Recession Threat If Tapering Done Wrong: Dmitriev

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Sept. 5 (Bloomberg) -- Hans Nichols reports on Russian Direct Investment Fund CEO Kirill Dmitriev's three point investment plan. Nichols speaks on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Maturing bonds are going to be hurt more.

They did see outflows.

The shorter duration bond etf's -- the vanguard short-term etf, for example -- are seeing inflows.

Anything over a duration of two or three years is seeing outflows.

Anything under is seeing inflows.

Investors are taking what are the biggest etf's out there?

That is the biggest one, and it is a great segue.

Gld used to be the second- biggest for a long time, and now it is the fifth.

Gld got killed this year.

It has moved to number five.

Thank you so much.

We are "on the markets" again in 30 minutes.

"money moves" is up next.

Welcome to "money moves," where we focus on alternative assets.

I am deirdre bolton.

We show you what investors and entrepreneurs are doing, along with hedge funds, private equity, real estate, and more.

Congressional leaders are debating president obama's plan to strike syria.

We will cover that for you and then turn the page and focus on it tech companies as they ramp up smart gadget to abuse -- smart gadget debuts.

Those subjects all straight ahead on "money moves." first up on syria, president obama lobbying for international support at the g20 in st.


Secretary of state john kerry and nothing three-nation trip to reach out to -- announcing a three-asian trip to recharge allies.

Phil mattingly is with me from bce what is the latest from this hearing?

Both at the hearing on capitol hill with intelligence briefings behind the scenes and even with president obama in st.

Petersburg, the push continues in the sixth day to get that authorization vote from members of congress.

This includes personal lobbying from president obama even though he is on the road.

That included five phone calls to senators yesterday.

White house officials tell us there will be more calls today as he is in russia and st.

Petersburg trying to lobby.

This effort received a boost yesterday when a senate panel approved this authorization.

That said, still a very long road forward.

As we saw today, top intelligence officials went into a classified briefing on capitol hill.

I am firmly undecided at this point.

This is very serious.

It is a very difficult issue.

We have to look at the impact on israel's security, we have to look at the signals it sends rogue states like iran or north korea if we don't act.

Deirdre, susan collins is a moderate republican from maine.

She is often with the obama administration on a lot of issues, but especially national security.

When she is on the fence, that illustrates the problems they are dealing with right now.

The big push in the administration is to line them up.

They are the types of people in the middle ground that the administration feels they will need to, in the senate, reach the 60 votes and in the house get to 217 votes.

Until they come off of the fence here, one way or the other a lot of questions from capitol hill on which direction this vote is going to go.

And unclear -- an unclear path forward.

What are you picking up?

The administration promised everything would be on the table with their lobbying five or six days ago and it has come to fruition.

A person close to hillary clinton confirmed that she supported the strike, former defense secretary robert gates came out with a statement -- he really hasn't spoken since he left the defense department -- he came out with a statement supporting the strike.

Outside groups, pro-israel groups pressuring republicans to vote for this.

There is a lot of effort there.

While the senate might end up getting the 60 votes, it is the house -- the house leaders on both sides have come out and supported this and it is not swayed, particularly on the republican side, lawmakers anywhere near getting them the numbers to vote for this.

A lot of questions.

We will wait until next week to get answers.

Politics are entering this debate, even presidential politics, with folks like marco rubio and rand paul.

A lot of work left to do -- this is something the administration would tell you -- a lot of work left a do a as they push this effort.

Phil mattingly joining me from -- from d.c. we will turn the page to tech here at home.

Six new smartphones are coming out this month and alix steel is with me now.

She has more on the indirect winners from the smartphone bonanza.

What is the trickle-down theory here?

It is almost like the ecosystem.

Samsung and apple designed the phone, but someone has to make it, someone has to buy it, and someone has to ship it.

Asian carriers are the ones responsible for getting the phone out of asia and into your hands but six of the largest freight airlines are in asia, and typically when a new device is introduced, there is an increase in shipment from 15 days to a month.

How important, then, are, let's say, the buyers in the u.s. for these asian products?

More and more important, especially as europe continues to struggle and asia as well, a slowdown there.

The cargo record is in bad shape and might not recover until next quarter.

Asian cargo shipments have dropped every single month starting in february with korean air, which ships samsung phones, moving two percent less cargo last quarter could cap a pacific -- cathay pacific reporting it smallest profit in 15 years.

It is a critical time for these players.

Rates, what are they like?

It depends on where you are going and where you came from.

You look at the broader market, and airlines are making less money on every product that they ship.

Air freight rates on the 21 major routes that link the east and the west have slid 35% since the beginning of 2010. les, planes are running 60% of total capacity, but the upside is that it is not only the sales, it is manufacturing back to help these guys.

Look at the iphone and you have the parts that are made in japan by sony and south korea by samsung and they meet up in an assembly line in china jamaica to the store where you are going to buy it.

All that perhaps may give pricing power to these guys.

Smartphones -- a bonanza -- there is no other word for it.

Markets reporter alix steel with me on this trickle-down effect from tech.

We are going to stay with tech, because our next company runs a company that -- our next nobody bridges the service cap -- our next cover your bridges the service gap.

The cofounder of reddit joins us from san diego.

Some of her clients include bank of america, pfizer, sony.

What do they want from you most?

Deirdre, thanks for having us on the show.

As we get more and more down into the information age, what we see our clients asking for his seamless delivery of their i.t. and critical applications across and among the united states and mexico.

Our company over the last few years has built its practice over observing the specialized needs of united states and multinationals, each of whom need to work across the border between our countries.

A lot of your clients, as we mentioned, our financial services.

That is a big out of your background.

Is this the biggest growth area for what you guys are doing?

Right now in mexico, the financial services sector is growing faster than pretty much any part of the economy.

It is an extraordinarily dynamic part of what is going on in mexico right now.

Not only are the new financial institutions they're working to address the needs of the local clients, but many are working with international clients to bring services into mexico as well as delivering them outside mexico.

As far as your next steps, 2 publicly traded companies putting in about 72 million into the firm.

What are you going to do with the money?

The nature of our business is exceptionally capital-intensive.

We devote ourselves to building a world-class i.t. and to medications infrastructure.

That takes a lot of capital.

We will use the proceeds to expand our data center campus in mexico city.

When completed, it will be about a 100 million dollar project, the largest data center in the largest city in the western hemisphere.

Tt the good part of that capital -- that will keep a good part of that capital is the.

We are expanding operations in our southern california data centers and expanding access points in arizona and texas.

Thank you for the time and filling us in on your projects.

The cofounder and ceo of redit joining us from san diego.

When we come back, we will take you to st.

Petersburg, russia for the g20. president obama making the case for action in syria also, we will introduce you to the new social recruiting website, one being used by companies such as starbucks, twitter, whole foods.

The founder and ceo will join us.

? the g20 is happening right now in st.


Topic number one is syria.

Our international correspondent hans nichols took some time and caught up with the head of the russian direct investment fund on how global investors are preparing for potentially higher rates from the u.s. hans, what are you hearing in this context?

Well, there are 2 economic stories taking place.

One, the effect any attack on syria would have on the global economy.

2, the effective quantitative easing ending on the economy.

He will be presenting a plan tomorrow to the leaders.

Here is how they can avoid the slump.

Investments in infrastructure can provide $4.8 trillion for investors.

It can boost gdp growth in the world by three percent.

We need to reduce restrictions on capital.

Basel-3 is restricting companies from investing in infrastructure.

As part of that, you need to promote things like building with china and other markets.

Number two, draw in private capital into the infrastructure.

Right now there are no simple structures, no standard instruments.

And needs to be developed.

Third is efficiency.

Trillion dollars wasted by an efficient infrastructure spending a year.

-- inefficient infrastructure spending a year.

What is the hottest alternative investment in russia right now?

What does everyone want a piece of?

Well one tripled in the past five years , so financial instruments that people are buying.

Financial, middle- class, and effectiveness for companies.

It also is very important.

What about automobiles?

Is the middle-class going to be purchasing?

Rush is the second largest automobile market in europe -- russia is the second largest automobile market in europe.

It may be the first in a number of years.

When you look at the effective of quantitative easing, what are the biggest concerns?

Significant, because he could hit imaging markets right at a time when growth is important for them and the world economy.

If it is not handled correctly, you could throw the world back into a significant recession because growth in emerging markets is important.

There is the threat of recession if the u.s. federal reserve doesn't handle the taper correctly?

Not only that, a threat to the growth of the world so much needs right now -- growth that the world so much needs right now.

Concerns about the taper is widespread, dominating conversation here.

What the president's response is is that it has to be that the fed is independent.

There are some reports that obama says it will be tapering slowly, but he does not control that.

It is a readout of a meeting that just ended.

It is not his authority to control the pace of the wind down from quantitative easing.

Makes all the sense in the world.

Thank you, hans nichols joining us from st.

Petersburg in russia.

We have a break to take, but when a comeback, the latest shot across the bow in the talent wars, one that gives companies an advantage.

Our next guest says that the best people are often not the ones out there looking for jobs.

He has created a way for companies to find potential rockstar employees.

And the founder and co-ceo of a social media technology company that sees how remote teams work together.

We will bring you that in a few minutes on "money moves." we will find out where celebrities like will smith go to find formfitting polo shirts.

It is a san francisco startup and will smith felt so confident about the company that he invested in it.

I am going to be speaking to the founder in just a few moments.

? it is the newest weapon in the war for talent.

92% of u.s. companies are using social media networks to recruit talent, up from 78% just five years ago.

That statistic comes from our guest company, jobvite.

Some analysts have described it as a combination of and linkedin.

Glad to see you on "money moves ." is this description apt?

Not really.

We are a subscription service that companies use to manage their entire recruiting process, from the creation of job descriptions all the way to making an offer.

It seems like, reading quickly, i could say that you guys are poachers.

You help companies keep tabs on the people they really want to higher -- hire, but may be right that second they are not on monster or linkedin and the company recognizes it is an above average employee and more or less treating them well and they are not actively looking.

For people who have a college degree or are highly skilled, the unemployment rate is quite low and the companies struggle to fill those empty positions.

Data proves that the best hire you can make his employee referrals, people who come through your employee network.

We have found that obese to a great job hiring people faster, better, -- companies do a great job hiring people faster, better, and who last longer.

You are helping them keep track of passive candidates, people who are qualified, don't seem like they are looking, taking interviews, but they are there and have a skill set that is desirable.

They are not actively looking for a new job but they are always open to a new job.

I heard you say it is basically a service company.

Companies are paying you, that is your revenue model.

People pay us to subscribe to the software, which is in the cloud.

Your service seems more efficient and more appealing for smaller companies and then for bigger companies.

-- than for bigger companies.

Maybe bigger companies are using it as well, but you don't have to spend a lot on recruiting with your service.

We have companies from the smallest, 100 employees on the to starbucks -- 100 employees, to starbucks.

Starbucks is a pretty big firm.

Yahoo has a new logo -- you knew i was going to bug you about yahoo.

They didn't change that much.

Still purple.

But no other lessons learned that you apply to what you are doing here?

A lot of things have been taking place on the internet.

Usage has moved to mobile and people apply for jobs on mobile devices.

They share information all the time, but the companies, their jobs.

The world has changed a lot since my days at yahoo.

I know you launch to this in 2008, which must've felt like an incredibly crazy moment for you, but it turned out to be the right thing.

What has been the biggest surprise from 2008 to now?

Even despite the downturn in the economy, which affected everybody in 2008 pretty equally, the return of the economy has been much better for those with a college education or highly skilled -- technology, health care.

There really is a shortage of skilled labor and there is no easy way to find the best people.

For some people -- i disagree, actually.

Some people were hit harder in 2008 then others -- than others.

What jobs -- technology, health care, these are the ones where you constantly see people being recruited for those industries?

Yeah, and software, the internet, data are changing most industries, so most industries have to hire technology workers to do their job and compete.

The competition for this kind of talent is very fierce.

Dan, thank you very much for coming in.

The ceo of jobvite.

A quick check on the markets right now.

We can tell you what is going on on this thursday.

The dow, the s&p 500, and the nasdaq slightly higher across the board.

We will get you more on trade right now and take you to the newsroom.

Matt miller is there with all you need to know.

Stealing a little bit of my thunder there, deirdre, but you have a rally going on again today.

The dow was up almost 20 points.

A couple of stocks we want to highlight for you.

Sprint is warning that it's $6.5 billion bond sale yesterday may trigger a loan default unless it can get waivers from lenders or reduce its debt level.

Second one is opentable, an online reservation company getting cut to underweight and morgan stanley, citing a high market penetration as with american restaurants show signs of saturation.

That is it for "on the markets." back after this commercial break.

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


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