craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. good morning welcome to "street signs." i'm joumanna bercetche >> i'm arabile gumede. these are your headlines >> bp doubles it's annual profit and adds $2.75 billion in share buybacks as the ceo defends against criticism on renewables saying the company is making significant investment >> we will spend more in the growth engines as at the same time invest $8 billion more this

decade in oil and gas. that provides the energy security and energy affo afford affordability. and siemens falls to the bottom amid the wind unit is off course the ceo says business is generally good >> we see the transform business we see the low level in the wind business losses narrow at softbank vision fund, but the company has a net loss of 900 billion yen as the cfo sees the highly anticipated ipo. and french bank bnp misses for the fourth quarter, but raises targets for 2025. the cfo tells cnbc the macro

outlook is still uncertain >> it will take maybe one or two quarters it could be a slowdown it could be a stagnation it should be short in duration and business should pick up. over 5,000 people have been killed following deadly earthquakes in turkey and syria. this is international resccue operations continuing today. and let's kickoff with earnings with the oil and gas sector bp with reports of $27.2 billion. the energy giant lifted dividend by 10% and announced a share buyback program of $2.576 billion. the ceo is stepping up the

transition into the energy sector. >> in 2022, three years later, we invested over $5 billion in our transition growth. this is into offshore wind and hydrogen and bio-energy and ev charging and convenience the majority of that spend is absolutely on the energy transition this is a massive step up. in 2019, we had 4 gigawatts. we have 7,000 charge points and now 22,000 charge points this is about a real leaning in. this is putting our money where our mouth is 3% to 30% in the space of three years. >> bebernard, you know, there a

a lot of technology that needs investment to get to profitability. with that in mind, how accurate or innaccurate is the wall stree journal the other day placing down the push of returns as they lag. we are disappointed with some areas of renewable investment and you want better returns from it give us context from that headline and story >> we're leaning, as i said, leaning into the strategy today. that is what we are announcing that is because of two things, steve. the first and importantly is we had three years of track record. we had three years of delivery under our belt that gives us increased confidence an example is light source bp developed .6 gigawatt. this is now a track record of delivery that we are establishing that gives us confidence to lean in the second is an enormous change

in the world a pandemic and a war and a cost of living crisis and an energy crisis it is for those reasons that we're announcing today that we're going to spend up to $8 billion more in the transition growth engine and invest up to $8 billion this decade in oil and gas because that is what provides the energy security and energy affordability today this is a leaning in on our strategy based on increased confidence of delivery over three years now and it is because of the changing world siemens energy net loss doubled in the first quarter reaching 598 million euro due to charges the wind business. the german energy firm backlog hit a record 9.8 billion euro. we have annette with more on this story annette, not the greatest

picture painted by siemens >> siemens energy is in transition and that is because of the perhaps with the wind which they are now trying to take over 100% and also that process to take it over to 100% is actually not easy it is also a bumpy road. they did not achieve the acceptance levels from the shareholders from the squeeze out and they are looking for options. the other part of the business is doing very well siemens energy is success ful in the grid service they are doing well. they have a record flow of orders siemens is weighing on the profit profitability. that is not the first time we he are looking at this picture with the last two years

now the ceo of siemens energy can turn around the business and they are promising to be profitable as a group in 2025. another two years of restructuring transition it is mainly because of the onshore wind business. they could be bringing positive momentum between others also from the inflation reduction act in the united states and perhaps if we listen in on the ceo of siemens on the outlook for the business in the united states. >> from the discussions from the inflation reduction act and the green deal industrial act is focusing on how we can quickly drive the transition it is less about competition, but more on how we can cooperate with the regions to build out the energy industry which is needed what i do see is obviously

similar areas of action which means wind which means renewables in general. it always means hydrogen for infrastructure i do expect, obviously, better support in terms of the long-term conditions if it comes to renewables. at the same time processes. apart from money that is ur urgently needed. build out faster and make the conditions long-term accessible. at the end, what we want is to attract more private investment in the sector and the long-term conditions will be key >> to sum it up, there is a lot of positive momentum coming for

siemens energy traditional business the wind business is an ongoing restructuring case there needs to be a lot of hope they can turn around in 2025 because the prices are a problem and inflation has driven up prices and they have warranty issues at the same time. in a nutshell, the shares did react negatively they are down 4% >> annette, thank you. it goes to showcase how challenging it is to scale up these renewable technologies in this case the wind sector let's get to our first guest a.j. bell. i want to kick off with the bp earnings we are seeing a good reaction in the stock up almost 4% investors are happy with the fact that the company has posted the highest profit since 2008, but also we are seeing an increase in dividends. they raised dividends 10% and

increased buybacks as well would you say a positive and looking ahead with a positive set of results for the oil company? >> it is clearly weaponlcome. it means less risk and that means high multiple and that means higher share price they are doing this footing the bill for the taxes in the uk and eu they tracked to $16 billion last year and they are taking that on easily as well he barely mentioned it there >> to your point, they managed to juggle so many balls and they come out on top. i want to pick up on the plan to invest $8 billion more on the transition business between now and 2030 than previously

planned. also inn kcreased oil and gas investment by the same amount. the increased investment and growth in investment is the same for the renewable side and oil and gas side of the business do you think that will come as a disappointment to some hoping for a faster transition? >> i think the environmentals will be disappointed bp is planning to reduce overall oil and gas outlook to 2 million barrels a day by 2030 from 2.5 million now. i think there will be disappointment there the company is relying upon hydro carbons and wrestling with the topic of making solar and wind suitable for power. and that story in the financial times yesterday with lots of

renewable and alternative energy sources and looking to connect to the uk grid and unable to do so so wouldn't be connected to 2030 it is probably unfortunately reality. some relying on hydro carbons whether they like it or not. >> russ, you make a good point to the credibility of that energy transition. does this worry the fact that maybe windfall taxes are not sufficient to get the plan done? will investors look at this and think if we're still moving back to the traditional form of business for bp, which had hoped to go beyond petroleum, would windfall taxes offer the help that economies around the world need particularly in the uk >> i guess the argument is windfall taxes deter investment.

it is increasing in renewables and oil and gas. lots of people are against the argument of it stopping investment that is not the case environmental campaigners and investors with strict environmental and socials will be disappointed. those investors hope for the portfolio for dollars and cents will take a harder nose and be happy to see the increase buyback. it is interesting to see the capital investment out of the corner of my eye are all up this morning and the oil equipment sector is out performing for some time. that might be one way of looking at it from a different perspective. >> i must ask about china as well and that reopening and if that will keep focus on the oil and gas sector more.

the demand could pick up for that side of the world how could that impact business >> bp flags the reopening in the outlook for q1 and the rest of the year it is a big variable they are optimistic on the oil and gas side talking about chinese reopening. they are referencing low investment with the spr. under pressure and response to that pressure. if we get a shallow recession which financial markets seem is consensus and china reopens and opec stands by and lets things happen you can make a case for higher oil and gas prices and a

recession would change that quickly. >> russ, a good chat thank you for the time i appreciate it. russ with a.j. bell. we continue to talk about the bumper profits from the energy sector. russia's budget deficit ballooned to $25 billion in january as oil sanctions and ba battlefield costs took a bite out of the coffers the preliminary monthly figures means that the deficit is 60% of the shortfall expected for the year the u.s. is preparing to slap a 200% tariff on russian aluminum in week according to bloomberg. there are concerns in the biden administration over how this could impact the industry. and coming up on "street

signs," the brewer posts a loss posinghaen cllges on the horizon. we'll have more after the break.

welcome back. markets are actually stabilizing. that is the theme from asia overnight. we saw a little bit of green in the asian session. the hand over is positive. the stoxx 600 is mildly in the green. up .30%. the focus today is very much on the earnings that have come through. we talked about the likes of bp and siemens energy there have been others as well we will get to that later in the show on central bank speak. on friday in the u.s., we had reaction on the non-farm payroll print. today is the opportunity for jay powell to talk more about monetary policy when he is speaking this afternoon. that is something investors will watch out for and also which is interesting, it is not only jay powell we have the bank of england and

ecb members speaking central bank in the driver's seat let's talk about the individual prices you can see all of these are trading in the green with the exception of the cac 40. we have bnp, the french bank releasing earnings, to talk about shortly. dax at the flat line ftse 100 is up .40%. a lot of focus on commodities and oil and gas after bp bumper record for 2022 spurring them into the top of the category up 4% for bp and dragging on the oil and gas. you will see oil and gas at the top at 1.4%. ko commodities are higher

banks are doing well this earnings season. at the bottom is real estate which is relative to what is happening with interest rates. a mixed bag, but more positive for the session. switching to beer. carlsberg expects 2023 to be a challenging year as the war in ukraine is uncertain i spoke to the ceo earlier today and i asked him about the outlook for the company in 2023. >> we have three big evenv unknn the year the unknown for china is important for the year where we sell a lot of beer we need to wait for the sell out. that is an unknown the second is we take a lot of price in europe. the consequences are on volume

and mix as well. the third is the continuing terrible war in ukraine which is an important country for us. that could have an impact. we have a few issues over the year and hope at the end of q1 we are able to narrow a bit the range. >> fair enough to go back to the first point, what upside risk is the china reopening of the economy re presents to your business? >> we have a sellout in the chinese new year and on top of that, we see china coming back with regards to its economy and economic development and also the risk of covid. that means the risk in china inn de -- indeed >> and you mentioned the war in

ukraine. how is demand in other geographies? >> the demand in the last part of the year is good, of course, it has been influenced by lower sales on trade we are keen to understand the impact of your pricing at the beginning of the year. softbank posted a loss in the first quarter as the rout in tech stocks put it in the red for the fourth straight quarter. speaking this morning, the cfo struck a bullish tone on the company's position >> based on these kpi, our state is in defense mode no issues here at all. we have very ample cash available. what is this for, you may ask?

this is for whenever we like to switch our mode to offense we would be able to play for that and we like to be prepared for the time to come now bnp has missed expectations on the bottom line in the fourth quarter with the profit at $2.51 billion euro the french lender posted a jump for the year at 50 million euro. we have charlotte with us. the windfall coming through with the sale of the u.s. unit. interesting point to point out the numbers are mixed on top and bottom line. >> we have seen this in the share action this morning playing a roller coaster in the green and in the red and currently in the green again it was a record year for net

income at 10.2 billion euro for bnp. q4 revenue was above expectation. it was a net income that missed expectation. down 6.7% at 2.1 billion euro. mentioned i.t. and restructuring costs and operating expenses were up 7% cost of risk up 52%. a positive effect looking at cib which is strong for bnp with revenue up 18% in q4 one of the traditional strengths of the bnp benefitting from the higher rate. equities which has been part of the business which has been pushing to get stronger that part of the business is weaker down 3.4% in revenue in q4 both of the areas were better than the wall street competitors. also, what investors wanted to

hear is what bnp would do with the proceeds of the sale of the u.s. unit. that is the question i put to the cfo last night >> we stuck our returns to 50% in cash and 10% in buyback we upped that to $5 billion. if we have done that, we have more than 77bi billion to reinvt in the business. i like to invest organically in businesses we have and accelerate growth. that is ideal. we have the platforms. we can accelerate growth it is the bottom line with no concerns of integration. that is the key thing we prefer. there could be some eventual technologies, but that's what it would be we are not looking at major

acquisition. it is organic growth. >> no major acquisition for bnp. this return to shareholders is responding to a dividend of 3.9 billion euro per share they increased the projections from 2025 and revised the objective. they are looking at growth of 9% p w which was 7% previously. a bit of short pain with the miss on profit and longer term positive story >> annette -- wow. apo apologies. charlotte, thank you for that. coming up on the show, rescue efforts continue after thousands are killed in an earthquake in turkey and syria

we'll be live from istanbul after this

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welcome to "street signs." i'm arabile gumede >> i'm joumanna bercetche. these are your headlines >> bp doubling the profit and adds $2.75 billion in share buybacks as the ceo defends himself from criticisms on renewables saying the company is making significant investment >> we will spend up to $8 billion more in our transition growth engines and at the same time, invest up to $8 billion more in oil and gas. that is what provides the energy security siemens energy runs out of steam dropping to the bottom of the stoxx 600. that is amid charges that the wind unit is falling the ceo says the business looks

good >> at the same time, the low level in the wind business. and losses narrow at softbank vision fund, but still with a net loss over 900 billion yen as the cfo talks about the highly anticipated ipo. and revenue for bnp is strong amid the economic uncertainty. >> it could be a slowdown. it could be a stagnation it should be short in duration and business should pick up. the death toll rising to above 5,000 people after the series of earthquakes structk steelers struck turkey and syria. snow and sleet and ice and blowing winds complicates recovery efforts

> . >> over 5,000 people have died across turkey and syria after the 7.8 magnitude earthquake hit the region yesterday scores of aftershocks followed, some as high as the original quick. buildings have collapsed while freezing weather is hampering rescue efforts hadley joins us with more. as the death toll continues to rise, what is latest there >> reporter: joumanna, one of the biggest questions is how quickly they will reach potential survivors. the first 24-to-48 hours here are crucial. international aid is pouring in. the question is not about aid, but the ability to get the aid to the people who need it.

the earthquakes struck the country and ten provinces have been affected. thousands of buildings have been destroyed and damaged. unfortunately, folks are still searching for loved ones i want to bring in our guest who has been talking about the destruction among the humanitarian disaster. >> let's acknowledge the fact the disaster transcends politics it doesn't change reality when it comes to direct investment coming to the country. turkey is a large country. it deserves the long-term capital that countries of this scale requires we are in an election cycle, but it will be most likely one of

the most consequential elections in history >> is this going to be a post erdogan country? how does that change strategy? >> whether it is post-erdogan or continue with the same theme, no one knows at the moment. what investors will look for and rightly so is the propensity of the country to insurtigate credible reforms if you go back to the first part of 2000s, turkey was a rising star and that lost credibility in the last decade if you can segue back into turkey with credible reforms and fiscal reforms with investors are waiting on the sidelines and

investors waiting to invest in the country. we are in the business of managing risk. we have to price that risk to manage it appropriately. at the moment, as it stands, it is difficult to price turkish risk for the moment. >> the risk, frankly, politically to president erdogan with this crisis this hit his base. the people who elected him over 20 years how difficult is it for him to keep that credibility with voters >> before the disaster st struck turkey, we have been dealing with inflation issues. people are getting poorer. that is a global thing middle class are getting poorer. poorer people are getting poorer here is the graphics >> the heartland >> what this will do is difficult to tell because we are just live in the situation

it is a humanitarian issue this transcends local polipolits the handling of the crisis is a significant factor in seeing how the voter base sees it this will not make the core economic issue goes away today and tomorrow i think four months is a long time in politics anywhere in the world given the geopolitical context we all go through globally turkey is an important actor in the climate. we will see and find out over the next four months >> has it been nervous to watch president erdogan's actions? as a nato member with the close relationship with the russians has raised eyebrows with the west we are talking about a nation that buys weapons from the

russians and is looking to put in major energy infrastructure >> let us step back and nato has been in the headlines. turkey is the second largest in the nato contribution. i don't think this shifts turkey's moment in nato. however, we are living in interesting times. ever since the end of world war ii and the set up of the global liberal world order, things are changing we are living in proxy wars. the whole world is requiring incredible mediators to facilitate transactions. that is the dry fact does it make me nervous? the whole thing makes me nervous. the russian invasion of ukraine

and it has shifted the independence on energy and what it means for turkey who provides a bridge with europe and the east i'm nervous. again, there are so many unknowns about the weapons part, again, buying weapons from russia is a tricky subject it is an interesting dynamic going on it is not an easy place to sit in the middle of the growing world. cooler heads have to prevail we have to see if they will. >> enemy of my friend. thanks for joining us on cnbc. joumanna, back to you. >> fascinating, hadley all eyes on the elections in may as far as turkey is concerned as the lira is at record low.

and google announces arrival to open ai's chatgpt bot they will open to test users before a public release. microsoft is expected to make an ai related announcement which is scheduled for 6:00 p.m. cet. microsoft has an investment in late january and investors are eyeing an integration of the chatgpt bot with the bing search en engine joumanna, this is interesting. if they go to the bing search engine, google has a bigger search engine. the ceo had an example of asking the easier instrument to play with the piano and guitar.

instead of blog post, it gave a conversation of what it is you want to achieve. >> what was the response the piano or guitar? >> i'm trying to view the video. i'll give you a clear answer >> this shows there is an issue for ai which has been around for years. it has been accelerated with efficiency and the likes of the programs that can actually come up with content and prose in a way that is not nonsensical and can help efficiency. people are talking about it being a complement to education and education tool i wonder what impact this will have on broader industries and jobs we talk about the replacement of human jobs by ai and robots. you have to think there will be some replacement if the likes of

microsoft and google and baidu are coming up with a form of ai. >> where was this when i needed to do my homework? a few schools have banned it from writing essays and what not for them very interesting technology continuing to grow our u.s. colleagues will be sitting down with the ceo of microsoft satya nadella. tune in for that at 8:00 p.m. c cet. in hong kong, baidu stock is soaring after the chat bot service. and coming up on the show, president biden is set to deliver the state of the union address. can he win over the divided congress we'll discuss next

welcome back president biden will give his annual state of the union address to congress tonight. the first since republicans took

control of the house of representatives. biden is expected to strike an optimistic tone and use the speech to reaffirm promises restoring the economy and uniting the country. the president will layout the case for re-election in 2024, although no formal announcement is expected. foreign policy is the theme of the annual address as tensions with the u.s. as well as china mount. the u.s. is working to recover debris from the suspected chinese spy balloon shot down off the coast of south carolina. biden says it was the right thing to do. >> we made it clear to china what we were going to do and they understand our position we will not back off we did the right thing it is not a question of weak it is reality. >> the director of the center of united states politics from london joins us now.

thank you for joining us let's start off with the expectations for the address itself despite the low approval ratings in the 40s, of course, yes, he lost the house of representatives, but he will make note of the key successes in the last two years. can we expect anything other than a cold shoulder particularly from the republicans and maybe some in his own party? >> thank you so much for having me you are right. the state of the union address is a victory lap for presidents. this is a platform for joe biden to highlight the key accomplishments and informally kick start his re-election bid if he chooses to run we will hear about legislation that has been achieved $1.9 trillion stimulus package and the infrastructure bill and bipartisan legislation on gun control. push through of student debt

relief the chips act. most of all, the strong job figures and less inflation despite the rocky economic outlook ahead. i think when it comes to republicans, what they will get is a cold shoulder republicans really have been gearing up over the last month or so for a pretty brutal fight against joe biden ahead. they promised obstructionist and i don't think they will be impressed by anything that joe biden says tonight >> despite that, thomas, the republicans have been divided. clear example is the speaker's vote which went on for some time can biden rope in a few of the right-leaning republican members with the bipartisan rhetoric >> that is optimistic and that is what joe biden are hoping

for. republicans are divided, but fairly united to joe biden's agenda we saw all of the wrangling among the so-called establishment figures and hard right. i think when it comes to putting forward the opposition posture toward the white house, it is hard to make the case that all republicans or the vast majority of them are not squarely behind the agenda salivating at the opportunity to investigate joe biden. i think despite some of the challenges that kevin mccarthy, the house speaker, in getting all republicans on board with certain pieces of legislation, i think there is opposition to the white house is clear >> that is clear thomas, one question people are asking is whether or not president biden would make it clear if he would like to run

again. is that a possibility? could he mention something of the sort at the state of the union or lay the ground work for it >> i think joe biden has been delaying this decision i think to an extent, there is a reason for that. there is no rush from his standpoint if, for example, he decides not to run, then making some indication of that early on, essentially would make him a lame duck. if he decides to run, there is no down side to waiting. at this point, he will go ahead and indicate that his intent is to run i would doubt we will see anything explicit in this speech i think it is unlikely these kinds of speeches, although political, used less for this purpose you know, i think at this point full steam ahead

>> i think the major two pieces of legislation that he in this term, if he is reelected, will be remembered for the inflation reduction act and the chips act. both are significant if you think about it from the u.s. industrial policy perspective. despite that and despite many businesses supportive of the legislations and subsidies offered and tax credits, et cetera, his approval rating has not gone up. why do you think that is the case >> it is interesting you know, to some extent, i think you could make the argument that there is almost now a ceiling on republicans whether they are democrats or republicans in terms of the approval ratings they could get. low 40s approval rating wasn't so great previously. to an extent, that is true this may be the new normal we saw this with trump getting above 40% of the american

populous on his side i think polarization explains that to the larger extent. you have a fraction of americans that will always support a democratic president or always support a republican president a few on the fence you know, 40% or 45%, it may be really difficult for presidents going forward to inch much above that >> not a good state. it is essentially becomes a state of sclerosis final question, just about the state of the union to what extent do you think the shooting down the balloon with china is expected to come up if at all >> i think they will come up it is almost impossible for joe biden to avoid it. he received a lot of criticism for his handling of the chinese spy balloon. it democrats said what he has done

has been appropriate he listened to the advice of the military to the extent this is an issue this will blow over. to my mind, it is hard for me to imagine both parties aren't well aware of the surveillance doesn't happen nmore or less on the daily basis. this happened to be over a lot of experts who suggested this is china trying to say we can do this and what are you going to do about it. you know, joe biden has to address this the challenge with china is one of, if not the, primary geopolitical issues facing the presidency you know, i think to a larger extent, joe biden will downplay it to the larger goal is tout his accomplishments. >> thomas, he will have to tap into quite a bit of negotiating skills as well for this state of

the union. thomas gift. director of the center of the college of london. jay powell is set to give a speech today and many investors hoping he offers more clarity. the fed raised interest rates by .25% on wednesday as expected powell promised more rate hikes are to come. stocks rallied as investors chose to focus on the disinflation comments. stateside, our colleagues will speak with neel kashkari today. that interview is coming up at 12:30 cet. this is a fairly interesting one. we heard from others as well bostic talking about more work needing to be done especially with the jobs number on friday

happens more than once more work could be done with the interest rates meaning they could go higher for longer >> i think the take away from the non-farm payroll print is the labor market is very strong and markets had to price in for that fact that the u.s. central bank can be restrictive for longer that means they priced in higher terminal rate around 5% and a longer period staying at the restrictive terminal rate. this boils down to the labor market if the labor market is that strong and then it does certainly keep the pressure on the fed to keep rates as tight as possible in order for them to be assured that wage pricers are not persistent over the year until they see that happening, i don't think they will let up on the rhetoric we could be in for a rather hawkish surprise today if you look at the composition of the

numbers recently there was one exception which was the employment cost index. it surprised a little bit to the down side. that is one data point. >> it is about the consist send -- consistency of the data and how long it stays there. i would be surprised if it headed in a different direction. quick look at the european markets which were tilting positive banks coming into focus. so with the likes of sniemens >> that is it for the show i'm joumanna bercetche >> i'm arabile gumede. "worldwide exchange" is next these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or

part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

it is 5:00 a.m. in new york. here is the top "five@5. one fed head nearing the term for stocks the buyback blow back rising as another oil giant posting profits. the ai race heating up developments overnight having some running to sector leaders. and 11th hour funding deal secured for bed, bath & beyond an