hello and welcome to street signs. i'm live in davos and i'm nancy live in london. these are your headlines. >> triple digit losses for stocks in europe after asian markets fall to four year lows. credit suisse ceo gives his reaction to the volatility. >> europe is in the best position since 2010 and we actually have the same merging markets. >> drowning in oversupply. wti breaks below $20 barrel after a short lived rally as the

iea warns after a further price collapse. our guests tell us the price moves are creating victims. but of course every change today we're in the middle of supply. >> dutch shells more than 4% on the back of the sliding q 4 profit as it works to complete it's merger with bg. we speak to them on the show today to get their take. >> and cheryl sandberg tells cnbc during a debate in davos that we're in a period of rapid change in technology. >> every technology that's ever been invented caused great fears and the questions that davos is trying to answer this year is how scared should we be or how vocal should we be? >> welcome again to street signs live from the world economic

forum here in davos and the theme for 2016 is mastering the fourth industrial revolution. what does this mean for big business here? we've got start ups, disruptors, all represented. what can businesses do to foster innovation and embrace and adapt to change. of course policy makers as well here what do they need to do to foster innovation but also prepare for the spill over effects. some of the big key issues discussing what's going on in the oil markets. the uncertainty we see and the outlook for u.s. global growth and emerging market weakness. one of the topics to discuss over the last couple of hours. >> great to see you. big focus on innovation but definitely will not go unnoticed. this incredible market volatility we have seen and european markets back in the

red. you'll be getting reaction from your guests but there was a lot of hope when we saw a bounce in europe that we were seeing a relief rally but it was really short lived with the oil price getting below 20 dollars barrel there. we'll get to you in a minute. if we can give you a check up on european markets at this hour, off about 3% for the broader stoxx europe 600. no surprise the likes of basic resources, oil and gas sectors saw a bounce yesterday now leading the way south here in europe and again just a modest gain for the dow jones industrial average in the united states. this after a queue from the weakness in oil prices. if we can look at how markets are fairing one by one here across europe, the ftse 100 off by 3%. a similar story for the french cac 40 and ftse mib off 3% as well. a lot of weakness after a report earlier in the week that the ecb

was looking into non-performing loans so continuing to move to the downside there. let's get a check on how markets in asia are fairing. sri is in singapore with the latest. >> i hate to say i told you so but remember this time yesterday we saw this china lead rally. gdp met expectations and the markets were off to the races. that didn't last very long did it? that was a false dawn and indeed it was. what is disconcerting is that some major mature developed markets are behaving in a very volatile fashion. nikkei 225 is case and point. we're off by almost 4% at the settlement. now in baear market territory. the hang seng on the densi defe as well. all were down in the red.

750 point loss. we saw the hong kong dollar weaken toward it's lower bound and it was at its lowest since 2007. so there were concerns here about capital outflows and the response from the authorities as well, are the hong kong banks going to have to raise rates to get money back into the territory. this was interesting. relatively well behaved. sentiment remains shot to pieces out here. back to you. >> thank you so much, sri. the word you were throwing around there is policy. policy divergence is one of the key subjects that's already come up on squawk box europe this morning. listen in to what people are telling us so far today. >> business is totally going to be in the u.s. the u.s. economy although ups and downs every month we're looking at the numbers but it's

still the economy that is attracting a great deal of investment. >> you know, you mention the interest rate issue the fed was on a path to raise rates. where do you think they'll go in the last three months? the jury is out to see whether or not they'll stay in that strategy. >> i don't have a two tier world now. we'd like stronger growth but they're still growing where as the emerging world is in deep trouble. >> let's pick up this conversation with our first guest this morning. i'm joined by sir roger car, chairman of bae systems. good morning, i want to get your big picture view this morning. a lot of challenges be it china, oil, con sense in the markets. what's your overall view of where we stand? >> we started 2016 with a real sense of turbulence and all the reasons you said whether it's china, oil commodities, all of these things that disturbed the

markets and business people. there are some upsides that will come through from cheaper energy and once we see some of the positives i think things may stabilize a little but there's no doubt it's work to be done. >> how long until we see the positives? because as you point out, $2 trillion for producers to consume as there should be a greater sense of optimism surely. >> optimism will come through but we do see it against the backdrop of real material change in parts of the world which are going to continue for awhile and we can't be relaxed about that but i think business should harvest the opportunity and focus on the positive. >> when you're talking about real change, geopolitics is also one of the crucial factors we can talk about here. even just this year in the movements between saudi and iran it plays into what you're seeing in your business in particular with step up in defense budgets mt. u.s. and similar story in the u.k. too. reasons for optimism despite the

global concerns. >> in the sense that business is high on the agenda and defense is high on the agenda. i think a concern that it's for reasons that should worry is all. i mean, defense, whether it's terrorism or real fwrgeopolitic risk is something that none of us welcome and have to defend ourselves against but for the moment that means we're busy and likely busy for awhile. >> another focus on iran and bringing iran back from the cold but the saudis are the real focus if we're talking about the markets and the tensions and resolving the tensions in the region. some of the concerns from analysts is what will this mean for orders from the saudis going forward. are you concerned? they offer us a very important ally. therefore having them as a

customer they're a very important part of the business. we, i think, see them as a long-term customer. they have a strategic ambition to ensure that defenses are the strongest. and i think we're part of that ambition. >> and if they struggle to pay? they don have as much money as they used to have. they have been a very rich country. what we have to do is acknowledge that the financial picture may have changed while the demand hasn't. that may mean a difference in the way they pay rather than not buying the product. >> i want to ask you about a possible tie up. how open to that prospect would they be? >> there's always chatter in the city. that's what the city does. they're a very important part of

our supply chain. we want them to be a strong company and get through the period of difficulty quickly. they have a new management team to do that and we wish them well in that endeavor. >> they operate in different markets and there's part where is they overlap and as a supplier to us they're a key supplier but it's not an area we're examining in that sense. we're looking for them to become successful in their own right. >> thank you. >> the company should harness the oil prices. equity struggling there. as you can see european equities continuing to move sharply lower in line with the drop in crude and brent we've seen this morning. all major markets off in the neighborhood of 3% right now. the ftse mib off 3.6%. that's largely due to weakness

in the italian lenders there as well but across sectors we're seeing selling and what appears to have been a dead cap bounce after we saw some moves in europe to the upside but the tied is changing. you can see there basic resources off by 5%. being a gainer in yesterday's session so a lot of the trades being reversed. banks, insurance, oil and gas leading the way south there. we should mention that technology and utilities, one of the outperformers yesterday in the u.s. down 2.4%. get in touch with us throughout the show and let us know what you think about the coverage coming out of davos and debate on oil prices. whether this should be seen as a benefit. get in touch through our remail at street signs europe@cnbc.com. get in touch with me on twitter. you can follow our team on the ground, that's jeff cutmore and

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welcome back to davos. it's 1 billion bound uk on shore wind investment on ice. it's on hold until they decide whether subsidies will be available to support the scheme. i can tell you i'm joined by the to get more details on this. great to have you on peter. the u.k. energy secretary said they're trying to protect

consumers. the subsidies provided to the wind market, the power market ultimately come out in the fees and the costs that they pay anyway. so it doesn't workout as cheapest. what's your take? >> well, we have a limited amount to invest and we invested where we first of all have a stable frame work over a number of years because the pay back on the huge investments runs into multiple years and secondly we look at the returns. they're not excessive but it's not only our money. it's money not only from shareholders but other institutions, pension funds, foreign wealth funds and needs to be invested at a return and if that's not guaranteed we'll allocate the money somewhere else. there's markets in europe waiting for our investments. >> so if the u.k. government don't u-turn or give you greater clarity on investment s that it? done. >> it's not that we're invesing nothing in the u.k. there's a

preference to go offshore and we're continuing with large offshore investments and we're going to do so. but we're not there to make the policy decisions. that's what the u.k. government is about. we're there to follow the policy and very clearly this morning directors in offshore. >> you're in a process of restructu restructuring. you said it would triple. can you give us any clarity on that? >> we go step by step. grip by grip they call it. the first capital increase is going to come through with the ipo. we'll demonstrate that we can invest that in a sound and returning way. if we have confirmed that then we have the right and we'll come back to the market in further years. i would say the sky is unlimited but unlimited by our ability to find good returning investment

competitions for that. >> it's exciting and investors actually welcomed the new direction of the company but it is still such a small fraction and for the legacy business it's still a drag, isn't it? >> well, the point is that we saw in the past a couple of renewable activities go into the capital market. what is new about our concept is its not only renewables. what we're seeing in this industry going through the transition from investment solely in the renewables in a total system approach. it needs the stability and energy of the company. only if you can put that hand in hand in a systematic approach you have a successful recipe for the future. so it's much broader and much bigger. it's not really a fractional report. this company is going to be a 40 billion euro turnover company with more than 40,000 employees so a very relevant player with no conventional generation and really forward strategy.

>> it sounds certainly more positive than the last couple of years that i have been there speaking to you certainly. i want to take you off topic and talk about something more sensitive for europe. that's the migrant crisis. tensions politically for angela merkel. do you support her policy? this open door policy for migrants or do you think she needs greater back up on the european front? >> there's no real alternative to what she is doing. people might like something different but it doesn't work. closing borders means that a company like germany in the middle of business traffic going through that will fend itself off. that's not going to work. it might even jeopardize all of europe and i think her way is the right one but difficult one. that's what they're for. i do think the european approach is the right one. you need to either stop or channel or organize the migrant

streams and not hand them over as unwanted citizens and the european union needs to get their act together to get this organized otherwise they'll be in jeopardy. >> obviously we heard from the outside of germany, criticisms of what she has done. i know that you said she had no choice at this point. but do you think this threatens her position as the chancellor of germany? do you think it could become a bigger problem? particularly with security issues like in paris? >> that might be wishful thinking. i don't think that's a realistic scenario. as a democratic leader it's always good to be criticized because it improves the quality of what you're doing. i don't think at the end of the day t will be something that jeopardizes her position. >> so nobody panic. peter, great to chat to you. nancy i'm going to hand back to you but i'll let you know we're going to be talking more about

the renewable sector wind power in particular with the ceo coming up on the show but for now over to you. >> great. looking forward to being back with you in just a few minutes. >> they're due to report full year results last month. anglo america agreed to sell it's coal line in australia. the asset has been bought and that sale has been on the cards for quite sometime though a price is not yet undisclosed. shares in the company are down nearly 80% in the past 12 months and as you can see there, taking a hit off about 6.3% on the session. and shares in royal dutch shell

taking a hit this morning as well after profits fell by 50% in the fourth quarter. the group says it sees full year core earnings between 10.4 and $10.4 billion below it's previous forecast. it also sees 10,000 staff cuts once the deal with rival b.g. group is concerned. they will vote on the buyout on january 27th. meanwhile bg itself is also trading in the red this morning despite getting it's own 2015 production targets. the group announced a $700 million impairment charge in the fourth quarter related to oil fields in the north sea. shareholders vote on january 28th and it reports full year results on february 5th. >> well, julia, it's been quite sometime. we have been waiting on the big oil majors to get going with earnings season to see what the toll will be due to the lower oil prices. shell taking some by surprise with the preliminary financial result but this 50% drop, up to

50% drop is a little bit belocon census among most analysts. however some analysts say they hold their buy rating because for one sake shell maintained it's guidance on capex plans and key here for the dividend. but a lot of uncertainty as we get closer to the voet coming up at the end of the month. shell hopes to complete that mega merger in the coming weeks. so a lot of anticipation. shell and bg both in the red. and decide whether they can justify the purchase price they pay for bg. the critical question is have they now stripped out enough cost. for all the $200 billion in capacity cuts in the last year i read that the 75 biggest oil companies are still going to spend $650 billion annually

locating and extracting fossil fuels. does that make sense in the new world where the saudis are not the balance in the oil pricing? it's going to trade like a commodity rather than a monopoly oil price. it's a question we'll be asking here certainly and i'll be posing the question to the ceo as well coming up on the show. >> all right. we look forward to that. still coming up here on street signs, hit music maker william also joining us live right after this short break and sve will be moderating a special cnbc panel coming up. that topic is a new climate for doing business and the guests, some big names among them. doug mcmillan and ceo of hsbc. stay tuned. that's coming up.

>> welcome to street signs. i'm julia live in davos. >> and i'm nancy in london. these are your headlines. >> the atmosphere of fear continues. triple digit losses for stocks in europe after asian markets fall to 4 year lows. japan entering a bear market as u.s. treasury yields drop. b aerks chairman gives me his reaction to the volatility. >> there's china oil commodities. all of these things disturbed the markets and clearly disturbed business people. there are some upsides that will come through from cheaper energy and once we see some of the positives i think things may stabilize. >> drowning in oversupply. wti breaks below $28 barrel after short lived rally as the iea warns of a further price collapse. our guests tell us the price moves are creating victims. >> there's a lot of hidden pluses of the low oil prices but

of course every change is having it's victims and today we're in the middle of sy supply shock in the oil markets. >> royal dutch shares fall more than 4% on the back of a sliding q-4 profit as it works to complete it's merger with bg. we speak to the ceo of energy giants on this show. >> she tells cnbc we're in a period of rapid change in technology. >> every technology ever invented caused great fears and i think the questions that davos is trying to answer this year is how scared or hopeful should we be? >> we're seeing another global sell off here and u.s. markets set to call to open lower. the dow jones now lower by 350

points. the nasdaq off about 89 points. ended in negative territory yesterday and a modest bounce for the dow jones despite stronger moves to the upside during the session. but equities continue to take their cue from the continued drop in oil prices we're seeing. let's see how oil markets are fairing. off 2.7%. xetra dax off 3% along with the french cac 40 and similar story for the ftse mib. >> let's look at oil prices. brent crude down below 3%. wti crude also below $28 barrel hitting the lowest level since 2003 yesterday so investors, analysts, ceo wondering how low this oil price can go. well, coming up steve is moderating a special cnbc panel and the topic is a new climate more doing business.

well the guests include walmart ceo doug mcmillan and ceo of hsbc. stay tuned for that, you won't want to miss it. meanwhile geo political tensions and global economic woes are still the biggest headaches for the ceos. that's the headline for the latest survey. the annual report reveals just 27% of business leaders are confident that global economic growth will improve. well, steve spoke first to the chairman and asked him why business confidence was down in the u.s. in particular. >> it's a combination of factors. it's the global economy number one. we all know how integrated the economy really is. not looking good is the way i would put it but the second issue that's top of mind for ceos is the geo political environment. if you go back several years agatha issue was never even mentioned before and today it's a number one concern or the number two concern expressed by

ceos today whether it's the middle east, other parts of the world. a lot of uncertainty causing concern. >> that's really interesting. why would geo politics hurt the psyche of an american ceo. when you have more energy being produced than ever before. >> it's how integrated this economy really is. it creates instability and business leaders hate instability. they want that stable. they want to be able to plan. they want to be able to look. make investments and this is just one more of those clouds if you will that's out there that creates uncertainty. >> because i would not expect to see anything other than misery among the energy ceos but is that coming through? is it coming through to the rest of the economy starting at the energy sector? >> absolutely. comes all the way through. you know, you look at whether it's energy or whether it's china, the results that just

came out today. you look at the ceo political issues that i just mentioned. you look at the technology revolution that's going on. the theme of this conference and you put all of those factors together, more uncertainty today than in a long time. >> what about the china situation. do you fear that's going to be the big factor? even more so in 2016? >> i don't think so. i think for those that have been following china for a number of years if you thought china was a hot market 12 months ago what's fundamentally changed? this economy is going through massive transformation. never been done before. they're making progress and they're going to hit bumps in the road and that's what they're doing. they're hitting bumps in the road but if you believed in the long-term potential of the economy and you're willing to think about it from a long-term standpoint i think they'll come through it just fine. >> is there a feeling and worry about central bankers whether it be the chinese we talked about there and their reactions to the china stock market fall whether

it be over abe and japan or the europeans as well. is there a feeling that the policy makers cannot handle the pressure put on them and cannot react accordingly? >> when you look at the outlook some are saying gdp growth will be in the 1 to 2% range for the next year. that's not where any of us expected to be in 2016. 7 or 8 years from the financial crisis so that is a factor. you mentioned the interest rate issue. you know, the fed was on a path to raise rates. where do you think they're going to go in the next three months? the jury is out to see whether or not they'll stay with that strategy. so it is a legitimate issue. >> but if the fed's bluff is called and we don't get a march hike as well and it's called off already people are going to start to worry more aren't they? rather than less? >> that's one more big area that people got on the list of okay more uncertainly and it just doesn't bode well for the confidence levels that people want to see at this point in

time. >> you talked about here in davos. that increases anxiety of workers. does it increase anxiety of corporates as well? what may be a benefit, you could lose a lot of jobs. >> yeah but let's look at it in a positive way. i think this technology mega trend is going to create all kinds of opportunities and you're already starting to see it. it's transforming the way that business conducts itself. new business models. new products, new services. certainly going to require new skills and capabilities for the future but when you think about the positives or the upsides it has tremendous opportunity from that standpoint. >> i want to bring you some break dag at a on the u.s. employment picture and just hitting now the jobless claims for the month of december fell by 4,300 at 2.3% of the work force. now that was better than expected. we're looking at a forecast for

increase by 2,500 but when we look at wage growth here that came in slightly better than forecast but it was the slowest rate of wage growth since february although unemployment overall, the ilo falling to 4.1%. you can see there sterling moving lower against the dollar however we did see just briefly pairing losses after yesterday's session after sterling hit a 7 year low against the green back. this after bank of england governor mark carney warned over economic uncertainty and stated that right now is not the time to begin hiking rates at least in the u.k. let's get back out to julia who is discussing the policy debate and all things crude related. hi julia. >> hey, nancy, thank you so much. of course as we have been talking all morning the sharp declines lead the equity markets

even as we see the uncertainty in the market at this moment. listen in. >> bad news about oil prices and economic growth in china. there's other factors as well for oil price. >> on the other side, it's a great potential for acquisitions and m&a. >> what are you doing onhat front? >> we're looking at many things and today you can buy the same asset you had at 30 or 40% discounts. >> i think we started 2016 with a real sense of turbulence and i think all the reasons that you said whether it's china oil commodities, all of these things is disturbed the markets and clearly disturbed business people. there's much that will come through from cheaper energy and once we see some of the positives i think things may

stabilize a little. >> thank you so much for joining us. when we spoke to you last quarter you were concerned about the global macro backdrop, china, russia, brazil. can you cap bright those concerns as we stand today given the volatility and concerns in the market? >> well, you have a good memory and those concerns were i think well placed and they're all happening as we speak. the world is an uncertain place and that's concerning but that doesn't mean that we then should get paralyzed. there's so many things that the private sector can contribute to to make for example the world healthier, more inclusive. we are a tech company. tech can help population make health care more accessible. more affordable. tech can also get people to be more included in the economy and

drive wealth and growth and wealth are great country be-- c tributor for the world. >> what the growth outlook is there. specific issues for you. competition in the local markets. health care reforms but you were warning us about concerns about future orders in the last quarter. what are you seeing and can you give us any difference in terms of the risk that you see there verses the concerns everyone else seems to have about growth? >> well, many year of great growth are stalling now but it doesn't change the picture that china is a huge market with a huge population and still many unmet needs. so i get inspired by the fact that 1.2 billion people have

health care needs. and even though investments today have slowed down, that's a temporary matter: so we stay focused on china. we'll collaborate in order to develop the market. i think near term we need to be very cautious and probably titan the belt and be accepting that growth is at a lower pace. instabilities will cause disruptions and make people even scared about doing pbusiness in china but it's a huge market and we have to be there. >> you believe in their views as far as further reform is concerned. that's another question for investors. you see the issues in the stock market and the currency they worry that the progress on reform or the intention as far as reform isn't there. do you believe it is? >> i think those worries are justified but as you heard i think a longer term view. i think there will be issues

along the way, bumps on the road if you like. and we'll have to collaborate to overcome the hurdles. >> we do have to get to steve's panel talking about climate change so i'll pass you back to nancy now as we get ready for that. >> thanks. we're waiting by for that panel with steve but first an update on how european markets are trading because we're seeing the majors off by 3%. there was a lot of hope yesterday when we saw a bounce here in europe that we could be getting ready for a relief rally that's not the case. it's a sea of red across europe and a lot of the sectors that did get a bounce in the session now deeply in the red. basic resources, energy and gas leading the way south and no surprise we're seeing such weakness in energy and gas given that oil prices hitting a new level not seen since 2003.

both brent and wti now below the crucial $28 barrel level. you'll see there the ftse mib off 2.8%. we're seeing weakness particularly in the italian lenders. again we saw that report from the ecb earlier that they were looking at nonperforming loans still on the balance sheet of several lenders so again moving to the down side here in this session. let's also look in more detail at the sectors. we'll get back to those in just a little while but basic resources off now 4.2%. we're keeping you up to date on the market moves but the big focus here is on davos. let's cross back out for our special cnbc panel. let's take a listen and that's the important point. we have seen hundreds of billions of dollars of investment coming out of fossil fuel, we're going to see price shocks aren't we? >> i agree and i would say don't demonize just the fossil fuel companies but not anyone. whether it's a industry.

whether it's an industry. it doesn't help. >> but there are people that will demonize and continue to demonize anything that comes out of the ground. >> but that doesn't include me and i really -- i have been very consistent in saying it is very clear that the oil and gas industry has to play it's part. it's not an invitation after paris there is no other way. they actually said, you know, on access to capital, on technology, on incredibly trained engineering mass, critical mass of engineers who can be all of which can actually be now moved to the new economies while they transition out. they need to figure out which are their completely untenable

investmenteds that are already coming off the table, right? 400 billion already in capital and expenditures. very, very high cost oil and gas in deep well or arctic drilling. 400 billion already taken off the table. but they have to focus on the much more efficient products but at the same time they need to begin to be the motor behind the transition. >> it's very interesting as i was asking that question and i looked over and saw a very senior oil industry executive just nodding and smiling. i won't embarrass him but it's nice to get that question and him being here as well. you're going to come in on this. this is pivotal to hsbc. >> it is and we obviously fierce lay agree with one another on this. it's not a question of leaving the fossil fuel industry behind. i don't think that is responsible. i don't think that makes any

sense. for two or three reasons. one you're right the emerging markets will be users of coal for the foreseeable future and they can get around the idea that there's different standards in parts of the world. as part of our lending policy we have different pollution requiremen requirements. it's 850 grams of cot in the developed world it's 850. i don't think that's difficult. the other reason to work with fossil fuel companies is massive engineering skills but actually for the foreseeable future a number of emerging countries will be dependent on this and actually there's another new answ part we need to be realistic about. they're major tax contributors to many, many companies. you can't have a step jump where you isolate these companies because a lot of the education,

health care and various budgets of governments come from the taxes that these companies pay so there has to be an orderly transition. there's an unintended consequence that will have all sorts of implications for government budgets if you did this in a disorderly fashion. no one is denying the direction of travel. it's a question of doing this in an orderly way. >> that's very interesting. it's a conversation i had a few years ago about the contribution to u.k. pensions. the contribution that they used to make to pensions. dividend is a contentious issue but people's pension and the country in it's entirely and the skills base is huge, isn't it? >> yeah. >> so are you coming under pressure from activists, the people she doesn't associate herself with to say you should not invest in coal at all regardless of the criteria that you mentioned? >> yes. you can particularly see it come to a high point around annual

meetings. we get a lot of lobbying in between times but we have responsible policies which we publish as to what we lend to and it's important that we manage this on an orderly basis. as you say, these companies are major contributors to the value of pensions and employment and tax contribution. direction of travel, no debate but the actual end point needs to be reached in a sensible manner so things like the montreal pledge are all part of creeping social pressure on everyone to keep that direction of travel moving at reasonable momentum. but what i think is dangerous is this idea of suddenly a binary moment where effectively everyone abandons the oil and gas and mining companies i don't think that's workable and it's not workable for many emerging companies which as you said in your opening remarks are being asked to operate with a carbon

footprint below what any of the developed world was requiredo do. >> you represent the world's largest retailer ands hard to move such a company very quickly but you made strong commitments in 2010 and my understanding is you surpassed those quite significantly. just tell me where walmart is now, where it feels it needs to be and as a follow up do you feel there was a defining moment in paris in december? >> we do. very encouraged by this moment in time and want to seize the opportunity. our journey started 10 years ago and the change caused us to set three big goals. we want to be supplied by renewable energy and we want to sell more products sustainable and packages more sustainable. when we set those targets it felt uncharacteristic for us because those goals are so big they're hard to measure and we know that the world holds us accountable to results but what it has turned out to be is those

objectives were large enough that we had room underneath them to set more specific targets and make progress against those and in 2010 we set an objective of eliminating 20 million me trick tons of green house gases from our system and announced recently that we achieved 28 million. we have been able to reduce our energy needs by 9% during that same period of time. we have an objective of getting to 20% reduction so what we're trying to do is use the size and scale of the company to make a difference in the world and lead by example and at the same time influence those that we do business with through our supply chain large and small. fresh food, dry grocery, yen rahal merchandise, apparel across the products that we sell and i too am encouraged that the leaders of the companies that we do business with are becoming increasingly like mind about this and they see that making a difference in the world is

actually good business. not only from a reputational point of view but in terms of the math. we can lower cost. we can be more efficient and drive a better pnl and for us once it became clear that those things were one in the same our own people started to lead, make decisions and do things that weren't directed to do but empowered to do. >> and proud. >> it's helped us recruit talent and retain talent so what you can expect from us is we will continue against the three big goals and we'll set more and try to do everything question socially and environmentally. >> is the american public skeptical? there's a lot more important things to americans in 2016 than climate change. they have cheap fuel at the moment. they have a presidential election to worry about. worrying about mr. trump and other issues which are to the fore. is climate change something that your customers are really in tune with?

because i feel that of all the continents in the world north america is perhaps the least on board in many ways. >> atwal mart we're very familiar with skepticism and i have gotten to the point where we will just ignore it and doing the right thing is good business and so while the u.s. population and other populations may not all be like minded about it it almost doesn't matter because the decisions we're making behind the scenes improve the products we're selling and increase the value to our customer and what we can do is make the path of least resistance for that item one that is more sustainable. >> tell me about your experience. >> and that was our own steve holding a panel on a new climate for doing business in davos. dramatic decline in oil prices. more on that coming up later in the show but now tonye ya skoming up wisko

skoming -- tonya is coming up with a big name after the break. >> i'll be talking to the entrepreneur and philanthropist that just won the most prestigious award here in davos. join us after the break. nunununu

welcome back to davos. we have been teasing this all morning. i'll hand over now to tanya william. >> yes i'm here with the music super star, entrepreneur and philanthropist. thank you so much for talking to us first on cnbc because i believe you won the prestigious crystal award last night. how did that feel for you?

to be up in front of the great and the good? >> it was great to be acknowledged the work that you do and the things that you're passionate about and helping those left behind and bringing them up to speed to solve tomorrow's problem and for your work to be acknowledged in front of all of these influential folks hah do a lot around the world it's great and to be there, you know, at the same time with leo, we come from the same area in l.a. we have known each other since we were 16 so it was surreal. >> so i know that you came from a very poor background. it was a ghetto you've described it as with a lot of gangs going on, the journey that you have taken here to davos getting an award, i mean that's quite something. >> yeah and it's what i tell our kids. i tell our kids, i started with 60 kids and now have 320 kids and i tell our kids that, you know, if they discipline and

dedicate themselves around this curriculum, their tomorrow is going to be pretty amazing. the things that we're going to be doing in society unfortunately my industry isn't as healthy as it used to be so that's why i'm telling them to aim their dreams in career, science, technology, engineering, mathematics. they write code. they go to china every year to learn mandarine and so it's -- i'm happy that our kids are committed and out doing all they can to recruit more kids. >> the theme here for this year in davos of course is the fourth industrial revolution but you were early on in this space. is it too late to talk about this theme? >> right now is an important time. ai is a $100 million investment

from various companies to make sure that artificial intelligence gets smarter and the sad thing is that we don't have the same investment toward education. so machine learning surpasses group learning and so to talk about the fourth industrial revolution and celebrate it but at the same time put a flashlight on the hurdles that we need to jump over as a society and how does every human being equipped with tomorrow's tools, you know, these are important conversations so regardless if it was too late, it's never too late. it's exciting times. >> what about for you here in davos? what do you hope to achieve? i know you were here last year so what's the agenda here for you? >> to find more tools for our kids. so i go around the world and meet amazing folks and do amazing things.

if i can come in contact with folks that have awesome programs that i can bring to our school that would be really good. >> finally, will, the vice president joe biden is here as well. >> i saw him -- >> did you have a good chat with him? what did he tell you? >> we were just talking about, you know, the things that we should be doing in the states and he gave me a good, not a pat on the back but just motivation to keep doing what we're doing. >> so who will be be voting for in november? >> that's a tough one. hilary. >> it had been hilary, not trump. >> i like tv. >> well, will, thank you so much for joining me here in davos this morning. back to you. >> thanks for that. the fourth industrial revolution maybe the theme there in davos but leaders cannot ignore this

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>> crude crushed, stocks slammed. oil prices plunging below $28 barrel sparking a sell off in equities around the world. >> netflix shares rallying on better than expected subscriber growth while ibm getting a hit on a weaker profit forecast. >> plus your money, your vote. donald trump gets a big endorsement from sarah palin. it's wednesday, january 20th, 2016 and worldwide exchange begins right now.