Change. And its u. S. Jobs day. Could a lower Unemployment Rate upstage the pace of hiring . Welcoming its daybreak europe. He spoke in the rose garden. Its official, the u. S. Is set to pull out of the paris climate agreement. Lets go to s the bottom of the screen. China, the worlds number one polluter. China outpacing the United States of america by 40 . Flip it over and you begin to understand the ramifications of the United States pulling out of Climate Change. That eachount of co2 u. S. Individual emits in a year. 17 million tons versus ones chinese counterpart at 6. 65 million tons. The decries have come hard, fast and wide. The head of Goldman Sachs managed to put out his first tweet. Well talk more about the global reaction, the economic and the and does it matter to market . Thats the question we discuss. Global equities are rocking it out. Heyre at 10 . Manufacturing gauge in the United States of america threeyear high. Topix ripsghest, the getp, need a little more to the dollar higher. You need a jobs number to take the market up. Lets talk about the counter side. Everything is so great. What is holding this oil market back . Ill tell you what. Production in the United States. The biggest loss for oil by the way in almost a month. Pruck hitting the highest level since 2015. Anyone who thought shale was near the peak reconsider. Because production risers in 14th week in 15 weeks. Gold is an event offer. We have got a risk. The fed, the market, more or less issue. Well get this rate hike. Hats a fair kay in the marks. Its day two of the st. Petersburg forum. 6 30 london time. Sophie rounds off your week with bloomberg first record. Good morning. Global leaders vowed to press ahead with the Paris Climate Accord after donald trump pulled out of the pact. Germany, france and italy issued a joint statement saying they regret the american president s decision. The u. K. s theresa may said she, quote, express herd disappointment to trump when he call her. The Trump Administration asked the u. S. To immediately reinstate its travel ban. It puts a Trump Initiative before americas highest court for the first time, bringing the nine justice into a National Drama into claims the president is targeting muslims an abusing his authority. Fired f. B. I. Director james comey will testify to the Senate Intelligence committee next thursday, june , as the russia investigation moves onto the public stage. Hell appear in an open session in the morning followed by a closed session. Senators want to know about trumps statement about the to comey about the russian information and checks on Foreign Security advisor Michael Flynn before President Trump fired him last month. The u. S. Is imposing new sanctions on those with links to north korea. The Treasury Department is adding three people and six entities, including the ministry of Peoples Armed forces and the newly created state affairs commission. Washington also urged china to help rein in its allies. At least 34 bodies have been found in a casino and Hotel Complex after a shooting incident by a lone gunman. Most of the dead appear to have suffocated from thick smoke after the man set fire to casino tables. Police said the incident appeared to have been a robbery attempt and was not terror related. Global news 24 hours a day powered by more than 2,600 journalists and analysts in more than 120 countries. Find more stories on the bloomberg app. Lets check in on the markets in asia. You posed the question whether or not trump dumping the Clean Energy Pact would derail mact action that doesnt seem to be he case. The hang seng headed for its fourth weekly gain, the longest un in nearly a year. The kospi as well as the nste edging closer to highs. Tpwhrobaling to be stock rally up more than 10 near to date. Lets take a look at some equity movers here. Jumping to the highest since may, 2014. Goldman sachs and Deutsche Bank raise stock to buy on optimism about sales growth in the Chinese Hotel market. In the of the biggest sector, it was a mixed bag for green stocks in the energy state in china as well as across asia. Take a look at g. C. L. Poly in hong kong. This is the biggest maker of silicon slidetology a 2009 low. We did see the yuan rise. There was little change to pbocs daily. So checking in on the offshore rates in hong kong with 9062. After that spike that we saw this week, you can see from the circle here, we did have the overnight dropping 34 Percentage Points to 8. 68 , the biggest since january. Anus sophie, thank you. Now, the Business Community hit out aggressively as Donald Trumps decision to ditch the Paris Climate Accord. Disney c. E. O. Iger and elon musk oth spoke out. It drove Goldman SachsLloyd Blankfein to twitter for the first time ever. He wrote, todays decision is a setback for the environment and the u. S. s leadership in the world. For more lets bring in jeff she tellman, tom mckenzie standing by in beijing. What does this mean in the first instance in terms of cloy mat change . The u. S. A. Against the rest of the world. Put it in context for us. Is this about slashing back against globalization . This is the personification of Donald Trump Bashing globalization. Absolutely. The speech we heard last night was full of rhetoric, full of his view on the world and americas position in the world. But actually, what does it mean to leave the Paris Climate Accords . The Paris Climate Accord is a flexible mechanism set up that requires countries to report on their emissions. Thats all it does. As part of that, the u. S. Set a voluntary target to cut its Climate Change emissions which donald trump doesnt have to stick to. There wouldnt be penalties if he didnt meet it. Manus we are hearing a variety of potential ramifications. Potential consequences could be you have a lashback in terms of paris against u. S. Companies. This is a very early stages in terms of understanding what this withdrawal would mean. Hes made it political because it could be four year, and that would make it a president ial Campaign Issue in four years time. The consequences could be paris, that seems to be the baseline thoughts that the emoment. We jess we dont know what the reaction will be from countries. They are saying theyre committed to tackling Climate Change and sticking with this accord. Four years of donald trump, that could not be enough to derail the Paris Climate Accord. Maybe eight years could. Interestingly, the final day of actually leaving the accord will be the day after the next president ial election. So this is going to be a hot issue for the next election campaign. Manus lets try to put this in context. 9064, this is the world. This is how we look at it in terms of whats going on in terms of solar power in the yellow, ok. And youve got wind power in the red. Im going to drill in a little more closely. Look at this. Solar and wind in china. And the United States. Its less pro its less profuse biomass waste seems to be the big draw over there new jobs, new energy, 17 times faster than old energy in the United States last year. It is a bit of an anathema to take the g. D. P. Numbers, 6 ppt 5 million jobs would be lost by 2040. New Energy Created jobs 17 times faster. Donald trump talks about the job killing power tissue Paris Climate Accord but actually if you look at china, its got 3. 5 million jobs in Renewable Energy, its the worlds biggest investor in Renewable Energy and biggest maker of solar panels and wind turbines. Donald trump handed a massive opportunity to china here to lead the world in these investments. Jess. Thank you for that, tom is standing by. As jess was saying, this is an adhearing to the climate accord. Reaction on the ground, tom . Good morning. Tom good morning, manu sumbings. They reaffirmed their commitment, the chinese, to ccord. To the climate a the chinese have been adept at filling the void when the United States fall back. Youve got the one road initiative, the speech the president gave about youve goton and now Climate Change. Were expecting the e. U. And china to come out with another joint agreement at the end of today spelling out that clean energy and Clean Technology is at the core of this bilateral relationship. As you say this is an opportunity for china. And china sees Climate Change as consequential not just for the economics but also socially and politically because there are huge environmental problems here in china. It poses a risk potentially to the power by the Chinese Communist party. So theyre tackling it with huge investment. They invested the largest investment in Renewables Since 2012. A huge amount of money being poured into the secondor here in china. Manus you talk about the money being poured in, there, tom. The world, a great article written by david tweed over there in hong kong which talks about the plaudits that will be given to china but the reality is there are many areas that china has to do better on as a rising power. Climate change is not going, as it were, the shining star of us understanding a market economy and an accepted economy, one thats got human rights at the center of its policy agenda. Tom oh, absolutely. No doubt about it. What it does do. The refrenchment on trade and Climate Change were seing from the white house is give china that opportunity to fill that void and soften the blows, whether its on issues of human rights abuses that continue here of course or whether its on whats been discussed in brussels over opening up the market and the stodgey reforms that many economists and many market players, whether thats the european chambers of commerce or the u. S. Chambers of commerce plain about. Here in china, conditions are get manager difficult. They seem to be crafting the rules and being around the table on two issues that are clearly going to dominate, two of the most consequential issues. Theyre putting their money where their mouth. Is 88 billion u. S. Dollars invested in Climate Change last year. Theyre focusing on a plan to invest 360 billion by 2020. They want to create 13 million green jobs. Theres a threat now that Chinese Companies, private and stateowned, could start to take some market share away from u. S. Players because of the regulatory uncertainty in the u. S. Compared to the regulatory relative certainty here in china. Manus thank you very much, tom. And welcome. The debate, jack dorsey saying its shortsighted, hes the head of twitter. Upset he took to twitter for his first tweet. Others say this doesnt impact support for the agreement. Aggressive rhetoric toward trump. What does it mean for markets . Not very much. Actually, not very much. I think people overestimate the power of politicians to affect global policy. In the medium term. I think whats going to be more important will be the attitude of investors. What i mean is the whole growth of e. S. G. And clean energy in terms of investment thats going to be important. In the long run e. S. G. Is talking about social governance, the push toward clean emergency, being ecological. That is more important. So the actual investors if investors decide they want to buy funds which comply with these e. S. G. Or clean energy criteria, then clearly companies will be forced over time to move in that direction anyway. Policy from companies, globally, will change. I think it is changing. If we look at the investments in this whole area, it is growing so quickly. So over time, there will be more pressure put on the corporate c. E. O. s and Company Boards to adhere to clear criteria moving forward toward Better Energy efficiency in any case. Manus so Corporate America has the ability if they want to supersede anything coming from donald trump. Ed donald trump, we know hes in for four years, that could be it. Manus it could be eight. Ed, thanks. Coming up, we look back at this weeks comments from the fed policymakers on the future path of u. S. Interest rates. This is bloomberg. Manus its 1 30 in the afternoon in hong kong. Youre looking at a shot of the bay there. Global equities are rising, hitting record after record. Now lets talk about the investors anticipate u. S. Interest ratewise just a couple of weeks away. The speculation over the number of additional hike this is year. Thats the debate we had a host of Federal Reserve decisionmakers who talked to bloomberg. Lets recap some of the views on the rates. On the rate itself, i think were not far from an appropriate rate for the u. S. Economy that will keep inflation not too far from target and the labor market performing well. So what i disagree with is the idea that we have to go 200 basis points higher to get to some sort of neutral rate. I dont think thats the environment were in. Its been weak the last couple of months. If you step a little further back its been gradually increasing from 14, 15, to 16, now to 17, the thing thats giving people pause is over the last two months, particularly march, for a number of, i think, idiosyncratic reasons, inflation dipped. My goal would be to see Monetary Policy to become more boring, as we normalize Interest Rates and get out of the large Balance Sheet and the unconventional policies we did that people wont be so caught up in will they or wont they but will understand its a basic strategy, were responding to change in circumstances. Were not there yet but maybe well get there sometime. Can policies ever get boring . Hopefully not for the bloomberg team. Hypoed probably hopes it doesnt get boring either. We just listened to voices about the rate, concerns about inflation level rolling over and policy becoming potentially boring. Were on a jobs report watch day. How much impact can a jobs report have in terms of the outcome for june . Surely its a shoe in. A shoo in. Ed its already remarkably strong. So we have seen a number of upgrades from the year. But i would remind you that the nonfarm payroll number is volatile. So we do see big jumps from month to month, firstly. Secondly, it doesnt correlate with the a. D. P. And you see revisions one or two months down the line anyway. I dont think people place too much emphasis on this one number. Often it gets changed in a months time anyway. And substantially. Manus donald trump doesnt really enjoy the jobs numbers. We know that. What he does want us to focus on is the underemployment. He calls the jobless rate phony, the 4. 4 . Its been falling down nearly 9 in april. The longest threemonth slide since 011. This is a number, like more job, were underemployed, so this is a measurement of slack in the United States. But its not had the desired impact. Thats falling. But its not translated into higher wages. Thats a market conundrum. Ed its complicated. Is it just a delayed reaction . Will there be a major spurt . Manus do you think it is . Ed i dont. Theres been a structural change over the last 10 years in terms of structure employment to the a greater degree. We talked about uber, air bnb. The Technological Companies in the service sector. What that also changes is the nature of work. If youre an uber driver, youre not ememployed, youre not an employee of uber youre selfemployed. Thats a big, big difference. What it does do is gives you, yes you have a job but you dont have a job as you might have had 10 years ago which basically got a permanent contract which provides you with benefits, particularly health care insurance, which is very, very expensive. A lot of people in the u. S. Take fulltime jobs just to get the health care. If youre selfemployed you dont get those benefits. So though youre employed you have to ask yourself, do you want to be an uber driver . Is this your goal in life . Or are you doing that simply because you couldnt find a fulltime paid position . Because if it is the latter, then once the jobs become available, that guy will say, forget uber, im taking a permanent job because i want my health care, i want more visibility for my monthly earnings. Manus lets translate the discussion into market. This is bond market. This is bullish on treasuries. Youve got the worlds biggest bond firms, goldmans, morgan stanley, boosting their outright securities positions by the most since 2013. This says one of two thing, either a were left with a lot of paper that they cant shift out because its been a dodgey quarter for flow and thats a. B, the Recession Risk is rising and you can see a 1 handle on the bond market, so says pimco. Which argument do you prefer . Ed i tend toward the latter. There are two effects here. Firstly if you look at the trump reflation