, more esg investments. like jed was just saying, we moved the needle in a positive direction. since we are speaking about the esg update, i would like to comment about the s part of the esg. we have a fantastic, thoughtful report put outlined b o put outy andrew. what i would like to recommend is you do something similar. it is so easy to whip out in five minutes. i would like to see something done for the s part. some of the characters that we are currently invested with are friends o of valdimar putin and those who don't share a commit commitment to human rights. there is not a lot of homework of the worst of the worst. who are we invested in bringing us is most return on investment even though they might be engaged in torture or murter. i don't believe you can take action until you get the information. thank you very much. i appreciate it. >> this is discussion only. we will continue to item 8. >> action item. annual report and recommendation on investment restriction in u.s. tobacco companies. >> this i

andrew collins of the director of esg investing.s 12 plus years experience at state street global advisers where he was the esg strategist and at the standards board where he was the technical research director. andrew also holds a bachelor's degree from jail university in environ -- yale university. he is akafst credential holder. in february of this year we also hired luke angus. luke has 10 years investment experience. he is also a cfa charter holder, with a bachelor's degree in finance and is in the latterpinings in a degree and master degree in renewable energy and sustainability systems. today's update is an update on our three pillars of the strategy. those are active ownership, investment management, and esg collaboration and communication. there is an extensive amount of information in each of those three umbrellas. i want to recognize andrew that the framework that he introduced to the board last year analyzing risk factors has been recognized by peers throughout the country. andrew and luke have also been very helpful and

with esg investing, the focus is of adjusted returns, and as more invested owners adopt esg creatingg-term adjusted returns in line with objectives is one of the key elements. investors are no longer willing to accept low returns, and in a future where we may see carbon ,rice in a more detriment away we may see those risk-adjusted returns play out to the benefit of those investors who are looking forward with these new data sets. of the a little more spat between the eu and malaysia as well as indonesia when it comes to palm oil. now it seems like they are telling members to avoid buying palm oil from these countries. how do you see that playing out, this palm oil story? kevin: i do not have that much data on palm oil, but clearly there are governmental pressures, macro pressures from different governments around the world. what we need to do as investors , the change inx regulations and place it squarely on how we analyze companies. we cannot avoid every company in a sector. you are not going to avoid that sector. how do you look at those companies who are palm oil producers who are

esg standards, reg bi, money market funds and if possible the money advisers act. look, it's been well-established that current law says shareholders can have their voice heard and their directives followed through this system of bringing resolutions to boards. that has been of some discussion and debate. it begs the questions if investors have moved these esg standards to the top of their list as commissioner jackson had indicated, why aren't more companies adopting these standards more formally? it's because their shareholders have voted them down. and ong it's important to look at the resubmissions and commissioner, you've done a lot of work on this and i'm curious if the sec writ large has any expertise or social goals and should we be developing mandatory standards based on those? >> mandatory standards i think in this area, they don't work. >> and mary joe white, the obama appointed chair made that same observation regarding conflict minerals and these esg metrics would be viewed or deemed de facto material. that seems problematic. >> i agree. companies have

what is your top trait within esg? view it is we are integrating esg into our investment process. it is one factor that goes into our investment decisions. we are looking at financial factors but also esg factors, because that is the best way to determine the fundamental value of an investment. within the and investment universe of esg, you have the bonds like ireland just issued. that is one small part of the universe. we are seeing different parts of the capital markets develop. all of that has grown in response to the demand for esg from investors, primarily on other continents but beginning also in the united states. we think this is an area that will continue to be supported by investor demand and regulations elsewhere and therefore a place we want to be active. aboutthe ceo of bp talked it yesterday at the money conference in london. here is what he had to say. >> the world of esg investors is a bit confused. is big and the s is small and the g does not count. there are 30 something different esg metrics and writ

keyownership has been a pillar in terms of our esg integration.with all sectors and all companies we invest in, but what has been very successful, particularly with some of the energy and mining companies, and our focus has been climate change risk and how they are responding to climate change risk. themve been engaging with particularly as part of a collaborative engagement of climate action 100, and that is really about asking companies to disclose to investors how they are looking at the long-term environmental risks. of your moste some recent investments, and where are you looking at the moment? sir most recently, in terms of some of our direct assets, there have been some infrastructure assets with some land titles in australia. we have invested in retirement villages. we have also invested in affordable housing in new south wales and australia. we continue to look for investments that will deliver long-term returns for our members, both locally, globally. renewables and anything related to an energy transition are a focus from an opportunity

are now in esg funds by some extent at 40% globally.or you is give us an example of how it works. how does that generate profits for your fund? >> there is -- that is disheartening because we are deferring. if they go to a charter school is a public school. they don't pay for the facilities. every time a great charter school like success academy, every time they want to expand the foot print for thousands of kids, they have to cobble together philanthropy or capital to build their facility. we are a turn key solution for those great educators so that they can focus on education rather than construction. we enter into a long term lease, a 30-year lease for them, and they pay us rent. we make money on them paying us rent. we are a bridge to ownership. having been a landlord, i realize the only person that creates welt is the landlord. we empower our schools. once they have four or five years of academic and financial performance we provide them the opportunity to purchase them from us. they can access capital in the municipal bond markets

before sunrise thursday morning and after midnight esg spinning mass of clouds, thursday will be breezy and cool. that's the main impact. but let's bring in the leading edge of rain. we stop it here on the wide view, we go ahead to tomorrow night. let's come in for a higher resolution view, get rid of the clouds, that's tomorrow night at 10:00. spotty showers for the north bay. not a lot here. by midnight same story. it's spitting in isolated places on here, and by 5:00 a.m. it's gone. you can actually measure the rain, see any? just a few. we can't go by this exactly, but the general take away is here. more likely to pick up a little measurable rain in the north bay. less likely down here in the south bay. that's it. when you wake up for your drive to work on thursday, maybe you'll notice a little rain on the sidewalk. shouldn't impact the drive. what will you notice more? the aftermath of this storm because when it leaves we'll feel the cooler north winds come coming in behind it. and these will be totally different from the wind event that was such a big deal last week. those were dr

. >>> esg investing or sustainable invests is growing in popularity esg assets more than doubled in 2019rock creek group explained why a company's esg rating is a good indicator of long term profitability. >> those rating agencies, the s&p will have to ip at tntegratd you're starting to see that. so far it's been about quarterly earnings and if you move towards long longer term sustain ability, i think obviously you have to be investing in long term value you have to be investing in your staff and your team. otherwise, you don't have a company. >> for more investment ideas from the biggest names in business, visit deliveringalpha.com. >>> remember christopher wylie from cambridge analytica he's got a book out that focuses on the lessons and some never been disclosed details around this data environment th wreate' in that is coming up on "squawk alley" cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >>> welcome back to "squawk on the street." i'm seema

that's your returns >> we don't believe that esg has specifically hit our returns we do believe that are important to the long-term health of the fund and those are both short-term and long-term risks that we pay very close attention to. so, you know, i think there has been some coverage out there that esg around investment, engagement, had an impact on the fund it has cost the fund some money, the investments done around tobacco, for example, and coal but -- >> has that made you rethink your approach to all of this >> i came in three years ago and it was something that i wanted to rethink immediately and i think the board as well as the management of the organization, we believe we get a lot more out of engagement with companies than we will out of investment from companies the number one reason for that is the moment we take our money away, we lose our voice. we have to stay engaged in the markets and think about how do we work with these companies in long-term -- >> should they be using the investment dollars of your pensioneers to have a voice at the table of certain types of com

mark: from my vantage point in the sector, i agree to the point about climate concerns and esg.conversation around deals. obviously it is further ahead in europe than the u.s., but unequivocally, that does matter. in terms of whether we should have more pure play players versus large, diversified majors, i am not smart enough to make that call, but to your point, exxon did weather the storm. in energy generally, it's not going away for the foreseeable future. clearly the emphasis on renewables makes a lot of sense, and we want to get there. in the interim, how do you manage it, and were you managing to? there's of the kinds of issues we see. i still think consolidation makes sense in an environment like that where you will have shrinking demand over time, and you've got esg concerns, and you really got to figure out, if you are a ceo, how do you run your business for the future as opposed to looking in a rearview mirror? ed: another big theme at the moment, china trade tariffs, etc., everything we seen with the nba and what that has done for the rhetoric with sports and such. we

coming here april 2013 following the board of supervisor resolution and stopped when you hired the esg director to let you guys do work for a while and we are checking back in. we are happy with the quality of the work in general. that doesn't change the take home message. we note the fossil fuel investments are down to $242 million. we think this is the result of either managers kind of getting out of the status quo thinking and looking at actual numbers and/or just the fact as mr. pace stated the energy sector has gone down 30% over the last five years while s&p is up 50%. it might be attrition that your investments have halved since we started talking about that. september 17th u c announced it would divest the endowment by the end of the month. that is two weeks. that has now been completed. so far as those things are officially reported. really to everyone from the outside accident many of whom are not in the meeting, some of you have have seen their faces plenty of times, it illustrates a real farce how in 2014 the idea that a five year divestment period was too far discussed. we

we take into account our esg considerations, strategic value of a relationship, diversity inclusion,nd these are just one of the factors that we use in our comprehensive analysis. john greybull, thank you for the time. i wish you all the best with respect to the fires. l.a.ng us from coming up, the album tied to nirvana's iconic performance and "unplugged" but how much did that sweater vest that kurt cobain was wearing go for? this is bloomberg. ♪ lisa: i'm lisa abramowicz. this is bloomberg money undercover. time for our billionaire beat. vista equity partners robert smith is one of the world's richest people with a $6 billion fortune, and he has pioneered an increasingly popular way to bring up that treasure. tom metcalf is joining us from london. what exactly is he doing to free up this cash? >> he has pioneered this interesting trend that is spreading through private equity. what they are doing is taking a minority stake of their firm, the investor equity, in robert's case, and selling that on to bulk buyers. blackstone, goldman sachs. those buyers are trying to get a slice of th

be in quiet period nike is a company that has a conscience too the company with conscience, remember esgence. >> it is -- it does put the companies in an interesting position where it is clear what the chinese government is going to ask of them, which is don't say anything about our -- what we view as our business, so to speak, and their -- the expectations of their shareholders and their employees and potentially their customers and their endorsers in terms of another area it puts you in a tough position. i don't know what you do right now. if you feel like you're pressured to say something or if you're just stay quiet. >> i think you stick a microphone in his face and say what do you think, i think you have to say we're studying that's it. study. >> studying the issue? >> side with adam silver i side with the houston rockets. >> corporations are taking the role that typically has been held by government in speaking about these things more forcefully and i'm not just talking about freedom of speech. a range of issues. >> are you talking about the pepsico bond or the new book by marc ben

and the social issues that follow, oregonens and things likes that we are second to none esg consciousme to understand that manufacturing in the united states is a good thing for the world. >> so much much your mining of iron ore is focused on the u.s. specifically tp steel is a big xenoennant in the defense sector has that been a tailwind, a what. >> what we've seen in defense, has that within a tailwind. >> no, i think that defense has always been steady and good. i don't know if i can call real tailwind because i haven't seen massive improvements but it has been good and continues to be good. >> laurenco thank you for joining us >> my pleasure. >> up next president outlookor f tesla as we aawait the delayed company earnings no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. i get it all the time. "have you lost weight?" of course i have- e

finally i want to end on something i've talked a bit about of late because it comes up a lot which is esgworld you're dealing with? does it come up in conversations about one company buying another? >> it does i think it's more sort of advanced the agenda in europe relative to the u.s., but it's clearly now coming to the forefront in the u.s. if you're investing capital and m & a is a form of investment, you're going to look at the esg ramifications of that. i think it's still relatively early days here in this market, but it's definitely coming and it's accelerating. >> we don't have metrics to measure. i will assume at some point you like to give out your hand out, right? is there a way to say you're going to cut my company? but let me tell you, they rate poorly or they rate well on these things. >> i think all that stuff is coming we don't quite have it yet to your point about having independent standards or scorecards that are truly independent or some independent body does it, but it's something. it's not going away. companies are very wisely, i think, addressing it head on >> mark,

actually, the biggest asset class that's growing is esg. sustainability, and governance it's 26% of all u.s. fund assets and 40% of global assets and you can't even measure esg except for once a year so what are they doing the market is just looking for these themes and one of them said, i've got to zbeget into values. but at the end of the day, you've got to show growth. and value banks, they're trading in the upper range now, because the ten-year rates have backed up they'll go back down, and we'll see banks go back down and everybody will talk about, it's the greatest play ever phenomenal management. probably the best management of any sector in the market >> all right >>> well, up next, the controversy over vaping could actually help cigarette sales, one wall street analyst thinks so we'll bring you the word on the street, next >>> and take another look at shares of boeing get hit hard on news that a top boeing pilot misled regulators about the 737 max. gordon bethune is going to give us his take, next. when you retire will you or will

. >> i think the agencies will have to integrate esg into there and you're starting to see that. the other thing is that so far it's been about quarterly earnings and if you move towards longer term sustainability of a company, not just quarterly earnings, i think obviously you have to be investing in long-term value and investing in your staff and team. otherwise you don't have a company. >> announcer: for more investment ideas from the biggest names, visit deliveringalpha.com. it's abou. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >> delta heads into tomorrow's earnings report down 6% since warning last week that tariffs on airbus jets with seriously inflict harm but the stock may actually be primed for takeoff roger is here to break down

before we go, esg investing growing in popularity with assets more than delivering this year at our delivering alpha conference the founder of rock creek group argued for a governance rating is a good indicator of long-term profitability. >> those rating agencies, the s&p and fitch, will have to integrate into there and you're starting to see that and i think the other thing is that so far it's been about quarterly earnings and if you move towards longer term sustainability for a company, not just quarterly earnings, i think obviously you have to be investing in long-term value and investing in your staff and team. otherwise you don't have a company. >> for more investment ideas from the biggest names in busissvit devengpha.com. ♪ you can get a satisfaction guarantee. ♪ you can also wonder why our competitors don't offer that. schwab, a modern approach to wealth management. woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.c

lot is just the scarcity value but this is the only pure play in plant meat out there and demand from esg and the investment funds underpinning the valuation. >> so you like silk owner, nomad, if people want exposure to the space. >> we like nomad and it is close to $2 billion and over the next five years we think plant base will drive 45% of the revenue growths it is a global story and not just the u.s. market you have silicon and others and so we prefer that for plant-based exposure, and beyond meat hanging above $100 and thank you both >>> coming up, the world's king of luxury is courting tiffany and he wants to put a ring on it a closer look at what they would get out of this acquisition. >>> plus getting into multiple stores with one bird all birds that is. the retailer expanding its physical footprint good idea in this day and age? the ceo joins us live. >>> and take a look at some of the all-time highs you heard about j.p. morgan and crofe but also the tech names, miost and lam research and united technologies as well. we're back in two. rather than worry about how to pay for long-

esg.s investing for the greater good in this case, buying into the health of the forest but still making money >> our investors are looking for an impact and a financial return and this is off the charts when you look at what it's giving back >> jennifer price says her investors want to align their capital with their values. and fighting the effects of climate change is number one on their agenda >> it's a little bit harder i do find for people to buy into at times. preventing rather than mitigating and taking it away or stopping but we're preventing it from happening. >> the greatest risk she says is if they don't do more bonds like this one >> because if this transaction isn't replicated or there isn't other funds allocated to do the forest clearing, the fires can still rage >> and diana oleic joins me now. this is fascinating because it suggests that there is a known solution to the wildfire problem. this is what we've been talking about all week but how do we get here, what could preve

realize that you're just a middleman for some of these issues you do make decisions when it comes to esgtaposition of those two ideas together? just a middleman, just offering people advice. there are some things that we think are bad that we wouldn't have people invest in. >> do you tell people what they should invest in or give them parameters >> we definitely create the tools for people to then use them to figure out what are their decisions because we cannot tell investors what decisions to make. we have two clients. we have the market capitalization which is the straight up and it says here is the total universe, complete total universe of securities in the world that you can buy and sell and here's how they perform so that you can then make a reference as to what your performance can be relative to the market the seconds product line that we have is the sustainable investment product line. it takes that universal securities and say what companies do they have governance, do they have good environmental records, good social records and so on and so forth and we create indices out of

commissioner purse, you have described esg as scarlet letters that stand for shareholder graft. shouldn't the central focus of s.e.c. disclosures be to provide material information to the investing public. chairman clayton, can you discuss what the commission is doing to insure that remains the touch stone of the markets. >> well, i very much believe that materiality should be the tou touchstone. what may be material may change which is why we need to have a principle's based approach. >> i yield back. >> thank you. the gentleman from georgia, mr. scott is recognized for five minutes. >> thank you, very much, ms. chair lady. chairman layton, let me ask you this, i want to talk to you about the liber transition. very critical for our financial system. as you know, the banks who are submitting their reporting information to determine the liber rate will no longer be compelled to use that in 2021. th t this is very critical. it's the benchmark that's undermined $400 trillion in contracts globally and $200 trillion in contracts right here in the united states. what is the impact thi

david: your title, very interesting, head of esg integration.he asset managers? is there pushback? are they welcoming? what we do have are people who understand sustainability and we have people who do proxy voting and are engaging with companies on these issues. they work with the investment teams to make sure the investment teams receive information that is relevant to them. these issues value in our financial modeling. we need to understand what issues have an impact on the long-term business model and how they can value that. howinda: we talk about clients are demanding it and companies are responding. is there real buy-in? --are seeing greenwashing,ng people need to educate themselves. that is the first important step. the buy-in needs to come from the fact that policymakers are responding to things like climate change. if we are not able to price carbon risk because there is no price, it will be more difficult. analysts will have to price it themselves and that is difficult to do. the buy-in needs to come from the policymakers, getting mor

charles: i love that you mentioned esg. i want to bring you on one time and talk about that only. omni channel on steroids. walmart, not only delivering groceries right to your home, into your home, you know, so are people going to be okay with a stranger going into their house, you know? i know we will feel better because they will stock our fridge but are we going to be okay with that to make this a viable model? >> only if it's authorized, with a person's identification and picture sent out ahead. but they are really driving walmart.com, former leaders at amazon, they will be able to deliver to 90% of the u.s. population by this time next year for walmart.com. amazon obviously, the same thing. target getting there, costco and bj's take off technologies, too. the american consumer, lower prices, better service, more convenience, and the security issue was really being addressed quite correctly, and that's a really key point you're raising. charles: essentially, a lot of these brick and mortar names have figured it out with the omni channel. those that didn't, and whehave wherewi

strictest esg's funds are snuffing the world -- the $15 trillion u.s. treasuries market.ially responsible funds shun treasuries based on the u.s. government stance on capital punishment or climate change. one of those funds, a $36 billion french pension plan. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. alix: bob doll is still with me. do not think i have ever heard of that. maybe when it comes to tobacco stocks, big oil, but shunning treasuries over climate change? what you think about that? bob: it is a moral issue, isn't it? alix: but that is a huge market. what is your outlook for this going forward? bob: i think we'll have climate change and other things creep in. the world is changing and this notion of what is acceptable and what is not, what is moral or what is not will create a lot of dialogue. it has already had dialogue in certain parts of our society, but as it creeps into the financial markets it will be a new dimension. and the

it as weo thing about integrate esg, but we don't have a deliverable, per se.ing to continue this conversation in just a bit. mark chandler and tony despirito will be sticking with me. coming up, helen qiao, bank of america merrill lynch chief china economist. this is bloomberg. ♪ >> we want to encourage not just a trade truce, but actually trade piece because -- trade peace because that is the only thing that is going to get rid of underlying uncertainty and stimulate trade and growth. alix: the organization cut asia growth forecasts in its latest report, with projected growth of 5% this year and 5.1% next year. that would make it the slowest pace of expansion since the global financial crisis. for more, helen qiao, bank of america merrill lynch chief greater china economist, joins us. mark chandler of bennett burn is still with me as well. if that's still to -- of bannockburn is still with me as well. is that still too optimistic? helen: i took a quick glance at the numbers. i would say that as of 2019, we are mostly in line, but for 2020, there is some discr

there are 30 different esg ratings.tain returns, governance people say no fossil fuels. markets want to sort themselves out. -- annamarie: i know we spoke about the aramco attacks. everyone is waiting for them to announce the ipo. what is your advice to that private company. we see a lot of investors shunning oil and gas, now they are about to go public. bob: they are probably targeting a different set of markets. the big i have sees, a lot in europe and a lot in europe, i think aramco will target the world where those interested in investment may look at it differently. i think they will do a good job. you may know more than i do in terms of when and what they will do, but they are being professional about it. annamarie: when you step down next february, where do you think we will see the price? i think we are in a $60 to $65 range. who knows? a lot of things can happen. i will step down from the day-to-day role and stay on through the end of march. there is nothing that tells me i would expect a downward spike or an u

. >> which is about the growing of esg.alking about ste stakeholders and how you measure your progress. my question was going to be what are the metrics? how do you measure this given it is growing in importance we hear about it all the time now from real money, not just sort of, you know, a broad sense that there's interest in it, but people who want to put dollars behind it. >> well, my peers certainly do and i talked to the largest ceos in the world yesterday i was in munich, germany, with the largest company in germany, with their ceo. they have a major program into place just as we do, just as many others do i was in london on monday. i see the same thing throughout europe it's probably happening faster there. the united nations sustainable development goals are the 17 core initiatives that are laid out by the u.n. of how we're trying to improve the state of the world. and companies should have to report how they're doing against those goals. that just makes complete sense to me. if we're not all in to improving the st

. >> growing popularity of esgs, investment approach, utilities and reits might be in favor.aybe better off than -- >> she's not in favor of small caps. >> not necessarily but initial assessment, small caps may have less direct policy risk than large caps >> that's very true. >> and then also they point out, of course, that over time, stock markets go up. >> i wrote that piece. i wrote that piece just watch "mad money. this guy watches "mad money. he's paid for watching "mad money." >> the best historical returns when democrats control the white house and one of the chambers of congress. >> there you go. what can i say that's more reason to buy the market they're buying the nasdaq off that who is that strategist >> let me find that for you. >> top flight. >> and the election, rbc capital markets, lori, it is lori. >> on all the time >> correctly -- >> very good >> yes >> cautious on the market. >> very good >>le wit lwell, look, i think i don't start talking about the dichotomy of warren versus trump, we're not helping the -- >> biden in south carolina and wisconsin. >> all r

. >> let's plan out, i'm into esg these days, some people think that your eyes glaze over. going to let them. 38,000 people put through college. through higher education we think that business isn't the greatest source of a platform of change isn't that amazing 38,000 people go through school, because of greg hayes. let's not forget business isn't just for capitalism. >> the other proxy for china is carrier, orders were down 11. >> carrier was weak. it was weak for residential too. it is a disappointment i'm not going to -- i can't hide that i was surprised. but, you know what, maybe the climate control business was just in the end a security climate control up .5% year over year disappointing. but in the enough to make it so people say, i don't want to own this stock instead, they say, raytheon, united technologies, pratt and whitney is amazing. >> you mentioned boeing. some headlines on reuters now, they have completed a dry run of a certification test flight. faa says still considerable work to do. several more weeks before a key test flight. but if you can see a better

on one end, there seems to be a push towards esg issues. seems to be a pull back. they were looking at certain types of things that they had divested from where they decided it had been a bad decision -- >> i hate to do that, some bad news out caterpillar out with bad news. it missed revenue $12.8 versus the $13.5. they are talking $10.90 to $11.40 well below the 11.70 the street was expecting. they are looking at end user demand they think dealers will make further reduction due to uncertainty. the last six quarters have been disappointing to the street. this is a bigger decline >> the primarily decline was a $1.2 billion movement in dealer inventory. die creasing inventory after increasing by $800 million during third quarter of 2018 >> lowering expectations they are going to focus on exit strategy they are going to bring numbers down significantly caterpillar, again, biggest dow component we've seen a as miss mcdonalds down yesterday and boeing we had been looking at the dow before this and we were down slightly now the dow looks like it

good and interesting panel coming up with the vice president on esg and financing.m the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. call, click, or visit a store today. ♪ vonnie: lump like it's 1992. china gdp falling come but it could have been worse. u.k. parliament votes on johnson's brexit plan saturday. pushes back on tighter controls while d.c., europe, and its cofounder warn of more power. welcome to "bloomberg markets" on this friday, october 18. i'm alix steel. we made it. my theme of the morning, it kind of could have been worse. you take a look at where we are in the market considering all of the negative data out of china, s&p futures holding around the 3000 level. th

francine: are you producing -- pursuing esg financing options? >> absolutely. a 750 million pre-finance export facility, one of the largest of its type. certainly, as time goes by, next year we will continue to actively evaluate the possibly of the green bond. francine: thank you so much, gregory barker, former u.k. minister for state and energy climate change. scarlet: live shots once again a buckingham palace as we await the state of opening of parliament and the speech. you can see the pomp and circumstance taking place. the queen's space to be taking place shortly. this is "bloomberg." ♪ scarlet: >> let's get your bloomberg business flash. the clock is ticking for dennis muilenburg will stop the board stripped him of the term's title to give him more time to focus on returning the granted 737 max 8 to service. directors expressed their support for him but they also pledged to engage in active oversight. bloomberg has learned volkswagen is considering a sale or stoppers lamborghini unit. that would be another step in the ceos long-term plans for the world's

. >> you have to look at it from an esg perspective i think that's a question that folks in the streetemselves today, what happens to this in general >> the question i would ask and i would ask it of the board of boeing and dennis mullenburg, is therein argument for him to effectively take himself out of this does this dynamic change if there was different leadership at the top and if there was different leadership at the top do you care about continuity, does it make it easier -- may make it easier with the regulators but harder with the management how do you see it? >> that's the question at what point does that balance tip, right there was a "wall street journal" report out late last night talked about how nobody in senior leadership at the company, at the commercial aircraft division, senior engineers, nobody lost their job. one hand you can imagine how from a standpoint of getting this all right you would want the people with the constitutional knowledge there, but yeah at what point are they more a part of the problem than the solution with each new revolution in at least pushes

simply focused making sure they are doing the right thing quarter by quarter you've got bigger focus on esgtrol. >> ipos of 2019 a big one virgin galactic to begin trading later on new york stock exchange what can you tell us what is going on there there are way fewer companies now that are public versus, five years ago. >> correct, two different issues, number one, as you said, companies have been taken out of the public arena therefore there is a lot more private companies sitting out there. but importantly -- importantly what you had happen here right now is this is the year in which the private markets the public markets especially in technology had a meeting. they had a meeting this year, and so far, the public market is winning in other words, there is a big difference when you look and -- markets 400 smart investors versus two or three smart investors. >> somebody said to private market your valuations are way too high. >> what you are having right now you are having a shift people are focused on nearer term profitability people are avoiding growth at all costs, all the basic things

esg investing. so what is that? that's a small sliver of the market capitalization of the s&p 500.ld definitely be a ceiling on stocks. stocks would likely come down and you would see bonds rally. stuart: okay. obviously you are a wall street guy. you follow it minute to minute. i believe that you are hot on walmart, and is it dollar general you are hot on? you like those two? >> i like those two, yes. stuart: make your case. >> so when the economy is slowing, we just got, one of the things we track is the lei year over year index, how much has that changed year over year. it has been trending towards zero. we just got a print of 0.4% today. as the economy slows a little bit, you are going to see more of that trade down effect. you are going to see those target shoppers begin to shop at walmart. the dollar stores like dollar general, you see an increase in foot traffic. with dollar general, one of the best things about them is they will see that increase in foot traffic, about 75% of what they sell are consumable so groceries, household cleaning products, and the best part about th

esg scores will be how you evaluate stocks at some point.to know how the companies stand socially. maxine water making that one of the first statements out of her mouth today. we'll see what zuckerberg has to say. jim i bring you back as we continue to monitor this. when he says a billion people around the world don't have bank accounts, this is a way to do it i can remember back 20 years ago when micro lending was the thing. we saw it spawn nobel prize winners. we saw women in countries, like pakistan, that had bank accounts and businesses for the very first time. are we talking about something changing the course of mankind to that degree? >> i believe that is what mark zuckerberg believes. he has a mission and he has resources and talent to make that happen for the billion people around the world who currently can't get access. charles: governor, i'm sorry, i know you're still there. i want to bring you in. maxine waters started hearing questioning facebook's employment, mostly men and white men. >> here we go, it is about go woke be brok