Bloomberg, Bill Janeway, Cambridge discussed on

Automatic TRANSCRIPT

Jim Roope reports, the wireless provider throttle back the data service of a. California fire agency. Because it exceeded his stated plan while. The agency was battling the state's historic wildfire horizon left Santa Clara county firefighters battling the Mendocino complex fire unable to communicate. Properly because a slow the. Department service way down and wooden reestablish it until a larger? Plan was purchased for is says. That. Was wrong an error on the part of. A sales person it promises it will never happen again lawmakers have paneled a committee to look into it and assure sure Verizon and. Other providers don't put sales above the knees of an agency in the middle of a disaster MGM has. Opened Massachusetts I resort casino the nine hundred sixty million dollar complex in downtown Springfield offers Las Vegas style gambling and entertainment options I'm Barton Necker This Bloomberg sports update the Yankees Luke void hit multiple home runs for the first time in his career. Leading the Yankees to a, seven five victory sendings over Baltimore Boynton his first home. Run in the fourth inning. Two run shot and added another two run blast in the tent after Neil Walker solo Homer Walker and Boyd each finished. With three hits on the night while the gallon do heroin two for five Giancarlo Stanton over to but three times glare Taurus a two run single the Orioles Chris Davis at a two run single against see savannah in the first inning but the veteran left-hander recovered. To pitch five scoreless innings savannah coming off the, disabled list finished the night with. Eight, strikeouts Chan green pitched a scoreless inning to earn the victory sack. Britain allowed to run in the tenth and earned the save Jason Vargas to relievers combined to pitcher shutout. As the Mets blank. National it's three nothing at city field Vargas struck out eight over. Six innings to get, the, victory, at Robert Casselman. Lockdown his eighth Th save Wilmer Flores at RBI single for the Mets and the first and Jay Bruce coming off the disabled list and insurance with a two run Homer in the. Eighth four, Bruce it feels good to be back in the lineup make sure thankful to be here going we haven't so long Playing games in the minor leagues so it's it's going to be, back and that's about one six, of, their last seven at MetLife stadium Sam darnold lead the jets on two touchdown drives moving closer to securing the. Starting cornerback job and a twenty two sixteen loss. To the giants darnold finished eight of sixteen for eighty six yards including the twelve yard touchdown pass to, tarot prior the, giants Eli manning seventeen of twenty three for one hundred eighty eight yards was likely his, final tuneup before the regular season sterling Shepard had. Seven catches for seventy eight yards and there is a two way tie atop the leaderboard after two rounds of play at the Northern Trust Jamie love Mark and Brooks KEPCO both attend under Tiger, Woods, shot even bar for the second straight day but, made the cut will the Bloomberg sports. Update I'm Tom Rogers Macy's masters in business with Barry ritholtz. On Bloomberg radio My special guest today is Bill janeway. Has a storied background in both economics and venture capital he helped to create systems which connect software apps to. Database had you invested about fifty million dollars into b When Bill started putting. Money into it it would have become over six billion dollars in six years he is an affiliated lecturer. Of economics at the university of Cambridge where he teaches a. Class venture capital in the innovation economy he's a. Senior adviser at Warburg Pincus where he helped, built technology investing platform there for over thirty years he's on the board of the US social science. Research council the governing board for the institute of new economics the field institute for research in mathematical sciences. No less a character. Than Mark Andriessen cold him a key. Creator. Of the modern venture capital world he is also the author of doing capitalism in the innovation. Economy markets speculation and the state Bill janeway welcome back to Bloomberg it is great to be back here Barry Especially with you that is quite, the curriculum vitae we left a ton of it off, we'll talk a little bit about BA systems in a bid. I want to start with your academic background economic your valedictorian at, Princeton you get your doctorate from Cambridge and economics how do. You go from that to venture capital well actually it's a closer connection than I knew at the time. It would be when I got to Cambridge I was studying. Under the students the top students who had been. Taught by John Maynard Keynes and I wrote, my dissertation for Richard Kahn who invented the multiplier is a way of looking at the impact of. Government spending or taxes on the macro economy but all of the work that I did everything I learned. There was about decision. Making under conditions of uncertainty decision making. By Investors workers consumers businessmen politicians. Who cannot know what the full consequences of their actions are. Going to be now isn't that effectively every, after, in the economy you. Got it but by the time I finished. My doctorate and was thinking I would pursue a? Course, in economics in academic economics it turned out that economics was converting itself for a long generation into a, kind of mechanical process of cranking. Out the efficient outcome on the assumption that everybody knew everything that's the marketplace itself is already reflecting all the information that's available and therefore right hey nobody can really beat the market consistently over time we're so Chicago pharma. In French and right across the whole economy the rational expectations hypothesis said government can't have any lasting impact on, the economy 'cause People in, the economy, will react an offset whatever it tries to do in any case I decided that at the ripe old age of twenty seven I could not take. This stuff and spend my life pumping it into the brains of innocent undergraduate so I went on I I talk. Of as my my thirty five years sabbatical right where in the trenches a venture capital that I have found in through joining an extraordinary firm whose core competence was understanding the science based industries chemicals departments articles to electron IX to computer I discovered, that, what, I learned at Cambridge as an academic economists was. Directly relevant to try to frame the sort of decisions and the. Sort of ways of protecting yourself your investors and the entrepreneurs you are backing. From The necessary ignorance of operating, at, the frontier of technology so that's pretty fascinating I wanna push back on the, concept that, hey this sufficient market hypothesis. Really doesn't get, it right a perfect example I read while I was doing, a little research for for our conversation some people have been wondering why the US tax cuts haven't. Had a larger impact, on, either employment or wages or RND and the most interesting explanation? I came across was, well everybody has already operated on the basis that there are tax havens and this thirty five percent corporate tax rate is, no, big, deal anyway we're all paying eighteen. Percent or less therefore a giant corporate tax cut has much less of an impact than you would imagine true or false and what does that say about your belief that, hey maybe the market is. Less efficient than we I think I I think. That's correct I don't. Think the an average of about eighteen percent, not, thirty five percent of the boys particularly the digital. Companies that can. Move their cash flows and their assets around by keys on a computer. They're not manufacturing steel built locomotives is just code very mobile they're very mobile second however the tax cut has had a. Significant substantial impact unavailable accessible cashflow not reported earnings, so, that but what happened to that cash flow and this is something again about the nature of the stock market that cash flow has. Overwhelmingly, been devoted apple being the most extreme. Example stock buybacks and dividends that not not raising wages for workers not investing in the, new stuff but. But putting more money in the in the pockets, of, stockholders which is a rational response of management Particularly, when their stock holders who are increasingly? Index funds right are necessarily very short term oriented and the executives are also short term oriented hey we we eliminated the agency problem by tying their, compensation the stock price coming up we continue our, conversation with Bill janeway discussing Xerox, park and the future of venture capital.

Coming up next