to miss the free t-shirt. would shoot for 9:00. >> we could hear him, but we could not see him. i don't know. >> why didn't they face time? they own that product. >> i am a little surprised he is not here. is great that he called in. i think it is great for kind ofrs to see it is trickling into apple. >> all right, we have to wrap it for thisloomberg west" hour, but much more from wwdc throughout the day on bloomberg television. thanks to our special guests. thanks so much. they do so much for what ching this edition of " bloomberg west." do not go away. we have much more from apple and

wwdc on bloomberg television. >> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of his nest and economics with a main street perspective. today, president obama unveiled his plans to fight climate change. then house intelligence committee chairman mike rogers speaks to bloomberg. .nd a new kind of heroine action figures meant to empower little girls. to our viewers here in the united states and those watching us around the world, welcome. we have full coverage of the stocks and stories making headlines today. michael mckee details a rare correction by the institute for supply management. housecook interviews intelligence committee chairman mike rogers. we begin with phil mattingly and president obama's lands to cut powerplant emissions by nearly a

third -- plans to cut powerplant emissions by nearly a third over the next 10 years. there is more than just the headline? >> that is right. it is all about the details. in this case, it is the power given to the states to work regime,his regulatory including an extended timeline for certain states who have, if they work together, mark, until 2018 to put in place regulations that would lead to the reduction in carbon emissions to that 30% level the obama administration is putting out for them. this is a significant step forward for the administration, the largest unilaterally they could possibly take and one that could lead to new gains economically. take a listen. towe have a moral obligation act on climate. when we do, we turn risks of climate into business opportunities. we spur innovation and

avestment come and we build world leading clean energy economy. to note, aportant lot of criticism and pushback on this proposal. saying therele will be major, major costs to this role, mark. >> let's talk more about this. republicans and businesses are opposing this plan. what specifically do they have problems with? >> essentially this is a plan that will revolutionize how power is created in this country, pretty much a direct shot at the power plants in this country. administration officials acknowledge this. ours a push to change electricity and power is used in the united states. the biggest concern for businesses, mark, is how business may be affected from a cost perspective. 8.8 says it could cost $

billion. it could be much more than that. thisushback is what is going to look like? you have legislative proposals on the table. you have legal avenues on the table. that is something to watch as the comments period goes through in the coming year. >> phil mattingly joining us from the white house. let's get more on the proposed epa rules. michelle, thanks for joining us. what will these new meanonmental regulations for the states? >> already these states have tried to develop something, but what is clear in these roles, it is very much in the states'power power to-- states' craft. they will be significant. enormous lot with an amount of flex ability to achieve targets. >> i imagine that was part and

parcel of the overall proposal. there has been a lot of pushback, as phil mentioned. is this a concession that the toeral government is making the states, letting them try to plan this for themselves? >> yeah, in a way, that is the case. allowing the flexibility for the difference dates to create their own rules, anticipating some of the political pushback that will happen. but there will be a legal battle ground the next >> years to fight this out. what is interesting with the rules that came into play, a wild back some of the obama administration tried to develop climate change legislation that did not work. this is going purely through channels that are at the president's the postal. industry will be impacted. to what degree and what will this mean for their bottom lines? >> it is important to note that the coldstream in the u.s. has

already been suffering. it was only a year ago that cole represented half, this year it is less than 40%. coal has been in decline. this will make it more difficult. even before this legislation, it was essentially impossible to build new power plants fueled by coal. the new regulations will make it more difficult for existing power plants. >> they will boost funding. where is this boost going to come from? what about critics who say these regulations are in fact a job killer? will happen in sectors that represent clean technologies. you will see them boost sectors that include renewable energy, solar, wind, geothermal, biomass. and especially for sectors that make our grid more efficient.

smart meters, smart devices inside your home. as far as the critique that this will be a job killer, it is pretty inevitable that some states will see some increase in retail prices to absorb the cost of compliance. but bear in mind a lot of these technologies, such as energy efficiency, are cost competitive already. it is a reduction in cost. >> you spoke recently a moment ago about the politics. this is the boldest step by any u.s. president to combat climate change. what is at stake for president obama, and what are the chances that during this midterm election year tongass will get on board? atthere is a huge amount stake. >> and from a legacy perspective. >> that's exactly right. you will have obama's term and in 2016. it may be 2018 before you see some of these programs come into implementation. it may be 2020.

there is a long-term legacy at stake. the global sphere. there is the annual renewal of the countries to discuss what the programs are for climate change. at this point, the u.s. has a huge amount of leverage. just quickly, speaking of two leverage, the world's biggest polluters, the united states and china. will this give china the ammunition it needs to fight climate change question mark >> it could be. it may be that china needs its own stimulus from abroad. but do not forget the chinese themselves are taking very active steps to promote clean energy technologies. they are still reliant on coal, but the chinese launched a staggering amount of photovoltaic last year, by far the most that any country has built in a single year. bloomberg energy

analyst. thank you for joining us. >> thanks so much. >> coming up, we will take a look at the revised report for the institute of supply management and figure out what is ahead for the sector and the broader u.s. economy. we will be right back. ♪

>> it's an economy dependent market, so no surprise a very disappointed i sm --ism manufacturing report would send stocks lower in no surprise a major correction woodson the markets up again. michael mckee has the strange twists. and michael, the terms of this market data -- turns of this market that it -- market data. >> i've never seen anything like this before. it came out and was weaker than expected. the forecast was for 55.5. wrongne thought what went with the economy?

nothing went wrong with the economy. it was the ism's data. they normally seasonally adjust for the month. unfortunately they applied april's seasonals and came out with the weak figure. when they applied the correct data, everything went up. unfortunately they applied it wrong again and had to issue a second correction. here is where we are at the end of the day. the headline number -- 55.4. about where it was expected to be at. better than where it was last month. it is an improvement. the underlying data, much better than originally reported. new orders were at 53.3. 56.9.om up at evenne bad part of this, though they revise this, the broader market does not come in as strong as you would like it to be. it comes in at 52.8.

an expansion, but it suggests the number that economists were expecting for friday for manufacturing hiring might be ambitious. >> a big new week for data. for might this mean reports we will see? >> inmates adjust better reports for the month. the employment number what -- it may suggest that reports for the month. -- the employment number not as good. if that comes in strong, you will see reaction in the markets. to 15,000 we expect new jobs created. that changes once we see that number on wednesday. thursday, we will get the non-manufacturing hiring number and we will see how that goes as well. economics editor michael mckee. thanks. for more, i am joined by the chief economist alternative investments at kplg.

>> good to be here. >> oops. have you ever seen anything like this before? >> no. what is interesting is they do not have more procedures and place. they may need more robust procedures in place, or maybe someone is on vacation. become as going to regular thing, we can start questioning these numbers, but in this day and age, when you are working with large spreadsheets, it is possible to make mistakes. >> how significant is this, especially when wall street is on the lookout for critical data , only to have that data thrown into question? certainly hurts their brand.

and we have had a lot of government cuts to data, with the cutting automatic stabilizers, or economic releases. people saying why can't we just have those, and art of the reason is there are a lot of checks and balances to make sure that when those are released, they are released properly. you still have to ensure you have good government data. , first-quarter gdp was the first contraction since 2011. are you in that cap of economists who believe this was primarily due to the weather? >> inventory fell at an annualized rate of 288%. 288%. massive contraction of inventory building. massive contraction in

investment. a massive pulldown from exports. on the flip side, we actually saw service consumption really increase. some of that was spending on health care, so it is not necessarily like it would be repeated, but still services where the white-collar, al well-paying jobs are in our economy. >> how will u.s. exports affect your growth outlook for the remainder of the year? >> i am looking for 20 or 30 basis points. >> we are seeing a narrowing of the trade deficit. >> yes, we are. petroleumorting more products. that has a huge impact. petroleumorting less products. that is a huge impact. even though it is not great, it is better than negative growth that they were seeing for the past two years. >> speaking of anemic growth, do greatestve some of the

risks to the u.s. economy are from europe and china? >> yeah. >> what are those risks? >> the intersection of demographics and a debt overhang and eight this inflationary trend. right? when you have those intersect, as we saw in japan in 1993 when the working age population started to decline, that can be very difficult for u.s. policymakers. the challenge for verio draghi is to stop job owning -- mario jawboning andtop walk the walk. >> [indiscernible] to 25.pect it >> is that in your range? -- but we had >> we had 22 months of expected job gains.

we probably have three or four years of recovery to go. even though we had a pickup in housing, housing is still at very low levels. >> why is it still out of sync with the rest of the sectors? >> that is where the debt problem was. that is were the debt overhang is. you combine that with the fact that so many millennials are not my first homes. federalhis is on the radar. janet yellen says this is the one thing that keeps her awake at night. what is the fed going to do? said but the question is, is the structural or cyclical? >> what happens when the rates go up? >> if it is cyclical, the fed can do something about it. they can accelerate growth, which will pull more young people into the job market. economy growing stronger, we will have more hiring of young people, so in the 21 to 30-year-old range, right? right it is structural,

-- the fed can't do anything about it. it can only do something about cyclical problems. this question of what is actual and what is cyclical is what we want janet yellen to stay up at night worrying about. supper we have to leave it there. >> we have to leave it there. thanks so much. >> you are welcome. >> it is one of the few times a year that apple shows off what it has been working on. we will take you to the annual developers conference next. ♪

>> apple's annual developers conference is underway. bloomberg west editor-at-large cory johnson is there. he joins me from san francisco. apple just unveiled its new operating system yosemite.

what makes this different? >> not a lot, but a little. advantage of the wwdc, is developers. what they're trying to do is plant flags for the developers and say this is how things are going to work 6, 9 months from now, so i want to develop for this capability. there are a lot of specifics about ways the software will work, the way the toolbars will look different, the method for searching for documents on your computer, your mac, maybe beyond, the integration, stuff we have heard little bits about for many, many years, refinements of that. not the suggestion of new products. there is something called the h which apple says

will allow people to give a lot of their health information one location, monitor the things that they are doing. codifying all of that around the macintosh and the ios operating system am a all on this one device. that is the kind of thing we are getting out of this wwdc event and the tim cook address which continues at this moment. , what does today's unveiling tell us about the direction of the company since the death of steve jobs back in 2011? >> that is a loaded question, mark. it tells us a lot. one of the things it tells us is the company is different now. process of taking care of the biggest user these the company has ever had takes a lot of handholding. they have to come to markets with things in a further develop stage than they have in the past. i think it also shows hesitation .rom this company

rather than making the hail mary announcements that there were 10 years ago, in part because that is not very more. apple is dominant in the computing business, the dominant tech company in the world. for that reason they are faced with a different outlook than in the past. >> " bloomberg west" editor-at-large cory johnson joins us from sentences go. thanks. it is 26 minutes past the hour. time for bloomberg to go on the markets. 500 doing nothing. industrials continue their slow grind higher. two stocks we are keeping our eyes on through the day. cares, the largest health in the u.s., buying a cash and stock offer. expected to close in the fourth quarter. it will lead 140 or 80 two it's two is for pozo.

and the worst-performing major trust of the last year. i will be back in 30 minutes time to bring you the markets again. ♪

welcome back to "bottom line." i'm mark crumpton. thanks for staying with us. let's check some of the headlines we are following for you at this hour. after months of blocking security counsel action on ukraine, russian foreign says theyergei lavrov have called a meeting of the u.n. to call for a halt to deadly fighting in eastern ukraine. 9 p.m.eting is set for new york time. that comes after an attack on a

order guarding ukraine and five rebels were killed. isin's king juan carlos abdicating in favor of his son. in recent years, or his public support has been undermined by a corruption scandal. he will be succeeded by crown prince felipe. in case you did not stay up to watch the los angeles kings defeat the blackhawks in game 4 -- the stanley cup finals begin wednesday night in los angeles as the kings face the rangers. the family and friends of army soldier -- are many -- army sergeant boberg tall are celebrating his release. ,eter cook spoke to a lawmaker the house intelligence committee

chairman mike rogers. he good afternoon. bergdhal is recovering in germany and it is hoped he can be read i did with this family soon. chairmanntelligence says that the price was to live for his return and could put others at risk. >> i am glad that these family .ill get their loved one back it will be a difficult recovery and we and the family need to be with them. that being said, i think this sets a dangerous precedent. notave always said we do negotiate with terrorists. he was held by a terrorist organization recognized by the state department in pakistan. them and the taliban,

they note though she didn't release with terrorist organizations. ofputs a price on the head every soldier. >> we do not negotiate with terrorists, but we also do not leave any man behind. how do you reconcile that? >> if we got a good location on him, we have the capability to send folks and to recover them. there were lots of other options. it might have taken a month or two months or six months, and we don't know that, but there were other options available. on fivea release deal very dangerous taliban commanders -- >> these are bad guys. >> these are really bad guys. they have been involved in war crimes. they will have at least 12 months where they can travel to afghanistan. that is very, very troubling and

it sends a terrible message to the afghans we have asked to around,turn afghanistan including women. you just sent back five guys they are terrified of having in their neighborhood. >> the remaining u.s. soldiers in afghanistan, you think they are more at risk? >> i believe they are more at risk tells we put a price on there head. now we know what a u.s. soldier is worth in the eyes of the taliban. the leader of the taliban has been touting this as a great islamic afghanistan victory. that is troublesome. and something we need to worry about. >> you are an army veteran, a veteran of the fbi as well. . have to ask you, mr. chairman if that was your son, wouldn't you want president obama to take this step? woulde every parent, i want my child to come home. however i would not want my child to come home at the expense of thousands and thousands of other soldiers on

the grounds and families. i am happy for them. we are charged with the difficult responsibility of being concerned about all of the 32,000 troops we have in afghanistan. was this the right decision for all 32,000 troops of a get to go home to their families? i'm not sure it was. i think there are other ways we could have used to release than to bergdhal other trade five people who have committed war crimes, some of them, and have u.s. blood on their hands. i think it is a consequential trade. he was done in secret. it is a problem. >> why did he go missing in the first place? do you know? >> it is best for the department of defense to discuss the circumstances following his arrest? >> do you think the general public will find out? >> i think over time that will come out. >> are you prepared to discuss the obamas of

administration? >> i am. we are going to review all of the facts as we know them, what opinionided, what legal they used. a little frustrating the obama administration asked the obama administration if they needed to tell congress about following the law, and the obama administration told the obama administration, no, you don't. at that is a pattern. we saw this in the secret iranian nuclear negotiations. this is a problem in a pattern. we need to make sure the obama administration understands you have to work with congress, by law, by constitution, i statute, and you need to keep them currently informs. >> and national security advisor susan rice maintains that bergdhal's deteriorating health was one of the reasons for not

informing congress in advance. the deal was in the national security interest of the united states, she says. another'sike rogers clearly disagree. this debate will continue. >> the afghans are not happy with this deal either, right? >> that is right. the foreign ministry but out a statement saying the transfer is a violation of international law. in their opinion, those prisoners should have been brought back to afghanistan with no restrictions however. one of the questions is whether the prisoners will open the door to peace talks with the taliban. early indications are probably not. we will have to wait and see. >> you also asked chairman rogers about cyber security. what did he have to say? >> this has been a big issue for rogers. i asked him about the growing tension with the second unity and the backlashes about this herding business abroad.

rogers is sympathetic to those .ompanies, but only to a point >> their first responsibility is to protect the united states of america, where they made their companies. we should all be about protecting that. i think we can do this in a fair and responsible way. you cannot do that if you are more worried about your next than the earnings next-generation's security in the united states. we have to get that part right, too. >> cyber security a very hot topic in washington. bloomberg will have a conference that features the other mike rogers, the new head of the nsa, and other government figures dealing with these issues. >> peter cook, bringing us this. peter, thank you so much. we are following the moves and copper and the latest moves from china. the commodities report is next. ♪

>> it is time now for the commodities report. joins usgue su keenan with details. >> copper and oil in the spotlight. oil under pressure. boosting production. copper headed for the biggest gain in three weeks according to data out of china. one analyst revise sharply based on that better than expected chinese reading. morgan stanley says local demand and supply will remain tight. commodity demand outside of china is still better than expected, and commodities stocks have improved. demand has sent copper prices above futures prices. oil soaring has a lot to do with opec output. for theased in may first time in three months according to a bloomberg survey. a partner at ibm capital, i spoke to him today. he says that production will help keep a lid on prices.

he says the market will come under further pressure. we are not seeing a lot of volatility though. you check out the rest of the market, you see natural gas the only gainer. gold at the fastest pace this year. the short holdings of bear stocks are the highest in 15 weeks. you can blame this in part on the stock market. we are seeing a positive coffee rally today. what is going on? >> yes, the coffee raleigh not all -- rally not only on the recovery of crocs, but also the idea of a bear market. the rise.n prices on at the retail level, coffee prices have jumped 72% since november. the futures movement is about to go the other direction.

>> su keenan with the commodities report. thank you. it is time for today's latin america report. sanchez has been sworn in as the president of el salvador. he is promising to fight corruption in a country with one of the world's highest homicide rates. he was a former rebel commander in the 1980's. he says he will strengthen ties with venezuela to get access to cheaper oil. that is your latin american report for this monday. still add, creating action figures for girls. we will talk to the cofounder of elemental. we continue in just a moment. ♪

>> iamelemental is a new york city startup with a big mission

-- creating a positive reinterpretation of the traditional female superhero for girls. iamelemental just released its first set of collectible female action figures, elements of courage. cofounder julie kerwin set down with my colleague alix steel, again by asking about their decision back in 20 to create a company creating superheroes for girls. >> we found a hole in the market. the action figures on the market today that are female are not designed for girls. they are designed for the collector community. >> so basically older guys? >> [laughter] i do not want to put down the collector community, because they have been positive and responsive to our figures, which is great. we put a lot of thought into the design and engineering of them. but the hyper sexualization of the female in the media has really taken off in the last 10 years.

that arethese figures hyper sexualized those cartoons and superheroes always work, for girls, but we have the -- always have for girls, but we photoshop, reality tv that denigrates women left and right, and easy access to. -- to porn. men and women are internalizing these messages. >> tommy about your series then. how do you combat that? >> it was born out of my head --e athena.dawn and i worked like athena. and i were talking about it. i started adding charter trades like creativity and courage. we started from there as a jumping off point. we went to greek philosophy. we went to world religions. we created this elements of

power. the elements of power are essentially the superpowers every person has inside of them already. the superhero storyline and said every girl is a superhero. the powers are the figures. >> how can a wisdom superhero really kick some butt? they are designed for play factor. imaginationrl user to create a storyline where she is the protagonist of these story, they are developed with a forward thinking is linus that it, with lots of great tools empowers at her disposal that will enable her -- forward greatng, with lots of tools and powers at her disposal that will enable her to do things. >> what was this like? would test thee hypothesis on kick starter. we needed to prove to the market and to the world that people

wanted action figures for girls. so, we went to kick started. we launched. we are halfway campaign.30-day 36were 200% funded in hours. we have investors as far away as australia and japan. right now we're trying to shift gears. ok, we have successfully but we wantr goal, to shift from a campaign to a movement. shared, everyone's powers go stronger, so the more voices that join in, the louder we get. >> what comes next? you have this first series. what is next. next? >> we have the elements of courage. they are sold in a mystery back . we are already -- they are sold in a mysterypa pack. articulated.hyper we are thinking toes, metallics.

we will have the second design series ready for the february toy fair. >> where can i buy them? >> you can buy them right now. the price point on kick starter, you can get one figure, one mystery pack, for $10. shield that can be converted into a bracelet with charms. that is all for $65. there are other reports in between. >> julie kerwin, cofounder of iamelemental, with my colleague alix steel. stay with us. another check of the market movers on the other side of the break area "bottom line" continues in just a moment. ♪

>> get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and bloomberg.com. that does it for this edition of bloombergne" on television. i'm mark crumpton. thanks for joining us. on the markets is next. see you tomorrow. >> it is 56 past the hour which means bloomberg television is on the markets. s&p 500, pretty boring. does nothing. dow jones headed higher, more highs after record eyes. .2%.q down let's take you to somewhere i consider more exciting, the treasury market.

yields higher today. 6 basis points, as you and i talk right now. let's keep it on treasuries. it's getting easier for a small group in the treasury market is to create angst for all of those bears out there. , despites following unprecedented growth. with us now, we have lisa a vich.a -- abromo welcome to the show. i have heard just about every justification under the sun for this treasuries situation. >> it is everything from auto loans to mortgages. this is a very important market. yet trading volumes are following. first of all, who are the sellers? you have central banks better wording treasuries right now, it hoarding treasuries right now, including our federal

reserve. they are not looking to sell anytime soon. that is a detractor from volume. you also have big banks pulling back their inventory, pulling pullingis taking, -- back risk-taking, seeing smaller profits. shrinking stats, less effective trade. it is not making it worth it for them to trade the securities. >> so, the big question -- how do i trade this? this is easy. >> [laughter] the reason it is important, going forward, there is a disproportionate decline in yields that could be flipped on its head. you could get a disproportionate rising yields on a smaller volume of trading. the concern is, while we are not seeing volatility rise, perhaps a little bit, but volatility is very low. people are concerned there could be an increase in volatility or a sudden spike.

going to pick up? >> it's unclear. it depends on who the sellers are. are the treasuries going to sell? are the bearers in the market in position to sell any of their treasuries? >> really quickly -- >> really quickly, is europe going to be for the treasuries in the coming weeks question marks have a great question. it could prompt a selloff and reassessment of yields. ,> how big an element is this the ecb, that the spanish, italian yields and low, what does this mean for treasuries? >> one very is everyone -- one theory is everyone is rising in ecb action. ecb action.n relatively speaking, these treasury yields to look more attractive. if the ecb says, you know what? we are worried about how much

the yields are rising. we will not do as much stimulus, that could make people reassess the relative value of treasuries at current yield. >> that is why i am here. the news is from europe. thank you very much. "street smart" up next. ♪ >> stocks fluctuated. regan and "street smart" starts now. ♪ welcome to the most important hour of the session. up today, my guest, donald sterling's lawyer. what he hopes to a comment by suing the nba and how long he plans to fight it