Wwdc on Bloomberg Television. From bloomberg World Headquarters in new york, im mark crumpton. This is bottom line, the intersection of his nest and economics with a main street perspective. Today, president obama unveiled his plans to fight Climate Change. Then House Intelligence Committee chairman mike rogers speaks to bloomberg. Nd a new kind of heroine Action Figures meant to empower little girls. To our viewers here in the United States and those watching us around the world, welcome. We have full coverage of the stocks and stories making headlines today. Michael mckee details a rare correction by the institute for supply management. Housecook interviews Intelligence Committee chairman mike rogers. We begin with Phil Mattingly and president obamas lands to cut powerplant emissions by nearly a third plans to cut powerplant emissions by nearly a third over the next 10 years. There is more than just the headline . That is right. It is all about the details. In this case, it is the power given to the states to work regime,his regulatory including an extended timeline for certain states who have, if they work together, mark, until 2018 to put in place regulations that would lead to the reduction in Carbon Emissions to that 30 level the Obama Administration is putting out for them. This is a significant step forward for the administration, the largest unilaterally they could possibly take and one that could lead to new gains economically. Take a listen. Towe have a moral obligation act on climate. When we do, we turn risks of climate into business opportunities. We spur innovation and avestment come and we build world leading clean energy economy. To note, aportant lot of criticism and pushback on this proposal. Saying therele will be major, major costs to this role, mark. Lets talk more about this. Republicans and businesses are opposing this plan. What specifically do they have problems with . Essentially this is a plan that will revolutionize how power is created in this country, pretty much a direct shot at the power plants in this country. Administration officials acknowledge this. Ours a push to change electricity and power is used in the United States. The biggest concern for businesses, mark, is how business may be affected from a cost perspective. 8. 8 says it could cost billion. It could be much more than that. Thisushback is what is going to look like . You have legislative proposals on the table. You have legal avenues on the table. That is something to watch as the comments period goes through in the coming year. Phil mattingly joining us from the white house. Lets get more on the proposed epa rules. Michelle, thanks for joining us. What will these new meanonmental regulations for the states . Already these states have tried to develop something, but what is clear in these roles, it is very much in the statespower power to states craft. They will be significant. Enormous lot with an amount of flex ability to achieve targets. I imagine that was part and parcel of the overall proposal. There has been a lot of pushback, as phil mentioned. Is this a concession that the toeral government is making the states, letting them try to plan this for themselves . Yeah, in a way, that is the case. Allowing the flexibility for the difference dates to create their own rules, anticipating some of the political pushback that will happen. But there will be a legal Battle Ground the next years to fight this out. What is interesting with the rules that came into play, a wild back some of the Obama Administration tried to develop Climate Change legislation that did not work. This is going purely through channels that are at the president s the postal. Industry will be impacted. To what degree and what will this mean for their bottom lines . It is important to note that the coldstream in the u. S. Has already been suffering. It was only a year ago that cole represented half, this year it is less than 40 . Coal has been in decline. This will make it more difficult. Even before this legislation, it was essentially impossible to build new power plants fueled by coal. The new regulations will make it more difficult for existing power plants. They will boost funding. Where is this boost going to come from . What about critics who say these regulations are in fact a job killer . Will happen in sectors that represent clean technologies. You will see them boost sectors that include renewable energy, solar, wind, geothermal, biomass. And especially for sectors that make our grid more efficient. Smart meters, Smart Devices inside your home. As far as the critique that this will be a job killer, it is pretty inevitable that some states will see some increase in Retail Prices to absorb the cost of compliance. But bear in mind a lot of these technologies, such as energy efficiency, are cost competitive already. It is a reduction in cost. You spoke recently a moment ago about the politics. This is the boldest step by any u. S. President to combat Climate Change. What is at stake for president obama, and what are the chances that during this Midterm Election year tongass will get on board . Atthere is a huge amount stake. And from a legacy perspective. Thats exactly right. You will have obamas term and in 2016. It may be 2018 before you see some of these programs come into implementation. It may be 2020. There is a longterm legacy at stake. The global sphere. There is the annual renewal of the countries to discuss what the programs are for Climate Change. At this point, the u. S. Has a huge amount of leverage. Just quickly, speaking of two leverage, the worlds biggest polluters, the United States and china. Will this give china the ammunition it needs to fight Climate Change question mark it could be. It may be that china needs its own stimulus from abroad. But do not forget the chinese themselves are taking very active steps to promote clean energy technologies. They are still reliant on coal, but the chinese launched a Staggering Amount of photovoltaic last year, by far the most that any country has built in a single year. Bloomberg energy analyst. Thank you for joining us. Thanks so much. Coming up, we will take a look at the revised report for the institute of supply management and figure out what is ahead for the sector and the broader u. S. Economy. We will be right back. Its an economy dependent market, so no surprise a very disappointed i sm ism manufacturing report would send stocks lower in no surprise a major correction woodson the markets up again. Michael mckee has the strange twists. And michael, the terms of this market data turns of this market that it market data. Ive never seen anything like this before. It came out and was weaker than expected. The forecast was for 55. 5. Wrongne thought what went with the economy . Nothing went wrong with the economy. It was the isms data. They normally seasonally adjust for the month. Unfortunately they applied aprils seasonals and came out with the weak figure. When they applied the correct data, everything went up. Unfortunately they applied it wrong again and had to issue a second correction. Here is where we are at the end of the day. The headline number 55. 4. About where it was expected to be at. Better than where it was last month. It is an improvement. The underlying data, much better than originally reported. New orders were at 53. 3. 56. 9. Om up at evenne bad part of this, though they revise this, the Broader Market does not come in as strong as you would like it to be. It comes in at 52. 8. An expansion, but it suggests the number that economists were expecting for friday for manufacturing hiring might be ambitious. A big new week for data. For might this mean reports we will see . Inmates adjust better reports for the month. The employment number what it may suggest that reports for the month. The employment number not as good. If that comes in strong, you will see reaction in the markets. To 15,000 we expect new jobs created. That changes once we see that number on wednesday. Thursday, we will get the nonmanufacturing hiring number and we will see how that goes as well. Economics editor michael mckee. Thanks. For more, i am joined by the chief economist alternative investments at kplg. Good to be here. Oops. Have you ever seen anything like this before . No. What is interesting is they do not have more procedures and place. They may need more robust procedures in place, or maybe someone is on vacation. Become as going to regular thing, we can start questioning these numbers, but in this day and age, when you are working with large spreadsheets, it is possible to make mistakes. How significant is this, especially when wall street is on the lookout for Critical Data , only to have that data thrown into question . Certainly hurts their brand. And we have had a lot of government cuts to data, with the cutting automatic stabilizers, or economic releases. People saying why cant we just have those, and art of the reason is there are a lot of checks and balances to make sure that when those are released, they are released properly. You still have to ensure you have Good Government data. , firstquarter gdp was the first contraction since 2011. Are you in that cap of economists who believe this was primarily due to the weather . Inventory fell at an annualized rate of 288 . 288 . Massive contraction of inventory building. Massive contraction in investment. A massive pulldown from exports. On the flip side, we actually saw Service Consumption really increase. Some of that was spending on health care, so it is not necessarily like it would be repeated, but Still Services where the whitecollar, al wellpaying jobs are in our economy. How will u. S. Exports affect your Growth Outlook for the remainder of the year . I am looking for 20 or 30 basis points. We are seeing a narrowing of the trade deficit. Yes, we are. Petroleumorting more products. That has a huge impact. Petroleumorting less products. That is a huge impact. Even though it is not great, it is better than negative growth that they were seeing for the past two years. Speaking of anemic growth, do greatestve some of the risks to the u. S. Economy are from europe and china . Yeah. What are those risks . The intersection of demographics and a debt overhang and eight this inflationary trend. Right . When you have those intersect, as we saw in japan in 1993 when the working age population started to decline, that can be very difficult for u. S. Policymakers. The challenge for verio draghi is to stop job owning mario jawboning andtop walk the walk. [indiscernible] to 25. Pect it is that in your range . But we had we had 22 months of expected job gains. We probably have three or four years of recovery to go. Even though we had a pickup in housing, housing is still at very low levels. Why is it still out of sync with the rest of the sectors . That is where the debt problem was. That is were the debt overhang is. You combine that with the fact that so many millennials are not my first homes. Federalhis is on the radar. Janet yellen says this is the one thing that keeps her awake at night. What is the fed going to do . Said but the question is, is the structural or cyclical . What happens when the rates go up . If it is cyclical, the fed can do something about it. They can accelerate growth, which will pull more young people into the job market. Economy growing stronger, we will have more hiring of young people, so in the 21 to 30yearold range, right . Right it is structural, the fed cant do anything about it. It can only do something about cyclical problems. This question of what is actual and what is cyclical is what we want janet yellen to stay up at night worrying about. Supper we have to leave it there. We have to leave it there. Thanks so much. You are welcome. It is one of the few times a year that apple shows off what it has been working on. We will take you to the annual Developers Conference next. Apples annual Developers Conference is underway. Bloomberg west editoratlarge cory johnson is there. He joins me from san francisco. Apple just unveiled its new operating system yosemite. What makes this different . Not a lot, but a little. Advantage of the wwdc, is developers. What theyre trying to do is plant flags for the developers and say this is how things are going to work 6, 9 months from now, so i want to develop for this capability. There are a lot of specifics about ways the software will work, the way the toolbars will look different, the method for searching for documents on your computer, your mac, maybe beyond, the integration, stuff we have heard little bits about for many, many years, refinements of that. Not the suggestion of new products. There is something called the h which apple says will allow people to give a lot of their Health Information one location, monitor the things that they are doing. Codifying all of that around the macintosh and the ios operating system am a all on this one device. That is the kind of thing we are getting out of this wwdc event and the tim cook address which continues at this moment. , what does todays unveiling tell us about the direction of the Company Since the death of steve jobs back in 2011 . That is a loaded question, mark. It tells us a lot. One of the things it tells us is the company is different now. Process of taking care of the biggest user these the company has ever had takes a lot of handholding. They have to come to markets with things in a further develop stage than they have in the past. I think it also shows hesitation. Rom this Company Rather than making the hail mary announcements that there were 10 years ago, in part because that is not very more. Apple is dominant in the computing business, the dominant tech company in the world. For that reason they are faced with a different outlook than in the past. Bloomberg west editoratlarge cory johnson joins us from sentences go. Thanks. It is 26 minutes past the hour. Time for bloomberg to go on the markets. 500 doing nothing. Industrials continue their slow grind higher. Two stocks we are keeping our eyes on through the day. Cares, the Largest Health in the u. S. , buying a cash and stock offer. Expected to close in the fourth quarter. It will lead 140 or 80 two its two is for pozo. And the worstperforming major trust of the last year. I will be back in 30 minutes time to bring you the markets again. Welcome back to bottom line. Im mark crumpton. Thanks for staying with us. Lets check some of the headlines we are following for you at this hour. After months of blocking security counsel action on ukraine, Russian Foreign says theyergei lavrov have called a meeting of the u. N. To call for a halt to deadly fighting in eastern ukraine. 9 p. M. Eting is set for new york time. That comes after an attack on a order guarding ukraine and five rebels were killed. Isins King Juan Carlos abdicating in favor of his son. In recent years, or his public support has been undermined by a corruption scandal. He will be succeeded by crown prince felipe. In case you did not stay up to watch the Los Angeles Kings defeat the blackhawks in game 4 the stanley cup finals begin wednesday night in los angeles as the kings face the rangers. The family and friends of army soldier are many Army Sergeant boberg tall are celebrating his release. ,eter cook spoke to a lawmaker the House Intelligence Committee chairman mike rogers. He good afternoon. Bergdhal is recovering in germany and it is hoped he can be read i did with this family soon. Chairmanntelligence says that the price was to live for his return and could put others at risk. I am glad that these family. Ill get their loved one back it will be a difficult recovery and we and the family need to be with them. That being said, i think this sets a dangerous precedent. Notave always said we do negotiate with terrorists. He was held by a terrorist organization recognized by the state department in pakistan. Them and the taliban, they note though she didnt release with terrorist organizations. Ofputs a price on the head every soldier. We do not negotiate with terrorists, but we also do not leave any man behind. How do you reconcile that . If we got a good location on him, we have the capability to send folks and to recover them. There were lots of other options. It might have taken a month or two months or six months, and we dont know that, but there were other options available. On fivea release deal very dangerous taliban commanders these are bad guys. These are really bad guys. They have been involved in war crimes. They will have at least 12 months where they can travel to afghanistan. That is very, very troubling and it sends a terrible message to the afghans we have asked to around,turn afghanistan including women. You just sent back five guys they are terrified of having in their neighborhood. The remaining u. S. Soldiers in afghanistan, you think they are more at risk . I believe they are more at risk tells we put a price on there head. Now we know what a u. S. Soldier is worth in the eyes of the taliban. The leader of the taliban has been touting this as a great islamic afghanistan victory. That is troublesome. And something we need to worry about. You are an army veteran, a veteran of the fbi as well. Have to ask you, mr. Chairman if that was your son, wouldnt you want president obama to take this step . Woulde every parent, i want my child to come home. However i would not want my child to come home at the expense of thousands and thousands of other soldiers on the grounds and families. I am happy for them. We are charged with the difficult responsibility o