Trump’s UN Address Targets Regime Change In Iran: Cohen

the Atlantic Council. What stuck out to you? First of all, this was a very strong message against what I would call the globalists. Uh, this is the world of the mosaic of independent nations. I think Steve Bannon would have been proud of this speech. Um. The President is strengthening the sovereignty against global government. He says, the United States does not recognize the International Criminal Court, we will not join the International the UN Compact, and refugees, et cetera.

He is not against cooperating with the United Nations, He just wants America to do it on our own terms. Arial Other topics include OPEC and oil prices, as well as China and trade negotiations. I wonder if you could comment on the relationship that the President is setting out between the United States and OPEC as a organization that

he describes as controlling oil prices. Absolutely. I had the privilege to testify before the US Congress on the legislation called NOPECK no opec UH and this is something that is encouraged by the White House. Apparently the President you OPEC for what it is, the cartel that by opening or closing this spigot can regulate the prices, and OPEC

is now expanding. Russia and Saudi Arabia are working closely together, and this was interesting because he mentioned um the Russian pipeline that goes into Germany, the natural gas pipeline, but he did not mention Russia. Contrasted what was going on in Germany and their energy policy with the energy policy that exists in Poland. He spoke about how OPEC is ripping off the rest of the world. Well, let's distinguish between gas and oil. Russia is corporating with ope in

Saudi Arabia on oil. And it was interesting that he mentioned Saudi Arabia amongst very few US allies. You mentioned India, you mentioned Israel. No surprises here. He mentioned Poland which is an important in the election with the ethnic and Polish American vote. But he did mention Saudi Arabia as an ally at the same time nashing OPEC and Saudia, of course is the founding member and the market maker in Ope. That there was a dichotomy and a paradox right there. Um I think he will push Opic not

to um diminish oil production. He wants oil prices lower than they are now. So Ariel, I want to go back to something that you said initially, that that that Steven would be proud of this speech and that it was rejection of globalism. And I'm just wondering if you can sort of put historic perspective on u N Assembly addresses by presidents. How instructive have they been about policies and sort of how seminal are they in signaling sort of complete see change in in in policies versus just

sort of pomp and circumstance. I think that in this speech, in particular, we see the strongest language possible about Iran. The president is hoping that on the fourth of November, when the sanctions on Iran kick in the second round of sanctions uh and Iran is driven to lose its oil exporting opportunities. UM, we will move towards UH. Possibly.

I think they're not saying that, but they're thinking about it, regime changing Iran because that regime will have UM will run out of money, and people are already sending a very strong signal to Tehran that they do not want to continue like that. So that's the main message UM. In terms of other things, the terror forwards China, I think this was very important again in the context of

the elections, to the President's UM core vater base. He's saying, you lost jobs, Steel industry lost one whatever jobs US lost sixty seconds. So this is a core UM voter based message to the American voters. Thank you so much for being with us, Aero Cohen. We really appreciate your insights, Aero Cohen. So you're fellow at the Atlantic Council joining us.

Following the speech of President Trump delivered at the UN General Council, we're broadcasting live from the Bloomberg Interactor Broker's Studios. I'm Pim Fox along with my co host Lisa Abramowitz. Our topic now is emerging markets. Our guest Phil Taures, Global co head of emerging markets at Agon Asset Management. He joins us here in our eleven three oh studios. Phil Tours, thank you very much for coming in. Argentina's paso taking a tumble this coming after the president of

the country's central Bank, Luis ca Puto, resigned. They have tapped a economist for a replacement. Why would you still be bullish if indeed you are on Argentina. Great to be here with you. UM, it's obviously breaking news. We're trying to figure out exactly what the implications are at the moment, but markets seem to be taking in stride at least on the external credit UH and the and

the currency. Again, still trying to figure out exactly implications and UH and the policy changes that they might come back. So when you're investing Phil in this market Argentina, Brazil, UH, how do you factor in the liquidity issues? Because this morning, right after the announcement came out about the Argentinian Central bankhead, there was zero trading in the local Argentinian peso market.

That's concerning It's an a liquid market in general, so this is something we think is generally factored into the prices. So as investors that take medium to long term, we can absorb some of the liquidity in some of these markets. But we try to look through a lot of the the ups and downs, and this was this was a

steep drop that that the markets reacted. Just to go back to what you talked about with Argentina, are you really looking for the International Monetary Fund to come in with some extra money and then that will help everybody's investment thesis. No, I think what we're really looking for is policy change and in a continuation of good ideas, and if they can deliver on primarily getting to a balanced budget in the next year, we think that goes a long way to securing the investment thesis of most

people that like this market. So I want to talk about what you're buying currently. What was the most recent sort of position that you took with conviction in emerging markets? So I'll just rattle off a couple of our of our favorite trades UM and let's say the last month. UM, we've liked Senegal, We've liked Ivory Coast, Turkey, Argentina, have been some some favorites. Those those A've been buying Turkey over the summer. That was that was one of our

our more interesting favorite traits. Yeah. Interesting. I just have to wonder, as a company that over sees more than a hundred billion dollars of assets and you have a lot of money to deploy, how much can you really go into a place like Senegal or some of the countries with less dead or less you know, sort of

smaller markets, considering that you'll be a dominant player potentially. Well, first, a hundred billion dollars is not our total allocation to emerging markets, so we're not trying to deploy all of that. But some of these markets have some reasonable liquidity we can put We can put money to work fairly easily. Just looking at, for example, one of the Senegal government bonds, they are down about six and a quarter percent since the beginning of the year. Are you buying these things

for yield or for capital appreciation? Capital appreciation, although yield is going to be a big part of it. UM. So we got involved in Senegal sometime late summer after a lot of that, after a lot of that decline, they had issued some new debt. The market did received that terribly well. UM as a mix of adding new debt stock and it was just an unfavorable time for markets in general. Primarily, what we thought was, it's a value situation, good economy, stable, kind of a model democracy,

and it got cheap. So I have to wonder. It sounds like you're taking risk and you're somewhat optimistic about emerging markets generally. How does the FED play into this, especially as they prepared to raise rates possibly tomorrow. Yeah, the Fed historically at least our our view on how the emerging markets have reacted to FED hiking cycle. If it's matched with growth, then the emerging markets can typically do pretty well. If not sideways, which with high yield

is just a fine market. UM. To the extent that the FED is hiking um too to cut growth right, to put it into a recession or environment because they're concerned but inflation, then that's bad. Um. We think we're in the former ironment and UH and maintain a reasonably optimistic feed on most of these markets. Really interesting, Phil Torres,

thank you so much for being with us. Philterress, Global cohead of Emerging Markets and Director of Emerging Markets Research at a GUN USA Asset Management with a hundred billion dollars under management three hundred billion dollars under management worldwide at the Global firm. We are broadcasting live from the Bloomberg Interactor Broker's Studios. I'm Pim Fox along with Lisa Abramowitz.

Earlier today, President Donald Trump, speaking before the UN General Assembly, said that China is taking advantage of the US on trade. Here to tell us more about how companies are responding to the situation is Richard Chambers. He is the president and the chief executive of the Institute of Internal Auditors. They're based in Altamont Springs, Florida. He joins us here in our eleven three oh studios. Richard Chain, thank you

very much for being here. You've written that US corporations may have as a false sense of security regarding the effects of trade uh confrontation between the United States and China. Explain why you believe that to be so well, you know, as we've been first of all, thank you for having me uh today. It's it's great to be here. As we so often comment, when these risks start to emerge, UH, there's a there's sort of an initial sense of of denial that is, oh, this can't possibly get that bad,

and it's not going to create problems for us. Unfortunately, sometimes that ends up happening. So as we've been surveying at the heads of internal audit and publicly trading companies and and other organizations, we're sort of seeing some of that initial sense of denial, like, oh, well, this is not going to really have a significant impact on our company,

so we're not gonna worry too much about it. And that's the problem a lot of times is that you see the storm approaching, but you don't respond until the

winds are picking up. What gives you confidence that the storm is picking up in a way that companies are not recognizing, well, I think there have been plenty of There's been plenty of articles and other publications in the past week that have pointed out that, particularly in consumer products and retail, the the impact of the tariffs on all the products that are going to be imported are going to UH have an impact in terms of the

cost of the products. UH will likely impact demand. As refrigerators get more expensive or dishwashers get more expensive, that's going to have an impact on the demand. So, particularly in industries like retail and consumer products, there's certainly plenty of evidence that this is going to have an impact and you're not seeing that reflected by the CEOs, right, Yeah.

What we're seeing at this point is, uh, you know, when we ask chief audit executives, heads of internal audit, is this a significant risk for your company, we're still giving an overwhelming response, No, we don't see this as

a significant risk at this point. Now, when when we ask what what does your company think the risk of the overall economy would be, almost sixty percent of them responded to a survey last week that their companies think there would be a significant risk of the overall economy. But it seems to be one of those yeah, but

it's not gonna affect me kind of denials. I think, do they understand that there's a contradiction and trying to hold those two positions, or do you believe that, perhaps for competitive reasons, they're just not willing to disclose to you how worried or concerned or prepared they are. I think it may be. I think it may be the former, because we see this. I think one of the last times I visited with you guys, we talked about the me too movement and how slow companies were to recognize

the risk that that presents. I see a common thread here in that when risks begin to emerge, there there's sort of a reluctance to look at what is the downstream impact of this risk. So if if in fact the tariffs are implemented to the extent that it appears they are going to be, what will come next? And then what could happen after that? And oh, by the way, how could that impact our company, our workforce, our investment um.

And that's what I think happens all too often, is that when it comes to risk management, there's a slow reluctance to accept that a risk may be very, very detrimental. I want to shift gears a little bit. We were talking yesterday with the Harvard professor who said that the current market resembles something of a bubble in terms of sentiment anyway, that is when accounting shenanigans are more likely

to happen when capital is flowing freely. To what degree are you concerned that that is currently going on, where perhaps when sort of the tide rolls back and credit isn't as free flowing, we could see some serious problems. Well, we've seen in the past when the economy started to show signs of some sort of upheave. Uh, that there is a lot of pressure and analyst expectations are put out there. Companies have to meet those analyst expectations where

they get punished in the market. That's when we see the risks start to rise of perhaps fraudulent financial reporting. I think since the last major round of scandals where fraudulent financial reporting was at the route back in the early two thousand's, we have a lot more regulation and control in place, but I still wouldn't say that are still wouldn't put it out of the realm of possibility. And so once again, when likelihood starts to go up,

that's one of the components of risk assessment. That's when you need to start getting concerned. Are you at all concerned about the tone that is reflected by the behavior of people in Congress? And I'm talking about the House of Representatives as well as senators and even those people in the government and the way that they relate to each other and using those as examples, you know, it's it's interesting. I posted a blog last week about civility

in the boardroom. Uh, it seems to be the only place, perhaps where there's still a lot of civility. Maybe too much, and that board members don't challenge each other. But the point I made is we're living in a society today where civility seems to be held in much less high regard. If if, if you can um and so I do think, and I spent quite a bit of time in Washington

during my days as a federal employee. I do think that the tone in Washington has definitely deteriorated in the last few years, and and that comes from all sides. I don't think that any one party or anyone group is to blame. I think that's part of the challenge

that we face in society. Just real quick. When you talk to auditors who are going around and checking out corporations, is there anything that you've been hearing from them that we haven't discussed that surprised you ums in terms of like reviewing companies and sort of their position and whether they're stronger than they seem or weaker than they seem or No. I don't think that I've I've I've gotten any indication from the internal auditors that there's a lot

of miss there. I do think that the internal auditors sometimes are uh, they get caught up in the culture of their organization maybe and they're a little slower to recognize emerging risk. And it's one of the things that we're always coaching them is that they have to be able to detect the thunder before the storm, because if they don't, then once once the real risks emerge, it's going to be well, where were the internal auditors? And it's very, very important that they get on in front

of these risks. Richard Chambers, thank you so much for being with us. Thank you Richard Chambers as President chief executive of the Institute of Internal Auditors. We are broadcasting live from the Bloomberg Interactive Studios here at Bloomberg's World headquarters in New York City. Facebook what is going on there?

Down at three quarters of one percent today after Instagram's founders left the firm citing disagreements, with Facebook's leader joining us now Shara Ovid, Bloomberg opinion columnists covering all things tech, Shira, how bad is this for Facebook? Because frankly, actually, stock traders are taking it relatively and stride, considering the Instagram really is a profit engine or potential one for Facebook. Yeah, I'm a little bit surprised at the relatively modest stock

declined to be honest. The look, the truth is, it's gonna be hard to know how big a deal this really is because it's going to be measured in what doesn't Instagram do or what opportunities this Instagram miss if it's distracted for a while by this leadership vacuum, or as in fact, it loses some of its kind of essential essence of Instagram nous. Well, sure, what exactly is the problem with the two founders leaving. They've been there for six years. What do they do on a day

to day basis that someone else can't do? Yeah? Fair enough. I mean, look it, it's not uncommon right for a company to acquire another company and then for the CEOs or the founders of those acquired companies to eventually leave. Um. So, I don't want to say this is some kind of you know, criminal matter and things like that, but um, it's true that both Instagram founders were had leadership positions

inside of Instagram. They had set up Instagram as this kind of semi autonomous unit inside of Facebook, which I think was important to the product independence of Instagram. Um, and you know, they had leadership roles in Shepherd ng Instagram through this kind of important period of growth for the company. So yeah, there are plenty of executives at

Facebook who can fill the void. But I don't want to downplay the importance of of Kevin Susterman Mike Krieger, the two founders who at least until now had important leadership roles and Instagram as well. Him is your daughter on Facebook? Is your daughter on Instagram? Oh? Your strike two strike too? That means that you're a better parents. And I I found out the other night that my son had signed up for Instagram. Who he's nine, um,

and he is not signed up for Facebook. Um. But he was out there liking photographs and having followers, etcetera very alarming whole host of other issues. But Sira, it is notable to me that he signs up for Instagram, and that's where that's where the actions act. Can you give as a sense of just how much faster it's growing and how much more dominant it's becoming as far

as a revenue driver than Facebook's really uh eponymous platform. Well, we don't exactly know how fast it's growing because Facebook keeps that data uh private, but it's certainly growing much faster than the main Facebook social network cap which has more than two billion users every month. So is there is a limit to growth when you have you know, a significant chunk of the world's population already using Facebook. But it's clear that Instagram is an important growth trajectory,

both in terms of users. UM. We see in North America the number of daily users on Facebook main Facebook has flatlined recently, and that's a dangerous development for Facebook. North America is not where the majority of users are, but it is where the majority of ad revenue is,

and that's important for Facebook. And we've also seen that as Facebook Facebook has some user growth issues, Facebook has dialed up the number of advertisements on Instagram and pointed a lot of advertisers too, the migration of users to Instagram and their embrace of this relative still relatively novel format that's popular on Instagram called stories, which is this um kind of ephemeral diaries um composed of videos, short videos,

and photos. So Facebook is enormously important to the growth strategy at Facebook, and losing these founders is not great for what's been the most important growth asset at Facebook. Okay, just to set the record right, I mean the two founders sold Instagram to Facebook six years ago. Facebook paid seven hundred and fifteen million dollars. At the time, the

company had thirteen employees and thirty million registered users. Now they've got a billion people using Instagram each month, and Bloomberg Intelligence analysis said that Instagram is worth more than a hundred billion dollars. So it's not the same company they sold to Facebook anymore. It's definitely not the same company. And look both sides, both Facebook and the Instagram founders deserve credit for that huge jump in in in assumed valuation for Instagram. There's no way. Well, I can't say

that for sure. It would have been hard, I think for Instagram to become such a valuable company outside of Facebook's corporate umbrella. But at the same time, it wasn't like Facebook's credit for the growing usage and evaluation of Instagram under its auspices. Well done. Thank you very much. Shira over Day are Bloomberg opinion columnists for all things related to the world of technology. Thanks for listening to

the Bloomberg P and L podcast. You can subscribe and listen to interviews at Apple Podcasts, SoundCloud, or whatever podcast platform you prefer. I'm Pim Fox I'm on Twitter at pim Fox. I'm on Twitter at Lisa Abramo. It's one before the podcast. You can always catch us worldwide on Bloomberg Radio