U.S., China America, Richard discussed on Bloomberg Daybreak Europe


Were the secondary effects of some of these sanctions is food inflation inflation overall up how difficult will it be for chief executives to try and bridge those inequalities So again a finding in the trust barometer trust actually went up in democracies but only in the top three quartiles of income The flat line was in the bottom quartile So we've never seen a trust gap as large an institutions as we see today in Britain 34 points in France In Germany 25 points U.S. 23 Japan 21 So the people at the bottom are looking at their at the pump and at the grocery store and saying I'm unhappy you know please pay attention to me I'm Tinder on the floor So is this the role of politicians Or is it also a big chief executive's big business that can step in and do something about it So again you'll remember from January the big finding was that trust in business is higher than government by far because competence is the word 50 point difference between business and government on the matter of competence They just think business is going to get things done So now businesses plate is very full And you only have two hands Was it what can they do If you look at I mean a lot of the people that don't trust institutions that will be really squeezed by the cost of living that will go through nightmare because of food inflation may not be employed by the companies that can do a difference So I think companies have a really important role in the next month to try to figure out how to reskill workers because if we do have a recession there's going to be some redundancies Also to make sure that food is somehow made affordable Unilever is doing a really good job of affordable food with nor and some of its other products And the essence of the argument for business is are you trying to help me get through this as a consumer Or are you just going to attack price inflation on and make a higher profit So Richard what's the mood like I mean you kind of put a beautifully when you sat down which is you know they're hoping the chief executives are soft landing but preparing for a recession Well I think again the capital markets are getting signals that maybe it's going to be tough for tech And in fact time's up on EVs and we're looking for profits So if I can't raise prices I'm going to have to look at costs Chief executives are also worried about again how many markets are going to be off their docket If the world's not only because of the world splits between the U.S. and China Which side am I on Can I straddle as India does for instance or am I going to have to choose And there isn't going to be a lot of inbound investment to China from American companies There's a lot of political pressure Where's can they straddle And actually with all the sanctions that the U.S. and the west put on Russia is that the U.S. dollar as the dollar supremacy but also treasury is being put into question Well look I mean American companies and British companies a thousand companies have come out of Russia And again they've been rewarded by consumers employees and others to say that was the right thing The broader question is the China America conflict And it's really important that there's two countries find a way Will they No On business Right Again the theory was that if we have great business ties that the politics will follow And it's hoped that in fact that continues to play a role because between rare Earths and parts for cars and things we're inextricably linked and again I think trust relies on four things ability dependability integrity and purpose And if CEOs can keep those things in their minds when they're deciding on how to play the game it's a better way Richard how you finding the staff officer So first of all it is an end of May but also there's a lot of criticism of why Davos is even happening given what we're living through I think Davos has been actually great because it's smaller CEOs are really looking to talk And there's much less such cold That helps But also I think it's an incredibly important time To make sure that you do see as zelensky yesterday and you do feel a guard acting to keep the level of the Euro And that government not be feeling disappeared That business is not just on its own Yeah and what's amazing is that there's a real buzz in the Congress center of people that haven't seen each other maybe for two and a half years you know parts of the world that were cut off because of COVID coming back And you see that buzz in people want to talk to each other Again do you think the pandemic really changes the work from home environment forever Again I think work at the office is an essential part of a successful business but the process is dragging out on the basis of people being comfortable working from home They say that look how well the companies have done But I think in a certain way we're trading on relationships that we've had for two years And I went to our Washington office the other day and my God half the staff I had never met Because they'd come in the last two years So you know there's a bonding aspect of return to office but you look at midtown Manhattan it's still pretty empty Yeah it is on Friday We just have a survey on Fridays in London So if you want to go to the office in London come on Friday 'cause no one else is there Certainly not the bankers Richard as always thank you so much for joining us Richard Edelman there The chief executive of Edelman of the trust barometer So I urge everyone else to check it out Okay Sorry that was Richard Adam and speaking to our colleague francine LaCroix in Davos interesting to hear him talk about the consequences of not only their trust survey that we were talking about before the interview as well talking about the trust gap being at its widest but also this hope among CEOs hoping for a soft landing hoping to avoid a recession perhaps unsurprising there but he noted some of the things come out for example coming out of capital markets giving signals that things would be tough for tech going forward I'm talking about the dilemma that CEOs are facing as regards cutting costs are raising prices and what impact that will have on inflation And also the dilemma of being torn between different markets can one straddle different markets even as the geopolitics gets more difficult everman was clear in underlying that the world is reliant upon other countries many countries in terms of supply chain but whether that is possible in this can't sort of a geopolitical environment but Richard element speaking to voting likewise Interesting too that he still sees the U.S. China duality as being the central geopolitical ties to watch rather than necessarily what's happening with Russia he talks about the company's pulling out of there but still seeing the ongoing debate about Sino American relations being essential to what will happen to the global economy I was also interested to hear him talk about working from home saying that working in the office is an essential part of the business and there's a lot of relationship building that has to be done when they're in the office as well That's an ongoing theme we're hearing from CEO speaking to Bloomberg and Davos So day two of Davos many more of those top interviews including our conversation with ECB president Christine Lagarde coming up this morning This is Bloomberg Markets headlines and breaking news 24 hours a day At Bloomberg dot com the Bloomberg business out now Quick take This is a Bloomberg business flash.

Coming up next