Has joined the hit parade. Months to it three join the s p and nasdaq. Has not happened since march 1 since all three close at a record. Like there isem any sort of big fundamental catalyst. We have a jobs report tomorrow, the Economic Data today was relatively mixed, jobless claims coming in a little bit worse than estimated but on the other end, manufacturing data better than estimated. All of it combined to send stocks higher. The dow, what we have seen since march 1, definitely has not been all sideways since then because the dow had a drop to midapril before trying to recover and reacting the record several times before finally perhaps making it today before the end of the session. The three major averages, a chart that looks at them since the election. Returns we have seen, the dow has consistently been the laggards into 2017. After the election, it was the leader for a while and it has been behind, particularly the nasdaq which has been the big winner since the election. One stocks that is healthy dow back the most since march 1 is up today, Goldman Sachs which fell yesterday after we heard warnings on trading revenue from jp morgan and bank of america. Unitedhealth group up after one of its executives spoke at a Conference Today and said the second half of the year should be strong with home depot also bouncing today by nearly 1 . These are the biggest point contributed two games today and some of the stocks that have been the most beat up after the past year arehe bouncing today with Signet Jewelers limited 8 , one of its executives speaking at a Congress Today and fitbit one ofg, cigna has been the biggest underperformance in the s p 500s and fitbit not in the s p but down sharply over the past year. This illustrating the brett of of thely breadth rally. Julia the world waits to hear president Donald Trumps decision on whether to stay in the paris climate accord. He is set to reveal his decision live from the white house at 3 00 p. M. Eastern time, maximum drama, will he make good on his Campaign Promise to withdrawal from Paris Agreement . Just start with what the likely expectation is, that he does decide to withdrawal. That does not mean out today, it means out in over four years, i believe. Explain what this means. Long process of getting out of the deal, under the terms of the agreement, country has to wait until november of 2019 to submit its intention to withdraw. After that, a oneyear cooling off period. Oring that time, a president country can change its mind and reverse course. There is plenty of room for new even if points on this, the president announces his plan to withdraw. The way sheike described it, maximum drama with your president having an announcement in the rose garden like it is a reality show which it has become in some ways. Talk about the corporate pressure that has been building in recent days when elon musk pushing for the u. S. To stay and maintain a leverage in the global arena. A lot of talk about how the president response to whoever he last heard from, is this making an impact . There have been scores of Corporate Executives that have been making this case over the past few months. The pressure has intensified in recent days because of that reason. A sense that you want to make this argument right as the president makes his decision. The lastminute appeals by tim cook and elon musk, arguing that the u. S. Would forbid is role as a Clean Energy Leader if we abandon this agreement. And cede that leadership to china which is the leading carbon emitter. Julia do you agree that this could be a seminal moment for this administration in terms of a step back from the world stage , whether competitive in this or leadership on the climate front . I question whether you have a sense if the ceos, they go, how much further can they support this administration if this is the direction it wants to take . Elon musk made clear yesterday that he plans to leave his membership on various white house advisory councils, if the president makes this decision. Interesting to see if he is the first of many to do that. What is interesting about the paris accord, it is a symbolic, the u. S. Involvement is very symbolic in nature. Trump is moving independently through his own authority to reverse a number of obama era climate regulations that were seen as essential to meet our target. That is happening regardless of whether we stay in the accord, so it is symbolic and significant for those reasons. Scarlet there is another option, if President Trump wanted to keep the u. S. In the paris accord, he could freeze u. S. Climate financing. Talk about the extent to which the u. S. Has delivered on the money it promised to spend and where the president can make a difference. Under president barack obama we committed to dedicate 3 billion to a United NationsGreen Climate funds to help developing nations, those on the front line of Climate Change. The former president put down a one billion dollars down payment and donald trump has said no more money going out the door, he did not ask congress to deliver the money and congress, republicans in congress indicated they would not do it even if asked. That is not likely to be slowing flowing in any case. Scarlet thank you. We will continue to stay on this topic. Even tuned in to Bloomberg Television for the Climate Change announcement at 3 00 p. M. Eastern in the rose garden and later on we get the reaction from tom steyer, the founder of Nextgen Climate at 3 45 p. M. And then richard branson. Julia the accord was always just an agreement, never binding , he did not have to abide by this, just voluntary. Scarlet and not a treaty because president obama did not have the votes to get a treaty. Julia there is a symbolism here that these targets were only voluntary, not binding targets. You could remain in and slipped on the target. Scarlet it is all about optics. A bloombergo inclusive with Morgan StanleyCeo James Gorman saying there is too much uncertainty over geopolitics and the president s agenda to excite investors. , can the controversy donald trump deliver on his ambitious agenda . Here is what he told Tom Mackenzie at the banks china summit in beijing. Everybody is adopting a wait and see, that is part of because in the market and part of what a slave the lack of activity. The administration came out with a bold agenda. Obamacare,replace introduce major tax cuts, redo trade negotiations across nafta, china, the european union, reassess nato and defense spending. Reassess Climate Change. The applications to the u. S. Anchorage companies to bring encourage companies to bring jobs back to the u. S. This is a world of legislative and regulatory change potentially. Not surprisingly, for a new administration, it has been tough sledding. They have had to get their own house in order. The disappointment of the replacement for obamacare, the fact that there was more work done on the repeal been on the replace has set back the agenda a little bit. For the broader economy, we hope the administration can pull this together because we need progress on some of these legislative programs. Are you concerned about the u. S. Economy . About them encouraged u. S. Economy, the dirt a little secret is that the u. S. Economy is doing just fine. The dirty little secret is that the u. S. Economy is doing just fine, almost claimant, 4. 6 unemployment rate, very little inflation but starting to see early signs. Two rate increases and expect more. The Consumer Debt is a little high but housing prices have recovered from the crisis. State and local government deficits are under better control. The u. S. Economy if you look at it objectively, the u. S. Economy is doing just fine, not great but fine. Our markets not pricing in that political risks, are u. S. Stocks looking overvalued . Are do not think they overvalued, trading at a relatively high models but look at earnings. I do not know the exact earnings numbers out of the last quarter but up 10 , 12 yearoveryear. You have to look at the market the market reflects the future cash flows, not the past and the future cash flows suggestive of a growing economy. In that environment, people are surprised that market reached alltime highs but i would like to point out by definition, with the same model in a growing economy, every day you should reach a high, that is not a surprise but an expected outcome. The question is are we getting there because of the multiples have been inflating or because earnings expectations are growing . Or because right now, i do not see tremendous upside without further confirmation of the earnings story. I do not see an overvalued market. Julia that was our exclusive interview with the Morgan StanleyCeo James Gorman. Lets check in on the first word news with mark crumpton. The us trillion Prime Minister joining the u. S. And calling on china to rein in the australian Prime Minister joined the u. S. And calling on china to rein in north korea. They say they must be curtailed. China has the greatest leverage of north korea and with the greatest leverage comes the greatest responsibility. Brushedrime minister aside questions about the reliability of President Trump as an ally, saying australias relationship with the u. S. Is in the best of health. The israeli Prime Minister says the u. S. Decision not to move its embassy to jerusalem as for the prospects for peace with the palestinians. In a statement, his office said that it believes all embassies should be in what it calls israels eternal capital. The statement says that despite his appointment, israel appreciates the president friendship and commitment to moving the embassy to moving the to jerusalem. Soldiers wounded after a mortar attack in mali. The French Military says the attack happened in timbuktu, near a military base, 1600 french troops deployed in mali are cooperating with the United Nations. The peacekeeping mission there is the deadliest in the world. As the u. S. Supreme court enter the final month, justices pose for their class photo. The inaugural picture for neil gorsuch who was confirmed by the senate in april. The court will deliver opinions on several cases in the coming weeks, including one concerning religious liberty and another on immigration. Global news 24 hours a day, powered by more than 2600 journalist and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Up, autocoming advances on u. S. Sales gains last month with ford beating General Motors for the first time in a year. Live in detroit with more data and reaction. This is bloomberg. Julia this is bloomberg markets. Scarlet automakers rallying today after it made u. S. Auto sales mainly be estimates, providing some relief to an industry that has been battered. Gm sales miss but for come up yet chrysler, nissan, reported sales about expectations. Lets go to our auto reporter in detroit. I cannot help but feel there are shades of 2007 because the numbers were better but on some issues like discounting and fleet sales. Reminds me of 2007. Why do these investors not see it this way . I guess maybe they have baked in negative news and the idea that we are past the sales peak and they are just feeling like, not as bad as it could have been. These are better than expected in terms of volume but they are not high quality sales. Still pointst towards possible production cuts later in the year, certainly lower profitability, even in the second quarter. Julia does it take out some of the need for production cuts . To what extents will they have to do with will they take place in light of the fact that they were a little better . That clearly is what todays enthusiasm is on, the silver lining, by unloading these extra vehicles, presumably or hopefully profitably, that does mean that they are not as overstocked as they could have been going into the fourth of july and late summer when maybe you have to make some do something drastic. Hopefully that takes something off the table but i do not know much more they can push into rental fleets. We will see. Scarlet something that reminds me of 2007. The kinds of sales we are seeing right now. Are we talking about the popularity of light trucks and suvs at the expressive expensive small cars . Absolutely, crossovers, fullsize pickups and suvs had a good month, despite not as aggressive of and the of incentives, maybe demand on the business side that needs the fullsize pickups. Cars are really hurting. Hyundai numbers just came out, down 15 and they have the most car heavy lineup of anybody. Scarlet something we will watch. Thank you. Julia coming up, we will hear from the land court ceo on the opec commodity demand and the chinese challenge. From new york, this is bloomberg. Scarlet this is bloomberg markets, i am scarlet fu. Julia i am truly charley, Oil Production dominating the conversation at the st. Petersburg International Economic forum. Erik schatzker asked glencore Ceo Ivan Glasenberg about oil. To have totald control of the price and now they do not. The Shale Oil Industry has 5 Million Barrels coming out of the United States. Erik 10 million in total. Ivan shale oil itself, 10 Million Barrels a day. Opec got in a position that the more they cut, the hires the higher the price. , they stay alive and keep going. They do not have the control they did before because they push it up and the shale Oil Increases and that is what is affecting the market. It is a tough one. Erik how does it affect your business . Ivan we are not a big producer of oil, we have production around the world but not as big as come in comparison to the total trade we do. , from the trading side, you like volatility but not daily volatility which you get today. The narrow range which has been prefer trains you. A difficult trading environment in the moment. Opec, theink situation is a good reminder of how quickly things can change. I would like to conclude by asking each of you to share with us how you think things will look five years from now, tenures from now. 10 years for now, how will gloating relationships on trade will change global relationships on trade will change of oil dominates more commodity consumption. States does go down a more protectionist path . They do not have to be preconditions. Ivan in five years, i do not think the United States the commodity side i know i talk about, they will stop, they will monitor and make sure to subsidize commodities are not coming into the country. They will monitor that. That will have an effect on the market, the people will not export into the United States those types of goods. Where do i see it going in five years . The big move will be very big move, Mining Companies have been runs they had a good 2008, and china came and we were not ready and the supply was not there and everyone struggled to play catchup with Commodity Prices rallying until the financial crisis of 2008 because we cannot catch up. We saw the boom coming and everybody took 3, 5 years to build a new mine and then the new production came in post crisis. We ended up where we ended up and the Mining Companies we are not spending 75 billion dollars year, 25 billion a year and no new expansions. If we believe and i do believe, my colleagues believe, china is strong and you correctly said Southeast Asia is strong and have demand. Demand for commodities will continue. Scarlet that was an exclusive interview with the glencore Ceo Ivan Glasenberg. The chairman of bloomberg lp is a senior nonexecutive director at glencore. If you missed that conversation, check it out, that and all of our other top interviews and news stories trending on the bloomberg, this is the end of the last hour and we will talk about who else is coming up and what you can see here. The biographies of people on our shows miami going to come interactive television, the future. Julia the now. Time for the Bloomberg Business flash, the biggest stories in the news. Linda has reached final agreement with its merger with u. S. Industrial giant. The new entity will have the length the name and stock walmart is testing a Delivery Service using its own workers. Employees can earn at or paid to deliver goods at the end of their work shift. They have to use their own vehicles to deliver packages assigned near their homes. The test run at three locations in kansas and new jersey and aims to better compete with the Delivery Services amazon. Scarlet we have some headlines crossing, donald trump said to announce to announce the so we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Julia donald trump is set to be announcing the with drawl from the paris the withdrawal from the paris climate records. Tois said to be open reworking the paris terms in the interim. Its going to take more than four years to extract the United States from the paris accord if that is ultimately the decision. It appears, at this stage, that donald trump is willing to rework it in the interim. We will say at 3 00 p. M. Scarlet lets begin with oil, turning negative, losing its big games from earlier today. U. S. Government data showed the surplus in u. S. Crude is continuing to shrink. Inventory fell by 2. 6 4 Million Barrels last week. Iron or beginning the month on a down note after a miserable may. Futures in asia falling to a sevenmonth low, concerts month low amid concerns about supply. Of course, President Trump looking to save the oil industry, also talked about his goal to help the u. S. Coal industry. Take a look at this jar this chart. Andhows key Coal Companies their performance, normalized back to the election. The white and yellow lines showing Cloud Peak Energy as well as peabody energy, both of them lower. Cloud peak, the white line. Peabody in yellow. The index, in red, is basically even. Only nrg energy, in purple, has gained in the period, about 46 . It appears so far that President Trump has not been able to give the coal industry the lift he has been saying. Julia lets get back to russia and the annual st. Petersburg international forum. With bpked exclusively ceo bob dudley about the impact of the opec deal to extend production cut. Bob its an unprecedented agreement. I think it hasnt stabilized coming to a degree, the oil market. I think, if they did not come to that agreement, they would have lowered prices. I think they are bringing supply and manufacturing back into balance. Level, it willck take some time, but i think its going in the right direction. Erik rent is just north up 50. At the cuts not been extended have the cuts not been extended . Bob keeping everything equal, we would probably be in the 40s. Erik low 40s . Bob probably not. I think theres as much impact by libyan production. All these things can go up and down. Getting these agreements in place to keep the oil prices between 50 and 60, i think that is probably the objective. Suggests futures curve that oil will be trading in the 50s once these cuts expire. What reason is there to think that is the case with the cuts have required oil from dropping into the 40s now . Oil from dropping into the 40s ninemonth from now . Bob there are so many variables. They will look at all the data, the how the markets responded. I think we wont know until the very last minute. That the level of communication, cooperation, its sort of unprecedented. There is some concern, at interest, over whether opec and the russians and others have trapped themselves into a cut situation, where you have to keep extending the cuts because otherwise, the oil price is too low to satisfy your needs. Is that a possibility . Bob i wouldnt say theyve trapped themselves what demand levels continue to rise. Economic Growth Continues to grow. I worry about venezuelan production. Libya is up and down a little bit. Down eitherup and direction here. Cuts erik how do these affect the production share you get from rosneft, and other countries as well, such as azerbaijan. Bob we do have a share of decreaseso if rosneft production, we do see that go down. We see some of azerbaijans commitments to produce. I think that the loss of production because wed rather go for value over volume the value of the higher price probably offsets these reductions. Erik in other words, you see it the same way they do . Bob i do. Erik have we reached the point that opec, together with its partners, is beginning to take more control over the global oil price, or is this really a temporary situation . Bob shale is big. Who is the swing producer, saudi arabia or the shales . The shales are particularly healthy, especially in the permian. I think this is not a question thats been answered yet by the markets. Can one decision impact production very quickly and change the market levels . I think they also dont want any sharp shocks. Erik clearly, thats one of the things they are trying to avoid. Shale has become the swing producer because costs, particularly in the permian, continue to crater. Bob they are coming down. Theres also a lot of companies that arent generating cash. I dont see the cash coming back to the shareholders. Its an economic model that is not Crystal Clear to anyone either. Touchests assume wti 50. How much longer can those zombie producers continue to pump . Bob the permian basis is the exception. It can operate in the 30 range. I think it will be more difficult for some of the other basins. I think the Permian Basin can. Erik globally, how much further can you see cost going down . Weve seen them go down in these four areas as well. Bob it wasnt that long ago that Oil Companies make money at 25 a barrel, 30 a barrel. Readjustment costs can come down and they will come down around the world. Industry, continue down a cost curve with lower prices and still be profitable. The fivere above dollars a barrel. Above 55 dollars a barrel. Over the next two years, we could see 35, 38 a barrel. This year is an important year for bp. We have seven Major Projects that will come on the upstream. Three of them have started up, the other four are on track. This is an important year to get back on our financial framework. Weve had circumstances, fines and penalties in the top of mexico. Those are set now. Scarlet lets get you the headlines once again with mark crumpton. Mark as we mentioned moments ago, President Trump will announce that the u. S. Will exit landmark paris Climate Change agreement, according to a person familiar with the decision. Youre looking at a live shot of the rose garden. The president will make the announcement at 3 00 p. M. Washington time. World hotel and casino in manila says on its verified twitter account that its on lockdown after reports of gunfire. It also says the company is working closely with Philippine Police to ensure that all of its guest and employees are safe. The New York Times sites local media reports that explosions were heard near the vicinity of the hotel and that social media showed wounded and frightened people leaving the casino. Tactical police units have reportedly descended on the area. Vladimir putin denies that his government has been involved in hacking. Speaking to a small group of journalists in st. Petersburg, putin admitted that what he called patriotic hackers may have tried to protect russian interests on their own. Putin they, the hackers, wake up in the morning, read that something is going on in international relations, and, if they are patriots, they try to act on their opinion that someone is trying to our russia. Mark president putin said hackers cant seriously influence election campaigns. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Julia coming up, we have a date, or at least, fired fbi director james comey does. He will be testifying in front of the senate next tuesday, june 8. This is bloomberg. Scarlet the u. S. House is set to vote on the doddfrank overhaul on june 8, next thursday, the same day that former fbi director james comey is set to testify. I dont see much going on with the xlf or the kre. Both were fairly positive before the headline came out. Julia smaller cap names as well, actually. They hope a repeal will benefit those as well as the large banks. Julia lets head to scarlet lets head to julie hyman. It is up by 1. 1 . Contribute in quite a bit to the gains that we are seeing in the major averages as well. Some of what is going on has to do with deal activity or, in the case of ppg, lack thereof. Confirmed that it had pulled the offer and it will not try to process with this action. To date, the shares are up 15 . They first made the bid on march 8. They spiked and came back down. They had been climbing and came back down again as the parties were going back and forth. We got news from linda and craft and praxair. This will be the Worlds Largest supplier of industrial gases. Praxair your today, you can see the climate has had. Shares, in german trading, they have been doing well as investors position ahead of this deal happening. Isfor the x lb itself, it rising to a record close today. If you look at the underlying commodities, the materials that many of these companies produce, they havent necessarily done as well. This looks at the components of the bloomberg commodity index. Energy has underperformed. These companies dont directly make energy. In fact, it is going down. It is not necessarily a bad thing if you are making chemicals from petroleum, for example. Agriculture in blue. It has fallen collectively your today. Industrial and Precious Metals have done better this year. Lets turn to a developing story. Fired fbi director james comey will testify next thursday in an open session in the Senate Intelligence committee. Joining us is the White House Reporter for bloomberg news. Bring us up to speed with the details of this story. Are they going to be limits on what he can say to the Senate Committee due to the ongoing fbi investigation . Shannon i think thats a really good point that you raised. If people were hoping they would get all the answers from this testimony, i think the questions around russia, the Trump Campaign involvement with russia, whether the campaign did anything in inappropriate, those will continue. I think we will get Something Like one additional chapter in this story. For the white house, it just brings this russia issue back to the forefront. Weve had a few days where it hasnt all been russia, russia, comey, comey. Next week, its back into the frying pan and this issue will be, you can bet, the top news story for the days leading up and after it. Scarlet front and center for the white house. I wonder whether Jared Kushner, the president s soninlaw will be called as well, because he is the focus, if not the target of investigations into the truck campaigns dealing with russia. Shannon he is already said that he will testify if asked. I think it is almost inevitable that he will be asked considering that he made a very he played a very instrumental role in the Trump Campaign. Regardless if theres any activation any accusations or suspicion of him doing anything illegal or inappropriate, if you want to know about the Trump Campaign, you will want to talk to Jared Kushner. The news broke while the president was still overseas on the final leg of his trip. What has your reporting shown as far as how Jared Kushner is handling this new scrutiny as he returns to washington . Shannon he certainly feels and battle that defiant feels defiant and ready to push back against the accusations. His role in this white house, i cant emphasize enough how big it is. He is the president s most trusted, closest advisor. Hes in charge of things like veterans affairs, brokered a peace deal in the middle east, the opioid academic the opioid epidemic. To the president s agenda and the president himself, having a trusted, loyal ally at his side is something that is very crucial. Canlet can i ask julia i ask you about the closed door open nature of whats going on if someone is testifying . Is it that there is far more detail likely to come out if it is a closed session . What is likely to happen with jarrett eventually, do you think that will be closed or open . Shannon i think it depends on the subject, the level of sensitivity, the classified nature of the information, was allowed to come out in public. Jared, his lawyers have indicated that he would like to testify, like to get these things out on the table. I suspect that he would be open to doing something publicly to get his story in his sign out there and sort of help clear his name. The indications he has given and his legal team has given, he is happy to answer questions and be cooperative. Scarlet shannon pettypiece, a bloomberg. Comon about what Jared Kushner has been up to the past few days. In the meantime, it is time for the Bloomberg Business flash. Federal reserve governor jerome for gradualng Interest Rate increases as well as a jumpstart for Balance Sheet increases this year. Economy stays on track. Committed to be our mandate and we have to conduct Monetary Policy that would support inflation going up. That would enter into my own views about the appropriate level of tightening. Scarlet he also said he is keeping an eye on a slowdown in inflation. U. S. Sales growth is expected to slow for these restaurant between 6 and 7 down from last year. In each of the prior five years, sales and grown as much as 11 . One restaurant, hugo barra one restaurant, qdoba, says it is delaying new openings. Julia coming up, President Donald Trump is said to be planning to announce that he will pull the u. S. Out of the paris climate records at the top of the hour. Well go live to the white house for a preview next. This is bloomberg. Julia this is bloomberg markets. Scarlet at the top of the next hour, President Trump is expected to announce whether the United States will stay in the paris climate accord. People familiar with the decision say he has decided to withdraw from the deal. The announcement has not been made. That will happen at 3 00 p. M. Lets bring in every rossman, a climate and Energy SupportEnergy Reporter here at bloomberg. As julia was mentioning earlier, saying you are going to pull out does not necessarily mean that, by tomorrow, you will be out of the climate accord . The climate accord was designed to have a fouryear pull out period. Draw your own conclusions as to why that is the case. [laughter] it might have been a handy thing, well see. Scarlet the u. S. Couldnt ratify this treaty, right . The u. S. Is such an influential player that, for a quarter century, the dynamics between the executive branch and the senate have driven whats possible on the international scene. This isnt an agreement, it wasnt guidelines. What would it mean if donald trump said, we are pulling out, however, i remain open to negotiation over the next three years. This is also the point. Its really a perpetual cliffhanger. Julia do you think he can keep all sides happy . Shortly, hes surely hes facing pressure from all sides. Whots not entirely clear is trying to make happy. I think the safest answer is the voters who put him in office and who have expressed, through polling, disagreement with the paris accord. If you look at the other side, the sheer volume of firepower, rhetorical firepower that the president has heard from just in the past 24 hours makes it an absolutely remarkable, possibly unique about a pressure a sitting president has had. Has had while hes publicly making a decision. Julia weve been talking about it as symbolism. Its a statement about u. S. Intentions and their role in the world. One thing that has always been important to keep in mind about the u. N. About the climate process is that there is an unspoken, unquantifiable soft power that comes from it. When the community of nations, in 2015, said, this is it. This is something Everyone Needs to work on, that is a powerful, if unquantifiable signal to those around the world. Scarlet thank you so much. Of course, will come back to you with more details once the president does make that announcement. Few more minutes to go until we get this announcement from donald trump. This is bloomberg. Scarlet breaking news. Any moment now, President Trump is going to enter the rose garden and is expected to announce that he will pull the u. S. Out of the paris climate accord. The announcement from the president should come at the top of the hour so we will keep you posted. Im scarlet fu in new york. Julia im julia chatterley. This is bloomberg markets. Well have complete coverage of that announcement from donald trump and, of course, its impact. sining us now is bloomberg chief washington correspondent at the white house. In new york, erik paulsen, who had the cover story. Kevin, im going to start with you. We were just talking earlier that this is about something much bigger than Climate Change. This is about the united state role in the world and leadership in technology and all aspects of advancement here. Im here at the rose garden. We are waiting for President Trump to come out and announce that hes not going to support the paris accord agreement. I can tell you that there is heavy scrutiny from the Business Community for the president to stay in. Musk, who says he has threatened to leave the Business Council advising the president. He has completely put the United States on back footing for this particular issue. There was a letter circulated earlier by morgans family, jp but Morgan Stanley, jp morgan, citigroup, advising him not withdraw. With he told me that the plans to advance Paris Agreement are very much underway. All of this comes as the president is expected to send a jolt to environmental groups. Julia let me bring in bob republicanormer congressman from south carolina. Bob, great to speak with you. One thing we should mention is that, long ago, you were a Climate Change down her Climate Change down climate havee doubter, but you taken on a different position here. You are very much a conservative and you understand the concerns that the right has when it comes to Climate Change. The overlap between conservatism and environmentalism. There is some alignment, isnt there . Bob perhaps the word conservative and conservation have something in common. Of course, they do have a great deal in common. Conservatives believe in conserving what we have and keeping the beauty of the earth. But, there are some people that are sort of populistnationalist that go around saying that we pillage the earth. Julia you say that, when he goes down, hes going to take erism with him. I understand what you mean with the hoaxerism, but what do you mean as, when he goes down . Bob we are certain that donald trump wont forever be in the white house. Thats a good thing. Maybe he gets four years. If he does, when he leaves, im quite certain that hes going to take climate hoaxerism with him. Hes in the process of becoming the worldwide face of climate hoaxerism. That may be all right for us. As he leaves, so will climate hoaxerism. It will become revealed for what it is, a very small group of people who are holding back the rest of the world. Here we have donald trump aligning us as a country with only two countries in the world, syria and nicaragua. We really are on the fringes of civilization here. What were going to see. When he leaves, well see climate hoaxerism go with him. Scarlet theres so much focus on how syria and nicaragua rejected the paris accord. But for very specific reasons. Syria was in the middle of a civil war and their leaders could travel couldnt travel to negotiate. Nicaragua didnt sign on because they didnt think it went far enough. That makes the united date an outlier on a scale that is hard to fathom. When you combine that number out of the 197 parties to the agreement, one has decided to leave. On the other side, you have this incredible firehose that has been aimed at the white house to however hours many months we are in now. Uniformt an incredible opposition to the president s position from virtually every highranking ceo, captain of. Ndustry a small number of coal industry fossil fuel industry influencers. Julia i want to go back to you to pick up on that point. Theres been a clear distinction within those close to donald trump and within the administration. Who supports this and who doesnt. Does this Say Something about the dominant of the power play going on around donald trump and in washington here and who seems to be winning at this moment . It was just earlier this week that general h. R. Mcmaster and gary cohn came out with the wall street journal and that said does not mean go it alone. Those within the president s inner circle, clearly divided on this issue. The president s daughter and Senior Adviser ivanka trump coming down in favor of it, including some other folks, including former exxon mobil ceo , secretary of state rec tillerson. Rex tillerson. The koch brothers. Of the ceoseen made and prominent financial interests against his decision to remove the United States from the agreement. For this toushing happen, most predominantly, Coke Industries. This has been a most predominantly, koch industries. This has been a devastating blow to environmental groups. From big banks to small businesses, they have come out forcefully against the decision. That does represent a marker of sorts and potentially a turning point in which you have prominent ceos, led, of course, by elon musk, actually working against the president s policy issues. While they have joined him on other matters, this would be the first time that they are bucking the white house. Julia its interesting, isnt it . Who is influencing donald trump here, the most extreme or conservative elements around him . We have had a comment from the viewer and i think it is quite relevant. Which countries are providing funding to the paris climate agreement and what is the percentage of each contributor . Again, to ask a question that doubt askingis no here. One thing to keep in mind about the Paris Agreement is that it is sort of a federation of voluntary national commitments. Its doubt asking here. Not a hard and fast, enforceable, legal climate treaty. Julia its guidelines. Its guidelines. One thing that more developed nations have committed to is giving adaptation and Energy Transformation funding for a country. The president has broken with his immediate predecessor in deciding, we probably will not honor our climate funding commitments. One of the very interesting questions to watch, and a very concrete result of todays decision, will be what happens to that funding. Countries had been anticipating it and planning to do preventative climate measures with it. We dont know what happens to that money yet. This is perfect the specific question is about the breakdown of who finds what, and i would who look who fund what, and i have to look that up and get back to you. The funding reach is of great concern to those on the right. What did the group that you call the environmental left get wrong when they discussed Climate Change . How can they make their case more effectively . They need to talk about Reasonable Risk avoidance rather than apocalyptic asians. Thats the different than apocalyptic visions. Thats the difference between the environmental left and what we call the ecoright. We say, weve got risk, lets move to avoid that risk. The languages are much different. If your bank on the bar if you are on the environmental left, you talk about the great risks. What they dont realize is, its causing people on the right to basically respond with denial. Allou tell me that were going to die this afternoon, i might as well eat, drink, and be merry. I may as well give up. But if you tell me that ive got that by some changes i can live and prosper, then i can live with that. The left talks about the language of scarcity and doing with laughs and gives you the feeling that you should feel guilty. T talk aboutorigh more energy, mobility, freedom. We describe ourselves as energy optimist and climate realists. Scarlet in other words, a lot of hyperbole on the left. Julia the other thing that ive read about this that i have a question on, some of the other options here, can he withdraw from the u. N. Treaty . You are looking at me with wide eyes have to say, why are you asking me that . Or, he could send it to the senate. Theres a few main paths. He can do the threeyear option. There are a number of plans. The threeyear option was built into the Paris Agreement to prevent a hasty, impetuous exit. He can go back. The senate, in the early 90s, ratified the United NationsFramework Convention on Climate Change, the treaty that set the framework for 25 years of climate negotiations. Im doing that would be a major, and would be a houses of four white consistent policy. Its also a bigger smack in the face to the rest of the world community. Trump is all about moving against what is expected. Over in the rose garden, let me ask you, the president has really made this an issue. Hes talked about it on the campaign trail. I wonder, why is he so concerned with the promises hes made to his base when is already redacted on other promises such as calling china a currency manipulator . Kevin thats a great question. We are here live, waiting remarks from President Trump about his announcement to remove the United States for the paris accord agreement. Like seen top advisers gary cohn walking in. Grover norquist of americans for prosperity, who spoke on our Network Earlier today about why moving from the agreement is noteworthy. We should note that the president is from elaine a Campaign Promise here today but it also comes on the same day that he has punted a decision to move the u. S. Embassy from tel aviv to jerusalem. The administration feel this is a way to fulfill a Campaign Promise. They also feel that this is, for lack of better terminology, a waste of money. They feel that they will meet emissions standards without the paris accord agreement. They also feel that technology will help to innovate any type of Climate Change. There is skepticism that the agreement will actually help. I cant underscore this enough. When you have big banks like citigroup, Morgan Stanley, a host of others, all saying that this is a bad idea, this sends the wrong signal to our global sends a very this clear line in the sand. Clearly a lot of the preannouncement celebration going on. Julia getting louder and louder. Scarlet you have a question for the former congressman . I did. Percent years, youve been an outspoken proponent of conservatism and climate policy. Are you lonely . How many others share your penchant for the topic or your interest in these solutions in washington . Bob the field is getting more and more crowded and we are happy for that. For example, the alliance for Market SolutionsJust Launched two days ago. Thats an exciting effort among Business Leaders area the Climate Leadership Council launched about two months before that. Street. Our friends at r the space is getting sort of crowded, which is good. We have a lot of people on the ecoright, as we call it, coming forth to say, you know what, this is a real problem, and weve got Free Enterprise solutions. Thereshe reasons that been so much rejection on the right is that weve assumed that the solution is a Big Government that will tax us or, take away liberty. Look to show a small government solution, that if you just bring accountability to all the fuels, cut all their costs in, eliminate all the subsidies, then the Free Enterprise system can deliver innovation. The reason that the renewables youd always propping up subsidies is that the incumbent fossil fuels arent accountable. If they were simply held accountable to their Health Damages and their climate damages, then you wouldnt need any production tax credit for wind, you wouldnt need any investment tax credit for solar. Those things have become superfluous because, on a level playing field, those new technologies can eat the incumbent fuel. Julia thats quite interesting. We are seeing that from some shareholders, the likes of exxon this week saying to the board that they want Greater Transparency and accountability from the company. I want to pick it and ask you about your role as a former republican congressman. You made some point in comments about donald trump earlier. I want to ask you about the more conservative elements in the administration and the role of steve bannon and whether you are concerned about his influence on donald trump and the direction that this appears to be taking the administration has something perhaps far bigger than something on Climate Change. Bob i am very concerned. As a conservative who sees populist nationalism for what it is, and that is a very dangerous i wouldnt even call a philosophy, it doesnt rise to that level. Populist nationalism doesnt really have any coherent thought to it. Its a language of grievance, sort of a protest Movement Without any head to head. Im afraid what well hear in the rose garden soon as a lot of heart and no head. That is, ive got to assume, steve bannon influence. The good news is, as a conservative, i sit here fairly confident that can serve as, in this collision that conservatism, in this collision, will do well. We have a collision underway with conservatism, a car with a sturdy frame, developed over decades of thoughtful work, and this other car, populist nationalism, where the front end is made out of total plastic. When they run together, i know which car i want to be in. Julia do you think theres a risk here that some of the ceos that rallied around donald trump a, actually, donald trump say, actually, this isnt what i signed up for. And other people say, this is not what i voted for either. In trying to please a small subset of his voter base, that donald trump alienate the majority of his people . Scarlet some technical difficulties there. Julia i feel like that is the important question. He feels very passionate about it. One question, much broader even then this topic, that people have been asking since 2015 is,ry season in what defines a party. Whats coheres people to a party and what would leave what would cleave them from that party. In a lot of different ways, theres cognitive dissonance between people embracing the party and a party that embraces the president , who appears to be doing things that historically are inconsistent with that party. Julia do you feel that this could be one of those seminal moments where people take a step back and go, we can deal with all the noise, the russia probes, the Jared Kushner issues, but actually, this is a change, a step forward in the direction that we are not comfortable with . There have been so many moments during the course of this young presidency and during the current pain during the campaign that you would expect, if things were historically regular, we would have reached a number of seminal moments. Either the meaning of seminal moment has changed or, i think law, something that cant go on forever. At some point on forever will stop at some point. Scarlet we are looking at the audience in the rose garden. You see steve bannon take a seat next to gary cohn. To his left is right previous. Talked with a little bit about the divisions in the west wing among the president s various advisers. We know of uncontrolled had been pushing the president to reconsider his intention to withdraw from the climate accord, bringing different voices to him to address that. What can you tell us about how the breakdown looks . Kevin great question. Were here in the rose garden waiting for the remarks to begin. Senior Administration Officials trickling in. I spoke with one administration of a show about this earlier this week, who said that the reflection of thoughtful within the entire Republican Party is represented within the administration. Of course, there are several division on a host of policy issues. Case in point, what we are witnessing today with the paris climate agreement. They feel this president is a Campaign Promise. They feel there is a large portion that believes that the paris accord agreement is simply a piece of paper, that it is a waste of money. They have met with several prominent business institutions, interest groups, who pushed back against this heavily. I spoke with a source very familiar with the upcoming United Nations meeting in november on economic and environmental protection. They told me that they are still planning ahead to have this u. N. Meeting surrounding the paris accord agreement, with or without the United States. The president is expected to announce his removal from the agreement, it is notable that, earlier this week, german chancellor Angela Merkel coming up public saying that germany would not be able to wait on the u. S. On a host of issues. The United States, according to one republican aide that i spoke with earlier today, saying that, at the end of the day, we could have a situation where the u. S. Needs these emissions standards without being in it. That could be the hope right now for some senior Administration Officials who are against the president removing himself from the agreement. Scarlet lets get a little more perspective. There is a precedent for countries moving on. There is an interesting president that hasnt been spoken about or interesting precedent that hasnt been spoken about or written about a lot, a littleknown u. N. Treaty about the law of the sea. It ensures territorial waters. Were in the weeds. Scarlet seaweeds. This has been ratified and forced for like 20 years and enforced for like 20 years and the u. S. Has never ratified it and is a major outlier. But, in the time it has been in lived tohe u. S. Has the letter of this treaty. The reason for that is that there have always been conservative senators who just disagree with that lived to the letter of this approach to foreign policy. Thats impressive with United States needs its cake and has it, too. It lives within the International Framework without actually belonging to it. Scarlet thats what donald trump maybe thats what donald trump wants to do, right . Julia a Research Group says even if they meet the stated goal, the world will heat up by by 2100. Ees fahrenheit are we able to go back to kevin . I wanted to ask kevin a quick question again about this about if this decision is ultimately to reject the climate accord, can we make a statement about the dominance of the influences that donald trump faces . On the one side, his daughter, gary cohn. On the other side, steve bannon. Kevin a statement pertaining to what . I was just saying about the power dynamic in the white house. If donald trump decides to pull away from this, once again, the abandoned feels like hes in the influencer seat . Kevin this is where the power intrigue stories influence the policy and that is, potentially, what you are witnessing. I think this boils down to the president feeling that hes fulfilling a Campaign Promise. He has said frequently on the campaign trail that the parents that the Paris Agreement was worthless, that it hurt various sectors from cold to the auto industry. There are several republicans that would disagree with that line of thinking. I think that the implications of this are several. I think it only underscores the Emissions Regulations and standards that we are seeing. I think that we havent seen the specifics yet in terms of how the president will move into the off ramp of sorts in terms of this agreement. That whatever and will be watching for later today thats what everyone will be watching for later today. Includingfavor, americans for prosperity, the Coke Industries the koch industries, prominent lawmakers on the hill who are looking at this and view this as a victory after a series of what they would argue are defeats. The president has been a political referee of sorts time and time again among the various groups. Investor groups and Financial Institutions making their point known on this. It remains unknown just to see the fallout and whether these workwill coalesce and toward this agreement on their own. Again, i spoke with a republican advisor who said that that could be the case. We are one minute away, we just received word, from the president making his remarks in the rose garden. Scarlet clearly, a lot of people have a lot at stake, including the president , who has made plenty of Campaign Promises. We are still waiting on the president to arrive at the rose garden for his announcement. It was scheduled to begin at 3 00 p. M. Julia one minute warning. Fingers crossed it is only one minute. Scarlet as you noticed earlier, steve bannon, the president s chief strategist, was one of the last to take his seat. Julia i hate to be a conspiracy theorists but i have to say scarlet he likes to create a little bit of that drama before he makes the announcement. Julia its important that these press conferences to look at the body language as well. I think we spent a great time as well taking about the prospect of actually with droll actually withdrawl from the paris climate accord. It will be interesting to see what President Trump has to say about the prospect of what they do in the interim. I want to ask you, based on what kevin was saying, there has been a softening of the tone from the republicans on Climate Change. What kind of enemies does he make here actually, we seem to have a little bit of movement. Scarlet Vice President mike pence at the members of congress and distinguished guests on behalf of the first family welcome to the white house. Its the greatest privilege of my life to serve as Vice President , to a president who is fighting every day to make America Great again. Since the first day of this administration, President Donald Trump has been working tirelessly to keep the promises that he made to the american people. President trump has been reforming health care. Enforcing our laws. Ending illegal immigration and rebuilding our military and this president has been rolling babb excessive regulations and unfair trade practices that were stifling american jobs. Thanks to President Trumps leadership, american businesses are growing again. Investing in america again. And theyre creating jobs in this country instead of shipping jobs overseas. Thanks to President Donald Trump, america is back. [applause] and just last week, we all witnessed the bold leadership of an american president on the world stage putting america