larry fink is saying municipal bonds will have to be priced if we don't get our act together.els different to me. annie: this is a new chapter that blackrock is working. esg lumps together a lot of disparate themes. governance, social, but this letter will he took environment into account in a big way, and focused particularly on climate change in the climate crisis. isry: how much pressure blackrock under compared to other asset managers when it comes to sustainability? annie: blackrock has faced a lot of blowback from protesters, activists. it's really been escalating. they are really in focus because they are the biggest asset manager. firms haveig index also faced similar calls to action. now that blackrock has taken this step, the ball is really in their court for what they do next. the question is how vanguard and others may follow as well. amanda: one of the interesting aspects, it feels like a good investors, corporations are in front of policymakers and policies. we are seeing environmental policies go the other way, and you have one of the leading money managers in t

even though they're trying tesla is the ultimate larry fink stock. hat my imagination or was he choked up at one point, andrew? >> i think he's emotional about it but i do think he insisted and i believe him, that this was something that took, i mean in terms of making this decision, was a 12-month process, he was writing this letter, changed a lot and it was much more about, frankly, the clients, the science and what he thinks is about to happen in terms of a huge rotation in the market. now that rotation may take five years, may take a decade, longer. >> 50. >> i think he's trying to get ahead of it. >> jim, we just had ralph nader say that jamie diamond's fault because jpmorgan is still invested in fossil fuel companies. >> no. >> do you think we need to divest >> no. i -- no. look, i think you have to be -- look, we had chevron on last week and mike is saying we're totally cognizant of what we have to do and we are doi ining best i just think it's just being a better citizen you just fossil fuels as mike wurst said you'll be in fossil fuels 30, 40

>> but it's a much bigger leap to label larry fink.fink. >> i'm talking about the managerial super-elite class he's the world et cetera largest asset manager. i'm aware -- i wrote a whole book of a class of people who run america. the data is very clear bloomberg news, says 500 of the richest people in the world increased their networki 1.2 trillion, net worth increase on, i guarantee most americans didn't experience that 25% return on their wealth last year so when you say -- your question is the absolute right question at least they're doing something. i wrote the whole book of at least they're doing something point. on the surface, i get it, this is -- at least they're doing something, philanthropy, at least they're doing something, corporate associate responsibility, there's all these at least they're doing something activities around. they seem nice you agree they're not solving everything, but here's the problem with the at least they're doing something. uphold, it justifies, it buys a bit of public mercy, and allows us to keep p

. >> black rocks larry fink warns he may change his investing habits to suit his beliefs about climatee, what impact will this have on his visitors? we'll discuss this coming next. at fisher investments, we do things differently and other money managers don't understand why. because our way works great for us! but not for your clients. that's why we're a fiduciary, obligated to put clients first. so, what do you provide? cookie cutter portfolios? nope. we tailor portfolios to our client's needs. but you do sell investments that earn you high commissions, right? we don't have those. so, what's in it for you? our fees are structured so we do better when our clients do better. at fisher investments we're clearly different. sini wasn't sure...clot was another around the corner? or could things go a different way? i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98 percent of patients on eliquis didn't experience another, and eliquis has significantly less major bleeding than the standard treatme

you talk about larry fink and blackrock talking about esc.ing to essentially muscle dramatically muscle up the esg assets under management, double their offerings, talking about sustainable flagship index products what does that mean? they'll have alternative to the s&p 500 essentially an esg/s&p 500 that's out there, going to talk about screening out fossil fuels, have strategies, new strategies focused on global energy transition, that means clean energy essentially, push and muscle this forward. now, you might say how important is esg at this point it wasn't until about a year and a half ago, to be honest with you, esg with a little bit of a joke we have $4 trillion etf business only 15 billion was in etfs. look only 3% of all of the assets are in esg. 3% you got to be kidding me it was less than 1% a year and a half ago so it's growing fast and my estimate, guys, this number 15 billion assets under management in esg will double in the next year. remember, david, you mentioned this before. the sec has had questions about these esg people t

at this point it looks good, and clearly larry fink has a lot of but actually, this is an has leakedarget. kruk has an a normal amount of resources. it is talking about embedding forecastility into its , its risk on the active and passive side. it is talking about a comprehensive embedding of sustainability into its business model, and that, we don't know yet, but in theory sounds like a pretty big deal. vonnie: he's been followed around by protesters and such, so it's been in his face. blackrock has $7 trillion under ofagement, and about 2/3 that is in products linked to indexes. how do you shift money out of indexes or out of the companies you don't like in those indexes? alastair: that is the real problem for blackrock. , which passive investor means it tracks the benchmark, but in the benchmark you might have a lot of companies that are hard to justify on a sustainability basis. fossil fuel companies, oil companies, coal companies. how do you justify being a sustainable investor and investing in those? instead, they have this engagement team, the biggest team on wall street in co

they only care about what's happening in their social responsibility world so, yes, i think larry finks said in your interview, andrew, there were two big red flags in that interview. the first was, he said that, hey, when he was writing this new letter on his social responsibility compacted sustainability that he's doing with his investment on the firm level, he was very emotional as he wrote it. why do you want an investment manager who is emotional about the investment decisions he's making the second red flag is that you asked him, this is the biggest one, you asked him about mandate that you have to focus on the profitability of creating the highest investment returns for your investors he said, yes, he knows about that he wishes he could change it he wishes he could change that mandate that you have to focus on creating the highest returns for your investors those are really troubling signs from a company that's now managing trillions of dollars for investors. >> hey, ken, obviously you -- i know you take the other side of this but speak to the economics of it at least my underst

and blackrock's larry fink sends a grave warning on climate.e now is bloomberg's sonali basak. what was your biggest take away from jp morgan? sonali: that fixed income trading revenue blew it out of the mark. everyone was talking about it. blah, blah, blah. alix: blah, blah, blah. it's been 47 minutes. [laughter] alix: i know what you're saying. sonali: jp morgan x a lot of the low interest rate could be an issue come up on top of that, we have to also think about what investment banking revenue will look like across the board. they beat on advisory, although slightly lower. they beat on equity underwriting. they were a little shy on debt underwriting. the reason i want to bring that up is because on debt underwriting, a lot of the big banks tend to complain about other people rising up and taking share on what the markets look like these days. the question here for bank of america and others moving forward is how much are the shadow banks edging into their world. alix: do we know that that is the reason? if you look at capital markets, it was

to, over time, become more environmentally responsible. >> are you sort of emboldened a bit by larry fink's comments there's been such selling the last year or two by institutions who say we're going esg, that means we dump all fossil fuel companies. what fink, whose firm is one of the top three providers of etfs that own pretty much every stock out there, it sounds like we're not going to indiscriminately eliminate all oil and gas stocks from our portfolios. should investors find a measure of hope in those comments? >> yes, i agree with that. just put some numbers on this. 26% of all professionally managed assets in the united states, debt plus equity, are already covered by some kind of esg screen that's $12 trillion, by the way, a lot of money of that, $3 trillion is tied to climate, but that does not mean that $3 trillion of funds are excluding every single fossil fuel stock there are some divestments we've mostly seen this in europe, places like norway but even when funds are divesting, they're very rarely eliminating every fossil fuel stock. they may well be eliminating coal, which is

those that feel strongly about this issue have lacked a champion now larry fink is that champion.oral ground and is revered by almost every ceo i ever asked about he was emotional and amazing interview with cnbc's andrew ross sorkin. as he said in the note today, "the evidence on climate risk is compelling investors to reassess core assumptions about modern finance. that comment there says we don't care whether or not you believe in climate change, we will punish your stock if you don't do something about it. we don't care if you believe it. don't think of this as some sort of bleeding heart thing. it's purely a risk assessment. if there is even a 50% chance the dire predictions of climate scientists are true, and i think that they are, well, it's going to be very bad for business. and if capitalism can't regulate itself on this issue, governments around the world will will then do for capitalism think about introducing fossil oriented companies they'll take to task the companies that don't do enough suddenly it could lead to high profile proxy fights that no company wants to be i

companies also have to take charge according to blackrock's larry fink. with the challenge requires long-term planning. last week, he outlined a plan for blackrock to adopt climate considerations in managing it $7 trillion in assets. it is not going to be fixed by a central bank. it will be fixed by accommodation of public and private. laura: boeing says it has grounded 737 max won't be clear to fly into the middle of the year. that is six months later than previous planned. it has faced recent setbacks. moreoftware will require work and some wiring needs to be shifted, but it will be u.s. regulators who make the final decision on when it is ready to fly again. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. anna: thanks very much, laura wright in london. councilonal economic director larry kudlow says china's willingness to change is a great building block for phase two with the united states. in davos asked about the details of the phase one d

larry fink warned that climate financeill up global more than many think. a central focus of its investment saturday -- strategy. ♪ being in the capital market when0 years it is clear the capital market bring risk forward. we don't wait until the risk is in front of us. there are times that happens and that was a great crisis but in most cases we navigate the risk and through that we mitigate most risk. there is a greater belief in science and as a result, we should not avoid the conversation about climate change because climate change is becoming an investment risk. investorsnt than focus on yield curve it was clear to make that we need to bring forward better risk tools to navigate risk. this is a component of the toter asking more companies be more self reporting on things d.ke tcf so a better understanding how each company is navigating these issues. i am not here to tell you these are the best tools. they are good tools and hopefully we have better tools. i do believe we are on this long path. in 2019, most of the sustainable funds outperformed regular

hundreds of millions of goods china has agreed to buy. >>> earnings season here and more >>> and larry finkvironmental sustainability a goal of all of the first's decisions. it is tuesday, january 14, 2020. "squawk box" begins right now. ♪ >>> good morning, everybody. welcome to "squawk box" here we are live from the marketsite in times square. let's look at he can quity few turz yesterday, we saw s&p 500 and nasdaq setting highs nasdaq up about 1% gaining 95 points dow up 83 points but did not make up for the losses the dow experienced last friday. this morning, you are seeing a slight give back dow down by only 12 points s&p down by about two, nasdaq down about nine. they've been up three of the last four days let's look at the treasury yield. looking at the 10-year yielding

whether or not companies start realizing this or not but we did hear from blackrock just last week larry fink is here the c.e.o. who said that he's going to put sustainability at the heart of their strategy that's the world's biggest wealth manager and that would be a huge move of course critics are saying that the company is waist deep in fossil fuel investments so that's going to take a huge huge change but many companies are talking about going carbon neutral going top negative even. one company one german company that's bucking the trend is zeman it has said it's going to back a huge coal mine project in australia and a stranger itself is still a climate denier it says it only pollutes 1.3 percent of carbon emissions it is the world's one of the world's biggest polluters per capita so that is still a huge problem getting governments on board and briefly is the emphasis is on business to come up with solutions and you sort of got into this how realistic is that when profit really is their main concern and their shareholders concern. yeah well one survey from pricewaterhouse coopers has sho

i'm sure you will of seen the news of larry fink's letter.ake of it and what you think it means for the rest of the industry? reaction isirst welcome to the club. the journey towards green finance. we started in europe years ago and we are now number one in green bond issuing. we have committed ourselves to the paris accord and all of our policies and we decided next year all of our active funds be emt rated. there is fear of a -- there is here a powerful and long-term trend toward green finance which is demonstrated by the last move by larry fink. guy: you talk about the fact that next year amundi will rate all of its active funds esg. how do you resolve the tension that exists within the passive space? you have funds that are blindly investing into indexes, and at the same time you want them to have some degree of impact when it comes to the esg story. how do you resolve that tension at amundi? start with all of the active funds. here we have real leeway. obviously that is the start of a journey. we are giving esg ratings do all of the comp

larry fink has a lot of weight and these annual letters are agenda-setting for wall street.mous amount of resources. it is now talking about embedding sustainability into construction, talking about a comprehensive embedding of sustainability into its business model. that, in theory, sounds like a pretty big deal. matt: siemens says it will go ahead with a contract to supply an australian coal mine. environmental protesters in germany had called on the company to abandon the project. signaling systems for a mine in queens land, especially as bushfires linked to climate change ravage the continent. why is siemens pushing ahead with this plan to help burn coal? >> the easy answer is they have a contract and they have an obligation to fulfill for the customers. siemens is not to building a thermal coal power plant. they are merely supplying technology for rail line that is supposed to connect the future coal mine with the coal so the quantity can be moved. still, what is happening in munich at the headquarters, people camping there protesting for 24 hours, putting pressure on t

. >>> still ahead, black rock's larry fink says climate change is about to trigger a fundamental reshaping"osg enclin be" meback after this. ♪ ♪ >>> welcome back here's a look at the closing bell big board the main indices on the top, s&p and nasdaq below the flat line a volatile intra day session but we had record all-time closing highs. the dow eeked out a slight gain. the top performers on the second line, pfizer, jpmorgan chase and the bottom performers underneath apple slipping having had a great run, down 1.4% today. >> it is time for a cnbc update with sue herera. >>> a developing story at this hour 17 children and 6 adults are now being treated for minor injuries in los angeles after a delta airlines flight dumped fuel while flying over that school's playground the faa saying that delta airlines flight 89 on route from lax to shanghai declared an emergency shortly after departing l.a.x. as a mentioned it is a developing story we'll give you more headlines when we have them available to us. >>> in washington senate majority leader mitch mcconnell saying the senate's trial of preside

as larry fink put it, environmental risk is investing risk. nejra: dani burger, thank you so much.e big interviews to look forward to on the final day of the world economic forum. the ceo of volkswagen joins us. we will speak to the german health minister, european stability mechanism managing director, you're a group president, and the governor of the bank of france. all of that live from davos. plus, ecb president christine lagarde joins us for hers firs -- her first interview of the date. don't miss that interview. this is bloomberg. ♪ ♪ >> phase one is about breaking down trade barriers. you know, that's a very market oriented approach. we can get those exports in the next year and the year after that. that is a big growth factor for the united states. >> i think it is good we see some degree of dÉtente between the two. it is about time we see some of those nations, you know, at least contain and hopefully rollback. >> do we have a more protections -- for example, in our case, to intellectual property? yes. do we think this is sufficient? no. but is this progress? yes. >> i thi

later, larry fink explains why blackrock is making an all-out commitment to sustainable investing. y: climate change is not going to be fixed by a central bank. viviana: coming up, perspectives on politics and policy as our review of the world economic forum continues. >> let's look at the facts. let's look at how the economy evolves. viviana: this is bloomberg. ♪ viviana: welcome back to this special edition of "bloomberg best." we are featuring conversations from the world economic forum in davos. i'm viviana hurtado. in 2020, this annual conference drew nearly 3,000 attendees from 117 countries. this includes at least 119 billionaires, 53 heads of state, and central bankers. on friday, ecb president christine lagarde spoke with bloomberg about policy and politics. christine: we need to do a lot of stock taking, looking at the effectiveness of what we have done, learn from other countries around the world as well in the process. you know that the fed is undergoing the same exercise. and we need to take time to reach out to the parliament, to academics, to people, to those interest

we hear the views of larry fink. later, how china aims to reduce emissions. >> we are back with the diversity of views at demos this year. the climateump and campaign are competing for the spotlight. david: the swedish teenager brought a stark message. >> the climate and environment is a hot topic right now. there are a lot of young people pushing them up but to see it from another perspective, nothing has been done seeing as the global missions of co2 has not reduced >> -- produced. that is what we are trying to achieve, among other things. we are all fighting for the environment and the climate. from that aspect, what has been completely done, seeing it from a bigger perspective. basically nothing. >> this is not a time for pessimism. this is a time for optimism. doubt is not a good thought process. this is a time for tremendous hope and joy and optimism. but to embrace the possibilities of tomorrow, we must reject the perennial prophets of doom in their predictions of the spirit -- of the apocalypse. dabo's, weo a

. >> all i know is larry fink has appeased the industrial complex are about five minutes on this.y're gonna come back looking for more. >> he gets it from both sides. if he doesn't do enough to get him, and then people believe in milton freeman, they say don't worry about vallely is just maximize returns. coming up investors give their stock picks for 2020. but intel ceo bob swan on self hey, saved you a seat. this round's on me. hey, can you spot me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com and my lack of impulse control,, is about to become your problem. ahh no, come on. i saw you eating poop earlier. hey! my focus is on the road, and that's saving me cash with drivewise. who's the dummy now? whoof! whoof! so get allstate where good drivers save 40% for avoiding mayhem, like me. sorry! he's a baby! intel corporation is a leading maker and silicon chips plano priestly port in our lives. year ago this month bob swan took over the seventh ceo of

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and things need to be fixed. >> what did you make of lar larry fink's letter last week?'s fine. climate is a real issue. i think most people want to be part of the solution we are going to be 100% green this year. we only do responsible and we aren't doing it and you need a transition you need government policy government policy. it's the only thing that will globally solve this problem and at the end of the day you need carbon tax and the great thing called the carbon dividend where it doesn't get sent back to washington it gets sent back to the people and you start buying things or doing things that make more sense. >> does it make sense for companies like microsoft to announce their own plans or try to be carbon negative or try to run expensing around carbon? >> it makes sense to show their intent and to want to do a better job and say it's important. >> is that real? >> it's not going to solve the global problem okay you have two countries that are growing dramatically i'm not against them america is already coming down 20% the last 15 years or something. you will no

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most important bankers in the world, the former head of the bank of england, and there will be larry finkt investment fund in the world. and they are leading the way, saying it's a money problem. so there is a stanford university study, which will be presented in davos, which has put a price tag. so the world needs to find 73 trillions to change the way we run energy, so to transition to carbon zero economy, we need 73 trillion. where will it come from? did stanford come up with the answer to that in their report? no, but the european union, which is one of the richest blocks in the world, has taken this direction very, very clearly. there will also be the new commission president in davos with her new green deal, which has put the money on the table. and, basically, this plan is very detailed, the green dealfrom the eu, it has been analysed last week in the european parliament, and it's real. it's basically putting a lot of money, 100 billion euros for the time being, which is going to go where it hurts. so, how do we close down the carbon fossil fuels industry? there will be a lot ofjob

larry fink who is known as you're only a very progressive c.e.o. as they go said we're going to begin to think that we're going to begin exiting investments from things like coal and we're going to create a sustainability kind of barometer for our investments and we're going to say that if your company doesn't match up to our expectations we will consider divesting and that is seen as a very big signal from one of the world's biggest financial companies to say something has to happen and they're not doing this or at least perfect they're not doing this because they you know necessarily believe strongly in climate change obviously does but it's because also it's be. because it's a reality he says that is affecting investments it is over the horizon is where he must look and this comes as people like 20 people who support climate change policy they're saying that maybe at some of these bigger companies financial companies banks asset managers and insurers they're going to start making the difference in blackrock is a good example of that ok so we'll

because we're almost out of time, one more thought, some of america's most important business voices, larry finkon and said, "unless we get to grips with the reality of climate change, we are going to be overseeing an economic crisis." do you think corporate america is going to force the trump administration to change tack on climate change? we've already seen the reality on the ground. america has had the biggest reduction in carbon and it's been because of technology and really because of the free markets. 0ur citizens are demanding a cleaner environment and the business community is meeting that, but we cannot fall... i'm going to say it again, it's not partisan, it is the truth, the far left here want to double your airfares, they want to add huge taxes to people's heating and air—conditioning and want to change our quality—of—life. there's a better way of going about this and we are pursuing that now with great impact. don bacon, congressman, i thank you very much indeed forjoining me from 0maha. thank you. hello there. wednesday was a rather grey and gloomy day for most of us — misty and m

is in position for all of those going forward >> what you made of larry fink's letter last week >> received letter this energy transition is moving really fast. any energy company that doesn't pay attention, start moving really fast. many of us are will be in danger of being completely off with society. got to remain economic spoke with larry yesterday came to the ibc meetings here. explained it it is not a get out of hydrocarbons he made that clear >> that's ludicrous. >> the world needs all forms of energy less less emissions but all forms of energy >> you saw what microsoft did. >> things like carbon capture storage do require deep pockets. energy, oil and gas are all working hard on this i hope companies like microsoft, the tech companies join forces on this so we can join technologies and invest together >> that is a very politic way of putting things i think you've been very outspoken about your frustration about climate change and esg people and the reality of fossil fuels will be here >> that's right. we'll have a third more people on this planet >> you know who will take the brunt

the reason that 2020 is a big us to do with larry fink's blackrock getting behind est investing.moved a lot of client assets. that's over $3 billion inflows in january. etf's in thethe est space created equally? how do you differentiate? there's a time that of etf's. we have the inclusionary strategy and on the other end you have exclusionary. tolusionary is, i want follow these principles. i will follow the companies that do the best with these crystals i care about. exclusionary, you say, i will exclude the worst stocks, the worst actors and that gives you a more broad-based allocation. our view is those products will get the most client assets going forward. vonnie: all right. things. a pleasure. that's james seyfert with bloomberg intelligence. 's impeachmentp trial may be to its last day with republican leaders likely blockter enough votes to witnesses and a quick president donald trump. detail for us the votes that are left, most likely, kevin. looks like republicans have been successful in not allowing witnesses. tennessee republican senator lamarr alexander coming out in

larry fink is well known for making very provocative comments.and now he is saying business has to think about climate change seriously. and as you say, so important because this company, they've got nearly $7 trillion of investments under management so not only is he an influential guy, there is a lot of money on the move and when he says the climate is the core of our thinking in terms of where the money is going, that makes a difference, doesn't it. it does and then it is where can that capital go? a lot is invested in traditional fossil fuel companies. if we are going to invest in climate change, the point he's making is that business is going to actively have to put capital into that sector and, as investors, they can help that. that is a big shift because in any pension fund in the uk, you have probably either got bp 01’ uk, you have probably either got bp or shell, a core part of any portfolio, the gift that keeps giving in terms of the dividends and the growth in the share price, but they are fossil fuel companies. they are. they are foss

you may have seen the announcement by larry fink, black rock, i think the world 's a set owner at $7 trillion, they committed climate and sustainability will be one of their core principles. the largests a set driver in the world has wind driving it and not surprising congress is moving forward more seriously looking at legislation. the other data point driving carbon, there was an article yesterday in forbes, i was reading it, going through energy across the board, renewables, declining costs and potential for renewables. this is from ford, one of those analytic pieces they do so well summarized and talking about the decline and cost of renewables. in other words it is cheaper to save the climate than to destroy it. pretty strong statement from forbes. i think it speaks to the move to move forward on carbon in the united states. the pronouncement of the ptc helps on that point and we're looking to create that level playing field so all energy sources are able to compete. we do by example of good bill we will be encouraging this coming year, senator wyden's bill, a technology approac

given your background at blackrock, we had huge rules -- huge news from larry fink.ow do you think he will do in terms of balancing competing demands? will there be challenges when it comes to making the demands when it comes to climate change? letterif you read his carefully as i did this morning, actually sitting in his office at 6:45, what it says is this is not an immediate event. this is a 50 year transition. he is certainly not saying fuels is dead and clean are all that matters. you have to look at this is a long transition. i also think you have to be careful. onlynot think that we are going to judge companies on their position on climate and other esg issues. what he is saying is you have to take that into account when you are investing, and it does affect the long-term valuation of companies. david: does it ever come up in the c-suite? when you're talking about possible transactions, do you ever say i like that deal but i will not do it because of esg considerations? ralph: again, this is not a cliff, it is a gradual change. there is no question that esg is

you saw what larry fink said earlier, in that he is going to use blackrock to that front and center.nother tension when it comes to the activists. how does it work? which way do i look? jim: exactly. i think the movement of esg from the periphery to the center stage over the last two years is probably as significant as the rise of activism. i thing it is also going to fundamentally disrupt asset management in the way not only passive managers, but also active managers, thing about prioritizing esg in their investments. you're absolutely right, it is yet another agenda rewards and management teams have to take into account, or if they ignore it, they will do it at their peril. vonnie: there are definitely some tactics that are becoming more en vogue, but first, i'm curious as to who these rookie activists are. do they have a market impact? that's part of being an activist. jim: they are primarily hedge funds. there's also a few active managers in that group. newberger berman, fidelity international. we've also seen, i wouldn't call it activism yet, but pretty vocal behavior. wellingto

blackrock chairman and ceo larry fink recently warned that climate change will upend global finance more pledged it will make sustainability a focus of its investment strategy. in davos, he spoke to editor-in-chief john michaelwaithe at the bloomberg event, the year ahead. ♪ >> being in the capital markets for 44 years, it is very clear we in the capital markets, we bring risk forward. we don't wait until the risk is in front of us. there are times it happens, and that was the great financial crisis, but in most cases, we navigate the risk, and through that process we mitigate most risk. there is a greater belief in the science and as a result of that now, we should not avoid the conversation about climate change, because climate change is now becoming an investment risk, and no different as investors focus on a yield curve or whatever forms of risk we have. it was very clear to me now we need to bring forward better risk tools to navigate risk. and this is, a component of the letter asking more companies to was be more self reporting on things like says be and tcfd, so we have better cl

day, we have the seen blackrock move and when you read larry fink's logic.e says this is the right fiduciary decision but it is not a moral question. it is about economics. blackrock's own analysis says no more coal. that power generation is technologically obsolete. it is on its way out. when the biggest investor in the world says those words, they are pretty strong. that says australia is the second biggest coal exporter, we have to support for a decline in the long term of what is a key product for australia. a key export frost all you. cost ofou mentioned the inaction. in what areas will be see that the most? the 20 odd lives that have been lost, apart from the hundreds of thousands of houses destroyed, everyone in australia is now going to have rising insurance premiums. normal, so new insurance premiums are going to go through the roof. that is one example where every one of 25 million australians will bear the economic cost of inaction from our government. to me, that changes the political context but there is a real economic cost of inaction. at the

blackrock made quite a splash this week with ceo larry fink's letters saying the firm would redoubleorts on climate change to the types and investments it made. we sat down with the former ibm ceo, and the man who heads the rock creek park, and asked what sustainable investment really adds up to. >> if you view tsg as your brand, this is your brand. it is different than you view it as an initiative because you think the timing could be good. if you live by that as your value system -- i'll give you a quick example. we watched this thing called smarter planet. smarter solutions in studies. we launched it in 2008. it had to do with climate, had to do with cleaning up galway bay, the hudson river. all these things. those products were every bit as economically attractive to our returns and everything else we were doing. you can say, you are a technology company, you could use software -- but nonetheless, we thought there was an emerging need for smarter cities, smarter environment. by the way, our workforce, hiring, the applications of ibm after we launched quadrupled. david: this is cl

. >> all i know is larry fink has appeased the industrial complex are about five minutes on this.rom both sides. if he doesn't do enough to get him, and then people believe in milton freeman, they say don't worry about vallely is just maximize returns. coming up investors give their stock picks for 2020. but intel ceo bob swan on self but intel ceo bob swan on self driving cars. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. oh, your she's landed.ed. and she's on her way to our house. what. i thought she was coming next weekend. i got it. alexa. start the coffee. set the temperature to 72. start roomba. we got this... don't look. what? don't look. lets move. ♪ mom. the lexus es, eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. wean air for

ceo larry fink said awareness is rapidly changing, and i believe we're on the edge of a fundamental reshapingf finance. earlier this month, blackrock joined climate action 100-plus. its members lobby companies to lower their carbon emissions in line with the paris agreement. >>> a new eight-year labor deal for the wnba. for the first time the average salary will pass $100,000. the deal would allow top earners to earn more than half a million, lesser stars seeing a bump up to $300,000. it's not all about the money. the agreement has initiatives to promote and support motherhood and improves the players' travel situation. if the players and the board of governors okay the deal, it will run through 2026. >> travel a huge issue especially as a new mom. >>> while you were hopefully sleeping, late-night hosts delivered their post-debate punchlines. >> democrats held their latest primary debate tonight. former vice president joe biden and senator bernie sanders were placed at the center podiums instead wherever they're usually placed, in the balcony. [ laughter ] what happened? the field of candidat

. >> let's switch to larry fink and his annual letter, which is drawing a lot of attention this morninghe says at the core of blackrock's investing properties in the future will be an evaluation of sustainabilile, carbon footprint and a company's policies and practices with respect to climate change. it mimics or echoes a lot of what's going on in europe among institutional investors. what do you think of this as a principle and a way to do business >> well i think fabulous i think it says what the future investors are thinking when i meet with younger investors, robin hood people, people who trade, millennials, they ask first.ing the environment? you've got to make one of your stake holders, not just your customer, shareholders, workers, but the earth. so i think this is an admission by larry that we have to do it, the deal book piece that andrew did this morning was so fabulous and his interview with larry is amazing. remember, we shouldn't just talk about the headlines. he has thought about this thing so long and so hard and it's almost as if list b b, he's trying not to be emotional

larry fink coming out, saying he was going to evaluate all the investments in their portfolios on the of sustainability and other social measures. go ahead. >> one other thing tesla has an order in for 25 -- sorry, u.p.s. has an order for 25 tesla tractor trailers. they're leaning into this. the idea is to save not only on the vehicles themselves but long term on maintenance repairs. you have the fleet the size of u.p.s., that's a substantial savings. >> you bet professional athletes moving off the fields and into venture capitals as they look for a new kind of play book. kate rooney joins us live from san francisco with the details hi, kate. >> that's right, tyler athletes and venture capitalists telling me it's a win for both parties, having more money to invest in salary caps. venture capitalists want athletes on the deal because they bring millions offe followers. they can get in a lower minimum investment and in return they can spread the word about the company, lowering marketing costs. bay area athletes have a leg up on getting in on these deals with silicon valley right in the