Bank of America weighs Unilever mask on ESG spot: Davos Update

Ralph Hammers, CEO of UBS Group AG, says that despite uncertainty about where the world is heading, wealthy clients are sticking to their investment, although not necessarily putting new money into the market.

After several pushes, “Of course it’s unclear at the moment,” Hammers said in an interview with Bloomberg Television at the World Economic Forum in Davos on Tuesday, expecting more clarity in a few months.

European Central Bank President Christine Lagarde has sought to pave the way, saying the eurozone will leave the era of negative interest rates in the coming months as the currency bloc reaches a “turning point” in monetary policy. In an exclusive Bloomberg TV interview, he added that a recession is not the central bank’s baseline scenario for the eurozone.

Russia’s war in Ukraine is hanging over gatherings in the Swiss Alps as global leaders struggle with energy inflation, food shortages and climate change. Speeches by Spanish Prime Minister Pedro Sanchez, European Commission President Ursula von der Leyen and NATO Secretary General Jens Stoltenberg were among the highlights on the second day of the private event, which returned after a two-year hiatus due to the epidemic.

Core development

  • Lagarde said the ECB would not be rushed as an official act to reduce prices
  • The UBS CEO says asset clients are digesting a triple hamie of shock
  • The UK should go ahead with the windfall tax, Sorel said
  • Ukraine has asked Mask’s Starlink to help with the weapons
  • The Latvian president wants a NATO brigade to intercept Russia

All time CET:

ECB’s Villarre finds no consensus for half-point hike (10:20 am)

ECB Governing Council member Franসois Villarre de Galhous has pushed back against the idea of ​​a half-point rate hike.

“A 50 basis-point increase is not part of the consensus at this time,” the governor of the Bank of France told Bloomberg TV. “Interest rates will rise slowly.”

Anel Russia seeks effective buyer for unit (10:10 am)

In an interview with Bloomberg Television, CEO Francesco Stares said Enel SpA needed to find a “viable buyer” for its Russian unit once the sale process began in the wake of Russia’s aggression in Ukraine.

Stares added that “we must be prepared to push for Russia’s fossil-fuel supply.” “We have to be prepared for the worst. This is not an easy situation, “he said.

Gnodde says M&A business is ‘amazingly strong’ (9:40 am)

Richard Gnodde of Goldman Sachs Group Inc. said the M&A pipeline is “still surprisingly strong” as companies look to buy assets as prices fall.

“We haven’t really seen a recession,” said the CEO of Goldman Sachs International on Bloomberg TV. About 70% of Goldman’s employees now typically stay in office, and that number “flows upwards,” he added.

CATL saw the switch from the combustion car by 2035 (9:30 am)

The world’s largest manufacturer of electric-vehicle batteries has said it expects sales of combustion vehicles to last in major markets by 2035.

Contemporary Amperex Technology Co. The displacement of fossil fuel-powered engines is pouring billions into rapid expansion of production to meet expected demand. Chief Manufacturing Officer Jun Ni made the prediction at a panel on Tuesday, where he did not mention any geographic markets. Nevertheless, it is in line with major automakers such as Volkswagen AG, which plans to stop selling combustion cars in Europe by 2035.

Swiss Ray Ukraine War Injuries (9:20 am)

Swiss Ray expects যুদ্ধ 10 billion to $ 20 billion in losses for the insurance industry from the Ukraine war, Chairman Sergio Ermotti said in an interview with Bloomberg TV. Between the war and the Covid-19 epidemic, the insurer has seen the recent quarter as part of its turmoil, he said.

“You see more people taking life-insurance coverage, you see people taking more cyber-risk protection as a result of what is happening in Ukraine,” he added.

UBS sees clouds clear in next three months (9:15 am)

UBS CEO Hammers says he expects the global market to see more clarity in the next three months as clients digest the results of recent geopolitical events. “We had to digest three big shocks: the epidemic shock, the war shock and the energy-transition shock,” he said. “The push of supply and the push of demand all blend together.”

Rich clients, he said, are not panicked. Although they do not necessarily invest in new markets, they are still investing. “I’m not sure they’re worried about what’s coming,” Hammers said. “It’s just that they don’t know what’s coming.”

Unilever sees commercial logic for ESG move (9:15 am)

“Investors are urging us to put sustainability and ESG at the center of our business model, citing consumer demand, cost efficiency and the ability to attract top talent,” said Alan Joppe, CEO of Unilever.

But obviously, the lack of harmonious metrics is a big challenge. “We’re in danger of letting the perfect get in the way of the good, letting the complex get in the way of the easy, and letting the locals get in the way of the world,” he said.

BofA’s Moynihan Kasturi understands ESG frustration (9:05 am)

Bank of America CEO Brian Moynihan says he “understands the frustration” with Tesla Inc.’s Elon Musk’s ESG metrics, which penalize companies for historical or obscure reasons.

Speaking at a panel, Moynihan said his bank faced similar problems with previous acquisitions that included overhanging lawsuits, for example, despite extensive commitments to investors to meet ESG standards. He was responding to a question about a recent tweet from Musk calling the ESG a “shocking scandal.”

Unilever’s Jope is embroiled in controversy over whether “Elon can relax.” Tesla could be “at the top of the pack” in one of the ESG rating agencies, he told the same panel. But we should not be able to “pick and choose” values, he added.

Recession is not ECB baseline, says Lagarde (9am)

Lagarde rejects the notion that the eurozone is currently in recession, acknowledging the need to be “very focused” on economic development. “We don’t have it as a baseline,” he said.

“We’re not in panic mode,” he added. “We are now at a stage where we are sure that we will stop buying net assets in early July. We have decided in June that this will pave the way for a rate hike which will come after that reasonably.”

European Central Bank has reached “a turning point” in monetary policy, says President Christine Lagarde, who stressed that the ECB is not in a “panic mode”

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Lagarde: Monetary policy at the ‘turning point’ (8:50 am)

Lagarde said he decided to chart the future course of monetary policy in a blog post on Monday to address “expectations that were not necessarily established.”

“We’re clearly at a turning point now, and I thought at this point it was appropriate to explain what the journey is, what the direction of travel is, what the relatively short-term destination is and what our goal point is,” Lagarde said in an interview with Bloomberg TV.

“I thought it was a good time for a combination of instability, expectations that were not necessarily established, and the strong convergence created by the Governing Council due to multiple positions expressed over the last few days,” he added.

Top polluters face $ 67 trillion bill to meet climate target (8:45 am)

According to a report released by the Polish Economic Institute in Davos on Tuesday, the world’s seven largest polluters will have to spend $ 67 trillion by the end of this decade to achieve climate neutrality.

Economies – China, the United States, the EU, Brazil, India, Russia and Japan – account for 70% of global greenhouse gas emissions. Their efforts to meet the goals of the 2015 Paris Agreement are key for the world to limit warming to 2 degrees Celsius above the pre-industrial level “well below”.

With current investment commitments to green their economies, the EU will reach climate neutrality in 2056, followed by the United States four years later and China only in 2071 – 11 years later than its target, according to the report. Russia will not be able to reach climate neutrality until 2086.

Edelman CEO praises more intimate, ‘less cold’ Davos (7:25 am)

Richard Edelman, chief executive officer of public-relations firm Edelman, said he was a fan of this year’s Davos itinerary, saying its small scale was fueling better conversations.

In a Bloomberg Television interview, Edelman said, “Davos was really great because of its small size, the CEOs really want to talk.” Also, he said, it’s “less cold.”

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