Clinton takes the stage

Good morning and welcome to Day Five of Global Playbook, coming to you from Los Angeles where the Milken Institute Global Conference is heading toward the finish line.

We’ll be back in your inbox tomorrow for a final wrap — but before then, there’s plenty to keep things interesting today as the official program comes to a close.

Clinton time: The big name today is Bill Clinton, with the former United States president due to take to the stage for the closing session in a one-on-one with chair Michael Milken. The presence of a Democratic heavy hitter like Clinton may help shift the optics of the political leanings of the gathering, given the highly visible presence of Republican and right-leaning thinkers throughout the week. (The Biden administration’s Secretary of Agriculture Tom Vilsack will also speak this morning.)

Golden oldies: Another Clinton-era celeb will close out the conference with a concert late afternoon in the Oasis Pavilion— John Fogerty of Creedence Clearwater Revival. It remains to be seen whether the former president might be tempted to grab his sax and join Fogerty on stage. (Fogerty previously said he’d vote for Bill Clinton “in a heartbeat” if he could run for president again — while the former president sent the rocker a sweet note from the White House congratulating him for his Grammy win in 1998.)

TAKING THE FINANCIAL TEMPERATURE

DAVOS IN THE SUN: The Milken Institute Global Conference has always been a mecca for finance types, bringing everyone from banking chief executives to fund managers to sovereign wealth funds out to balmy southern California to talk business and strike deals.

Always look on the bright side: This year, there was a decidedly upbeat mood in the air about the state of the U.S. economy. As POLITICO’s Zach Warmbrodt reports, the Wall Street mood shift is real.

“The economic activity that’s underpinning all this is quite profound,” Carlyle Group CEO Harvey Schwartz said at the conference. “The vast majority of investors — my clients around the world — when I ask them about the U.S. they would say, I’m over-allocated to the U.S., but I’m going to allocate more capital to the U.S.”

Citigroup chief legal officer Brent McIntosh told POLITICO the mood at Milken has been “remarkably optimistic about the economy broadly, and the U.S. economy in particular” despite dramatic conflicts around the world, persistent inflation and high interest rates.

Taming consumer prices: Inflation remains the big macroeconomic concern. Minneapolis Fed President Neel Kashkari said Tuesday that the Fed may need to hold borrowing costs for the rest of the year.

Get a grip: State Street CEO Ron O’Hanley was one of many voices weighing in on America’s sprawling deficit. He recommended the U.S. gets a “handle around its deficit situation,” adding: “Because if it doesn’t, we’re going to have a real problem in five years’ time.”

When the president calls … Citigroup chief Jane Fraser high-tailed it from Milken to Washington, D.C., where she and several CEOs met President Biden at the White House Tuesday.

EGO BOOST: Meanwhile, new research from Edelman out today offers some good news for the financial peeps gathered here at Milken. The annual Edelman Trust Barometer for the Financial Services Industry shows that global trust in the financial sector is rising.

Not so fast: But despite making it into the “trusted” category this year, financial services still rank lowest among all trusted industries measured in the survey. Beyond finance, business remains a more trusted institution than other sectors like the media, government and nongovernmental organizations, according to the research conducted in 28 countries across the globe.

WELLNESS GARDEN

DOWNTIME: Playbook took a moment to soak up the vibe in the Wellness Garden this week, where massages, essential oil treatments and puppy cuddling sessions have been taking place in the California sunshine.

Bottom line: The wellness industry is big business, and nowhere more than in California, which has long been a haven for the health-conscious and self-help gurus.

“Wellness has exploded from a niche, somewhat fringe, pursuit to a very very big and mainstream business,” Alexia Brue, co-founder of Well+Good, said on a panel Tuesday. The global wellness economy was worth a whopping $5.6 trillion in 2022, according to the Global Wellness Institute.

Just chill, man: Not that anyone was discussing numbers in the Wellness Garden. Instead, it was all about stepping back, reconnecting with your inner self, and “finding your purpose” (although let’s face it, that’s easier when you have the kind of cash and power that many in the Milken set enjoy).

California scene: Around lunchtime, a group was undergoing a “soul-led journey” meditation class, top-level Milken attendees queued up to cuddle puppies, while the latest craze — sound-healing with bowls — also proved a popular attraction.

Summer camp for grown-ups: “It’s become a little bit like summer camp, where year after year, we have the same people coming back and they request the same practitioners or catch up on what’s been happening in their lives, like “how’s your daughter doing? It’s really special,” said wellness host, the actress Amy Dewhurst, who was busy helping people navigate through the wellness offerings.

PUTTING CLIMATE ON THE AGENDA

EARTH MATTERS: Amidst a crowded agenda where discussions on artificial intelligence, finance, and public policy fight for space, it’s sometimes hard to make an impact at the Milken conference. But Hawaii Governor Josh Green believes it’s high time that the climate threat moves front and center.

Spilling to Playbook: “The United States has to be much more serious about climate change,” he said in an interview. “I see it from the perspective of a governor whose state was hit hard. We know from personal experience that climate change is impacting states and countries — California, Hawaii, Canada, New York. These are very big issues.”

Drastic measures: Even before the devastating fires that ripped through Hawaii last year leaving 102 people dead, the state was considering ways to future-proof itself financially from the impact of global warming, and in particular rising sea levels. These include a “climate impact fee” to be levied on tourists, which Green hopes can then be leveraged to raise even more money.

Courting the private sector: One of his key objectives this week at Milken is attracting private investment. “I’m having several meetings a day with fund managers, investors; those who are interested in things like social impact bonds, environmental impact funding,” he said.

AI’s carbon footprint: A connected issue breaking through this week at Milken is the energy usage implications of AI, with delegates pondering its climate footprint.

“Look at this conference — how many panels do we have on AI?” White House senior adviser for energy and investment Amos Hochstein said Monday, my colleagues at POLITICO’s California Climate newsletter report. “How many do we have on what are the water and power resources required to build out the infrastructure for AI? A lot fewer, if any.”

The price of data: With the data centers used to power AI straining energy resources in many countries, the infrastructure underpinning the AI revolution is under more scrutiny than ever. That’s not to mention AI’s demands on critical minerals like copper, writes POLITICO’s Blanca Begert. International commodity trader Trafigura has estimated that data centers to power AI servers will likely require an additional 1 million metric tons of copper by 2030.

AROUND TOWN

CELEBRITY WATCH: One of America’s best-known TV personalities made an appearance at the conference Tuesday — Sesame Street’s Grover. The blue furry Muppet appeared in full scientist mode on a panel about helping children to navigate the climate crisis. “You can tell I’m a scientist because I’m not wearing a lab coat,” he told the audience. “If I was wearing a lab coat in this town I’d be a beautician, and probably have a nice endowment too.” Touché.

PLACE TO BE SEEN: While most of the action is centered around the Beverly Hilton, the Waldorf Astoria next door offers arguably the swankiest location for meetings. Reservations at the main restaurant have been booked out all week, while representatives from some of the world’s biggest banks and crypto startups mingled on the rooftop bar among the poolside cabanas.

BREAKFAST TIP: The clientele at the Milken gathering may be super health-conscious, but the morning offering at the Wilshire Garden showcases what America does best: hearty breakfasts. Don’t miss the eggs and home fries to set you up for the day.

QUOTE OF THE DAY

Mariano Rojas, an economics professor at Mexico’s Technological Institute, giving some much-needed perspective during a panel on happiness and sustainability:

“What is really important for life satisfaction is not physiological needs, not self-realization — it’s basically love and belonging. People who satisfy their love and belonging needs are very satisfied with life.”

SPOTTED

— Basketball legend Candace Parker standing out from the crowd in a killer turquoise Gucci tracksuit

— Australia’s Ambassador to the United States Kevin Rudd catching up with Kevin Hassett, former chair of the White House Council of Economic Advisers in the Trump administration

— Miami Mayor Francis Suarez chatting to former House Speaker Kevin McCarthy

— Actor Liev Schreiber and British politician James Bethel miking up in the green room

— Hugging some pooches in the Wellness Garden: Cassandra Pye of Lucas Public Affairs, Beth Miller of Miller Public Affairs, Fiona Hutton of Fiona Hutton & Associates, FOX 11 anchor Elex Michaelson. (h/t Jeremy B. White)

— At the Abu Dhabi Investment Council reception at the Peninsula: Saeed Al Mazrouei, CEO of the Abu Dhabi Investment Council; Michael Milken; Josh Harris of 26North; Dean Mihas of GTCR; Orlando Bravo, founder and managing partner of Thoma Bravo; Jon Sokoloff, managing partner of Leonard Green & Partners

AGENDA

— 6 a.m. Aligned and At Ease Yoga

— 8:30 a.m. Things that will Blow your Mind. Lisa Dyson, Air Protein CEO; David Ferrucci, Elemental Cognition CEO; Keith Gottesdiener, Prime Medicine CEO; Michael Mager, Precision Neuroscience CEO

— 8:30 a.m. America250: Reinvigorating the American Dream through Sport, Celebration, and Education. Janet Evans, LA28; Gianni Infantino, FIFA; Rosie Rios, America250 Commission; Lindsey Vonn, Olympic champion and entrepreneur

— 8:30 a.m. Defining the Next Era of Democracy and Public Diplomacy. Valerie Jarrett, CEO Obama Foundation; Ken Hersh, president of George W. Bush Presidential Center; Paige Alexander, CEO of the Carter Center; Kevin Thurm, CEO of the Clinton Foundation; David Trulio, CEO of the Ronald Reagan Presidential Foundation and Institute. Moderated by POLITICO’s Eugene Daniels

— 10 a.m. Reshaping Global Digital Innovation Systems. David Levy, vice president worldwide public sales, Amazon Web Services; Sri Chandrasekar, managing partner with Point72 Ventures; Dennis Gada, executive vice president of Infosys; Sandy Kaul, senior vice president of Franklin Templeton; Jean-Edouard van Praet, CEO of Brilliance Financial Technology

— 10 a.m. The Rise of Asian-American entrepreneurs. Bing Cheng, co-founder of Gold House; Payal Kadakia, founder of ClassPass; Dave Lu, founder of Hyphen Capital; Smita Satiani, co-founder of Alaya Tea; Shiza Shahid, CEO of Our Place

— 11:30 a.m. A conversation with U.S. Agriculture Secretary Tom Vilsack

—11:30 a.m. Powering Progress: HBCU’s as Hubs for Talent and Innovation. A conversation with NBA All-Star and Olympic gold medalist Chris Paul

— 1 p.m. Bold Proposals for Protecting the Free-Enterprise System while Closing the Wealth Gap. Financier and former U.S. Treasury Secretary Steve Mnuchin; John Hope Bryant, chair and CEO of Operation HOPE; Brad Gerstner, CEO of Altimeter Capital; Teresa Ghilarducci, professor of economics and policy analysis at The New School.

— 2:30 p.m. Closing Plenary: Shaping a Shared Future — A Conversation with Bill Clinton, 42nd President of the United States.

— 3:45 p.m. Closing Concert and Reception featuring John Fogerty

Thanks to Zach Warmbrodt, Peter Snowdon, Blanca Begert and editor Sonya Diehn