If you closed your eyes and listened to the signs at the Milken World Conference this year, you would think the country was on the verge of a recession.
One of the most common words pronounced by executives and investors was “uncertainty”. The speech of the secretary of the Treasury Scott Bessant – not Peyton Manning or Tony Blair or Henry Kravis – was the hottest ticket in the city, the participants in line for his opening remarks.
Pessimism about the United States was so high that professional investors really seek to put money to work in Europe, long ignored by American companies due to the slow growth of the continent compared to American companies.
“The brand is definitely tarnished now,” said CEO of State Street, Ron O'hanley, echoing the comments made by the founder of Citadel, Ken Griffin and the CEO of Apollo, Marc Rowan.
“The real question is whether it is permanent,” said O'Hanley, whose company manages 4.7 billions of dollars, on a panel on the macro environment.
THE “Animal minds“The radiating energy of the class of investors and C-Suites in Davos was not found on the stages of Milken of Beverly Hills, thanks to the pricing policies of President Donald Trump, which upset the global markets of equity and obligations.
“The atmosphere was incredibly optimistic” in Switzerland, said Katie Koch, the CEO of the 195 billion dollar credit investment manager, TCW, when she was sitting next to O'Hanley on stage, but it is “the opposite now”.
The gloom on stage had no impact on the atmosphere
The Beverly Hilton was full of 5,000 participants this year, the greatest performance of the conference since 2019, despite the price of tickets from $ 25,000 per room.
Lines served in the hall to see other speakers like Jessica Alba – even the tennis star Novak Djokovic was seen waiting to return.
The participants competed not only for the seats, but which could land the invitations to the coveted after the holidays, held at the Bird Streets Club reserved for members, or restaurants like Funke, Cipriani and AOC. One of the most difficult to get invitations was a dinner with Bessent on Sunday evening.
A milk participant lounging on a chair intended to reset his nervous system; A box with a host hologram from the Michael Milken conference, and another participant in a “Puppy Playtime” event organized by the PGIM active manager. Bradley Saacks
By walking in the Ritzy Beverly Hills Hotel, speaking with the participants in the conference well-being garden (with chairs of puppy playing and “resets of the nervous system”) or during the many after-parties organized by banks and giants of investment capital, the atmosphere was much more positive.
“This is not the type of food you would see during a reception during a recession,” a revelers said on Monday evening, while a tuna tartare tray passed. The individual, who has been investing in private markets for decades, said that he is not worried about the economy that after the parties have limited the number of drinks that each person can obtain from the bar.
The wheelhouse, capital beneficiaries and iconnections organized a Milken World Conference Day on Monday evening. Ben Bergman / Bi
People were encouraged by the comments of the Treasury Secretary Scott Bessent binding the prices for deregulation and tax reductions. While many asset managers do not deploy capital, they are still fundraising and meetings with representatives of sovereign funds of the Middle East were among the most difficult to obtain. Once he has finished talking to the panel, the Saudi investment minister Khalid Al-Falih, was invaded by participants on Monday afternoon.
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There is also a lot of optimism around technology and the promise of AI, with autonomous Waymo cars that deposit many participants and a box the size of a refrigerator in the hall, allowing passers -by to speak with a hologram of the host of the Michael Milken conference in several languages.
Milken interviewed the CEO of Nvidia, Jensen Huang. Ben Bergman / Bi
Elon Musk, who was a popular headliner last year, chose to stay in camera this year, giving an interview to Milken in front of a crowd only invited on Sunday, according to someone who attended. Milken also interviewed the CEO of Nvidia, Jensen Huang on Tuesday in front of a crowded audience.
During a party held on Sunday at the Beverly Hills Manor of billionaire Nicolas Berggruen to celebrate the fifth anniversary of his Tech Philosophy magazine, Noema, interpretative dancers interpreted by the swimming pool before journalist Kara Swisher organizes a debate on the question of whether AI makes us more human.
Perhaps one of the best metaphors for mixed signals during elite collection could be lunches in a stuck box distributed every day to the thousands of participants: an ostensibly austere offer containing more luxurious options inside, such as salmon with tabbouleh and chocolate mousse.
It seems that the United States is always a difficult habit for many investors to kick.
In the same time as deep breaded traps would criticize trade policies or speak of international opportunities, they would mention the overwhelming size of the country's capital markets or innovative culture.
The CEO of Johnson & Johnson, Joaquin Duato, a double citizen of the United States and Spain, paraphrased a quote from Winston Churchill to describe the thought of companies on the future of the greatest economy in the world: “The Americans are still doing the right thing, after all the rest.”
