beverly you're sticking to esg?is on the top of our most sustainable list i think it's a really interesting tech. it was only 28% leicester so there is definitely room, that is largely due to china. 20% of its revenues from china, but that is actually huge opportunity for them. china has a stated goal of expanding its biotech and life sciences business but they also don't plan on building any tools. jack: "when you're picking a very unloved stock. it's a hated stock. >> hated, few want to come back story you have to look at the stock that's been pressured at scone down from its business last year. the avenue ceo, you have a lot of assets that can be sold some great assets i'm not so great. it's about streamlining it's about paying down debt and it's about keeping those dividends healthy. jack: this is one of buffett's biggest mistakes i hope you are right. then, you are also could terry and gm. >> this company reported earnings this week and did well. but it's also the sweet spot here. it's not as overpriced as tesl

opportunity is the in esg?is an area that is underresearched, under understood, therefore it is almost perfect for an active manager to try to find out a way of making money from it. you talk about esg as an opportunity. walk me through where that opportunity exists. saker: good to see you across the atlantic. i think you are exactly right. it is a massive opportunity. in a high active share different from the benchmark, high alpha, it is a way in which you can add value. the value we bring to the combined company is our deep knowledge of how esg integrates. it means we can add value in finding how to create wealth better in the long term. otherwise it is a fundamental factor that has been added. as people look for more value and more informational advantage , that is being recognized as one area and we can add value that way. there is also another opportunity. that therealization index funds need to have some kind of engagement with the companies they were invested in. we recognize that because we launched an

esg is benefiting. you will see good return records on esg.ware that if there is a supply shop in oil or a high beta selloff, it could spell bad news for esg funds. you are making an active back. esg is growing inside the mouth of an alligator. you have to be aware that if the jaws close, it could be bad for your esg fund. if you go in knowing that, it is fine. you need to be aware. that chart even looks like the mouth of alligator. vonnie: kind of creepy but also interesting. mine is simpler. the kbwe spread between banking index and the s&p 500 index ratio. for the smaller banks, there are many of them, for the smaller banks in this index, the thread between their index and the s&p 500 is at the narrowest since the year 2000. this is an interesting one because how many will survive as standalone companies? will we see a wave of consolidation? how long will it take? batman.e will tell, guy: i will go with the alligator. vonnie: i probably would, too. guy: it is a lesson that you have to look inside and unpack these etf's. it is almost inactiv

what we have been biking europe is actually esg companies.are companies that trading at 20, 25 times alreadys but getting benefits on the top line, the bottom line from increased turbine demand. just as important, investors want that as well. you are benefiting the company's fundamentals. shareholders want to own esg companies. retail investors want to own the companies as well. when valuations does not matter, you want a benefit and equity. francine: you believe people are generously interested? a lot of the criticism is big asset managers say one thing but then don't follow through. patrick: i see it from our clients, meetings, pension funds. they want to make sure they don't have as much benchmark esg and move it and increase it. that is moving the dial right now and incremental demand, let's move towards esg. there is investor appetite. francine: patrick armstrong. iq:ext, it is time for "etf europe." your guide to the region's one trillion euros market. that is coming up shortly. a quick look at the markets. figuring out the virus threat

what does that look like when there's no longer an esg monopoly >> an inconvenient truth, talking tola might look reasonably valued, we find ourselves reminding them, there's 15 million or 20 million human beings making cars globally. most of those workers are unionized. we're having this discussion -- you know, before you declare tesla the winner, it's worth reminding everybody that penetration today february 4th is only 2% tesla has a quarter of that. taking nothing away from elon and tesla, they're by far the best, right, but 2% penetration, 20 million jobs, governments, and you have china, which is let's say -- has a significant vote on the direction of tesla's chairs over the next few years, leave it at that, this has the potential to be complicated still having the dream of the multi thousand dollar -- >> the president said we have to protect our geniuses, referring to musk. china has leverage over how musk fares. >> glad you brought that up. tesla is seen as important to the united states from a national security perspective and environmental security he's important to the peo

guy: martin, what do you think of esg?ng: well, we've been it for 20 years, and have a very big team of 20 looking after it. everyone says they do it. it is whether they do it or not you've really got to ask the question. but one things for sure, you will not win a mandate now unless you have an esg capability. i think there's probably been too much emphasis in the past on the governance side of it, and i am glad to see a lot of emphasis moving now to the sustainability , which is, of course, a subset of esg. i think it is heading in the say, direction, and as i we actually do it, which is a big thing. guy: a lot of it is directed by the stock market. that seems to be the channel of choice when it comes to focus on esg. big funds like yours hold huge quantities of government bonds around the world. is that another way that ultimately, you think investors could potentially have an impact here? martin: i totally agree. one of the issues to date is we have been concentrating on equities, and really, if we are buildto ask coun

back and ask, what exactly is esg?sg is a set of data and a set of factors how are you researching those factors and applying those factors to different investment processes. when you look at what a modern company has become the growth of intangible assets, growth of intellectual plays, it begins to make more sense of why esg is important there and so we actually -- >> christian, i want hal to jump in i get the governance piece which is exactly what chamath is talking about. i applaud and get the leadership piece that so many companies are pursuing when it comes to climate and the other issues however, on their own, acting almost id owe sin catticly if you will it's unclear whether they can make a genuine dent in the system so then the question becomes the cost to the company for that leadership and i just ask you whether it's worth it >> it absolutely is worth it from the standpoint of generating those competitive returns. again, when we engage with these companies, it's not about bringing carrots we're not meeting wi

obviously the push to esg has been a headwind for those stocks in those sectors but it's also part of the whole passive investment move. if you think about it as a portfolio manager. benchmarking against the s&p 500 you are not overly punished by being underweight areas like materials and energy, weight whose waelgting in the index dropped precipitously the the last couple years. basically the trade has been lets continue underweight because it's not going to hurt from our point of view if the last sort of year to date has proven anything, is that you can have straight line moves you certainly had one to the upside and having one to the downside now but those don't continue forever. from our point of view, material stocks, energy stocks are pricing in recession that we just -- we don't see as a base case in 2020. >> julian, it's dan. question on china. a lot of china bears have just mentioned the fact i guess time and time again since the u.s. financial crisis and how it rolled into europe that obviously china has a massive debt issue does in issue with the quarantines and basically t

one report esg reporting derivatives. what is the nasdaq today in. >> well today the nasdaq is a technology company that serves the global capital markets and including our own. but also making sure that we provide technology and services that help companies navigate the capital markets. and we provide the technology to 130 other markets around the world. so we really are enabling the capital markets around the world with technology. >> can you talk about derivatives transaction today or getting into the part of the derivatives market everybody says the nasdaq has always had new york stock exchange envy. but when i see this i think are you going after the chicago mercantile exchange. >> what we do is provide the technology to allow other people to go and compete against other exchanges or create new markets. i believe what you are talking about is the fact that we are the technology underpinning a new effort by airbus to create a derivatives market for airline ticket prices, making it so that airlines and ticketing compan

are the broad topics of an esg.bon are not just a topic of sustainability funds but it is mainstream investors who are having to incorporate this into how they invest and think about certain sectors. so, no, don't think it is restricted to europe. anna: jessica offered, head of sustainability research at morgan stanley. coming up, caucus chaos. we bring you what you need to know about the iowa caucuses next. this is bloomberg. ♪ matt: welcome back to the european open. feed ofetting a live hong kong chief executive carrie lam. she is holding a briefing on the coronavirus and has decided to go out in public without her mask on. i'm not saying it's related, but at the same time, we see european stocks turning around from losses and rise up to gains across the board. there you have it. those two things are probably disconnected. is what you need to know today. the ceo whose app through the iowa caucuses into disarray has apologized annmarie hordern is here with the details on the debacle. says "we feel really terrible.

also, you guys mentioned esg oil is collapsing right now. it is basically being priced as a declining asset forever, right or wrong that's the way the market is treating it. and all the enthusiasm for the other side of that trade seems to be running through this one ticker there is no other big one the play at least in the market's imagination. >> what exxon -- exxon's pain is tesla's gape the dow was just up 500 a moment ago. what does it say, mike, about the market at large, and the question of overall froth? i have people talking about jds union face, and call come from 99. >> up it is good to infolk those names. but i will still say, right now -- invoke those names. but i will still say it is still idiosyncratic with tesla you can't come up 100 other stocks doing this. so there is difference in magnitude of exactly what's going on obviously, it shows you that there is, because you have suc massive capitalizations of the winners of the digital economy right now on top of the nasdaq, right, those four trillion-collar companies you have a g

anna: let me ask you about climate, climate change, and the esg agenda.nsurance perspective about some assets becoming uninsurable as a result of an increased focus on climate risk? oliver: yes, and we've always said so. allianz was one of the leaders in this respect. after 2040, there is no power plant we can ensure. ones twod insuring new years ago said the real be a lot of stranded assets in the future. people need to move now. greenpeace came with a stark statistic that said 1% of will go into renewables and that is embarrassing and has to change. anna: are you seeing real change or is this greenwashing? your team has conversations with businesses. they want to be carbon neutral's by certain dates in the future. are things changing? oliver: we need clear targets and allianz is helping lead, which is now 5 trillion in assets under management that will force change in business models through dialogue and investment. the second one, we need transparency on what people do rather than what they say, and there needs to be action. we are seeing that increasi

beverly you're sticking to esg?p of our most sustainable list i think it's a really interesting tech. it was only 28% leicester so there is definitely room, that is largely due to china. 20% of its revenues from china, but that is actually huge opportunity for them. china has a stated goal of expanding its biotech and life sciences business but they also don't plan on building any tools. jack: "when you're picking a very unloved stock. it's a hated stock. >> hated, few want to come back story you have to look at the stock that's been pressured at scone down from its business last year. the avenue ceo, you have a lot of assets that can be sold some great assets i'm not so great. it's about streamlining it's about paying down debt and it's about keeping those dividends healthy. jack: this is one of buffett's biggest mistakes i hope you are right. then, you are also could terry and gm. >> this company reported earnings this week and did well. but it's also the sweet spot here. it's not as overpriced as tesla comment tr

we want to talk about esg with you, a huge topic.♪ matt: welcome back to "bloomberg markets: european open." i am matt miller here in our european headquarters in london this week. let's take a look at the stories so far in terms of the equity indexes or the broader equity indexes. stoxx 600 here looking at gains. you can see that most of the industry groups are rising today. auto parts, interesting, we just talked to covestro, which is up today.e bit auto parts and automakers are down as a group, insurance is down as a group, but we see gains for basic resources, as the underlying prices go up. health care. i did see some health care losers. financial services also gaining as we see more m&a activity. let's get the bloomberg first word news. >> the death toll from the coronavirus has topped 2000. the number of people infected worldwide has risen above 75,000, as hong kong reports its second death from the outbreak. the number of patients discharged from the hospital is now rising. china is considering measures to help its airline in

i have an idea with the esg investing, when you screen, a lot of the chemicals are thrown out.y're not sexy comparing it to tesla. when are they going to start to perform? >> no question esg has had a huge influence on some of the cyclicals, certainly energy you just spoke about it. thinking about the higher volatility environment like 2018 nothing moved in a straight line throughout 2018. we think we're returning to that think about the tobacco stocks in 2000 whenever executive raised their hands in front of congress and talking about tobacco. over the next 20 years, tobacco stocks outperformed, despite they're being downsized in those types of portfolios. from our point of view, what you can see and what you had from time to time is when technology momentum slows or reverses, money finds its way and rotates back to those areas. >> julian we appreciate your views as always. karen you remain optimistic? >> i do. i was hoping to see a down day today. we had a bad sell off friday china opened down, 7.something i forget they're pumping money there, 173 billion. i was hoping we wou

by the way if you want to be esg who makes this anybody making a plastic. >> mopar nature. >> how far >> the bottle. >> i'm not owning coca-cola. i'm not owning pepsico i'm not owning anything that makes anything. >> i would take umbrage a bit with electric cars with cool that's subject to debate. >> no combustion lag torque. >> as in not warm. >> now i understand. albamar reports on 19th. wait until then pete power pitch united technology. that makes sense and if there was a company that could amazoned ed, it's granger. gww. just throwing it out there. >> okay. so good discussion there the eight names. we said them so not again. lets get technical two of the names stand according to the next guest head and shoulders above the pack >> interesting. >> that's a technical term lets go off the clarities with todd gordon of ascent wealth partners. >> i saw what you did there brian nice. >> you're welcome. >> marathon, technically speaking i like it here. looking to spin off the speedway brand. also new ceo come up in april. possibly a catalyst to make the inverse head and shoulders become

the inow do you look at the esg when it comes to the -- look at the e in esg when it comes to the energythink -- seema: we tend to think of fossil fuels is not very environmentally friendly, but it is those companies that end up finding the fuel which is not going to impact the environment very much. but we can't just take out fossil fuels entirely from portfolios. you need some exposure, but you need to do your research and find out which ones are working within that esg definition. alix: are your clients asking about that a lot? seema: i think it is inevitable. especially in europe, the main forward thinker on this one, but increasingly in the u.s. as well. . it is one of those questions we have to be able to answer. alix: seema shah of prince but global investors and kirk hartman of wells fargo asset management -- of principal global investors and kirk hartman of wells fargo asset management are sticking with me. u.s. cpi numbers are coming out next. u.s. nasdaq getting hard, tech down 5%. this is bloomberg. ♪ when you rest on a leesa hybrid mattress, bedtime is no longer simply the t

effectively becomes esg?hat esg has to be, what that means and how you define that is important. but the environmental bit has become much more important the last 18 months. that is the thing that is actually determining company profits and how sovereigns will allocate their capital on the development they do. define,rt is harder to but certainly we are seeing influences come through in that area as well. brooke: what sort of things are you looking for? paul: the easiest is do they fit easy --he -- well, not but if you were to stress the company business model on the two degree world idea, will they continue to pay the coupons and the printable going forward? you can do the same analysis with sovereigns. the type of environmental change, the type of revenue perhaps they get from climate change or from carbon, good carbon or bad cop and -- or bad carbon, all of this analysis is probably worth doing. be a lot ofrobably carbon that is considered to be worse than others. it is a subtle change, but certainly worth

stocks, esg, and the push away from fossil fuels. wait, scott, this is important number one, esg has been with us this has been building for more than a year, the effect of esg on these stockholdings pension plans divesting from fossil fuels that's been going on for over a year here is the reality of the world, folks we still drive gas-guzzling cars we still fly by the way, when you're building a giga factory for batteries, you have to build those factories. the fossil fuel energy intensity in building renewable energies is intense bottom line, fossil fuels are not going away you can continue to -- >> different things here, okay no one is saying that those companies aren't going to make money because, as you said, fossil fuels aren't going away that is completely different than investors shuning the stocks regardless of whether the balance sheet looks great. they may not want to buy the stocks, that's the bigger point that they're making, that they are uninvestable because of that. >> that's one issue. i would say they're uninvestabl

has a host of esg issues to deal with. the whole world is sort of in esg frenzy mode.onomically for you? what is the risk this year and over the next five years as you look at it economically? >> economically, one important thing i can think of is people -- condemning some retailers like h&m have been issuing warnings that if this esg focus on scrutinizing faster session, that will fit, the hit the pro revenue, i think people are trying to be minimalist nowadays. that will probably hit a number of retailers. it would definitely hit consumption as people try to spend less and be more conservative to save the environment. there will be hits to energy companies like bp, because i think a lot of asset managers are scrutinizing these oil they are veryuse carbon heavy. nejra: great to have you with us. that is it for "bloomberg ."ybreak: europe the european open is up next and looks like we could open higher again. we saw a records in the u.s. yesterday but it is not necessarily equity exceptionalism. risk on across assets. this is bloomberg. ♪ when it comes to using data, e

esg from alutely climate change standpoint.al cities we are addressing sealevel rise, storm surges, earthquakes across the globe. that is right in the heart of sustainability strategy that we call plan beyond. are there other acquisition opportunities this year? steve: i'm glad you brought up acquisitions. the acquisition we made back in 2018 got us on this track of transportation -- transformation. then we had the cw acquisition that put us into cybersecurity and space intelligence. that is off to a great start. we will close the wood acquisition at the end of this quarter. we will strengthen our local nuclear footprint. very much involved in nuclear remediation and technical expertise, scientific expertise. vonnie: what is the prospect of a change in leadership in united states mean for a company like jacobs given there will be issues on the table, including things like the deficit? agnostic.are pretty at the end of the day which party wins or which individual wins, we believe the u.s., republicans or democrats, there is a co

how it feeds into the esg conversation.lients talking about esg, how they think about it, how they invest in it? torsten: it is becoming a very important topic because more and more, any asset managers, pension funds around the world are beginning to ask are we esg compliant. what that essentially means is they have invested more and more money going towards esg compliant companies. and then the debate is for individual portfolio managers, what companies should that be, what sectors should it be, and globally, what part of the world are more esg friendly than others. alix: i was struck by how quickly the board did act like the fact that shareholders were against it. one shareholder in particular, david herro of harris associates, warned please don't let tidjane thiam go. here's what he had to say recently to bloomberg television. david: for now, the chairman should be replaced. the chairman should be replaced. if he really cares about the organization, if he really cared about credit suisse, he would step down as chairman.

but it also gets back to even in esg funds, they don't just buy things to buy things it's probably too expensive for a lot of those funds right now. >> the other point on the gold note, which is bearish on jewelry demand, overall very net positive and outlines all of the macro drivers for gold with that in mind it's not that bullish a price target gold again, it just sort of continues to make sense to own it but not huge returns if you look on only the 6 to 12-month. >> i think there's a couple of things going on. number one is the price in the $1,100 to $1,300 and even below that so it's poking its head up out of the ground. and the second thing is you have fundamental drivers going on fund structures that are starting to use it as a hedge and central banks that are to push the price higher but it certainly will be enough to offset the jewelry demand. over the longer term, the best investment is still equities, gold is a safe harbor to store value and protect you against some event that may occur. but you're right, as we get longer in the global cycle and longer in the u.s. cycle, peo

to be pretty courageous to start picking up energy stocks with where west texas intermediate is and esg is in the overall market i see value there. i own some of those stocks but you have to be courageous. >> i'm playing devil's advocate. >> compared to the last quarter, you mentioned amazon and google. they underperformed the market last year as did netflix and salesforce those four stocks, we put together a chart you can look at how they fit with the s&p last year, and they were below the s&p this year they are way above the s&p. money that might have just gone into apple or gone into facebook is now moving to other tech names. it's still in the same sector, but it's broadening a little bit because instead of chasing value names, banks or industrials, they're going toward the rest of the names that have growth to them. >> you know it's something when you get a shot out of the oval office and the president is holding up a sign of the maga trade that, with all due respect to president trump, that dan nathan first coined on the 5:00 show, right? and now when the president is holding up t

you have esg.trying to respond to that but it is not at the forefront as it used to be, and the debate is whether we go to moderate stimulus. as somethingre that distracts from the real issue as opposed to something that takes this a step further in either direction. tom: you need some weekend reading. it is jonathan fenby on france. it rolls right over to our analysis of the present state germany as well. the history of france, there is two coverages -- covers as well. you finish your book with the weight of history. angela merkel has the weight of history. how does germany move on from the ghosts and skeletons of the past? jonathan: with some difficulty. and has already made a transition to a new kind of state, particularly after reunification. the ghosts of the past are always there and germany needs strong leadership. germany is afraid of having strong leadership and others are afraid of a strong germany. one of the problems as there is so much to be based in germany on the economy, but in a wo

companies have esg foundations seeing investor demand they really want to have that esg backing rightmpanies that are growing. they are not cheap we think the favorable tail wind and demand will power these ahead. versus oil and gas it is hard to see much upside. >> when it comes to some hedging, what do you think is the best way to play it right now? in the global asset, we have 6% to 7% in gold. the platinum that link to gold and palladium prices have hit $23 an ounce platinum still below $1,000 an ounce. looking at $1,400 an ounce right now. a lot in production of autos but there will be a shift away from palladium to platinum >> interesting look. thank you very much, patrick armstrong. >>> straight ahead, uber shares are shifting into overdrive. is it time to buy? stay tuned to "worldwide exchange" on cnbc. >> announcer: today's big number, $2.5 billion that's how much elliott management invested in softbank, that's about 3% total market value. high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes ...take the personal assessment i love the new m

it's called esg environmental, soes social and governance.ewers what it is and why it's so hot. >> so it's become front and center in every client conversation we're having around the firm that's true in our skut decisec division, investment banking it's true clients care they want education and understand how to prepare themselves for what could be a pretty substantial wave of reallocation in the coming years. >> now, this capital is going to reallocate theoretically to companies that are more environmentally, socially, and, of course, with regard to governance doing the right thing, being politically correct, kind of taking earth day to the next level. my question is as an investor, is there a standardization so i can look at various companies and all the same guidelines used to give them a rating of esg. >> so this is part of the problem that exists in the market today is that there is no broad framework by which companies can be compared on an apples to apples basis there's a couple of institutions that are working to change this. there's

don't care what you say, people are not buying these stocks it is about sustainability, it is about esgesting >> a lot of that is true >> you know what i mean. >>r? how do you make that argument. >> you don't get multiple expansion as a result. the stocks are not cheap exxon is 19 times forward. interesting thin, it is yielding 5.6% that's an interesting thing. >> he would say i don't care about the dividend. >> i care about the dividend we debate it and discuss, we don't agree on everything. to joe's point if you start to see -- let's see a fix of this virus and then you see global stimulus kicking in and you get better growth and better demand, yes, absolutely copper is going to go up, oil is going to go up, commodities will go up they may not get the multiple becauser the not esg-like but they will go up. i think there will be buys there. if that's the case, if you really think demand eventually gets better and the stocks will rally you are not going to want to own these names you want to own higher beta names like diamond and lum eber shack. >> russian oil stocks, comparable in size

. >> thank you for that detail interesting topic indeed esg has become an increasingly important topic. i'm curious in your space in health care where pricing is a massive issue. investors don't like to see the margin hit at the same time, it's clearly a social issue if people can't afford high drug prices. do you think your share holders look at the pricing from the perspective of esg >> yes important topic for us it is written into our by laws that we need to run our company based on being financial sustainable, environmentally and socially sustainable in terms of our employees but also our patients we serve making sure we have affordable medicine is important. in the u.s., we have as of this january, launched an enhanced affordability program. so you can buy a month's worth of insulin for $99 we have an option where anyone in need can go in and get quickly access to insur to insun more needs to be done for those who fall through the cracks. it is one of the issues in the u.s. presidential campaigns. >> sir, i have to ask you, being the ceo of one of the largest health care companies

the whole esg reporting space.here blackrock across all of our businesses it is becoming important we come up with common vocabulary words and common definitions that we agreed to and then we start creating quantitative metrics by which to measure this. lale: especially if you define indices, you have to define what happens if you do not meet the targets. as it stands right now, you do not. there is no incentive. the spirit is right. do not get me wrong. in spirit i totally get it. the enforcement mechanism has to be more forceful than what we have. alix: which is also when you talk about the harder assets and wind and solar investment, can they generate the kind of returns you get another areas? natural gas prices are so cheap and i wonder if that will -- why will i buy solar when wind and gases under two dollars? david: there are two pieces to that. corporate buying renewable power directly at they want access to clean power and that hits some other targets for them. it also gives them a known cause for power ove

that is really largely about esg. 50% of the deals that come through that process get rejected on reputational reasons. guy j: just to circle back to the deal by deal funding you are doing at the moment, if brexit -- if a deal with the eu were to be resolved on amicable terms and the u.k. were to move forward, do you think the attitude towards fundraising, you changing money, would change as well? how much is brexit to blame for your current strategy towards fundraising? ay h: i don't see it as negative. i think it is actually a positive because we can focus on individual deals. if you are doing a fund, you have to run a portfolio, and it is a different process. i think i'm and better investor than a fund manager. i put up at least 10% of every deal, and some as much as 50%. my personal focus is really what is the return on that going to be. i'm actually quite pleased to not be doing fund management at this point. sometimes, necessity is the mother of invention. i think where we've got two is a good place. what i thin

esg is not on the agenda the agenda is making more money doing this rather than buying back stock they'veed the game plan for hedge funds. >> that is true. evergy is interesting. still in process and we'll wait and see what really goes on. >> i was trying to take them away from you and let me cover them more. >> yeah, well you can do that. why don't you tell me what the performance numbers were for the last few years, because the fact is, and i'm not sure elliott's performance has been particularly strong, jim >> all right >> despite all the activism and news, at&t of course also large cap, the large cap activism they're doing [ cheers and applause >> that's why they were talking what, joe and becky were talking to stevenson about the plant >> yes >> stock's doing okay. went down to 37, and came back [ bell ringing ] >> there is the opening bell the s&p 500 and cnbc real time exchange at the big board real estate finance celebrating its ipo and ppd at the nasdaq celebrating its own ipo. the public debut was yesterday, jim. biggest of the year so far >> we spent, i spent too much time look

. >> that's the dirty little secret we've been talking about tesla's rise and esg if vesting.gasoline and oil and cover your ears if you don't want to hear this will increase globally for the next 20 or 30 years, correct everybody in india and china and the philippines and every where else is not driving an electric car. >> right i wrote the note ten years ago if you told me when i wrote that note we would be at 100 million barrels a day i would say i'm going heaven that's not the way the companies have managed the strategy. to continue my point if you think about a 1% yield, you are discounting 100 years of ownership. >> if that's the case then why do we see now oil and gas companies saying they are going to make a big push to go green you know, you got bp saying they are going to reduce the carbon footprint to net zero by 2050. if oil keeps going up why do they need to do that. >> it's questionable also questionable whether they will invest as well if they give the cash back to you and let you make the decision on whether you want to buy tesla at the margin. for me it's smar

esg is also a pressure point for them.hen you get the coronavirus and particularly if china slows down. of getting it's like a boxing match and they just keep getting hit. it's unfortunate that it's creating some interesting value in that area because people are just dumping it with abandon. for the broader market i think it's a little bit different. there are three things that have an impacting it. one is coronavirus. another one is some fears around his bernie sanders going to run to the top of the ticket on the democrat side. you could see that to a great degree with managed-care stocks. they are not exposed to coronavirus but boy have they been hammered. you can kind of discern it from the market. the third issue is that business hasn't actually been that good even before the coronavirus. companies are beating earnings but lowering guidance. well before we started getting more news i was listening to companies not talking about revenue growth before the coronavirus discussion. it has been a tough environment in the gen

if you just say esg in there - >> it's taking over the entire s&p 500. >> i read a research note abouttic companies sort of becoming environmentally friendly the trendy thing to do. >> again, it is one thing to sort of say we want you to put more thought into this but i think people are putting thought into it. are the gestures meaningful? robert, there is a difference to less carbon in the environment but we make investments to offset it. >> i don't doubt there's a genuine interest in making delta less carbon intensive but this is about getting the esg label on your stock so you can be in those indexes so ed bastion's compensation is way up tied to that stock price very simple. >> ed bastion in the interview said that jets aren't going to fly on batteries any time soon they're still using jet fuel but this idea is every time you buy that jet fuel you're going to make some incremental investment either in something of planting a tree or investing in a solar farm project. right? >> airlines, as well, i think 2% of carbon emissions. not so much of a meaningful impact but there's an idea

so therefore what's the best esg stock.tesla would have to be in that in that bucket then you start to have the between that, the option guys, the shorts and the fear of missing out, not meeting your benchmark index, that all kind of let it, it fed on itself >> it's important for people to know, it's usually not one thing. the la la pluz effect. does the spike tell you that a collapse is next or how do you think about the stock from here? >> we have the options pricing today's close, plus or minus $10. it had a similar move. again, everybody hated it. went to 300 and retraced back to 150 then strayed in a trading range for a little bit really, we were at 900, 950, if we were to trace back 450. >> would you be a buyer? we had been b a buyer in the bonds. it's the type of technology we like network effect huge short interest. s3 had a lot on it so it's the technology that bill kind of likes to look and watch and follow and we'd be following it >> we'll watch to see if that 450 level is next. john thank you so much for unpacki

this isn't like a long-term esg, we're going to hold it forever >> first of all, you knee, we measure those who trade at least once a month here. the second part is, yes, they may have been -- i'm going to keep it forever change the world, but when the stock has the type of move that it's had to lighten up on that position probably makes sense and that is the biggest thing most people struggle with is their tame frame of when they invest are you trying to get in to gamble that you have a quick $20 move probably not the best philosophy right now. are you saying this is going to change the world one thing i would like to add to that if you look at from now to friday, the expected -- one standard deviation move is $89.89 most people would be awesome with that if the stock goes up that much, but are you prepared if the stock goes down that much >> did you see the story in the journal over the weekend about the people who dared bet against tesla, they've been destroyed. they were not necessarily professionals, but they bought some options, bought the equity short, and got just crushed. it'

in 2010, we put esg as one of the focus.s in addition to the financial process. we have the objective to be 100% esg by 2021. we have taken the objective to implementing some indexes that are taking into account. committed in this direction. to have yougreat spent some time with us this morning. thank you so much for coming in. the ceo of europe's largest asset manager. i want to keep you -- bring you some breaking lines. a smaller start for vision funds to. it may be launched in stages. a lot of development on softbank. more on that throughout the morning. this developing story. this is bloomberg. ♪ matt: welcome back. we are almost an hour into the session write-down. looking at gains on equities index. moving back to all-time highs. let's take a look at what is moving markets. why are we risk on right now? richard: jerome powell last night sounded very positive about the u.s. economy. fedays the central bank stands ready to jump into the fray in case the coronavirus endangers global growth. in the u.s. economy. is somethi

those boxes that you just said, that one stock can be momentum, quality, defensive, and oh, by the way, esg. >> exactly. >> it doesn't get much better than that? >> no, it doesn't. you know, it is not microsoft of course saying it is all those thing. it is the way we slice and dice this market. >> no, but that's even more significant, though, that it is the investor. >> sure. >> that's the way it is being viewed now n ways that it was never looked at before. >> or the intermediaries who try to carve up the market into factors are -- it is coming up microsoft. look at some point you have been having this discussion if the style changes on the street, and it becomes about leverage to global growth, it becomes about the semi cycle, semis have done fine anyway and somehow rates go up and it becomes less about these long duration assets like microsoft with these cash flows that should last for a very long period of time, then you have to say, okay, maybe it is going to have to take a breather and come back i would say also on a technical basis the stock is pretty much as overbroughtas it has bee

if you look at the etfs, it qualifies as momentum, quality, low volatility, mega cap growth and esg,n't underestimate is as well as dividend growth and buyback. the problem is, if it's going to become a problem, is the valuation. it's at an 18-year high with the p/e multiple that premium has expanded to quite a degree right now arguably it's overowned by hedge funds and all those etfs there's also an element of potentially hiding because apple's got a china issue, they're closing stores, microsoft is not closing any stores so as people decide that the u.s. is a haven within the world, tech is a haven within the s&p, and software like microsoft is a haven within tech, you wonder what the limits are to how high this can go. up more than 1% today on no news >> in the grand scheme of thing, we'll probably ask the same question, jedi material or not >> i wouldn't say it is. i don't think it throws the bigger picture story of cloud off course for microsoft but something might become material if not that >> mike, you said that you can't please everyone. that's the excuse for specializing bu

the movement and flow of assets into esg funds appearance it's an automatic.s got to be at the top of the list. i don't know if it's a beneficiary at all. >> i think it is it's the way your portfolio can become green. >> right. >> you can green wash. that's a way to -- listen, i own tesla. you don't think i'm green? i own tesla. we own chevron. well i own tesla. by the way, they're still leaving exxon. >> beyond me. >> beyond me, that counts as esg. >> i mean, we've known smoking kills you for what 60 years >> yes. >> and those stocks still have rich market caps. >> that's true. >> they haven't gone away. >> no they haven't gone away. but i think they're twilight. i don't want to buy a company who's as sket set is wasted. particularly related to health. i thinkal t altra has done thins wrong. >> you say take me out ten, 15 years, it's not looking good. >> why would you want something -- >> for getting the fact that there are assets that are now off-limits to investing in them. >> i just think that that larry -- when larry fink said coal, isn't that -- isn't th

esg going to be as important as a credit rating?wer is in less tangible ways that has always been true. some firms have things they will or will not do and have drawn lines. our firm got rid of plastic water bottles in 2007. buted like a small gesture we have eliminated 2 million water bottles across our firm. making good, conscious decisions for the environment, community, and government is part and parcel with good business. everyone will get at her at betterg what that is -- at defining what that is, and the key to esg will be measurement of impact, not cost-benefit, but degree which you can accomplish what you want to accomplish. it is important for businesses to consider that the world is changing and businesses have a role to play. it proved to be good business. -- prove to be good business. ney: that is jonathan lavi joining us at the lsc event in london. tom: michael nathanson will join us, coming up. we are thrilled to talk about disney and any potential profit from all this new streaming. bitube, alphabet, google a negativ

could be you know, that's a hard question and certainly not something to be writing about on the op-ed esge of the new york t because the readers are not in a position to judge that debate. >> you -- you did write about it in the columns of the -- >> well, i wrote about it saying that the fears about it were greatly -- werell wrong. >> some of the fears were that it would create massive flation. >> that's right. you know, it was aho's who list, an enormous number of people, mostly on the right, said, "oh, this is going to lead to inflation." >> and it didn't end up leading to the consur price index inflation,lthough there has been some inflation in asset values. >> yeah, but that's not clearth that's related, and it's not clear that it's a problem. >> i mean, there's an argument i've rea as i've followed this debate that quantitative easing may actually have exacerbated some of theit inco inequdisparities that we have, in the sense ryat it has kept interest rates so low that ordieople don't have vehicles for growing their savings and growing their weal in the way that they would have after

. >> quickly notable talking about esg investing. he added to occidental and sun core. >> he didn't get the memo in omaha. >> it's valentine's day. >> it sure is. >> love is in the aaron "fast money" along with a bird that got us thinking about the most loved stocks on wall street now these companies have the most amount of buy ratings in the s&p 500. many names on your list. amazon alphabet, facebook of course are the ones with the most analysts so the most ratings. but pioneer natural resources and diamondback energy, the original fang on the list. are these names two love for investors or heart break. >> we have debates. lets begin with amazon most loved in the s&p. 45 buy ratings, zero sell ratings, grasso true love or heart break. >> this is heart break "fast money. i've been wrong because i thought this was the investment cycle where that sells off. >> what's that. >> that's an excellent sound there. i believe it's getting contentious between the white house and bezos longer than it already has been i think ultimately this one

all circles of investing have to own it in some part. >> box checked, box checked. >> top esg holdingsthat one you can't argue with as some of the others it's not even about sustainability a lot of the names ending up in the esg funds as top holdings don't make sense >> they don't. and you have to scrub that i'll use s&p, the s&p people are smart about this >> the moves in all the t-mobile, sprint related names, well, of course the two being the key ones, but others as well are really amazing splint is up 75% t-mo up 11%. dish is up 10% as well on the unexpected, best 30 ruling from upmarrero, goes against the state's ags arguing the deal would be anti-competitive, result in higher prices for wireless customers and makes it highly likely these two companies will become one and one soon they have to get approval from the public utility commission in california they have to wait the judge signing off from the consent decree entered into with the doj and there may be a price negotiation to come as well where t-mo tries to get the ratio down a bit to refresh people currently owns about 62%