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tv   BBC Business Live  BBC News  June 2, 2017 8:30am-9:01am BST

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this is business live from bbc news with alice baxter and rachel horne. president trump has walked away from the paris climate agreement. but europe and china are expected to re—affirm their comittments and expand collaborations. 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 at home and abroad. 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 india the money to do it. plus, we'll bring you all the latest market reaction to president trump's
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decision — and, in short, there hasn't been much. wall street stocks powered to fresh records on thursday, sending asia higher, and the upward trend looks set to continue here in europe. 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? let us know what you think. just use the hashtag bbcbizlive. hello and welcome to business live. great to have you with us. president trump has said he will pull the united states out of the paris climate change accord, calling it an unfair agreement that
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would hamstring the american economy while empowering the worst polluting nations. in a few hours, chinese and eu leaders will issue theirjoint statement on the paris climate agreement. china has already said it will honour its commitments on climate change. so, how much common ground is there between the eu and china over renewable energy? let's take a look at the eu first. in 2016 almost 90% of new power in europe came from renewable sources — that covers wind, solar, biomass and hydro energy. in particular, wind energy has now overtaken coal as the eu's second largest form of power. the eu plans to source 20% of its energy from green energy by 2020. so far 11 member states have met this goal — with sweden coming out top at 53.9%. but germany, france and the uk have yet to meet their targets. what about china 7
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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 the sector by 2030. china has already got the world's largest installations of hydro, solar and wind power. but many chinese grid operators are still set up to use coal — so renewable energy is getting wasted. greenpeace estimate i9% 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 at energy aspects. hejoins us in the he joins us in the studio. hejoins us in the studio. thanks very much for coming in. donald trump says america is out. we are expecting to hear from chinese and
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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 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. 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
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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 them, that looks hard to reach. what is the reaction within the usa? hours and president 0bama 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 renewa bles some of the federal support for renewables may start to come away from this, particularly tax credits,
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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 soi 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,
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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 a big push into the mainland. the appointment of this local head has been a top priority for the home sharing giant because it faces stiff competition from local rivals who dominate the market. 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
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growth strategy for asia's third—largest economy, which continues to suffer power shortages. mariko 0i in singapore has more details for us. what more can you tell 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 two leaders really emphasised the importance of natural gas as well as a more economically
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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 climate agreement? not much is the answer! 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 in nearly two years. we also saw the yen also retreated against the dollar. it's all thanks to some strong corporate profits and a record close on wall street. all three major new york indexes enjoyed a record close thanks to some forecast—busting jobs numbers. we'll have more on that injust a moment. meanwhile, here in europe, stocks look to be following the upward trend. 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 isa
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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, investors had already factored that in. it was, infact, data pointing to strengthening the economy that drove prices higher and set expectations high for this friday's jobs report. that was michelle fleu ry jobs report. that was michelle fleury on wall street. joining us isjeremy cook, chief economist, world first.
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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 beenin yes, moving a bit lower. that has been ina yes, moving a bit lower. that has been in a funk since the 0pec 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 renewa bles 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
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leaders, goldman sachs tweeting for the first time ever. he is on twitter and bail following him the first time ever. he is on twitter and bailfollowing 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—packa rd, microsoft, apple... morgan chase, walmart, pepsico. yes, bp shell, conoco, exxon mobil. rex tillerson was cancelling donald trump to stay pa rt 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 at1:30pm uk sector. the official figures were
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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. continue the record highs we have seen. the key dynamic is not how manyjobs seen. the key dynamic is not how many jobs have been seen. the key dynamic is not how manyjobs 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. still to come... how have tech firms been reacting to the news that america is quitting the paris climate change agreement? we'll have all that and more with our techology guru rory cellan—jones in a moment. 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
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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
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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
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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? you're watching business live. our top story. 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. they have not been reacting much. you can see the ftse 100. fairly flat. 0nly really starting to get going. following strong finishes in asia and the us
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overnight with all three major indices in new york enjoying record closures on thursday. and now let's get the inside track. 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 completely renewable energy. after trump announced his decision yesterday, reaction from the tech industry was swift. let's find out what they said with our technology correspondent, rory cellan—jones. fantastic to have you. we have heard about what the corporate world has been saying. what has the tech world 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,
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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 quy 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 ina 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
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surprising they are not happy. what a reaction. and from ibm, as well. we wa nt 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 yea rs. 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
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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. relationship develops over the next few yea rs. i 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 quy- 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
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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 snapchat claims it is a camera company, notjust a social network. iam not company, notjust 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? cheaper. i cannot talk to you. are you not taking me seriously7m 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.
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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. 0n 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 taking an interest in? jeremy cook isjoining 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. 0ne out of the paris climate agreement. one said by leaving the paris agreement, america has proved it is
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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 tojeremy 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 ta ke trump to say if you are going to take that position, i will take this
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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 0bama 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
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share capital. 0ne 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 fa ke 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. good morning, it is friday and
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almost the weekend and as we go into the weekend, the weather taking a changeable turn with showers through the weekend. a fresher feel for all, but there will be sunshine and for many, for most of the weekend it will stay dry. today, we have this weather front, it is will stay dry. today, we have this weatherfront, it is bringing rain. as it moves east, it will break up and be more showery into the afternoon. further north and west behind the rain dry weather with sunshine. showers developing in northern ireland. sunny spells and the odd shower across scotland. maximum temperature is 14—17d. northern england will stay cloudy i suspect this afternoon. there could be the odd shower. drizzle over the pennines. towards east anglia and
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south—east england, sunshine this morning. turning more cloudy this afternoon. the risk of heavy showers as temperatures increase. we could see up to 28 degrees in the south—east. hot and humid. see up to 28 degrees in the south—east. hotand humid. sunny spells in the south—west and wales. in the midlands, staying cloudy. there could be showers. storms overnight move to the east and then we are under the influence of fresher conditions into the early hours of saturday. cabbage is for many getting down to 11 degrees, 10 degrees. warmer in the selfies. weekend, saturdays starting cloudy with showers in the east. those will clear. for most, a dry and sunshine. heavy showers for scotland and northern ireland. fresher for heavy showers for scotland and northern ireland. fresherfor many, especially in the south—east, after the hot and humid weather today. sunday, under the influence of the
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atla ntic sunday, under the influence of the atlantic airstream from the west. bringing showers. 0n atlantic airstream from the west. bringing showers. on sunday towards south wales, south—west england. most having a dry day on sunday. sunny spells. next week, rather u nsettled sunny spells. next week, rather unsettled once again. rain particularly on monday. some could be happy. goodbye —— some of that could be heavy. hello. it's friday, it's nine o'clock. i'm chloe tilley. welcome to the programme. global dismay as donald trump pulls america out of the paris climate the paris climate change agreement — we will explain what it means and why it's being described as a sad day for the world. we want fair treatment for our taxpayers. we don't want other leaders and other countries to be laughing at us any more, and they won't be. the move will be at the top of the agenda of a meeting
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between china and eu officials in brussels — we speak to our correspondents in brussels and beijing. the parents of charlie gard, the sick baby who doctors say should have his life support switched off tell this programme why they are fighting so hard to give him
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