Cameron Did Right Thing Going to China: Wilson

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Dec. 06 (Bloomberg) -- Nigel Wilson, Chief Executive Officer at Legal & General Group, discuses the U.K. economy, worldwide economic data and his subsequent investing strategy. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

When you look at what happens in 2014, how big a presence does the fed and the fed tapering and the possible story about rate hikes feature in your analysis?

Certainly a big risk but we are confident that more jobs will get created in the united states and in the u.k.. we have to create better jobs going forward as we develop a richer economic model.

There is more on investment for more on export than just consumption.

So your worldview is that the u.s. is growing nicely and that growth will continue.

Maybe a little bit slower than economists are expecting.

We are a bit more bullish on america.

America is the country of great innovation.

They have their entry policy finally sorted out which is very positive for the world economy as well.

There seems to be the argument -- they are talking about the fact that the normal run rate of unemployment, he is looking at that and going, we can fix that.

We cannot better paid jobs, more jobs, we can change the dynamic through innovation and thinking about the problems that we face.

How realistic is that?

What can we do with the unemployed men story on both sides of the atlantic?

I am having lunch with larry today.

I will carry on afterwards with him.

If i could just revert to the u.k. in the moment, we are note investing enough.

Investing has been very poor.

We are sitting on huge amounts of money.

Lots of people want to invest in u.k. plc.

The announcement earlier in the week, opening the doors to create higher-paying jobs.

We are creating very poorly paid jobs.

We have to create higher-paying jobs here in the u.k. and create real economic growth.

The u.s. has a similar problem.

Wages haven't risen for over 20 years.

We have been doing something's wrong.

Primarily a lack of investment in infrastructure and other areas.

We have exported to much of our capital expenditure to china.

China has 25% of the world capital investment but only 11% of the world gdp.

We have to rebalance that.

How big a risk is that?

People are talking about that as being the next financial crisis, when japan's poor investment story comes home to roost.

The chinese returns are very poor but i would never bet against the chinese economy.

Western economies have been doing that for 25 years and have been always wrong about it.

It is a miracle what they have achieved over there.

When you see it firsthand, you realize the huge energy and cleverness in the chinese of developing their economy.

We will get back to infrastructure and government in just a second.

What is it going to take for companies?

You're saying a lot of these big companies are still sitting on cash.

There must be catalysts.

What is it going to take to unlock this cash?

We have a regulatory environment and economic environment positive and stable.

The economic environment is one where we can see growth.

Not only in the u.k. at economy, but in the export markets.

The prime minister is doing the right thing by going to china.

We have a pathetic record in many of the fastest-growing economies in the world in terms of export.

We have no interest in those economies for delivering exports.

That is a primary risk to the u.k. economy.

He haven't got enough export infrastructure.

The government has to play a more positive role in developing the infrastructure around the world.

Let's talk about infrastructure and focus on what we need to see.

You have -- you are part of a group of insurers that are committed to invest in the infrastructure story in the u.k. over the next few years.

Is the number we are seeing at the moment a lowball number?

Solvency rules have changed, regulatory roles have changed.

A much more is there?

I think there is more than that.

If we want to get a realistic number, i think the treasury did a fantastic job in developing sensible regulations for the u.k.. it is ridiculous that we hold bonds outside the u.k. to hedge our u.k. liabilities.

This will enable us to you -- invest in the u.k.. a very sensible solution by the treasury and the regulators to allow that to happen.

How much we will invest, the minimum is 25 million.

He could do more if economic growth is better.

Have you committed more?

The rest will come if the economy develops quicker.

As we see infrastructure, we should see more growth, higher real wage growth.

I think we are committed to 25 billion.

We will see how we go.

And the project you would like to invest in our?

Old range of projects.

Our programs and housing lester was pathetic.

We would like to make a much bigger contribution in the housing area.

We would like to invest in energy, transport.

We would like to invest in education in the u.k.. we would like to invest in health.

We have projects in all of those areas that are ongoing at the moment.

I am hoping even in the next few weeks we will make one or two announcements indicating the scale of the opportunities that we have here in the u.k.. nigel, thank you so much for now.

As we had to break, the world remembering nelson mandela.

South africa's first black

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


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