tv Bloomberg Markets The Trump Economy Bloomberg June 1, 2017 1:00pm-2:01pm EDT
donald trump will announce his decision whether the united states will withdraw from the paris agreement, a keystone of president obama's legacy. testify in will open session before the senate intelligence committee next thursday. go to capitol hill for the latest on the investigation. and an exclusive interview with the prime minister of australia. he will talk about reining in north korea. ♪ david: it is 3:00 in washington. donald trump will make a statement in the rose garden at the white house regarding the paris agreement. deal.y withdraw the i want to talk to shannon from the white house. we had the announcement the
white house will not move the embassy in israel to jerusalem. that was a campaign promise. what did he say about the paris agreement? u.s.at it was that for the and bad for jobs. as you mentioned, there is a lot of things he said on the campaign trail he has backed away from whether it is pulling out of nafta, attacks on nato, the israeli embassy. so it would not be unprecedented, but there is a very conscious thinking about our campaign promises and those we made. i definitely know the camp inside the white house wants to pull out and use it as leverage to say, you said you would do it, why change? david: i want to know the conversations have been like between the president and seniors of staff. shannon: we have been hearing is that theues
findings are going down at the last minute. there is a camp that wants to see the u.s. stay in. that includes ivanka trump, jared kushner, rex tillerson, it is good for the u.s.'s standing for the world, and then there is a camp that wants to pull out, scott pruitt, who is a big skeptic of climate change, and steve bannon the chief strategist has been arguing you said this was a campaign promise, people would create jobs, that we should focus on promises, what is best for america and creating jobs. david: this is classic trump. we have been talking about the last few days going into this now, like 3:00 your time, what will it be like? we have seen other nations meet the threshold. shannon: i don't know the
details. it will be interesting to see if he brings in ceo's are reporters were advocates. -- or reporters or advocates. but this is a president who is very aware of optics. he thinks about ings visually could last time you saw the rose garden was after the passage of the health care bill in the house. that is an interesting choice because the bill had a lot of criticism even among republicans. now the bill might not even come off. it was interesting visual the certain of getting a win. that is what he is looking for today. david: shannon pettypiece joining us from the white house as we await the president's announcement later this afternoon. let's get more insight with what is at stake if trump does elect to leave the primus -- paris agreement pact. a business we cover story that argues for the consequences of washington abandoning the climate pact be a
grave not only for the planet but the u.s. with technological innovation and leadership of the world in the 21st century. what is the greatest concern to you think to people? is that the leadership component or environmental? reporter: i would take those things in sequence. the un's climate negotiation process has been really long and boring. there has been a lot of conservation that does not mean anything. the one thing i think has been consistently true there has always been a soft power emanating from it. paris was the culmination of this soft power or signal from the community of innovation, businesses that it is time to clean up old industries because there is harm. there is consequential environmental impact to the u.s.
emissions. david: what was it that got the nations to come together to agree? eric: diplomatically the most important thing was a year prior, the u.s. and china struck a bilateral agreement on how they were going to each approach the climate education efforts through their own national policies, and having the biggest leaders of the world, china and the u.s. are the biggest emitters, having them appear on stage was a signal for the rest of the world to fall in line. david: you mentioned china, and they will take a leadership role and seem eager for that. are there indications they will live up to that, that they can lead? eric: there are. they are by far and away the greatest global energy economy in terms of job creation. they have two thirds of all the
directly or ,ndirectly related to sulfur eight times the u.s.. the bottom line about renewable energy is about jobs. what we want to look for is the u.s. economy responds in a way that is writing the currents -- riding the currents of global economic change or energy, or you have something to do for a living. david: you talked about the role of business and the framework. the target foundation with business is going to paris and a firm this deal. what role will businesses play in this deal? businesses are fundamentally rational, and they are pursuing policies that are fundamentally rational, half of the biggest 500 companies have
renewable energy goals. global companies that committed to 100% renewable energy. it is just the economical thing to do, the responsible thing to is very clear,s and they are proceeding along those lines. david: a great piece, the climate energy editor in new york. we will have live coverage of donald trump's decision on the paris agreement from the white house. then richard branson will sit down with the exclusive interview for the paris deal. phyllis facility has been light, but there are companies making moves. we are seeing a bounce back from days of declines, and the gains have been extending and building through the session with the s&p and nasdaq now up a half of 1% and the dow 0.4%.
we have seen the extension of gains as the session has progressed, materials and health care companies leading those. as we have seen gains in stocks him up low volatility is persisting. here is a chart that is still in effect since the month of may. likewise if you look at the average volatility annually year by year, we are halfway there, but it is the lowest we have ever seen. you look at this chart that shows the fix and the yellow line -- the vix and the yellow line are the averages. as for individual companies on the move, we have ppg, akzonobel really spurned text -- takeover offers spurs -- offers. of a privatelyr owned german company for $5 billion to get into other types of equipment, not farm equipment
but construction and road construction. bloomberg news reporting th linda approved, linda's supervisory board approved the takeover by crack there. some headlines confirmed that the you see the crack their shares getting trading once again. are had halted, now they spiking again because there was question whether this would go through. shares ours -- linde shares are going up. david: julie hyman with the market update. we have a date, fired fbi director james comey will testify next thursday june 8. more details. this is bloomberg. ♪
♪ david: this is bloomberg markets , the trump economy. time to check first word news with mark crumpton. mark: as david mentioned a moment ago, it is official. james comey will testify before the senate intelligence committee on june 8. the senate said the former fbi director will appear in the open session in the morning followed by a closed one. they will hear testimony about circumstances that led to his firing on may 9 and look into potential time -- ties between trump's campaign and russian interference in last year's election. and we have been reporting the president will announce when -- whether the u.s. will remain in the paris climate agreement.
two people familiar with the deliberations say he is leaning toward walking away from the landmark deal. hoax and the it a paris accord is one-sided against the u.s.. washington will rescind rules on powerplant munitions and methane leaks. he can watch it on bloomberg at 3:00 washington time. the hurricane center will try giving people deadli for emergency preparation in miami. the forecast advisories will go out with tropical storm force winds hitting particular communities. this will help understand when to put up storm shelters or evacuate. start ofthe official hurricane season. for the u.k. elections a week away, some showing jeremy corbyn closing the gap with prime minister theresa may. he spoke to supporters about brexit. >> week in the labour party
understand that what secures our countries interest will be challenging. imagine a serious planning and negotiation not with threats. mark: in response to may's claim he is not ready for brexit, he introduced a three person team of negotiators. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. david: australia's prime minister is employing china to rein in north korea saying it is increasingly reckless and must be curtailed. heidi had an exclusive interview with him. she asked if u.s. is a viable responsibilityat china bears when it comes to north korea. korea's conduct is reckless, dangerous and china
has the greatest leverage over north korea, and with that comes the greatest responsibility. we will do our part in the sanctions of course, but we look to beijing to bring the pressure to bear on the regime in pyongyang, to bring it to its senses, to bring it to its senses so that it ceases threatening the piece on the region with its reckless conduct. haidi: the recent g7 seemed to portend something of a seismic shift with global alliances, suggesting germany cannot rely on the u.s. or the u.k., that europeans must take charge of their own destiny. if such alliances were to threaten the deep friendship, they could look fractured at the moment. what does that mean for australia? you said the u.s. and australia
have shared values. malcolm: our alliance is strong or than ever. the u.s. alliance is more important than ever as president trump and i demonstrated when we were together on the uss intrepid in new york a little while ago. the commitment of our nations based on our history, based on our shareds, based on neutral interests, is stronger than ever. president trump has proven himself to be irrational, erratic when it comes to policy decisions and at other times transactional. is that something australia can rely on? malcolm: the relationship between the united states and australia is as strong as any relationship could be, based on
history, shared values, common interests, the closest possible engagement at every level. defense, political, economic, business, it is the closest possible relationship, and it gets stronger all the time. haidi: scotland yard wanted to temporarily suspend intelligence sharing after the manchester event. the leak also follows from the president sharing confidential information with russian officials. has australia gotten reassurances any intelligence shared will remain confidential? gotten stronger. it is intensely close, part of we have every confidence in the confidentiality, the intelligence we shared of friends in the united states as
the confidence we give and the intelligence they share with us. intelligence is more important than ever, in particular in the battle against terrorism. it is a global phenomenon. a global threat is terrorism as it extends from europe to the middle east to asia to the americas to australia. the sharing of intelligence not just between us that all nations that are committed to committed destiny and discourage is more important than ever. haidi: have you got assurances from president trump? malcolm: we are assured, always assured of the strongest security and confidentiality between intelligence services as a relationship of many decades standing, one which is again as rock solid and part of the alliance. with: that was haidi lun
♪ this is bloomberg markets, the trump economy. let's get back to the news that broke. fbi director formerly james comey will testify next thursday, june 8 the senate intelligence committee. they will also hear from jared kushner. i will bring in the senate reporter. he is in washington. here. ask you how we got the invites have been out for some time to get him to testify. what led to next week? >> look like they finally cleared that hurdle working with
bob mueller of the special prosecutor to take over the russian investigation. what hes de-conflicting cannot and canay, getting all their ducks in a row. they will have the hearing next week, one of the most highly anticipated that i can recall in washington. how has this changed at all? to do youy have had conflict their investigations -- deconflict to see if there is any attended interference. which is notobe criminal in nature would get to the bottom of what happened and the senators say they can do
that. they have an obligation to tell the public what happened. the senate probe in particular has a lot of bipartisan support even though trump likes to call these things witchhunts. this is a republican and democrat committee, they are doing aing people, methodical probe, starting small and getting bigger with the comey hearing. david: what about the status of the investigation? the ranking member said one of the things he hopes james come wi do is fl inhe gaps they have as a result of medi reports they have read. newspapers, wire services, the press has been leading investigation on its own. where does it stand? steve: one of the key things the senators want to know is did trump himself have anything to do with the interference last year with anything that comes
close to obstruction of justice? the news reports that comey had written memos saying trump had pressured him to drop the michael flynn investigation, the fired national security adviser, that is the kind of thing you could expect comey to testify on, what did trump tell him? he has fired him, now he may feel the obligation to describe the conversations he did not want to describe before he was fired. he also got republican saying if this was instruction -- obstruction of justice, why didn't you come to us before? david: vladimir putin weighed in on these. let's listen to what he had to say. threatened byeel anything. we see what is happening in the u.s. with the anti-russia campaign. russia phobia is continuing.
how the situation will develop we don't know. it is not up to us. we have not initiated this process. topd: i mentioned at the there is eagerness to hear from jared kushner as well. whats the timeline likely to be, and what do the members want heafrom him? steve: they will want to hear that the stakes have gotten higher after the reports of this back channel communication that kushner reportedly just reportedly wanted to set up with russia. what was it all about? why did he wanted to be secret, why not do normal channels? what was going on? it would be a higher profile events. we don't have a timeframe for when they will get to that. the committee wants to get all of the information they can on all these things so they can ask the right questions at the right time to the right people, and the yesterday with smaller fish. they had about more than 30
interviews, but it has been with intelligence analysts and smaller fish before they get to the bigger fish. david: stephen denis covers the fed for us at bloomberg. and brian joins me, the former advisor to barack obama. he helped negotiate the paris agreement on climate. i will get his thoughts ahead of donald trump's announcement at 3:00. a programming note, tomorrow is a jobs report being released at 8:30 wall street time. we will break down the numbers. mohamed el-erian will be here. don't miss those interviews. this is bloomberg. ♪ .
to keep the u.s. embassy in israel where it is in tel aviv. during e campgn, he promised to move the embassy to jerusalem but more thaa we aftere visited the city, the president signed a waiver that will hold off on that move for another six months. presidents have signed the waiver since congress passed a law ordering the move in 1995. on capitol hill, some lawmakers signaling they intend to push back on the trump administration's moved to .mprove relations with russia the senate banking committee wants to toughen sanctions against russia over its action in syria and ukraine. the proposal targets sectors of the russian economy including mining, metals, and railways. cleanup continues in afghanistan after a massive truck bombing yesterday. the city's acting mayor says the blast caused property damage as far as 2.5 miles away from the blast site and says the attack caused more than one million dollars in damage, killing 90
people and wounding more than 450 others. there has been no claim of responsibility. it is the world's largest airplane but you will never see it as a passenger. in california, the microsoft cofounder paul allen unveiled the airplane designed to launch rockets into space from the air. it has six engines and a , expectedf 385 feet to demonstrate its first launch in 2019. global news 24 hours a day, powered by more than 2600 journalist and analysts in more than 120 countries. this is bloomberg. david: thank you. we turn to the top story, president donald trump expected to withdraw from the paris climate accord this afternoon. the agreement was a top priority for barack obama. here is president obama in 2015. president obama: this is when we
determined we would save our planet. sharect that our nations a sense of urgency about this challenge and a growing realization that it is within our power to do something about it. david: i will bring in brian deese, a former senior advisor with president obama who negotiated the deal. he joins me from portland, maine. how much of the success of this, getting to ratification had to do with the fact that business got behind it. as you put it, technological project has made clean energy a profitable investment. this seismice seen shift in global energy markets over the last several years where all of a sudden, the idea that had been accepted wisdom for decades, that to grow your economy, you have to increase your carbon emissions, has been appended. as a result, you are seeing, not
just in the energy sector, but the service sector and other parts of the economy, firms actively seeking to take economic advantage of cleaner services and using less energy. that is a big driver for the politics of this issue. david: you work on getting this --l to its -- the president when did it become clear to you that it was going to be a success? that it was going to get through and these 195 countries would sign off on it? >> it was a comic it a process until the finish. be big issue that needed to overcome initially was breaking the idea that developed countries were in one camp and developing countries in the other. the joint announcement between the u.s. and china in 2014 was a big step towards getting over that how appeared -- hump. there were different countries with different concerns that had to be addressed and a lot of
late nights in paris in 2015. since the agreement was reached, it has been 18 months, the momentum behind country action and the politics moving in this direction, everywhere except the united states, has been striking . we are seeing a lot positive momentum outside of the united states. david: the difficulties of climate change, dealing with long-term, asking constituents and policymakers to think not between now and the next election but farther. how complicated does that make this process? challenge. is a increasingly, climate change is not a in the future issue and not a long-term issue, it is a here and now issue for residents , whether they are farmers in the midwest of the united states and your crop patterns are changing or you live in the west and you are beset by greater forest fires and the changing landscape. or across the east coast with floods and increase
superstorm's. superstorms. there are more than 3 million people employed in clean energy and energy efficiency throughout the united states which is a growing sector, growing at more than twice the rate of the overall economy. the people who operate in those sectors are seeing it in their lives in the here and now. david: you are adamant that if the u.s. withdraws from this deal, it would survive. what would it look like and how worried are you that if the u.s. leaves, other signatories, other countries would follow? >> i think you are seeing that other countries intend to take up the mantle of leadership. they do not intend to walk away. just today, news that the european union and china will sign a declaration reaffirming their commitment to the paris agreement and to acting aggressively on climate change. that is indicative of what you will see going forward.
because these economies in these regions see it as and their political interest to be positioned as global leaders on clean energy. the agreement will move forward. the real issue is what the damage will be to the u.s. economy and our competitiveness if we are not around the table as the negotiations proceed. david: as you look at the framework of this deal, cities and states and business of play a role, when you take away the federal government, what changes , how much of the structure stands by the virtue of having city, state summit businesses involved -- cities, states, businesses involved? >> california is before the largest economy in the world so power in state not just there but across the country, including state that have republican governors and are more conservative leaning. a lot of the action at the state level will continue to drive emissions reductions down in the united states. you have a coronary moment where there is unanimity -- an extraordinary moment where there
is unanimity come even any fuel industry, this administrations appears to be to the right of exxon on an issue around emissions and fossil fuel usage and companies are going to act and see it in their corporate interest to do so. i think you will see a continued trend of downward emissions in the united states. at the same time, we will be handicapped because we will not be at the table when the next ndt of rules around ip or r around advanced energy technologies are being written. david: are indications is the president will pull out of the deal and when you look at the long form longevity of the paris agreement, does it matter if the u.s. does this? does it matter which way he alexa to leave the agreement -- he even asked -- theagreement -- brian:
agreement provides parameters for the countries to withdraw, three-year requirement to withdraw, a path you could go down and if that is where the inlet -- administration says, they will announce their intention to initiate a process, a multiyear process of withdrawal. if they contemplate a much more dramatic approach of withdrawing from the underlying you in -- u n framework convention, that would be a year and be a more dramatic step. you have to remember that the framework convention was negotiated and signed into law by george h.w. bush in the early 1990's and has been the platform for negotiations, not just around international climate change agreements, but a range of international protocols. the distention between those two is significant. david: a pleasure to speak with you, thank you. brian deese, former senior advisor to president obama and
now at the kennedy school. we will have live coverage of the president's decision on the paris agreement later today from the white house rose garden. coming up, barry bennett will join us to give us an inside look at the inner workings of the trump administration and address the white house staffing shakeup rumors. this is bloomberg. ♪
the most trouble the attaining that level. march 1 was the last time they closed at a record. at this moment, on track to do so and we will see if it makes it by the end of the session. i want to turn to another commodity having a rally. that is oil after we saw a drawdown in oil supply last week. oil spiking after news came out and getting closer to $49 per barrel. a lot of the energy stocks rallying, helping the average is we looked at. in particular, occidental petroleum and exxon mobil, entirely unconfirmed takeover speculation regarding occidental by exxon mobil with occidental saying it does not comment on this type of speculation. shares are moving on it which is why we mention it. inventories a big driver of the gains in oil related stocks. we have the crude oil
inventories change week by week, find this on the bloomberg, this goes back one year and 48 straight weeks there has been a drawdown on the inventories in the u.s.. the drawdown last week was the largest this year. in oil andthe rally despite the drawdown, i like to point out where we are versus where we have been over the past several years. this is the seasonally adjusted crude oil inventory data in the u.s. .his year, we are at the top seasonally adjusted basis, pretty close to where we were at this time in 2016. the average is the light green line. about 100 million barrels above where we typically are at this time of the year if you look at the average of the past five years. to put it in perspective, yes, there has been a consistent drawdown but it is still well above where it typically is at this time of year. david: thank you for the update.
a lot happening in washington, we just learned that the fire fbi director james comey expected to testify next week before the senate intelligence committee and we afraid the president -- await the president's comments on climate change. kevin cirilli is joined with a top gop consultant. >> barry bennett, a top gop consultant in washington appeared who is interned at the white house? it is a unique situation, typically white house stats are teams, this one seems to be a -- i do not know who the coach is. there does not seem to be one team on the field. >> how do you correct course, so much reporting on various infighting and different intrigue stories. all is interesting but it is starting to have a concrete impact on policy. we are seeing this with the
paris accord, how do you correct course? the current regime is not empowered to fix it, there needs to be someone who is. it cannot go on like this. i am tired of reading these leaks from one side attacking the other side and back-and-forth. they work within 10 feet of each other, it is insane. >> the president said that there needs to be an investigation and instructed jeff sessions to do that. now hearing reports that former fbi director james comey will testify next week before the senate intelligence committee at 10:00 a.m. what will he say? this has the potential to derail more policy? tried to said no one appear this investigation and i doubt he will take back that testimony. he may add more color to it but he has already testified that no one tried to impede this
testimony -- his investigation. n, paul michael cohe manafort, roger stone, the list goes on about where this investigation is heading. you will work with all of these people, what does this administration have to do to put to rest allegations of collusion with russia? barry: d former fbi director do his job and stop talking about it. with it news hit, view directly, fast, full disclosure and move on. get back to being on message which is about jobs. adp estimates 280 -- the stock market, all three doing fantastic today, new records. are they talking about this, no. >> you are on the trump campaign. did you see any evidence the demonstration was colluding with
the russians? barry: the campaign was so small it could barely collude with itself so i did not see any russian collisions, i do not know what that means. >> let's switch years. the paris accord, the pair is expected to move from it, what will it do to the energy and technology sector? prominent businesses, goldman sachs, morgan stanley, yuan must, saying this is a terrible idea -- elon musk, saying this is a terrible idea. we will reach our goals by technology and not mandate, just because of advancements in technology. need to spend $3 billion of u.s. taxpayer money to help the un group go out. >> why not? barry: $3 billion, that is why and taxpayers in youngstown, ohio or more interested in more bridges and better schools that helping some other country that has a very small impact make
really bad investments. >> when we talk about this, the business community so in favor of the paris accord. what message does it send, not only to the business community, but global counterparts who want to stay in on this? barry: we are not abandoning our commitment to clean up the environment. we are in bank -- we are abandoning this process that calls for spending $100 billion of public money to go help poor countries who are not the problem. >> is all of this noise hurting the president effort to a couple of tax reform and health-care reform? barry: it is a distraction, i do not think it is hurting him. i think the senate will pass a long-term competitive business rate which is what the economy needs. >> let's talk about former democratic presidential nominee, hillary clinton, she gave a very fiery speech yesterday, what did
you make of it? barry: it is interesting, i have never seen a losing candidate take on their own party like that. she apparently is spending summer on the nile or in denial. it was unfortunate she attacked her party, they had a better operation than we did. is the week a signal -- the tweet a signal to the russians? barry: no one knows what it means. do not miss the interview with tom steyer. this is bloomberg. ♪
trump economy. looking at the white house and the president expected to the white house rose garden to give a statement on the paris agreement and whether he plans to withdraw from that a court and we will carry it live on bloomberg television across bloomberg platforms. the international economic forum kicked off in st. petersburg and erik schatzker sat down with a russian politician and businessman and asked him about the future of russia in the era of president trump. sooner or later it will all settle. >> you have not given up hope? >> no, it will take some time but officials sanctions will go later -- officials say since will go later. -- sanctions will go later. they will not be limited by
sanctions but they hope, they do -- in a notgo stable situation. in essence, they do sanctions and this will go very fast. it will be profitable. if it will be interesting to do business together in russia for russian companies. it will go. no legal sanctions will affect that. i learned from american investors, which is a real problem. the russian economy, we stopped american investors and they said the sanctions do not stop us. the economy of russia, it is not growing fast. it is not interesting to invest. you have to do a strategy and show us how the russian economy will develop when the oil price drops. what will be the new sectors,
the new vehicles for the growth of the russian economy? the second question -- is there a plan? how to do that? is there a team? this has to be answered. >> if those are some of the things preventing investments and an improvement in relations between russians and americans, what will happen if the investigations currently underway back in the united states establish that there was some kind of improper relationship with the russian state or russian actors and the trump team or members of his campaign. what happens then? that the psychology of business will -- this will not prevent -- i do not believe in the investigation. it is psychological waste.
we have seen that before, in russia we have seen that, and in other countries come in the states. -- and in other countries, in the state. 10 years before. i do not believe it will work. the second thing, businessman have different types of relationships. psychological relationships. the government thinks their way and businessman think their way. position.ng the state we have to follow the rules. business will always find its way. politicianscan make cooperationer, and with each other.
business influences policies. david: a russian politician and businessman in st. petersburg earlier today. coming up, we have live coverage of the president's decision on the paris agreement today at 3:00 p.m. wall street time, that statement coming from the white house rose garden at 4:00, richard branson will sit down with bloomberg foreign exquisite interview about the paris agreement and kept all our interviews on the bloomberg function on tv and find related functionality discussed on the program right there in the right-hand column. this is bloomberg. ♪
♪ >> live in new york over the next hour, here are the top stories from around the world and on the bloomberg. president donald trump expected to announce his decision to withdraw the u.s. from the landmark paris accord in just one hour, the exit could bring uncertainty for the global efforts to fight climate change. if you look at markets, and agreement to the easing uncertainty. a ceo told bloomberg what he thinks that opec's decision to extend supply cuts brought stability to global oil markets. june 8 is when the fire fbi director james comey will testify on whether the president or his associates had improper contact with russia. u.s. markets close in two hours and new records are insight