Into the weekend. This as president xi brings president obama in order to try to get they gaucnegotiations ba track again. And fosun chairman goes missing. Welcome to the show. We have got the Ieas World Energy outlook breaking and hitting the wires at the moment. As we said on the supply front they said the evidence that the saudiled strategy is starting to work. Theyre taking a toll on nonopec supply with annual growth shrinking in november however they do say that they see iranian oils ramping up and that is the big unknown for next year. On the demand side, theyre saying that Lower Oil Prices have driven demand growth to a five year high as motorists fill up their tanks. However that is likely to have peaked in the Third Quarter saying consumption is now going to be on the wane and in 2016 we might see demand starting to slide a little bit. Oil price versus been soft this week. One of the reasons why equity markets have been soft as well. Wti below the 40 mark and comfortably below that, maintaining that position for five trading days now. 36. 62 for wti. Brent 39. 5. Its looking soft below 40 for wti. Quite an important barrier that we crossed a few trading days ago. I had a chance to look at the detail in it as well. I see a lot of bad things but thats the other point. We heard all of this earlier this week and heard it several times as well. Youre talking about the supply side and thats important and i think the fact that demand growth is seen slowing in 2016 thats very interesting. Its something im beginning to hear more regularly as well. Demand growth was in 2015 about 1. 8 Million Barrels a day. Demand growth in 2016 seeing only 1. 2 Million Barrels a day so the demand growth is tailing off and coming from china and emerging markets as well. So despite the fact that were up 35 barrel and below 39 barrel in wti and demand growth is slowing and youll still have the oversupply in 2016 so its a worry. Its continuing to swell and thats a very interesting point and also important for cop21 as well. There will not be a carbon price in this agreement as well. That will be tough to compete on a purely economic basis. Im waiting for my guest to come but ill hand back to you guys. And ill just tell you that lord nick stern is going to join us in a couple of seconds time. Hes behind the stern review which is the 2006, 700 page report for the government and how it could effect the Global Economy from now going forward. Well come back to that in a couple of minutes. Back to you. We look forward to that interview. Jim, oil prices have been weak for a long time, particularly in the last week or so. Do you think equities are due a slip in reaction this week . Good to be with you. Thanks for having me on. I think that whats going on with commodities is when oil prices and metal prices go down there are enough people who are on the other side of the trade that theres a squeeze on liquidity for demand from collateral and thats what is really causing the positive correlation between commodities and equities. Theres no fundamental reason for that and if youre a fundamental investor that is an opportunity. Because if equities go down with Commodity Prices theres no real fundamental r fundamental reason that that should be the case. So i think fundamental investors, longer term investors can take advantage of that irrational move in markets. What about special cases . The likes of brazil, petrobras such an important part for them. Could things go so far that we start to see those companies and governments brought down because of this commodity weakness . Absolutely. I should have qualified my earlier comment by saying lower commodity price is the good news unless you have oil wells and mines and of course brazil has both of those and thats very bad news for Companies Like petrobras. We have seen scares around glencore so in both oil and metal theres either the likelihood of further credit issues. The default rate in bonds has gone up. The high yield market is in a mess at the moment. Thats an opportunity though because its very isolated to the commodity sector and thats where the problems are. More from jim coming up. Lets get back out to cop21 where steve is standing by with his guest. Lord nick stern joins us. Lets start off on then and now. Whether things have gotten much worse or better. Some things transpire differently. Technology improved faster than we thought then. Ten years ago the cost of a solar panel is 90 down. Divided by 10. I dont think we expected that. Technology has moved faster than we thought. On the other hand the science is still more worrying than ten years ago so i think the statement that i made that the cost of inaction are much bigger than the cost of action is still stronger now because the cost of inaction from the science look to have gone up but the cost of action with the great changes in Technology Look to have gone down. In terms of the numbers it was like 5 a year costing global gdp is the price of inaction as well as what you said in the review. Is it still the same kind of numbers . That was a figure averaged over a period of time. Averaged over countries and averaged over possible outcomes but i also said it could be more than 5 and i think its a lot more. In terms of whats going on here, i got the impression just listening to you speaking earlier that you were quite encouraged by things but theres a lot of issues, such as carbon neutrality, 1. 5 degrees rather than 2 degrees. Dynamic issues. Theres a lot of massive issues still out there, arent there . Well, theres a great move to resolve those issues and they have come down. If you measure in terms of brackets and text, its unagreed text. In the two days we had up to last night when the latest version came down we went from 350 brackets down to about 50. So were moving toward agreement here. I think the text is good. Its not the final text. But it does have as far below 2 degrees that we can and the statement that 1. 5 degrees is the kind of objective that would be good. It does have that language. Thats good and its there for a reason. Theres a difference between what developed countries do and what developing countries do and those are are important too but i do think that were close to an agreement. A very good chance well get there and the text at the moment is quite strong and transitions the low Carbon Economy is where were going. Its very attractive. Its the growth story. If we dont get enough investment in hydrocarbons we could see enough horrific problems in the next couple of years, couldnt we . And replacing colby gas as a bridge and renewable and other low carbon future is Something Likely to happen. Carbon capture and storage is something where we need research and development and demonstration. British government just cut that. Cut support for it. They cut support for it in a particular root and theyre still working with india for example and i hope thats something that the British Government will continue to support. This is a big challenge. We have to go at it in anyway we can. You dont know for sure exactly whats going to do better. You should diversify and look at everything. Energy efficiency is going to play a big role and i believe the u. K. Government will be looking at different ways. I hope so. Not only in the u. K. But around the world. Nice to see you. Thank you for your time. It was only 700 pages. 690 something. I bit like reading a few cop texts. Absolutely rivoting. Is it shorter than the ar5. Lord nick stern. Back to you guys. Thank you very much. Were just going to have a quick look at the squawk box poll of whether you should be staying in paris or coming home. Bring him home. The latest 65 , leave steve in paris. I voted ten times so. Well, i was the other vote for bring steve home. Republican president ial front runner donald trump called scotlands nicholas sturgeon ungrateful as he was stripped of his scottish business ambassador role. He said the u. K. Politician should be thanking him and not panderring to political correctness. He was removed following his comments on banning muslims from entering the u. S. Quick comment from you as a scottish man. Correct response from the scottish people . Thats an understandable response. I dont think theyll have to worry about dealing with President Trump because i doubt hell be elected but you never know and from a market and business point of view the market hasnt been taking it seriously yet. When we get to the process it will start having an impact on the market and i think that the key issue here is who are the candidates in the election. If its hilary versus rubio they wobt mind as much. The latter option, is that likely . I think that thats potentially right. It could be clinton trump, it could be clinton carson. The republican field is wide open. If hilary doesnt blow up, though, she will be the candida candidate. Theyre extreme individuals. Rub b rubio is conservative himself. I think the extreme candidates do because carbon and trump can mobilize the republican base, however in a general election there is very little cross over appeal. I cant see many ethnic minorities voting for donald trump so i think that would mean a much easier route for hilary to the presidency. Odds on it will be Hillary Clinton as president but there are still some questions around it because a lot of events can happen. We havent got on to markets specifically. Time for one more. Fed next week, youre expecting a rate hike. Is there enough inflation for that to be the case . The world has too much deflationary conditions going on. We, in fact, have a very benign environment where you could get 2 or 2. 5 growth in the u. S. With no inflation and that would be very good for prosperity. I think the idea that we need inflation to justify a rate rise, i think you can have very low inflation, perhaps zero and a normalization of Monetary Policy, which might mean a short rate of 1, 1. 5 in a year or two time. If thats the case that could be a Pretty Healthy economy. Im both expecting and hoping for a modest rise in the Feds Fund Rate last week. Great stuff. We have to leave it there. Thank you for joining us and have a lovely christmas. Still to come, one of chinas richest men goes missing. We bring you more on that story after the short break. Its the business of wind. The business of sunlight. Its the business of making energy cleaner, smarter and more efficient. We have committed our people and capital, bringing higher finance to lower carbon. Why . Because its not just about Climate Change. Its a change in the Business Climate that is creating a better environment for everyone. Bank of America Merrill lynch. Named the most Innovative Investment Bank for Climate Change and sustainability. The market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back. Lets look at european trade. Its been a soft week because of the factor at the top of the show. Weak oil prices. Wti well below 40 now. Around 36 or 37. That weighed on the market for the best part of three or four trading sessions. Its the same today. Were down by about 0. 7 for france and germany. The ftse 100 down about. 5 . Lets look in at the commodity names themselves. Investors still not liking that space and theyre one in the news today. Its latest rights issue was undersubscribed. 71 of the sales were taken up and theres a shoe of announcements with capex reductions and job cuts. Other names, Angelo America down 2 . The pboc said its at the weakest level since august 2011. Lets check in on the wider trade in asia. Sri is there for us now. Hi, wilf. Were running off the week on a losing streak as you can see here and its really being dogged by the collapse on the oil side and also depreciation pressure in the chinese yuan and i think the move here is very, very nervous. Were down to the wire in terms of the fed and were still trying to price it in and it has been well telegraphed but all comes down to the u. S. Dollar. Slightly firmer u. S. Dollar and weaker japanese currency so that helped the Japanese Equities market elsewhere we are seeing weakness and nervousness ahead of the fed and also ahead of the china data dump that comes tomorrow so yet another event risk that the markets have to contend with. I think theres a lot of jitters in the market now. As we head closer to the fomc and the big question is asia. Especially at the emerging market end of the spectrum. Ready for it. It has been priced in for a large degree which way does it go. As we stand, back to you. A pleasure as always. Thank you for that. Right trading was halted in a number of companies as the chairman of the Chinese Investment group has gone missing. The financial magazine reported that he was seen being taken away by police at Shanghai Airport yesterday. Its unclear if he is under investigation or possibly assisting an investigation. He is one of chinas richest men and is described as the countrys warren puff gbuffet. For the latest, visit cnbc. Com. Now divergence, one of the biggest issues for the Swiss National bank head said the difference was creating huge challenges for small economies like switzerland. This after he kept rates on hold that pledge to intervene again in order to weaken the franc. The currency causing major headaches. Many of whom are living in some of the most expensive cities in the world. They now take the top four spots in the Eca International list of pricey places to live. Lets get out to carolyn. She is live for us. Pretty expensive out there. It is but its always been a very, very expensive city but after the shock removal of the swiss franc cap in january 2015 we saw that prices have risen more in relative terms its dropped 10 so far this year. A lot more headaches and they come out with a similar study every year and confirm that its the most expensive city to live in. You need around 3,600 swiss francs to get by every month. Thats roughly 2400 pounds. So thats quite a lot of money but at the same time and i think this is very significant ubs points out that the nominal or relative wages are also the highest in the world. To some extent theyre compensated by what theyre earning. How difficult is the rise of the swiss franc really for the People Living in switzerland. I am living in an economic way myself. Life is expensive in switzerland for sure. And and i am aware of that so im always living in an economic way. We are healthy and i think it would be a kind of ignoring the really poor countries if we say we have less wealth here in switzerland. That would be ignoring the really poor countries because we still living a good life here. I dont think that it was corre correctly seen in switzerland. We saw it in the economy. The smi was going down and with the swiss franc was strong and all of these are difficult to work with germany or france. But for the swiss economy its marginal and difficult to work with a company outside of switzerland. Theres less people than two years ago. On friday at 5 00 there were so many people and now theres so less people than two years ago. And wilf, its obviously the Big Companies out there. The smi companies and the ubss of this world that find it a lot easier to offset the effect of the strong swiss because theyre so very well diverse identified but many of the Small Companies and many in the Manufacturing Sector theyre really feeling the pain and there have been plenty of job losses this year. But before i hand it back to you, i have a couple of coins left. You can have cheese or chocolate. I dont think its going to be enough for that swiss watch that you always wanted. Top of the list would be the watch but definitely chocolate over cheese. Is swiss cheese a thing . Its more swiss chocolate. Of course its a thing. Its a big, big thing. Its a big thing. I just like the cheese they put on top of the mcdonalds hamburger. I dont know where that comes from. But ill take a double order of chocolates please, thank you very much. All right. Well be back out with carolin again later in the show. Still to come on worldwide exchange. Taking it up a gear, find out why ford is looking to stay current by setting its sights on the electric car market. That story coming up next on worldwide exchange. Ashley bryant, you are a teacher of small children. Thats right. I have read it is the hardest job in the world. Thats why im here. Can you. I can offer advice from the accumulated knowledge of other educators. Thats wonderful but. I can tailor a curriculum for each student by crossreferencing aptitude, development, geography. Sorry to interrupt. But i just have one question how do i keep them quiet . pause watson . There is no known solution. Chinas president calls u. S. President obama to reach a deal. And the chairman of fosun goes missing halting the trade of five Companies Held by the investment firm. Lets have a look at european markets which are in the red rounding off a pretty soft week for European Equity trade. As you can see were down about. 5 for the ftse 100. Continental europe down from that. About 7 for the german market. The euro had a pretty extraordinary month just below 110. It then came down to 105 and its now back at 10961 of course after that ecb meeting last week failed to surprise investors quick look at bonds where were looking at the u. S. Ten year at 2. 21 . It is anchored by the yields around it. 0. 56 . Already a big yield pick up for the u. S. Yield compared to that lets have a quick look at commodities. Very weak with wti at 36. 6 and brent 39. 6. Lets have a look at some flashes coming from the ecb he says he is not focused on the fed and what its doichk with its policy but it does need to be taken into account. He says weak global inflation is a risk but the risk of deflation is now off the table. Those are the latest fla