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Cantor Fitzgerald CEO Howard Lutnick on the potential for deals in Davos, Ireland’s economic recovery and the impact of low interest rates.
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Well think about it if you suddenly tragically lost about two thirds of your employees could you ever rebuild and be one of the most in demand CEOs at the World Economic Forum.
But claimant is in Davos Switzerland with the man who did just that.
He's an all American CEO who has opened more than 100 businesses worldwide many of them after 9/11.
He is Howard -- the chairman and CEO of Cantor Fitzgerald and the agency partners and -- -- is his stomping ground nineteen years you've been coming.
The -- -- obviously due mostly for networking deal making and why are you here.
So first you meet so many people you can just stand still in the middle of the Congress Center and not.
In -- out everybody comes -- -- load everybody talked to them.
And then you can see them outside of the normal in the office business environment.
You know I met very costs and runs a real estate business join my board and then later aboard his company all from.
Thomas outside that there there actual -- for at least the speeds are sound.
That's right it's it creates the personal relationship that you know that you going to be able to business outside and and -- why can't we should mention the real estate business that.
Apparently the Genesis of it was here has been huge free -- tests that we started with Newmark Knight Frank.
And then we've what -- and Ellis brought the two together and it's really doing great and very very low interest rates.
Is great for real estate the commercial real estate obviously -- can finance -- very cheaply.
Right and that's lowest it's always good for somebody not -- good for figure in the politics business had a relative business the sex not great for sainthood but -- And good good at least for that part of your business which is brought in a lot of revenues.
What is the most interesting conversation you've been a part of since you arrived and office this time around.
So last night admit that -- shock which I I only learned this trip.
Is -- Irish worth the prime minister of Ireland and what I thought was really interest thing.
Was that he was very focused on business he team here at his whole group is here.
To say what open for business we're focused on business unity here in France and they're talking about bank compensation then and cutting in the very.
Negative towards business here was Ireland completely completely.
Here focused on trying to bring jobs and to try to get his young people jobs -- focused on building and -- -- but that was just refresh.
And you all the business in Ireland you're doing business there correct -- -- we just what -- insecurities about ninety people but I think we'll add hundreds of jobs there and and that's the idea you know if it's a friendly environment.
Grade education you know -- great city I think.
You are one of the some twenty not many firms.
Who have been granted the ability to do trading on behalf of the Federal Reserve -- on behalf of the government.
You know if they were to finally tighten rates.
With that help your business of it I -- might hurt your commercial real estate business and let.
You know ripped through rates at zero to a quarter percent have have killed certain segments of of business out there for.
Course -- -- have a two year note that points to.
Without what probably is poised to that's -- interest rates that's sort of did you know you have a million dollar investment in US treasury -- coffee.
Yeah I was gonna say that's changed -- -- -- that hasn't seen a semblance -- -- -- -- -- is when the this seven trillion dollars of this liquidity this quantitative easing that the federal government -- just thrown in that's sloshing around that's causing these rates so so low.
But -- really big US treasuries and our investor will -- -- -- UK it's a storage facility it's not really an investment.
And that what's gonna happen is when they try to take that money out.
Which is going to see is all the analysts of the world immediately gonna say okay money's coming -- even if they can do this much out.
They're immediately go to -- point to.
Remember in 2007 interest rates were up over 5% correct what's gonna happen is that the scary part what's gonna happen when they try to start to take it out.
And the answer is -- -- -- got to look to push rates hard that way when interest rates come back up.
Think of it the federal government's cuts to pay interest on the -- -- sixteen trillion dollar deficit.
And turns around the cuts what is your best bet in 2013.
So I still like all the low interest -- investments electoral gold -- well.
Brett I think art does well diamonds do well -- -- -- real estate but commercial real estate it's gonna do great.
Anything that has a piece on low interest rates so commercial real estate is probably.
The Greek place where people can invest make -- and get growth and succeed in the long term so I really like real estate as a business.
You saw that Blackstone what about.
Residential.
Yeah right because they see the same thing and at a fixed about the rent to -- -- of the idea is.
Up up up comes real estate because interest rates so -- Howard thank you very much.
-- -- next chairman and CEO of Cantor Fitzgerald and BGC partners we will bring it back to New York where he's actually based.
-- very decent guy who capsule reducing god thank you was -- are.
