– This is the script of CNBC's news report for China's CCTV on October 15, Thursday.
Welcome to CNBC Busines Daily, I'm Qian Chen.
WALMART LOST NEARLY 20 BILLION DOLLARS IN MARKET CAP AFTER SURPRISING WALL STREET WITH NEW EARNINGS GUIDANCE AT ITS ANNUAL INVESTOR MEETING AT THE NEW YORK STOCK EXCHANGE.
NO ONE SAW THAT COMING.
THE WORLD'S LARGEST RETAILER LOWERED IT'S SALES OUTLOOK FOR THE CURRENT YEAR
-- CITING NEGATIVE CURRENCY IMPACTS -- AND SAID THE COST OF HIGHER WAGES AND INVESTMENTS IN ECOMMERCE WILL LOWER EARNINGS BY AS MUCH AS 12 PERCENT IN 20-17.
For the first time Wednesday, Wal-Mart detailed next year's costs of raising wages for its more than one million store workers. In April, the company raised the minimum hourly wage it pays those employees to $9, and will raise that to $10 for most in February.
The higher pay will add $1.2 billion to costs this year and another $1.5 billion next year, the retailer said.
ONE OF THOSE AREAS IS INVESTMENT IN WALMART'S HALLMARK -- EVERYDAY LOW PRICES. THE RETAILER DIDN'T GO INTO DETAIL ABOUT *HOW* IT WILL EXECUTE, BUT EXPECTS TO SPEND ROUGHLY $2 BILLION TO CONTINUE TO DELIVER COST SAVINGS TO CUSTOMERS.
But more investors are concerned about the competition from e-commerce giants like Amazon.
Markers: BARTON CCTV in/out
CLN STREET SIGNS 10-15-2015
[D.R. Barton Moneymorning.com Chief Tech analyst] "110906 customers are fleaing, not just walking slowly... that's a big deal.100929 "
Amazon surpassed Wal-Mart as the world's largest retailer by market cap in July.
The retailer noted that it would funnel about $1.1 billion next year into e-commerce and digital platforms. The investment boost comes as Wal-Mart tries to combat sluggish sales.
[JAN KNIFFEN, J. ROGERS KNIFFEN WORLDWIDE ENTERPRISES CEO ] "I DON'T THINK THINK THEY HAVE A CHOICE OF HOW THEY'RE GOING TO COMPETE. THEY HAVE TO BE COMPETITIVE WITH THE AMAZONS OF THE WORLD, THEY GOTTA BE COMPETITIVE IN THE GROCERY SPACE. THEY HAVE TO DO WHAT THEY'RE DOING. THEY HAVE TO RAISE SALARIES WHICH WAS A PART OF THE HIT THAT THEY'RE TAKING HERE I DON'T THINK THERE WAS AN OPTION HERE FOR THEM TO DO SOMETHING DIFFERENT, THE PAIN IS HOW MUCH IT'S GOING TO COST TO GET FROM HERE TO THERE."
This represents a "massive tipping point for e-commerce," Founders Fund partner Geoff Lewis said.
"People in the technology industry have been predicting that brick-and-mortar-based businesses like Wal-Mart are going to end up really struggling, and I think that that's actually now coming to the fore in this powerful way today," he told CNBC's "Squawk Alley."
Much of Wal-Mart's technology investment to date has been focused on driving efficiencies around inventory management, supply chains and logistics, Lewis said. While the retailer has been "among the best in the world" in doing that, the company has extracted all the value it can from those back-end improvements, he added.
"At this point, the technology investment that they need is one to drive growth, to drive sales growth with consumers, and they are sort of massively handicapped on that score," he said.
[DOUG MCMILLON, WAL-MART INC. CEO ] "WE GOTTA BE THOUGHTFUL ABOUT WHAT WE DO AND NOT EVERYTHING WILL HAPPEN OVERNIGHT. BUT WE'RE CLEAR THAT WE HAVE TO WIN IN CERTAIN AREAS
Shares of Wal-Mart plunged as much as 10 percent on Wednesday, as the company shed more than $20 billion in market capitalization at the stock's low.
CNBC's Qian Chen, reporting from Singapore.
(Lebeau On Cam)
Here in the US Tesla is taking a big step forward when it comes to developing autonomous drive vehicles. Today Tesla is pushing out software that it calls Tesla autopilot. What is tesla autopilot and why will it now be accessible to thousands of model S and model X owners? It essentially allows you to do semi-autonomous driving when you're behind the wheel.
What's semi-autonomous driving? For example the autopilot technology has auto lane steering so the vehicle will stay in the lane by itself without you holding the steering wheel or controlling acceleration or breaking.
There is also auto lane changing where you can change lanes if there's not a vehicle next to you, we tested this out in the west side highway here in Manhattan and yes it does check to see if there's a vehicle next to you if there is one and you can't do a lane change it won't go over it will tell you it won't go over if it can make the move it will eventually change lanes. There will also be auto parking with many automakers have already put into their vehicles allowing you to do parallel parking without holding steering the wheel and there's also side collision avoidance. In a conference call late this afternoon here in the united states, tesla CEO Elon Musk talked about what kind of impact the auto pilot technology will have on not only tesla owner but on the auto public in general
SOT (Elon Musk)
I think this is going to be quite a profound experience with people when they do it. We've been testing it for over a year so we got quite used to it but I've noticed when I put friends of mine in the car, they see the car drive and they're blown away.
(Lebeau On Cam)
Tesla says it has been talking with the national highway safety administration as well as with other regulators as it has developed the autopilot technology and again this software, allowing semi- autonomous driving is being pushed out to Tesla owners starting today here in the United States. That's the story from here in the US back to you.