Center said the remains of the couldst of beatriz dump heavy rain causing flash floods and mudslides. President trump has taken the battle over his travel ban to the supreme court. Justices will be asked to reverse a string of courtroom losses for the order that temporarily bars entry to the u. S. By people froms expert ominously muslim countries. A Lower Court Ruling said the singlewas directed at a religious group. True blood trying to determine the identification of the man they say once to detonate a bomb Authorities Say he was armed with an Assault Rifle and set a casino fire that killed at least 36 people. Islamic state claimed responsibility for the attack. Philippine Officials Say it was a robbery gone wrong. Joe julia live from bloomberg world headquarters. Joe were 30 minutes from the close of trading here in the u. S. Joe julia u. S. Stocks rising to records while bond yields hit 2017 lows. Joe the question is whatd you miss . Scarlet a weaker than expected read on the job market in may and unemployment falling. Where are the raises . The dispute with over raising the debt ceiling. A move that challenges the treasurys authority. Investor david on more proposing to shareholders, he spoke exclusively on how gm can unlock more value. Lets look at where the major averages stand as we head toward the close. Abigail doolittle standing by. Abigail records. We are looking at records for the major averages. Big weekly gains and the weekly the average is on pace for in a second weekly gain row. Look at the nasdaq at session highs, up more than. 9 , almost up 1 . We will be getting to why, but in terms of stocks rallying despite the weaker than expected jobs were orton, some analysts think investors are Still Holding out, hoping for tax reform from President Trumps administration. He thinks the potential meeting when the fed raises rates in june could be the dividing line. Time will tell. Stocks hitting record highs today. Paul sweeney, Bloomberg Intelligence analyst and director of north american research, told me in a phone call moments ago he thinks it has to do with the fact that tech is the top sector this year and investors are hoping the trump inflation will somehow play out and that they are willing to pay out for growth. As for broadcom, take a look at those shares. Theher record bid after chipmaker did put up a very strong quarter. Susquehanna calling it a classic beat and raise quarter and that broadcom is a must hold in tech. When we strip back what happened this week, we have big weekly gains, but when we going to the bloomberg and look at sector competition, something very interesting emerges. This is the groupranked return function on the bloomberg this week, and we see we are looking at mainly green. Big gains, too, with the exception of real estate up 21 and 2 up between 1 and 2 . These top sectors from the trump trade since the inauguration are both dragging. How long can that dynamic continued . Time will tell there, too. Julia thanks. Whatd you miss . Another wild week in washington that started with an investigation into possible ties stween President Trump associates and russia. Rumors of a white house shakeup come the resignation of the White House Communications director and the president s controversial decision to withdraw from the Paris Climate Accord, a move that has drawn furious condemnation from ceo us, scientists, and world ceos, from scientists, and world leaders. Great to see you, as always. What did we learn in the press conference that we did not know yesterday . Do you think the fact that they even held it suggests some kind of surprised from the administration at the back laissez have received . They held it because they expected questions on what is a decision with global consequences. Do you think the fact that the even held a suggests some kind of surprise from the administration at the backlash they have received . Pruitt said the president made the decision he made based on economic factors alone, sort of echoing the president s remarks yesterday about trying to negotiate a new deal, a better deal for the united , which other countries have rejected already. Its not going to happen, but the white house is sticking by that decision. Joe yesterday, during President Trumps rose garden speech, he said things are going well on the tax bill, which any have pointed out there is no tax bill yet. What is happening on the trump the things julia mentioned . There is no tax bill. There is no draft bill circulating. There has been nothing introduced. There have been no markups or hearings. House Republican Leaders have some ideas. Probably the most concrete set of ideas on what they want to do going forward. Senate republicans do not have that and the white house has offered very little guidance apart from a blueprint they put out late in april that is about a dozen bullet points, mostly on the things republicans agree on, not the tough things like how you pay for them. I think that is where they are at the moment. The white house has said the three planks of what they view as essentials for Economic Growth are deregulation, which the president is doing a lot, mostly by executive action, some fast tracking through congress, attacks these, which i just mentioned is installed, but there is also the infrastructure piece. Public and in congress are not particularly enthused about that. Bloombergs National Political reporter. Thank you very much. Lets turn to the countrys looming collision with the debt soonng that could come as as august. The president s chief economic adviser said today that congress has no choice but to consider or other attempts to avert an unprecedented default, but not everyone in the gop agrees with the strategy. Here to break it all down is bloombergss just here to break it all down is bloombergs treasury reporter. Administration, there are differing voices on the correct strategy. We are hearing from the administration a split view. Mnuchin said he prefers a clean bill with no policy writers or any other physical changes no policy riders. Mullaney comes from the freedom caucus, where they do want policy riders. He went as far as to say that forhin, his recommendations a clean bill are not necessarily the administrations stance. We heard similar comments to mullaneys to motivating mulvaneysy to echoed by cohn. For one thing, their comments are calling the treasury secretarys responsibility of being the chief spokesperson for question. Into at the same time, it is a republicancontrolled congress, but they need clear signaling a united front to know what their legislative agenda should be, what they should work on first, what is a priority, and they are just not getting that now. The other thing this mixed signaling does is it gives democrats leverage. If they see they can attach these policy riders or stick to their guns and recommend a clean bill, they have something to bargain with now. Julia it is actually worse than that. Actuallyy mulvaney told newspapers mnuchin does not necessarily represent the u. S. What does this mean for future policy . Not even just the debt ceiling debate. Were talking tax or whatever else they are trying to discuss when they are openly disagreeing. Is possible this is really just a difference of nuance. Mnuchin answer a question saying a cleanis reference for bill. If they would come together with a cohesive message, its possible that neither of them are completely incorrect on what the administrations policy stance really is, but their language, the way they are explaining themselves and each other shows they are not really on the same page, and that is a problem. Scarlet both sides are in the process of trying to convince President Trump. Thank you. The white house is reviewing invoking executive privilege to prevent former fbi director james comey from testifying june 8, thursday, and weve been talking this whole time that that was always a possibility, that the president s office could say, you know what . Executive privilege. You cannot go there and testify. Julia hes got real trouble doing that at this stage. Imagine the outcry. At thiss pretty risky stage. Theres no way they could do that without it looking pretty bad. Askedt sean spicer was doing the press conference, and he said the Committee Hearing was just noticed and it has got to be reviewed. Maybe we will get an answer saturday morning in a tweet. Coming up, highlights with David Einhorn and his ongoing battle with General Motors and a lot of ice cream metaphors. This is bloomberg. Scarlet whatd you miss . Billionaire Hedge Fund ManagerDavid Einhorn x General Motors needs to create more value for stockholders and proposes the automaker splits into two classes. Is strong and much of its business and has made good strategic moves. Operatingts of areas an Automobile Company from Product Design to sales to manufacturing customer support, so on and so forth, but one area where gm is week is in capital structure. It has a Balance Sheet which is fundamentally too conservative. Or the value being created the company has a market cap of just about 50 billion. They have 20 billion in cash. , a fewrawn revolver billion dollars more offshore in places like china which is not even counted. Shareholders have been rewarded with the lowest p e multiple in the s p 500. It trades at a huge discount even to or. Multiple, itds would be trading 30 or 40 higher. Something needs to be done to unlock value. Mary is certainly concerned about her stock price. She knows. She has a team around her. Why have they not addressed it . This caring about a stop rise and caring about a stop price. I could lose that last five pounds, but do i care enough to change my diet and exercise to do that . Be fivei would like to pounds less, im not willing to do that. Gm is not really willing to do what it takes to make that happen. Is it possible they are also scarred from the experience of . Ing bankrupt share. Sure. The company has said they are forever grateful to the United States for bailing them out and preserving the company through the last recession, and the company is capitalized to make sure that never happens again, so i think there are several ways to get at that particular thing. You could decide you are fighting the last war and change your Balance Sheets to make it more conducive to the current business, the current cost structure of the company, which whichucturally improved, would require much less liquidity and cash, or alternatively, you could do something that is kind of clever, and we have a proposal we have made which allows the company to keep its cash, keep butits rainy day money would unlock the value at gm. Two classesinvolves of stock essentially. What are they . Have a stock right now. As the owners are gm, you get dividend and all the other values of ownership. If you separate out the value of dividends from all the other values, you would unlock 30 to 50 increase. So there is dividend share and growth share. Correct. Each shareholder would get one of each . One of each. The same growth you have right now, but if you wanted, you could trade, and the result is people who are more interested in dividends, you would have new buyers that would come in for those dividend shares, and alternatively, if you are interested in the growth but not the dividend, you would buy the other shares. If the market were working properly, the value of those two shares should equal the value of one share right now, but you in your proposal to you think there is a fair amount of upside. Why is that . It has to do with choice. Think of it as an ice cream stand that sells just vanilla chocolate swirl. There are some people who like that, and we will call them the gm shareholders, but if gmcolate is the dividend and is the rest of the operation, if they sold whatever people wanted, that ice cream stand would sell more. New participants in the market would come in, and they would did them we think of to 7 to 9 yield, and similarly, people who are not that interested in dividend but want to just see the stock will of wood by the Capital Appreciation shares people who are not that interested in dividend but want to just see the stock go up would buy the Capital Appreciation shares. Thatswould they not say a good idea . I think the truth of the matter is they never really engaged in it. They just thought what weve done from the very beginning. What we wanted from the beginning was a collaborative, solve theprocess to Balance Sheet problem. What we have done is in addition to our plan, which is up for the Shareholder Meeting next week, we have nominated three directors, who bring in enormous Capital Market sophistication, which is not present at gm. I think the cfo is a little bit weak. I think mary barra is a wonderful ceo but finance is the area where she is not as strong as in other areas and i think the board lacks this area of expertise. President trump often cites how well the stock market has performed since his election, but how does it stack up against other postelection periods and are does the trump bump f when taken since inauguration . This is bloomberg. Scarlet after the election, banks got a big trump bump boost , but that has faded and the yield curve has flattened. Linean see with a white goes down, banks are underperforming the broader market. The blue line shows regional banks to the s p 500. Again, the ratio moving in the same direction. Investors are getting particularly antsy about the white houses inaction to appoint three people to the Federal Reserve. Notably, the vice chair or supervision. Thats the person who can alter stress tests and meaningfully move the needle for these banks. We do know that the house is going to address doddfrank next thursday, so maybe the move maybe the needle will move there on that front. Donald trump very eager to point out the performance of the stock market since he arrived at the scene, and thats what i looking at here. Looking at gains from election day through the first day of trading in june. Trump is right that there has been a pretty strong performance, but compare that to well. 1 and jfk as you can see he looks good, but there are other contenders. From electione it day to the inauguration and look at the performance. Outkey one i did not point was obama, which is negative, but obama goes from low to superhigh if you take it from inauguration to june. Trump, meanwhile, sees some of his gains soften. Was focus of judging the performance of the president by the stock market is utterly absurd. That takes an about a month and a half of declines to start when you look at obama. That is remarkable. I want to look at the picture stop trends. This was pointed out to me earlier this week i our colleague. Really simple, a relationship between the nasdaq 100, the Powershares Qqq and russell shares etf. Big cap tech, as Everybody Knows , doing very well. Ofil a little bit underperformance yesterday, at its highest level since 2001. Shows how much people love these big tech cap names. Scarlet say that quickly five times. Joe we are still nowhere new the peak of the bubble, so putting into perspective some of big longterm trends. Scarlet the market closes next. Take a look at the major indexes. I left a a lot of time for this so you can revel in the round number of the Dow Jones Industrial average. 21,200. And two. We should mention the dow and record territory. So it has caught up with everyone else. This is bloomberg. Julia whatd you miss . For the year. Im julia. Scarlet im scarlet fu. Joe im joe weisenthal. We want to welcome you to our closing bell coverage. Some breaking news. According to the New York TimesPresident Trump has said to pick for the Federal Reserve board. Quarles goodfriend. We were just saying the white house has been pretty slow nominating their picks. Now it is finally happened. This is according to the New York Times. We will give you more details when we find out. President trump specs for the Federal Reserve court. Lets begin with our market minute. Highs, forcinghighs stocks across the board. The dow, s p and nasdaq and record territory. A nice round number. Joe right on the money. Scarlet small caps doing well as well. If you look inside the imap, we are switching it out for the sector breakdown. Eight out of 11 groups are higher. Following of course with prices. If you back out of that, tech shares doing well. Segment of the tech market. That would be the electronics manufacturers. That might be why that group is down a little bit. You can see strength across the board for most of the sectors. In terms of individual names, the biggest performer, best performer in the s p 500 percentage terms. Here are the energy names. A quick look at the energy names leading the decline. This is the lowest level since march. They have been slumping for a wild. The biggest percentage gainer in the s p 500 after it gave an optimistic sales outlook. 4. 5 billion. For lululemon, the best day this year. They will revamp their line of girls apparel. For Buffalo Wild Wings come up to present. Is stepping down, getting into activist investor demands. Lets take a look at government bonds. Every sector of the stock market was up. It was all the asset classes. Hat means lower yields we are back to lowest level since november 11 after the election. E had the mediocre jobs report not so terrible it worried about the economy. That means goldilocks. Theres that longterm look at the one year. That is the story of rally of almost everythi