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Mark Carney Urges Markets to Fully Price Climate Risk
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Published in Business and Finance on Thursday, December 4th 2025 at 12:44 GMT by Reuters- 🞛 This publication is a summary or evaluation of another publication
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Key Takeaways from the Reuters Next Conference: Highlights, Quotes, and the Market Pulse
The Reuters Next conference, hosted in New York in late February 2024, drew a who’s‑who of the finance and markets world: central bankers, CEOs, investment leaders, and policy experts. The event – a hybrid of panel discussions, fireside chats, and breakout sessions – was billed as a “blue‑sky” forum for discussing the future of global capital markets, climate finance, digital currencies, and geopolitical risk. In the wake of the conference, Reuters published a feature that distilled the most memorable and insightful quotes from the day’s speakers. Below is a comprehensive summary of that article, including the speakers’ main points and the broader context that links each observation to today’s economic reality.
1. Mark Carney – “The climate risk that’s currently priced in is still far from being fully priced in.”
Who is he?
Former Governor of the Bank of Canada and former head of the UK’s Financial Conduct Authority, Mark Carney has become one of the most vocal advocates for integrating climate risk into financial regulation.
What did he say?
Carney warned that even as the markets begin to react to the threat of climate change, the valuation of assets that are exposed to carbon‑related risk is still far from reflecting the full potential shock. “If a company’s balance sheet is not adjusted for the physical and transition risk associated with its exposure, the market will be in a very fragile position,” he said.
Why it matters
- Risk‑adjusted returns: Investors must now incorporate carbon risk into discounted cash flow models.
- Regulatory momentum: The European Union’s Sustainable Finance Disclosure Regulation (SFDR) and the U.S. SEC’s climate disclosure proposals are already in motion.
- Capital allocation: Carney’s emphasis has spurred banks to tighten credit to “high‑carbon” borrowers and to consider green bonds as a more sustainable vehicle for raising capital.
Related link – The article linked to a full report on how ESG criteria are reshaping capital‑market valuations. It offers a deep dive into the “Carbon Footprint Index” and how asset managers are measuring ESG exposure.
2. Gita Gopinath – “Inflation’s tail‑winds have grown fatter, not thinner.”
Who is she?
Gita Gopinath, Managing Director of the International Monetary Fund (IMF), is a leading economist on global macro trends.
What did she say?
Gopinath cautioned against complacency, pointing out that the persistent inflationary pressure across commodity prices, wages, and supply‑chain bottlenecks has led to a “fat tail” of possible scenarios that policymakers must prepare for. She urged central banks to maintain a more “cautiously aggressive” stance.
Why it matters
- Policy coordination: The IMF’s new “Inflation and Policy Outlook” document underscores the need for harmonised interest‑rate policy among major economies.
- Debt sustainability: Many emerging markets are facing higher debt‑service costs. Gopinath’s warning signals that the window for accommodative policy might close sooner than anticipated.
- Investor sentiment: Her words contributed to a temporary dip in risk‑seeking equities as traders re‑assessed risk premiums.
Related link – The article links to the IMF’s 2024 “World Economic Outlook” for detailed projections on commodity price trends.
3. Larry Fink – “The future of banking is digital, but not at the expense of human capital.”
Who is he?
Chief Executive Officer of BlackRock, Larry Fink is known for his influential “Global Outlook” annual letters.
What did he say?
Fink spoke about the rise of fintech, AI, and blockchain in reshaping the banking sector. Yet, he cautioned that the human element remains vital for trust and decision‑making. “Digital infrastructure can’t replace the nuanced judgment of a seasoned risk manager,” he argued.
Why it matters
- Technology adoption: Asset managers are investing billions in AI to automate portfolio construction.
- Cybersecurity: With increased digitisation comes heightened risk of cyber‑attacks, especially in emerging markets.
- Talent pipeline: Fink’s point signals a shift in recruiting strategies, with banks placing a premium on data science and cybersecurity skills while maintaining a core of risk‑management professionals.
Related link – The article points to BlackRock’s “Digital Assets Strategy” page, highlighting the firm’s investment in regulated digital currencies and stablecoins.
4. Raghuram Rajan – “The narrative of endless growth is being rewritten.”
Who is he?
Former Governor of the Reserve Bank of India (RBI), Rajan is a seasoned scholar on macro‑economics and structural reform.
What did he say?
Rajan critiqued the conventional growth narrative that ties GDP expansion directly to financial market performance. He urged a more balanced view that also considers inclusive growth metrics such as employment rates, poverty reduction, and infrastructure development.
Why it matters
- Policy reform: His comments are especially relevant to policymakers in India and other emerging economies grappling with the need for “green growth” and inclusive development.
- Investment strategy: Asset allocators are now factoring in “human development” indices when deciding on exposure to certain markets.
- Socio‑economic resilience: Rajan’s emphasis on inclusive growth aligns with a growing consensus that long‑term market stability hinges on broader social progress.
Related link – The article referenced a research paper by the World Bank on “Inclusive Growth Metrics in Emerging Markets.”
5. Mary Barra – “The automotive sector is on a rapid, disruptive shift.”
Who is she?
Chair and CEO of General Motors, Barra is a key voice in the electric‑vehicle (EV) revolution.
What did she say?
Barra discussed GM’s investment in battery technology and a shift towards a “carbon‑neutral” vehicle line‑up by 2035. She highlighted the role of strategic partnerships with suppliers, tech firms, and even governments.
Why it matters
- Industry impact: Auto manufacturers are recalibrating capital budgets toward EV production.
- Supply‑chain dynamics: The shift amplifies demand for rare earth elements, lithium, and cobalt.
- Regulatory landscape: Governments across the world are tightening emissions standards, providing a regulatory boost for EV adoption.
Related link – The article linked to GM’s sustainability report, which outlines the company’s net‑zero pathway and its role in the broader EV ecosystem.
6. Jeremy Grantham – “Markets have become a “bubble” in every sense of the word.”
Who is he?
Founder of GMO, a leading investment research firm known for its contrarian market views.
What did he say?
Grantham warned that the “bull market” of the past decade has created a valuation bubble, especially in technology and biotech sectors. He urged investors to prepare for a potential correction, citing historical analogues such as the dot‑com bubble and the housing crisis.
Why it matters
- Portfolio risk: The warning has prompted many to rebalance toward undervalued sectors like utilities and consumer staples.
- Behavioral finance: Grantham’s insights echo the “herding” behavior seen in markets, reinforcing the need for disciplined risk management.
- Policy implications: Regulators are exploring mechanisms to mitigate systemic risk arising from over‑valued markets.
Related link – The article points to a research note by GMO that offers a technical breakdown of market valuation ratios and their historical trends.
7. Additional Themes and Takeaways
Geopolitical Tensions and Market Volatility
Several speakers, including an unnamed IMF official, highlighted how supply‑chain disruptions due to geopolitical conflicts in Eastern Europe and the Indo‑Pacific have added an extra layer of uncertainty. The article linked to a Reuters piece on the “Impact of Ukraine–Russia conflict on global commodity markets.”Regulatory Landscape
A recurring motif was the push for greater regulatory oversight. Whether it’s the U.S. SEC’s proposed climate disclosure rules or the EU’s Digital Finance Strategy, regulators are stepping up to fill gaps left by rapid technology adoption. A link to the European Commission’s press release on the Digital Finance Strategy was embedded in the article.Digital Assets and Central Bank Digital Currencies (CBDCs)
While some speakers were bullish on digital currencies, others expressed caution. The article included a link to a Bloomberg‑investor blog that discusses the current status of CBDC pilots across the G20.Sustainable Investing
The overarching consensus was that sustainability is not a niche but a core pillar of modern investment strategy. The article linked to the “Sustainable Investing Index” which tracks ESG‑rated funds.
8. How These Quotes Shape Tomorrow’s Markets
The quotes captured at the Reuters Next conference provide a snapshot of how the global financial ecosystem is re‑balancing in the face of new pressures. From climate risk and inflationary tail‑winds to the digital transformation of banking and the re‑definition of growth, these speakers collectively illustrate a world that is moving beyond the “old” frameworks. Investors, policymakers, and corporates alike will need to incorporate these insights into their decision‑making processes.
If you want to dive deeper, the Reuters feature offered a suite of links to supporting data:
- World Bank ESG Data Sets – For a granular look at ESG ratings across industries.
- IMF “World Economic Outlook” – For macro forecasts on inflation and growth.
- BlackRock Digital Asset Strategy – For an overview of regulated digital asset infrastructure.
In sum, the Reuters Next conference served not only as a platform for high‑level dialogue but also as a crucible for ideas that will guide financial strategy for the next decade. The quotes from finance and market leaders capture the complexity of today's challenges and the optimism of the solutions that are being forged.
Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/companies/notable-quotes-from-finance-and-markets-speakers-at-the-reuters-next-conference/ar-AA1RF5fx ]
