Transcripts For CNBC Street Signs 20240713

President of the United States is the president of the United States. He can do whatever he wish and he is not accountable to me or anybody in this room. Renault shares fall to the bottom of the 600 as reports emerge that nissan is gearing up for a potential divorce. The pound falls below 1. 30 against the dollar after the bank of Monetary Policy Committee Says he would vote for a rates cut if there is no improvement in the uk Economic Data welcome to the show, everyone the most Senior Commander of irans revolutionary guard was called to a closed session of parliament after tehran admitted it mistakenly shot down a Ukraine International Airlines Passenger plane. There were no immediate details asked of the official but iran blamed its air Defense System for the crash, which killed 176 people the announcement has sparked protests across iran and protesters have called for the resignation of iran saying they tried to cover up involvement in the crash. Dan is in abu dhabi. What a difference a couple of days makes the entire population was centering around the killing of Qassem Soleimani now a lot of anger at the government protests picking up similar to scenes we had last year. Absolutely. Very turbulent weekend in iran and in tehran, in particular this is one of the most significant uprisings weve seen in iran in more than a decade. Of course, we saw those protests turning violent at the weekend with domestic anger really mounting now over the accidental downing of this ukrainian passenger jet, which killed all 176 people on board. Many of them iranian across the weekend we saw riot Police Firing tear gas at protesters in the capital. Iranians chanting against the Supreme Leader and the powerful revolutionary guard. Irans leaders initially denied the crash. They waited three days for all of this to come out, insisting this was a routine flight that went down due to mechanical problems after takeoff after mounting evidence and pressure, iran was forced to admit they shot down this 737. Irans president rouhani has accepted responsibility. Weve seen him commenting on this recently. He says he deeply regrets this disastrous mistake but at the same time the iranian leadership has been deflecting blame back towards the United States. What we saw was the iranian leadership, in particular the Iranian Foreign ministry saying the corruptive presence of the u. S. And its cohorts is behind this recent tension. Now, of course, this downing of the ukrainian jet also came at a time of great crisis in iran it was just hours after iran launched dozens of missiles at two air bases housing u. S. Forces in iraq in response to the u. S. Killing of Qassem Soleimani, so clearly the situation on the ground was very volatile there were a number of moving parts, a number of quick decisions that need to be made of course, this ended up resulting in complete disaster particularly for the iranians that were killed and also for the 57 canadians that were on board. Now weve seen the International Community in a desperate search for answers as as a result of this at the same time, u. S. President donald trump taking to twitter to comment on this in both english and in farsi if youve seen his feed this morning, he says the world is watching and, more importantly, the usa is watching. Clearly, some kind of veiled threat there from the United States as well ensuring this is handled in the most appropriate way. At the same time as well weve also seen ukraine coming out just recently demanding that tehran pay compensation for this crash. It, too, now coordinating with canada because of the significant loss of life among canadian citizens we saw on board the aircraft, coordinating with the uk and with sweden, which all had citizens on board this plane clearly, the situation in the middle east still very fluid at the moment, guys obviously the situation in iran but also the situation in iraq and the broader contagion effects weve been seeing in the weeks is bringing this to a head what happens next in this iran u. S. Quagmire really remains to be seen at this point. Dan, thank you so much for your insight and clarifying the situation for us thank you very much, dan murphy in abu dhabi. Saudi arabias Energy Minister says he wants stability in the middle east speaking to hadley during a panel in the kingdom, he added u. S. President donald trump can do whatever he wishes when it comes to International Security. Now hadley joins us live hadley, thank you for joining us i had a listen to your panel earlier this morning interesting to hear the saudis weigh in on President Trump and his actions over the last few weeks. Did the Energy Minister have anything specific to say about the events in iran reporter this isnt the first time ive sat with the royal prince we brought you fikts first on cnbc live following those attacks, that significant damage done to the aramco facilities. A lot of questions at that time about how quickly they would be able to get back to the production levels weve seen prior to those attacks not the first time ive asked his Royal Highness about what all this means for the security of the region, for the security of saudi arabias Oil Infrastructure again, he was really trying to emphasize that when it comes to energy, the markets bind the world together he said, when it comes to President Trumps actions in this region, the president is the president and he can do whatever he wishes listen in to what else he told me this morning. The u. S. Is a partner, a Strategic Partner and have a big role in terms of security, International Security and were leaving it to our friends of the u. S. To conduct themselves in the manner they see fit in attending to a situation like this. With that in mind, whats your outlook for this year where is the industry headed if youre asking me and asking our colleagues here, we would like to have a stable oil market, Sustainable Growth in terms of demand, Sustainable Growth in terms of supply, predictability and making sure that we are focused and attending to the proper challenges of the industry, which is how to produce oil and energy in the most efficient and effective way. How we can manage all of that with proper Balance Sheets and how we ensure that demand will grow without fear that this growth will cause any major negative impacts on the environment. In other words, Sustainable Growth of demand in environmentally safe and sound way. Reporter his Royal Highness reiterating the point weve heard from saudi officials throughout this crisis, if you will, since the start of it back in the summer of 2019, which is essentially the u. S. s Strategic Partner in this region when it comes to the Energy Markets, this is a global issue, not just an issue that affects saudi arabia and the arab countries but everyone has a role to play i thought it was interesting when the Royal Highness, when we were talking about geopolitical volatility, we wanted to bring it back to the u. S. Shale industry and what that means for opec plus. In march theyll be meeting in vienna i asked him specifically, are you planning to extend the cuts . He said thats a decision well make on site he said we could go one way or the other way. We want to send the best signals to the market in terms of that stability so we can invest down the line in terms of infrastructure it signaled to me, at least the fact weve been talking about the potential for more geopolitical shots we saw secretary of state mike pompeo tweeting overnight in response to what seems to be more iranian attacks on iraqi facilities as a result of the death or assassination of Qassem Soleimani. Really trying to signal there that they built in that volatility into their protections, they built in that geopolitical volatility. Whats concerning them is what happens next with regard to the u. S. Shale industry. Interesting to talk to the prince, the first of the year. Tidbits well bring you through the year a lot of big players on the stage. Sheikh mohammed, ben khalifa the oil manager from bahrain. Its interesting in terms of what we saw with oil wti is trading below 60 a barrel many people started talking about 90, 100 when dpthese geopolitical concerns last week. I know that on the panel you had other executives there you had the ceo of total exxon what do they have to say about the direction of travel for oil from here . Were they surprised some of the jump start movements weve had over the beginning of the year so far reporter i think theres a general sense of acceptance that were going to see this geopolitical volatility impacting oil short term, these pops in prices over the weekend i sat with Global Energy forum and spoke to Industry Experts essentially those folks were saying to me, we know we cant sustain another 100 per barrel price hike long term we know thats not something we can take on as an industry its pad for us as suppliers, its bad for the industry as a whole. We hope that what happens in opec and the opec partners in the opec plus agreement will be able to pad it out, if you will, to keep the industry itself from these kind of shocks at the end of the day, one thing they know beyond the fact theyre keengping a very, very close eye on what happens with the shale industry but also supply and demand and the impact over the next 30, 36 months, the potential for recession, what will happen with the u. S. Stock market, how likely that will be to impact their decisions to keep investing theyre, frankly, have to answer to their shareholders. When they talk about what happens over the next year to two years in terms of their outlook, they were keen to point out that part of this will be revolving around the decisions of policy makers that has a lot to do with the u. S. President ial election whether or not well see someone from the democratic side taking the floor, whether Bernie Sanders or Elizabeth Warren. Well bring you comments from the exxonmobil ceo as exactly what the contingency plan is if the United States moves away from fracing they want to focus on the fact theyre being pushed by poli policymakers towards renewables, in terms of Climate Change the problem is being able to strategically plan when you dont know exactly what the u. S. Shale industry is going to look like in the next 16 to 18 months. Hadley, thank you so much definitely look forward to seeing pieces from that conversation later on in street signs. Saudi aramco enhanced its flame, largest ipo in history after exercising its socalled green shoe offering to continue offering as long as they remain above the ipo price. 150 million additional shares were sold increasing the revenue to nearly 29. 4 billion. Lets talk about how markets are faring this morning. Of course, friday all eyes were on that job reports coming out of the u. S the headline numbers slightly disappointing relative to expectations coming in at 145,000 versus 160,000 expectation. That led to somewhat of a pull back in wall street. The s p ended the day about 0. 3 percentage point weaker. The dow about 130 points lower, but not before briefly breaking through 29,000, ending the week on friday, just shy of that number over the weekend and overnight weve seen global markets, specifically asian markets actually move a lot higher this ahead of wednesday, that allimportant signing of the phase one trade deal between china and the u. S. That has boosted asian shares theyre now at a 19month high some optimism has been filtering into european stocks as well the heat map is split between green and red. Stocks europe 600 treading on water around flattish but leaning slightly more green as well certainly a big week ahead when it comes to china u. S. Relations. Of course, that u. S. Data as well let me take you to some of the european markets and take a look at how the individual boards are faring ftse up 30 points, 0. 4 percentage point higher. The big news over the weekend is actually one from a macro standpoint, not a Political Development this time around one of the embassy members has indicated that he would be edging closer towards voting for a rate cut at the end of this month, january 30th, if they dont see any signs of the pick up in data worth bearing in mind, 9 30 today we get uk gdp numbers. We may get a hint on what the bank of england may or may not do its giving a boost to the ftse 100. Dax up 500 points, up 13,500 flattish there industrialing seeing somewhat of a boost as well. Cac up 0. 2 . Some Political Developments. Weve get into that, about the Pension Reforms and the government willing to give con senses to the labor units. Were seeing a bit of an uptick in the cac, up 0. 2 Percentage Points in terms of the sector, at the top we have tech stocks 0. 4 Percentage Points in line with rebound in activity we have in asia equities overnight. Industrials up 0. 3 Percentage Points, chemicals slightly in the green. The downside we have autos lots of news in that space weve been watching closely the developments of the story with aston martin that was up quite a bit on friday and off again today theres been a lot of investor interest in that automaker Nissan Renault back in the news after a report suggesting nissan may be pushing for a full breakup of that company of that alliance. Something worth bearing in mind there. Banks down 0. 2 Percentage Points this week u. S. Banks will start their reporting season were there again. Three months pass so quickly in a couple weeks time we get european banks as well keep an eye on cyclical in the next couple of weeks as we get to the earning seasons thank you for that market overview. Well take a quick break but coming on street signs, plugging the gap looking to offload its factory building upt to fill a multibillion euro hole in its Balance Sheet. Im really into this car, but how do i know if im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to street signs. Thyssenkrupp is looking to sell its building to fill 4 billion hole in its financial group. They are looking to sell or list its elevator unit. Final bids for the division are due in today however, despite the prospect of a breakup, reports out of germany says they may still plan to revive talks. Were joined with neta an activist getting involved there, huge amount of change at the top. What are investors likely to make of the headlines emerged over the weekend with all of this portfolio change . All of that was pretty much expected dpept with talks to merge the companies to create one big steel giant in germany so far the companies have not denied thyssenkrupp saying theyre not commenting on the reports but clearly they are in favor of a consolidation of the european steel sector because thats the only way forward they were trying to get together with tata steel which didnt go through the regulatory site of the European Union earlier on last year. So, of course, one of the biggest issues for thyssenkru. P is to sell the assets because they clearly need the money. They have a huge debt pile at the same time, they are burning cash because they are clearly not profitable enough. The industrial unit was set to be an asset up for sale all the way long were now hearing that even chinese bidders might be interested its quite an interesting turn because clearly the trade unions have a big say, especially in that specific era area of Business Today is the deadline for those final bids for the elevator business thats a crown jewel for thyssenk thyssenkrupp they need the money to plug the holes in their Balance Sheet many, many private equity players are said to be interested, are said to be bidding. And they will come up with a short list of bidders at a Supervisory Board meeting which is due to be held in the next three days at the company. With that, back to you thank you so much for the latest on that all important corporate story. Keeping it in the auto space. Nissan officials have ramped up planning for a possible split with republican naunault accord financial times. They say the carmaker is pulling over changes to its board and considering a division between its engineering and manufacturing units. The peugeot Family Member told financial newspaper that will own a 6. 2 stake in the combined group and can raise this by another 2. 5 according to our partner, sky news, chinese battery gianty atl has approached aton martin about taking a stake lawrence stroll could be interested in injecting 200 Million Pounds in the ailing luxury automaker known for making james bonds favorite models aston martin jumped on friday after geely has had talks with Aston Management its really interesting this story about the interest in aston martin, in particular from the chinese. Weve seen geely get involved in numerous european automakers with their investment and stake in daimler. Volvo. Volvo clearly, this player is becoming a lot more involved in the European Space yeah. And actually, remember we were discussing this on urs thursday, friday, towards the end of last week if you look at the performance of aston martin, its down 75 from its ipos. Anyone who bought that has not had a very easy ride at all. And the news flow from here is centered around which investor will end up taking a stake there. At the end of the day, they seem to have a lot of operational difficulties and that is going to be the big question going forward. One thing forward, i think the Nissan Renault story is interesting in light of the colorful press conference we had out of carlos ghosn but it looks like that empire is close to coming apart. Its interesting listening to carlos ghosn and how much pride he has working at those two companies. If they do break apart, what happens then do they need to look for new partners something well be discussing for sure. Well be back with uks gdp reading. Need it. With esri location technology, you can see what others cant. Welcome back to street signs. Im Julianna Tatelbaum im Joumanna Bercetche. These are your headlines antigovernment protests spread across iran demanding leaders step down after tehran admits it mistakenly shot down a Ukraine International Airline Flight killing all 176 people on board. Saudis Energy Minister calls the u. S. A Strategic Partner with a big role in International Security declines to comment directly about events in iran on a cnbc moderated panel in the kingdom. President of the United States is the president of the United States. He can do whatever he wish and hes not certainly accountable to me or anybody. Renault fairs fall to the bottom of the stock 600 as reports that nissan is gearing up for a potential divorce. Pricing in a policy shift. The pound falls 1. 30 against the dollar after a member of the boes policy Committee Says he would vote for a rate cut if theres no improvement in the uks Economic Data speaking of the data on the uk, we are getting gdp numbers versus the october number of 2 . This is much higher than the expectations of a negative 0. 1 . Weakest month since july, but better than expectations it does point to a slowing economy in the last quarter of the year last year we had october at plus 0. 2 definitely a slowing momentum. Actually, i guess there wasnt that much of a boris boost that some people were looking for, perhaps. Maybe those numbers will come through towards the beginning of this year. Now that the general election is out of the way i think its important putting those in context of the allimportant comments over the weekend, the third member of the bank of england to actually start moving and calling for the direction of a rate cut from here we have two members, existing members, jonathan he is. Kell and jonathan calling for a rate cut at the last board meeting. Looks like vlieghe is moving in that direction it looks as though, julianna, we may be in for a rate cut out of the bank of england, particularly at the last meeting on january 30th. Particularly looking at a rate cut i think its important to look at the market reaction, how strongly the markets have reacted to this. You see the pound trading below 1. 30 one question that comes to my mind is if this is intentional, this kind of commentary, this dovish commentary from these members to get markets to move, to perhaps change Market Expectations and if they do change Market Expectations to such a strong degree, do they even need to move forward with a rate cut or will the market do its work for them. I think whats interesting about all of this is they seem to be just a couple months behind every other central bank in the world theyre getting to the point now where only in january theyre thinking about cutting rates when the fed seemed to have done their cuts for now ecb came out with that big package in september and they resisted, resisted, resisted they said, well keep an eye on the data see how things evolve. We have brexit uncertainty, external uncertainties when the external uncertainties are getting removed, we have the phase one signing of the deal this wednesday, all of a sudden the bank of england is saying, now its time for us to cut Interest Rates it seems they drag their feet on this one they could have cut Interest Rates a little sooner rather than wait and see. Potentially see, obviously, how the political situation evolved as well. One thing the bank of england has always said, too, is any brexit deal and moving towards a transition, which should happen after january 31st, could unleash a big amount of investment back into the country again. We dont know if thats going to happen. Thats a really key point i think, yes, we got some fresh data now, but its back were looking at q4 numbers. The key for markets, the key for bank of england is going to be forwardlooking metrics. We have conference data due to come through for the missouri of january. I think this is going to be the real next catalyst for markets and, in turn, the boe. Certainly vliegh saying theyre watching the information closely. It will be an interesting january 30th meeting not only because its kearneys last one but we may be in for cuts. Exciting we look forward to that. In the meantime, lets look at how markets are faring today. The euro trading slightly lower versus the dollar, around the 1. 11 mark. The pound, perhaps the most interesting on that board there, trading down 0. 6 of a percent below the 1. 30 mark. Markets really reacting, continuing to react to those dovish comments not only from the governor mark kearney but a couple of other members over the weekend. Lets shift gears to equity markets. We are looking at some green on the boards there for german, uk and french markets as you would expect, the ftse 100 is outperforming, up 0. 4 , coming alongside the step lower in the pound, given the inversion correlation between the currency and equity markets. This week, of course, in focus for Global Investors is that u. S. china trade deal with chinese hu set to go to washington to sign that deal. U. S. Futures, were in for a positive start to trading this week all three major indices looking to start in the positive territory. On friday we did see a modest pullback in the indices after weaker than expected numbers on the jobs front. Lets talk more about that trade deal the u. S. And china have agreed to restart semiannual talks that were previously abandoned when the u. S. china trade conflict escalated at the start of President Trumps administration the talks which originated under george w. Bush are a form for strategic economic dialogue between the two major powers the sessions will likely be led by the u. S. Treasury secretary Steve Mnuchin and chinese vice premiere liu hu. Calling it a technical issue very big data point as julianna was pointing out, the signing of the phase one deal lets bring the head of Asset Allocation at ayon your thoughts on this upcoming signing and obviously its been a Long Time Coming markets have been sitting on edge waiting for this moment now that it happens, does is that put the whole story to sleep . Well, it doesnt. I think it is a kind of truce. I think thats fairly i think thats about right the good news, of course, is escalation has clearly been avoided, which cant be bad news given the state of the global economy. But i think of we should be realistic about expecting it to be a truce across multiple fronts as we know, this is not just a trade conflict, the issues and the tensions between the u. S. And china go a lot deeper than just the trade side. That is emblematic of a wider conflict on the wider issues that go beyond the simple matter of tariffs, i think the progress at this point is likely to be very limited. Can we take it back to markets, though, and what type of performance youre expecting to see in u. S. Equity markets. Last year was dominated by the discussion of the trade war. We saw vast multiple expansion we saw returns north of 25 , 30 , 40 for some tech stocks. This year, can we, one, see a similar type of multiple expansion . Two, are we going to see Earnings Growth . Look at it this way as Interest Rates have come down quite a bit last year, somehow the markets see that multiple expansion as warranted the problem is you can only do that once. The issue from this Vantage Point is that multiple expansion is, i think, going to be challenging simply because it will have to be built around an expectation that earnings will rebound strongly and there are really multiple obstacles to getting a sizeable as we know, 2019 will likely have seen earnings dip slightly. So, yes, some rebound is possible but i think that its really getting quite difficult to argue the case for another blockbuster year like last year. I think modest returns, but nothing of the order of what we saw last year. So on that point about Earnings Growth, s p 500 companies, according to the latest estimates are expected to have had another poor quarter this year. Analysts are calling for e quarter decline. Is there an opportunity to play europe versus u. S. , given europe hasnt seen the same multiple expansions, high valuations the u. S. Is . It would be an attractive proposition to say you should think about rotating money away from the u. S in some ways the argument is credible on a multiyear horizon, if you were prepare to take a three to fiveyear view it makes sense to, perhaps, think of rotation. Given the ricks we see out there and the defensive nature of the u. S. Market relative to europe in what is still a very tricky market environment, i think you have to be cautious about doing too much of that. Where is the best place to put your money in 2020 its a really challenge we see bonds and equities both very, very similarly challenged. Markets are very, very low equity valuations are very high. And there is this other problem theyre living in what you might call parallel universe bonds are discounting a world which doesnt really get that much better from where we are and equities are banking on an improvement. We have risks on both fronts investors are driven to the safety of cash, which carries risks, or into liquid and complex asset classes. It is a real challenge for investors to find sustainable sources of return. A risk parity portfolio would have done well with 60 m equities, 40 bonds. You may see a repeat of that we may be in an environment where fixed income stay supportive. You could argue fixed income could stay supported its much harder to make the call for another lurch down in bond deals if theres a big policy shift out there, which many Central Banks are talking about, that carries risks for bonds, too i think it will difficult for risk parity to continue what they had going for them last year. Thank you for weighing. French Prime Minister Edward Phillip has agreed to raise the retirement age from 64 to 62 his offer marks the governments first major concession following more than a month of labor protests over planned Pension Reforms. The leader of the countrys largest trade union, the cfdt, welcomed the news saying it showed the governments willingness to compromise. However, other groups have dismissed the news now, charlotte reed, our france reporter, joins us with more charlotte, i mean, con t contexe this for us. The devil is in the details on paper it looks like a climb down from the government, taking away the key element of raising the pension age from 62 to 64, which very much was a red line for the cftu union, Largest Union in france, and they are in reform of Pension System but raising the pension age was a red line here. Its been taking out of the project that will be presented to the cabinet next week union saying this is a victory for them if you look in the details, it means the government will take it out for a moment. They will do a financing conference for the next three months, end of january to end of april, inviting a lot of social partners, unions, et cetera. They will ask them to come up with a better solution to keep the Pension System balanced. For the moment they project 12 billion euro deficit by 2027 they say, well come up with a better solution by the end of april and put that in phase. If not, then they say the government will do whatever they need to do to keep the Pension System balanced, including potentially putting through an executive order. So, its all in the details here putting pressure on the unions and other unions that are completely against this pension reform that want to withdrawal are pushing for mow protests cfdt under pressure to come up with a better solution. Theres no magic solution at end of the day they have over 50 different competing systems, different Pension Systems. One option is to raise the retirement age i was reading over the weekend that Railway Workers have retirement age of 50 years old, which is very low compared to the cfdt average if you want to plug that gap, there has to be a tradeoff somewhere. It has to be higher labor costs or higher contributions and none of those things will appease the demonstrators on the street. Youre right. Theres an element here those special regime the universal system was part of president macrons program in the election many president s and governor have tried to implement this and failed now reforming the special regime is more of of a symbolic move. From a financial move that wont make a big difference in the coming pension deficit as baby boomers retire more and more thats why putting these raising the pension age here as part of the global reform then has put other players making them a bit unnerving for these players, saying its a much deeper pension reform that were that theyre trying to push through the special regime is an excuse. Actually, theres i much deeper change coming through. Macrons government, the Prime Minister who is leading the charge on this, is saying, we need to balance the system this is our responsibility today because in 2027 well have this massive deficit. So, its all here, a conversation they want to open this new move by the pm very much wants to show the government that they are ready for compromise this is not a concession this is a compromise they want to look that theyre open to dialogue and not being stubborn ones. Other unions pushing through with the strike this is week. Lets see if the strikes continue theyve been going on for asix weeks. Thank you for bringing us the latest from paris. Coming up on street signs, tsai with a landslide victory. How did beijing react. Janine Ghostbusters . Of course id love to take an informal poll. I used to be a little cranky. Dealing with our finances really haunted me. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great hey you got the burnt marshmallow out delivery man he slimed me. janine tissue . vo get set up right with a live bookkeeper with intuit quickbooks. The easy way to a happier business. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to street signs. The taiwan dollar has strengthened to an 18month high against the greenback after president tsai ingwen won a landslide victory in the weekends victory. It sai with a second term with 57 of the vote, a result seen as a rebuke to beijing. Reporter taiwan president tsai ingwen secured a second turn in a historical turnout in a landslide victory with 8. 17 million votes or 57 of the ballot that is 2. 6 million more votes than hon kuoyu. She warned china of using threats against the island taiwan markets trading at multiyear highs. The former president of the Taiwan Stock Exchange expects the market to continue to hit new records this year. The Business Community is also bullish. The head of the Silks Hotel Group expects taiwan will continue to outperform other asian tiger economies by one percentage point reporting from the president ial palace in taipei, emily tan. The staterun xinau saying we want to directly warn tsai ingwen for the dpp not to react irrationally because of a temporary fluke. At a cnbc panel led by hadley gamble in saudi arabia, exxonmobil ceo warned u. S. Policy could threaten the oil industry hadley joins us again from saudi. You told us about this interview a little earlier on the show, but give us detail now what did you thatter on this panel . Reporter i couldnt help but tease you a little bit about what we heard from exxonmobil ceo, because front and center, any conversation you have with industry leaders, and oil ministers, when we talk about volatility, geopolitics, you cant forget were in the middle of an election cycle in the United States. President trump, very good for Energy Markets very good for the industry and very good, frankly, for this part of the world. Thats what we heard from his Royal Highness in terms of the impact of Strategic Decisions over the last several days but i asked the exxonmobil ceo something that i think that a lot of people not just in the United States but more globally are wondering and that is about the democratic field i asked him, is an Elizabeth Warren presidency dangerous for the industry you remember, back in september of 2019, she said, quote, she wants to put a total moratorium on all new fossil feel leases for drilling, as far as ban fracing everywhere that has caused a of uproar among Industry Experts and folks on both sides of the aisle listen to what exxonmobil ceo told me this morning. I tend to think that most policies and actions taken, whether youre republican or democrat, will have to try to strike the right balance they may move one direction or the other but i think large step changes that bring huge disck discontinuities to our industry will have impacts on our societies and people in those societies and, therefore, i think that will be a natural hedge or mitigating factor for big and significant changes. Reporter now, if you didnt miss that, i hope, that was a bit of a veiled warning about the strategic and longterm impacts this could have not just on the industry but the Global Energy market. Frankly, on what happens to those jobs that have been as a result, frankly, of this boom in the u. S. Oil industry. Fracing especially what that could potentially mean for the u. S. Economy, especially at a time when you have the stock market at alltime highs interestingly enough, i asked his Royal Highness, you dont have a crystal ball. Talk me through what you see in terms the outlook for 2020, will we see these price hikes, shocking the industry and making it more difficult for iocs to invest long term he said to me, i dont like these kind of aberrations, no one does its something we priced in. At the same point, Lower Oil Prices do higher the seeds what we do at opec is trying to achieve is the stability for the markets. He did enjoy, i think, pushing back on me as well as other media organizations that are present in terms of using that word cartel. I said, is it dangerous when the president uses the word cartel is it accurate he said, this is something i think that comes from the media itself at the end of the day, i think everyone understands the importance of opec and this opec plus agreement in trying to stabilize a market that otherwise would be all over the place. Thank you for the coverage this more than on all things geopolitics and the transition after the panel that hadley held. House Speaker Nancy Pelosi is set to decide whether to send formal impeachment charges against President Trump to the senate this week the ranking democrat had said that republicans will pay a political price for blocking. Witness testimony. She also called for a fair trial in the senate. Tracie potts joins us live from washington, d. C. It appears as though the prospect of adding further witnesses to the stand is dimming. But do we have any clarity on whether or not those articles will actually be sent to the senate this week for the trial reporter joumanna, theres a vote happening tomorrow to determine who would argue the case and when these articles would be sent. Pelosi has said it is her intention to get that done this week the holdup has been pelosi holding the articles, meaning the senate could not even schedule a trial, trying to pressure them into hearing witnesses which the Republican Leadership does not want to do one of those key witnesses could be former National Security adviser john bolton, who has said that he would testify and was reportedly skeptical about the plan to freeze aid to ukraine while pressuring ukraine to investigate the president s political rival. So, what were expecting this week is a vote tomorrow by the house to move those articles forward so they can set a trial date, but whether they will hear witnesses, like bolton or others, that is still up in the air. It was the strategy of nancy pelosi to try to force them into doing so while she says it was successful, she believes because they brought attention to the witnesses, we still dont know if it will happen, joumanna. All right, thank you for breaking it down for us. Of course, it is going to be a very big week coming up, visavis the impeachment inquiry and the articles sent to the senate. I want to highlight you a line from danska bank. A report they offered 2,000 danish employees voluntarily redundancy dansda bank has been embroiled in a number of controversies under investigation for alleged Money Laundering there were reports earlier of them cutting up to 108 jobs in finland. That was just last week. So, potentially we could see danska bank come out with an official statement around this report they offered 2,000 danish employees voluntary redundancy u. S. Futures set to open, 11 points higher on the s p takes the dow to 11,000, the key level we broke through on friday we pulled back a little after those slightly disappointing nonfarm payroll numbers. Im Joumanna Bercetche im Julianna Tatelbaum. Worldwide exchange coming up next some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. It is 5 00 a. M. At cnbc global headquarters. Here is your five at 5 dow 29,000 and beyond. Stocks looking to rebound after fridays lackluster session. Earnings will take center stage. Also in the spotlight, trade. The chinese delegation heads to washington, d. C. , for the phase one trade deal signing that happens this week a big day for boeing as new ceo takes the reins not after dennis