Miscellaneous Quotes from week to 18th November

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Steve Schwarzman, CEO – Blackstone Group in Business Insider

Populism is rising

“I think we find ourselves in the midst of populism. It makes complete sense, because the middle class – whether it is in the US, Europe, or almost any democracy – has not had a good experience, particularly since the financial crisis. As a result of that, they’re unhappy, they’re angry.”

The government has failed the people

“When half the population can’t marshal $400, one pay check, they should be scared. They should feel insecure, they should be unhappy with their government that has failed them – which is what they think – it is all logical.”

There is anger around

“These people who are the victims are correctly articulating the problem. That anger moves around. Sometimes there are government officials who direct [the anger] for their benefit. It goes to financial people, it goes to income inequality, it goes in areas of race relations, it moves all over. It goes to trade, it goes to relationships with foreign companies, foreign countries. It needs to be solved. Each one of these issues seems to live on its own, but actually it doesn’t. It is part of the whole. This is a really tough election.”

 

Bill Gross from Janus Capital on his November Investment Outlook

He is pessimistic on the outlook of making America great again

“The Trumpian Fox has entered the Populist Henhouse, not so much by stealth but as a result of Middle America’s misinterpretation of what will make America great again…in voting to deny Hillary Clinton the Henhouse, they “unwittingly” (lack of wit), let Donald Trump sneak in the side door. His tenure will be a short four years but is likely to be a damaging one for jobless and low-wage American voters. They were the force for Trump’s flipping the Midwest into a Republican Electoral College victory. But while the Fox promised jobs and to make America great again, his policies of greater defense and infrastructure spending combined with lower corporate taxes to invigorate the private sector continue to favor capital versus labor, markets versus wages, and is a continuation of the status quo.”

The government has failed the people

“When half the population can’t marshal $400, one pay check, they should be scared. They should feel insecure, they should be unhappy with their government that has failed them – which is what they think – it is all logical.”

Populism is rising

“Populism is on the march and a Trump victory will do little to halt its advance in future decades. If anything, it is demographically baked in the cake. Investors, as The Economist astutely pointed out, face a possible no-win situation. Unless the worker’s share of GDP reverses its downward trend, and capital’s share peaks, then populists worldwide will reject establishment parties in almost every future election – initiating in some cases growth-negative policies revolving around trade, immigration, and yes, in Trump’s case, lower taxation that may lower GDP growth, not raise it.”

 

Jes Staley – Barclays CEO at a Financial Times banking conference.

There is a narrative that ha failed

“In our lifetime the developed world believed economic integration, leading to globalisation, was a necessary condition for political peace. The first time the developed world began to back off from that endeavour was the Brexit vote. You have to look at the election of Donald Trump, given his comments about immigration and comments about trade policy, as a major step in another direction from the policy of the G20 over the last 70 years. This is a very major move whether you think it’s positive or negative. The establishment has failed to articulate a narrative that free trade and global integration is good for them.”

On Brexit

“Brexit is so complicated. Disengaging UK from structure from EU confusing for all of us. I don’t think anyone believes we’ll have clarity in the timeframe of Article 50. I don’t think London will lose its gravitational pull in terms of the management of capital in any reasonable timeframe. Going to be very hard to break that. That said businesses and banks want to operate under as much certainty as possible”

 

Doug McMillon – President and CEO Walmart (WMT)

Readying for the holidays

“Overall, we’re gearing up for the holidays, our busiest time of the year, and we’ll be ready with great items at low prices to delight our customers. Here in the U.S., we’ll have an expanded assortment online and available for pickup, in addition to holiday helpers in stores to help speed customers through the checkout line. ”