Discussions examining threatening prosperity and exploring solutions. It is 100 clear to us that the cost of inaction is higher than the cost of action. When the rules are clear, we are going to follow those rules. Time is running out to address climate change, so i think it is right to hold our feet to the fire. Abigail this is all straight ahead on bloomberg best. Abigail hello, im abigail doolittle. Welcome to a special edition of bloomberg best with highlights from the Bloomberg Business global forum. This annual event brings together the worlds most influential leaders in business and government to address the most pressing global challenges and explore opportunities for solutions. The theme of this years conference was restoring global stability. The Prime Minister of india, narendra modi, delivered the keynote address and joined Michael Bloomberg on stage for a conversation. We believe the earth is our mother, and we do not have the right to exploit our earth. We are only have the right to use it for our needs. India has this fundamental principle, we can understand needs, but we do not want greed. This is a fundamental principle. I believe that the challenge of Global Warming in the world today, there are governments, et cetera, that are working on its, to be able to find a solution, it is only the behavior of citizens that can make an impact, and therefore, Human Behavior needs to be in harmony with nature. We need to go forward keeping the environment in mind. India initially set a target of 175 gigawatts for the production of renewable energy, today, we are well ahead of the deadline to achieve this target, we have already achieved 120. Yesterday, when i was speaking at the united nations, i set a new target for myself, 450 gigawatts with respect to climate. There is another related topic to which we have not focused our attention on and that subject is water. In india, we have taken a call on an initiative which focuses on rainwater harvesting, recycling, we started a big Campaign Across the country, and we also want to make sure we reinvigorate our rivers. We are trying to focus on this as well. We have also banned the use of single use plastic and we are starting a very big movement to stop the use of single use plastics, so with respect to climate and the environment, we want to adopt a holistic approach and move forward together. You talked about plastic, water, renewables, do you have any expectations of reducing the amount of coal burnt in india . You are absolutely right, the Third Largest coal reserve is in india. A poor country like india, we cannot ignore it, but there is a solution to it. Number one, we will have to change the way of mining, and carry out underground mining so they dont do any damage to the environment. The other solution is coal gasification. By using that we can use clean energy, and we are calling out other countries to bring out their technologies so we can use coal gasification. We want to use gasified coal. We cannot deny the assets india has, at the same time, we want to see how we can use these assets in an Environment Friendly way. That is what we are focusing on. Abigail these thoughts from the head of state were followed by insights from power players in the private sector. Francine lacqua moderated a lively discussion between jamie dimon and bob iger. Francine what advice would you give or take from politicians . I seek advice from politicians when it comes to regulation in various countries around the world, get advice about Government Relations and the knowledge they may have about government officials, but most politicians you deal with have never been in business. So seeking Business Advice from politicians is something i dont normally do. They help us enter markets, but it is pretty limited to that. Policy is complicated. Collaboration is necessary. The road to hell is paved with good intentions. A lot of policies are supposed to lift up the people of the country and they drag them down, i can give you a million examples. Really good politicians should figure out the policy, figure out what can be achieved, and get it done, as opposed with going with the wind and thinking oversimplistic things will actually work. Countries around the world are doing great for people and some are doing terrible. The terrible is always in the name of good. Always. Just listen to the politicians. Do the right policy and move on. If you dont get reelected, so be it. Francine how often do you get asked if you are going to run for Public Office . Pretty often. And your answer has always been no . Not now . My answer has not always been no, but my answer is no. I discussed it with my wife and she said you can run for any office you like just not with this wife. Find someone else. [laughter] that was somewhat discouraging. Francine how many times have you been asked . I see people ask all the time, hundreds of different people, so i dont think someone should be flattered. Im not going to, i love what i do, i think we can make our production contribution around the world from the platform i have. Francine is that because you think you can make a bigger difference as chief executive . Its the best i can do. Do my job well and that does lift up people around the world and finance economies, cities, states, and i love it. Francine is there a vacuum left by politics and politicians that chief executives must fill . I hope not. I dont think there is anything wrong with a chief executive going into politics, but i dont think theres a vacuum that needs to be filled. The world needs great leaders. I think our political system, at least in the United States, is not designed to develop great leaders or to encourage more people to seek Public Office. Theres probably an overlap of skills between a ceo and a good politician. You are basically getting to an area that is far more complicated than you have dealt with before. A lot of people, you learn the retail political skill, and i wouldnt expect a ceo to be able to be good at Something Like that. Francine you have to be popular as a politician, do you have to be liked as a chief executive . I dont think you have to be liked, you have to be respected. Its not a popularity contest. If you try to run a popularity contest, then you dont make the tough decisions. I think you have to be fair, and known as somebody who is fair and accessible and communicative, but popularity is not one of them. Abigail still ahead, as we look back, perspectives from heads of state and government, discussing crucial issues. A positive idea to withdraw from the nuclear agreement. Plus, a lineup of Global Investors addresses the question of how can finance combat climate change. You are raising capital that has to be segregated. Abigail and up next, banking figures weigh in on the economy. This whole movement, particularly in europe, there is some kind of warning sign, wakeup call. Abigail this is bloomberg. Abigail this is bloomberg best. Im abigail doolittle, looking back at the 2019 Global Business forum. The conference brought together chief executives from some of the worlds biggest banks, Asset Managers, and prominent investment groups. Lets start with a panel that put an illustrious trio on the same stage. This Panel Discussed navigating global instability. When you have 13 trillion of negative Interest Rates, i dont even know what a negative Interest Rate is. Why would i take my take my money and give it to somebody, and for holding it, i have to pay them like it is a storage unit . Im supposed to get interest when i give people money. As Interest Rates go down, most of those places that have those negative Interest Rates, it is not stimulative. Because banks have trouble earning money in that kind of environment. If they dont do well, they dont grow their capitals. They cant extend credit, and countries dont grow unless there is credit extension. This whole movement, particularly in europe to negative Interest Rates, is some type of wakeup call. How did we get in that position . Why are we in that position . Not us as americans, but us as financial people looking at the world. Brian may know more than i do. It just seems thats not possible. Does the negative rate environment that we see around the globe tell you there is some underlying weakness we are missing . We know the obvious problems out there, but is there something substantial . I think steves point is right, there is the Monetary Policy decision to take rates to accommodate the economy and growth. They are lower than they have been historically, but positive. Other places are negative. There is a significant amount of it. I think there is a debate whether it transmits to the economy. If you look at some of the countries where the rate structure has been negative for five years, the banks have to pay interest because they are not going to give us 100 and get 95 back and think it is a great thing. In the u. S. , you already have a flexible economy. A lot of people, deep Capital Markets. The Banking System restructured. A set of rules you can understand. One law that covers the economy, the largest in the world, as opposed to multiple laws. You see the u. S. Continue to grow. Unemployment is low and consumers are spending. From a macro sense, all of the interesting things to ponder and worry about is offset by 70 of the u. S. Economy speeding up this activity all year. And thats chinas economy. When was the tension going to be really wrestled to the ground . Thats the question. I put that to you because you are operating in a hundred countries, i believe. Are we at a breaking point where we may see something snap, or can we continue on, especially from a consumer perspective, in a nice, gentle trajectory . Im not worried about growth. We have enough focuses of growth to come up. You heard the Prime Minister of india this morning, and i dont think what he was talking about was hype. If india gets moving again, and i think he has taken steps recently, like the tax cut, we are going to get another engine of growth for sure. All of the focus has been on america, rightfully. I think you will see an uptick in a lot of other parts of the world. It might be that we need more fiscal stimulus, perhaps we did earlier. It would be unusual at this stage in the game, for sure. Perhaps in europe, more fiscal stimulus. You dont want to get to the place where the central bank is monetizing that. There should be two separate decisions. Is this the time for fiscal stimulus . In the u. S. , probably not right now. Maybe in the future. And a separate independent Monetary Policy that takes the fiscal situation into consideration. We see, in the u. S. And europe, a lack of inflation. Is there a danger in that that lulled into complacency and we might have something if it gets back . The citizenry at large are doing this for the same thing. We are looking at the strength, wages will probably drop some, that may be a good thing. What we are confronting is that interface of centralbank targets versus the reality and the fact that none of the Central Banks really know how to engineer greater inflation in this world of global labor markets, Global Capital markets, and its becoming very difficult to get back to some of those targets of 2 , more or less. An impact fund is a vehicle that can invest in debt or equity instruments, but is particularly targeted at fitting some of the svgs of the u. N. , but measuring the impact the investment has, typically the carbonization or reducing pollution. This is where the measurement, statistics, and data become important. The engagement by the asset owners and Asset Managers with those organizations, be it public or private sector, will be critical. I dont think standardization will be the answer. Its part of the process. Who are you accountable to, in terms of the objectives set . We are accountable to our own moral standards and following the lead of the u. N. , but also, the asset owners, which trust us with their money. They often have different and diverse aims. Do you see a shift, in terms of direction of investment . We talked about it earlier. In the back. I think it is about 100 of our clients feeling this is a very important topic. We want sustainability to be at the core of what we do. We have decided to look at it in three different ways. One is to bring the framework into investment process to make sure the countries to invest in our on a journey with the framework. The second is to see to what extent many investors will fill it, 17 of them, a number of them. The third is to look at decarbonization, sustainable investments, water efficiency, addressing issues of water scarcity, and looking at sustainable solutions. That includes Environment Solutions that Companies May have, or even things like sustainable financing to allow more of these Infrastructure Projects that are needed and comes to fruit in a way that does not harm the environment. Thats all good from that point of view, but how receptive are the companies to these ideas . Increasingly, we are finding a more receptive audience. Everyone knows this journey has been going on for some time. Their own customers are looking for them to embrace the journeys, their employees are looking for that as well. This is a good thing. If you look at the Business Roundtable by saying it is a stakeholder responsibility rather than shareholder, most of these companies we are investing in are thinking about this themselves. Abigail youre watching a special edition of bloomberg best, with coverage of the 2019 bloomberg Global Business forum. I am abigail doolittle. Restoring global stability was the theme of the conference. They paid considerable attention to environmental instability. Mark carney moderated a session on harnessing the power of capital to fight climate change. It featured top executives from the World Largest pension fund, the Worlds Largest insurance company, and one of the worlds leading investment banks. The conversation has amped up materially over the course of the last year or two. There is no place i go with either ceos, investors, market participants. This is not a significant conversation. Volume is different, particularly in europe. You can feel the ground swell of popular sentiment that the urgency of this is elevated. In the u. S. , it depends where you are, in terms of level of engagement. It is up everywhere. There is a lot of focus on it. From a Capital Markets perspective and availability of capital, it is relatively niche in terms of where it operates. There is growth of green bonds over the course of time. Significant, last year, about 250 billion of issuance of green or sustainability linked bonds. That is very, very small, it is 1 , Capital Markets activity, it is very small. How do you find things that more mainstream is into the Capital Markets . Green bonds are terrific, but one of the issues is green bonds segregate capital. You are raising capital that has to be segregated in a certain way. The u. K. Is going to be in charge of cop 26, the Climate Policy process, next year, along with italy, and the following year, u. K. s g7 chair and italys g20 chair. One of the focuses would be what needs to be done to advance mainstreaming and aligning private capital flows to a two degree world . We need to have clear policy framework. At the same time, the investors should take advantage of the lack of clear policy at the moment to make a better return for the investors. Pushing the policymaker to create the framework and to increase the profitability of our investment. Professional investors should take advantage at the moment. We really dont see that very often. We need more Publicprivate Partnership in this space, so the Pension Funds and Insurance Companies can work with the Development Banks and the banks should be able to sell mature portfolios, rather than ask for more capital in order to make room for the private investors in that space. That is one area. The second area, which is important in my view, is there needs to be more pressure on the sovereigns. I believe the imf needs to incorporate climate analysis in its analysis of the residence of countries. That would probably make the way for a better alignment for Better Capital and public capital. There are opportunities to be creative. Fundamentally, i will go back to the longterm policy framework and create the commercial incentive pressure on government. When you get to the emerging markets, the multilateral Development Banks are important. You dont have the Capital Formation to support what we are talking about, so you need help. Those are the things i would emphasize. Abigail much more coming up from the bloomberg Global Business form. Technology can solve a host of problems and create risks. Top executives discussed the implications of regulation. Regulation and innovation are upfront. Abigail plus, insight from the Public Sector has the state speak on topics of global importance. Trad