going back to esg and board dynamics, other than the fact we're looking at esg and whatever those board dynamics might be, i don't know if it's the way we talk to people or individual personalities or politics, can you maybe just give us more color around those two items? >> it's perceived political interference. >> where politics trump investment decisions. >> yes. >> ok. >> and that goes for both esg and the board dynamic? >> i would say yes. >> ok. that's helpful and good to know. thank you for sharing. >> board questions. i have a couple the first question is from experience working with nebc, anything positive if terms of the collaboration working with nepc because as the allocation recommendations, they do things in the manager selection area. >> there's always room for improvement and we speak with them, allen and dan, and allen and dan are very responsive and helpful when we bring those things up. overall, an nepc and allen have been very good business partners. >> any reluctance on their part to collaborate? >> no. >> any reluc reluctance on stafo collaborate with nepc? >> as t

. >> the first issue is we don't know what esg means. come together and get our regulator to focus on an amorphous set of qualities other than long term value of a corporation, i think we're fooling ourselves. >> what do you say to her? >> what i say at the end of the day, funny, i was interviewed once, somebody said how can you expect an investor to perform with one hand tied behind their back i was with a colleague that said esg done properly is a thirdhand. leave aside labeling, marketing, trying to appeal to a product list, get to the question. end of the day, does one of the following three things happen. does it help you identify risk, find growth opportunities, or drive efficiencies there are levers that make it matter goldman, sachs, that's the focus. we're not there to have ideology around this, we are there to have research and data i agreed with the push that there's a lot of vague re. sometimes there's too many adjectives, not enough nouns and verbs. that's part of the maturing. there's a lot of noise, how do i find a signal.

the esg or at least the focus on esg, record amounts of money pouring into socially responsible fundsting potentially greater scrutiny from the securities and exchange commission joining us is sec commissioner easter pierce. nice to have you with us this morning. >> thanks, david. >> we have been seeing, at least i think at some expressions from your concerns, in terms of trying to understand the metrics by which corporations will be measured, if i can put it simply, in terms of applying these esg standards, do we actually have standards we can really believe >> no, i think the first issue is we don't even know what esg means. i think defining that would be an important first step before trying to develop metrics. >> what do you think it means? >> i think it means different things to different people and it's a way for people to signal that they're trendy and they're investing in a way that's consistent with those trends, but it also enables them to have a fair amount of discretion about what they're doing when they're investing using that label. so that's my concern un, people have b

, is that what we think of esg.in how you screen these stocks and pick them and what your policies are it's a bit of a slow boil. we'll know if a few years how these reviews turn down and if the sec found anything that really worries them. but in the meantime, you know, you can imagine that a lot of the firms that are offering these products are probably getting these very detailed questions from the s.e.c.. >> dave, do you get the sense that there's any appetite for codifying the standards for esg investing? >> not at the regulatory level the s.e.c. tends to be very -- they don't like to pas descriptive rules when it comes to like, how do you define environmentally -- well-governed stock. those just aren't rules or ideas that lend themselves well to the kind of rules that the s.e.c. writes so they tend to be more principles-based, which means the s.e.c. comes in from time to time and says, like, okay, how is this really working out >> dave, to what extent are we just seeing all investors doing more of this sort of

do you alienate someone like joe who says that's not esg? >> you do.ement issue is interesting but the issuer being rated piece of this is where the real tension lies. >> i could see all kinds of issues you know, defense contractors in addition to making weapons that kill people, they make patriot missiles and they do space we want to have a space force. you could have a whole movement based on employees not wanting to do any business with defense contractors. that moves to esg funds that have no companies -- that don't have anything to do with defense. suddenly you have this ridiculous misguided woke mission that you're doing something right. it's detrimental to the country and society. >> it's all theoretical until proxy season. >> god, i don't want somebody deciding what is woke for me >> you should buy the regular index. >> i'm talking about companies, too. pressure on companies to be -- >> sure. >> we're going that way. >> this proxy season, i'll tell you, will be the most real pressure brought down on companies. >> at least with companies you can

certainly, esg has taken roots over the last several years.ere is one constant i've experienced this year right every single meeting i've had with every institutional investor, it is this esg concept. there's a wide range of what you g investment, but the fact that we are talking about it, and investors are talking about it from the perspective of putting their capital at work that way, means it will continue. david: as you say, there's a wide range of views about how you define it. can we really make progress on it if we don't come up with some accepted standards for what is and isn't legitimate esg? marvin: as the market evolves to a point where it becomes an asset class that people invest in, certainly, but we need to start taking steps in those directions. i firmly believe that. david: what are institutional investors looking at as possible measurements? coming up withe their own standards. do we need one standard, and even for maybe government authorities to say that is the right standard, not to impose it, but more like gaap, to say we e

buyers, and those are 9 funds that have esg portfolios, which has been the fasters area of growth in asset management they will buy fossil fuel stocks, so in order to be riding energy, you have to be right on the commodity itself i haven't own energy for a long time to think i can outguess what the saudis will do, what will happen in the middle east in terms of geopolitical issues, that's just too difficult. >> you're saying the esg trends, which, by the way, i was at a dinner last evening that we hosted with an investment firm, and esg was a big topic of conversation about where the opportunity is going to be, where, you know, pension funds, endowments are looking for tuned. >> to some extent, but it's only 6% of the s&p. >> you need to reset you need them to all clean out the portfolios it's the fastest growth in asset management i've seen in i don't know how long. >> because investors are demanding that it be. >> exactly that's a marginal buyer. that's a core buyer that no longer exists. >> is there any part that's more important than the other that impacts -- >> so it's environme

we also have our esg data, which we look at different companies and rank them on a certain esg score. what we found where we -- when we look at our companies, there is a correlation between good esg and good cash yield and dividend yield. those companies are doing a good job. we think that will differentiate the energy companies. david: is there a cost attached to that? at some point, the business model changes slightly. scott: agreed, on the environmental slide -- is -- environmental side. on the social and governmental side, that can be done with the amount of women in the workforce, just doing a better job. yvonne: can you give us some examples of some companies that have made progress? scott: companies with good esg a woodside walling company. countries that are making good progress, petro china, those type of companies. screening also good for improving esg and free cash and dividend outlook. david: what is driving that? those were the big chinese names. i was not expecting those names to top the list. scott: partly, it is the drivenent -- that has and ingrained in some of the na

think about a fasby but for esg.hey are working on it there are efforts being made for essentially what we call sasby, sustainability, and then be able to look at and believe all the different numbers you're getting to measure this because it is becoming such an important input for investors. >> 10 million people have accounts in robin hood and before they look at how the earnings are, they look at how the esg scores are >> time's person of the year this morning, greta thunberg. >> i was there had they picked her. >> you were where? >> it was -- didn't really happen, because it was, you know, background but what i thought was amazing, it was almost by -- >> unanimous >> unanimous one guy said tim cook. >> they do have -- they do have business person of the year. ended up being iger this year. >> i like that that good book he wrote. really good book. >> really good. >> should have retired before he wrote that book. it is very critical of certain people. >> very well, nice -- >> did he mention viacom >> no, he didn't k

and what kind of parameters and criteria they use to determine whether or not they really esg.n, obviously a difficulty with the esg is it means different things to different people, and there's no uniform set of standards for these. charles: yeah, who should go about that? i mean, obviously i think at some point maybe the industry will get together for self-preservation so that it doesn't become, you know -- it doesn't backfire. i mean, this is supposed to be -- people feel good about this, that they are doing something conscious and they are not hurting the environment and they are not hiring or investing in bad company or bad people, but if that doesn't happen, is there a role for more action from maybe the government level? >> i don't know that this is something that the government should get into because especially if you are looking at it from the sec's point of view about, you know, materiality because companies already pay a lot of money for their disclosures, and so you know, what is material generally to a reasonable investor? and a lot of investors have different pre

there must be room for global coordination around esg, defining what qualifies as an esg investment.: interestingly enough, you will see different aspects that relate to investment management such as financial disclosures getting on the bandwagon to make sure we have a tax economy, and how they are used. we are focused on the investment management industry, how we use the language, the nature, and characteristics of the funds to achieve what investors think they are buying. tom: i am pleased to announce abby joseph cohen will be our year end programming. that at the cfa institute. margaret: big deal. abby joseph cohen has an amazing reputation. i had the opportunity to work with her a number of times. tom: can we make this more than an annual visit? margaret franklin what the cfa institute. this is bloomberg. ♪ ♪ alix: the world after rates. the central bank heights rates to zero. trumpy is made, donald becomes the third president to become impeached. global bonds selloff, the u.s. curve tops the highest this year as equities flirt with record. "daybreak." we get the boe decision, ke

esg is a lotourse, more developed in europe. >> they seem to be warmer. maybe 5% in europe versus 1% year. a lot of it is regulatory. benchmarks will have to disclose their holdings. also here in the u.s., the products that took in a lot of money, that was a european pension fund. they are being driven toward that. that is why it has taken off more in europe. scarlet: there have been some big numbers related with calls and etf flows. a big number has out there and you put it out to twitter to see if everyone would agree. eric: i was shocked that many people agree with her. 50 trillion is what they will have in 10 years. what do you think? >> i would take the under on that. over the last 10 years, a lot of that was the market. the market may not have that bull run that we have had, but i would take the under. >> if i had to say a number, i would say 25. pretty bullish on international markets. scarlet: lightning round, what is one etf you are watching in 2020 and why? in jpmorgan moves a little bit of that into vbus, that could be a multibillion-dollar etf

it's inherent to our approach. >> it's interesting, when we're talking about esg, the casinos that i cover have all have these big plans in place about water conservation in las vegas. they do it because it affects their bottom line. >> but they're gambling stocks >> that's exactly right. but they say that this really matters to the bottom line of what they're doing and when we had warby parker's ceo, i had this whole, buy a set of glasses, give a set of glasses, and he said, our employees demand it. how much of a focus does a company need to spend on esg both to attract and retain skilled talent and also because it's good for their bottom line. >> so mark my words, this esg is one of the biggest shams going because any company can say, well, now we do this, so now we're open up to this whole new pool of investment money it has yet to be defined and i think it's lip service so they can say, hey, we're esg, too how coca-cola is, it's unclear to me. >> there are groups seeking to define it, and to qualify companies to be eligible for the indexes in esg and whether it's substantiative o

malcolm: most clearly in the countries where investors care about esg scores.h, a lot of funds and taking esg matters into account when they decide what to include in the portfolio. another country where it matters is italy. is a driver on investor behavior, and you can contrast ist with spain where esg less of a driver on investors, and you found a weak correlation. activists will be interested next, what does that tell us about the year ahead? does it remain focused in the u.k. were spread across europe? that is the trend i pull out here, activism in europe started more within the u.k. for reasons to do with corporate governance codes and the language and the rest of it. you see that moving increasingly to france and germany. something like a 30% increase in germany, 50% in france in those activist situations. what has happened is the activists got smart and more savvy on how to navigate the complex. they are getting good returns. one elliott is pursuing in france, they got a good return. you would think it is difficult for an activist to get traction. is exa

a real term where people learn how to check the box and fill things out correctly to improve their esgo little date deeper and harder. charles: i believe in not too distant future when people talk about stocks, regular investors, people will talk about esg scores the way we talk about pe ratios, are we on that path? >> even beyond that, charles, even what happens you don't see my car has seat belts on it, right, every car has seat belts on it, the way of differentiating safety but what esg is all about to me is taking a deeper, going into corporate governance, accounting, transparency of operations and you have to really know that a lot of people getting into this space, leader in it -- charles: i got you, it's amazing to hear institutional investors talk about this. less than 20 minutes away from the final hour of trading on this blockbuster day, i want to bring in the host of claman countdown, you're always having an amazing hour. >> this friday is going to be rocking, i know bulls can snort but do they roar, right now they are, i don't care what zoologists say. we are 17 minutes awa

alix: which brings me to esg.you talk to clients, how many are actually putting their money where their mouth is? they want esg, but are they investing in that way? sheila: it is really becoming a growing trend. we've evolved from the simple exclusion list two people asking us to go further. that will be the challenge for the asset management industry in the next few years. a lot of what's been done on esg so far is about what i'm not getting versus what i know. are you getting me data or not? is it good data? is it good news in terms of how you are evolving? we are really seeing, particularly a number of the pensions, global sovereign wealth funds, saying we need more, and we want to figure out how we embed this in our portfolio and a more fulsome way. is it tilted a little more climate change than any other issue in the esg space? yes. is governance the easy one ever when expect you can incorporate already? sure, but there is more to do on that, too. so it is evolving, but the number one thing everybody needs to

model.up to that esg thank you so much.hmler-brown, md & partner, hayfin capital management. anna: interesting to see investors going for growth in defensive sectors. with us onani burger private markets. up next, some of the stock after including nmc wiping out 40% of its value this week following a report. the story is still with us. this is bloomberg. ♪ anna: welcome back to "bloomberg markets: european open." 8:41 in london. let's get the business flash. be at thexpects to low end of its range. coming after they faced criticism for its unpredictable financial result. a charge of up to $2.3 billion in the final three months of the year. malaysia is stepping up its criminal case against goldman sachs. malaysia wants to bring top aecutives to court to recoup $.9 billion. besides are a long way apart. goldman sachs declining to comment. not -- there is the pacific ocean gulf between malaysia and goldman sachs. >> uber is facing a roadblock in germany. model isess anticompetitive business. that is your bloomberg business fla

we just announced we will be buying esg ratings business.e're bringing in the right portfolio but it's about facts and transparency >> you have done some amaze things with this acquisition of kensho you talk about the different -- you rate the words within a conference call. that helps people make a decision >> this was something where we took -- it was one of our internal teams, the data scientists they looked at all the transcripts and started to listening to words that are positive words and negative words. we built something called tda, textual data analytics and gives you a little meter is it green or red is it positive or negative how is the language in the prepared remarks versus the q and a? does the company prefer to only let them have positive views is ask questions or everybody >> i've been watching and reading these ever since they started. i read this in your conference call i said, holy cow i'm doing it all anecdotally this is a brilliant service. >> it's something that our team built. they are excited about it and we seen real

you have an esg board with central-bank government.central-bank has a representative, and that you bring in experts from across the ngo's space and then you establish a set of criteria whereby you can incorporate monetary policy into green q. week and the st space, where you lower the cost -- into green qe -- where you incentivize investment into the space and where you can actually see from investor point of view actually returns, rather than something that makes you feel good. in the government can spot the profitability gain in the employment gain. that is what will matter at the end of the day. i think that will actually come through. central banks seem very willing to take the lead on this right now. i think they need more people to jump in. guy: have a great holiday. we will see you again soon. geoffrey yu, head of the u.k. investment office at ubs wealth management. time for a deals report highlight. environments designs and produces drones for the u.s. government and their allies. ceoammond sat down with the to discuss the futu

target to go after fossil fuels, metals and mining, and when we think about esg in 2020, in june ofnpri, which is principal responsible investing is going to suggest, it's not a law, but suggest that 50% of the signatures incorporate esg strategies into their investing. that's going to impact $45 trillion of aum, that is up from 22.5 this year again to 45 trillion >> it's the i'm glad you're brazen, enormous issue we have to cover more closely. who will be the first fossil fuel company to do something dramatic in terms of responding to that? >> when you look at some of the producers out here, they're making large efforts norway field brian was referring to has a 4% carbon emission, 4% of what the other fields do. you see the response out there >> they're really good at that >> very good, big strides. i think you're going to see that i've had talks with miners suggesting green copper. it's going to be expensive but you are seeing an emphasis towards that and i think the bigger issue there really is how long does it take to create that environment to absorb that capitca capitca capit

towards esg investment. we embrace that.l and we have invested in the top quartile of oil and gas in the sector in terms of esg characteristics. inll and bp are typically the top quartile in terms of esg. of equity weighting outside the u.k. of these sectors is very low. arguably, the bigger risk to pension funds this tech -- funds is tech. overplayed, but no harm in central banks giving us a warning. if you look at the amount of money involved on a global equity perspective, the weightings are too small. nejra: alan higgins from coutts stays with us. today marks 20 years since a bottom report and came. to power in russia. we will take a look -- 20 years since of vladimir putin came to power -- since bottom approving the power. we will take a look at -- since vladimir putin came to power. we will take a look at his time. ♪ ♪ nejra: this is "bloomberg daybreak: europe." let's get the bloomberg business with selina wang in beijing. full controlwants of its futures joint venture in china. we have learned the base plans to boost

one on price the price wasn't right two, on the esg. you have to take into account this esg issue if you quantify the oil output, which is aramco, if you quantify that in carbon, it is about 1.6 billion tons of co 2 a year. that is about a third of europe's entire output that is the whole european block. it is vast it is bigger than all the major five iocs it will now compete with in terms of its carbon foot print. oil managers look at that. when you sit with bp and shell and exon, they really stress how diversified their investments are. moving away from oil and having alternative revenue streams which you can give to the new economy that will come from climate change and energy commission >> on those two points big numbers you throw out there. those two things don't necessarily change when we look at trading and the future of aramco do you expect more when it comes to market and when it comes to boosting governance. those two factors aren't going to change? >> retail investors buy high i think the fact that the stock has popped so muc

they see esg is nonnegotiable.at will start to be something that is challenged to some extent. that is something that will continue into 2020 and something that will be paid attention to as well is the idea that certain funds could be green washed. that is something where we encourage them to do the right thing going forward. nejra: we don't have much time left. i know you are not in the business of making productions. you are good at them, nonetheless. what would be your top prediction for 2020? markets will rise a little bit. the first half done made by the u.s.-china trade war. second half be dominated by u.s. politics. they have been so constant. i think that will be the shape of it. beon't expect markets to tremendously weak in 2020. expect the same kind of returns -- expect in the same kinds of returns would be a stretch. expecting the same kinds of returns would be a stretch. nejra: great to have you with us. bloomberg surveillance continues in the next hour. i will be joined by tom out of new york. in terms

what do they ask first earnings per share no esg.don't want to invest in any company that isn't at law. >> what is your carbon footprint. what are you doing with climate, agriculture, human rights, giving back, women in the workplace, water, packaging. >> i find it just so refreshing, so interesting to have a conscience while investing it is really extraordinary that these people spend a lot of time looking at labels. >> would be new for you. >> i pivoted beginning of 2019 when my daughter said, dad, do you want to be irrelevant or do you want to be relevant? >> so you have a conscience now. >> i had a konconscience but nom daughter said would you like to be relevant, would you mention esg periodically >> all right dollar signs and stocks, what do we want to keep an eye -- i -- xerox and hp, i don't want to forget about that fight. they come with their deck at xerox this morning saying all the reasons why investors should be listening to them as they go out to seek the votes potentially in the future. they have not mounted a proxy fi

you want institutions in fl concerned about esg and governance and control issues. if they are running for the door why do you want to follow in. >> is it large enough to take oxygen from the broader market. >>ening i don't think so i think the market so so ready carl there is always enough around for therest of the market but i think early on people will blame that if we see reactions to the market but i don't think that's actually the case. >> all right coming up, tesla promising some easy repairs for some of the the most loyal skpers we get details. reckoning day for biogen with results on the latest alzheimer's drug trial all that and more when "fast money" returns my parents never taught me anything about managing money. the amount of student loan debt i have, i'm embarrassed to even say. we just decided we didn't want debt any longer. ♪ i didn't realize how easy investing could be. i'm picking companies that i believe in. ♪ i think sofi money is amazing. ♪ thank you sofi. sofi thank you, we love you. ♪ inks welcome back to a "fast money. look at our cramer cam

i am actually a huge fan of these new movements here in the last ten years of esg and active investing. they all sort of fold into our existing philosophy. now we are fiduciary we have to have balance a lot of them haven't historically had returns but there are more opportunities and 70s areas like renewables, alternative sources of civil fuel, or sing a lot of interesting new platforms there that did not exist ten years ago. >> you get pressure from students or others on these issues? one in particular, young people with the environments, the extinction rebellion at all the stuff. they have pressure on you to disinvest from carbon? >> i wouldn't call them. are i meet with students all the time on these issues. to think a lot of it is they don't know what were doing. so i explain kind of the history of what were doing, the reality of that, they generally coming away feeling much better. >> i feel responsive to communicate exactly what redoing and whites were students and faculty. i think that's my responsibility to make sure they understand that. and i can disagree ultimately, but they

we are integrating esg to make sure we invest wisely and allocate capital in order to solve, contributesolve some of the issues society is facing today in terms of climate. it becomes a priority. this year, we have reinforced how we integrate esg in regards to climate into investment andess by avoiding call calculating the carbon footprint of our portfolio and trying to make it better. i think it will be a responsibility for government. it will be a responsibility for corporate. it will be a responsibility for asset managers and it will be a responsibility for individuals. will haveve our -- we to all play something in this project. matt: thanks so much for your time. ,iona frick, ceo of unigestion joining us at of geneva. we are minutes away from the open of cash trading across europe and in the u.k. up next, as the sterling sores on johnson's decisive victory for the tories, where next for the pound? we will look at some of the analyst calls. this is bloomberg. ♪ ♪ matt: this is "bloomberg markets: european open." we are just about six minutes away from the start of cash trading and w

yo takatsuki, head of esg research & active ownership, axa investment managers.pean open. stay with bloomberg television, up next you will see "surveillance." anna and i are going to radio. tune in on dab digital radio. former ecbith president, mario draghi. ♪> [ dramatic music ] this holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed... wooooah! -woah! it's called the internet. some things haven't. get ready for a reunion 3 million light years in the making. woohoo! -yeah! francine: will europe's new car giant be able to take on the world? it upgrade for the u.k.. two credit agencies boost their view after boris johnson's election win. be set tomp will become the third u.s. president -- only the third u.s. president to be impeached. ♪ francine: this is bloomberg surveillance. markets, a lot

am investing in the energy sector and increasingly becoming an endangered species because of esg ander factors, why would i put money into aramco other than the tracking factor, when i could put money into bp or shell with a much greater yield? these are income funds for a lot of people. stuart: the aramco argument is that it is a fantastic company on the world's second-biggest oil reserves. they have a cost of production that is way below pre-much anyone else in the world, so their argument is oil demand will peak eventually, oil will probably go away, but we can pre-much guarantee that the last barrel of oil used in this world will probably come from the saudi desert, and they are not wrong. that is probably a fairly likely scenario. nonetheless, all the problems you point out persist. they are relying to some degree on patriotism. there's no doubt that this is a big patriotic ipo. they're getting back to the same problem that no one wants to sell. guy: in terms of what this is likely to do to saudi energy policy, does this change riyadh's approach to how it manages the oil market?

jpmorgan report on investing, but it just shows you that it's become more of a corporate priority, esgs more than anything the nature of the investors that these companies have that are on these calls because they obviously are increasingly running assets according to these mandates to go to well-gfed environmentally and socially responsible companies but it shows a little bit of what we were saying, they're going to de-emphasize shareholder value as well. >> it really speaks to the trend. i know quickly it's accelerating here mike, thank you. we have more details from rh's earnings release and meg has that for us. >> morgan, well, rhceo gary friedman talking about wework in the form of a letter he writes as part of presenting the company's earnings, saying essentially, quote, that the view of growth without profitability has driven new concepts to launch as digitally native brands. he says chasing internet valuations from markets who have confused an online redill startup with a technology company. it's becoming clear that retail brands desperately need a store life line to survive as

are the deals order to find because people are now interested in esg? rekha: not really. hope i can say somethig differently in 10 years. what is happening is a maturation across investment, acumen, stages of investing. a lot of investing happened early, but now we have investors along the continuum. we play a net growth part of the equity market that is facing capital gaps. needing toepreneurs add value as well as growing their companies for the next age , where they can grow in scale and perhaps even tap public markets. amanda: great to have you with us today, rekha unnithan. still ahead, president trump says he is reviving steel and aluminum tariffs on brazil and argentina in a nod to u.s. farmers. how those nations are responding, after this. this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn in new york. amanda: i'm amanda lang in toronto. president donald trump is reinstating tariffs on steel and aluminum from argentina and brazil. also, we are hearing from commerce secretary wilbur ross, that the president will increase tariffs on china in washing

and you see the calendar of acid class updates and we are formalizing this and the first that you saw esg last month and you will see each of the classes coming throughout 2020. with that, i'll turn it over to the board for questions or comments. just have >> regarding your summary rather the 429.$1 billion, how much is equitized? commissioner can you tell me what page you're on. >> you don't have the page numbed but it's the table with all of the numbers, the weights, numbers, dollars. >> oh, the 429 in cash, how much is equitized? anna? >> 250. >> working off of your division chart of placements, not counting the fellowship vacancies the box underneath seniorsenior portfolio it says management assistant is that an investment officer or what? >> that title is correct. so that's the classification jay may want to speak to. but that is karen's former title and karen is doing work that is akin in most every respect to a security analyst and she does have other duties. she's not been full-time in private credit. but the plan is that in the long-term, is that she will be fully dedicated to pr

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an esg investor or manager of a fund would want to be thinking how much that would want to align their1.5 and then taking a view of how much oil and gas we need in such a world. ♪ ♪ rosalind: this is "bloomberg best." let's resume our roundup of the week's top news in business, politics, and finance. some of the world's biggest banks were in the spotlight this week, reshaping their businesses. hsbc kicks things off with a sweeping overhaul of the c-suite. ceo shakingrim things up a little bit. they are replacing their top investment banker, chief operating officer and chief risk officer, a confident mover for a man who is interim ceo. it hints at the idea that he is confident he will be able to drop "interim" pretty soon. >> pretty forceful move, for somebody brought in as the interim guy. so maybe speculating he's putting a stamp on it. you cannot rule out one external candidate mentioned quite a bit stephen byrd formerly of , citigroup. he has left in their most recent shakeup of that bank. he has long asia-pacific experience, but so does noah quinn. he ran the commercial bank out th

and whether we're sort of hitting this tipping point for esg investing. the governance piece of the puzzle doesn't always get talked about as much. when you look at a company like softbank, whether that starts to become a bigger piece of the scrutiny >> it's a great point and i think it would not pass a lot of potential tests when it comes to governance, at least that's certainly what you hear there's a lot of debate about softbank and a lot of it goes back to just the overall value, their ability to potentially launch vision fund 2 will they really be able to do that after the performance so far of vision fund one we'll see. but don't forget, they own that enormous stake in alibaba, the greatest investment perhaps ever made >> all right, one to watch, again, as we go into 2020. after the break, global markets gained $17 trillion in market value in 2019. but will the worldwide rally continue in 2020 we're going to discuss that, next >>> and later, nike leading the dow today after one firm initiated the stock at overweight, saying its hitting its stride we

but they have yet to mainstream their esg ratings into core financial ratings. currently the sec has cast a large cloud of doubt over whether mainstream financial filings should include reflection of these risks. i think that's a huge mistake. and then there's another set of risks that we haven't had a chance to talk about yet which are transition risks which are the risks associated with markets, technologies, and governments moving away there a fossil fuel-based economy to one that is not, which is where we need to go dramatically. but that poses risks for assets in those sectors of the economy that are largely greenhouse gas emitting. that poses risks for investors that are investing in those sectors. that is another kind of risk that invest need to be looking at, and the insurance companies are principal investors in this regard, but bank lending into the sectors need to be looking at. so we need to be doing a lot more with regard to these financial system risks than we're currently doing in this country. that's a big area of exposure, as well. >> and while

i am actually a huge fan of these new movements here in the last ten years of esg and active investingey all sort of fold into our existing philosophy. now we are fiduciary we have to have balance a lot of them haven't historically had returns but there are more opportunities and 70s areas like renewables, alternative sources of civil fuel, or sing a lot of interesting new platforms there that did not exist ten years ago. >> you get pressure from students or others on these issues? one in particular, young people with the environments, the extinction rebellion at all the stuff. they have pressure on you to disinvest from carbon? >> i wouldn't call them. are i meet with students all the time on these issues. to think a lot of it is they don't know what were doing. so i explain kind of the history of what were doing, the reality of that, they generally coming away feeling much better. >> i feel responsive to communicate exactly what redoing and whites were students and faculty. i think that's my responsibility to make sure they understand that. and i can disagree ultimately, but they gen

every day they get hit with selsell selle orders >> and we keep talking about esg as if there is a viabletive to fossil fuels. i know we'll talk about renewables, solar, batteries, everybody. the amount of fossil fuel energy that goes in to mining the materials for batteries, it is tremendous i mean, fossil fuel is not going away so we can kick to the curb, but eventually people will scoop it up on the fact that you didn't mention marathon trades at book value. this is a hard asset company generating cash, buying back shares at book value people will buy this >> there you go. and you are item on, that is why i went to the mine in southern california because if you are pulling out stuff for renewables, want to make a windmill, you have to run a lot of tractors to make the batteries. halftime trarder e traders are answer your questions on tech and much more. we're back in fin two minutes there's a lot of talk about value out there. but at fidelity, value is more than just talk. we offer commission-free online u.s. stock and etf trades. and, when you open a new fidelity brokerage account, yo

charles: we talked esg a lot. what do you say?> only $10,000 you have make sure in index fund or mutual fund, if it is discretionary, look at defense sector. where i look every corner of the planet is a hot spot. that will not change. we had record defense budget. lockheed martin and northrop grumman are good stocks. charles: you're the best and happy new year. >> happy new year. charles: as we head into 2020, proof it is best time to be alive, talking ever. look at the past decade. we're talking extreme poverty, aids, pollution related deaths, hunger, illiteracy, child mortality rates around the world are down significantly in the course of the last 10 years. on this, bring in fox news contributor deroy murdoch. deroy, where have you been, man? >> charles, how are you? christmas vacation. charles: great time to be alive, no one can argue that. >> absolutely. charles: amazing time around the world. every day we're reminded by politicians how bad we're doing. if you think about it, hard to argue not only best time ever to be alive

you hear businesses talk about esg and csr and throw around these acronyms to sort of show the marketto show their customers that they care about these things in 2020 they have to get much more serious about these issues. >> giuliani mentioned hong kong. we heard those detention camps are no longer detention camps. they're a place you can willingly go to be reeducated if that's what you're after as a global risk from u.s. and china, you have pressure from the uyghur detention, i'm wondering how that relationship outside of trade when it comes to geopolitics plays a role on the world stage. >> we don't see any grand deal being struck at all. this year and what's left of it or in 2020 because the united states and china and again, this is a reflection of the tactical nature at the moment of that relationship. this again goes back to becoming an election issue. president trump has the option of signing a superficial trade agreement with china, some sort of interim accord but that could collapse under tight scrutiny. if he doesn't come to some sort of agreement with china more broadly on

. >> the year for esgs who care about owned pepsi and coke attracted a lot of attention etf surprises? what's going to be a surprise to you? >> we're going to get a bunch of the non-transparent active funds. i think a few will come out of the gate with big allocations. $500 million opening weeks it's going to be institutions coming to play we will talk about it all year. >> if you are picking stocks in a mutual fund, why are you a winner in an etf >> i'm not suggesting they will be the out performer of all time you will see the best. >> etfs that will break out, what's going to surprise us? >> emerging markets, eem i have been on this show -- i could have said the same thing ten years. >> you like oil service? >> oih, we have seen rates go up, counts are improving i think it's -- we are seeing recovery >> i love that call. gotta run. thank you. dave and tim, thanks for joining me we will talk trading with will rhind. back to you. >> we appreciate it. >>> let's get to headlines >> hello here is what's happening the justice department says ten former nfl players have been charged with d

. >> if anything this is turk -- everybody talks about esg process this is a social and governance story story about bad governance you're getting to a point where customers are going to stop trusting the company and once you get that, that is deep in the woods. >> yeah, i think you are right i think -- look, this is all a culture change at boeing that needed to happen and it's easy to look look like and shine a bright like say there was arrogance and ob citizenens with the fa aen with we're continuing to hear about this at the end of the day you have the same company people loved two years ago. the reality is that larry kjell ner will do a charm offensive with the airlines. he comes out of that world calhoun will -- there was a journal article he called. the faa he let them know it was a new sheriff in town, inclusive sheriff. that's where we are, although the three guys were part of the last regime but doing their best to set a culture change. >> but you have two more stories, right one story saying by the way calhoun made massive donations into the gop directly to mcconnellwhose wife

when you think about yourself and the kind of metrics just looks at and esg, are these conversations>> oh, absolutely. treating your workers well treating your customers well, worrying about the community and the environment are -- >> no, no, no, i get it. do you think companies are hearing from the shareholders and investors, are they talking to you individually, coming in and saying, hey, where are you on this and this and this metric >> yes i would say a sub set of the shareholders, that is of good concern. that subset is growing i think there's other shareholders, particularly those that only hold for a short time, maybe hedge funds, it's not really on their radar in terms of the question they ask. >> how old is akamai now 30 years old >> no, we're 21 years old as a public company. >> but i remember it long ago. would you say that before you started emphasizing these things it was an evil company from its founding -- >> yeah. >> -- it was a good company with good intentions treating customers right, treating employees right? >> yes. >> okay. >> did you look around at everybody el

ed: before we came back from the break we were talking about esg and how that is not necessarily workingy people expected to. i heard something fascinating that investors are thinking much more long-term, which over the duration is beneficial to the investment in attachment industry but also the customers that getting more support for long-term shareholders. client wenow every talk to is doing work. it is early days. we were talking about energy. this is the sector that whenever i go out and i talk about the valuations we had seen earlier, people site there is no long-term growth. it is getting derated. guess what? last week i was getting questions on energy and it is not like those concerns have gone away, but there is a focus on has value been unlocked? this is one of the most interesting angles in the market going forward. you always hear ceos saying we do not want to do quarterly reporting, we want to look long-term. esghe focus becomes more that helps them make the case. lori: maybe the environmental angle is new, the social angle is new. the governance has always been something inv

have signed on to this, 2500 of them, they manage $90 trillion. 50% of that needs to be dedicated to esgxt year. what is the easiest, lowest hanging fruit? it will be fossil fuels, metals and bindings. when we think about issues like imo 2020, the other thing is this u.n. pri. randy: as you are saying, on a net effect, it could be pre-neutral. but you will see a lot of disruption in the tanker trade and that is good for rates. you will have the light barrels going to the simple refineries, the heavy barrels going to complex refineries. already started to see ports import more. you will see some trade for floating storage and get geographical price armitage. a lot of expansion on the tankers even if the crude are just a million barrels a day higher. alix: randy giveans, thank you. jeff currie of goldman sachs, always a pleasure. coming up, we will talk about the appetite for sustainable impact investment in china. we will talk to priscilla lu and where she she's opportunity -- where she sees opportunity. interact for our charts on gtv . browse the features, check them out. gtv . t