Was asked three times pointblank whether the president believed that Climate Change is real and all times, he to client to answer the question. He said that the president made the decision purely on the base of economics and what was right United States economy. These are not contradictory things. The white house can answer that question, but at the same time say the president s decision was about this. The dodging a sort of remarkable in that sense, because it is not a difficult question to answer. That was the question followed about the epa administrators release, and the brought upn hearings some doubt on climate science. What is the opinion that the minister has to say about his own personal beliefs . Unbelief,ed about his and says he accepts that there is Global Warming that is happening, and that humans contribute to it. What he did say along with that is that it is difficult to measure, and cast doubt on the idea of doing something about it because of the improbability of knowing how much it is happening. Goes against the views of climate scientists, 97 , who say that Climate Change is happening and humans are contributing significantly to it. Pretty much consensus across the globe and in Major Political parties. The Republican Party is an outlier on this, not just in the country but in the entire industrialized world on the issue of climate science. Let me ask you about one of the final questions in the part of the press briefing there that was him by epa administrator. Someone asked him who would be at the bargaining table if the u. S. Was drawing going to try to go back and deal with a number of countries in europe, saying they would not go back to negotiating. What did mr. Pruitt have to say about that . He was a bit dismissive about the question, so he was asked about world leaders, including france and italy and germany having rejected the president of the call for renegotiating the climate deal. That is what the president said yesterday in the rose garden, he was calling for a better deal. Here, whensaid, asked about the rejection of that, he said well, that is up to them. So the white houses position is that they are willing to renegotiate, but there is not a lot of eagerness to renegotiate this. The paris pact is nonbinding. It does not force the United States to do anything specific. Come tores countries to the table and set their own Emissions Reductions targets, which the United States could theoretically change, but in the trump administration, it was sort of a symbolic move to pull out of that, and the trumpet ministration is saying we do not want to look at or consider this issue as part of our economic decisionmaking. X and i find it and i find it astonishing, to be prickly candid, who said this administration who said this decision was based on economics, but the issue of Climate Change never came up. It is a stark departure from what we heard during the previous ministration. Ask it is a huge departure from the previous ministration. No doubt, president obama made it very clear that he wanted Climate Change action to be a significant part of his president ial legacy. Now we see President Trump dismantling it. It was less of a dedication to this under the bush ministration, when there was more evidence coming out. Consensuscientific was really crystallizing, the Bush Administration did not quite excepted to the same accept it to the same degree as the rest of the civilized world. President trump has said in the past that Global Warming is a hoax, that it was created by u. S. Hinese to hurt economic growth, and other things that sound outlandish when you stack it up here. He spoke his campaign promise, it struck a cord in the heart of appalachia, kentucky, pennsylvania, which he won by significant margins, and they have been hit by the changed world, the shift to a cleaner energy. What we know about the timing for all of this . This decision happened yesterday and he is making good on a campaign promise. What do we know about why this happens now and where things go from here . The white house has been looking at this for a while. Ae present has been asked on regular basis and this decision eventually had to happen. I do not think there was a reason it had to happen yesterday, but this happens in a context where the president s legislative agenda is essentially stalled on capitol hill, the Health Care Bill passed the house but does not seem to be going anywhere fast in the senate. Earlier today, shudder richard burr, a senior senator on the republican side senator richard burr, a senior senator on the republican side, said it is unlikely that we will get a comer has ever public a comprehensive health your deal this year. And they do wants tax cuts, no bill is there right now, not moving despite what the president tried to indicate yesterday. It is not really happening. So this is happening at a time when the president is eager for a victory, and some say that it does require congressional approval. I want to look at this contrast that i saw this morning. President said in the rose garden that tax reform is proceeding, but they would not give a firm answer about when we will see a concrete white house proposal. You were very familiar with the congressional agenda, the congressional schedule. What is your sense of when congress is going to see something from the white house . We do not know that they are, david. What the white house is saying and interestingly enough, the senate and House Republicans wheelers are saying that they want to achieve some sort of consensus, agree on a concept before they move forward. If you have the house do something, it ends up being a complex process where people and you dor votes not know where it will end. So we have key players in the white house, house, and the senate on the republican side trying to hash out some global consensus. It is not happening. That theseindicates sessions are not moving to a place agreement, there are widespread disagreements and how the tax steps should be paid for, and there is general agreement, if not unanimous agreement, that they should be paid for, and it is compensated. It is difficult to raise revenue mean, some people will take the hit. And they have not shown a willingness to agree on certain things in that regard. We are heading into the weekend, a big week next week when it comes to the investigation and russias involvement in the u. S. President ial election. We are expecting it to take place in a closed session on thursday, june 8 with fired fbi director james comey. How large does that loom on the washington agenda next week . Huge. I think it will be the number one topic on the washington agenda next week. The anticipation of this hearing is pretty expensive. I think it is the most hotly anticipated teaser congressional testimony we will get since before clinton testified the Benghazi Committee as a candidate for president. That was last year. And so there will be Big Questions that democrats have specifically about what the president has changed. The comey suggested there is a lot of reporting out there citing sources close to comey, saying the president asked the former fbi director to swell to the investigation into michael flynn, the former National Security advisor. That is a pretty big deal. Some democrats say that means exception of justice area think you so much, joining us from washington dc. You can catch the press briefing from the white house on the bloomberg, just go to tv on the bloomberg to see all of our interviews. This is bloomberg. This is bloomberg markets, i am julia chatterley. Scarlet and i is scarlet fu. Scott pruitt and sean spicer desk i amed up a scarlet fu. Scott pruitt and sean spicer just wrapped up a press briefing moment ago. They are record levels after mixed jobs report, but i hate to use this word, maybe it report, it wass enough to show the economy is still growing but the fed does not need to be more aggressive. People did not change meaningfully their expectations, the fed is raising rates in june. We are down on the s p 500,. 31 , but the nasdaq continues to be the big winner. Up 9 10 of 1 , and just a reminder, even though the dow is joining the record party, so to speak, the dow is far and away the best performer of the year, outpacing the gains that seen in the s p and the dow. They are on the nasdaq by more than 10 . If you look at todays session, the movers from the s p 500 at a percentage basis am a two of the top four performers are stocks. Isting here is a broad trading at a record, is up 80 after the thiss forecast and or of healthe care equivalent. And this new medication, relatively new, which is used to treat dermatitis, the guggenheim saying its launch ramp weeks in week line nine, and delta out with its main numbers. Available,evenue per and see mileage up through per 3. 5 . That is what is going higher today. On the flipside, we have what is going on with oil today. Oil prices are lower, and energy is really the worst performing group in the s p 500 today. That is not stopping the upward march, julia. Thanks, julie. And now talking about the u. S. Jobs report, which showed a pullback in hiring in may. Payroll came in at 130,000 last month, and the Unemployment Rate year low, and up. Growth remains weigheds and economists in earlier on bloomberg. This is a week to m ak to mixed report. But where you would expect the labor target to be at this stage. They are to satisfied or underemployed in the u. S. Workforce. That is an amazing trend. There is some very, very good news in this labor report. Some weaker market numbers expected today, but it reflects and irk week via wages, think we are in for a 2. 2 percent kind of real economy Going Forward. For more insight, we are enjoined joined by the chief u. S. Economist for bloomberg. What is your opinion . Tepid and milquetoast it was not that great. This was really due to falling precipitation, which i suspect may have been a oneoff phenomenon. In may, you get those on fluctuations in participation due to the timing of memorial day as well as the onset, there are a lot of temporary hirings for the summer months. We know that the first evener was fairly weak, though it did get revise higher. Is this part of the First Quarter weakness we tend to see . Asked that is an interesting question. Going into this report, i tested whether or not there were residual seasonalitys, which is a term for all of this First Quarter growth weakness. I also try to see if this applied to payroll members, and i found this was not the case. Anytime we get a weaker q1 in the last 11 years, you always have a sharp ounce bounce back in q2. But this does not look like it is leading to that. And when we look at the hiring 6, 12over the last 3, months, it has been steadily decelerating. This is consistent with that trend. And your argument here is that at some point, wages pick up, and we will be seeing workers enticing being enticed to come in to the workforce. Not this one. Julia but the top moving average of the wage growth has actually started to decline, and that was the underemployment, which is pushing new year lows. The average t the moral of the story is maybe there still is some religion will slack. You can see the elevated rates and other signs that we are not really scraping the bottom of the barrel, so to speak, in terms of finding new workers. One Excellent Way of testing which way this turns. It is economy 101, supply and demand. When the supply rises, the price point changes. We are not seeing the change in the price point. This has been range bound for the better part of two years, so there is some indications that wage pressures are starting to move in a higher direction, but certainly not convincingly so. There is still more work to be done on the later markets. Thank you so much labor markets. Thank you so much. Julia green lights capital gm to anhorn compares single flavor of ice cream scoop. Needs to do to attract more customers. This is bloomberg. Scarlet this is bloomberg markets, im scarlet fu. Julia and i am julia chatterley. Lets turn to the and one of itsgm biggest shareholders. Cheers up 13 , but David Einhorn of Greenlight Capital has not been impressed by the move. Today, we were told why he thinks gms full potential has yet to be unlocked. I think that gm is strong in very many areas of its business, and it has made a number of very good Strategic Moves and positions it has held very well for the future. There are lots of areas in operating in automobile companies, from product design, to manufacturing, sales customer , support, so forth. But one area where gm is weak is in its capital structure. It is weak in finance, and has a Balance Sheet that is financially too conservative for the value that is being created in the operations to be unlocked. The company has a market cap of just about 50 billion, 20 billion of in cash, an undrawn revor another 13 billion or 14 billion, and then there is money offshore in places like china that is not even counted. Preserving for the downside there is so much money locked in cash preserving for the downside it leaves an inefficient capital , structure for the company and shareholders who have been rewarded their with the lowest pe multiple in the entire s p 500. They traded a huge discount even to forward, where forts pe multiple would be 30 , 40 higher. I think that something needs to so be done to unlock the value at gm. So if that is the diagnosis why has management not , addressed this . They are concerned about their stock price, they know there is a problem. The ceo has a team around her why have they not addressed it . I think there is caring about a stock price, and caring about the stock price. I could lose that last five pounds, but do a really want to change my diet and exercise to do that . While i would rather have five pounds less, i am not willing to do that. G. M. Similarly would prefer a higher stock price, but they are not really willing to do what it takes to make that happen. Is it possible that they are scarred from the experience of going bankrupt and having to come back into the marketplace . They are saying we need some money for a rainy day, and might they be right about that . Sure. Theyompany has said are forever grateful to the United States for bailing themselves out and preserving the company through the last recession, and the company has capitalized to make sure that that absolutely, positively never happens again. So i think there are several ways to get to that particular thing. One of them is you could decide you are fighting a last war and change the Balance Sheet to make it more conducive to the current business, the current current cost structure of the company, which is structurally improved, which would require much last much less liquidity in cash. Four you could use of the kind clever, and we made that or you could use kind of clever proposal, and we have one that allows the company to keep the cash, all of its rainy day money, have its preservation for any future downturn that comes the exact same way they have it right now, but would unlock the value at gm. Take us through that clever plan. It involves two classes of stock, essentially. Sure. What are those two classes . You have a stock right now, and as the owners of gm, you get dividends and all the other values of ownership. If you separate out the value of the dividends from the other values, you would unlock 30 to 50 increases in the value of the stock. Such a simple i it so to simplify it, there is a dividends share and the growth share. And each shareholder gets one of each . One of each. You have the same dividends and the same growth you are getting right now, but you could trade one of them or the other, and the result is that people are more interested in dividends get new buyers coming in for those dividends shares, and alternatively, if you are not interested in the dividend but the growth of the company, you would be able to buy the other share. Of the market were working properly share. If the market were working properly, you would be able to use both of the shares, but you say there is an upside there. Where is the battle . Think of it as an ice cream stand that sells manolo chocolate swirl manila chocolate swirl. Vanilla chocolate swirl. Some people like that, but imagine if you sold vanilla, chocolate, or swirl, and any combination. So they would buy the dividend shares. This would be new participants in the market that would come they would getk a 7 to 9 yield, and those interested in the stock going up, they would buy the Capital Appreciation stairs and trade of the same pe that you have right now. Adding the math would unlock the value. You took that math to mary barra and her team, and walked them through it. They did not embrace it. What are they missing . Why it with a not say that is a good idea . The truth of the matter is they not engaged in it. They have just fought what we have done from the very very beginning. Whati would say is this is we wanted from the beginning, a collaborative process to solve the Balance Sheet process at gm. What we have done is in addition to our plan, which is up for the Shareholder Meeting next week, we have nominated three directors. These directors bring in in or miss Capital Markets ring in enormousiss bring in Capital Markets. And mary barra is a great ceo, but this is one area she has not been shining in. An exclusiveas interview with David Einhorn, founder and president of Greenlight Capital. Ahead, still commodities closing. Gold rebounding today after the release of the latest jobs report. We have that and other metals. This is bloomberg. So we need tablets installed. With the