Transcripts For CNBC Street Signs 20170602

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 likes of alexa and even google assistant. How do you look at apple now and what theyve done with siri . Are you disappointed with where theyve taken it . Im proud of what we accomplished to goat to initially take this new paradigm and bring it out to hundreds of millions of people. I think apple is doing good work and is a major player in the race. Whats going to matter is which companies can elevate an assistant from where it is today, utility, use it for a few things, to be this yubiquitous paradigm. It will be great for consumers no matter who wins. How do you stand out versus amazon alexa and google assistant. How are you trying to get that eblg . We have a technology advantage. Were doing it in a different way than anyone else does. Every other assistant, a human programmer has to create the use cases that it can do. Once it understands your words, a programmer says i will do this. With viv, viv writes its own code on a per user basis. If you ask viv something, the ai will write a program and execute it. Thats quite a scary thought at the same time. One of the big debates here at pioneers is around artificial intelligence, and that taking away jobs and creating disruption. Are you expecting a massive fallout in the job market as a result of automation and ai . Automation is a big term. All technology as it advances will disrupt some industries. Humans are resilient. They can do things that no machine can do. No ai can do. I dont worry about the future. But there may be some change. Fantastic. Thank you very much. As you can hear, all the Big Technology players in the game, its an ai race right now, especially in the voice assistance area. Watch this space. Guys, back to you. I want to take you back to brussels, the chinese premiere, li, is still speaking at the summit. We heard from Jeanclaude Juncker before, he said china and European Union are aligned on International Solutions, nowhere is that more important than leading the Global Clean Energy solution and the implementati implementation. Very sporimportant words and cot here after yesterday President Trump pulled the u. S. Out of the paris accord, which caused international condemnation. Dont miss our special coverage this afternoon, we are live from the st. Peetersburg Economic Forum where Vladimir Putin will take the stage with Narendra Modi. Coming up, President Trump chooses pittsburgh over paris, but the mayor of pittsburgh chooses paris. I found out about five minutes after the vote, and im outraged that the president would use the city of pittsburgh as a comparison. Pittsburgh shows why the Paris Agreement is good economics for the United States what we did today sets us back decades. Welcome back to street signs. Im carolin roth. These are your headlines. Green Energy Stocks see red after President Trump announces he will withdraw america from the International Climate deal saying other countries were reaping the benefits at americas expense. We dont want other leaders and other countries laughing at us anymore, and they wont be. They wont be. I was elected to represent the citizens of pittsburgh not 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. Weather back to data watching in the uk. The uk may construction pmi came in at the highest level since december 2015 at 56. Thats versus a reuters pole of 52 52. 7. Easily beating expectations. Were seeing a tiny bit of reaction in sterling dollar, which was trading at sevenmonth highs. 1. 2865. I guess these days sterling dollar is reacting more to the polls weve seen out. Theyve shown a tightening in the polls, that has depressed the sterling dollar trade. Not long ago we were at the 130 mark, now well below the 129 handle. The uk may construction pmi easily beating expectations. The high since 2015. The commercial index is the highest since march 2016. President trump is seeking to once again revive his travel plan to democrat prayerly bltem travelers from six muslim states. The executive order was first introduced in january. The administration asked the Supreme Court to allow it to enforce the executive order for now while the justices weigh on whether to hear the appeal in autumn. Lets get context from tracie potts who joins us from washington. Given that the Supreme Court is now in conservative majority again, given trumps pick of mr. Gorsuch, what do we expect from the resulting into a few weeks time . We may see this sooner rather than later. The Justice Department is asking the court to fast track it. Instead of hearing the case next term which starts in october, its possible they could hear this appeal to the Supreme Court this year. Its possible. We dont know yet. What theyre asking for is a request to go ahead and enforce the travel ban now while theyre waiting for the court to hear the case. The Trump Administration has been quite frustrated at these bans. They have been turned down by federal courts at every turn. Bans in maryland, hawaii, now working their way through the appeals process. Also turned down on one coast. On the west coast they are yet to hear that case. The bottom line, theyre trying to get what they might consider momentum, getting this travel ban in place so that people can see how it works while its still working its way through the courts. Its not clear at all if thats going to happen. The basis on which the ban has been upheld has been religious discrimination. According to last weeks court specifically because of the comments that the president made about banning muslims during the campaign. So, we wait to see what the court will say about fast tracking this, and about allowing the administration to go ahead and put it in place. There have been protests throughout the country because a lot of people just think this ban is discriminatory. Tracie potts, thank you very much for that. This is a busy time seasonally for the Supreme Court. Well see how quickly they can get this done. Tracie potts from nbc news in washington. Lets turn our attention to the u. S. Markets. A quick look at futures at this point. The s p 500 seen up by 4. 5 points. The dow jones up by 53 points. The nasdaq up 18 points. The dow hitting the first record close in three months. All sectors were higher. In europe this morning, we are continuing some of the rally we saw yesterday. The ftse 100 up by 0. 3 . Thats another record high. Seems like its another record high for the xetra dax in germany, 12,795 points. The cac 40 up by 0. 75 . The big story is oil prices. Brent crude is off almost 2 . Back below the 50 handle, 49. 66. Wti crude at 47. 40. This comes on the back of trump withdrawing the u. S. From the paris accord. Theres fear that there will be more oil drilling onshore and offshore as a result of this. That would exacerbate the oversupply that were seeing. Jeff spoke to opec secretarygeneral in st. Peertsbupeerts bu petersburg and asked about oil prices. It has been a concern to opec and also consuming countries. One objective of the declaration of cooperation in addition to bringing down the stock overhang to near the fiveyear average is also to reduce the level of volatility in the market. I think looking forward we are on course. Along the way you may have some bumps here and there as a result of other factors that may not necessarily be related to the fundamentals. But in general we are on course to achieving our objectives. So, the recent decline weve seen in headline oil prices, you think that may be temporary . It is largely, i understand, due to some automated trading models, some expectations on what we should do or should not do. But we will not be distracted. We firmly believe that extension of the cooperation to the First Quarter of next year is in the best interest of all producers and consumers. You can see the fundamentals are gradually but steadily improving. Do you think theres any chance of a later implementation of any caps on any specific countries . I know the market has some concerns that it didnt see caps imposed on some countries. It is a work in progress. The joint Ministerial Monitoring Committee was given an expanded mandate when the conference met last week in vienna. Together with the joint Technical Committee and the opec secretary, we are continuously reviewing market fundamentals and you cannot at this moment rule out any further policy decisions. That was Opecs Barkindo there. Looking at some comments from compa exxons ceo, their plans are not changing as a result of the u. S. s exit from the paris deal. Im seeing this very bullish report coming out of the u. S. Yesterday, crude stocks falling sharply last week. The most since december. Is there a sense this could be the turning point when it comes to balances . The challenge is we have quite high inventories. We should be in deficit to run those down. At the moment the market is looking forward. If we project forward, we end up with 1. 5 million barrel a day surplus in 2018. Thats a big number. We have been at that number since 2010, 2011. As of here and now, fundamentals are tightening. But looking out to 2018, its looking a fair bit worse. How long before this is translated into a higher price. You say inventories are incredibly high. Do we see signs of them coming down . They are coming down. Of course we have not had the capex spent over the last couple of years. Its interesting, with prices where they are now you would expect the oil majors to be continuing to cut back in capex, especially for high offshore projects. But given the level of hedging from the u. S. Onshore guys, theres a good degree of certainty well get that response coming through. That does create a difficult back drop for 2018. Do you think opec members are shaking in their boots when they see the news coming out of washington with the u. S. Leaving the paris accord potentially theres further drilling onshore and offshore . Does this change the rational of the opec Oil Agreement at all . I would say it doesnt change the rational. Theyll be concerned do they have to do more. Can they do more . Libyan production is back at a recent high again. To bring them in line, that will be a challenge. Opec not having the influence on the market they would have hoped to have. Then we talk about compliance. Compliance has always been a big question mark when it comes to russia. Do you think compliance will stay as high as it is now, currently at 95 . Over the course of this year you will see decent compliance. We think compliance will slip early next year. Thats the challenge. The longer prices are down here, the more risk you will see, companies trying to maximize production to lower costs. Colin, can we talk about the wider commodity sector and where we are in the cycle . I heard from many guests, were simply no longer in this commodity super cycle. Thats a thing of the past. Given that the reflation trade has lost steam, what does that mean for commodities . Many things have been helping commodities in the early part of the year are eroding. Industrial production global i were is still good, but adding less impetus. The hopes for a healthy reflation are gone. If you add to that, china is tightening. For exposed commodities, that will be a challenge. We do see pressure in Commodity Markets plus we have a supply response to the pricing we had last year. As we traded at cost curves, we have had that supply response. As we turn more defensive in the Commodity Markets, what do we buy . Is there any buying opportunity . Precious metals tend to do welt. T well. Given where oil is, disinflation is a worry. We look for raw material constraints. We think zinc has been indiscriminately sold off in the past. We would avoid chinas exposures, so iron ore we see to the down side. So it might be a good month or couple months for gold. Colin hamilton, head of Commodities Research from ma macquarie. We bring you the latest comments from Vladimir Putin after this short break. Well hear from the russian president later today live from the st. Petersburg Economic Forum where russian president Vladimir Putin will take the stages with nbcs megyn kelly and Narendra Modi. Orporate spy. Unsecured printing makes your network vulnerable. Enterprise printers by hp help prevent costly Security Breaches that can compromise your network and reputation. So im stuck spying the Old Fashioned way. Hey. Im not spying. Secure printing by hp. I. T. Orchestration by cdw. Welcome back. Just to remind you one more time in case you didnt know, indian Prime Minister Narendra Modi is taking center stage next to russian president Vladimir Putin in st. Petersburg today in a key moment for relations between the two nations. Geoff is in st. Petersburg with one of modis top advisers. Take it away. Absolutely. Thank you very much indeed for that. Let me introduce the joint secretary for economic diplomacy at the Indian Ministry of external affairs. Thank you for being with us here. Let me start by asking you what you think the benefit of putting Prime Minister modi on the same platform as president putin is at this stage. I think one this year happens to be the 70th year of diplomatic relations between india and russia. Russia has been an old friend for india. Our relationships have always been close. This is a jgesture, its a summt level meeting. Its happening at an opportune time. Does it mean a deepening of business ties between the two countries . What beyond Defense Technology do you and the russians trade in . The whole purpose of this visit over the last few years in india has been participating. It has been to diversify engagement. We would like it to happen at a different level. Thats the reason why every year for the last three years we have seen increased indian participation to diversify this relationship and see more of Indian Private Sector Companies participating in the Economic Opportunities in russia. At the same time india offers a gamut of opportunities for russian engineering companies, Russian Companies in the ecommerce segment or in the tech segment. A lot of Russian Companies today operate out of singapore. They are investing in india that the startup zones. We feel this is a great opportunity for russian engineers to look at india as a market. The market is growing at a fast pace. We are the worlds Fastest Growing economy, clocking over 7 growth. We seem to be returning to a bipolar world where people think in geopolitical terms. Russia is still a party to sank sh sanctions from the United States and the European Union. Does the fact youre getting closer to russia mean youre getting further away from the United States and europe on mutual policy issues . I dont think so. I think all anything thats are engaging with each other. Were finding opportunities where we could engage with russia. We have been engaging with russia for a long time, particularly in the energy area. We already made investment in it last year. So i think it is we shouldnt be seeing this as, you know, a zero sum game. I think a lot of opportunities for countries to still work out and find business opportunities. We know that russia after sanctions were imposed had this tilt east, but that was largely focusing on china. Does the fact that you and the Prime Minister are here suggested that you would like to push china out of its key position in that relationship and maybe take more of that trade yourselves . Not at all. International relationship is engaging in International Relations is not a zero sum game. At the same time weve been engaging with russia for a long time, just as china has been engaging with russia. We dont see in bracketing any of these engagements. I think everybody is seeing an opportunity, particularly when we were with the Global Economy seeing a downturn. Its useful to see from where can we see new sprouts of growth opportunities. India, of course, has been a beacon of growth in some of the weaker Global Growth contexts. Some of the resent numbers have looked less certain. Does this suggest that the made in india phenomenon, the bandwagon of growth and reform that mr. Modi brought to the table is starting to slow and flag . Not necessarily. Weve, even today with the new numbers in place, weve still attained 2016 17 Growth Numbers of 7. 1 growth. We are still one of the worlds Fastest Growing economies. We did have the demonetization, but we anticipated that the economy will slow down. That has slow down for only a quarter or two. Its just that people have postponed their purchases. We feel well get back to the order of growth soon. The last three years has been phenomenal in terms of Economic Reforms that we announced. And that has been recognized globally. The baseline profitability index, india ranks number one in 109 countries. The world Economic Forum has upgraded us twice. Today we are the worlds 35th most competitive nation in the world. So we are moving very fast on a number of areas. The government is cognizant of this fact. And we will see more reforms going forward. It is going to be a game changer. We anticipate that the implementation itself will add 2 Percentage Points to the gdp. This should give a lot of International Investors an opportunity to look at india even more seriously than theyve go done in the last three years. Thank you very much for being here. Ill wrap it up for the moment on that. Ill send it back to you. Were waiting here for the big planary session with mr. Putin, and Prime Minister modi. Well be back live with that from st. Petersburg. What impact is political turmoil in the u. S. Having on the domestic economy, if any . Well get an indication today when the latest nonfarm payroll report is published at 2 30 p. M. The forecast is for the u. S. Economy to have added 184,000 jobs in may, down from t ththe 211,000 posted in april. You have a bullish forecast of 210,000. Is that because of the adp story yesterday . Thats not the big driver. The pig dribig driver is weve g indications of hiring and low indications of firing. Jobless claims are at the lowest theyve been since 1948. The labor market is tight. Nobody wants to fire anybody. Everybody wants to hire. The trend is above 200,000. In your note you say there could be quirks when it comes to the wage number, we expect a print of 0. 2 . If its that, is that enough for the fed to tighten more in the month of june . Theyll tighten in june almost no matter what. The question is what happens to wages over the next few months. The monthly data is super volatile. Theres all kinds of disfor shun distorti distortions. We have ever tightening indicators, nifb screaming that companies cant find the people they want to hire. Its more about what happens over the next 6 to 12 month also be driven by the wage numbers rather than the june meeting. The june meeting is a done deal. What i care about is what were looking at wage numbers getting into the fall and winter of this year. Then the pressure is building to the upside. That will force the fed to think about inflation in 2018 and how they deal with that with mon Monetary Policy going forward. Im with the fed guys who are saying another two, three hikes this year and more to come next year. Very briefly, only a couple seconds left. Im looking at the most recent auto numbers, auto sales dropping for the third month in a row. How strong is the u. S. Consumer really . Pretty good. The new car Sales Numbers are misleading. Whats happening is people are switching to guy bbuying used c. Total car sales are up strongly. The makers and dealers of used cnew cars are suffering. Want to bring you the latest comments from Angela Merkel, she is speaking and saying trumps decision to withdraw from the paris climate deal is extremely regrettable. She says the paris climate agreement remains a cornerstone of International Efforts to fight Global Warming and that the u. S. Decision wont stop us from continuing efforts to protect the environment. She adds we need the paris climate deal to protect creation and we will realize our responsibilities. She will put them in practice, thats what she says. Thats Angela Merkel speaking in europe. All right. Thats it for today. Im carolin roth. Worldwide exchange is up next. Hope everyone has a wonderful weekend. With type 2 diabetes a lower a1c is a lot about choices. But it can be hard sometimes, cause different sides of you struggle with which ones to make. Well, what if you kept making good ones . Then . You could love your numbers. 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