esg and growth are both flat on the week. esg has had a banner 2020.is hard to overestimate how well esg did in terms of garnering interest for the entirety of the year, so maybe that is why it was flat. perhaps people have allocated so much, there wasn't anything additional they needed to add. that is a record year for esg in 2020 despite the fact that it didn't see any net inflows for the past week, francine. francine: let's get back to another of our top stories as we start 2021, and it is of course virus vaccines at the outlook for the global economy. solomon, goldman sachs' chair and chief executive spoke about getting people vaccinated in the hopes of emerging from the pandemic on the other. >> the toughest task of the new administration is continuing to march forward to make progress to get the vaccines distributed to so we can get to the other side of the virus. there will be a lot of discussion about what additional stimulus is needed. we have raised a bunch of issues here this morning, trying to get people focused on what we think needs to be

marn: there certainly is a definition problem in regard to esg.e lack of a central standard is an issue. hauke so a company could, in theory, score very well on these esg rankings, but on the other hand, have very large negative externalities on the environment. >> and even if a company is genuinely green, buying its shares mayot translate into creating an impact. ththeorystraight forward. the more funds green companies receive, the more they can pursue their sustainable goals. but divestments are unlikely to financially starve the fossil fuel industry. for this strategy to be effective, it must permanently reduce a company's ability to access capital. but when capital is divested, this also creates an opportunity for other investors touy shares at a lower price. when this happens, the stock ice can quickly bounce back to its previous level, without impacting the company's valuation. hauke: it's not enough, it simply isn't because the effect , is so tiny. >> esg invtments are not a magic formula. very often, what is advertised as sustainable is ju

you need for esg to take off even more. is it taxonomy?ore transparency, making sure that greenwashing is something of the past? yuko: i think all of those things that you just mentioned are great for esg investing. personally, i think is cheap investing is just a new chapter within the evolution of investing, and in particular equity investing, where it is really, if you are a long-term investor, it is a form of sensible investing because you need to look at a variety of esg risks that will impact the price if it closes a material risk and investment case. in that sense, government becoming more aware of those risks in the form of e.u. taxonomy is a very positive thing because i think not just from the regulatory side as well as pushing from the investment side all enable companies to have much better disclosure, and it enables us to analyze the company in a much more holistic way. francine: is there a part of the world where you are more attached to esg companies? is europe, because of the recovery fund, doing better in other parts of th

a real esg play. tesla is a real esg play. it is up with 1000%.t is an authentic idea in this place? >> you have to evaluate i guess every company on its merits individually and within the industry. so you take a company like exxonmobil, so you say, okay, they're an oil company. therefore they're bad. well that may not necessarily be the case. looking at the entire energy industry, exxonmobil's senior management may be doing an excellent job from an esg perspective. from a relative sense if you have to own an energy company, exxonmobil may be the pick in reference to the esg. charles: congratulations, phil. you've been ahead of the curve. these names are amazing. i jumped in because i want to be where the money is. okay? happy new year. been too long. we'll talk real soon. >> thank you, charles. charles: we're say staying on the markets including the last trade that you should consider as these major indices continuously whoever around record highs. >> white house ramping up its efforts to limit u.s. investments in china. less than two weeks of co

can be a leader in esg technology.lso, they should look at all of the programs which have been put into place in order to boost the economies. in china, in the u.s., be it in japan or europe. they all have one common denominator, and that is esg. francine: thank you so much, lars kalbreier. coming up, the race against time. the u.k. ramps up vaccine rollout as cases surge and hospitals struggle to cope. more on that next, and this is bloomberg. ♪ francine: let's get to the bloomberg business flash leigh-ann gerrans. leigh-ann: hi, francine. the boom, profit from be prepared to lose all of your money -- that is the message from the u.k. financial watchdog. the financial conduct authority says financial assets linked them -- links to them are high-risk for consumers. of consumerhe lack protection. a group of hsbc shareholders are asking the bank to cut it support to the fossil fuel industry. share action, a u.k. nonprofit, is coordinating the plan, which is said to be backed by a group. they are asking hsbc to publish a

>> we don't self describe as esg.ribe what we do and investors make a decision as they see fit but the answer is quite a lot. we have a couple of platforms of giving so we have a giveback, an annual giveback along the lines that i just described we gave over $1 million there just this recent july. we do that every year naturally dependent on the underwriting results which is in person dependent on the good fortune and behavior of the insurance companies. that creates that alignment. that's about 10x more than the fortune 100 gives, that's a big jump, as you said for a company that's not even yet profitable we gave equity to non-properties we established the lemonade foundation and put equity into that that's worth $75 million that is now in the hands of that non-profit a sizable chunk of change, no doubt. >> daniel, we certainly appreciate you coming on and talking about all this with us. >> thank you both. >> dan gel schreiber, ceo of lemonade before it was public, lemonade was a two time disruptor company. now cnbc

is there a sense that esg has become mainstream?el: yes, i think the stable impact investing is mainstreaming. we have overcome doubts from investors about sacrificing returns and such, but i think in the previous year we really saw outperforming. haslinda: taking a look at the next 12 months, what is the hottest esg investment for 2021? michael: what we are seeing, our firm spent time looking at esg data technology, sustainable food and green energy. very excited about the incoming biden administration, counting down the hours and china's commitment to emissions. these are huge catalysts for the greenhouse gas reduction and green energy space. haslinda: you talked about interest among family offices. is this driven by the fact that family offices are now, they are looked after by the younger generation, which seems to be more concerned about esg? michael: absolutely. we are set up around four years ago in response to family wishes driven by the next generation of owners. they want to test values and find ways of matching our wealth

business council i want to make sure when you push something with esg you think you're buying an esge are some clarifications as to exactly what that means. that can go a long way towards helping what larry wants it is something that is front of mind for a lot of these big ceos and something they've been working on over the past year even with the covid as you pointed out before. >> to some degree this is the future i do think there is an element, this is the future of investing. i don't know if we talked about it hank paulsen joined tpg to start a climate fund. >> right. >> there is something happening here and i think we should focus on it probably more than we do i know there's lots of debates we've all had about climate on this program with various guests and others but clearly even if you look over the past year it's not just about doing good anymore, it's actually about performance and those stocks are outperforming. >> yeah. we'll talk more about this a little later this morning. >>> also coming up though, a stock that elon musk tweeted about is now up 9% in the pre-market i'm

i think, you know, this commentary, if you will, around fossil fuels and esg and a younger generationthing to do with stocks like exxon or chevron and they're gravitating towards cleaner energy plays and you put that together with what cramer is saying about expectations under a biden administration what does that mean for how these things trade moving forward? >> so i agree with jim, and i've been in clean energy for a while and haven't owned fossil fuel stocks for some time they handled the virus better than we did that demand for energy came back rather quickly. we're not seeing the same uptick just yet, but we will, but that's besides the point energy is an unlimited commodity. you can turn the spigot on and off so you really don't have the pricing power except for short term so it's always a trade. it's a trade up and a trade down i'm prepared to miss it. on esg, you're seeing more and more pressure on funds not to own fossil fuels and so i think you'll continue to see the selling. i just don't see the value there in the commodity and to think that these stocks are anything more

there is an esg component but returns were not that great.m line is there is the making for a strong bull market. these companies are moving forward in a different direction. tom: this is important. bringing over the commodity perspective of currie to the equity market application, can you advise david costin in overweight energy even after the lift off the bottom? jeffrey: we want to be overweight commodities. the one thing that separates commodities from financial assets is financial assets anticipate the future. commodities are spot assets. they pick up as a hedge against potential inflation the unanticipated physical moves in the real economy. we think you will physically take off the vaccination improvement in economic activity , you will want to be long spot assets, real assets. we prefer the commodity as opposed to commodity related equity. tom: i need to revisit this. one final question. if you look in the break of commodities off of 2008, this is the glide tap we have seen through a decade. you are calling for reaffirmation of a comm

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so hopefully i do get that put to me, scott, because i think she's an esg play just by being the first to lead a major bank. >> you bought j.p. morgan and we'll take a break after that, but tell me about it. >> i agree with closing the underweight for interest rate-sensitive banks i also think that there will be a big m and a cycle in front of us we have a big position in goldman sachs. we own j.p. morgan we bought more just really closing the underweight in these names that could potentially benefit from yields going up which we think is going to happen as well. >> we will take that break for more on today's biggest calls of the day check out the writeup on cnbc pro, go to cnbc.com/pro and shares of novartis struggling over the past year and the pharma giant's ceo is with us exclusively to talk about the impact on the virus on their cancer and gene therapy work and when he expects areturn to normal were back in just two minutes. we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helpi

is concerned -- esg is concerned is a social area.apidly increasing interest in trying to tap into companies with a strong social policy, be it diversity even onader context or a more narrow context, male versus female. there is definitely a rapidly rising interest. a lot of that is driven by the interest in esg more broadly, which we think will continue. anna: thanks very much. eugene klerk, credit suisse global head of esg research. the warnock ousted republican incumbent in georgia's runoff, leaving the future of the senate hinged on one key race. we have one to find the answer to. when we do, we will look at the market reaction. markets are reacting in anticipation of these results. we will get the latest from our markets live team next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open" 52 minutes into the session, and we are looking at european equity indexes that are kind of mixed. not a lot of change on the dax and cac right now. the ftse is up 2/3 of 1%. joining us is richard jones. me, the georgi

we've now got strategies approved that relate to esg, rating from future mobility.t covers plenty of countries. neil was up 13 times since we bought that in april 2020. really, very significant winners and some of that space. we have a green as well. we have investments in some of the winds producers. infrastructure going into companies right now. we are really spreading around. the investment is primarily around transportation and infrastructure. the way we choose our stocks within the things we are investing in is to focus on the companies that are already experiencing both high earnings growth and actualize earnings growth as well as earning provisions, revised higher. yousef: yeah. we have to leave it there. it's been great catching up. thank you for that. we are running short on time. breaking lines hitting the bloomberg from germany. this is the german health minister speaking to dls radio. he says that germany won't be able to ease all virus restrictions on february 1. some guidance there on coronavirus policies as we get closer to what was the initial expect

to us, esg is as obvious today.e like to take this inclusive have an impact approach to esg as opposed to exclusive and not being irrelevant. there are a lot of carrots and sticks you can build into public and private. in order to have an impact. another theme is looking for the hidden gems. corporate credits that may be constrained either sovereign ratings. if you compare them to investment grade ratings, it would compare favorably. as you talked about before, one of our favorites is private credit out here. one of the last cheap lunches out here is getting paid for illiquidity. we have conversations with our clients on the notion of you really need all of your em debt portfolio be liquid in three days? if you don't, there is a huge opportunity cost for camping in that look with subset and you could probably pick up close to 1000 basis points. vonnie: continue. >> lastly, the things we are looking to shy away from in this environment is chinese investment grade entities that have links to the defense sector. in add

fwhs esg materiality and thshs ds this is about esg materiality.hen they would talk about income inequality facting the economy it was theoretical now worry starting to see how social issues really can affect our economy and our market in serious ways >> i want to talk about how you invest around that first, nili, you did say you were seeing areas that looked very frothy and that looked ripe for a correction one of those places could be places in esg world. ev spacs for instance have become a hot craze anyu of those areas that you are looking gnat your climate initiative get bubblitious. >> i am looking for long term plays in this space and i think we are still in early innings. think about right now you have the market private secretary neuro u.s. setting up for a change but in a way we are expecting a strong tail wind to come from the public sector and drive these trades forward like anything else they aring gob winners and losers this is going to be a lot of money lost as we go through this climate transition, but also a lot of money made. i thi

bide p inn in office and the mat green, what do you see as a catalyst to move this under the radar esg play and the nation's largest recycler waste management out of this range >> unfortunately, i did once believe that is the let's say the thesis but it really about home building. it's about construction because that's what they make the most out of and a lot of people feel like they are doing a lot with fuel cells and methane but not esg. i really like them but i'm not putting them in the esg camp let's go to arti in florida, arti >> caller: boo-yah jim long-time listener, first time caller. >> long time, first time what's up? >> caller: i wanted to ask you about gm as it comes with bargain valuation when you compare to tesla and neo they are making clean energy in the agenda, how well do you think a company like gm with an established user base and massive manufacturing capabilities is positioned to succeed after clearly showing the commitment to focus out of ces last week? >> all right if they call themselves general motors electrical vehicles corp, this $79 billion company would be

we also believe on the esg front that pure plays in that space also are going to bode well as we move okay. >> had enarmstrong is a stock that we're very bullish on. it is a, in the green bond space and we're very focused at access invests on marrying esg with fixed income. liz: right. >> because -- for the time. liz: we've got to run. even though the markets are not open, we filled this hour, greg, thank you very much. that will do it for "the claman countdown." markets back up and running. we'll see you tomorrow. time for connell mcshane. connell: all right. liz, thank you. it's a week that will usher in a new era in american politics. joe biden is set to take the oath of office discuss two days from now. the president-elect is planning major policy changes. we'll break that down for what might mean for you and your family and money as nation's capital is on high alert. i'm connel

i think this is probably one of them >> you're talking about that revolution in esg. there's also been a fresh revolution in retail investing, different ways that people have been doing that and we've seemed to see some effects in the market stephanie and i were just talking about, i don't know if you want to call it the gamestop phenomenon, what's happening a lot of people trying to cover shorts and stocks, moving in quite a volatile way what's an investor to look out for here and what do you think this is going to mean for trading in 2021 overall? >> well, i'm with stephanie on that i'm not one to be wanting to play around with those stocks. i agree with her, there's great possibilities of making a lot of money but you could lose a lot too. i think at the end of the day, john, this is a small number of stocks, heavily shorted in an upward moving market some semblance of this occurs in every bull market when the shorts get caught. this is pretty dramatic what we've seen with the movements in gamestop and a few others but i don't think it's that representative of the

conversely investment themes are more than fads i think like esg.here are some people not sure like bitcoin which of course did soar into the new year. maybe a party too much. yesterday was the 12th birthday. good news, folks great years are not anomalies which suggests more upside bias for the stock market in 2021 of the big question for you how you benefit the most? i want to bring in simpler trading, director of operations daniel shea, mike murphy and joanne feeney. let's start with the broad market. momentum coming into 2021. s&p saw 33 separate all-time highs last year including the last session of the year and according to lpl financial there have only been five times in history since world war ii where the s&p was up 10% in the last month of trading t happened last time. every time this happened, the average move next year? up 18%. will history repeat itself? mike i want to start with you, you were bullish even during the darkest moments of 2020. we started pretty tough this morning. will we see a replay? will 2021 give us a big rally? >> hap

we want to make it easier for investors to assess the esg potential.orkshop to bring together companies and investors. there is a mismatch about what companies need to disclose and what investors want to see. we thought the best way to a dress that would be to get everyone around the virtual table and have discussions on a sector level basis about that. matt: it is definitely a virtual table these days, sabrina. i wonder how the pandemic has changed the conversation. it seems to me that esg investment in some areas has been accelerated because of the pandemic. sabrina: accelerated was the word i was going to use. when we kicked off this stage of the initiative when we started the virtual workshop series, it was the last event that we had on the diary before the locked down we had to postpone it. i wondered sitting in my home office if we would eat reinvigorating that and it -- if we would be reinvigorating that and it happened quickly. the initiative was backed up and running and we had the purse said of companies join us in september. we covered four

wouldn't be unreasonable -- this isn't the first time we're talking about impact, you know, in the esg space. it wouldn't be unreasonable to, you know, have some form of skepticism andrew, i will admit that some of our allocating clients do approach the esg space with some level of skepticism. beyond the words, i think it's important to look at what is actually happening, what are people done? we're a fin tech company we have seen in our business a dramatic increase in the allocators, and investors that are looking for quantifiable evidence of performance through a social lens, and tracking things like what is the diversity, equity/inclusion of corporate boards and teams so i think summer 2020, candidly, i think george floyd was an inflection point. people are looking at this with a level of seriousness and measurable accountability that i think makes this a bit of a different space. >> fair enough jason, we appreciate you joining us today thank you so very much >>> we want to thank our viewers for joining us at well that does it for us here on "the exchange." "power lunch" starts afte

, to her point. >> that is interesting and esg, we talked about it a good deal over the last 12 months boy will we be talking about it, referencing larry the other day, even more of a focus, as we hear that opening bell this morning. one thing they didn't mention though is just why don't you buy stocks that have a huge short position or have a business on the brink of bankruptcy. because that apparently seems to be what's really working, carl >> as you were, as we were getting ready for the opening bell, and there is the new york stock exchange, and nasdaq and s&p, and the amc did get back to a 300% pre-market gain, david. >> that's good to hear you can imagine their business is in great shape, after all, everybody's going to the movies. sorry. >> you're getting frustrated by some of this >> well, carl, i mean you know, we've never really seen anything quite like. >> this the across the board nature of this, you know, i say coordinated, and i don't know, i don't know that you could argue they are, but certainly they feel coordinated, and there does feel as though there is not just reta

later today, on esg, it is the vote. mania --super futures at -18. bloomberg. ♪ ritika: this is "bloomberg surveillance." i'm ritika gupta of with the bloomberg business flash. shares of samsung rose. some of its most sophisticated chips -- they are being asked to make them. raised three point $9 billion for is first asia-pacific infrastructure fund, the largest of its kind. three dozen investors put in money to be used for everything from waste management and renewable energy to communication towers. the newly crowned richest person in the world is debating how to give away his fortune. elon musk went on twitter to to surpass jeff bezos to take the number one spot in the world's richest index. that is the bloomberg business flash. tom: thank you so much. james bevan is still with us. you mentioned free cash flow earlier. i had my heart skipped because i just wrote a banner for bloomberg surveillance on 2031. i have never looked at 2031. frame investment now by utilizing an studying free cash flow in its various ratios out a decade. james: i would sa

some time, and indeed a good number of companies, well over a third, have already led some kind of esgs in their company goals prior to 2020. so the seeds are already there, but the economic force and momentum last year. how do you make it concrete? we are very sure that efforts like the initiative to develop metrics and accountability tools , to measure esg, and to sign up for a simple body of metrics -- i think there are 21 or so metrics to serve as leading indicators on environment, social impact, and governance. i believe 60 companies had signed up to that even as we speak during davos, and i think it is those kinds of concrete actions that will make the difference. first is committed to a strategy and making it concrete. secondly is measuring it so you know how and where you are making progress on es and g. third is communicating in a transparent way. none of us are going to make progress on everything at one time, but if we don't have the initiatives or the metrics we will not make progress. francine: do you think that companies go out and seek equality to try to make it better?

particularly esg and climate assets or adventure capital, that is what we would like to see happen. again we need greater freedom from the regulators, but also the trustees. there is a wider group of assets that they want to invest in. the world from an investment point of view, the most exciting it has ever been. we have seen how quickly we can adapt technology come how quickly we can share markets over the last year. we should take those lessons and apply them and therefore encourage those institutions like ours, who look after vast amounts of money, to get the opportunity to invest in a wider range of assets. francine: do you think you will be able to do that? nigel: yes. i'm pretty confident that the regulators and the government will make the appropriate changes to allow firms like ours to play a bigger role in investment. withve done a great job investments in regions which you have talked about beginning there, and there is a lot more work to do. but there are a lot more people willing to do that work right now, and we have a government that is pretty supportive with all sort

joining us with more is bloomberg's esg and climate reporter.shareholders asking for and why? essentially, shareholders trillion, they4 are not a small group, are asking the bank to give more detail around their plans on the way to get to net zero. the bank announced it plans to get to net zero emissions in the climate portfolio by 2050. you have a bunch of shareholders here saying, that is all well we want to publish and to havetrategy short-term and medium-term targets because frankly it is very easy for a company management to commit to something 30 years down the line when the ceo and the chairman will be long gone. climate change demands action be taken in the next two to five years. they are trying to hold feet to to get more ambitious strategy in the interim, right now, really, to get them to move beyond talking into action. matt: i think it works the same way if you hold their feet to the fire or the fire to their feet. the outcomes are the same. hsbc, didn't they recently make a big announcement about climate ambitions? >> exactly. in s

what makes a stock a good esg buy.i also managed the m&g climate solutions fund. we look specifically for areas that are going to target a reduction in carbon longer-term. oil stocks do not fit that criteria whatsoever. there are now plenty of it power companies in the u.s., across asia that are very much leading on the front foot. and most importantly, no longer required government subsidies in order to be profitable. solar prices, solar electricity generation prices have fallen over the last decade. new coal and gas plants simply do not make any commercial sense whatsoever. in some places, it may be slow. we are seeing it displacing fossil fuel generated power. if the government were to come on board and increase its mandate on fossil fuels and a requirement on renewable energy, that will push the growth along. i think the market got a little frothy post the georgia wins. i think we are starting to see a bit of that exuberance come back when they realize he is still going to have to work with mitch mcconnell on the r

. >> things have changed dramatically since petco was public last, and including what we call esg, oriar with it, what is petco doing for animals that would unfortunately be killed if they don't find a home >> yeah, i will tell you this is one of the most both disturbing and satisfying parts of my job there is still euthanasia in america. and there does not have to be. we are on an absolute mission to eliminate euthanasia every single year, we have found shelters that avoid euthanasia for 400,000 pets in addition to that, we helped fund programs like lsu's oncology research, with cancer as the number one killer of pets so our mission is improving lives, and pets, pet parents, and if you look at what we're doing, it's really, really meaningful the other thing we did is we got rid of artificial ingredients. we're the only major retaliatory do that and earlier this year we got rid of shock koll lars and they are pain and fear and pets don't deserve pain and fear, they deserve love. >> and some people want to see, right now, what you are, times earnings what do we say? >> well, we're on a

>> be sure to ask about esg. tonight i have got weed map. follows me closely on spacs, and they also follow me on weed. that's right people think i'm too negative on cannabis give me a break. i have favored canopy g.o.a.t. rick smith, people may remember him from taser he gets paid how well the stock does i like that incentive. i like this show we covered a lot of ground and but the most important thing is read the president's white paper on the vaccine and you'll sense that there is something called a policy and it's a joy to have policy >> that's going to be a big theme for us in the coming days how this comes together. see you tonight. "mad money" with jim cramer 6:00 p.m. eastern time. >>> good morning welcome to another hour on "squawk on the street. i'm carl quintanilla a david faber and morgan brennan opening highs on the dow and nasdaq, settling back a touch as we watch the first day of the biden white house and earnings from ual, morgan, and tonight intel, ibm and csx. >> earning season is underway. we have a few events in d.c. we a

guy also brings up the esg kp g component of where facebook has targets on its back. where i've been critical, cynical of facebook, i do think right now unless you take it apart and where i think the sum of the parts might be worth more than it is right now, i think it's going to be very difficult to change the story there. >>> coming up, banking on walmart. the big news that got this stock moving higher in the after hours. what is it first, shares of eli lilly getting a shot in the arm. what sent the stock surging when "fast mone rury"etns sometimes, you want speedy but reliable. state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. good work little buddy. ♪ ♪ i feel like we're forglet me check.ing. xfinity home gives you peace of mind from anywhere with professionally

whether you believe in climate change or not, you have to believe in esg, which is one of the fastest growing asset strategies i have ever seen in my 30 years in the business. so, when you rate these companies, companies like just capital, msci, all of them, you're taking a look, what do they own, fossil fuels you have the penchant to say, i don't want to own those. they have to get energy exposure those will be the clean energy and why not? they will vastly outperform as they have recently you'll get pops as the saudis come out and say, we're cutting production, which they won't because they have to run their country for cash flow. so you'll get pops on that, but name one energy trader running a fund that exists today that existed ten years ago. it's always been a sucker's bet. it's a speculative commodity that you can't make money on on an enduring basis. >> guys in the back, give me an intraday of the stock doc was talking about, as i ask you, doc, to respond to that. out with the old, in with the new, so to speak, when it comes to energy. >> scott, i'm sure you would not be shocke

a lot of their portfolio analyst teams are very, very strong and they weave esg, kind of metrics, into their due diligence process. they're very thoughtful about that we like them from an investment perspective to invest in the company but we also like how they do business as well >> josh, it sounds to me like you have a bit of a counter view on this wealth management theme and the names that would thrive under whatever is happening in that space >> so i just to like clarify what i'm trying to say, i would buy goldman sachs for a lot of reasons. wealth management would not be one of them. i don't think that there's a lot of organic wealth management growth outside of just market appreciation and acquisitions for the large wall street banks. like they are losing talent. they are not adding new high-powered advisers. those advisers leaving to go to firms like high tower and dine ci -- dynasty to set up their own business i think that the stock market has been great for the last five years, compounding it like high teens percent a year, even including last year, believe it or not now gold

criteria regarding their cohort social responsibility, environmental responsibility along the so-called esgriteria. regarding the environment, i'm going to understand that the new american administration has joined, again, the paris agreement. a lot of progress has certainly been made, but i would like to ask you, are you satisfied with the progress made so far? or do you call for a new consensus that would go beyond what has been discussed and approved in the past? pres. macron: i have several comments on this. first of all, we agreed on a climate agenda, the paris agenda. at this point, we have not lived up to our commitments, all of us. so our top priority is to do our utmost to stay true to our commitments. and i say altogether, because they cannot be any freeloaders. we need to move together so as not to create productivity biases. this is why, in the last few years, when the u.s. decided to leave the paris agreement in the summer of 2017, there was a major risk, but i see that, over the past few years since, the house of cards did not tumble, so we created the one planet summit, and w

people will go ahead and the ones that -- still will buy non-esg stocks will continue to buy the edgebout that idea that you just raised? this notion that, you know, there are now -- whether it's institutionally or others who won't buy, you know, old, dirty fossil fuel plays in the patch and now they're looking towards clean energy and it's all about esg. that's legit, isn't it >> yeah. yeah but on the other hand, if you know, there's a tremendous amount of the stock market world that won't touch cigarette companies and for a long time when the cigarette industry was an asset to the market the stocks did really well so i think that select energy names will still represent good value. i think that you're going to see the range resources and even exxonmobils and as long as we visit the $40 range and below the $40 range. >> range resources, that's at the top of your list southwestern energy you own as well and that's very much a natural gas side of the story that you like better than crude, correct? >> yes if you looked when i was on last time in may or april, okay i told you those names

regarding their corporate and social responsibility and environmental responsibility along these so called esg criteria. regarding the environment, i'm going to understand that the new american administration and the u.s. administration has joined again the paris agreement and a lot of progress has certainly been made, but i would like to ask you, are you satisfied with the progress made so far or do you call for a new concensus that would go beyond what has been discussed, proved in the past? >> both. i have several comments on this. first of all, we agreed on a climate agenda, the paris agenda and at this point we have not lived up to our commitments, all of us. so, our priority is to do utmost to stay true to our commitments and i'm saying altogether because there cannot be any free loaders. we need to move together so know the to create productivity biases. this is why in the last few years, when the u.s. decided to leave the paris agreement in the summer there was a risk and i see in the last few years the house of cards did not crumble, tumble, so, we created the one planet summit and we

i still believe, though, that there is the esg element that's going to act as a headwind on these oil companies. i still foresee that there is a significant amount of debt that needs to be refinanced in q3 of this year and that will provide an opportunity so, yes, i think the time has come where you can be introducing value in the form of quality companies into your portfolio. i've been doing that with my ownership of tractor supply and best buy and some of the other names i've been talking about over the last six weeks. i don't know necessarily if i want to do it in the form of energy what about a merck what about health care the potential opportunity that health care provides in your portfolio which some of the names that are viewed as value that i think are going to begin to work significantly not just this year but in coming years. >> to your point, steve weiss, tech downgraded to underweight from market weight, areas like semis, they would be selective in software. i have people on both sides of the boat now saying, okay, we're underweight tech now is the time to go to value you

as you said, gun manufacturers, oil drillers, another non-esg friendly one.ot of these banks had previously refused to do business with these types of companies, francine, it is also concern over the type of presidents it sets. does this mean we can have more last-minute regulation where we are not really consulting the parties that have a heavy interest in these sorts of things? this comes, of course, as the banks are preparing, just days away for of the biden administration coming in. part of the confusion and the anger coming from the lenders is that, before this, the trump administration had been pretty friendly to wall street. so it comes as a surprise in that way. we also heard that one of the heads of the trade associations of these banks just really challenged this, saying the rule lacks both logic and ignores basic facts of how banking works and will ignore the safety and soundness of the banks. he goes on to say it is unlikely to withstand scrutiny. withstanding scrutiny, there is not much they can do. they haven't threatening lawsuits, writing lett

it scores very badly on esg. we are raising that is a point.er wants to mine bitcoins, they should also be cognizant of the negative factors that it has. anna: that's bitcoin. if you don't think the market is acknowledging risks enough, where could there be bubbles at this point? how close might we be to the top in any of those bubbles? i read a piece by one of our colleagues who was looking at the percentage of stocks that have been rallying more than 10%. he did some analysis. it suggests it's like 1999 but not like the end of that year. it's not like 2000 or 2001. is that something that gives you reason to pause? thanos: it's partly that. it's partly the levels of vibration where we are. very low levels of volatility. it was a canary in the mine. if we look at the fix, it was back down at 20% which is the lowest part of the range. i believe that we cannot start breaking through that. it would represent lack of any concern on the economic side and on the vaccine side. i expect there to be a negative surprise in q1 and q2. we can see the commi

china will be to john kerry and his role as the climate czar, and the chinese government's focus on esgparticularly on climate where they have been disciplined and ruthless and dogged about what they do on the climate front. given this year will be a focus on preparing, i think kerry and the relationship between the role he will play will be important. on trade there is no question trump put forth the china trade issue and established it as a firm bipartisan issue, and that will not change. no one expects it to change. when you are dealing with china, it is best to do things discreetly, quietly, one on one. i think the biden administration will engage with the european union, possibly japan, and have a more multilateral discussion about trade practices. francine: what does that mean for markets? is it something markets will latch onto? what will be the catalyst for markets to rethink what they are looking at? john: the equity market is focused on the recovery. it is reading the recovery into it already. unless something happens to delay the recovery well into next year markets will rema

we will see a big pickup in esg, for example. that the u.s.s back in the climate accord, there will be a big focus on climate and inequality means that many investors will want to express their preferences for that. we have been investing significantly in those capabilities. every bond we own and every stock we trade has an esg rating. we believe investors are willing to move in the way europeans moved a decade ago. that is an exciting development for the industry. haidi: we heard from president biden talking about being opportunities as well as making sure right gets done for the environment in the energy space. david: i think there is a whole variety of ways. we still believe that energy broadly is an attractive sector. it has been beaten down so much that now you can get in at a reasonable level. we have also seen great opportunities in renewables, solar and wind in particular, and then related industries such as the actual grid system, the infrastructure needed to move power around countries we think will unlock a whole set of new investme

okay, sanjay, one thing i always leave you with is opportunity is about to speak something involving esgnd vm ware and what you are doing for the people because you are a great spokesperson for the people in the valley and california trying to do the right thing. >> we were fortunate and reflective in 2020 it was an incredible year. we took care of our employees and we looked at the world what do we want to accomplish in the next nine years and set up 30 goals for 2030. we are kind of the defactor standard and we have a number of things that relate to zero emissions and renewableenergy. i point to two things we are excited about, we want to see diversity in the workplace and committed to have 50% of our managers to be women really see a more diverse work force with under representatives minorities and women one of the things that was important to us during the downturn, our employees and our community want us to invest in them the way to do that is invest in their training and enablement and education. we are going to educate people and we think we can educate 15 million people developer

adam: we work with broad ambition when it comes to esg.ded to highlight is a very ambitious material goals that we have. we have the long-term ambition towards -- we have a more short-term target to really increase the levels of the recycled materials, to about 30% in 2025. francine: and on your inventory, it is still quite high according to analysts. you say that it will come down. when can that actually happen? adam: it is all depending on how the pandemic and that situation evolves. we were in a very good trajectory out of 2020, so we believe that we have had mechanisms in place to as soon as possible jump on that trajectory again. so we need to come back with times and dates. but the ambition is near-term and we can go back to more normalized trading and that of course will have a positive effect on the inventory development. francine: thank you so joining us, adam karlsson, chief financial officer of h&m, giving us his first interview of the day. bloomberg surveillance continues in the next hour. tom keene joins me from new york. i ha