Than 120 countries. From washington im alisa , parenti. This is bloomberg. Bloomberg technology is next. Emily im emily chang. This is Bloomberg Technology. It is decision time on climate change. Will the u. S. Backed out of the landmark paris accord back out of the landmark paris accord . War hits home with apple set to roll out smart speakers. Cupertino is rolling playing catchup. Cyborgs arrive at Morgan Stanley to back up its 16,000 Financial Advisors, but are they an upgrade over the roboadvisors . We will discuss. The Paris Climate Accord could be in trouble. It was just teed of years ago nearly 200 nations, including the u. S. Just two years ago nearly 200 nations, including the United States, agreed to reduce fossil fuel emissions. President obama this is the moment we finally determined we would save our planet. The fact that our nation shares a sense of urgency about this growinge and a realization that it is within our power to do something about it. Emily now, President Trump is considering whether to keep the u. S. In the landmark paris accord, but could be leaning towards the next it towards an exit. Will be he tweeted, i announcing my decision on the paris accords in a couple of days. Make America Great again. Musk stated he will depart the president s council if the u. S. Pulls out of the climate deal. Joining us now, bloombergs chris martin, who covers renewable energy, and amy grace. Amy, i will start with you. What are the real implications if the u. S. Pulls out . Amy the paris accord will go on with or without the u. S. In it. I think some of the implications for the u. S. Are actually not that much. Targets, ifssions you think about the u. S. Emissions in terms of bringing it down into the power sector emissions, is about 40 of emissions. Transport emissions are another 40 . Than the rest of the economy makes up 20 . The power sector emissions will meet the paris target without the Paris Agreement without the clean power plan, which is the legislation to get the u. S. There. On the transport side, its a slightly different story. Pulling out of the Paris Agreement wont do anything to the transport targets, but on the table now our changes to the now are changes to the fuel emissions standards. A relaxation of those standards means the u. S. Could mean that u. S. Misses the transport portion of those targets, which ultimately means the u. S. Would miss their paris targets. Emily if the u. S. Pulls out, how likely is it that other countries follow suit . Chris so far, it looks unlikely. We are most concerned about india and china at this point, and they both pledged their allegiance to the paris accord. We havent seen anyone pull out of the accord. To this point, the u. S. Has not either. Its not clear yet whether anyone will. Emily why would, hypothetically, the u. S. Want to pull out and be in the same boat as other nations that are not participating, including syria and nicaragua . Chris for the trump administration, its a promise he made during his campaign to increase demand for coal. I dont think thats going to come out of this. In fact, are reporting today showed that shares of Coal Companies actually went down on the news today. Its not clear who would benefit. Amy there is a long list of yuan convention the u. S. Has not signed, including u. N. Conventions that the u. S. Has. Ot signed this would not be the first. Emily what do you think of elon musks tweet that he will drop off of trumps Advisory Council if this happens . This is a man who founded a major electric vehicle company, solarcity in the mix as well. Chris it sends a signal of frustration with the administration that there is a need to be part of this Global Climate pact. If you pull out, then its a signal that we are not serious about climate change, and that would be unfortunate. Emily amy, what would it mean for the fight against climate change, realistically . Some have said that this could be catastrophic, but is that a gross exaggeration . Will take thet wind out of the sails of the paris accord. The paris accord will go on, but it essentially reduces the incentive to continue ratcheting up. It probably delays it by about five years. The broader implications are the fund. Ons of the climate raise 100tended to billion a year to give to developing countries. They dont know where that money is going to come from. They have raised about 10 billion, 3 billion from the u. S. Whether or not they drop out of the paris accord is probably unlikely paris accord, it is probably unlikely that the 2 billion will be forthcoming from this administration. Emily if this happens, chris, what do we know about how the u. S. Would actually unwind its support . Would this be a gradual thing . Would it be abrupt . Chris it would take a few years for them to actually unwind this. You would see a gradual progression. That could change with the next administration, too. This is an executive order rather than an approved treaty. It wouldnt take much for the next president to get back in. Amy it essentially takes the for them tof 2020 pull out, but the impact is immediate. Emily is it simple or compensated . Complicated . Chris its complicated. I dont think we will see any answer over the next few days, even if trump decides to pull out. The reaction is going to be muted because people need to figure out how long its going to take for changes to be made. I think its going to take years. Emily amy, what does it mean for shifts in alliances . Obviously, if china and india remain, how does this affect our relationship with other countries . Amy i dont think he will have a big impact on our relationships with other countries i dont think it will have a big impact on our relationships with other countries. The reality is the u. S. Is a pretty big part of all international negotiations, so they are going to have a seat at the table regardless of what they decide in the paris accord. Caroline amy grace of Bloomberg New energy finance, chris martin, our Bloomberg News reporter. We will continue to follow this and await President Trumps decision. Hewlettpackard enterprises released its Second Quarter results after the bell. The Company Reported sales in the period totaling 9. 9 billion, but that includes the Enterprise Services business, which has been discontinued. The company gave a profit forecast that fell short of estimates for the Current Quarter as the Company Struggles to shift to the competitive field of cloudbased services. A story we are watching, the massive legal spat between toshiba and Western Digital over the sale of a memory chip business is getting even more compensated. Toshiba sent a letter to Western Digital saying it is moving assets from the joint venture back to the Parent Company after previously transferring them to a subsidiary in preparation for the sale. It became clear the operations may fall into the hands of competitors. Coming up, after the firing. We are taking a look at alphabets waymo and where it stands in the crowded driverless car race. A reminder about our new interactive tv function. On thet at tv bloomberg. You can watch us live. You can send our producers a message. You can ask me a question. You can play along with the charts we show you on air. This is for bloomberg subscribers only. This is bloomberg. Emily former Hedge Fund Manager phil falcone was barred by the sec in 2012. Now he is back and putting his money to work. He sits down with bloombergs and loop betty liu discusses how private equity stacks up against the hedge fund world. Phil when looking at some of the different investments ive had over the years, the most success ive had is buying things that have taken a long ore and you can incubate help nurture and grow and fix and twist and turn. That is tough to do in the hedge fund model. You can do it in a private equity model, but its still a little bit different. I think this structure gives us the flexibility that we need and really gives us the opportunity to hopefully never have to sell any of these companies that we control. Emily to the firing of Anthony Levin dow ski anthony levondowski from uber. How will this case impact the future of alphabet and ubers self driving car efforts . Will it spark a talent war for other star engineers . We are joined by brad stone, an author of a book about the founding of uber and airbnb. Is this a turning point . Brad the lawsuit shows they are willing to leverage or exploit their intellectual property. Google was first in the driverless car arena. Thatgoogles emergence, was the turning point for waymo. Get moved waymo to an operational it moved waymo from academic to operational. They know they have to be not just for the data, but for their own engineers, who want to see cars on the road. They have to be out there. Google spun off waymo as its own independent division and put the former ceo of hyundai in charge of it. The Competitive Pressure was the turning point. Emily if they somehow managed to cripple or stalled google ubers self driving efforts, is there a benefit to waymo . Said Mark Andreessen almost comically that there were too many players out there. Hurting uber a little bit hurts a primary rival, but it does not change the fundamental dynamics, which is that waymo has a head start. As his many years from happening. We will see how it plays out. This is many years from happening. We will see how it plays out. Emily who gets the best engineers may in fact determined who ends up on top. Brad if anything, this is hurting the big players. There are folks who used to run the self driving car division at google striking out on their own. Levandowki showed there was ireat profit levandosk showed that there was great profit in leaving and starting out on his own. They are losing people. They said they had shrunk the costa of cost of the key mapping component in Driverless Cars by 90 . They keep moving the Technology Board forward. Emily what about partnerships . Is waymo seeing any momentum . Brad they have the Fiat Chrysler partnership. Beyond that, there was a rumored deal with honda. It has not come to fruition yet. There was the deal the announced with lyft. Mark fields, who left a top job leftur ford this week, in part because he wasnt able to come to terms with google on a driverless car deal. Its quite unusual for any of these Tech Companies to do broad deals with other companies. They have partnerships with advertisers, but in terms of sharing the data and the prophets, it gets really messy and the profit, it gets really messy. This,t sure waymo, before has shown much progress. Emily Morgan Stanley came out with a report that said, if spun off, the waymo business could be a 70 billion business. Is there any indication alphabet would do that . Brad they said by 2030. Where will you and i be . Thats a long way away. Phil pratt from toyota said, we are nowhere near level five autonomy in Driverless Cars. We dont really know how this is going to roll out. I think that projection from Morgan Stanley was optimistic, assumed a lot of things. Day . Waymo be valuable one it will if they can deploy Driverless Cars safely on the road. The key word is safely. Emily thanks so much for joining us. Another earnings update. Box reports its first Quarter Results after the bell today, coming in above expectations. It is up 30 yearoveryear. Box touted that it has now become Free Cash Flow positive, a signal that the company may be en route to being a profitable rival like dropbox. We will discuss the Earnings Results with box Ceo Aaron Levie here on Bloomberg Television tomorrow. Coming up, apple is gearing up to take on amazon apple echo and google home. We will bring you all the details next. This is bloomberg. Labs has ended and 11month product drought an 11month product drought. Its the first redesigned camera since they this newest camera has some tech upgrades. It shoots higher resolution video that allows users to more deeply zoom into footage without losing as much clarity as the current footage version. The camera lens will automatically fan pan to follow a person as they walk around the room. Apple is said to be on the verge of introducing a siricontrolled smart speaker. The device would rival amazon echo and google home. Its just another drumbeat as apple prepares for its Worldwide Developers conference next week. Joining me, alex webb. What do we know . Alex we know this is in production. A Taiwanese Company has started making these things. Theres a good chance it will be unveiled next week, ready to be introduced to the market, to actually be put on sale later in the year. Given that amazon has just introduced their latest alexa with a screen, the alexa show, we are hearing the apple product will not have a screen. It is solely a speaker. Emily there are some interesting details you guys have found in terms of what might set this apart when it comes to the sound and its ability to understand whats going on in a room. Tell me about that. Alex thats the differentiator it seems apple is hoping to make. Amazon and google have these wellestablished products. Apple clearly seems to think that having a better quality speaker will give them an edge. There are things like surroundsound, which is beamed out from the device, and an ability to follow the shape of a room and therefore adjust the acoustic performance accordingly. Emily the surroundsound might be louder and chris crisper. It might also determine how loud the speaker needs to be, essentially. Alex it can adapt to the acoustics. This hints towards an effort from apple to make it a premium product. If you look at the pricing of the amazon alexa, they do not make much profit on that. They do it as a loss leader to get people buying amazon products or products through amazon. Com. That is not the apical the apple business model. They are trying to do more in services and software. The pricing will be interesting to see. Caroline this will connect emily this will connect with other apple devices and potentially progress apples strategy within the home in general, right . Kit, apple has home which is the way you control Smart Devices like your lighting, blinds. If i wanted to control the lighting at my home remotely, i have to have a hub in my home. I cant do it from here. That could be an apple tv or ipad. Its likely to be this speaker. The other side, if you have an amazon alexa or a google home, you are listening to either spotify, amazon prime music, or google play. These kinds of Product Services are ones apple is really pushing, trying to build a more dependable revenue stream. That helps preserve that. Emily apple was not the first to market with a tablet. It wasnt the first to market with a smart phone. Steve jobs made a point of that. Historically, apple had often been the best to market with some of these products. Are we expecting this to be an example of that . Alex its very hard to judge at this stage. Its particularly important to see what the pricing is going to be. It could be 100 more expensive. We dont know. Expensive, 100 more they are probably not making a 40 margin on the product. They are expected to make more money down the line with their services. If it is more expensive, then they have to be doing something to convince whoever it might be to buy their product and not the significant we cheaper ones from google or amazon. The google one is 129. Theres a big difference. Emily the connected home sounds great. It still really hasnt hit the mainstream. Its still pretty hard to connect your home. Whats it going to take for that to be an easier process . Alex if you look at a lot of the products that are out there, people are seeing this as an opportunity to get big profit margins. Costs light from phillips Something Like 25. 49 for the one which is many different colors. The classic led light is significantly cheaper than that. They are sensing a big opportunity to make big margins. Until it becomes as affordable as any other kind of light they could apply to any number of categories. That is what needs to be crossed in order to make Widespread Adoption a reality. Emily we will see if this is unveiled at wwdc next week. Alex webb, thanks so much for that update. Annualup, mary meekers internet Trends Report has dropped. We will dive into what has become the state of the union for the tech industry. If you like Bloomberg News, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On serious xsirius xm. This is bloomberg. Alisa im alisa parenti, and you are watching Bloomberg Technology. Cnn reports former fbi director james comey plans to testify publicly in the senate as early as next week. Cnn also reports that comey has spoken privately with special Counsel Robert Mueller to work out the parameters for his testimony to ensure there are no legal entanglements because of his testimony. President trump fired comey this month as the fbi was investigating russian influence