-- define esg?ferent investment firms. >> there is different levels of commitment. really what it is about is -- instead of just looking at the financial metrics, looking at the environmental and social metrics, the government metrics. whether companies are managing those risks and opportunities well. in part, it is a sign of whether the company in general is well-managed. carol: it goes to the top leadership, right? natasha: absolutely. it can give you insight as an investor as to what risks might be down the road. we have been quite president on some -- president -- prescient on some risks. like those ones facing facebook back -- going back to 2016. -- it is notce just what aren't you investing in. for a lot of investors that don't want to be in things like tobacco, nuclear weapons, or big oil, it is very obvious, but there are, what companies do you want to invest in? contact investors are looking at -- impact investors are looking at sustainable development goals and trying to align investments

i'm not going to own all of the good esg stories all the time.mistake that was made by early fund managers ,dopting environmental, social and governance as factors. carol: i talked about this with our last guest -- when you talk about what defines esg standards, is it becoming cleaner? matthew: i think it reflects the materiality, that environmental, social, and governance data can be used, incorporated into the investment process. i don't think that we are to a point where the data is good enough, but we are seeing steady improvement, and we have gotten to where there are multiple data sets that are moving toward standardization. of course, there is a move toward standardization. carol: i want to ask about a company about -- the company like pg&e. hedge funds are buying into it. that makes sense. what is your take on a company like this in terms of climate change and the risk that utilities face as a result? are they overvalued? we want to see the future of fossil fuel electricity generation, we need to look to europe, which is ahead of us in ad

when i mentioned we're activists, we focus on capital allocation and esg esg can drive returns. for wyndham, this is important one of their peers offers guests 500 points in their loyalty program if they reuse linens and towels this equates to about $5 the average cost to clean a room is $20 so this has a triple benefit it saves a franchisees money it is good for the environment and, three it encourages user engagement with the loyalty program. and user engagement with a loyalty program is critical because that takes rev par up which drives returns >> has the company bought into that >> so there are two companies we see it impacted. the companies where the management teams have to be convinced esg is a good thing and the management and culture already believes in esg and sustainability and we have to convince them to focus on those areas with esg that drive a return this company is the latter this is a management team and a cult are that deeply cares about sustainability and ethics. so we believe that they are on their way now that they are stand-alone company with dedicated man

internally, from the domestic perspective, esg getting more and more popular. >> we headed in visor hen in. it seems more of a compliance issue as opposed to one which can enhance value and create more dynamism. compliancefrom the -- so far if you are looking at the market structures, they need to improve their governance practice. from our perspective, the governments improvement. our compliance requirement, getting more transparent. the china requirement as well. >> this goes beyond just compliance. be more forward thinking. marketink from the development perspective, the regulations, market moving into the same direction. there is no difference between the east and the west. china and the international. and then it takes time to move in the right directions. before, looking at prior to 2015, the proper governance was never a major focus. since 2016, 17, 18, governance issues becoming more and more popular. the domestic investor is demanding better corporate governance part is. that is why esg's are becoming more and more popular themes. >> what do you tell institutional clients? who

management, private credit, national resources, esg, et cetera. there's quite a volume of new initiatives. this is the third and final presentation that we have for risk management. the last two have been done in the prior two board meetings. those two were first regarding as owe allocation and rationale for our allocation and what we expect in terms of our return profile. we expect to outperform in down markets. we expect to outperform in ordinary markets. we expect to outperform in good markets. we do expect to underperform in great bull markets, although our absolute level of return would be very, very good. the design of the asset allocation to do two things, retrieve high returns and minimize the impact by negative markets. the second risk management presentation that we had last month was a very complete review of our liquidity profile and how we're thinking of them in terms of the pacing. we have 7.5 billion dollars of current unfunded commitments to the private markets. so we've walked through biasset class and in the aggregate, what that

charles: a week ago, new esg-etf, had biggest inflows in 15 years. this is a blockbuster.l street. it is something we have to take notice of. if you want to outperform the market it seems you have to some exposure to the esg names. >> look over period of 20 years, mutual fund said they were investing this way, how they performed on one to three rolling basis, net to fees, 70% out of the time they outperformed indices. that is great track record. charles: amazing. jonathan, thanks a lot. really appreciate it. you're on to something there. >> thank you. charles: all right. by the way, folks, oil let's say it is clawing back some of yesterday's plunge. is it enough to turn it around for the week? we'll let you know in a moment. >>> how infrastructure perhaps, lack thereof hitting the skids after the trump-pelosi blow up will continue to impact oil prices. we'll be right back. ♪ when you take align, you have the support of a probiotic and the gastroenterologists who developed it. align helps to soothe your occasional digestive upsets, 24/7 with a strain of bacteria you can't g

investor >> on beyond meat, and i will buy beyond meat because i think beyond meat will become, to esg investing, what apple is to technology and i think it's really symbolic of the mentality that people want in esg investing. i agree with josh, though. i don't think it indicates anything about the overall marketplace. the last thing i will say is, again, i just think you have to look, once again, at the liquidity, the federal reserve, and ask yourself the question, okay, you're a money manager, where are you going to find yield, there's really no alternative than being pushed into domestic mega cap technology equities. >> well, it also raises the question, and we got to go, you know what? stay with me let's do this. i need your thought on something else as well we're going to take a quick break and we're going to go through a new list of buys and sells from morgan stanley as well here's what else is coming up on "the halftime report." >> announcer: ahead today, the list of stocks and stephanie link's buy list. plus a big call in the healthcare space before the break, our data partners

going back to the esg, it is at the forefront of investor thinking. only across asset owners which are allocating the capital, but also within the managers themselves. a number of funds have started to consider esg their processes not only as a marketing gimmick, but as a true change. very positive in shape -- indeed. matt: we are going to keep you with us, thanos, from abp invest. a lot more to talk about including the u.k. results. stocks on the move so far this morning, including fiat chrysler. the carmaker is making a proposal to buy renault. we will continue to file the progress of this offer and what it means for the entire industry, lifting auto stocks across the board. fiat chrysler of 15%. this is bloomberg. ♪ is bloomberg. ♪ matt: welcome back to the european open. i am matt miller here in berlin. markets are closed in the u.k. but we are 11 minutes in to the continental trading day. we see green arrows across the board. he stocks zero 600 up about half a percent. milan, more than 1%, being driven, pun intended, by fiat chrysler. let's go to

. >> definitely esg stock, for sure. >> yes this will be in all of those portfolios. >> don't want to make something that's not there but is this assigned to anybody? >> no, this is a down tape no here's the funny part, people want to look at ipos that look well and they want to say that's negative because there's too much froth then when ipos open and not doing well, people say look, see? if you're pessimistic, you can always find a way to look at these things here's the point, event brite, new low since the ipo. snap was bad ipo, has been a bad stock ever since then you look at all of the companies that want to send food to your house and make you cook it none of those have done well the market is sorting out winners from losers. it's not like every ipo is this. most don't get the benefit of 120% open. talk to me in two weeks. let's see where we are >> it's the basic demand versus supply so obviously right now there's limited supply and there's plenty of demand and in others we've seen a complete inverse of that. >> and we have a couple of other special guests who have joined the co

at the same time, when the chips are down, that's when you should be thinking about esg. is for what the future investing.sg have been linked with china, just because of the need because of pollution. a lot of people are looking at what this means for some of the clean energy companies in china. i think more broadly they are looking at how are we assessing howoverall geopolitics and this plays into policy around environmental governments investing. been morphedas into national security and technology discussion, a broader discussion than trade. vonnie: at what point are your hands tied and it comes to things like national security and companies being placed on blacklists? at that point investing gets horny? thorny?ts -- it does. we need to wait and see on that and see if it changes some of the improvements which we have seen over the last year. what we have seen was actually quite a few improvements on both the environmental and social side. we need to see if that continues, if we see aggressive policies that make it more difficult. vonnie: does this month make use nervou

>> the message here for the board is that one of the things we voted on was trying to implement an esg policy and be more conscientious about where that money is going and by having further upstream projects. >> by design. >> that we have materially less fossil fuel exposure than the index. yeah. >> thank you. >> that is the message of the chart on the right. this concludes the exposure analysis, unless there's -- we're happy to take any questions. we'll move on to the second part of the presentation. >> questions from the board,. >> i'll ask a couple questions. i want to understand, this is all assets? >> can it' it's all assets. >> how do you count the more private equity? by flag or -- >> it comes from the service provider torrey cove where we receive portfolio company information and all of the attributes of the portfolio companies. if, for example, you had lyft as a private company, we would also be pulling the attributes, what current, what currency, what sector,. >> so it's going that way. great. >> yep. >> i'll save observations for later. thank you. >> any other comments or qu

covers, you will see our entire portfolio from public markets to private markets, to risk management, to esg, and more are included on this list, last to know is the next investment -- investment committee that is a week from today, it is a small subject, but it is a super important subject, it is a long-term plan for managing the trust, we're looking at this from a ten year point of view, and the reason why we're looking at this is because spurious is fast evolving, we are now 25 million-dollar organization, we were a $10 billion just 15 years ago, so we have gone from a good-sized plan to a large plan, we are going to become a very large plan, our liabilities will grow to $40 billion, they will grow to $60 billion, a very large plan, in 2038, so we are thinking about the landscape of what is required as a 40 and as a 60 billion dollar pension plan , what our asset allocation needs to look like, our philosophy towards manager selection needs to be, co- investments, and also resources and budgeting, so it is an important meeting, and i hope you will all be able to attend, it is a sole source

couple years relative to private allocation and risk management, private credit, national resources, esg, et cetera. there's quite a volume of new initiatives. this is the third and final presentation that we have for risk management. the last two have been done in the prior two board meetings. those two were first regarding as owe allocation and rationale for our allocation and what we expect in terms of our return profile. we expect to outperform in down markets. we expect to outperform in ordinary markets. we expect to outperform in good markets. we do expect to underperform in great bull markets, although our absolute level of return would be very, very good. the design of the asset allocation to do two things, retrieve high returns and mi

that that liability will stay khemours has 4 to $6 billion which is its current market cap finally, esg investing a new hot topic. who rates these things rating agencies. what does sustain aalistics rate 3m number 35 in the s&p 500 do we need a conference to talk about rating agencies, again and we should not need rating agencies to make our investments. a giant liability that will suppress and facing what we think is substantially all of its market cap i want to thank everybody for the opportunity to speak to and to support the sohn conference, once again now, i want to turn our attention on introducing you to one of the most extraordinary people i have ever met in my entire life, which is a hockey player i know named maurice campbell and i coached 15u hockey >> again, that conference is happening live all day today you saw some stocks moving on the back of his recommendations. both buy and sell. chemours probably the biggest to the downside exposed to pfas a forever chemical that could have liabilities of potentially hundreds of billions of dollars. that was the short from larry robbi

because you have a lot more esg , you'recut holders getting a lot more investors in toks saying we arenvest in you now. david: a really tough trial coming up. alix: definitely watching that throughout the day. coming up, be investment management chief investment strategist will be joining us. a risk off day where things are really happening on the bond market here and overseas. yield blue here by about three basis points. this is bloomberg. ♪ ♪ pres. trump: they would like to make a deal. we are not ready to make a deal, and we are taking intends and billions -- tens of billions of dollars of tariffs. alix: president trump continues to talk tough on china. huawei says they are only attacking it because they are successful. we speak about 10 year on its 10 year lows. and fiat chrysler makes a bid for renault to create the world's third-largest carmaker. david: welcome to "bloomberg daybreak" on this tuesday. we have a big drama playing out in germany right now for angela merkel's party. alix: cdu did not do well. merkel basically throws her undericked successor akk the bus, and says she

again, it speaks to -- you think about tesla and you think about esg, right checks the box on the e. box on the g not so much. >> yeah. that's interesting. >> interesting >>> coming up, fallout from the trade war. we're going to talk about the impact on american truckers. these are guys that can boss a big rig with the rest of them. what's it going to take for them to keep on trucking. 10-4, good buddy "squawk box" will be right back. hey dad! hello, betee! kaisi hain aap (how are you)? i'm good, how are you? good! so good to see you. it's late, where are you? i'm at work. oh gosh, so late. i know, but guess what? what? i've saved enough to come visit you. well, that's such great news! at u.s. bank, we believe that hard work works. and for everyone working toward a goal, we're here to help. onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. ♪ ♪ ♪ >>> welcome back you're watching "squawk box," live from the nasdaq m