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tv   Street Signs  CNBC  June 14, 2021 4:00am-5:00am EDT

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ofn think, if you were to ask him, he would probably rather have a rival put a bullet in his head, than to be sitting where he is now and that part makes me feel good. ♪♪ -- captions by vivit -- good morning welcome to "street signs." i'm julianna tatelbaum these are your top stories >> we are in a contestcontest, china, per se. but ouautocratic governments around the world in the rapidly changing 21st century. >> g7 leaders taking on china proposing the alternative to the
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belt and road initiative they should not slaughtering the country and emmanuel macron says they must protect its interests. >> the u.s. remains an open country. it says other countries are advancing. as the tension turns from g7 nato, the secretary-general tells cnbc that china is not an enemy, but is a cause for concern. >> no doubt that china is increasing the military power and increasing influence and also behavior in many parts of the world. >> we will have more from the sum kmit in a few minutes with norwegian prime minister erna solberg. and prime minister johnson is expected to delay the
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reopening plans by up to a month. and royal shell is slashing carbon emissions considering a $10 billion save of holdings in the permean basin. welcome to "street signs." let's kick off with the g7 leaders who called on china to respect human rights and fundamental freedoms in the final communication, the g7 referred to issues in hong kong and the investigation into the coronavirus. french president macron says the group is not hostile to beijing, but must respect international rules. let's get to steve who is
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joining us from cornwall which is looking sunny day steve, you have been working hard for last several days i heard you say on "squawk box" after all of the years you covered these events that this communication is one of the most significant. what makes you say that? >> reporter: the context as well, julianna i have counted the meetings and i think this is the 13th or 14th i have seen useless communications with great words, but little substance i think this one we have seen in the build up to it and during it there is substance there no doubt about it. 870 million new vaccines for the developing world is a big achievement. of course, some would argue it has been too slow and the country would face it anyway no doubt, the group getting together led by the united
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states is an achievement no doubt a skeleton of a tax deal has been agreed to for the first time in 40 years there are hoping for more details on a green financing initiative to combat the belt and road strategy from the chinese as well. there is a lot of teeth in this. i criticized many g meetings over the years it is 25 pages have a look at what you think is in the teeth of this i think there is hardening of the language to the chinese. on page 19, section 49 hold the rules that when china will continue to consult and challenge non-market policies and practices. that is directly linked to chinese and hong kong. calling on russia to stop destabilizing behavior very firm action with firm countries pointed out as in the
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russian case and chinese case. i spoke specifically about the leadership and could hcoherence of the g7. it was tough two years ago we didn't have an in-person meeting last year. i asked macron if we were run election away from the breakdown again were mr. trump to become president again. this is what the french president had to say >> translator: what is true when a partner as structure as the u.s. skews away from the global public good or shared understanding of topics, it is difficult to move forward. now does this mean nothing gets decided without the u.s. choosing not to be part of the agenda no i think we are showing that over
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the past four years, we strengthened european capacity for cooperation. for me, this is an achievement of the past four years eu has shown it is a political entity and not an economic one >> the final point which i made at the start of the trip down to cornwall it is not just about seven nations. you have the eu involved you have south korea you have south africa. you have australia you have the indian members. you have the eu and u.s. summit. this is about the broader issue. is theg7 the end all absolutely not has it relevance pos possibly it gives me hope for germany next year and continuing to see more teeth and more substance in these meetings as well i have to say out of the many i've been to, this is one of the best ones, not just i'm in
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cornwall, but also because the fact that with joe biden back at the table, they have coherence and difscovered their meaning back to you. u.s. president joe biden arrived in brussels. the visit is the latest stop on the joe biden first foreign trip since taking office and focuses on revitalizing u.s. and eu ties i'm pleased to welcome the prime minister of norway thank you for joining us first off, where would you say the relationship stands, the trans atlantic relationship going into today's meeting do you think trust has been restored between the u.s. and european allies after the volatile trump era >> yes, it has
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i think what have had earlie was a more unpredictable u.s. and international affairs. of course, with the withdrawal of the multilateral cooperations with the paris accord and other issues on security issues, u.s. has been present and unpredictable we look at security from a large scale of use we believe economic cooperation is also part of security >> when it comes to security, nato's approach to russia is featured high on the agenda today. obviously an important country from norway given you share a short border with russia how would you rank russia as a threat to the allies and the best approach to deal with aggression from russia moving forward? >> i think the biggest threat from russia these days is its
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impact on cyber warfare and space. the activities these days and if you look 10 or 15 years back, it modernized and it is more mobile it is important that nato has a real policy and we show that we can stop aggression when it happens. we are also seeing in the society is important cyber warfare and as the u.s. has seen early on, that is part of the security issues and how to destabilize democracy >> are nato counctries doing enough to avoid that cyber warfare or are our countries
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like russia and china advancing more quickly >> it is obvious to see they are moving faster these days that is why it is an important discussion how can we incorporate better on innovation and making our defense industries work more together and not separately so we can build better systems in the future and be more efficient. i believe it is important to make sure that we he train and exercise and we are surveilling and we have a border to russia and a peaceful and cooperation in the north where we have the border we know that we are placing part of the security and if russia gets engaged in something that our coastline is fragile to military activity. >> china has been expanding military activity in the region.
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it is developing a prominent presence in the arctic what role do you think nato should play in dealing with the chinese military activity? >> i think we should have a discussion on it on the political level. i still believe nato is a north atlantic alliance. it should look at defense in the region that is not where china now has their biggest activity of course, it can be in the pacific and other areas of the world. it is a chance and of course, it is a challenge because of the assertive policy making. i think it is important that nato cannot be everywhere and should not be an alliance fighting everywhere or putting its flag everywhere. we should concentrate on the north atlantic that is a big issue to work on and we should work on one of the challenges which is not just russia and china, but international terrorism. >> lastly, the agenda for the
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summit as you outlined is vast ranging from climate change to cybersecurity and enhancing infrastructure and supply chains is there a risk that nato is casting the net too wide here? >> i think it is important to distinguish between what is the military and defense issues and what is the overall security debate that nato countries should have. we should look where we are fragile and we should become more resilient it might not be nato which is the answer for this, but a good f pla platform >> prime minister, thank you let's get to hadley with more after the interview with the secretary-general. a huge range of subjects there what were the key takeaways from the conversation
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>> fascinating conversation, julianna,they gave me 15 minutes and i took 20. you know norway is on the frontlines of aggression she gave you a good preview of the internal conversations will look like. she said with the north atlantic alliance, we cannot be everywhere we should focus on terrorism as opposed to the military response to china they are far away. that really does speak to the fact of the nato members of the division of thought and what they should focus on in the interview i had with the secretary-general and i asked about russia and china and afghanistan. his response on china is the one i heard again and again. we are worried not just about cybersecurity, but how this is going to evolve with the power structure as the united states loses ground to china.
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we need to have a firm position when it comes to beijing as you heard from the norway prime minister, the division within the nato alliance as to what response they need. bringing it back to the russia question we are days away from the summit with vladimir putin and joe biden. what kind of robust response we will see is somebody's guess last summit in helsinki with president trump, they had a closed session there will be a move by the administration to scale that back, i would say. the one question is facing nato at this point is how do they continue to hold a firm line with russia and finding some way to be conciliatory listen to what he said to me. >> russia is based on what we call dual track approach and defense and dialogue we have to be strong and
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predictable. that is what we do and have the biggest enforcement since the cold war and will continue to strengthen our collective investment >> essentially, the nato secretary-general telling me for the first time in nato history, they he ave combat ready troopsn the eastern border of russia in response to that, the russian military will put 20 new military units on the border we have tit-for-tat happening. there has to be constructive dialogue going forward i spent time in russia and asked about sanctions and if they are still that effective the secretary-general says we have to have that two-pronged approach julianna. >> thank you for that interview. i'm glad you pushed for more
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time on it coming up, the uk is pushing back the plan to reopen as cases continue to rise we will bring you the latest after the break.
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[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪
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♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪
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welcome back to "street signs. let's check on the europe marked markets. the stoxx 600 is up .30% after strong sessions over the last week after the headlines from the g7 and taking on china and alternative to the belt and road initiative brexit tensions are in focus we will have more on that from steve shortly. those are the take aways from the g7 now with the international community turning to the nato meetings in brussels and in terms of monetary policy, the fed kicking off their two-day meeting on tuesday we get uk inflation data on wednesday. a busy week ahead.
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let's dive into the markets and see what the split looks like. green across the board we are seeing some outperformance in the spanish market up .60% the ftse 100 trading .30% higher uk markets with under performance in the airlines in particular amid concerns of a third wave coming together here in the uk. casting doubt on the june 21st reopening date turning to the sector. the majority of sectors trading higher little bit of red for basic resources like autos oil and gas at the top alongside technology up 1% turning back to the uk here is the latest uk prime minister boris johnson is expected to announce a delay to lifting the restrictions. the delta variant is casting doubt on plans for a full
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reopening on the 21st of june. the country reported 7,500 new cases and 8 deaths on sunday with infections surging nearly 50% from the previous week johnson told reporters that no final decision had been made the government is expected to make an announcement as early as today. >> it is clear the indian variant is more transmissible and it is also true the cases are going up and that the levels of hospitalization are going up. now, we don't know to the extent that will feed through into extra mortality, but clearly it is a matter of serious concern turning to corporate news now. italy's partners have signed a deal to purchase an 88% stake in the motor unit atlantia.
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it will hold 51% of the company and blackstone will have a 24.5% stake. the board accepted the offer a lot of week. the prime minister draghi will review the belt and road plan according to the newspaper. italy joined the initiative in 2019 to boost its economy. speaking at the g7 summit, draghi said he would take a harder line with negotiations with beijing >> translator: it is fundamental to be frank. we must cooperate, but be frank about what we do not agree about and about with a we do not accept the u.s. president said at some point that silence is complicity we must cooperate and compete and be frank >> g7 leaders found common ground on a range of issues from climate to the pandemic, a row
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erupted over brexit. prime minister boris johnson responded to a comment over the ireland over the protocol for the region we will get out to steve shortly who was at the g7. he was in cornwall all weekend we will get to him on the latest on what happened over the weekend. it sounds like steve is ready to join us again which is good. steve, back to you we discussed before the break the significance of the communique and how they have come through on some issues, but brexit related tensions is not one of them. >> reporter: the fact is that boris johnson would not have
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liked that over what he achieved here he had a very good meeting the weather in cornwall was fantastic and they have a great impression of what great britain is like to the world there was a lot in northern ireland. i wonder if it is the distraction or irrelevant. i think it is irrelevant having contention with three of the parties here and you mentioned the comments where he inn infuriated the prime minister. it is a big issue. there is a host of players here who are worried about what it means for the good friday agreements let's listen to what the prime minister had to say. >> we will do whatever it takes to protect the territorial integrity of the uk.
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actually what happened with the summit is a colossal amount of work on subjects that had nothing to do with brexit and together with our european friends and partners where we're launching all projects for the benefit of the world. >> reporter: as i said to viewers, i got lucky i got the question to president macron yesterday i wrestled to deal with that on the brexit issue he already talked about it previously i asked the canadian prime minister justin trudeau about this as well u.s. like the united states, canada has a vested interest i asked justin trudeau if it distracted from the meeting and if it was important with his bilateral with boris johnson >> it did not come up in our discussions around the table
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from my perspective, i reminded boris that canada was an integral part of the negotiations of the good friday agreements many decades ago. we are committed to a path forward that works in the spirit >> reporter: that was justin trudeau speaking to me yesterday about whether or not the northern ireland issue has been a distraction. have a look at the communique, ladies and gentlemen, it is popular to criticize the announcements. i had enough bad ones in my time if you read the 25 pages, i think there is more teeth in there and credit iticismcriticim >> steve, on that note and stepping back and looking at the whole g7 meeting, ahead of the nato meeting is coming up today, what would you say is the relationship like between the u.s. and european countries? do you think that trust has been
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restored after those volatile trump years? >> reporter: i am not a democrat i'm not a republican there is no doubt about it the feeling with the european partners, they feel they have the u.s. back. that is the message which the biden administration has trying to portray and that is the answer i got from mr. macron we don't need to play the tape again. i asked are we at the whim of the u.s. election cycle. he disagreed slightly with that. the fact that europe and the world moved on despite the support or lack of it from president trump from a multilateral issues as well. macron made his initial comments and for four years they hadn't had someone at the table to take things forward i'm not going to overplay this i have seen many promises at the meetings over the years that
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have not been met. they have a form of tax agreement. they have sent out the best of committing to the world economy. they are talking about green initiatives which will combat china to the belt and road initiative are there promises absolutely is there meat on the bones absolutely this is a sign of the progress when you combine it with the accord and the key meeting with one of the key adversaries which is russia. i'm positive about this one than most meetings. i stand here ready to be disappointed if things don't work out. >> thank you, steve. really great to have you reporting from cornwall. still ahead, after a di
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we're in a contest, not with china, per se, but contest of autocrats. as whether or not democracies can compete with them. >> g7 leaders take on china and proposing an alternative to the belt and road initiative president macron of france says the g7 must protect its interests. >> it said other countries are adva advancing, we should do th same >> as the tension turns from g7 to nato, erna solberg says the
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g7 should not spread itself too thin. >> it should not be alliance fighting everywhere or putting its flag everywhere. we should concentrate on the north atlantic the ftse recovers the pandemic losses. on the day prime minister johnson is expected to delay next week's reopening plans by up to a month. royal dutch shell considering a major step on the path to slash carbon emissions considering a $10 billion sale of the holdings in the permean basin. european markets trading higher this morning. green across the board every major region trading higher ftse 100 up .40%
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the gains come despite the fact we are bracing for delay to the final stage of the reopening as cases mount in recent weeks. we are seeing about .30% higher for the german index the ftse mib is up .20%. broad based gains. let's look at fx markets we had the ecb meeting last week the central bank offering a dovish tone than previously. we have the euro trading higher versus the dollar. last week, the dollar index rose 0.4% sterling down .20% for the dollar this week, the federal reserve two-day meeting is a focal point that meeting kicks off on tuesday. let's turn to corporate stories in focus
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philips will recall ventilators due to concerns a part may be to toxic. the dutch medical equipmentmaker said the issue may cause revenue headwinds at the sleep and r respiratory care unit. and shell is in talks to sell the holdings in the largest oilfield in the u.s. negotiations are ongoing reuters is reporting that they could let go all or some of the 260,000 acres in the perean basin in texas shell declined to comment. shares trading at 2.3% higher on the news. a consortium led by bp over a power farm in the sea. it will hold a 1/3 stake in the
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development to provide offshore oil and wind energy. let's look at the oil and gas majors we are seeing gains across the board. oil and gas is the best performing sector. we are seeing the gains led by shell up 2.3%. u.s. futures we are in for a modestly small open in terms of the last week moves. the nasdaq ending 1.8% higher. s&p is higher and the dow dropped .80% for the week. in week in the u.s., all eyes to the federal reserve meeting. one of the key themes for the last several months is the supply chain issues. dhl plans to deploy up to 2,000 robots by 2022
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specialized in picking up and transporting items in warehouses the division of dhl is using 500 of these assisted picking ro robots it intends to add 500 more by the end of this year and more next year. welcome the ceo of dhl supply chain. oscar, great to have you with us as i mentioned, the supply chain pressure is a huge theme we talked about with corporate throughout the last year i want to ask your insight into the shipping container shortage which underpinned a huge supply chain issue through the pandemic the shortage of the shipping containers in china. what is your opinion on the shipping containers at this stage? >> i think at the moment, there is also the loss of challenges in the supply chain. we have seen it over the last year
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i think each and every one we have been able to overcome i think over the last year, year and a half, we learned to see the importance of supply chains. i think also the importance of speed and agility and flexibility to cope with this. i think what you also see, the aspect of robotics is important. we talk about speed, flexibility and agility, you need to find that combination between data and people and robotics to continue to be able to act and react on what is happening >> i certainly want to get into more details on the changes that we're likely to see from the supply chainperspective in a moment i want to round out the c conversation we have seeing a rise of covid in asia. to what respect could the covid
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hot spots cause a problem in the coming weeks and months? >> i don't have any signs at this stage it will i think as we learned over the past period, we learned every day. we don't see the signs yet we actually see the volumes are there and i don't see negative signs at this moment >> you are experiencing any issues finding labor labor shortage is another key topic with the reopening many sectors find it difficult to fill roles. are you having issues on the warehousing side or delivery side >> labor is a to bepic. one is pressure on the supply chain. volumes increased drastically. finding people is a key point. as we mentioned earlier, one is being a preferred employer to attract people at the same time, it is also
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very important on the investments we are making on robotics to be able to react and act on that as well within the market we have seen it in q4. the volumes in the u.s. in the fourth quarter last year by investing in robotics as a collaborative solution, we have been able to cope with those volume fluctuations. i think we certainly have not seen the last of it. that is a topic and it is something we are addressing. as we mentioned before >> when it comes to those investments in technology, robotics, the big investment you have made over at dhl, what are we talking about in terms of potential productivity gains and eventual cost savings through using the types of technologies? >> i think the big issue is productivity gains if you talk about the specific
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solution about assisted picking robots one of the 12 investments we identified in the process. if you take a specific activity, it has a quite substantial overall 30% of productivity improvement of that specific activity i think it is not only about productivity, but it is also about making sure that we create a better working environment for the people there it makes it also more interesting to attract people. we are obviously a competitive labor market we need to create an environment for people with a pleasant working environment. it is creativity and creating the pleasant work environment. it is important these solutions you can add and reduce and shift between operations it also means you can be faster
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and acting on volume increases and decreases in specific operations it is those three elements which this is very important. >> you talk about the uptick in demand and that reason to need to continue to attract more and more labor obviously the pandemic has fueled a huge uptick in online shopping what kind of growth would you expect to be sustainable as we come out of the pandemic and people return to more normal ways of life >> so we have seen, as you said, an enormous increase in e-commerce and fulfillment we think that that trend will continue to be there and we see that about 30% of all of the new contracts we sign and supply chain and contracts that we operate are fulfillment at the moment we have 50% of work force fulfillment.
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that is an absolute trend that will not go away we also see the commerce and increase in the b2b commerce more fulfillment for direct business to business deliveries. that growth is something we have seen in the pandemic and that is a growth that will not go away at the same time, we also see the traditional channels which are increasing we focus on channel solution force the customers. you have the same stock point from ecommerce and the traditional channels we see a major growth at the moment i think the ecommerce growth is there to stay. on top of that, you have the b2b and on the traditional channels. >> what is driving the b2b
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growth in particular >> you have seen during the past year and year and a half, companies had to and our customers had to reinvent supply chains fast. the traditional flowing could not work anymore because of the things that happened closures and add the suez canal. it became more and more important to reach the end customer directly. for that, some of the wholesalers had to be jumped and direct delivery to the end of the supply chain had to be set up also to the market. that, i think, is a trend. i say lots of the trends were there before the covid crisis and actually accelerated during covid and now there to stay. the b2b commerce that started
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and accelerated and now stays. >> thank you for joining us this morning. oscar de bok ceo of dhl supply chain. turning to politics. germany's greens endorsed boerbock as the candidate for the federal election despite the slump in the polls the party adopted the election manifest during the conference which sees it committing to accelerating the transition from away from fossil fuels and loosening the debt break baerbock said the party must stand up for the vote as they put forward a chancellor candidate for the first time in history. >> translator: citizens and friends, the wind is turning after a winter of pandemic
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above all, there is the great task of our time averting the climate crisis we as a society must have the confidence to do this. i stand up for the confidence. we stand for this confidence in solving problems and protecting people and doing better in the future >> at a critical time for bissusiness leaders, join us for the era of rapid change. legacy companies are evolving and adapting >> a new era for business with singapore. >> travel in china >> new era of innovation. >> business for hong kong. >> travel industry >> get the latest from around the world. >> from around the world. >> from around the world >> at cnbc's evolve global summit. >> live from london. >> live from singapore. >> from around the world at cnbc's evolve global summit. live on june 16th.
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welcome back to "street signs. israel parliament voted to approve the new coalition government ending 12 years of benjamin netanyahu's rule. the leader of the right-wing party is the new prime minister and vowed to unite the nation. let's get out to dan who joins us with more dan, talk us through the significance of the change in power and what the priorities will be of the new government. >> reporter: julianna, this is a hugely significant shift in the history of israeli politics with benjamin netanyahu out after 12 years in power top of the agenda for the government is staying in power because that razor thin vote of the knesset might have put him in, but it did not give them a
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commanding platform. his room to move is narrow at best they are entering the government with no more for power than to oust benjamin netanyahu. bennett is unlikely to pursue policies to split or fracture the alliance that put him in power. i would contend the most severe divide is the palestinian question where the coalition has hawks and doves on the left and on the right they are divided on issues like religious restrictions and gay rights as well where israel is a regional leader. there are other issues where they might find common ground which is where the attention is focused on issues like attempting to pass a domestic budget. that hasn't happened in about three years now as a result of
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the deadlock we have seen there. and at the same time, the coalition government might be able to find common ground when it comes to boosting the israel economy which is very much recovering from a spike in unemployment from covid and rising government debt despite the fact that the inoculation rate is high and the virus trajectory is looking good that is a significant challenge because we still have bebe in the background he is vowing to topple what he calls a dangerous government on the back bench whether he will disrupt the agenda or if the unity coalition will get anything done remains to be seen. >> dan, thank you for breaking it down. i hope we have time in the coming weeks and months to break it down. thank you for joining us this morning. joe biden is in brussels
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this morning following the weekend's g7 summit. biden will go on to geneva for a summit with president vladimir putin. in the exclusive with nbc ahead of the meeting, putin said relations with the u.s. had deteriorated under biden who he described as radically different from his predecessor president trump. >> it has deteriorated to the lowest point in recent years i believe that former president trump is an extraordinary individual otherwise he would not have become u.s. president he is a colorful individual. you may like him or not, he did not come from u.s. establishment. he had not been part of politics before some like it some don't like it that is a fact president biden is different from trump because president biden is a career man. he spent virtually his entire adulthood in politics. think of the years he spent in the senate
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a different person it is my great hope there are advantages and disadvantages, but not any impulse base movements on behalf of the u.s. sitting president. >> our nbc colleague tracie potts joins from us washington, d.c. tracie, high-stakes meetings for president biden. what are the president's priorities going into the key meetings >> reporter: so going into the nato meeting in brussels today, the priority is to reassure america's allies from the national security measure, that america will be there to protect them the last administration had a different philosophy former president trump, america first. they want to hear from the new american president that the u.s. is back in the game. there are a number of things on the agenda afghanistan, china, russia,
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climate change reassuring allies is a big part of the meeting today tomorrow, he has a similar meeting with the eu leaders. he also will try to reassure them that america is planning to cooperate with the allies and there may be talk about brexit and america's role in brokering that they get a chance to bend his eras well before this meeting with putin the high stakes meeting with vladimir putin where they can talk about any number of things, including these most recent concerns about cyber criminals and whether or not russia is harboring them >> tracie, thank you for setting the scene. i look forward to the coverage throughout the week. tracie potts from washington, d.c. u.s. futures and wall street is poised to open. we saw stocks hit all-time
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highs. expectations that the recovery will remain robust the s&p up 3% and the dow lagged we are looking at a positive start this week. all three indices looking good all eyes on the fed meeting. the meeting kicks off on tuesday. from a geopolitical perspective, the nato summit today and on wednesday, all eyes on putin and biden who meet for the first time that's it for the show thanks for watching. i'm julianna tatelbaum "worldwide exchange" is up next.
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[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪
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♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪
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it is 5:00 a.m. at cnbc global headquarters. here is the top five at 5:00 waiting on the fed stocks at or near all-time highs. bitcoin bouncing back after elon musk turns the page with the on again and off again relationship with the cryptocurrency joe biden is getting ready with the face-to-face with putin. we are on the ground spac i

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