will business news on that as well come 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 shelled accomplishment 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's 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 investments 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 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. 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 geos civil society with governments and with their competitors with their supply going players 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 of now 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 rudolph 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 500000000 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 blackrock of 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 a this is more lead 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 it 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 divestiture 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 the 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 now the milan 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 eyes 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 send up each i 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 it has tremendous positive sites through it but you know it has 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 pichai says he's pushing for a global approach to ensure ai isn't misused. as democratic countries have disparate sort of values we need to build on those values the mid-term and the approach here are we are doing it in a way that society and that means making 3 uyghurs in the bios that we build and pursued for safety ph i praised the fledgling e.u. legislation as a good start because the rest of the world mustn't be too far behind. to germany no where prosecutors have carried out

a number of raids. 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 but he says suspect the car maker was using that she device that falsified the cause of missions during testing to be sure it's the latest company to become embroiled in the diesel gate scandal that erupted in 2015. and on the same no german comic a dime said additional charges related to the diesel emissions down there would cost the company a further $1500000000.00 euros this year the mercy it is make us said that product recalls an ongoing court cases weighed down results for the year ahead last year's profits were down 50 percent on the previous the company has pledged to tighten its belt in the face of rising costs. and also much else. let's check in with our financial correspondent conrad business standing by in frankfurt

. not the best news from dime there but otherwise things are looking quite good the german stock exchange dollar. absolutely god i can tell you that today this morning the german share with extended stacks our dog oxen 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 to come 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 friends stock exchange celebrating an all time high. while capitalism is coming

under increasing fire even by people gathered in davos the elite of companies and what's the view there in the markets is that it's all sort of a whitewash 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 alice 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. 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. . and that's it from me on the business team here in berlin thanks for.

his response was. glaze 11 players. respect you know that 77 percent. are younger than. me and. you know a lot of time all voices. on this 77 percent talk about the issue. for almost all of the flash from housing boom boom time this is what.

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is due to be news live from berlin a deadly virus scare a new strain of corona virus claims more lives in china and fuels fears of a global pandemic with no vaccine health officials are trying to contain the outbreak as millions of chinese embark on trips ahead of the lunar new year holiday the virus also detected outside of china now the world health organization is holding an emergency meeting in geneva also coming up anger boils over a priest says crowded migrant camps.