Transcripts For BLOOMBERG Whatd You Miss 20170601

First. From the middle east to europe as leader of the free world, President Trump reaffirmed historic alliances and forged new relationships and called on the wider world to confront the threat of terrorism in new and renewed ways. And by the action the president will announce today the American People and the wider world will see once again our president is choosing to put american jobs and American Consumers first. Our president is choosing to put American Energy and american industry first. And by his action today, President Donald Trump is choosing to put the forgotten men and women of America First. So with gratitude for his and admiration for his unwavering commitment to the American People, it is now my high honor and distinct privilege to introduce to all of you the president of the United States of america, President Donald Trump. [applause] President Trump thank you very much. Thank you. I would like to begin by addressing the terrorist attack in manila. Were closely monitoring the situation, and i will continue to give updates, if anything happens during this period of time, but it is really very sad as to whats going on throughout the world with terror. Our thoughts and our prayers re with all of those affected. Before we discuss the paris accord, id like to begin with an update on our tremendous, absolutely tremendous economic progress since election day on november 8. The economy is starting to come back and very, very rapidly. Weve added 3. 3 trillion 3. 3 trillion in stock market value to our economy and more than a million private sector jobs. Eve just returned from a trip overseas where we concluded nearly 350 billion of military and Economic Development for the United States creating hundreds of thousands of jobs. It was a very, very successful trip. Believe me. [applause] thank you. Thank you. In my meetings at the g7, we have taken historic steps to demand fair and reciprocal trade that gives americans a level Playing Field against other nations. Were also working very hard for peace in the middle east and perhaps even peace between the israelis and the palestinians. Our attacks on terrorism are grately stepped up, and you see that. You see it all over. From the Previous Administration, including getting many other countries to make major contributions to the fight against terror. Big, big contributions are being made by countries that werent doing so much in the form of contribution. One by one, we are keeping the promises i made to the American People during my campaign for president. Whether its cutting jobkilling regulations, appointing and confirming a tremendous Supreme Court justice, putting in place tough new ethics rules, achieving a record reduction in illegal immigration on our southern border, were bringing jobs, plants and factories back into the United States at numbers which no one until this point thought even possible. And believe me, weve just begun. The fruits of our labor will be seen very shortly even more so. On these issues, and so many more, were following through on our commitments and i dont want anything to get in our way. I am fighting every day for the great people of this crinlt. Country. Therefore, in order to fulfill my solemn duty to protect america and its citizens, the United States will withdraw. Rom the Paris Climate Accord [applause] thank you. Thank you. But begin negotiations to reenter either the paris accord or really entirely new transaction in terms that are fair to the United States, its businesses, its workers, its people, its taxpayers. So were getting out. But we will start to negotiate and we will see if we can make a deal thats fair. And if we can, thats great. And if we cant, thats fine. [applause] as president , i can put no other consideration before the wellbeing of american citizens. The Paris Climate Accord is simply the latest example of washington entering into an agreement that disadvantages the United States to the exclusive benefit of other countries. Leaving American Workers who i love and taxpayers to absorb the cost in terms of lost jobs, lower wages, shuttered factories, and vastly diminished economic production. Thus as of today, the United States will cease all implementation of the nonbinding paris accord and the draconian financial and economic burdens the agreement imposes on our country. This includes ending the implementation of the nationally determined contribution and very importantly the Green Climate fund which is costing the nited states a vast fortune. Compliance with the terms of the paris accord and the owners Energy Restrictions that its placed on the United States could cost america as much as 2. 7 million lost jobs by 2025 according to the National Economic research associates. This includes 440,000 fewer manufacturing jobs, not what we need, believe me. This is not what we need. Including automobile jobs and the further decimation of vital American Industries on which countless communities rely. They rely for so much and we would be giving them so little. According to the same study by 2040, compliance with the commitments put into place by the Previous Administration would cut production for the following sectors. Paper, down 12 . Cement, down 23 . Iron and steel down 38 . Coal, and i happen to love the coal miners, down 86 . Natural gas, down 31 . The cost to the economy at this time would be close to 3 trillion in lost g. D. P. And 6. 5 million 6. 5 million industrial jobs while households would have 7,000 less income and in many cases much worse than that. Not only does this deal subject our citizens to harsh economic restrictions, it fails to live up to our environmental ideals. As someone who cares deeply about the environment, which i do, i cannot in good conscience support a deal that punishes the United States which is what it does. The worlds leader in environmental protection, while imposing no meaningful obligations on the worlds leading polluters. For example, under the agreement, china will be able increase these emissions by a Staggering Number of years, 3. They can do whatever they want for 13 years. Not us. Ndia makes its participation contingent on receiving billions and billions and billions of dollars in foreign aid from developed countries. There are many other examples. But the bottom line is the paris accord is very unfair, at the highest level, to the United States. Further, while the current agreement effectively blocks the development of clean coal in america, which it does, and the mines are starting to open up, were having a big opening in two weeks. Pennsylvania, ohio, west virginia, so many places. A big opening of a brand new mine thats unheard of for many years thats not happened. They asked me if ill go. Im going to try. China will be allowed to build hundreds of additional coal plants. So we cant build the plants, but they can. According to this agreement. India will be allowed to double its Coal Production by 2020. Think of it. India can double their Coal Production. Were supposed to get rid of ours. Even europe is allowed to continue construction of coal plants. In short, the agreement doesnt eliminate coal jobs. It just transfers those jobs out of america and the United States. And ships them to foreign countries. This agreement is less about the climate and more about other countries gaining a financial advantage over the United States. The rest of the world applauded when we signed the Paris Agreement. They went wild. They were so happy. For the simple reason that it put our country, the United States of america, which we all love, at a very, very big economic disadvantage. A cynic would say the obvious reason for economic competitors and their wish to see us remain in the agreement is so that we continue to suffer the selfinflicted Major Economic wound. We would find it very hard to compete with other countries from other parts of the world. We have among the most Abundant Energy reserves in the planet sufficient to lift millions of americas poorest workers out of poverty. Yet under this agreement, we are effectively putting these reserves under lock and key. Taking away the great wealth of our nation. Great wealth. Phenomenal wealth. Not so long ago, we had no idea we had such wealth. And leaving millions and millions of families trapped in poverty and joblessness. The agreement is a massive redistribution of United States wealth to other countries. At 1 growth, renewable sources of energy can meet some of our domestic demand. But at 3 or 4 growth, which i expect, we need all forms of for able American Energy our country. [applause] will be a grave risk of brownouts and other blackout. Our businesses will come to a halt in many cases. And the American Family will suffer the consequences in the form of lost jobs and a very diminished quality of life. Even if the Paris Agreement were implemented in full, with total compliance from all nations, it is estimated it 2 uld only produce a. Degrees, this much, celsius eduction in global temperature by the year 2100. Tiny, tiny amount. In fact, 14 days of Carbon Emissions from china alone would wipe out the gains from america and this is incredible statistic, would totally wipe out the gains from americas expected reductions in the year 2030. After we have had to spend billions and billions of dollars, lost jobs, closed factories and suffered much Higher Energy costs for our usinesses and for our homes. As the wall street journal i dont this morning, the reality is that withdrawing is in americas economic interest and wont matter much to the climate. The United States under the Trump Administration will continue to be the cleanest and most environmentally friendly country on earth. Will be the cleanest. Were going to have the cleanest air. Were going to have the cleanest water. We will be environmentally friendly. But were not going to put our businesses out of work. And were not going to lose our jobs. Were going to grow. Were going to grow rapidly. [applause] and i think you just read it just came out minutes ago the Small Business report, Small Businesses, as of just now are booming. Hiring people, one of the best reports theyve seen in many years. Im willing to immediately work with democratic leadersto either negotiate our way back in to paris, under the terms that are fair to the United States and its workers or to negotiate a new deal that protects our country and its taxpayers. [applause] so if the obstructionists want to get together with me, lets make them nonobstructionists. We will all sit down and we will get back into the deal and well make it good. And we wont be closing up our factories, and we wont be losing our jobs. And well sit down with the democrats and all of the people that represent either the paris accord or something that we can do thats much better than the paris accord. And i think the people of our country will be thrilled. And i think then the people of the world will be thrilled. And until we do that were out of the agreement. I will work to ensure that america remains the worlds leader on environmental issues. But under a framework that is fair and where the burdens and responsibilities are equally shared among the many nations all around the world. No responsible leader can put the workers and the people of their country at this debilitating and tremendous disadvantage. The fact that the paris deal hamstrings the United States while empowering some of the worlds top polluting countries should dispel any doubt as to the real reason why foreign lobbyists wish to keep our magnificent country tied up and bound down by this agreement. Its to give their country an economic edge over the United States. Thats not going to happen while im president. Im sorry. [applause] my job as president is to do everything within my power to give america a level Playing Field. And to create the economic, regulatory, and tax structures that make america the most prosperous and productive country on earth. And with the highest standard of living and the highest standard of environmental protection. Our tax bill is moving along in congress. And i believe its doing very well. I think a lot of people will be very pleasantly surprised. The republicans are working very, very hard. We would love to have support from the democrats. But we may have to go it alone. But its going very well. The Paris Agreement handicaps the United States economy in order to win praise from the very foreign capitals and global activists that have long sought to gain wealth at our countrys expense. They dont put America First. I do. And i always will. [applause] the same nations asking us to stay in the agreement are the countries that have collectively cost america trillions of dollars through tough trade practices and in many cases lax contributions to our Critical Military alliance. You see whats happening. Its pretty obvious to those that want to keep an open mind. At what point does america get demeaned . At what point do they start laughing at us as a country . We want fair treatment for its citizens. And we want fair treatment for our taxpayers. We dont want other leaders and other countries laughing at us anymore. And they wont be. They wont be. Was elected to represent the citizens of pittsburgh, not paris. [applause] i promise i would exit or renegotiate any deal which fails to serve americas interests. Many trade deals will soon be under renegotiation. Very rarely do we have a deal that works for this country. But they will soon be under renegotiation. The process has begun from day one. But now were down to business. Beyond the severe Energy Restrictions inflicted by the paris accord, it includes yet another scheme to redistribute wealth out of the United States through the socalled Green Climate fund, nice name. Which calls for developed untries to send 100 billion to developing countries, all on op of americas existing and massive foreign aid payments. So were going to be paying billions and billions and billions of dollars. And were already way ahead of anybody else, many of the other countries havent spent anything. And many of them will never pay one dime. The green fund would likely obligate the United States to commit potentially tens of billions of dollars of which the United States has already. Nded over 1 billion nobody else is even close. Most of them havent even paid anything. Of uding funds raided out americas budget for the war against terrorism. Thats where they came. Believe me, they didnt come from me. They came just before i came into office. Not good. And not good the way they took the money. United nations, departing top climate officials reportedly described the 100 billion per year as peanuts and stated that the 100 billion is dog. Ail that was the in 2015, the Green Climate funds executive director reportedly stated that estimated funding needed would increase to 450 billion per year after 2020. And nobody even knows where the money is going to. Nobody has been able to say here is it going to . Of course the worlds top polluters have no affirmative obligations under the green fund. Which we terminate. America is 20 trillion in debt. Cashstrapped cities cannot hire enough Police Officers or fix vital infrastructure. Millions of our citizens are out of work and yet under the paris accord, billions of dollars that ought to be invested right here in america will be sent to the very countries that have taken our factories and our jobs away from us. O think of that. There are serious legal and constitutional issues as well. Foreign leaders in europe, asia, and across the world should not have more to say with respect to the u. S. Economy than our own citizens and their elected representatives. Thus our withdrawal from the agreement represents a reassertion of americas sovereignty. [applause] our constitution is unique among all nations of the world. Nd it is my highest obligation and greatest honor to protect it. And i will. Staying in the agreement could also pose serious obstacles for the United States as we begin the process of unlocking the restrictions on americas Abundant Energy reserves which we have started very strongly. It would once have been unthinkable that an International Agreement could prevent the United States from conducting its own domestic economic affairs. But this is the new reality we face if we do not leave the agreement or if we do not negotiate a far better deal. The risks grow as historically these agreements only tend to become more and more ambitious over time. In other words, the paris framework is just the starting point as bad as it is. Not an end point. An exiting the agreement protects the United States from future intrusions on the United States sovereignty. And massive future legal liability. Believe me, we have massive legal liability if we stay in. As president , i have one obligation, and that obligation is to the American People. The paris accord would undermine our economy, hamstring our workers, weaken our sovereignty, impose unacceptable legal risk and put us at a permanent disadvantage to the other countries of the world. It is time to exit the paris accord. [applause] and time to pursue a new deal that protects the environment, our companies, our citizens, and our country. It is time to put youngstown, io, detroit, michigan, and pittsburgh, pennsylvania, along with many, many other locations within our great country before paris, france. It is time to make America Great again. Thank you. [applause] thank you. Thank you very much. [applause] thank you. Thank you very much. Thank you very much. Very important. Id like to ask scott pruett who most of you know and respect as i do, just to say a few words. Scott, please. Scott thank you, mr. President. Your decision today to exit the paris accord reflects your unflinching commitment to put America First. And by exiting, youre fulfilling yet one more Campaign Promise to the American People. Please know that im thankful for your fortitude, your courage, and your steadfastness as you serve and lead our country. America finally has a leader who answers only to the people, not to the special interests who had their way for way too long and everything you do, mr. President , youre fighting for the forgotten men and women across this country. Youre our champion for the hardworking citizens all across this land who just want a government that listens to them and represents their interests. You have promised to put America First in all that you do. And youve done that in any number of ways from trade, to national security, to protecting our border, to right sizing washington, d. C. And today, you put America First with regard to International Agreements and the environment. This is an Historic Restoration of American Economic independence, one that will benefit the working class, the working poor, and working people of all stripes. With this action, youve declared that the people are rulers of this country once again. And it should be noted that we as a nation do it better than anyone in the world in striking the balance between growing our economy, growing jobs, while also being a good steward of our environment. We owe no apologies to other nations for our environmental stewardship. After all, before the paris accord was ever signed, america had reduced its co2 footprint to levels from the early 19 unites. Between the years 2000 and 2014, the United States reduced its Carbon Emissions by 18 plus. And this was accomplished not through government mandate, but accomplished through innovation and technology of the American Private sector. For that reason, mr. President , you have corrected the view that was paramount in paris. That somehow the United States slud penalize its own economy, be apologetic, lead with our chin, while the rest of the world does little. Other nations talk a good game. We lead with action. Not words. [applause] our efforts, mr. President , as you know should be on exporting our technology, our innovation, to nations who seek to reduce their co2 footprint to learn from us. That should be our focus. Versus agreeing to uneef achievable targets that harm our economy and the American People. Mr. President , it takes courage, it takes commitment to say no to the plaudits of men while doing whats right by the American People. You had that courage. And the American People can take comfort because you have their backs. Thank you, mr. President. [applause] scarlet that was the president concluding his remarks along with the e. P. A. Director scott pruett. He the gist of his message, 30minute long speech was that we are getting out of the paris accord, climate accord but we will start to negotiate a deal that is fair. He also says the u. S. Withdrawal represents reassertion of u. S. Sovereignty and the paris accord was unfair to the United States at the highest levels. But it imposes no meaningful obligation on the worlds leading polluters citing china and india, for instance, as examples. He also added that we need all forms of American Energy for Economic Growth going back to that point that the paris accord hurt u. S. Jobs, u. S. Industry, and the u. S. Economy. Lets bring in our roundtable. Bloomberg White House Reporter Shannon Pettypiece and Bloomberg Business reporter eric rosin who wrote the cover story on u. S. Climate change for Bloomberg Businessweek this past week. Let me start with you, shannon. This was a 30minute long speech. In which the president addressed all facets of the Paris Climate Accord. But he did start with the economy. So it was very much geared toward making the point that by staying in the Paris Climate Accord the u. S. Economy was hurt. Yes. And this theme that the forgotten man, that he has not given up on his Campaign Promise to think of the forgotten man. And that this is putting America First and putting American Workers first. It was interesting the examples he cited. Pittsburgh and youngstown. And said something to the effect of i was elected by the people of pittsburgh, not paris. And this is not the best interests of detroit and pittsburgh and youngstown. Pittsburgh has revitalized itself as a center of Green Technology. And as has youngstown as its tried to reinvent its economy past steel and investing in Green Technology. While he tried to make this about the economy there are going to be many Business Leaders and many parts of the Business Community that are saying really there is a very vibrant Business Case to be made for staying in this agreement. And of meeting these targets versus trying to pull out and get a better deal. Which, you know, maybe you can. Maybe you cant. Eric, i want to ask you about his characterization of the deal. The way he made his argument was essentially that this really imposes very little on some major carbon emitters like china and india. That the u. S. Is bearing the brunt of the restrictions and that furthermore on top of the lack of restrictions all these payments that the u. S. Is making and talked about this green fund. How would you how fair is that characterization of the structure of paris . The Paris Agreement is again, its a federation of voluntary agreements. And whats interesting about the president s remarks is that 25 years after some of these criticisms of International Climate policy were first aired, theyre still able to stretch to accommodate and sort of ever widening bucket of phenomenon. So some of the things we heard e are fair and historic agreements. Pour im sorry. Criticisms of things like the paris accord. I think that the most concrete thing that you just asked about is the Green Climate fund. Because that is set up really to help poorer countries adapt to the changing climate. And so there are really concrete implications of that that you can squint and start to see. Congress still has has a big say in how the United States spends its money. But i would i would watch that sort of very not very wellknown. Particularly wonky thing to look for how poorer nations will respond to what the United States did today. Julia we got a lot of response to that point from countries that are expressing in general disappointment at this stage. But i want to get back actually to the point that joe was making there about this idea that there is a cost and negative and a relative cost to the United States of signing up for these guidelines. We reiterate the voluntary guideline nature of this accord. How does a revised deal work better for the United States in these guidelines . Its its the paris accord was built to be so flexible that countries are encouraged to theyre encouraged to tighten their National Commitments every five years or so. But its up to individual nations to say what they think they can do. And that that means that every nation is and only only itself is responsible for what it says it can contribute. Theres you know, washington decided what we can do and washington as it just did can pull out or make a new plan. Julia to be fair to donald trump thats the criticism at the time this was signed. Why should the United States stick to its commitments under these under this agreement when other countries can back eric i would press at that a little. China has eight times more Solar Energy Jobs than the United States does. They have two thirds of the world total solar jobs. So if youre interested in jobs, and youre not talking about Renewable Energy, youre leaving something out. Scarlet let me go back to shannon who is at the white house. Shannon, there was obviously quite a debate within the west wing over whether the president should withdraw the United States from the paris accord. We know that in one side, there was ivanka trump and gary kohn who are cohn who are pushing for the accord to make changes and steve bannon the strategic advisor. What does it say about the Power Dynamics in the white house . Is bannon up and gary cohn is down in terms of whose influence is stronger . Shannon well, it was interesting, bannon was seated next to gary cohn in the rose garden and i was watching their body language and bannon with his arms crossed and cohn the other way. I saw some. Stay camps influence in this speech. Certainly to the effect of oh, were pulling out but well get a better deal and negotiate a better deal. And i feel like i was left with the impression, the president didnt come out and make clear what his position on Climate Change is. But he was certainly talking about pollution and how this deal doesnt go far enough. Something that Bernie Sanders had said. And talking about wanting to get a better deal that possibly even lowers emissions more. And that is a big reversal to comments that trump was making just two years ago when he was talking about ice caps at record levels. About socalled Climate Change. About how cold it is in new york this june. What happened to Climate Change . Those very skeptical remarks. And of course having his e. P. A. Chief, scott pruett, another big skeptic. So i feel like there was a shift in tone toward maybe acknowledging that Carbon Emissions, reducing those is a good thing to work toward and maybe not through this deal but another deal. Scarlet maybe evolution in that deal. Bloombergs White House Reporter shannon peteypiece and Bloomberg Business weeks eric roston who wrote the cover story. It is on newsstands tomorrow. Or i should say right now. Eric, congratulations. Julia we were talking about the International Response to this decision. Brake obama nt has made a statement. And the nation that is reap the benefits in jobs and industries created. I believe the United States of america should be at the front of the pack. But even in the absence of american leadership, even if this administration joins a small handful of nations that reject the future. Now, it depends on definitions of course. But there were two countries that didnt sign up. Syria and nicaragua. Nicaragua because they wanted more stringent controls. Scarlet they thought it didnt go far enough. Julia so donald trump in a bucket with syria. President assad. Joe and we had telvesa c. E. O. Elon musk tweeting right after the announcement. Im departing president ial council Climate Change is real leaving paris is not good for america or the world. He had worned that he would do this previously when reports first surfaced that donald trump was inclined to pull out. And his his participation in the panel was always sort of controversial. And hes always had this awkward relationship given how the nature of his businesses. But now hes making it official. Scarlet and elon musk not the only Business Leader saying anything. Amazon also continues to support the paris climate pact according to an amazon spokeswoman. Zwhr julia we heard from tim cook and i wonder what all those guys will say at this stage. Billionaire climate activist tom steyer the founder of next gen climate. And he joins us now from San Francisco. Sir, thank you so much for joining us. I just want to get your instant response here to this decision. And just how you believe other corporate c. E. O. s are going to react now. Tom i think that this decision and this speech was dishonest, destructive, and entirely inconsistent. And i think that the american Business Community has already started to speak and spoke out before the speech requesting the president not withdraw from paris. But i think if you look at that speech, it was a very dishonest statement of either we can have jobs or we can protect our environment. And have a healthy future. And that is a contrast and a distinction that has been laid to rest long ago. That is an absolute lie. We can have a vibrant jobs economy. We can create millions of net new jobs out of clean energy. And protect our environment at the same time. Joe tom, what specifically was the most in your view dishonest thing President Trump said there . Tom i think that there were three basic lies that he went with. Weve done a study with mike bloomberg, and hank paulsen of the impact of moving to a clean economy and it creates net millions of new jobs, higher incomes, and lower costs for americans. So thats the first big lie. The second is he is abandoning American Global leadership. When he said people around the world may start to laugh at us. If you listen, they started to laugh at us about this. Angela merkel said were giving up on american leadership. And the third thing that i thought was extremely uncloor was he said unclear was he said it saves only 1. 7 cellsius and we should do more. It was very inconsistent in i dont want to do this because it would create jobs and only do it if we reduce the climate more. Even so i looked at this as an absolutely dishonest and destructive act against the American People. Because moving to clean energy is going to create millions of goodpaying jobs and secure our health in the future. Julia tom, youve made it about far more than Climate Change and about the credibility of this administration and their path forward. But i guess what i want to ask you here is whether actually signing up to this accord matches the corporate you have to make these Investment Decisions on cleaner energy anyhow. Will they still continue to make decisions and push toward a cleaner future irrespective of what this administration doesnt save . Tom i think that what were seeing in the marketplace is the cost of generating electricity and storing it through clean renewable methods is coming down dramatically. And has crossed fossil fuels. I think that the president s attempt to prop up the fossil fuel industry is something thats not going to work. And what he should be turning his attention to is how were going to create the most good jobs and lead the world in clean energy. And make sure that any workers that are displaced are retrained in and taken care of by the government. What hes doing is absolutely a slap in the face to American Workers and to our future. Scarlet tom, do you take any solace in saying the u. S. Would look to renegotiate the Paris Climate Accord or perhaps pursuing new agreement in which the u. S. Doesnt stand to lose as much at the expense of other countries or would benefit more than it currently does under the Paris Climate Accord . Tom well, one of the old sayings on wall streelt is that people are not allowed to sell you blue sky. That they cant make promises about the blue sky thats to come and have people rely on them. And that is a promise of blue sky that has nothing behind it. As far as im concerned. Joe tom, how do you counter trumps argument that the climate agreement really doesnt put much of a restriction on some of the biggest polluters in the world such as china and india . Tom look, when you look at this agreement, it is a voluntary agreement with transparency. In every country basically came they table and said what thought they could do, but there is absolutely no punishment for not doing it. So really what happened is 194 countries, most countries in the history of the they thought planet, came together and said we have a critical problem that were going to solve together voluntarily. So actually what were seeing is other countries moving way ahead of their promises. He loves to bash china. China tried to move way ahead of their promises because they see that leading the world in Energy Generation and clean tech is the biggest opportunity that theyre ever going to have as a country to lead economically. So for us, to shoot ourselves in the foot, and get rid of the all the opportunities to lead in terms of innovation, job creation, business creation, is one of the dumbest things and most destructive things i can imagine. Julia tom, the other thing President Donald Trump said there was it unfairly penalizes the United States in terms of financial costs as well. He talked about ending the green fund as well. Does he have a point there . Is another situation where theres unfair bias on the United States in terms of the financials. Tom one of the things that was very clear from this speech, but has been clear in every Budget Proposal and every speech, is the idea that for some reason, the United States will work in conflict and in competition with other nations of the world. We dont have any partners. We dont have any allies. We dont have anyone we trust. And no one trusts us. Well, my longterm experience of 30 years in the private sector says actually, the best way to work is with trusted partners who support each other and you all do better. Its not a zero sum game. Hes looking at the world and saying, everything they get, we lose. Actually, in the real world, if we support each other, we all do better. If you look back to the Marshall Plan we supported europe because we thought it was in our interests. Here we are facing a critical world problem that we need to solve together. And hes saying oh, no. I dont trust anyone. No one should trust me. Its all about me beating you. That is an absolutely foolish and destructive opinion. And its absolutely antiamerican. And it goes back on hundreds of years of the United States having high ideals and living them out and leading the world forward. Scarlet theres a lot of identity politics wrapped up in there as well. Inglis a. Former republican congressman was telling us earlier that the reason why the right is so resistant to environmental reform is because the left seems to require full Government Support for protection policies. Whereas the right is looking for a solution that doesnt expand the government. That doesnt require taxing or regulating more. And reduces what they call personal liberty. Where is the Common Ground here for a bipartisan solution to address Climate Change . Tom let me point out how ironic and untrue that argument is. What im talking about is american industry leading the world in innovation and technology in new industries. What the Trump Administration is trying to do is not just pick winners and losers, they are trying to make winners out of losers. They are trying to take the fossil fuel industries that are in decline and pretend that theyre not being superseded by american innovation, american research, American Business knowhow. And absolutely ridiculous to me that anyone could put forth an idea that the idea that we wont lead the world that were going to give away leadership in some. Biggest industries in the world for the rest of the world and somehow in our interests. Thats just plain dumb. Scarlet a very feared up tom steyer founder of Nextgen Climate joining us from San Francisco with his unvarnished take. Thank you very much. Tom thank you very much. Scarlet lets go to Corey Johnson and youll be speaking to a guest with a very unique take. Yeah. Maybe almost as fired up as tom steyer is. Richard branson, chairman of the virgin group. All kinds of businesses. And one of the 30 c. E. O. s signed a letter today urging President Trump not to take this stance to pull out of the Paris Climate Accord and now that hes done this. Richard, what do you think . Well, its a very sad day. I think its a sad day for americans. Its a sad day for the world. And a sad day for our grandchildren. And obviously we have to pick ourselves up on a global basis and just get on and try to sort the problem out ourselves with the other 193 countries around the world. And still try to drive toward a carbonfree world in 2050. Reporter specifically the Business Impact i think is so important. So important to our viewers of bloomberg. But i think important to you as well. Talk to me about why Climate Change is so important and fighting Climate Change is so important to you and your businesses . Fighting Climate Change is important to me as an individual. As a father and a grandfather of four lovely children, in the same way when the whole world got together to fight c. F. C. Gases they all signed an accord together and got on top of the problem of c. F. C. Gases, and this is the First Time Since then that the world has got together to sign up for something which is really important for our children and grandchildren. And for the world we live in. And its just makes me want to cry that a great country like america is abandoning its duty. This was a voluntary agreement. It wasnt an agreement that was going to number america with vast expense. The fact the fact is that clean energy is now cheaper than coal and with the support of government, clean energy can power america by 2050. And then that same clean energy can power for centuries and centuries just from the sun and from wind. Its its blind beingly obvious that the world needs to be run in a way that is clean, that is cheap, and this was the way forward. And just sad that america is abandoning it, its contribution to this. And leaving europe and china and other countries to romp ahead but the reason im sad is an 400 years ago no man is island and the Carbon Emissions from america, theres nothing to stop them going around the rest of the world. And we do need america to be part of this. Reporter so says a man who is on an island at this very moment, of course. I wonder, too, if that affects your thinking that sort of things that you do around the world, that are often so often in the water and you see this change. Where have you seen personally the effects of Climate Change that have struck you . Well, ive been to the ant arctic and to the arctic. I live on an island. And the effects are just beginning. And you can just see it in slightly higher tides. Slightly less well, quite a lot less ice in the arctic. Glacierers moving backward. Just the start. And thats whats so sad. Trump says that were only going to reduce it by a tiny bit if we all do this together. Thats not the case. If we move quickly and drmedly, we can protect our grandchildren from the effects of Climate Change. And we can have a wonderful environment that we live in in our 60s, clean environment. Where people are not going to get ill from pollution. We can have fuel that is that were not in danger of suddenly spiking at 150 a barrel again. It will forever be under 30 a barrel. I just come from aruba where we set up the biggest solar power and less than 10 cents per kilowatt and four times cheaper as oil was only two or three years ago. And the price is coming down and down and down. So its just incomprehensible that america has a president that is lying basically. Its too sad for words. Reporter its interesting, though, that we have these sort of this nationalist movement. Not just in the u. S. But in the u. K. As well. The entire Brexit Campaign also seems to be focused on looking inwardly. And i wonder, your notions of brexit right here, how does brexit affect both climate and your business interests there . Look, i think that i personally believe that what happened with brexit perhaps from the reaction against both will be so strong. And were beginning to see it in france, and i think well see it in germany. That the world will come back to a much more sensible way of normal way of thinking again. And a thinking where nations will Work Together again in everybodys interests. I mean, this whole thing about lets just fight for our country and nobody elses country. Lets just fight for our people and nobody elses people. Its horrible. Its we ought to be a united world. That works together and fights for all our interests. And i really do think that there would be a massive rejection of the kinds of policies that are emanating out of america. And i think youll find that the way the election is going in england, the party that was for brexit, that had a massive lead, that lead has almost disappeared. And you have you have a party that was almost left f communism having a chance of maybe even so i think its were an in interesting consolidation. But Business Leaders. Vuft like to end on this. The thousand Business Leaders that are the Main Companies in america and around the world, we all know the Climate Change and all want to work with it. And oil companies, as well as Power Companies as well as airlines, you know, we all want to fix it. For the sake of our grandchildren and well get on and do the absolute utmost to get it fixed. Even if the American Government doesnt support it. Reporter Richard Branson joining us from the British Virgin islands. Scarlet Corey Johnson, editor at large joining us from San Francisco. Coming up, peter henry, the dean of n. Y. U. School of business will be joining us next. Hell talk about coordinating Global Policy and the wake of the u. S. s departure from the paris accord. This is bloomberg. Marc time for first word news. Reaction is coming in following President Trumps decision to withdraw the United States from the Paris Climate Accord. Norm president Barack Obama Says that the Trump Administration is joining a small handful of nations that reject the future by withdrawing from the agreement. Mr. Obama said today the countries that stay in the paris deal will reap the benefits of job and industries created. He says the u. S. Should be at the front of the pack. House Speaker Paul Ryan commended President Trump and called the paris accord simply a raw deal for america. The european commissioner on Climate Action said that the world can continue to count on europe as a climate leader and belgiums Prime Minister called the u. S. Decision quoting here a brutal act. The Philippines Police chief says theres no evidence that an attack at the resorts world hotel and casino in manila is terrorism. And that theres no confirmed reports of gunshot wounds. The Authorities Say theyre still looking for an assailant in the building. However, according to Sight Intelligence Group which monitors extremist activity, an Islamic State operative indicated responsibility for the attack. The complex was placed on lockdown. A spokesman for the Philippine Red Cross told the manila times that at least 25 people were injured and have been taken to various hospitals. The Trump Administration added fresh sanctions for individuals and companies with ties to north korea. The list includes three individuals, six entities, moscowbased for being involved with the countrys weapons program. North decree jas president kim jong un has continued to sign u. N. Resolutions launching tests and the u. S. Tested its Missile Defense shield this week. Former Vice President joe biden has launched a Political Action committee ramping up speculation about a president ial run in 2020. Declaring this is the time for big dreams and unveiled the american possibilities pact which allows him to raise money for candidates and maintain relationships with longtime donors. The move comes as the democrat search for new leadership in the wake of Hillary Clintons loss to donald trump. Global news 24 hours a day powered by more than 2,600 journalists and analysts in hover 120 countries. Im mark crumpton. Marc crumpton. Joe lets get a recap of todays Market Action and so much news happening we want to hit some of the stuff going on in markets. A green day all around. New highs with some of the major indices. Dow jones up. 6. S p up. 76. Naz up a little higher and not on the board but i want to mention real quickly, the small caps, s p 600 Small Cap Index up 1. 7 . So major outperformance today for the small caps. Julia and a look at the retailers now. Specifically lululemon and hoping for a positive retail story and a nice pop in after hours trade. If we show you this earnings, better than expected in terms of the numbers. Thats two cents a share. Beating analyst forecasts of 28 cents. Also better than expected on the net revenue line, 520 million ahead of the 530 million estimates and also announced a corporate restructuring. Aveva the active wear brand for girls will go primarily online. So 40 out of 55 stores are going to be closing. Costs associated with that anticipated to be 50 million to 60 million during the fiscal year. That should complete by the Third Quarter of 2017. So investors liking what theyre hearing on that front. Scarlet nice pop on lululemon shares. Third world countries determined to boost growth could learn from china, india and brazil. According to peter henry of stern school of business and stepping down at year end in order to reengage in the development of Global Policy. Serves on the boards of general electric, citigroup and kraft foods and is the author of turnaround, third world lessons for first world growth and joinses now. Great to see you. Peter nice to see you. Scarlet we need to start with the paris accord and the u. S. To withdraw from that agreement. Ostensibly as the president said to protect u. S. Jobs industry and the economy. If you look at the business reaction, though, companies are pushing back. G. E. s c. E. O. Jeff immelt just tweeting that he is disappointed with the decision. And he says industry must now lead and not depend on government. What does all this tell you . Peter well, i think the road to prosperity in the United States just got a lot steeper. And the road to prosperity in developing countries also got a lot steeper. And its not surprising just two days ago the secretary general from the u. N. , gave a speech about Climate Change. And i think he chose the Business School at n. Y. U. For a reason. This agreement is about business. And jobs are critical part of this. If you just look at whats going on, in the last year, 50 of a 50 increase in solar Power Generation. Led by the United States and china. Over half of the new Power Generation around the world is in the renewable space. In europe that number is 90 . And you look at job creation, job creation in the Renewable Energy sector, last year, outstripped job creation in the oil and gas sector. So were talking about jobs. And over the next in the coming decades, its estimated this 37 trillion Infrastructure Investment opportunity in energy. So retreating from a climate agreement is retreating from prosperity. Scarlet how does the u. S. Pulling out of the Paris Agreement set the scene for what kind of license it gives developing countries, that china, indias of the world to fulfill their growth objectives . Because it gives them more room to do what they need to do, for instance. They dont need to look at the moral leadership of the United States. Peter well, i think the critical thing here is that the United States is ceding leadership on a very important front. And the developing countries of the world have seen it as being in their own interests and frankly 193 other countries in the world being in their interests to think about growth as a positive sum rather than a zero sum outcome. Thats the big lesson we learn over the last 30 years. If you look at the last three decades, Global Growth has been higher, putting aside the financial crisis over the last three decades almost any period in history, and most of that groth is driven by almost twice as fast of growth in the emerging economies as they experienced in the first 15 years of that 30year period. But over the entire 30year period, growth accelerated in emerging economies it did not decelerate in the advanced countries. In other words, faster growth in the rest of the world does not mean Slower Growth for advanced economies. And when we get sucked into zero sum thinking we are in real danger of generating poor outcomes for our future. Julia when he said donald trump said that it puts the United States at a disadvantage, whether he was talking financially in terms of the contributions and hes pulled them out for the United States, out of the green fund and ending it. Is there different ways to look at this. We can look at the financial costs of not investing. But do you think it will have implications for inward investment into the United States . If you look at u. S. Companies, because on the one hand you got c. E. O. s saying look, were still going to go it alone in a sense. And were going to fulfill our commitments as far as our shareholders are concerned to green energy. Do you think it has an investment impact the statement this makes . Peter number one, business clearly u. S. Businesses are clearly going to have to play a big role in pushing in the absence of leadership on the part of government. But i think it does as i said before, make the road to innovation and creating great jobs and new opportunities in the United States a lot more difficult. Julia why . Peter well, because leadership matters. And the tone in the country matters. And the Perspective Companies have to lead. But they lead in the context that governments create. And if the u. S. Government is saying that we dont think that Climate Change is a priority, that will have an impact on our ability to lead and create the jobs of the future. Julia so youre saying this is about way more than just Climate Change. This is about a lack of leadership at the highest level in the country. Peter it is shortsighted leadership. And not seeing the longterm opportunities that lie in store for not just the United States but a very important for the United States for the whole world. In generating new jobs, new industries, and a healthier future. Joe Climate Change aside, i remember when obama was president and Business Leaders were always complaining about uncertainty as a reason why they werent investing more. Donald trump has a very different leadership style. Clearly than president obama. Much less inclined to listen to elite opinion or even major c. E. O. s in this country as this shows. What is trumps Decision Making style and his general approach even forgetting paris for the moment do for the general Business Environment in this country . Peter i would say the sense right now is that theres a lack of clarity about what the priorities are. And theres been a lot of volatility in terms of where were going. I think you saw initially in the early days, an expectation that there would be progrowth policies. I think thats becoming less clear. Whether we will actually get progrowth policies. And i think were seeing a tempering of expectations in markets and otherwise. In response to that. Scarlet in your book turnaround how third world countries should employ the attributes that developing nations use. Discipline. Clarity. Trust. You mentioned clarity earlier. Where is the discipline and the trust that we can glean from countries like china, like brazil, that first World Companies can extract . Peter the clear lesson right now is that big problems that was put on the table. Climate change. In order to move forward you need trust. And you need the discipline to adopt longterm thinking. And the discipline frankly in leadership to say, the things not what you want to hear but what people need to hear in terms of our need to invest in the future. D thats thats a major challenge. Because as we have seen in the past, countries are actually able to engage in policies that are disciplined, expressing them clearly, and win being the trust of the people. Thats when you see the kind of turnaround in Economic Growth that the emerging markets experience. In the early 1990s when they increased their growth rate from 3. 5 per year in the previous decade and a half to 5. 5 per year a 2 increase in the growth of the g. D. P. We could have used that kind of an increase in growth right now. Julia we need to see policy in order for that to happen. Peter we need to see policies that are disciplined. Clearly articulated. And then youll get the trust of the people. In business in particular to drive change thats going to be good not only for businesses but for workers and ordinary citizens. Joe the idea on this show were always talking about Monetary Policy and fiscal policy, infrastructure, all this stuff. Is the essential idea that youre pointing out that these mechanical things arent as important per se to growth over the long term as credible, transparent, noncorrupt Decision Making . Peter thats right. So Monetary Policy has done its job over the last almost a decade now. Since the financial crisis. Our Monetary Policy officials have created a more stable environment. Monetary policy has really run the urse in terms of ability of the fed, the e. C. B. , to continue to generate growth. What we need to see now are just leadership, policies that will drive the ability of the flows across bor and capital and flows across border in goods. Migration of people is critical to Economic Growth. Because in the advanced countries were actually seeing a declining labor force growth. And so you need to have people, capital, ideas, moving across and generate higher growth rates. Julia everything were hearing pushed back on. Scarlet. Going to Say Something there. Scarlet yeah. Absolutely. Dean henry you are stepping down as the dean of the n. Y. U. Stern school of business at the end of the year. Youre going to be reengaging and recommitting your lifelong interest in the linkage between advanced and developing economies. Did anything that President Trump say push you in any direction to take that first step . Whats the most effective way of doing that . Peter the most important thing that needs to be heard right now is that growth in the United States and growth in developing countries are not in pop sigs to one another. In fact, growth in the developing world is good for growth in the United States. What we have not seen in the last decade now, is even the sheer growth within the United States. And that is not a problem of trade. That is a problem of a lack of access to education. There are thousands, thousands of jobs right now that cannot be filled by u. S. Employers because they cannot find qualified employees to take those jobs. So part of that is obviously higher education. But its not just going to university. Its going to trade school. Finding ways to demonstrate that youre qualified to do the jobs in the new economy. And so we absolutely have to articulate that trade is not the enemy. Migration is not the enemy. Globalization is good for growth. But we need our leaders to start saying that very clearly and doing what needs to be done to educate the u. S. Population to take advantage of the jobs of the future. Whether they be green jobs or jobs in hightech or other kinds of services. Scarlet peter henry dean of n. Y. U. School of business. Author of turnaround, third world lessons for first world growth. Julia Green Light Capital president david even horn joins us for an exclusive interview tomorrow at 9 ofment 40 a. M. Eastern time on daybreak america. As hell discuss his ongoing battle with g. M. Dont miss that tomorrow morning. From new york. This is bloomberg. Scarlet lets get back to our top story today. President trumps decision to withdraw the United States from the Paris Climate Accord. The head of u. S. Practice helping businesses understand the impact of changes on business vati. Jon, you heard speech in which the president , he gave lots of reasons mainly economic saying that the u. S. Needed to protect its jobs, its economy, industry. How much of what he said made sense . Was credible . Jon i think this move about trumps base and americas first about his Campaign Slogan and something that republicans had promised for quite some time. Joe are there industries that will materially benefit from this . You hear coal isnt come back anyway or criticisms that outdated and are there specific industries that you think will get a boost from this . Jon i look at this less being about industry specific and more about giving the e. P. A. Administrator scott pruett some leeway to do some things he probably couldnt have done otherwise or things that may have resulted in a lawsuit. Had he gone ahead with them under the Paris Agreement. So theres a couple of environmental rollbacks they wanted to do and put some more energy into hydraulic fracking and do things that are going to get more carbon fuels out of the ground. And with paris around they were concerned that the lawsuits would slow them down. Julia is the United States better off . Even in the short term here . Can say say that . Jon trumps base is happy about it and republicans are happy it and their view a jobkilling treaty that president obama went around congress on. It wasnt binding to the u. S. And was never ratified. So to their view this is something that this is a Huge Positive and been promising for a long time. Scarlet does it boost the economy or increase jobs . Does it mean that the United States saves more money by not having to pay into this climate fund . Jon we havent seen any evidence of any job loss coming out of this agreement so far. And i think that over time that evidence may amount. But probably not. The Economic Significance of this is pretty muted thanks to the surge in natural gas at the expense of coal right now. Joe one of the criticisms of this decision is that they say oh, the u. Is ceding leadership to the rest of the world and china is going to step up. I dont really know what that means to be honest. What specifically does that mean that now china is stepping up and leading on this issue . Jon right. Youre going to see a lot of bilateral engagement between china and the and countries who will benefit from investing in Green Technology and selling those all over the world. This has been a strategy the chinese have pursued for quite some time. Theres a huge demand for renewables and other parts of the world. A huge demand for renewables here as well. But i think i agree. Im not really sure that this is exactly a sop to the chinese by walking out of this deal. Julia in Technology Leadership is it a step back for the United States . Jon the United States will produce whats economically viable and profitable. And if Renewable Energy is viable and profitable then theyre going to do that. The United States has a lot of coal. And the United States has a lot of natural gas and the United States has a lot of oil in the ground as well. So carbon fuels are an important part of the mix and that this step upon the margins makes it a little easier to burn them. Julia moving on moment for you . Jon from the paris deal . Julia yeah. Jon im ready to move on from it. The reality is with the swings in u. S. Politics, another president could bring us right back into it. So i dont think this is the end of the Paris Agreement. I dont think this is the end of u. S. Involvement in these Climate Actions. Julia willing to negotiate. Scarlet thank you so much. Ohn john head of jon lieber ahead of eurasha policy group. Julia Bloomberg Television will break down the numbers with bill gross of Janus Capital and mohammed elerian. And programming note from new york. This is bloomberg. Joe what did you miss . Stocks trade near record highs, how should investors hedge themselves . I want to bring in meb faber, cofounder and chief Investment Officer of Cambria Investment Management and joins us from los angeles. Thanks for coming back. So people have been buying protection on anticipation that eventually volatility is going to come. But its been costly. Volatility has been very muted. Correct strategy at this point in the cycle . Meb you know, weve been talking about the same sort of thing, you and i last three years on this show. Which is weve been in one regime which is u. S. Stocks going up, outperforming the rest of the world. In foreign stocks underperforming. So u. S. Stocks have continued to get more expensive. While foreign stocks have really languished. So the good news is that message was really hard to give on this show for a number of years. Until about a year ago. Really 2015, 2016, when foreign stocks really started to outperform again. So youve had a world now where everything is going up. And the equity space. But we think you want to still be tilting away from the u. S. , moving toward foreign markets, particularly last year you had the really cheap stuff going up. So the brazils and the russia of the world. Were up 50 . This year, its rotating more into europe. O a lot of the traditional piigs, portugal, italy, spain, greece, are the ones that are really outperforming a lot of those up 20 . But theyre still at roughly half or even a third of the valuations of the u. S. And theres a lot more room to run there. Joe its funny because you have been telling making the case for foreign stocks for a long time. Now we cant find anyone who actually supports u. S. Stocks over the rest of the world. So youre certainly ahead of the curve there. You like greek stocks. Which is not a stock market that we talk about that much. That greece . Meb well, you interesting we used to talk about it all the time when greek stocks were down 60 , 70 , 80 and greece is in the headlines every day. And thats sort of what happens. Thats the way markets get cheap. Headline news. Terrible geopolitical news. Terrible earnings. Terrible economy. Stock market goes down a ton. But thats what sets the stage for the next bull market. And we were early in the greek stocks. We were totally wrong. We were buying them in 2014. 2015. 2016. In some of these years they didnt go anywhere. Hopefully knock on wood, good to see them starting to appreciate this year having a great year. We think theres a lot of room for them to run. Now that the story is largely forgotten about. So while everyone is starting to move to the european story, we think the greece is still one of those but a lot of like the east german and emerging europe has could easily end up this year, 30 , 50 up. Joe have to wrap it there and got a little squeezed. But love your contrarian views and well have you back soon. Meb faber, cofounder and chief Investment Officer of Cambria Investment Management. Thank you very much. And what you need to know for tomorrows trading day. This is bloomberg. Scarlet what did you miss. The Dow Jones Industrial average closing at a record high. More headline interviews from the Conference Tomorrow we have Russian Energy minister Alexander Novak and the chairman of the state bank of india on Bloomberg Television. Joe best day of the month. Jobs in america. That number will be out at 8 30 a. M. Eastern. Julia and walmart holds its annual general meeting tomorrow. Scarlet that does it for what you missed. Julia Bloomberg Technology up next. Joe have a great evening. This is bloomberg. Alisa im Alisa Parenti from washington, and you are watching Bloomberg Technology. Lets start with a check of your first word news. Several World Leaders are reacting to President Trumps decision to withdraw the u. S. From the european climate accord. To countld can continue on europe as a climate leader. Belgiums Prime Minister called the decision a brutal act. Germanys foreign minister says the u. S. Harms itself and the world by withdrawing. House Speaker Paul Ryan commended President Trump and called the present the paris accord simply a raw deal for america. President obama is also reacting. He says the Trump Administration handful of quote, a nations that reject the future. Mr. Obama says he is confident states, cities, and businesses will step up. James comey will testify before the Senate Intelligence committee on june 8. Comey will discuss the circumstances that led to his firing on may 9. The committee