annie: this is a new chapter that blackrock is working.umps together a lot of disparate themes. governance, social, but this letter will he took environment into account in a big way, and focused particularly on climate change in the climate crisis. isry: how much pressure blackrock under compared to other asset managers when it comes to sustainability? annie: blackrock has faced a lot of blowback from protesters, activists. it's really been escalating. they are really in focus because they are the biggest asset manager. firms haveig index also faced similar calls to action. now that blackrock has taken this step, the ball is really in their court for what they do next. the question is how vanguard and others may follow as well. amanda: one of the interesting aspects, it feels like a good investors, corporations are in front of policymakers and policies. we are seeing environmental policies go the other way, and you have one of the leading money managers in the world saying we take it seriously. is that a strange disconnect to see in the c

where is blackrock now? if this happens, where does it go? this is a great pr moment for blackrock, as was it joining the climate 100 group pushing for better corporate governance around social environmental issues. we don't really know how this will translate. downll find that out later the road. at this point it looks good, and clearly larry fink has a lot of but actually, this is an has leaked on this target. kruk has an a normal amount of resources. it is talking about embedding forecastility into its , its risk on the active and passive side. it is talking about a comprehensive embedding of sustainability into its business model, and that, we don't know yet, but in theory sounds like a pretty big deal. vonnie: he's been followed around by protesters and such, so it's been in his face. blackrock has $7 trillion under ofagement, and about 2/3 that is in products linked to indexes. how do you shift money out of indexes or out of the companies you don't like in those indexes? alastair: that is the real problem for blackrock. , which passive

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 companie

the chose to honor the lead of blackrock france is nothing but an anecdote blackrock is simply the dark side of the pension reform john transource you believe president of blackrock france is promoted to officer of the legion of warner on january the 1st as a reward for pillaging of our pay as you go passions the presentation of the legion of honor it is on francoise to relieve the provocation it reveals the close ties that exist between the graun and the world of finance he's selling the retirement system to american pension funds it's a big deal strikes against pension reform and now into their 5th week it's the longest running strike in half a century across problems people have taken to the streets to let the government know that plans to merge 42 different pension plans into one universal system at the same time as raising the age of retirement are not welcome so. if we lose on pension reform lose and everything and the next issue is the form of social security and social protection. we are not at all in favor of the status quo we are in favor of proving this system but not tearing

blackrock itself owns 6% of the big energy companies.'s a lot of room, but we don't have a lot of the details on exactly how larry fink plans to pursue this. for now, we just have the general, that they will divest from some of these higher sustainable risk companies. alix: thank you for that. still with me on set is lauren goodwin to of new york -- is lauren goodwin of new york like investment. there's only so far they can actually do anything versus their passive funds. how do you look at this shift? of investment,a and we are moving in the same direction, of paying attention to principles in terms of investing is an important part of the shift. one of the reasons it is hard to find these investments is how we measure what is sustainable, what is a good governance principle, is challenging. the more that investors demand this type of risk mitigation and the more that investment firms move in this direction, the more information we have, companies will be more focused on meeting the metrics that are deemed appropriate for these type of

blackrock manages $7 trillion.only divest from the high-risk, nonsustainable companies and their active portfolio. they have a lot of passive funds under management. if you are tracking an index, you are not meeting your mandate if you are divesting from companies that insist -- exist. that should make a difference. for their passive funds, they say they will be more active in pushing those companies they hold to be more sustainable. if they are taking a more active role, this should trickle down to other money managers. typically they take more of a passive role in deciding how those factors should go into the companies. they have a standardized checklist. they mostly focus on the governance aspect. it is unclear whether this will be a more active role that black -- blackrock we'll see. they hold enough of these companies that if they wanted to, they could have a sway and how they run the. anna: very interesting to see passive.active will go the u.s. has dropped its label for china as a currency manipulator. forci

>> blackrock is the biggest fund manager in the world.ally at they have to shape shift because the world is changing. client,ant to get a new a younger person who is more interested in climate change, you have to be selling something. blackrock has come into the light it really does not want to be in. it needs to come up with something. thank you both. companya's airline thought about putting its pilots through simulated trading -- training. this is bloomberg. ♪ ♪ let's get more on the ongoing crisis. boeing considered putting pilots through simulation training. internalccording to communications. the airline abandoned the idea. let's get more on this with our managing editor for global business. why did boeing push back on this training? simulator training is a fairly complex affair and it can complicate and make a new plane more expensive if you have to have the extra level of training. this is something that boeing has always pitched to its customers. it said the max is an extension of the 800, the previous model, and is not that diffe

well ahead of the forum which kicked off today american money management firm blackrock has grabbed the attention of the finance world its c.e.o. larry fisk announcing the company which quote exit investments presenting a high sustainability related risk for a start divesting hundreds of millions of dollars from coal lng to businesses and that could be a big deal black rock is the world's largest fund to manage it holds close to 7 trillion dollars in assets and to put that in perspective germany is anti economic output for 2018 was closer to 4 trillion dollars managing that amount of money means a correspondingly high level of influence in the corporate wealth in germany alone blackrock counts as the biggest single shareholder in the following tax companies you have the mole now earlier we talked to sasha stephan of the frankfurt school of finance and management and i asked him how big a decision this is i think it's a big deal here that all joined also about companies banks insurance companies and trying to take specific actions were question is on the one hand how they can do words an

now ahead of davos american money management firm blackrock has grabbed a great deal of the attention of the finance world its c.e.o. larry fisk announcing that the company would quote exit investments presenting a high sustainability related risk in quote for a start to festing hundreds of millions of dollars from coaling to businesses that could be a big deal black rock is the world's largest fund manager it holds close to 7 trillion dollars in assets to put that in perspective germany's entire g.d.p. for $2800.00 was closer to 4 trillion dollars now managing that amount of money means a correspondingly high level of influence in the corporate world in germany germany alone black rock counts as the biggest single shareholder in the following facts companies siemens buyer among them the question now what could its decision mean for the broader world of finance and for more on this i'm joined by sasha stephan of the frankfurt school school of finance and management sush it's good to have you with us this would seem like quite a momentous decision from blackrock can you shed some persp

huge change but in a same time there are still questions about how serious of these companies are blackrockgiving a bit more concrete description there but others like siemens with a strong in mind project some questions about whether they're acting fast enough briefly if you could. well protestors have hit the snow here carrying blazing planets saying that the likes of credit suisse just funding way too much as far as fossil fuels go the black rock is still waist deep in fossil fuels and that siemens is really not helping the planet all in supporting a stray the biggest coal mine to date one of the biggest in the world a project that will see huge amounts of c o 2 polluting the planet. or i've been physical in davos will come back to him in just a moment. now corruption is a daily part of life in many countries around the world but doesn't have to be that's according to transparency international which has released its new annual corruption perceptions index reports it hopes that by doing so it can draw more attention to the issue. people around the world are showing their rage at corrupt

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 their economics and the way they do business if we act. we think about companies that are performing well financially they're also usually the ones that are doing better on environmental metrics and 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 what that girl liberation 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 players that are real

of the world or etfs from blackrock. >> the top three when you look at state street, blackrock and the third one. >> people. >> they keep getting bigger and bigger not knocking them at all just worry if everybody is buying the same stuff. sit tight. the articles of impeachment are being signed by house speaker nancy pelosi in washington right now. lets take a look in. once the speaker is done with signing, there will be a physical move of that document from the house to the senate it will be hand delivered to the senate, where the trial will begin at some point. obviously a lot of disagreement about how the trial will look, whether witnesses will be called, what witnesses could be called as well the trade deal on one hand and the impeachment articles being signed on the other. it was a busy day, ray odd day, even by d.c. standards we'll take a short break, back right after this make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness

we have blackrock, that will be interesting. earnings.re u.s. of america and 45 minutes later goldman sachs. a busy lunchtime. on china are staying put. the trump administration is not likely to remove levees until after the presidential election. and he moved to do so will be contingent on beijing's compliance with the paid one trade agreement. selina wang has more, she joins us from beijing. how long will it be until we see a rollback of existing tariffs? what is the timeframe? selina: it looks like we will have to wait at least 10 months before we see a significant rollback in tariffs. are sources are telling us the u.s. and china have reached a tacit agreement that the u.s. after the presidential election will review and consider pulling back tariffs depending on progress on the phase one trade deal. this is separate from the tariff s on 120 billion dollars of goods, that will be in place, it was announced in december. the maintaining of the tariffs is the way of the trump administration's way of enforcement. it also allows trump to go on th

of blackrock a few days ago and blackrock is one of the biggest fund management companies in the world 7 trillion dollars in assets invest in a lot of companies a lot of companies companies that you and i all know across the world and the c.e.o. larry fink who is known as you're only a very progressive c.e.o. as they go said we're going to begin to think that we're going to begin exiting investments from things like coal and we're going to create a sustainability kind of barometer for our investments and we're going to say that if your company doesn't match up to our expectations we will consider divesting and that is seen as a very big signal from one of the world's biggest financial companies to say something has to happen and they're not doing this or at least perfect they're not doing this because they you know necessarily believe strongly in climate change obviously does but it's because also it's be. because it's a reality he says that is affecting investments it is over the horizon is where he must look and this comes as people like 20 people who support climate change policy th

. >> blackrock is going green.he world's largest fund manager pledges to support sustainability. >> i think it has a lot of weight. these annual letters are going to be agenda setting for wall street. >> earnings season kicks off with the biggest banks in the spotlight. >> numbers we saw this morning in fixed income are staggering. >> top executives from health care and drug companies spot key issues facing their industry. >> bio-similars are an important part of the health care system. >> technology is an enabler of innovation, accelerator of innovation. >> we are trying to bring down out-of-pocket costs for consumers. >> even as equities climb to all-time highs, howard marks thinks it is not a great moment to be in the market. >> the odds are not, in my opinion, in the investors' favor. >> it is all straight ahead on "bloomberg best." ♪ >> hello and welcome. i am juliette saly. this is "bloomberg best," your weekly review of the most important business news and interviews from bloomberg television around the worl

wait a minute, if blackrock is up for grabs, one of the ones we came up with goldman sachs.et further into the asset-gathering business. >>> there's a lot of argument for why this mike not work i'm just the editor, my team, they're the ones who do the work we always make that he provocative. >> the goldman sachs points, they make -- at any point in the last decade. but -- >> so they're an $85 billion market cap company i think blackrock is about 10 to 15 billion less. the only way it works is if you structure it essential as you pay a bit of a premium a merger of equals they're particularly different in the financial service business, but it's not inconceivable. daimler, mercedes and bmw. >> one of them that came out of our thinking, a couple years ago, this whole idea of climate change we thought was a pr stunt, then a marketing then, then an assert-gating mechanism. now it's become a bit more real. investors feel they need to do something about it western lukie i -- we were lookt the pupegot deal, as well as autonomous driving you look at the cap ex involved in this, it's

but they don't so if in fact they want to all simultaneously collect their shares they couldn't blackrock really needs a close examination on this of course black rock is much bigger than most european economies if you look over in europe there is a lot of controversy about black rock having so much of a dominant position in places like ireland spain france i think france just they had some protesters stormed the offices of black rock only in the past week or 2 so this is the reality of the amount of power they're getting as this article here and that in bloomberg points out and then finally in terms of this reflexivity of course it's warren buffett value investor who came up with that that number of 100 percent as soon as stock market equals 100 percent of g.d.p. that's perhaps bubble territory that's why he has 120000000000 in cash just sitting there well we've never had it so good global equities now worth $88.00 trillion dollars the highest value in. history and it equals 100 percent of world g.d.p. so again that reflexivity of the prices we're going to start you're going to see i don

blackrock joining is the world's largest asset manager so it's a big win for the group.a: in terms of the difference it will make in the world since the idea is to get real assets investing in this way, how do we measure against the impact of it? annie: the group is trying to get more disclosure from greenhouse gas emitters about their activities and trying to get them to reduce those emissions. that's part of the pressure campaign this group is trying to wage. it is almost 400 members signed up, including the world's largest asset manager. they are gaining even more clout with this edition. vonnie: tell us about some of the firms that have yet to join. annie: vanguard is a notable exception. someig index fund firm, of the biggest in the world had been glaring omissions from this group. with blackrock joining now that might be more pressure on the likes of vanguard to get on board as well. amanda: we have corporations and investors -- not so political. will this force more policy in this direction? annie: i think it's a symbolic move. the idea is to get more large asset

we are going to do a lawn blackrock in the coming days -- a lot on blackrock in the coming days. the meetings next week at the world economic forum. all the rage when michael mckee sits down with the fed president. 10:00 hour.plan in the again, bank of america later. this is bloomberg. ♪ ♪ viviana: you are watching "bbg surveillance." let's get the bloomberg business flash. j.p. morgan now wants to take full control of its fund management joint venture in china. its morgan wants to acquire 49% stake in the venture. banks are rushing to capitalize on china's opening of its $45 trillion financial market. in a push for so-called cultural sovereignty, france putting pressure on netflix. french lawmakers are finalizing a bill that would force video-on-demand services to put 25% of revenue into local productions. netflix has already made several french original series. and internal emails from boeing employees could strengthen the case for families suing boeing over the two deadly crashes of the 737 max. compromisedoeing safety to sell jets. all that could pressure the company into set

jp morgan is there, blackrock, s&p is there, everyone is there. accounts for more than 10% of the chinese equity market trading volume. justis incredible from 2% 12 months ago. it will take some time for them -- to thed to the new more volatile market. see more of my friends come to see me and try to see how the market will be. francine: what do they ask you? what about the rail a tory framework, what is the cost, all very interesting strategic issues but most of the people feel the chinese financial , thet is such a big market ball is not in china, it is in your ballroom. big, yount to play have to get approved. francine: what happens when you look at the u.s.-china phase i deal? are we going to see a phase two this year or could both countries live without it? good,he phase one deal is focusing on trade and reducing tensions. i think it is good for both sides and they will continue the dialogue. i would prefer it to have a more broad economic dialogue. being the number one and number two biggest economies in the world means they have to talk in

to a certain extent, blackrock's pain catch up. let's go to paris.is the chairman of the giant european asset manager on monday. -- the giant european asset manager. thank you for your time. i'm sure you will of seen the news of larry fink's letter. what do you make of it and what you think it means for the rest of the industry? reaction isirst welcome to the club. the journey towards green finance. we started in europe years ago and we are now number one in green bond issuing. we have committed ourselves to the paris accord and all of our policies and we decided next year all of our active funds be emt rated. there is fear of a -- there is here a powerful and long-term trend toward green finance which is demonstrated by the last move by larry fink. guy: you talk about the fact that next year amundi will rate all of its active funds esg. how do you resolve the tension that exists within the passive space? you have funds that are blindly investing into indexes, and at the same time you want them to have some degree of impact when it comes to the esg s

you saw what larry fink said earlier, in that he is going to use blackrock to that front and center.nother tension when it comes to the activists. how does it work? which way do i look? jim: exactly. i think the movement of esg from the periphery to the center stage over the last two years is probably as significant as the rise of activism. i thing it is also going to fundamentally disrupt asset management in the way not only passive managers, but also active managers, thing about prioritizing esg in their investments. you're absolutely right, it is yet another agenda rewards and management teams have to take into account, or if they ignore it, they will do it at their peril. vonnie: there are definitely some tactics that are becoming more en vogue, but first, i'm curious as to who these rookie activists are. do they have a market impact? that's part of being an activist. jim: they are primarily hedge funds. there's also a few active managers in that group. newberger berman, fidelity international. we've also seen, i wouldn't call it activism yet, but pretty vocal behavior. wellingto

joining us is wei li, blackrock, head of ishares.ei li, what do you think about the knee-jerk reaction today is gold and by oil. wei: i was thinking about during christmas and the first day of trading, sentiment was very strong. within the space of 24 hours, sentiment did a 180 degree turn. this kicked arises the year we be.ct 2020 to trade headlines are getting better but on the other hand, volatility will be frequent because of the uncertainty in the middle east, but because of the very busy calendar in the u.s. given how strong sentiment is an fundamental-- and has been. recovering, we could see investors using this opportunity to -- matt: are you not concerned about an escalation of the iran-u.s. situation? wei: absolutely. what we have seen so far is that the oil price reaction to middle east uncertainty has not been as crazy because of the supply from the u.s. also coming to market. until we see tangible evidence of uncertainty impacting growth, we could see investors being skeptical around the event. the situation in the middl

and it's quite a story about blackrock.how big they are. >> my favorite part of the story is blackrock and vanguard pulled in two thirds of the industry's total. so blackrock bought in $116 billion. state street only added $24 billion. can you imagine the differential? scale really matters in this industry and these all types of e.t.f.'s. but there are some quarters last year where blackrock pulled in more money and fixed income e.t.f.'s which bring in less in fees. david: that's what i'm curious about. size matters but by definition, people are going to e.t.f.'s because they don't want to pay very much money to manage them. >> exactly. that's a big question in the industry. if you go to goldman-sachs, they have a lot of products so does j.p. morgan. so how do you compete with a blackrock? and then you have morgan stanley which who says we're going to avoid these products and pull in more higher fee, you know, assets. david: work on the margin rather than the volume. >> exactly. david: coming up here, the tale of two dollar

blackrock manages some spend trillion dollars worth of assets an environmental activist david we see action to back up that rhetorik. ceo larry think writing in a blog post that he that's a quote fundamental reshaping of fine. corporations try to balance profits with their promises go green. said the climate change the top issue that his car. is when the bloc. you can also be one of the hot topics at the world economic forum which- davos next week. the theme of this yearar's gathering is stake holders for a cohesive and susustainablble world. will be pressure on both business and political leaders to o announce concrete climate commitments. were founder klaus schwab said he's encouraging the events partners to go carbon neutraral. violent ones ability is ray popped off the stake holders possibilityy of business some window is closing- so te which is available to act is becoming shelton chuckle. the environmental act was gonna timber will be one of the people attending dollars once again along with the likes of donald trump angela merkel and christina gal it runs fine. foreign ministe

blackrock is the world's largest fund manager.in davos, he spoke to editor-in-chief john michaelwaithe at the bloomberg event, the year ahead. ♪ >> being in the capital markets for 44 years, it is very clear we in the capital markets, we bring risk forward. we don't wait until the risk is in front of us. there are times it happens, and that was the great financial crisis, but in most cases, we navigate the risk, and through that process we mitigate most risk. there is a greater belief in the science and as a result of that now, we should not avoid the conversation about climate change, because climate change is now becoming an investment risk, and no different as investors focus on a yield curve or whatever forms of risk we have. it was very clear to me now we need to bring forward better risk tools to navigate risk. and this is, a component of the letter asking more companies to was be more self reporting on things like says be and tcfd, so we have better clarity on how each company is navigating these issues. i am not here to te