Is Corporate Investment's Inflection Point Near?

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Feb. 4 (Bloomberg) -- Richard Lesser, CEO at BGC, discusses growing business confidence in the global economy and the potential impact of emerging markets on Bloomberg Television’s “Bloomberg Surveillance.”

Two things.

There's a general higher level of optimism about the world economy.

The strength in the u.s., actually optimism about china in the mid term even though it might be a tougher year this year, continued concern about europe in the medium term.

Rich, with the markets declining the way they have, does that change strategy mans?

Does that change investment plans?

I don't think yet.

I think most companies are looking at a mid term horizon around strategies and investment planning.

I think we have to put this in context.

U.s. equities are up 30%. when you have a bump like that in a single year, the fact there's a correction.

Do people really think we can get through everything or is this going to shake them a little bit?

So, actually ended on a quite strong note in the u.s. i would say right now the confidence around the u.s. is pretty strong, at least from the business leaders i talked to around the world.

They look at the u.s. with low energy cost, good labor cost and flexibility, housing roughly and balance and a medium term outlook i think they feel pretty bullish on.

I think they look at the emerging markets, recognizing the volatility and the emerging markets will be high, probably due to the taper and partly due to their internal challenges.

Was there a sense that developed markets are more exposed to turmoil?

I think most companies view it the other way, they look at the relative growth rates, even with the uncertainties and realize they need to keep shifting their capabilities.

I think largely it's an investment outlook.

Then how do you respond to what we observed yesterday?

Going from 12 to 21. these are markets on the move.

Maybe the idea is that we're not used to taking losses?

Is there a new regime about how we respond to volatility?

What companies are responding to is where it is just extremely high and they have to separate how they operate in the near term from what they're investing for and in the medium term.

Right now companies look at a china or southeast asia or parts of latin america and say they need to be there and figure out how to win.

How do they change how they invest?

So, first they have to recognize that the business models need to be set to win in those markets.

I think what you see increasingly is not trying to export the developed world models into the emerging markets but to build the assets.

Sometimes it areas by market, whether that's really possible.

Sometimes by building more capabilities.

With a local culture, building local management teams.

Investing in leadership.

Building the capabilities.

Sounds like a new trans national organization.

We'll continue on through the hour.

Don't forget three days of jobs report beginning tomorrow as we culminate with a friday jobs report, 8:30 friday morning.

This text has been automatically generated. It may not be 100% accurate.


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