intelligence can be dangerous and must be tightly regulated already. this is business as are the updates on asian and global business news on that is welcome is the purpose of a company just to make money and create value for shareholders or is it to guarantee social benefits like work places and decent wages and american might answer the question differently than say european but now with climate change looming skepticism over traditional shelter capitalism is coming from all corners and it's getting more and more applause in davos where the international business elite is gathering for that annual powwow the world economic forum. one message coming out of davos is that companies want to take more responsibility for the environment and one is ahead of the pack one of the world's biggest money managers blackrock is working with germany and france on creating environmental funds $500000000.00 for sustainable investment and the trillions of dollars that blackrock manages will be invested in clean projects. we're going to turn down any

companies that don't take the long term environmental and climate risks into consideration in their corporate management we take coal mining for example we will withdraw from companies that continue to rely on coal will refuse to take part in those projects and 14 blackrock is still one of the biggest investors and coal projects such a huge company changing its policies can have a tangible effect but is this just green washing or a serious commitment it's not something that superficial it's not something that they're doing to greenwash it's something that fundamentally change is there economics in the way they do best us if we actually think about companies that are performing well financially they're also usually the ones that are doing better on environmental metrics on social metrics and governance metrics what would a new sustainable capitalism look like there are plenty of initiatives around the

world to help companies be more sustainable and we're told there's definitely rising demand for such services especially since companies are affected by complex global problems which they can't solve on their own. well it looks like with the goal of aeration is the new competitive edge to companies so those companies that know how to collaborate with n.g.o.s civil society with governments and with their competitors with the supply chain players that are really. just compete those hopefully have the future but the $500000000.00 that black rock is collecting for climate funds won't go far in solving the world's climate woes. and let's go straight to davos where my colleagues another milan is standing by as an environmental and social sustainability as key ingredients of market economies how the high priests of capitalism gathered in davos this. well they must have known that was coming after all the entire event is called

stakeholders for a cohesive and sustainable world so the clue is in the name so all the very welcome efforts but are they the right kinds of effort to make to that end i am joined by professor kenneth rogoff is a professor at harvard university the former chief of the international monetary fund and a former chess grandmaster i hope i haven't missed anything but mr let's jump right in let's start to with this saw with this announcement by black rock and their $500000000.00 equity fund is that a lot of money it doesn't sound like a lot of money for the things they're trying to achieve. was it actually 500000000000 not 1000000000 that is not a lot of money but of course there are tremendous pressures from their stakeholders from society for them to do something and there's a market for it i don't think everyone's going to suddenly do that but they carve out their own brand and there are a lot of protests around at harvard the students sat down and blocked the harvard

yale game in the middle of the game wanting divesting of. energy firms and such so you know they're responding to that indeed they are but who is really leading the charge here is so you have the black rock make the announcement that they were putting sustainability at the core of their strategy now germany and france have joined in with them so would you say this is this is more led by the state or more led by the private sector. well i think there's some of both but in this the public leads that the reason the state is interested is because there's a lot of pressure from society and some firms are shaping to that obviously the firm's job and it's probably you know in their legal contracts in some way is to maximize shareholder value maximize their returns but again there may be a market for doing what they're doing and they're seeing themselves as cutting off other trouble later that sounds very much like an everybody wins approach is it

well i mean it's a strategy the firms who they're pulling their money out of are not winning they're probably not losing a valid much because as big as black rock is i don't think it moves the market overnight but you know there's this tremendous surge to do something the main actions have to come from governments i believe there needs to be a global carbon tax divemaster will do nothing if you don't put in a global carbon tax and of course a lot of the carbon emissions now are coming from asia from india from china europe and united states of flatlined and we need a global carbon tax that of course europe the united states i think need to do something to smooth the way for india and china they're much poorer they're much more dependent on big energy growth to feed their populations to provide jobs and it's a very difficult global conversation this is

a little piece of it thank you very much professor kenneth rogoff at heart from harvard university thank you. our correspondents know the alarm reporting there the c.e.o. of google on an alphabet called for global regulation on artificial intelligence at the world economic forum meeting in davos sundar pichai warned of the dangers of new technology as well as the benefits he says legislation will be needed to avoid the misuse of machines by venture arms high tech guys are always watching him down force this time it was the turn of one of the biggest names in technology to be captured on camera so breaks alphabet c.e.o.'s and r.p. china was interviewed by the founder of the world economic forum klaus schwab clay discussed perhaps the biggest ethical challenge facing the tech world is artificial intelligence it's more profound than fire or electricity or any of the other bigger

things we're working on artist tremendous positive sides to it but you know it goes real negative consequences. facial recognition is one of the alphabet bosses examples though it can be used to help find missing people for instance it's also a gift to anyone trying to carry out mass surveillance that message may seem surprising from the head of an organization often criticised for its mass gathering and good data. nevertheless says he's pushing for a global approach to ensure ai isn't misused. as democratic countries the disparate sort of rally use we need to build on those values and make her me approach here i we are doing it in a way that serves society and that means making 3 uyghurs in the bios that we build and that's the course. i teach i praised the fledgling e.u. legislation as

a good start but says the rest of the world mustn't be too far behind. to germany now where prosecutors have carried out a number of raid. in relation to the auto industry's diesel emissions scandal it's a big motors come from that its german headquarters were raided as well as research and development centers police as suspects the comic who was using it she device that falsified the cause of missions during testing to who she was the latest company to become embroiled in the diesel gate scandal that erupted in 2015. and on the same note german comic a dime said additional charges related to the diesel emissions scandal would cost the company a further $1500000000.00 euros this year the mercy it is make us said that product recalls and ongoing court cases would weigh down results for the year ahead last year's profits were down 50 percent on the previous year the company has pledged to tighten its belt in the face of rising costs. and ultimate.

as check in with our financial correspondent conor standing by in frankfurt. not the best news from diamond there but otherwise things are looking quite good at the german stock exchange ali. absolutely god i can tell you that today this morning the german share with extended stacks our dog index managed to jump on a new record high unlike other equity market indices unlike other stock markets german blue chip index stacks took quite a little while to manage to jump on such a record highs there were 2 there are too many difficult sectors in this index like for example the car makers but also deutsche bank a company that saw a lot of its reputation and share price fall over the recent years now optimism is really returning to the stock trading floor more and more people here are convinced

that this year the german manufacturing sector will manage to recover. so the francis stock exchange they're celebrating an all time high. while capitalism is coming under increasing fire even by people gathered in davos the elites of capitalism what's the view there in the markets is that is that all sort of a whitewash moral why it was or is it does capitalism really have to change. oh definitely capitalism has to change and this is a conviction that everyone in the financial world really has what's happening now is that something that people have been talking about for a long long time is just now becoming mainstream you know for many years analysts have demanded from companies that they'd better describe the risk that they have in their books related to emissions related to the cost in relation to climate change now. slowly the companies are doing it today reuters reports that b.p.

plans to put a price tag on not only the emissions of its own operation but also on emissions from its products that's really a huge overhaul for that oil company owner who's in frankfurt thank you. saudi arabia has hit back against allegations that have hacked the phone of amazon founder jeff bezos the saudi embassy in the u.s. called the claims absurd the apparent denial follows reports that saudi arabia's crown prince mohammed bin solomon used a phone was used to send a virus to investigators believe the intrusion to private photos of the american billionaire being released to the u.s. used by this. and that's it from me on the business team here in berlin thanks for .

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