for investors, but how they will pay for it remains to be seen. Is it realistic to think we will get done by december 31 . We have a 1000 page bill coming. We have 9500 registered lobbyists in d. C. And we have a ticking clock in the background. My sense here is that we are going to get a bill on november 1 and they will start a markup the following week, but the markup in the house will continue into markup will continue into december. At the earliest. Then we could get actual passage at the end of the first quarter, beginning of Second Quarter next year. In barcelona, catalan lawmakers voted for an independent republic. The parliament, the results of the elections on the 27th of september, has taken a longawaited and long fought for ward step. The great majority of politicians fulfilled a mandate, which was validated by elections. In madrid the Spanish Senate , voted to revoke catalonian autonomy. Bonds dropped, pushing yields to their widest in a week. We know that he came under a lot of pressure to do this and madrid will get power over the region starting with the Catalan Government. The question mark is with what the response we will get from catalonia. Madrid says this has to stop. What are we going to get in backlash over article 155 . The Catalan Government is claiming they dont have control over the administration. They have not established the Authority Takes precedence over the spanish state. The signals over the last few days have been that they want to make it a gradual takeover of catalonia. The byword throughout the process is that we should be a promotional response. They want to avoid the violent scenes they saw in october. They need to restore their authority and quickly. David still ahead as we review the week, David Solomon explains how Goldman Sachs is building up its business in europe. Plus, a conversation with ray dalio. Up next, more of the top business headlines. Carlyle Group Announces a secession plan and they put some thought into it. Having this inside outside balance is interesting. David this is bloomberg. David this is bloomberg best. Im david gura. Lets continue our mobile tour global tour in europe, where officials are having trouble establishing Common Ground in brexit negotiations. U. K. Chancellor Philip Hammond wrapping up testimony in the house of commons after the European Council president revised the idea of the uks staying in the eu. While speaking to matters of the best members of the parliament. The outcome was fully in the u ks hands. They think the cabinet is divided on what the u. K. Once as wants as a future trading relationship with the eu and the eu knows until they decide, they cant come to an agreement. When they talk about no brexit or no deal, does it mean everything will fall apart and the u. K. Will leave the eu messily . Or, does he mean that somehow things will get reversed and the u. K. Will stay after all . Both of those things would need a lot falling into place. Nobody knows how this is going to end. Excessive speed in the disposal of nonperforming loans could derail the recovery in italys Financial System according to the countrys finance minister. This is vital for our all economies, including the italian economy. My point is that we must be careful in getting the speed right, the timing right. If we do it too fast, we could derail the system. Which is now gaining steam. It is interesting to hear him talking about the speed of dispersals. It occurs to me that that is not the actual issue. The issue is that it is marked at a price way above it would trade in the market. In order for the banks to dispose of these loans, they have to accept a price, or they need to find a buyer will and to pay over the market price. The only buyer that would be able or willing to do that is the state and unfortunately, that is in breach of the rules of the european union. The struggling commodity trader agreed to sell its oil. It if we knew it use a medical analogy, is it off lifesupport . Where is it, using medical analogies . I would say it is still on life support. We have had clarity on key things. The number one thing is the extension on the waiver. That is critical. They have sold of the oil unit, but there are so many conditions attached. How much is going to come out of it in terms of cash . There is an interest in certain bits. It is not entirely clear what it the trading business is worth. There are a lot of question marks around it. It helps cement its edition as a position as a World Class Oil trader. Ciscos spree continues. In aapped up broadsoft deal worth 1. 9 billion, expanding software and of the cloud, a huge priority for the company. Talk to us about the terms of the company. It is a reasonably large premium. If you look at its prospect in august, it is a 28 premium, a fairly healthy one for the sector. It is not a huge deal by cisco standards, but it is there 200 200th takeover. A phenomenal number. We usually see cisco do smaller numbers. From what we understand, it was a competitive process. There were other people interested in the asset and that is reflected in a decent premium cisco ended up paying. Apples iphone x hit stores next week but a new report highlights the struggles surrounding the rollout according to japans nikkei. Initial shipments will only be around half of what was expected this year after it has been battling technical issues. There has been news, we heard about the display technology about a year ago, that we dug into the story about the 3d sensor. That is the biggest bottleneck right now. They cant get enough components. They are the people making the modules that go into the phone. They admitted it would cause supply constraints. There is increasing concerns that they would be slightly worse than a lunch quarter. Sales than a launch quarter. Carlyle announced a secession plan. They will become coceos january 1. What will this mean for carlyle . You have this pair of guys, one of whom has been at the firm his entire adult life. He joined in the mid1990s and seen the growth of carlyle since its inception in the late 1980s. Lee is a rare bird because he did most of his work at another firm. He was there for 25 years before he joined carlyle a few years ago. Having this inside, outside balance is interesting. Indias state run banks, the government pledged to inject 32 billion of capital into the lenders. It is catching everybody by surprise but making a rare headline. They are increasing the efficient capital by 10 fold has caught almost everybody by surprise. They have already said it is a positive move. They have 10 billion in recapitalization. This will help them clear the Balance Sheets and add more loans to the economy, which will help reviving the economy and profitability in the next couple of years. The sec says firms can accept Research Payments from eu clients. , 30 monthsgulator reprieve to u. S. Firms coming into effect on january. This is what wall street brokerages have been pushing for in washington. They got the sec, wall streets made regulator to step in and tell them they are able to accept Research Payments, as will be required under european rules, for the european clients, and it will not have to register as investment advisors. If they had to take on that label, it would heap on a bunch of additional requirements and it could be costly. They did not want to do that. They are getting a reprieve today and im sure a lot of these big brokerages are happy. Two and a half years from now, we dont know. They will open it up to public comment. We will see. President trump is leaning toward appointing Jerome Powell to be the next chairman of the fed. This, according to three people familiar with the matter. We will hear for definite before november 3, according to the president himself. He is leaving for asia that day. What will he bring to the fed that janet yellen hasnt got . What would he bring that janet yellen hasnt brought . Probably nothing. He is not an economist, so he will be following the policies that were set in place, and then be influenced by the staff or by anybody who is appointed as vice chair or who would replace yellen if she decides to leave the board. She can stay on, if she wants. Probably, you would see it as yellenlight. He keeps wall street on the same course. You dont like to deviate and maybe that is what trump is thinking. David welcome back to bloomberg best. Im david gura. Goldman sachs president David Solomon sees Great Potential in his firm to expand their business in europe. He discussed those opportunities in detail with my colleague, alix steel. There are places we can add market share and one of the things you know is that a portion of our Growth Initiative is focused on places receive where we see market share opportunities in equities, or theres gaps in places where by adding market resources, we can influence market share. We have strong market share across europe. We have good market share in sales and trading equity business and Investment Management business. But there are places we can invest and improve our market share and position. As a Leadership Group across the organization, we are focused on making those investments and making sure we are creating growth opportunities. It is in banking, too. One of the things in banking we have looked at is that we have broad market share and abroad footprint, but there are places we can grow that footprint. As market cap expense, there are expands, there are more that could be under the radar screen. We are suddenly they are suddenly 1 billion type companies. We are looking at our footprint and our Investment Management business. We invest in that business and private wealth. You brought up lending. You unveiled this good plan and it seems you are focused on that. Analysts are looking for how they judge it. If i am a Market Participant and i look at goldman and say, are you delivering on your promises, what do i look at . There are Different Things you can look at. As you step back and look at the lending business, it is a broad term and touches a lot of activities we engage in. On one hand, we have made a push to broaden our Debt Capital Markets capability and we significantly improved our market share. Year at ourthis performance, it is a record for the firm. That comes with focus. That is a form of lending. We have corporate clients making acquisitions. They are looking to purchase companies in the market. We are committing capital, we are lending into them to support the business. That means revenue. Revenue is a metric. One of the things i know you are aware of, a consumer platform. It is a new area of expansion for us. This is a business where customers who have Credit Card Debt can manage that debt more effectively with a fixed rate, no fee loan. We are excited about the product. We have been rolling that product out. We are in the early stage. We are on track to have 200 billion in loans, but that is a business that will be a nice contributor to the firm over time. There will be more as the business progresses. David coming up on bloomberg best, you want earnings reports . Weve got earnings reports. A very busy week. Plus, conversations with a starstudded conference in saudi arabia. Plenty just ahead. I look at the 2017, 2018 very differently than how we perceived 2007, 2008, 2009. David this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. I think the boj will be importing some reflation from the rest of the world in the next year and that will help them as they comfortably stay on hold with their yield control target as it is. See boj policy adapting to what has been a growing economy . Slight growth. Inflation is stubbornly low at. 7 . That is the point. We have seen there is a difficult process in using growth as a tool to get out of the deflationary psychology japan has been in. If we are right, we are going to be sitting here a year from now with core inflation below 1 . The boj is looking for it to get that, andlong after that will be a story that says the boj will have to stay here and hold its policy stands for a long time, even in the face of what we expect to be good growth. We dont know how far it will run before you jumpstart the economy in terms of reflationary dynamics, but it seems to take more than a year even with good growth. David that was jpmorgan chief kasmaneconomist bruce in an exclusive interview stephen engle. An exclusive interview with several of those influential guests sat down with interviews with bloomberg television. There are some european challenges which require european responses, like migration, security, growth, and jobs. There are National Responses which are insufficient, and we need to integrate them with a higher policy. Yousef so there is more work that needs to be done to slow down the trend we are seeing . These are structural problems. And there is a window of opportunity to deal with them, because the economy is growing at a healthy rate and there is lots of job creation. We must reform our institutions and make them more flexible. Yousef lets talk about the italian economy. Growth projections are at 1. 5 . Is there a chance it could get stronger . It could be stronger. There are upside risks and in the coming two years. Certainly there are in our forecast. Yousef how much more do you think the economy could grow . If all the reforms were implemented and if all the resources mobilized for Public Investment were fully spent, we can go up to 2 . A decade ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested that the rising amount of debt could trigger the next crisis , and, of course, he was spot on. Are we at that point yet with the accumulation of debt . Especially in markets that are not as visible as they used be to financial regulators . That accumulation of debt is getting to a point where we could see another crisis . I look at 2017, 2018 very differently than how we perceived 2007, 2008, 2009. The Financial Institutions were so much more less transparent in the 20072008 period. Financial institutions have had an enormous improvement in Balance Sheets and we should take comfort in that. People are using leverage and there are investors and institutions that buy longterm assets with shortterm liabilities, yes you should scratch your head over that, but that is an institutional issue. I dont think that is a market risk, but more an investor risk. Blackstone has intentions, plans of doubling its assets in the next five years. Roughly 8 billion. They have doubled their assets over the past five years. They are planning to continue on the same pace of growth even though they have become so much larger. Where does carlyle find itself in five years . Our firm is in very good shape. Our quality of investments will continue to be good, but i do not have a number. It is possible by son will blackstone will become a trillion dollar firm. Is it possible for an asset manager to be too big . Im not sure. People thought 20 million was too big. I dont think 1 trillion is too big. I dont know what blackstone or carlyle will be five years or 10 years from now, but i dont know if it will be too big. Blackrock has 6 trillion under management. Who would have thought that would happen. It is hard to say. In principle . We are very ambitious and we think we can do a good job for our investors. We think blackstone will do a good job for their investors, but we dont have any limits. David not every wall street superstar was in wall street this week. Ray dalio paid a visit to bloomberg surveillance and shared his insights on the market and economy. From 2008 until 2017, we were in a certain type of environment, and that environment was one in which there was a pushing of Interest Rates down to the point of creating negative Interest Rates with a positive carry by doing quantitative easing to push money into the system. 2017 is the transition of an ending of that around the world , and we are entering a new era where there is going to be a raising of Interest Rates and reducing of quantitative easing. That action produced significantly bad real Interest Rates. 10 year real Interest Rates are about. 5 . Next to nothing. Next to nothing. And the brief even inflation rate for the 10 year is about 10. 8 . Those numbers are low because of repression to get the economy to do that. We are in a transition. That is the equivalent of the late stage of a cycle. Tightening has become progressively more concerning, because as you move along, they are more difficult to get perfect. How much does personality matter at the Federal Reserve . What does the next fed chair need to focus on when it comes to the health of the economy . It can matter a lot. We have the pace of fed policy, the pace of an unwinding of the balance sheet. I look at those numbers, and i dont think they will continue that pace, because it is the equivalent of 2. 5 gdp. If you have that happening at the same time as increasing budget deficits, we could have an increase of 1. 5 gdp, a big number in the supply demand of bonds. There will be that amount of effective selling and credit by the Federal Reserve. Are you predicting with the tax reform opposed as douglas keegan talks about, going to six point 5. 6 or 7 gdp . We will almost certainly have a significant move in that direction. You can even see it had market see it in the market action. On days where it looks like they are making it more progress, making less progress there is going to be a larger deficit which means more selling of bonds. At the same time, there is more selling of bonds by the Federal Reserve. I think they will be cautious in this, but when you are talking about this part of the cycle, it is very delicate. David you are watching bloomberg best. Im david gura. Another week, another round of corporate earnings reports. A blowout earnings quarter for big tech. Amazon, alphabet, intel, and microsoft beat wall street estimates. People wondered how the whole Foods Acquisition would fare for amazon, and it looked like it fared favorably. It was mostly about how much amazon would spend on it. Investors i spoke with were pleased amazon made money. They had integration plus one time. And that was an indication they had integration plus one time, and that was an indication it would not be as costly out of the gate has some of them feared. Walmart is stepping up the competition. Is there any signs it is making a dent . The message to investors there is, walmart might be doing a lot and innovating a lot and grabbing a lot of headlines, but amazons Growth Continues to roar along strong, and they are projecting a very strong holiday quarter. 47 paid click growth is extraordinary for a company this gigantic, and a company that feels like it has been on the for yearsn gigantic in our life. Going up against facebook and amazon, nearly 50 growth is extraordinary. It is a global phenomenon and the search part of our daily usage of the internet remains robust even though we are spending more time on amazon and facebook. Function isrch 50 increase in clicks. The pricing is down doubledigits. When you put that altogether, it turns out topline growth for alphabet which is extraordinary. Microsoft pushed into Cloudbased Software seems to be paying off. What does this say about the rest of the earnings season . Microsoft has a history in the pcbased computing along with intel and other companies. It has struggled to move beyond that in a number of cases. Some of the years have been rough. They were able to show that they can shift customers over to the broadbased services they have , and it signals more broadly that investors are getting some positive signs as there were concerns about evaluations of some of these tech companies. They are now getting data points to reassure them there is growth to go in these earnings. Baidu shares under pressure under the extended session after sales forecasts fell shy of estimates. This coming at a crucial time for the company as they attempt to alter course after a difficult 2016. Baidu hast to find a new baidu has to find a new place to make money from. It is putting its eggs into Artificial Intelligence being the future. That is where it is trying to convince shareholders to stay the course and dont sell shares just yet. We can actually make this into something worth doing. Berth has rebounded in the Third Quarter while investment units soared. It is too early to talk about our capital return policy, but i mentioned in the past, we reached capital levels needed to fulfill regulatory requirements for 2020. Capital buildup is done. We are looking to continue to implement our progressive policy on our cash dividend, and eventually complement it with capital returns to share buyback, but it is too early to talk about it. We are coming from a disappointment last quarter. Investors were reassured to see what drove capital lower last quarter was not repeated. We have seen a reversal above expectations. At this point, that is what investors have been looking for , for the model to now deliver the higher dividends they are not getting from the banks. General motors released its earnings over 30 minutes ago, and it Beat Estimates. You beat revenue and earnings per share. That is a nice story. What is the real story here . There is some softness in the vehicle market. The story from our the thirde was that quarter was very much unplanned. When you look at production downtime, we had and production being down 26 . Within that, we generated solid results and enterpriselevel, 2. 5 billion profit. In north america, 2. 1 billion and 8. 3 margins which demonstrates the resilience of the business, even in a quarter where production was down 26 . Importantly, we took a big step toward getting our dealer inventory in line as we go through Fourth Quarter and we now expect our dealer inventory at the end of 2017 will be lower than 2016, which will set us up for a good start in 2018. Ford announced its thirdquarter earnings, beating estimates on revenue and earnings per share. How much is topline growth and how much is cost control . The vast majority is good cost management. We have had over 7 million of good news in terms of cost, inclusive of 300 million in commodity costs. The team did a good job in terms of delivering strong cost performance. It was encouraging, because it was among many aspects of cost and across other important parts of our business. We see that as a down payment on our efforts to improve the overall fitness of the company. Boeing, the big performing stock on the year. It delivered some solid results as well. The forecast is better. What is driving it . The big concern with boeing is that, as they put their legacy plane off the market and shifted to newer production, bigger jets they were putting out, people were worried we would see a hit to cash. Whenever you launch a new plan, that requires a significant amount of upfront. That is not happening, and boeing has shown significantly better cash flow than what investors were expecting. That is what is getting people optimism. They have also increased production for their newest jet, and that is making people more comfortable with the fact this Strong Aerospace cycle will continue to be strong. A big Third Quarter miss for chipotle. Eps came in at . 69, well below estimates. Hurricanes and a hacker attack had an impact. Virus ino had the noro virginia. That is a big part of what happened. They also got it down for the Fourth Quarter now based on their four year guidance. They are saying it will drop 1 . Part of it they are planning on the hurricanes in florida. That is below the 2 we were expecting. The virus is having an impact and that is what we thought, it would delay the recovery moving forward. One investor getting burned is billionaire bill ackman. He has been there since december 2016, and we have seen a lot of turnover in management and directional changes. He has been a part of all that. He has been working with the board to implement those changes. I think he believes he is affecting some change there. Some permanent structural changes that will improve the direction of the company. The party reported earnings that Beat Estimates. They reconfirmed its outlets since 2017. What went right for you in the quarter . I feel good about the quarter. Our medicines division, we have a couple of new drugs firing on all cylinders. Our generics business, despite competitive and pricing pressures in the u. S. , also grew. The best part about the quarter was that our outcome business grew sales 7 and profit almost 20 . I feel good about where we are. We are positioned as a focused company. We have a strong pipeline for the future. Eli lilly reported its thirdquarter earnings. They Beat Estimates on both earnings per share and revenue. Cked up their forecast of earnings for the rest of the year. The performance was very strong coming driven by new products. Top line growth at 9 , driving 90 growth. We kept productivity in place and only Group Operating expenses 3 . This is the story of pipeline watching. Products lost in 2017 are more than 20 of our revenue base and growing rapidly. That is giving us chairman tos financial performance. We are able to reinvest in the next wave of innovation and deliver value to the shareholders. Big oil dealt with thirdquarter earnings. Exxon mobil topping estimates higher while chevron posted a miss. Most of the majors had a dark time in september. They are jettisoning their nonperforming assets and turning back towards giving shareholders value by delivering profitability and not delivering. One of those is exxon. They killed it on numbers but capexre also increasing which is against the trend. France total says the balance between crude, supply and demand is finally dissipating as opposed to the highest earnings from pumping oil and gas in two years. Italys has production will rise to a sevenyear high later this year. That the by to tell was a slight miss. Nobody is excited about the numbers but there is an actual story performing. They are reaping the rewards of fairly conservative else sheets, cutting back on spending, delaying projects, and is now feeding through to the bottom line. We hopped back into the bloomberg, and we take a look at the relative valuation. Even after the huge move trading at 11 discount, also trading at an 18 discount. Some investors like to look at that metric. The stock is really a value name on most metrics, trading toward historical lows. David there are some 30,000 functions on the bloomberg, and we enjoy showing you our favorites on bloomberg television. Maybe they will become your favorites. Here is one you will find useful. Quic go. Here is a quick take from this week. There is a global trend taking place, a lower percentage of people are smoking cigarettes. This has forced Tobacco Companies to create products to keep them profitable. The answer might come in the form of an alternative to smoking, vaping. Does that come with its own issues . A chinese pharmacist and smoker developed the ecigarette in 2003. The device uses no tobacco. The battery heats nicotine liquid and exhales a vapor. Another alternative uses tobacco, that it is heated to a much lower temperature than a regular cigarette. They are said to have a taste traditional to cigarettes. A boost better than ecigarettes. In both devices, there is no burning tobacco. Thus, no tar. The u. S. Fda embraced invading vaping as a way for smokers to quit. The market for which is estimated at 7 billion a year and growing rapidly. Here is the argument. Some Health Groups say vaping products might be a gateway for kids to smoke cigarettes. A Government Survey showed ecigarette usage among teenagers increasing before a slight drop in 2011. The rise of counterbalance by a drop of use in conventional tobacco products. According to a 2013 study, they think might be as effective for as effective as nicotine patches for smokers trying to quit. It is too new to be a significant body of research on longterm health effects, but a review of the evidence concluded that vaping is about 95 less harmful than smoking. It is early to say, but they think might be the breath of fresh air smokers have been looking for. David that was just one of the many quick takes you can find on the bloomberg. You can also find them on bloomberg. Com with the latest Bloomberg Business news and analysis 24 hours a day. That will be all for bloomberg best this week. Thank you for watching. Im david gura. This is bloomberg. David you have had to follow bill gates and steve ballmer, two legendary figures. Satya look, clear message was dont try to be like us. David did steve say if you do this well, we will be happy . Has having empathy made you a better ceo . Satya my pursuit is the growing sense of empathy for people around me. David do you get a standing ovation for what you have done . Satya i have a lot of people saying, hey, come and fix my computer. [laughter] would you fix your tie, please . David well, people wouldnt recognize me if my tie was fixed, but ok. Just leave it this way. Alright