In the first 10-15 mins he makes some interesting points (I will summarize shortly), then he goes into some mushy stupidity for a while, and then he ends off the question answer with another good string of facts.
First time hearing him speak, and I didn't expect the Indian/Southern accent. Also, interesting how he only spoke about things from a global perspective -- GDP, Political problems, etc -- shows a true macro perspective. Probably, what you would want out of a CEO.
A. Said that a lot of uncertainty in the market specifically
- Europe, whose crisis continues to cause a 1%-1.5% decrease in GDP around the world.
- US debt crisis
- How will China continue 9-10% growth in the future
- Bank regulatory issues
- Political Issues -- 32 elections, 10-12 in major countries
Underscoring all of this, the world needs to create 200mm jobs now, and 400mm over the next 10 years.
B. Need to figure out Europe -- 25% of world's economy.
Outlined Three Problems
a. contagion risk
b. Europe has a currency union, but no fiscal union
c. how will bondholders get paid back from countries with exit risk -- Greece, Portugal, Italy, Spain etc. Will they get paid back in Euros or something else?
C. Reasons for optimism
i. Made significant dent in energy
a. last couple of years made 2.4t of boe in discovery, and we use 33b boe/year
ii. Emerging market growth
iii. Infrastructure investment in USA and abroad, Brazil will need $1.5t in
infrastructure over the next 10 years
iv. trade, global capital flows have increased
D. General outline of the world and how Citi fits in
1. 150 cities will make up 50% of world's GDP. Citi is in 120 of those cities
18 yo in those cities have more in common with their peers in cities around the world than their parents. Citi wants to have one system in each city, have a unified system.
2. Global trade/capital flows -- connecting those pipes between countries is the most important. $3t in cash everyday moved in their "pipes".
3. Data -- 160 countries, consumer data, flow data, company data.
Translate that into info into meaningful content.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.