02/06/2017 BBC Business Live


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Live from London, that's our top story on Friday 2nd June.


President Trump's decision to withdraw the United States


from the Paris climate change agreement has been condemned


Cities across America and nations across the world


say the fight against global warming will continue.


Russia signs a deal to build two new reactors at a nuclear


power station in India - oh, and it's going to loan


Plus, we'll bring you all the latest market reaction


to President Trump's decision - and, in short,


Wall Street stocks powered to fresh records on Thursday,


sending Asia higher, and the upward trend looks set


Later in the programme, we'll be hearing about the reaction


of technology companies to President Trump's


decision to quit the Paris climate agreement.


Plus, we'll talk about Snapchat and Amazon -


that's all with our techology guru Rory Cellan-Jones.


And today we want to know what you think about America leaving


Paris climate agreement - is the deal now in tatters,


or can the rest of the world manage without America?


President Trump has said he will pull the United States out


of the Paris climate change accord, calling it an unfair agreement that


would hamstring the American economy while empowering


In a few hours, Chinese and EU leaders will issue


their joint statement on the Paris climate agreement.


China has already said it will honour its commitments


So, how much common ground is there between the EU and China


In 2016 almost 90% of NEW power in Europe came


from renewable sources - that covers wind, solar,


In particular, wind energy has now overtaken coal as the EU's second


The EU plans to source 20% of its energy from


So far 11 member states have met this goal -


But Germany, France and the UK have yet to meet their targets.


It still uses half the world's coal -


but use of the black stuff is falling.


In 2016 it dropped for the third year in a row.


China is now investing heavily in renewables -


it hopes to put more than $780 billion into


China has already got the world's largest installations of hydro,


But many Chinese grid operators are still set up to use coal -


so renewable energy is getting wasted.


Greenpeace estimate 19% of Chinese wind power didn't get used


in the first three quarters of last year.


Trevor Sikorski is the Head of Natural Gas Carbon


He joins us in the studio. Thanks very much for coming in. Donald


Trump says America is out. We are expecting to hear from Chinese and


EU leaders in a few hours. What do you expect them to say? I think they


will reaffirm their commitment to the Paris agreement. The Paris


agreement was very much countries coming to the table saying, "This is


what we are going to do, these other domestic policies we have in place


for reducing emissions". The idea was that the world at that and put


on pressure for people to do more so I think both the EU and China will


come out and say they are still on track of it, still good with the


Paris agreement. The Paris agreement is still going to be a strong


agreement. Is problematic that the US is out but they will say they


will provide leadership globally. How problematic is it that the US is


at? It is not about reducing emissions. The US was also pledged


to provide finance and innovations to help other countries reduce their


emissions. I think the biggest impact is on those financial


commitments. There are some big commitments whether developed world


is supposed to help the developing and emerging markets to adapt and to


finance mitigation efforts in those countries. It is about 100 billion a


year from 2020 to 2025 with an expectation that number would go up


and those numbers are going to be very, very hard without, I would


say, a big strong US presence because it is such a big country.


That is very good at mobilising capital without them.... Without


is the reaction within the USA? is the reaction within the USA?


Hours and President Obama signed the agreement, green energy boom that


the US. What will happen to that? That is one of the big losers in a


way from this. When you look at renewables, it is pretty patchy in


the states. Some states are very good and active in the renewable


space, others aren't. I think what will happen now is that those states


which are still active will have to step up, maybe do a bit more because


some of the federal support for renewables may start to come away


from this, particularly tax credits, which are really important. I think


those can be taken away. The states are going to have to step up and I


think a lot of them will step up but those states that are doing nothing,


there is going to be no pressure to really get into renewables, which is


what Paris probably would have done if the US was going to be complying


with what they said they would do. We have a ready heard from the


coastal states, saying they will still forge ahead with their plans,


despite his agreement. Absolutely and so I think you have some states


which are very good on renewables and will continue to be good on


renewables. A lot of people in the USA will see that coming out of


Paris as a terrible thing for the USA and they will do things locally


to ensure that emissions reductions are continuing to be made in the US


and that US companies are on the forefront of technology development.


This is a really important space to be in globally. I think we are going


to see a revolution in energy, particularly in power and power


generation and I think that will affect transport. You have to be in


that space and if you're not, it will be problematic. Trevor, thank


you very much for your time. Let's take a look at some of


the other stories making the news. President Trump has asked the US


Supreme Court to allow his revised travel ban which targets visitors


from six mainly-Muslim countries. It follows an earlier decision


by several lower courts that ruled that the ban violated


constitutional rights. The Attorney General said


the verdict thwarted Mr Trump's effort to protect


US national security. Airbnb has appointed a dedicated


boss for China as it tries to make The appointment of this local head


has been a top priority for the home sharing giant because it faces stiff


competition from local rivals Russia says it's ready to build


a dozen nuclear reactors in India over the next 20 years to back


Prime Minister Narendra Modi's growth strategy for Asia's


third-largest economy, which continues to


suffer power shortages. Mariko Oi in Singapore has


more details for us. What more can you tell us? I guess


it is somewhat related to your top story, climate change on the Paris


agreement, but as you mentioned the two leaders of India and Russia met


and Russia has agreed to build two new nuclear reactors at a site in


India. India is looking to expand its green energy capacity. Those


will be the first of 12 that will be designed and built by Russia, and


Moscow has also agreed to lend over $4 billion for the construction and


the two leaders really emphasised the importance of natural gas as


well as a more economically efficient and environmentally


friendly feel, in order to meet the Paris agreement. So despite the fact


of the US pulling out of the agreement, the two leaders are


really recommitting to the agreement. Thanks.


So, what's been the markets reaction to Donald Trump's


controversial decision to withdraw the US room the Paris


Staying in Asia, Japan's benchmark index, the Nikkei,


led shares higher right across they region -


as it closed above 20,000 on Friday, chalking up its best finish


We also saw the yen also retreated against the dollar.


It's all thanks to some strong corporate profits and a record


All three major New York indexes enjoyed a record close


thanks to some forecast-busting jobs numbers.


We'll have more on that in just a moment.


Meanwhile, here in Europe, stocks look to be


Well, let's hop across the pond and check in with Michelle Fleury,


who has all the details about what's ahead on Wall Street Today.


It is a jobs Friday in America. The closely watched monthly government


report is likely to show US employers added 185,000 jobs in May,


signalling that the trend of slow but steady economic growth


continues. The unemployment rate is forecast to remain unchanged at 4.4%


and it will be interesting to see how Wall Street reacts. All of the


major US indexes closed higher on Thursday and Donald Trump touted


this market's strong performance while announcing his decision to


withdraw the US from the Paris climate accord. But analysts said


the rise in the market was not actually due to that. Instead,


investors had already factored that in. It was, in fact, data pointing


to strengthening the economy that drove prices higher and set


expectations high for this Friday's jobs report. That was Michelle


Fleury on Wall Street. Joining us is Jeremy Cook,


chief economist, World First. There wasn't a huge amount of


reaction on the stock markets to this announcement that President


Trump is going to Paul US out of the Paris climate accord. There was a


bit of reaction with the oil price? Yes, moving a bit lower. That has


been in a funk since the Opec meeting a week or so ago and this


has just continued a bit of the negative trend on the belief that if


we are at a stage where the US, one of the largest producers of energy


globally, is moving away from renewables or in any way ceding


responsibility for green energy and moving back towards something, for


example oil, and more supply coming into the market it one reason we


haven't seen too much movement of the stock markets is that it takes


former careers to get out of the Paris Accord Audi has just signalled


the intention to do it. The benefits will be felt over decades and stock


markets aren't clever enough to price that in yet. There has been a


huge reaction on Twitter. Business leaders, Goldman Sachs tweeting for


the first time ever. He is on Twitter and bail following him and I


hope you are because he's probably going to cry with most of the first


week was, "Today's decision is a setback for the environment and the


US's position in the world". You don't get more condemning than that


and we've seen other members of the business community, Hewlett-Packard,


Microsoft, Apple... Morgan Chase, Walmart, PepsiCo. Yes, BP Shell,


Conoco, Exxon Mobil. Rex Tillerson was cancelling Donald Trump to stay


part of this deal and people who have been supporting him also saying


that this is a bad idea. Very briefly, as I did tease it, we had


some very good news which is making people encouraged about the main


sector. The official figures were out at 1:30pm UK town today to talk


anything above 200,000, you would expect the dollar to rally and


continue the record highs we have seen. The key dynamic is not how


many jobs have been added but how they are paid. If hourly earnings


are around 2.5 present, beating inflation, good news for rate rises


later in the year. Jeremy, you will be back to do the papers.


How have tech firms been reacting to the news that America is quitting


We'll have all that and more with our techology guru


You're with Business Live from BBC News.


Only one week to the UK's election, and the markets seem very uncertain


about the mixed messages they are getting from the polls.


The pound is on a roller-coaster ride, rising in recent weeks


while the FTSE keeps making new highs.


But are any of these moves significant?


Let's find out with our business correspondent Andrew Walker.


Andrew, just tell us, what has the pound been doing over the last we?


It has been up and down, and what has caused the fluctuations?


We had a striking move on Tuesday when we got advanced indications of


what would be in voting surveys in the next morning's papers. If you


look at the graphs, it looks a sharp decline in fact it was half a cent


of the dollar. That is because the survey indicated the vote was likely


to be closer than people assumed and that the markets then took the view


perhaps the Prime Minister is not going to have such a free hand, if


it is Theresa May, she might otherwise have expected and it might


create more uncertainty about what will come out of the Brexit


negotiations. Since then, background has been regained. Certainly the


general picture has been a continuing one of the pound is being


significantly sensitive towards development on the political front.


It has been a roller-coaster. Is this uncertainty set to continue.


I guess in ten days, two weeks, one uncertainty will be over, we will


know the result of the election. Then about to launch into the Brexit


negotiations themselves. It is fair to say one way or another, we can


expect to see episodes of significant uncertainty about what


kind of post-Brexit arrangement the UK will have and I think that is


likely to be reflected in the markets in the months ahead. Great


to talk to you, Andrew Walker. Much more on this story on the website.


Indeed all the stories we are covering on the business news


website. And we are wrong Twitter. We have had some tweets already


which we will read at the end of the programme. What you think of


President Trump pulling out of the Paris Accord?


President Trump has walked away from the Paris climate agreement.


But in the next few hours, Europe and China are expected


to reaffirm their comittments and expand their collaborations.


We can see how the markets are reacting. They have not been


reacting much. You can see the FTSE 100. Fairly flat. Only really


starting to get going. Following strong finishes in Asia and the US


overnight with all three major indices


overnight with all three major indices in New York enjoying record


closures on Thursday. The tech industry in particular has


supported the Paris Agreement, and many of the big tech companies


are currently transitioning their energy-guzzling


data centres to using After Trump announced


his decision yesterday, reaction from the tech


industry was swift. Let's find out what they said


with our technology correspondent, Fantastic to have you. We have heard


about what the corporate world has been saying. What has the tech world


been saying? The tech world, largely based in California, pretty liberal,


generally, were not receptive to Donald Trump when he arrived but


some got together and joined his various advisory councils. The big


announcement last night, Elon Musk, the charismatic standout figure in


Silicon Valley, he resigned, departing presidential councils,


climate change is real, leaving Paris is not good for America all


the world. Elon Musk, not surprising, he came under pressure


for staying on the presidential Council. Tim Cook of Apple, not a


guy out there much politically. A company that very much wants to get


on with what it is doing and its vision of the world says, decision


to withdraw was wrong for the planet. Apple is committed to fight


climate change and we will never waver. Mark Zuckerberg went to his


Facebook page and said it was bad for the environment and he said it


puts our children's future at risk and in a plug, we've committed every


new data centre will be powered by 100% renewable energy. A lot of


these companies have big investments in green energy. That is one of the


big frontiers in Silicon Valley. Not surprising they are not happy. What


a reaction. And from IBM, as well. We want to talk about Amazon.


Their share price reached a pretty penny this week. $18 when it was


first on sale? It went through $1000. A lot of the


acceleration over the last couple of years. What is interesting President


Trump started his speech talking how fantastic the stock market had been


performing under him. Of course, just about all of that was the big


tech company stocks which continued to accelerate. I have a chart


spotted in the Financial Times. The biggest stocks in the world by


market capitalisation, Apple, Alphabet, that is Google, Microsoft


and Facebook. Extraordinary transformation in the way tech


companies were valued. We would have expected a fuel years ago Exxon


Mobil to be top of the heap will stop technology is key to the


American economy. It used to be like Exxon Mobil and now it is the tech


companies and President Trump seems to be on the wrong side. It will be


interesting to see how the relationship develops over the next


few years. I am just going to turn my phone. Very bad practice in the


studio. You protect guy, you have do stay plugged in! -- you are the tech


guy. I think somebody was ringing about this. These are Snapchat


spectacles. They have arrived in Europe will stop they have been out


in the States for a while. I press the button. They record ten seconds


of video. I am the guy who wore Google Glass for three months and


eventually got sick of being mocked by my friends and family and


colleagues. I am not sure. My issue is, they look old. They are not


fashionable. You say that... Snapchat claims it is a camera


company, not just a social network. I am not convinced. It is a great


gimmick. Popular amongst a certain crowd. People who used to buy you go


pro and strap it to their head and go down a mountain, these will be


cheaper. I cannot talk to you. Are you not taking me seriously? It is


knowing we are being filmed while talking to you.


Disconcerting. We will leave it there. Have a nice weekend. In a


moment we will take you through the business pages.


Here's a quick reminder of how to get in touch with us.


Stay ahead with the breaking business news. We will keep you


up-to-date with latest details with inside analysis from editors around


the world. We want to hear from you. Get involved on the business live


web page. On Twitter and you can find us on Facebook.


What other business stories has the media been


Jeremy Cook is joining us again to discuss.


We asked you at the beginning of the show to let us know what you think


about President Trump taking the US out of the Paris climate agreement.


One said by leaving the Paris agreement, America has proved it is


not to be relied upon in any agreement of international light.


Lulu said, why should USA keep EU happy country to USA agreements.


Good for Trump. Corbyn will wreck the economy so we won't need fuel.


That is reference to Jeremy Corbyn here in the UK.


Also Melvin Munro says, the Americans pulling out of the


agreement is catastrophic for our world and should be repealed.


Jeremy you were talking earlier about reaction on the markets and


also from businesses. It feels like there has been a huge and immediate


response. It was channelled, I do not know if you saw Emmanuel


Macron's speech, he finished in English saying, make our world great


again. A direct challenge to Donald Trump to say if you are going to


take that position, I will take this position and I have more people


behind me ready to fight back. This could be the defining, certainly


characteristic of politics. We have economic some productivity and jobs


and tech to talk about, but it could be channelled through this


environmental concern. Interesting you said a lot of the oil company


bosses tweeted to say they do not agree with the decision. They have


huge investment tied up in green energy because the Obama plan made


them do it. They want to be good corporate citizens. They know as


people become aware they do not want to buy from a dirty company,


so-called. With corporate and social responsibility they want bank for


their buck. Facebook shareholders rejecting proposals on fake news app


and Mark Zuckerberg control. When the headline says Facebook


shareholders, it is Mark Zuckerberg, he has majority shares. 14% of the


share capital. One of the richest men in the world. Most of the voting


rights are in his back pocket and a couple of activist investors,


including the Baldwin brothers, Juno capital, trying to push to agree to


change terms around the promotion of fake news and around the gender pay


gap within the company. This has been rejected. We have seen more


activist investors taking on big business. You just have to look at


pensions companies and the remuneration of CEOs to see this is


a trend. Thanks for your insights. For now, thanks for watching. Have a


nice weekend.


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