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tv   The David Rubenstein Show Peer to Peer Conversations  Bloomberg  January 2, 2018 12:00am-12:31am EST

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morette: china is showing signs of strength. the survey came well ahead of expectations. the forecast had been for a slight decline. the reading as welcome as they prepare for a critical battle with debt, poverty and pollution. toth korean exports expanded the highest high indicates. leaving a trade surplus. rates in november for the first time since 2011. singapore grew at a better than expected pace.
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growth andth steady benign inflation. they have hinted they may raise taxes while they open the door to taxing and october. -- in october. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. let's take a look at the markets in australia. they have closed out the first day of trading slightly low. ang seng.kup on the h the nikkei is fairly flat. this is bloomberg. ♪ david: what would you say are the greatest pleasures you have received? or what you are most proud of? >> ok. this is good. thank you. this is good. [laughter] david: i watch your interview shows. i know how to do some interviewing.
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>> i was really busy. i was into building this company. >> if all the diseases have been taken, why shouldn't i? i will take a tax. >> hello, general powell. this is ronald reagan. yes, sir. [laughter] >> actually i think it was my husband who set the interview up, to be honest with you. david: did he get a finder's fee or anything? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick?
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♪ david: at what point did you realize that you had some skills that were maybe going to enable you rise up? >> my grandmother taught me how to read. so i grew up learning to read and read bible verses. the grace for me is that i did not spend a day in a segregated school. so i did not have one moment of ever being conditioned to believe that i was less than anybody. so when i walked into my first kindergarten class, first time i had ever seen little, white children that my grandmother did not, you know, work for. everybody was doing their abc things, and i was like, why are children doing the abcs? [laughter] >> so i wrote my kindergarten teacher a letter and i said, i
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do not belong here. [laughter] >> because i know a lot of big words, and then i proceeded to write every big word i knew. and anybody who reads the bible here, it was biblical names like jeremiah, and then i put in elephant and hippopotamus just because they were some more big words. i saw the impression that made on her. >> my mom never went to high school. my dad went to two years. so when i was recruited by west point, they could not imagine that a polish kid from chicago was going to go to school, could go to a school where presidents went to. david: right. >> so i did not really want to go to west point, but my parents kept putting on pressure. they would speak in polish in the kitchen. that is where, we never had a house, but we had a flat. and they would would talk in polish. david: and you did not know
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polish? >> i did not. they would never want me -- i did not know this until later. they did not want me to take polish in grade school and high school so that i would not have an accent, but they would put a few english words in there, stupid, mike. finally i said i will go. and it was the best decision i never made, to go to west point. david: right. mike: and it is really, going to west point is the basis, the foundation, of everything i am right now as a man. david: at one point your father left your mother, and your mother was not college educated at the time, so how did she support four children? ginny: my mother had a high school degree, but then quickly had us as children after that. i was in my early teens when my dad chose to leave. and it was sudden. and my mother found herself with four kids, no money, soon to be no home, soon to be no food. and she did, as i said, i
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learned, she was so intent on not letting other people define who she was. we had to do some things for a short time. she had to go on food stamps. we had to get help. i mean that is what entitlement programs in this country are for in many ways. but she went back to school. i had to help. i was the oldest. a lot of people in families, they pitched in, and my mom really taught us. i would say the lesson that i learned is never let anyone else define who you are. she was never going to let that situation define who she was. david: did you ever think that one day you would be the chairman of the joint chiefs and the secretary of state of the united states? colin: no. people ask me this all the time. it usually starts out with, what year did you graduate from west point? well, i did not go to west point. i could not have aspired to go to west point. well, did you go to the citadel, or did you go to texas a&m or virginia military institute? i said, no, they would not let black guys in then. it was beyond any possible level of aspiration or expectation,
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but it happened. why did it happen? because i got a quality public school education that i did not know was of that high-quality at that time. elementary school, junior high school, high school, and then ccny let me in with my modest average. then it was rotc at ccny that really made the difference. david: you were a geology major. did you think you are going into the geology world? >> no, i was the geology major because i busted out of civil engineering. ok? now you know. [laughter] colin: that didn't need to come up, david. thank you very much. david: so when microsoft is moving forward, you decide to take the company public in 1986, and at that point you are a billionaire? close to it? >> ah, yeah, pretty close to it. within a year of going public, i think. there is some fortune cover that says the deal that made bill gates $360 million or some weird thing like that. david: all right. how did it change your life? or it didn't change your life at all? bill: that whole period of time was amazing because i was hiring people as fast as i could.
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i brought in steve ballmer, who was good at that, and he was helping out. we had a sense of urgency that we wanted to lead the way, but i was really busy. so, you know, if some friend had tried to call me, i would not have had too much time for that. i was really into building this company, and i was going out and telling people about the magic of software, which is good for microsoft, but also helping them understand the opportunities and the huge change agent that software, and eventually software plus the internet, would become, so i was having fun. it was amazing, but i always thought, hey, you know, we are one step away from not leading here. we have got to keep doing better. david: so you grew up in a very close family. when you were young, your mother would say at the kitchen table, why don't you pretend you are prime minister of india or something. what was the drill that she was trying to exhibit to you? indra: i think, she is a very
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bright woman. she did not go to college because her parents did not think girls should go to college. they could not afford to send her to college. so in a way she lived vicariously through the daughters. she kept pushing us to be whatever we wanted to be, dream big. but she would always tell us that at 18, i am getting you married off, but you can dream until then. so at the dinner table virtually every day she would sit down and have this conversation about, give me a speech as if you are president. one day it will be prime minister. one day it would be chief minister. and she would always critique us. she would never give us a compliment. she would just tell us, no chief minister would do this, no prime minister would do this, so she kept pushing us to be better and better and better, and if we got one compliment from her, we said, wow, we must have done really well. so she raised the bar constantly on us and i think she gave us hopes, but then anchored us firmly into the concern of -- conservative indian brahmin
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values of you have to get married at 18, which didn't happen, i want to tell you, but that is what she kept telling us. david: you were first in your class at the university of california berkeley. masayoshi: yes. david: when you were there, i understand you are not being a student so much, you are doing business on the side. masayoshi: well, i was a good student. but i said, five minutes i would allow other than study. i have to make money. i want to earn $10,000 per month, and i will allow me, myself, five minutes a day, so i asked my friend, isn't there good job that i can earn $10,000 in five minutes a day? my friend said, you are crazy. it is impossible. nothing like that. you want to sell drugs? [laughter] masayoshi: so i said, no, no, i don't want to do that. so i said ok, what is the best, most efficient use of my time? it is invention. it is invention. and i have to find patent. if i get the patent, five minutes. if i focus, i can come some
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idea, make some idea, so i set the alarm clock five minutes. tick, tick, tick. in five minutes i said, come, invention, come! invention, come! come! right? [laughter] masayoshi: so i did that. david: it worked. masayoshi: it worked. david: you invented a machine that helped people translate languages. masayoshi: yeah. that one was the electric dictionary, the first electric dictionary. many students use the electric dictionary. the first one ever made was by myself. david: another crisis arose, and that is the financial crisis 2007-2008. >> it was the single most stressful, i just kind of wanted to say, i want my mommy. you know, right now. david: suppose you are driving around in michigan on a weekend and you need gas, do you pump it yourself? >> yep, absolutely. david: does anybody say you are the ceo of general motors and you shouldn't be pumping your own gas, or they don't say that? >> in michigan it is self-serve, it is between you and the pump. it is the credit card.
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david: ok. [laughter] ♪ ♪
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david: when you went to baltimore, you went initially to be a broadcaster, an anchorwoman, and then it didn't quite work out. oprah: yeah, i got fired. [laughter] oprah: well, demoted. david: you got demoted, but they had a contract, so they did not say goodbye. so how did you work out to be on an afternoon show where you actually got to be an interviewer? how did that actually happen? oprah: well, what happened -- this is what i now know with age and perspective, that many times getting demoted is an opportunity for something else to show up, or getting fired. lots of people i have interviewed over the years have these stories about the best thing that ever happened to you. once i got demoted, they did not want to pay out my contract. i was making $25,000 a year. they did not want to pay me the $25,000, so they kept me on and said we will put you on this talkshow just to run out your contract. david: ok, and the person who wanted to demote you, has that person risen in the broadcast world? [laughter] oprah: as a matter of fact they did. they moved on. it worked out.
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david: in 2001, you become the ceo. on september the 11th, tragedy occurred not far from here. how did you handle that leadership challenge you had then? kenneth: that was, david, an incredible challenge at any point in someone's career, but particularly in my first year as ceo. we had several employees who perished. that was emotionally traumatizing. the travel business was in disarray as a result of 9/11. spending dropped precipitously. i got all of our employees in the tri-state area to come to an event at madison square garden. david: i see. kenneth: i talked to them about the fact that i cared a great deal about them and their families. that was a very, very challenging time.
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we emerged stronger as a company, but certainly the leadership of this company and my leadership was tested at the highest level. david: when you became president of pepsi, you came home one day and your mother was there and she asked you to get some milk, and well, maybe you could tell the story better than i could. indra: it was way back in 2000. i was just informed at about 9:30 at night from a phone call that i was going to be president of the company. so i went home because i was working on the quaker oats deal to tell my family i was going to be the president of pepsico. and i walked in the house and mom opens the door. she was living with me at that time. i said, mom, i have news for you. she says, well, before your news, go get some milk. i said, it is 10:00 at night. why should i get milk? i noticed my husband's car was in the garage. i said, why didn't you tell him to get the milk? she said, well, he came in 8:00 and was tired, so i let him be. now go get the milk. you never question your mom.
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so i went to get the milk, came back, sort of banged it on the countertop and said, i was just appointed president of pepsico and all that you care about is the milk. she looked at me and said, what are you talking about? she said, when you walk in that door, just leave that crown in the garage because you are the wife, the daughter, the daughter-in-law, and the mother of the kids, and that is all i want to talk about. anything else, just leave it in the garage, so don't even try this with me anymore. so i think with mom you don't try anything. david: but she must be very proud you are the ceo of pepsi. indra: i think she is, but she keeps me grounded. david: you went to the infantry and you almost lost your life, or seriously damaged, not in combat. >> yeah, this was a pretty aggressive live fire exercise. david: pretty aggressive live fire exercise. >> live grenades, supporting machine-gun fire and all the rest of that. we were following -- in fact, general keane, a one star general, the vice chief of staff of the army four-star, was with me when we were walking behind the soldiers.
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one of them knocked out a bunker, spun out of it, tripped, went down, and we think he probably squeezed -- because you tense up when you are about to take a blow -- and a round, an m-16 round, went through my chest. and so luckily it went over the "a" in petraeus rather than the "a" in army. and then i was put in a helicopter and flown down to the vanderbilt medical center. and i was out of the hospital in five or six days. david: and to get out of the hospital, they did not want you to leave, so you did 50 push-ups to make sure they knew you were ok, is that right? david: the only time i have ever stopped at 50, david. [laughter] david: ok. [laughter] david: if someone wants to be the president of united states, is the quality that is most important hard work, intelligence, optimism, luck? what do you think it takes for somebody who says, i want to be president? i want to be like you? i want to be like you? pres. bush: humility. i think it is really important to know what you don't know and listen to people who know what you don't know.
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pres. clinton: i also think that you have to begin with the end in mind. that is you have to say, yeah, you have to win the election, but why in the heck are you running? if you want to be president, realize it is about the people, not about you. when it is over, and that is what a lot of these people who are real arrogant in office forget, time passes, and it passes more quickly than you know. you want to be able to say, people were better off when i quit, kids had a better future, things were coming together. you don't want to say, god, look at all the people i beat, or the people i worked over. i think the most important thing is to be humble, to listen, to realize everybody has got a story. david: your first child was born with cerebral palsy. he is now 21 years old. and one of the qualities that you say you got from all this was empathy. and the result of having empathy made you a better ceo and a better person, is that fair?
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satya: yeah, in fact when i look at empathy, and most people think empathy is something you reserve, you know, for your life and your family and your friends or what have you. but the reality is it is an existential priority for our business. because if you look at it, what is our business? our business is to meet unmet, unarticulated needs of customers. there is no way our innovation to meet unmet unarticulated needs is going to come about if we don't listen, not just listen to the words, but go deep to understand what the needs are behind it. so i think empathy is core to innovation and if anything my pursuit is every year is there a growing sense of empathy for people around me. colin: there is a story about lincoln that i have always appreciated. in the early days of the civil war, he would go to the old soldiers home outside the swampy area in the north part of the city, and there was a telegraph office there.
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and one night a message comes in and the telegraph operator writes it down, mr. president, it is not good. and he hands it to him. and the message says, the confederates have just raided a union outpost out by fairfax station and they have captured 100 horses and a brigadier general. and lincoln says, oh god, i hate to lose 100 horses. so the telegraph operator asked him, what about the brigadier general? and lincoln's reply was, i can make a brigadier general in five minutes, but it is hard to replace 100 horses. somebody gave that to me the day i made brigadier general. [laughter] colin: and it has been by my desk ever since, to this day. it is there if you came to the house now. you would see it. it always reminded me that your job, powell, is always to take care of the horses. don't worry about being a brigadier general.
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take care of the horses, the soldiers, the employees, the clerks, the students, the faculty, what ever it takes to be successful in whatever it is you are trying to achieve. jeffrey: in 2011, the fukushima nuclear disaster took place. and a couple of the reactors were ours. it was, it was terrifying, i would say. so i was on a two hour teleconference. hey, we don't know what is going on. all we can see is the cnn helicopter feed, but if something happens to the reactor, this is horrible. two hour teleconference. i am in perth, australia. click. i have to go to a town hall with 1000 people. so i have to walk like 20 steps. and i am going from the world we know it is ending to walk in and say, hey, guys, i am feeling good today. everything is groovy. right? everything is cool. we are going to get through this and things like that. and i think good leaders know how to be in the moment, intense, but compartmentalized. and i have always been able to do that in my personal life as well.
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david: i was in the oval office with my family after the surge in iraq. the president said, general, when will you have the guts to ride a mountain bike with me? i said, mr. president, do you have any idea who you are talking to? i said i am going to give you an experience that you can write off on your income taxes as education. david: right. [laughter] david: you were nominated for an academy award, and you should have won, but didn't win. oprah: but it's ok. the dress did not fit and i would not have been able to get out of the chair anyways. [laughter] ♪
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♪ david: what is it like in the back room? what do actually say to each other when former presidents are getting together? do actually tell secrets that you never tell anybody else? pres. bush: generally we say, when is this program going to start and when is a going to end? [laughter] pres. clinton: well -- [laughter] pres. clinton: and he will say to me, give shorter answers. [laughter] david: very few people in the world are known by one name. there is oprah, elvis, jesus, very few people. [laughter] in david: but, i mean -- oprah: there are a few others. david: suppose your name was mary or jane? oprah: it would not have worked. david: you said your secretary pays a higher tax rate than you do. warren: yes.
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david: you are in favor of changing that. warren: some years ago somebody from the white house called and said would you mind having a tax named after you? i said if all the diseases are taken, why shouldn't i? i will take a tax. david: what about snack products? how are you trying to make snacks healthier? indra: a single serve bag of lay's has less salt than a slice of bread. so you should eat your lay's with a smile on your face. david: i am sure i would eat them with a smile on my face, but i wonder whether i will gain weight. i went with my mother to my old home with my mother for a tv show. i knocked on the door and said, can i come in? i used to live here a long time ago. they called the police. david: i think president bush -- he can talk trash, by the way, and he did with me. he challenged me. i was in the oval office with my family after the surge in iraq and he said, general, when are you going to have the guts to ride a mountain bike with me? i said, mr. president, do you have any idea who you are talking to? i said i am going to give you an experience that you can write off on your income tax as education. [laughter]
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david: right. did you ever do it with him? david: i did. david: is he good? david: he is terrific. he also knew the course. he had the best bike in the world. [laughter] david: i had a borrowed clunker. secret service will ditch you if you try to pass him. [laughter] david: i mean this is a full contact sport when you ride with president bush. david: you are now both former presidents. what is the difference between being a former president and president? now one day you have the nuclear codes. you can send nuclear bombs off, everybody is working for you. in the next day when you leave office, you have no power. what was the transition like? [laughter] pres. clinton: nobody plays a song when you walk in a room anymore. [laughter] pres. clinton: i was lost for the first three weeks after i left office. i kept waiting for the music coming you know. [laughter] pres. bush: so i woke up in crawford. [laughter]
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pres. bush: the day after the presidency, expecting someone to bring me the coffee. david: right. [laughter] pres. bush: laura did not bring the coffee. [laughter] david: there was the iran-contra scandal. colin: yep. david: the new national security adviser came in and wanted you as his deputy. colin: i said, frank, it can't be that important. he said, it is that important. so then i said, ok, see if you can risk your entire career by saying the next sentence. i said, well, frank, if it is not that important, then why doesn't the president call me? half hour later -- david: you get a call from -- colin: hello, general powell. this is ronald reagan. yes, sir. david: when you develop the success you have had, what comes along with it in our society is money. oprah: yeah. david: and when you make as much money as you have made and i have been fortunate to make as well, you really can't spend it all yourself. no matter how much you want to buy a new plane or a new company. oprah: you can try. [laughter] david: you can try, but it's tough. oprah: you can have a really good time trying. ♪
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juliette: china is showing more signs of strength. the survey came in above expectations. forecast had been for a slight decline. india is also entering 2018 with strength. was 54.7, ahead of estimates. south korean exports expanded last year to the highest and at least six decades. -- leaving a trade surplus of 96 billion. it led the bank of korea to raise


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