Transcripts For CNBC Street Signs 20170602 : vimarsana.com

CNBC Street Signs June 2, 2017

Paris. Oil prices are also under pressure with brent crude falling below 50 a barrel amid concerns that President Trumps decision to exit the Paris Climate Accord could spur an increase in drilling. The Global Market rally moves on with the nikkei closing above the 20,000 mark for the First Time Since 2015. And european auto stocks driving higher on hopes that trumps withdrawal from the paris accord will ease the Regulatory Burden on carmakers. Good morning. Its friday. Glad youre with us once again. Lets continue with our top story. Germany, france and italy hit back at donald trump saying the paris climate agreement is not up for renegotiation. Their joint message follows the news that President Trump will withdraw the United States from the 2015 climate accord. Speaking in the white house rose garden trump says the u. S. Will begin negotiations to reenter the agreement with you warned he would only accept a deal fair to americans. The Business World hit out at the move. Goldman sachss Ceo Lloyd Blankfein used his first ever tweet to slam the decision. Elon musk also confirmed he would depart the president ial council saying leaving the paris accord is not good for america or the world. In st. Petersburg, geoff spoke to the ceo of Schneider Electric and asked what he thought of trumps decision. I dont think it will change the momentum in terms of sustainability. When you meet cities, companies today, states where a lot of those decision s have been made people are committed to reducing Carbon Emissions. Its a question of business. If youre a city, you want to be attractive on the global scale, you have to be green city. There is no other option. If youre a company, if you can run your process, manufacture your product with a Carbon Footprint which is onethird of your competitor, then you will win. Its a question of good economic sense. Geoff also put the question to mark sutton, the ceo of international paper. Nothing changes for us. We made commitments publicly, were working on those commitments, not only on Greenhouse Gases, but water and other environmental implications. For us its business as usual. We think its the right thing to do to reduce our environmental footprint. Lets have a look at oil prices. As you heard in the headlines, brent crude dropping below 50. Currently changing hands at 49. 67. Down 2 on the day. Thats a move mirrored by wti crude down to 47. 41. Lets look at what the oil makers across europe are doing. Most are in the red. Shell off by a third of a percent. Repsol in spain outperforming. Lets talk more about what this means for the commodity space with colin hamilton, head of Commodities Research at mccory. The fears about new drilling coming online and increasing the glut in the market, are those fears justified . No those fears are very justified. Were looking at a u. S. Oil exit that may exit 1. 5 Million Barrels higher than last year. Wells have been drilled that are basically ready to go. If the Regulatory Environment eases, these companies can hedge out. Banks are forcing them to, theres a good degree of confidence you will get that oil response in the u. S. How difficult or easy is it to start new drilling . With some of these projects it can take years or months, but you say many of these projects are ready to be worked on . Yes, u. S. Onshore is kind of like a top. You can get into it quite easy. Wells have been drilled already. Theyre sitting ready to go. Theyre like flex inventory, its quick for companies to bring those to market in short order. We expect that through the course of the year. Whats onshore what about offshore . Offshore is harder. Theres more planning and Geo Technology needed. That will take longer. Will we see more drilling in the arctic, even though its extremely cost intensive . I would say at Current Oil Prices it doesnt justify it. You can push back some of those marginal frontier projects. What price do you need . 60 or above certainly. Lets talk about other commodities. Do you think this will have a knockon effect for the likes of coal . Yesterday in the u. S. We saw coal stocks jumping on the back of this. Is this a reaction that has legs, that is sustainable . Its interesting, because the u. S. Were Getting Energy supply response from oil, from gas, and coal. Still coal is the marginal ton. Were seeing continuedgoal to gas switching. Youre seeing switching to gas away fromgoal. International markets do not need coal. European coal imports are likely to fall by half over the next 18 months as we have a lot of lng coming in. It will only price somewhere with the carbon tax that has to be europe. Is President Trump diluted in thinking he could kick start, we start the cole industry in the u. S. . At some point he has to deliver results, and in the form of jobs. Hes promising thousands of new jobs for the cole industry. Thats not going to happen . Coal, is a hard one to get reinvigorated. He may have more success in downstream industries. Steel companies are doing better. Potential for aluminum plants to come back online. The coal industry, we dont need u. S. Coal. Its higher cost, and with gas prices where they are, its just not viability. This morning were seeing on the renewables charts the reaction being negative is that a knee jerk reaction . Do you think theres a delay to some regulation that were seeing . The regulation is hard to call. Here r theoretically you cant pull out within two years, but if we look at where Renewable Energy is being led, its not in the u. S. , its in china and europe. Its a blow to system of these sectors, but the ongoing trend towards more Renewable Energy has lots of momentum. This creates some issues around it. But i dont think it derails that story. The question weve been asking all morning is who fills the gap when it comes to climate leadership . Is it china, india or the eu . The eu will always have a core position. China over the past three years has been viewed as a dotty economy, if you look at the Energy Efficiency measures theyre putting through, you could argue theyre certainly taking some leadership globally in this area. Colin, thank you very much for this first chat. You will stick around for longer. Colin hamilton from mccory. The effect the of Climate Change are being felt in cities and states around the u. S. With many leaders vowing to fight back against the president s decision. Anne thompson has the details. Reporter climate Scientists Say the warning signs are everywhere. From montanas shrinking glaciers, to australias bleaching Great Barrier reef. A trend that could worsen now that the u. S. , the second largest carbon emitter in the world, plans to pull out of the Paris Agreement. That means record heat, more drought in some places. Torrential rains and floods in other places. Sea level rising, drowning coastal areas. The world will be a mess. Reporter the department of defense labels Climate Change a threat multiplier, leading to food and water shortages, fueling international conflicts. Today the president focused on the economy. Claiming the paris accord would cost the u. S. 3 trillion in lost Economic Activity and 6. 5 million in industrial jobs. The president cited a particular study today, thats been widely debunked, because it makes all sorts of incorrect assumptions about americas role in the Paris Agreement. Reporter under the Paris Agreement, the u. S. Pledged to reduce Greenhouse Gas emissions 26 by 2025. In 2015 it was almost halfway to that goal. Helped bring Power Companies choosing cheaper, cleaner natural gas and renewables instead of polluting coal. The coal industry hopes the president s actions will ignite a renaissance. This week alone, two coal fired power plants in new jersey and one in massachusetts closed. Many cities and states vow to fight Climate Change. California launching its own Global Coalition with canada and mexico. Los angeles is reducing its Carbon Footprint with the biggest electric vehicle fleet in the country. Weve made a commitment to get off of coal by 2025. Reporter and virginia is establishing its own Carbon Emissions standards for power plants. Many parts of america opting for cleaner energy sources, with or without the president. Anne thompson, nbc news, new york. I want to take you straight to the eu China Business summit underway in brussels. You can see premiere li speaking there. Jeanclaude juncker says there is no back sliding on the paris climate agreement. China and the European Union have agreed on International Solutions for clean energy and Climate Change. China and the European Union are aligned for International Solutions. Nowhere is that more important than leading the Global Clean Energy transition and the implementation. Very strong words coming out of the eu China Business summit. Major disappointment over the fact that the u. S. Under President Trump has pulled out of the paris accord. Email the show, streetsignseurope cnbc you can find us on twitter, streetsignseurope cnbc and you can tweet me at carolincnbc. Bill gates proposal for a robot tax has divided the tech community. We will hear arguments for and against regulating artificial intelligence. The future isnt silver suits and houses on mars, its right now. Think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Good morning. Welcome back to the show. Its friday, not just any friday but jobs friday. In a few hours well get the may jobs report. We expect a print of 184,000, the jobless rate is expected to be stuck at 4. 4 . Lets look at how european markets are trading. Were quite positive out of the gates. Were up by 0. 5 . I do want to show you the markets one by one. There you go the ftse 100, yet another record high, up by 0. 3 . Oil and gas is underperforming. Well come to that in a second. The xetra dax is flying high. I believe this must be another record high for that index, up by 0. 9 . Cac 40 showing gains of 0. 2 . Now we will talk about the oil price. Its under pressure as the u. S. Under President Trump has pulled out of the paris accord and theres concern that that means more drilling. That means the supply glut would become even worse. Brent crude back below 50. 49. 62. Off by 2 . Wti crude at 47. 36, off by a bit more than 2 . That drop is reflected in the sectors this morning. Oil and gas is one of the worst performing sectors here. There you go. Some oil stocks are very much under pressure. Down by 0. . Then you have alternative energy, which is also falling. There you go omv in austria off by a half of a percent. Denmark off by 0. 2 . The future of media and advertising was a hot topic at the code conference on thursday. Some of the largest media executives were on the stage discussing disruption and growth areas in the industry. Content is being highly than ever before. My dad once said content is king. People are seeing they need that original content to succeed and have that relationship with the consumer. You need direct Retail Connection and data. Were increasingly competing with west coastbased Global Companies that want to get in the video business. They want to be in subscription and advertising. Theyre using massive amounts of data to do that. We need to be able to compete with that. Our advertising declined in the First Quarter. Theres a couple factors driving that. Number one, Revenue Growth lags audience growth. When the audience was decelerating, the Revenue Growth was still strong. The revenue were deriving today in q1 reflected decisions that the advertisers were making about decisions 6 to 12 months ago. The audience was not as strong as today. The prices were 60 higher. We have more reach and increasing engagement. Talk at code also turned to artificial intelligence. The ceo of intel, bri was askedt Driverless Cars and the ability to make progress in the field. The car of the future will look much more like a server. Now you have two 18 core zeons in there. If you get a ransomware or some virus on one portion of the device, well have memory backed up, all of the stuff will be in the cloud. We can refresh your car on the fly. While im driving or while its driving . Yes, we can shift the work loads and adjust that. Youll end up with a much safer car. Autonomous driving a big talking point in vienna. Arjun joins us live from there once again. Artificial intelligence a huge theme here at pioneers. I have the perfect guest to speak about that adam whichyer from viv, and also one of the creators of apples zoo siri. Adam, since cocreating sisi, what changed in the Voice Assistant space for you . What have been the biggest changes youve seen . What happened is siri opened up a new paradigm, a new way of interacting. Assistants today are not that important. Theyre utilities, you use them for a few things but its not changing business, its not changing anyones lives. Right now theres a race to the single interface, where all of the big companies, microsoft, apple, amazon and now samsung are trying to make the assistant the next paradigm, like the browser, like the smartphone. Youll have an assistant to help you in your lives. Can it get that complex, critics say this is gimmicky. You can tell it to play you some songs or set the reminder, but thats the extent of it. Where does this go . The issue is today most assistants dont do that many things. They can tell you the weather, they can look up some information, but soon every service, every content you can access through the web and you can access through your mobile phone will have a new way to interact with it. Well open it up to developers, you can do everything you do for computing through an assistant interface. Youre required by samsung, the largest smartphonemaker in the world, the s8 had a Voice Assistant called bixby. What are you doing at samsung with the future products . Were a whollyowned subsidiary of samsung. Were working on a next generation assistant. We will deliver it through samsu samsungs devices, perhaps under the bixby brand eventually but also to other interfaces. Do we expect that in the next smartphone . I cant comment on samsungs road map. You talked about the voice being the next paradigm. Is this all about the internet of things, washing machines, phones, the way we interact with those devices . Is this what android was for smartphones . Youre hoping viv can become and the Technology Behind viv can become for the technology of things . Its similar. We have one assistant, you will have the same assistant across every device. You can access every service you do on the internet or through smartphone, and youll do it in a way personalized for you. One of the big issues is new languages, bixby can do korean but it is struggling with english. How many languages do you expect viv to understand and how are you training that now . Theres multiple parts with languages, not only speech recognition and dialogue output, you need the content. Our plan with viv is to open it up to the worlds developers to every region of the world can have their own services and capabilities in it. Ultimately it will be global in every language and every region. How do you see this as a real business . How can revenues be driven by voice assistance . Is this by advertising that the Voice Assistants can deliver . You can think of the assistant as a new channel. If youre a Backend Service provider that sells something or has content, you can connect to an assistant and make money in similar ways that you do by having a website or a mobile app. For consumers its a free service you can access from anywhere. How can a business take advantage of a Voice Assistant then . What is the future for businesses using these Voice Assistants to touch consumers . Any business that has a website, theyre doing it to bring traffic. But there are many contexts where a web browser and a smartphone dont make sense. Driving in your car handsfree. Running with your smart watch, if youre in your home washing your dishes you will have a new way to get to those consumers who are not using a browser or smartphone because theyll be able to speak. Youre one of the cocreators of siri, apple continued with siri. Theres been criticism that it trailed the

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