a very good morning to you. >> these are your headlines from around the world. >> european stocks failed after the u.s. closes november in the green lead by small caps. >> the euro holding around the 106 level against the dollar as french german manufacturing data meet expectations while the german jobless rate falls. >> a leave after the bank of england eases capitol pressure on lenders and the governor says they're significantly more

resilient. >> this is a turning point. president obama prepares to hold a news conference as he and xi jinping take the lead on the first day of talks. also coming up on the program change at the top. the ceo is stepping down in a surprise prove citing set backs over recent months. also taking flight, the plane powered by only the sun raises enough cash to get airborne. we'll be speaking to the pilot and to infinity and beyond. we're live from a launch pad to find out how one satellite is hoping to make a big scientific break through.

>> so welcome to the show. euro zone pmi data breaking now. it's come in at 52.8 for november. that's in line with the forecast of 53.8. slightly higher than october reading. we had the individual countries coming out in the last half an hour or so. let's break down how we ended up in line for the euro zone as a whole france was in line and germany was a small beat. rallying off the back of this. we're up .5% today. >> maybe also profit taking in the u.s. dollar. >> german jobless rate falling to the lowest level on record. the unemployment rate falling to 6.3% in the month of november. that is once again the lowest level since the country's reunification back in 1990 according to the federal labor office. the seasonally adjusted

unemployment total fell from 13,000 to 2.772 million. >> that final leg up as well this mornings trade. more relating to the jobless than the pmi we've got a little bit of profit taking as well. joining us is the chief global equity strategist at city investment. good morning to you. too much priced in already to the euro dollar. are we going to see a bit of a bounce? is the risk here that the euro has already gone too far too quickly? >> obviously it's the big focus of this week. what the ecb are going to do. we have to put that in the context of the fed hiking later in the month. everybody is pretty lined up to be short the euro relative to

the dollar through september. there may be hiccups along the way i suspect. >> is there signs for optimism? pmi today and other data in recent weeks. are things improving even without further stimulus? >> there's evidence that super cheap money is working. it's tiny baby steps but the data is improving. our economists are relatively optimistic in the context of europe about what the economy is doing at the moment. >> you're expecting more from the ecb, i assume, negative deposit rate? >> that will be a weird one to get our heads around. perhaps moving two negative rates, further qe policies and so on. you have to see this in the context of the ecb is focussing on inflation at the moment. you can get slightly stronger day.

>> we're expecting further strength in the dollar and euro but people have got ahead of themselves a bit. >> what does it mean for european equities? when we saw the first big unveil of qe we saw an incredible rally for european equities. can that be repeated this time around? >> it's a phase in this shift. weaker euro helps european equity market. we might expect to see the next phase kicking in as we speak right now and into next year. >> but it might not be as strong. >> it would be hard to see such a strong start out of the traps next year as this year. >> we'll talk more about the markets. so stick around. we'll go to break here but coming up next i want to remind you to head to our website cnbc.com to find out how softer manufacturing data and stronger auto sales could paint a mixed picture. find that preview on our website.

>> reached some key deals to tackle climate change. headline agreements include a plan by india and france to make solar energy more affordable in developing nations. 20 countries including the u.s., china and india vowed to double their $10 billion spending toward renewable energy. >> they'll commit $5 billion over the next five years to help reduce deforestations while they unveiled a plan to cut greib house gas emissions and more than 30 countries lead by sweden and new zealand called for an end to fossil fuel subsidies. so some of the headlines in the crucial meeting at cop-21. nothing truly ground breaking yet you might say though. let's get out to steve for what he has learned so far in paris,

steve. >> let me just tell you stuff going on as we speak. i have just come out of one meeting where prince charles is speaking. he is talking about deforestation in brazil so interesting people from royalty to key u.s. politicians to business men convening here on paris to add in on the climate debate as well. a lot of money has been coming forward for various initiatives but concerns about how we make that transition as well and there's a lot of states here that have an interest in keeping fossil fuels as a lower part of a future energy mix if there is a agreement here in paris. one of those countries is norway. as we all know it's the third largest gas producer in the

world. has a huge amount of coal reserves as well and built up a $900 billion sovereign wealth fund. how do they manage to transition? and is there a question about stranded assets as mark carney talked about in the last month as well that you won't have recoverable assets as well. >> and maybe too difficult to do but still there will be a need for it and i think it will be long-term. in the future we will have to have a little bit less of our economy linked to oil and gas and different new areas because that's more sustainable for the

futu future. >> if we did go to an environment with less fossil fuels and got to a 2% increase in temperatures we're talking about $34 trillion at risk of revenues for hydrocarbon producers. 5.5 trillion in the gas industry and 5.8 in the coal industry. well people would say that would then go into cleaner tech and renewables as well. how optimistic are people around here? i would suggest on days one and two fairly optimistic. all the leaders rolled in yesterday. some are still around today but also lots of celebrated geologists around.

and i asked whether he was optimistic this time around we would get a better deal for the planet. >> well, the statement made by the president of the united states is enormously heartening. it doesn't go as far as i might wish but shows that his heart is in the right place and he's putting muscle behind it so it's very encouraging. >> do you feel that given the fact that so many emerging nations are at an early stage of industrialization their need for fossil fuels and coals could be harming for the prospects of a good deal? >> no, their need for energy is what justifies the whole thing and what we're pointing out is that if we adopt the right sort of research policies we will be able to produce energy much cheaper than in that which comes from coal. so it will be to their advantage to use that instead of coal because it will be cheaper. they will want to do so because

it's cheaper. >> and what is the key to getting the right financing in place for all of that innovation and research and development that's needed? >> the key is solving a number of identifiable problems to do the gathering and transmission and finally the storage of energy. we know the basic signs but at the moment we haven't produced the answers which are economically cheaper than that involved in coal. so that's the point. >> and finally, there's a lot of skepticism on climate change and the man-made causes for this in the united states. republican candidates queuing up to disagree at this moment. what would you say to those that dispute the science in the u.s. and elsewhere? >> i would say why not trust the people that spent their lives and energies and science investigating this and look at the conclusions. it's not an easy subject. but some time or another you have to allow scientists that dead kated their minds to

thinking on these matters to have a say and when you do, the answer is clear. >> talking about his optimism for a deal there. he was saying why not trust the scientists? well we want to trust them of course but there has been some sketchy science over the year but 97% of scientists believe that something has to be done because this is man-made. i suppose we have to take them at their word. back to you. >> thank you. also on cnbc.com find out how some of the largest corporate sponsors are being bran dahlized on the streets of paris. head to our website for more on that story. u.k. banks are trading in the green after passing the bank of england stress test but rbs and standard chartered only improve after passing the stress test. bank of england relieved some

capital pressure following years of stricter rules. this also helping to boost the bank shares today. governor mark carney said there will be none because they're more resilient now. >> let's take a look at this tuesday session in european markets as we head into the ecb meeting this week. a mixed trading picture after two straight months of gains for all three major benchmarks in the u.s. we'll be right back folks. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business...

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>> let's check in on what it means for today's trade in asia. >> it's interesting, isn't it? the main dp land chinese equities took these numbers in their stride but i'll say this about both the data sets. the private forecasters number and the official number. they are both in my mind consistent with persistent inflationary drag and one that warrants a bold policy response. elsewhere we are seeing a strong risk on rally and that's been

predicated on expectations of more ecb easing so all eyes on thursday. in my opinion, this move higher today is overdone. can we really say with some certainty that even if the ecb does ease and ease aggressively on thursday that cheaper liquidity in europe is going to stay in europe or is it going to come over here? the markets seem to be banking on the latter. that it will be deployed over here. i don't think so. i think it's going to stay in europe and be deployed in europe. we'll see whether there's any profit taking of these higher levels or not. that's where we stand. back to you. >> thank you for that. the owner of manchester city football club and others around the world. it brings the cfg group's valuation to the $3 million mark. it will be used to tap into the

potential that exists in china and this is massive news. also a very surprise for the football community. the parented club is expanding around the world as well with teams in new york australia and japan. it's a surprise and big evaluation and puts even more fire power in the hands of manchester city. >> i was looking at this and i was thinking manchester city because i'm not a football watcher. >> i'm glad you said football not watcher. first hour of the show. >> i was gauging your reaction to that. it's probably sacrrelig around the desk here. for some reason they like buying into manchester city, don't they? >> they went through a couple of transitions but now very much solidly owned and they're seen as one of the richest clubs because of that but to have

chinese backing as well is extreme and it points to the extraordinary cash promotion ability of the english premiere league. there's other plans to expand and they want to expand and own a stake in a club in china it sounds like but $3 billion valuation for the whole group isn't that high when you think of the number of fans around the world and the generation it is. but it's hard to value these clubs because they aren't really comparable. >> but 400 million for that 13% stake. you said that was a little bit too expensive. so does that logic of bubbles, does that really apply to the football world? >> it's a fear. i'm not saying necessarily it's expensive it's hard to workout the true valuation of the clubs. manchester united is only listed on the new york stock exchange. it's hard to say but it's big news and a surprise. >> let's move on and take a look at today's biggest movers. shares lower after hitting a two

month low after cutting it's profit guidance on industrial production. it expects to be down from 4.5 to $4.7 billion euros. climbing to the stop of the stoxx 600 after it reports the home based unit could be up for sale. he has been linked to private equity groups regarding the possible sale of home base. heading for the best day since 2013 up by almost 8%. a slightly different story for the french state holding company or the french air defense company safran. down by 2.26%. that's after ape sold it's 2.6% stake in the defense firm for more than 750 million euros. following the sale france will remain safran's largest shareholder and zurich insurance not doing much this morning.

only off by 0.4%. the ceo is stepping down from the swiss insurer with the chairman taking temporary charge with immediate effect. the move comes less than three months after zurich failed in it's attempts to take over it's u.k. rival rsa. now he admitted set backs in recent months but was convinced he put in place the right measures for the company to succeed in the future. let's talk more about this. joining us is the executive director. thank you for speaking to us this morning. look, what was the breaking point for him? was it the weakness in the general insurance business or the fact that they have to walk away from the rsa bid? >> it's been an accumulation of factors. there's been a general sense that this group has not been fulfilling it's full potential and as you say, i think things came to a head at 3-q.

issued a profit warning and also the need to strengthen reserves in it's insurance business and that was the final straw. >> the share man and ceo saying the profile needed for the new ceo is someone with a entrepreneurial spirit. a leader with a deep knowledge of the insurance industry. what do you think they mean by that? do they want someone that's more engaging on the m&a front? >> no, personally i think to start with they need to complete it's own in house tidying up. the group identified at 3-q it had 15 underwriting portfolios that generates $1.4 billion in losses. so i think there's maybe a need to take a deeper look at the existing portfolio distances to continue with the refocussing of the group before i think, you know, investors will be

comfortable with zurich looking to expand further. >> an analyst says there's going to be a rebasing of the dividend and it's been a focus for more insurance investors. now saying this morning there's not going to be any change in the dividend policy going forward. which camp are you in? >> i'm in that for the short-term that camp. but no change for the dividend. i mean it's a key attraction as you say. the debate is the preference of bringing an external candidate in. the pay out ratio is high both against earnings and cash but short-term i think the swiss frank remains and investors are expecting that and they'll look to deploy excess capital next year. >> thank you for your time. appreciate it. executive director of 12 capital. >> getting back to the market.

there's a question about how much and how quickly i guess normalization interest rates will go for the federal reserve. goldman sack's top economist says the fed will take a slow approach when it comes to raising rates. telling cnbc he expects the central bank to hike once a quarter next year as not to upset major asset markets such as housing and bonds. >> i don't think there's a commitment there to do anything other than do what seems to be the right thing given the economy. that's one point. the other point i think is that going half as quickly seems garage you. >> domestic demand and consumer spending the main drivers in the u.s. economy into next year, 2016 and also expects easing from the ecb this weekend and there he says will be further diver jens between the u.s. rates and the eu economy in the coming weeks. >> let's bring in the chief

equity strategist. that's the expectation. this divergence in policy around the world. 72% probability the fed will go this month. >> we're expecting the same as you just mentioned a split in policy this month between what the fed is doing and the ecb is doi doing. >> i think we're overweight relative to the u.s. because this is happening. it's important to emphasize to the people watching the show you need to hedge the currency to make sure that you don't lose money. we have a little bit more of a defensive tilt in the u.s. >> what about political risk in europe. the last couple of months seems to have gone away a little bit.

is that going to come back with a bit of a vengeance early next year? >> i think the european fractures go away and then every nine to 12 months they come back again. i would say to people we tend to worry about three things. the fed hiking what's going on in em and the fractures in europe. >> what's the play here? >> what a lot of people are worried about is that it's just another reason to underweigh emerging markets that the fed is hiking. there's a traditional thought that higher interest rates.

>> if you're an investor it would be hard not to be overweight right now. >> they're also not a value for u.s. equities either traditionally. >> not necessarily. what we found is these analysis of what you do when the fed hikes are not so applicable this time. the really important point to emphasize to you is typically the fed hikes two years into the cycle. it's hiking six or seven years into this cycle. >> this time is different. >> definitely. >> thank you so much. >> going to break here but still to come on the program. dealing in cars. could nissan be set to up it's stake in it's french partner renault? that story coming your way next.

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the u.s. closes november in the green lead by small caps. >> the euro holding around the 106 level against the dollar as french and german manufacturing data meet expectation while the german jobless rate falls to a record low for the month of november. >> the bank of england eases capital pressure on lenders and governor mark carney says they're more resilient. >> the ceo of zurich insurance

stepping down after set backs in recent months. >> right, sterling has slipped a little bit in the last minute after u.k. manufacturing pmi for november came in at 52.7. it had been forecast at 53.9. and in october it was up at 55.2. so we have come in noticeably below expectations. sterling, in fact, up today by a quarter of a percent but slipped fractionally in the last couple of minutes. that's optimistic of me to bring that in. but that reading coming in below expectation at 52.7. still in expansion territory. >> staying in the u.k., rbs and standard chartered are bottom of the class after missing goals in the latest stress test but they took steps to boost capital

ratios. at the top were other major banks including barclays and lloyds. meanwhile the bank of england relieved some capital measure on banks following years of stricter rules. governor mark carney said none because the the banks were significantly more resilient. meantime, the american exit jp morgan banker takes the helm at barclays today. he replaces anthony jenkins ousted this summer. the focus is shifted back toward the investment division. >> let's talk more about the outlook for u.k. banks. the global head of financial research joins us now. what do you make of the results of the stress test. i have a sense that this is more about increased clarity about what the regulatory hurdles will be other than the fact that they actually pass the stress test.

what do you think? >> obviously there was much suspense or fear that any bank would fail this first test. you pointed to it being tighter but this is based on the 2014 capital ratios. and a lot of equity. and you have some issues and the u.k. bank stocks today it really reacts to a slightly to more clarity, more certainty and slightly more dovish tone in the bank of england. without getting too technical the point here was there is a fear that bank of england will

keep layering new capitol requirements in the form of inflation and assets and seems to be growing recognition that this will not be the case necessarily. i have so many twists and turns in that before and this is quite encouraging. >> morgan lending is actually picking up pace quite dramatically. how far away are the u.k. banks from being the frothey part of the lending market once again? is it getting excessive? >> i don't think we can call it exce excessive there's an agenda since we all started to see more bullish activity but roughly speaking i can't recall anywhere close to a credit bubble in u.k.

banks. so it's only healthy that you're starting to see a bit but there's nothing here that looks particularly bubbly to me and actually the stress this year was quite rightly focussing on other parts of the world like emerging markets where we're seeing some type of stress. >> you mentioned emerging market expose sure. and then you also have the investment banking type name of barclays and then the more u.k. retail banking focus. which of those three pockets is most attractive at the moment. >> depends if you want to play offense or defense. if you want to go for something like lloyds as a u.k. commercial bank with good potential for

distribution. and standard chartered at the more stressed end of the spectrum. and it's in a part of the world that's under quite a lot of pressure. so the levels of multiples are quite different. myself, right now, i'm quite long the u.k. domestic banks and mostly invest in capital structures and names like lloyds and nationwide which i think are pure plays on the u.k. economy and reasonably constructive on the prospects for that and also they're easier stories, fewer moving parts. >> and just quickly on barclays, with it's investment banking exposure and of course appointing a new ceo likely to want to focus on that area once again, is its plausible that

barclays will ever compete with the big u.s. investment banks? >> i hope not. i think it means that we're merging to the days of bob dimon and expansion in investment banking as the agenda. it's actually, as i'm sure you know, the starting point for european investment banks is very different. so we're starting around 100 meters but they're 20 meters behind. so it will be hard to catch up. i do think there will be a long-term commitment to investment banking but also committed to a deleveraging plan. the need to build up capital in the next few years although they have done well in the stress test, their starting point on capital is not the strongest in the industry. so i don't think it will be a

message in part here at barclays from the current strategy. it will be more acceleration. >> thank you very much for joining us this morning. a pleasure as always. global head of financial research at pimco. >> let's talk about banks across the bond. cuts across the board and on each of the banks trading desk reports say that london is expected to bear the brunt of its more than new york. morgan stanley with a 42% drop in fixed income and commodity trading revenue in the third quarter. checking in on those listed shares we're up going in the opposite direction out performing up by 1.5%. also we have auto makers, right? >> we do. they're reporting their november u.s. sales today. sales forecasted to top pace of 18 million for the third straight month which would be the third time that's ever happened. sales were boosted by an early

launch of promotions as well as lower u.s. gas prices which are near or pedestrians low $2 a gallon. >> and we'll be focussing in on nissan and how it's performing after a report today suggesting that nissan might be issuing new shares but insisting it has no plans to do just that. it will water down it's stake in renault and they're denying that newspaper report. we're joined from tokyo. >> yes. nissan is mulling action to ward off news by the french government who is aiming to grab more influence over renault. it will allow long-term shareholders of french companies to double their voting right. the french government is the top shareholder and the japanese auto maker is concerned that the new law will increase influence over the auto maker.

if it gains more say it could pile on pressure to create more jobs within the country. nikkei reported they were thinking of several ways to avoid that from happening. one by raising it's stake and gaining voting rights that it currently doesn't have. another option would be new stock to water down renaults 43% stake in nissan but would also lose a dependable partner. media reports say that the firm's spokesman denied any plans to issue new stocks for now. the renault-nissan alliance is a rare success story and they expressed hopes that the alliance will continue to be independent and productive as it has been. that's all. back to you. >> thank you very much for that. now u.k. prime minister david cameron has announced the house of commons will vote on whether to back air strikes against isis

in syria on wednesday. jeremy corbin announced he will not force his mps his view that strikes are the wrong way to deal with it. he'll vote on joining strikes on wednesday as we just said. >> i believe there's growing support across parliament for the compelling case to answer the call from our allies. to act against isil in syria and iraq. the headquaters of the terrorists is in syria and it makes no sense to recognize this border in the action we take when isil themselves don't recognize this border. so it's in the national spres. it's the right thing to do. we'll be acting with our allies and careful and responsible as we do so but in my view it's right to do this to help to keep our country safe. >> so this vote coming on wednesday, tomorrow, and i think it's likely to get passed. i don't think david cameron

would go ahead with the vote if he thought it wouldn't pass. but he outlined some very convincing arguments. he has a lot of heat for his position but he does make a lot of fair points and even if you disagree with him it's a great thing for democracy that he has a prominent place at the molt because his voice is being heard and his arguments are being considered and probably really fast nating to see how the vote goes. not just in terms of the way the u.k. goes for its foreign policy but how the labor party votes itself and what it means for his leadership going forward. >> but still he capitulated now and that opens the way for the positive vote which we didn't see two years ago. this is sad. had this happened two years ago wouldn't have the advance of isis have been able to stopped a lot better. they could have stopped it in their tracks. >> comparisons between the two votes are very basic. simply that that was action against assad. it wasn't action against isis

back in 2013. so it was a different set of circumstances and i think the reason why you haven't seen the conservative party, david cameron is probably making a clearer attack on labor for having opposed the vote. they didn't want to attack assad who now they have to join forces with. there's a lot of underlying provocations here. but one of the points that jeremy corbin makes is already there's huge numbers of air strikes taking place in syria, including from the u.s. air force which let's face it the u.s. air force is as good as any air force around the world. just because our planes are one of the many flying over there will it make britain immediately safer? probably not. >> we need better coordination because we have so many in the game at the moment and the germans are coming in. they're sending in 1,200 soldiers. they're sending back up and this

is quite a big step for germany because they're one of the least militaristic countries within the euro zone. they'll still have to ratify this but this is a major turn around for germany which has taken a step back in previous conflicts. >> well, syria is actually still taking the front pages. i would say the front part of the debate at cop-21. people have to talk about security and to some of the i guess the quotes from president obama is he is still concerned that maybe russia isn't focussing their air strikes on isis which they should be at this point. >> very true. >> and that's always going to be tough for western powers to trust the rhetoric coming out of putin. more of that and more of cop-21 of course coming up after the break. also still to come, not quite the month of returns that david

einhorn had been hoping for. find out when went wrong for the boss of greenlight capital and why his bets aren't paying off. that's coming up next on worldwide exchange.

david einhorn's bad year just got worse. that puts the fund down more than 20% for the year in comparison, the s&p 500 is up about 1% this year. this likely ensures 2015 will be only the second negative year since he launched his firm in 1996. green lights returns have been hurt by bets on solar company sunedison and memory chip maker micron. we're heading out now with steve in paris and energy companies like this, green energy companies like this obviously not performing well. >> yeah. absolutely wilf. i think the point is made there very graphically. we're still at the front here on renewable energies and trying to workout a commoditized price with companies could make money and use solar and other renewables and basically not cost them the earth compared with hydrocarbons as well.

this is someone i have interviewed before who is a pilot of solar impulse two and his colleague is also a pilot as well. but you get the business man and energy ne engineer title. you're flying this amazing plane with a wingspan wider than a 747. breaking all kind of global records but you had to haultd your expedition already this year. why don't you start off. you were flying the plane to hawaii from japan but you had a few problems. >> this was the most important flight. we flew five days, five nights. could it continue one week, one month? this with solar energy. so to make it feasible it is extremely energy efficient. but hi to combine the test flight and mission flight out of japan and forced too much on the

batteries. it was not designed for that but we replace them and continue next year. >> it's a great example how you're pushing the boundaries of science but it's very expensive to do so. it's cost around 170 million euros. is that money well spent in pushing the frontiers of solar energy and solar exploration? >> well, if you ask all the people that provided that money, all of our partners they are absolutely happy and fulfilled. because it's money coming from the marketing department that goes into scientific research and development. paying salaries for engineers and promoting cleaner solutions for the future. and -- >> but is it a viable product that the world can use? it's an amazing expedition and when you finish it it's going to be extraordinary but is that going to push the frontiers so the rest of us can use solar

power more effectively? >> the goal is not only to use it more but to save energy by being more energy efficient and this is the type of technologies we have. electrical motors, structures, new batteries, led lamps, all the new system for management of electricity. all of this to be implemented in our daily life to replace the old systems. can you imagine, everything we use today for energy is 100 years old. it's old light bulbs, badly insulated houses, thermo engineers. we have 97% efficiency. so it's more the way to show that if we want a cleaner world and if we want to solve climate change and this is why we're here, it will be done only by having these new technology which is are profitable, create jobs, make new industrial markets and at the same time reduce emissions. >> the goal of this company is not to create a new aviation

industry. we come from different fields. the goal is to deliver products which use less energy which are more energy efficient. we use them and sell them to the customers. >> you're a business man as well and the whole point is to attract the kind of investment globally from public and private sources but you'll only track that money if you can prove it's profitable over a period of time. there will be a lot of blind allies on those and appear to be all right. >> there are many that are profitable. today if you insulate or better insulate your home you'll save so much energy that the pay back is only a few years. of course we need to see how to finance that that it's profitab profitable. >> in the cost you lose the money and in investments you gain the money. this is the shift they have to make in their mind when they

think about clean technology. it's not just producing more energy because it's not just profitable. it's about saving energy and opening new industrial market and this is a way to make money. >> i have to leave it here but have like 10 seconds left. if there are so many profitable green energy technologies without there, why do we need cop-21? >> because it's difficult to make change. we have seen that we needed an outcider to make better electric cars. we need to push it forward and ensure that it's feasible and possible. in our project that's the main purpose. and we need a legal frame. there are legal frame works and we also have to push people to save energy and use the new technology. >> been fantastic seeing you. take off again march, april, weather permitting.

they'll go from hawaii to the west coast of the united states to new york and then on to europe to finish off the around the world trip. back to you guys. >> thank you. please wish them the best of luck from us in the studio but we'll discuss this topic further. >> good morning to you. thank you for joining us. let's pick up on the final question. really and truly the free market at the moment doesn't support these types of green technologies. >> yes, it's clear that climate change is a market failure. market failures need governments to direct them which is why we're seen for seeing strong policy agreement coming out of cop-21. >> now, i mean, there's lots of issues that thr going to iron out but one of the once going into it is this two degree figure as a red line that we can't allow global average temperatures to go above.

is that a, sufficient? and b important? >> i think it's the scientific consensus. we have seen the smaller nations push for a 1.5 degrees and we also have others looking but there's a essentially 2 degrees is our upper limit that we want to stick to and that's what the agreement here is trying to achieve. >> stephanie, i wanted to get your opinion on the piece yesterday saying development nations need the opportunity like developed nations to use fossil fuels for economic development. does that sound fair to you? >> i think what's clear is that we as all nations within the world need to recognize that the risks of climate change are very substantial and they're going to impact all countries and so that end that is why we need to see the 2 degree deal and we have already seen in the run up to cop-21 the carbon pledges that the countries have made and i think there we're seeing each country recognizing for

themselves that they need to transition away from fossil fuels to lower carbon energy systems to lower carbon economy. >> the approach you have taken and many others have taken is a really interesting one. essentially what you're trying to do is call on the companies to improve their carbon footprint. does that work in practice? do they listen to you? >> they are listening to us but not just us. we're one of the voices which is also why it's so important. we're having good conversations with countries had they transitioned to a two degree future. >> do they out perform? because there's inconclusive research as to whether sustainable lead companies are out performing others. in this environment stock prices are driven by qe or monetary

policy. not necessarily by what a company's carbon footprint is. >> we're long-term investors and we're clear that those companies that aren't managing to tackle the broader sustainability challenges are not going to be the winners of the future so we're keen to push that on the companies that we're invested in. >> thank you so much. >> okay we're going to go to break. it's the case of the hare and the tortiose. why they will take the slow approach to raising rates.

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