straight to a look at the market. stop kicking things off with losses. trading volume lower than average. -- slower than average. it is summer after all. the stock 600 rising the great moving.use of improving

drops of 16%. a lot of restrictions in place. thanks declining by daily 30% limit. onto treasuries advancing for third straight day. the drop in commodity prices fueling speculation inflation and growth overall not strong enough to prompt the federal reserve to necessarily raise interest rates in september. really where the action is. commodities chinese of my calling to a five-month low. to boost production within a week of sanctions ending. copper a good barometer for chinese sentiment and sentiments on how the chinese economy is slowing down dramatically. nymex and brent both down on this monday. president obama is taking his plan to fight local warming to the american people. he will make a televised address

scheduled for the next 15 minutes. the president previewed his proposal by posting a video on twitter. the new rules aimed to reduce gain -- greenhouse gases cutting by nearly a third within 15 years. republicans are already fighting the plan. the senate majority leader mitch mcconnell telling all 50 governors not to obey the new rule. theu.s. a cost for 1/7 of world emissions. about half of that is plants releasing carbon into the air. you can see the president announcement live right here on bloomberg television beginning at 2:15 washington time. scarlet: also natural resources fighting for bankruptcy. the company being hurt by plunging coal prices and the ever increasing use of natural gas. it is the worst in decades. two others are already in bankruptcy. -- a majoreover

insurer turns on one takeover bid and accept another. planbreaks up a merger with access capital holdings. the investment company looking to diversify outside of manufacturing. citigroup trader tom hayes, the first person to stand trial for manipulating five or found guilty of eight counts of conspiracy to rig the benchmark rate and sentenced to 14 years in prison. after a week of deliberations, servers unanimously found he can spirit -- conspired with traitors to benefit his own trading position. mark: amy schumer teaming up with chuck schumer to call for tighter gun control. as senator earlier schumer unveiled a three-part plan that would make it harder for violent criminals and mentally ill to obtain guns. they cited a recent shooting in the louisiana movie theater that killed two women and injured

nine others. the shooting occurred during a screening of the movie train wreck. decidepe people able to commonference between -- amendment and to protect everybody. >> porto we go -- puerto rico on the verge of default after missing a $50 billion debt repayment over the weekend. the government says it just does not have to money and needs to negotiate that debt load with creditors. oak: earlier tim coleman's with their chapter and stephanie rule. they asked what it would mean after puerto rico missed the deadline over the weekend.

not mean a thing. they defaulted on the one bond. the moral obligation bond. the legislature did not find it so they do not have the money to pay it. it is a and alone public corporation. necessarily affected if it defaulted. at what point does the rubber meets the road for prepa? they talk a lot about it. it is not actually a company in distress. if they were ever to get chapter nine and i review them if they would not be able to prove they are insolvent. >> puerto rico does not have chapter nine protection, unlike detroit or jefferson county, there is no way they can restructure under court supervision right now. >> correct. erik: you are saying even if they were to get chapter nine, hillary clinton has said they

should have, jeb bush has said that, they would not qualify? plexus you look at the rates, where they were last august per kilowatt hour, $.28, and where they are today. the only public number we have is $.22. i know other numbers have gone even lower than that. you can figure that out yourself . if the rate are coming down means theyly, it could raise rates to meet the debt obligations, which is in fact with the document they they're supposed to do. if all they did was raise rates, it is a completely solvent entity. phanie: why didn't they take the last bondholder plan to go >> it had some issues. what do they need to do? they need to take the power plants and fix them. newut for an rf and seek opportunities to build the plant. all of that can be done within

the business plan. -- go out for an rf he. -- rfp. erik: if all they need to do is raise rates to become solvent and the principal payments, why don't they do so? >> we don't understand it. then also need to do some structural reform. erik: if you can fix one of the bond payments, it would eat easier to fix the others, because it would show there was a way. at all of the histories. fix one at a time. don't try to do the whole thing at once. we don't at their stand, other than politics and other than hoping to take losses for creditors because it is convenient, we don't understand why they won't take a deal right now. everybody is ready. we are all together in rooms. every week we are together. no reason why a deal could not be struck here quite easily.

>> didn't the bondholders offer a much lower debt service and they even asked for? they have offered something. it would be a couple years of relief, if you will does to get through the changes they need to make. it would allow them to have a lower rate for now. way of getting new power plants. ultimately he just fine with no restructure. that was tim coleman, head of the restructuring unit of blackstone. for more on puerto rico's debt crisis, i want to turn to laura keller, a specialist on the topic here to we keep saying puerto rico is poised to default. not there yet but it did miss a debt payment. at what point is it in default? ra: it is more technical.

they have until monday and of day. we will know tuesday whether that was not paid. puerto rican officials have indicated they are not paying the default. that is why everyone is saying it is essentially a default. mark: i spoke to you on friday about this. i said come monday, where will we be at. we get the legislature to do a last-minute appropriation, there will be at default. the conversation is shipping now to what we should be looking for next. what people are saying is we salt tim coleman talk about the defensive posture where he said porker week -- puerto rico does not need to go to bankruptcy and can pay. what you are seeing them do, the officials deciding where to pay. i think people are starting to say where is the next pace -- place they may not? scarlet: what are you looking for in terms of the many debt cap

puerto rico lopez. will pay.puerto rico there areentially clawback revenues where there is a bond but there are other bondholders that can go after the revenue. those are stocks that are a bit more susceptible -- acceptable to not have a payment. people are thinking we may see that in the next 12 months. mark: we're talking about on that trade 12-15 cents. very low. wife he said it was not a big deal when asked if it was a big deal. : he is isolated where they are going through negotiations and if they were to default there, it would be a big

deal. they have a rolling trade on everything so it is like the next on payment. they will not have another payment for about six months. we will probably see other issuers to watch for big payment. they have other payments due today. 512 million worth. that was made. picking and choosing, exactly. some folks, citing technical or otherwise, this is not a default. investors who are not going to get paid feel otherwise. : to them it will very much be a default, nonpayment. rico canthing puerto do at this point? a: they have a certain revenue coming in. they sort of have to do this.

we are going to put pressure on you and show you we are not going to make certain payment so that when we get to the negotiation phase him you will we haveseriously and some reprimands we will use against you. youlet: laura keller, thank so much. a story we will be sure to bring you back on for in the coming months. mark: still ahead, president obama taking his plan to fight global warming to the american people today. be making awill televised address to next, and we will bring you to it. ♪

>> going straight to the white house where president obama is taking about his proposal on climate change and energy. president obama: thank you not

just for the kind introduction by the incredible work you and your team have been doing, not just on this issue but in general making sure we're clean air, clean water, a great future for our kids. i want to thank all of the members of congress who are here as well who have been fighting at issue, and sometimes great with others. but are willing to take on what is going to be the key challenges of our lifetime and future generations. -- thank ourk our surgeon general who has been doing outstanding work and helping to connect this issue and the health of our families. we have past 6.5 years taken on some of the toughest challenges of our time, from rebuilding our economy after a devastating recession, to ending our wars in iraq and of guinness dan and bringing almost all of our troops home, to strengthen

our security through tough and principled diplomacy. that noam convinced challenge poses a greater threat to our future and future generations than a change in climate, and that is what brings us here today. now not everyone here is a scientist. [laughter] but some of you are among the best scientists in the world. what you and your colleagues have been showing us for years now is human activities are changing the climate in dangerous ways. dioxide, whichn keeps up our atmosphere are higher than they have been in a hundred thousand years. 2014 was the planets warmest year on record, and we have been setting a lot of record in terms pastrmest years over the

decade. one year does not make a trend, but 14 at the 15 warmest years on record have fallen within the first 15 years of the century. justte change is no longer about the future we are predicting for our children or grandchildren, about the reality we are living with every day, right now. changetagon says climate poses immediate risk to our national security. while we cannot say any single weather event is entirely caused by climate change, we assume stronger storms, deeper droughts , stronger wildfire seasons. charleston and miami now flood at high tide. shrinking ice caps force national geographic to make the biggest change in his atlas since the soviet union broke apart. over the past three decades,

nationwide asthma rates have more than doubled. climate change puts those americans at greater risk of landing in the hospital. governorsamerica's has said, we are the first generation to feel the impact of climate change and the last generation that can do something about it. that is why i committed the united states to leading the world on this challenge. because i believe there is such a thing as being too late. most of the issues idealist, and i deal with some tough issues across my desk, by definition i don't deal with issues if they are easy to solve because someone else has artie solve them. some of them are grim. heartbreaking,e some of them are hard and

frustrating, but most of the time, the issues we deal with are temporarily bound and we can anticipate things getting better if we just plug away at it. issues one of those rare , because of its magnitude, because of its scope that if we don't get it right, we may not be able to reverse, and we may not be able to adapt sufficiently. there is such a thing as being too late when it comes to climate change. [applause] that should not make us hopeless. it is not as if there is nothing

we can do about it. we can take action. over the past several years america has an working to less sturdy energy, more clean energy, waste less energy throughout the economy. new fuel economy standards that mean cars will go twice as far on the gallon of glass -- gallon of gas in the next decade. standards are on pace to save drivers an average of $700 at this year. we doubled down on the investment in renewable energy. generating three times as much wind power. 20 times as much solar power as we did in 2008. are making a difference. over the past decade, even as the economy has continued to row, the united states has cut the carbon pollution more than any other nation on earth. that is the good news.

[applause] to say if we want to protect our economy and security and our children's more., we will have to do the science tells us we have to do more. the pasteen our focus six years, and project really going to be our focus this month. in nevada later this month i will talk about the extraordinary progress and generating clean energy and the jobs that come with it and how we can boost that even further. i want to also be first american president to visit the alaskan arctic where fellow communities have seen their communities devastated by melting ice and rising oceans, impact of -- on marine life. we will talk about what the world needs to do together to prevent the worst impact of climate change or it is too

late. here to announce america's clean power plant. two years in the making and the single most important step america has ever taken in the fight against local climate change. -- global climate change. [applause] right now our power plants are the source of about a third of america's carbon pollution. that is more pollution than our cars, airplanes, and homes generate combined. that pollution contributes to climate change, which degrades

the air our children breathe. there has never been federal limits on the amount of carbon that power plant can dump into the air. think about that. we limit the amount of toxic mercury andke air and water the and better off for it. existing power plants can him unlimited amounts of harmful carbon pollution into they are. or the sake of our kids and health and safety of all americans that has to change. or the sake of the planet, that has to change. directed theago i environmental protection agency to take on this challenge. today, after working with states and cities and power companies, bpa is setting the first ever nationwide standard to and the limitless dumping of pollution from power plants. [applause]

here's how it works, over the next few years each state will have a chance to put together its own plan for reducing emissions, because every state has a different energy mix. some generate more power from renewables. some from natural gas or nook your or coal. this plant reflects not everybody is starting in the same place. -- this plant reflects the fact not everybody is starting in the same place. we will report the states that take action sooner, rather than later, because time is not on our side here. as states work to meet their targets, they can build on the progress our communities and businesses are already making. a lot of power companies covered it begun modernizing plants, reducing emissions and creating

new jobs in the process. nearly one dozen states have already set up their own state -- plants. about half have already set up energy efficiency targets. over 1000 mayors have signed an agreement to cut carbon pollution in their cities. last week 13 of our biggest companies, including ups and walmart and gm made bold, new commitments to cut their admissions and deployed more clean energy. so the idea of settings and are its carbon pollution is not new. it is not radical. what is new is starting today washington is starting to catch up with the vision of the rest of the country. by setting the standards we can speed up the transition to a quick future. carbon pollution for a power plant will be 32% no less

affected itself. the nerdier way to say that it is receiving 870 million tons of carbon pollution out of the atmosphere. a hundred be keeping 70 million tons of carbon pollution out of the hotness. 70 million tons. [applause] ouncelike cutting every of omission due to electricity from 108 million american homes or the equivalent of taking 166 million cars off of the road. we will reduce premature death from power plant emissions by nearly 90%. thanks to the plant there will be 90 thousand fewer asthma attacks among our children each year. -- thanks to the plan. [applause] by combining this with greater

investment in our looming, clean energy sector and smarter investments in energy efficiency and working with the world to achieve a climate agreement by land this year, we can do more to slow and maybe even eventually's top the carbon pollution doing so much harm to our climate. so this is the right thing to do. i want to thank gina and her team for doing it the right way. over the longest engagement process and epa history, they feel more than 4 million public comments, they work with states and power companies and environmental groups and fate routes and people across our country to make sure what we were doing was realistic and ambitious. but still some of those people are here with us today. brown, wave. there is tonya.

she is joined up with moms across america to spread the word about the dangerous climate change poised to the health of our children, including tonya's daughter. there she is right there. katri has researched the health impact at the cleveland clinic and those families that are impacted every single day. thank you. [applause] mr. joan marie stedman has helped to rally catholic women across the take on climate. thank you for your leadership. [applause] pretty important guy on her site. as pope francis a clear and cyclical this summer, taking a

stand against climate change is a moral obligation. sister stedman is living up to that obligation every single day. , let's be clear. there will be critics of what we are kind to do. there will be synnex who say it cannot be done. plants were even decided, the special interest of the allies congress were already mobilizing everything they've got. they will claim this plan will cost you money, even though this land the analysis shows. ultimately save -- save the average american nearly 85 billion per year on energy bills. they will claim we need to slash investments in clean energy, waste of money. end billions of years -- billions of dollars per year subsidizing oil companies. claim it will kill

jobs, even though the transition to a clean energy economy as the solar industry creating jobs 10 times faster than the rest of the economy. they will claim this plan is a .ar on cold to scare of votes even as they ignore my plan to invest in revitalizing coal country and supporting health care and retirement for miners and their families and retraining workers for better paying jobs and healthier jobs. communities across america have been losing coal jobs for decades. i want to work with congress to help them, not to use them as a political football. partisan press releases will not help those families. even more cynical. change hurtslimate

those americans the most. we are the most honorable. today an african-american child more than twice as likely to be hospitalized from asthma. a latina child 40% more likely to die from asthma. if you care, start protecting the air they breathe and stop trying to rob them of health care. [applause] expand medicaid

in your state. [laughter] , we heard theng same stale arguments before. every time an america has a progress, it has been despite these kinds of claims. whenever america has set clear rules and smarter standards for healthter and children's , we get the same scary stories about killing jobs and businesses in freedom. it is true. i will go off script here just for a second. [laughter] [laughter] is important. sometimes we feel as if there is nothing i can do. tomorrow is my birthday, so i am

starting to reflect on age. in thinking about what we're doing here today, i was reminded about landing in los angeles to attend a college as a freshman and it wasar-old, late august as i was moving from got to the campus and decided i had a lot of pent up energy and wanted to take a run and after about five minutes i had this weird feeling like i could not breathe. 1979 losn was back in was so full of days whenthere were

people who were ponderable just cannot go outside and fairly frequent. who are older than me can remember the cuyahoga river burning because of pollution. and acid rain threatening to forests of theat northeast. and you fast-forward 34 years later, and we solve those problems. at the time, those same characters who are going to be criticizing this plan, we are saying this is going to kill jobs. -- going tog to be destroy businesses. this is going to hurt low income will. it is going to be wildly expensive. and each time they were wrong.

because we pushed through, despite the scaremongering tactics, you can run in los angeles. without choking. can actually take a boat out on that river. those forests in there. we have to learn lessons and know our history. history -- criticisms you will hear are simply excuses for an action. businessnot even good sense. they underestimate american business and ingenuity. in 1970 when richard nixon decided to do something about the small choking our cities they warned the new pollution standards would decimate the auto industry. it does not happen. catalytic converters work. our aircraft cleaner the bills

will go up the lights would go off, businesses would suffer a quiet death. did not happen. we cut it dramatically and costs much less than anyone expected because businesses once incentivize were able to figure it out. cancer-causing chemicals and plastics. did not and the oil industry, industry.c american chemist came up with better substitutes. the fuel standards we put in place a couple of years ago did not cripple automakers. the american auto industry retool. today they are selling the best cars in the world at a faster pace than in almost a decade. more hybrid and plug-ins and more high if -- high fuel efficient cars, giving consumers more choice than ever before and saving families of the pump.

we can get us, as long as we're not crazy about it. as we don't take the path of least resistance to your, citizens, workers, entrepreneurs, together as americans. we disrupt the stale old old ways ofthe end thinking. right now we're inventing whole new technologies, industries. not looking backwards but forwards. if we don't do it, nobody will. china is nowon looking at getting serious about omissions is because they saw we were going to do it, too. the world faces its toughest challenges, america leads the way forward. that is what this plan is about. [applause]

fool you here. ,his is going to be hard dealing with climate change in its entirety as challenging as no single action, knows and go the warming change of the planet on its own. but today with america leading -- countries representing 70% of the carbon pollution from the world energy sector has announced plans to cut the greenhouse gas emissions . in december with america leading the way we have a chance to put a placement of the most ambitious international climate agreement in history.

and it is easy to be cynical and say climate change is just too big work humanity to solve. i am absolutely convinced that is wrong. we consult the thing. but we have to get going. it is exactly the kind of challenge that is big enough to remind us we are in this together. timesonth for the first -- first time since 1972, nasa released a single snapshot of the earth taken from outer space. so much has changed in the decades between the first picture and the second. borders have shifted, generations have come and gone. the global population has nearly doubled. but one thing has not changed. our planet is as beautiful as ever. it still looks blue. and it is as vast, but also as , as miraculous as

anything in this universe. belongs to all of us. it belongs to the kids who are here. more than 7 billion people alive today. the matter what country they are from, what language they said he, everyone of them can look at the image and say that is a home. -- my home. we are the first-generation to feel the impact of climate generation, we are at the last generation that can do something about it. .e only get one home we only get one planet. there is no plan b. my grandkids not to or not to swim in hawaii to be a will to climb a mountain and see a glacier because we did

not do something about it. i don't want millions of people's lives disrupted and the world more dangerous because we did not do something about it. that would be shameful of us. this is our moment to get this right. for oursomething better kids. let's make most of that opportunity. thank you, everybody. foror make something better our kids. god bless you. [applause] that was president obama at the white house putting forward his plan to address time it change and greenhouse gas emissions. bloomberg politics special report. talking about the president's proposal. , michael levy, senior fellow for energy in the environment on council of foreign relations and the author of the book " the power surge."

that there will be critics of what he put forward today. phased in plan. highly partisan. it involves a lot of doing with the economy, energy. john boehner compass speaker at the house in a not typical reaction says the plan is expensive and arrogant insult to americans. , mr. levy.t with you is this plan common sense or controversial? >> i think it is both. it is certainly controversial and no shortage of controversy around it, but it look at the benefits and the cost, those exceeds substantially the cost. in a perfect world we would design something more efficient in congresssed would pass it. we don't live in that world.

given that, i think the administration has done a pretty impressive job of giving the industry lets ability to me mark: the goal of the tools it has. mark: this affects not just industry but also, states. please then over time a revision from the earlier proposed rule. this is the president's final proposal, surely to be challenged in court. what are the challenges given the presidential election that what the president is proposing today will ever become the rule of the law of the land t? >> good question. there is some possibility the courts could send the rule back to the epa or congress could eventually act to maybe put the rule in a different way or change it somehow. do not expect any of that while president obama is an office.

you have to keep in mind every single state has to submit their plan on how they will comply with this. of opportunity to tinker at this end. i think we will see evolution over time. proposalt is in the that to any extent you see it as an olive branch to those in the coal industry and others that were critical to the original rule proposed by the president? >> i think the big all of the branches to the coal industry. -- to the utility industry. now there is no risk and action until 2020 two. that is the big all of branch for the utility industry. the cost was the need to introduce a new set of programs to incentivize action before the time it formally starts and they have done that in a way that is very helpful to the wind and

solar industry but will be less beneficial to natural gas than the original proposal was. the winners and losers of the original plan. is there any governor or industry this plan will appeal ?o gecko > i would sit by and large it is a fairly partisan type of policy. coming from a democratic association. keep in mind, congress never voted on this. you are seeing the state governors and agencies push back on the plan. arember of industries brought to the table. this is a rule that in many ways is favorable to the natural gas business. we're talking about taking market share from coal -- mark: will the gas industry

endorse this plan or not necessarily? i think they are reticent to because once we shut down all the coal plants that government will come to the gas plant. internet half the carbon of coal. it is a way to reduce emissions in the long term. michael levy, a couple of minutes left. language matters. tax cap? new > it will raise rates for raiseonsumers, -- it will rates for some consumers. i do not think it has a particularly large impact on the price of electricity. this they will cover throughout the day. i will be back at 5:00 to talk more about it. or now, thank you all. robert levy, thank you for

discussing the president's plan with me. you have been watching a bloomberg politics special report. bloomberg "market day." etude for more of ♪

scarlet: taking a look at how commodity prices have settled in new york trading. i want to bring in our steel. , seniorew cross growth energy analyst at bloomberg intelligence. starting with coal on the heels of the president's announcement, at an eight year low. was low prices turn out to be a savior? countries and governments will continue to use it because it is such a cheap fuel? so, however,think it is currently undersupplied to . much greater degree

from alpha heard natural resources say filing for bankruptcy protection. that was not a surprise. incidents in terms of the president announcement. higher cost and leverage of debt could be completely wiped out. 650 million tons per year from 1.2 billion 2012. is cold will shut and producers that eventually does wind up curving some kind of supply. we have seen quite a lot of natural gas switching scarlet: very price dependent. natural gas has been of a game changer. natural gas is under fire as well >> . . >> yes.

you have epa regulations and you have constructively lower natural gas prices. i think people were hoping it would be more of the cyclical issues. we at so much natural gas unfortunately. -- theellation basis basin. then you have the illinois basin. right now natural gas is competing even with the lowest cost region in the u.s., so if gas prices continue to trade where they are at right now, under three dollars or trend lower, we do not really have a pickup and natural gas demand, you will continue to get this and where pressure" prices even cutting to the most efficient embolus cost mining within the u.s. >> demand from

china helped to push a coal prices back in 2011. affect can we count on overseas markets to save the coal industry? >> unfortunately we cannot count on exports at all -- at all. they will be down. chinese imports have fallen by .lmost 50% the only really savior is india. it is too high on the cost curve or just too high costs relative to other mining regions in the world like australia, columbia and south africa. unfortunately we are being pushed out of the export market at the same time domestic demand is also follow -- falling. alix: who is the next company to go under who is next after alpha? unfortunately, there's certainly a lot of stress in the .arket

i think time will tell. high leverage, higher cost basis will be the ones that continue pressure as we move out. people that have contracts rolling over. off pricing is based contracts and index pricing. scarlet:scarlet: you may start to see cash flow problems manifest from that side of the business as well. oversupply, not enough demand. think you for joining us. he is with bloomberg intelligence. at how natural resources or access to which, control of it has made and destroy fortunes. yet the bloomberg billionaires index that tracks the worth of the men and women wealthiest people in the world today.

what goes way back, the top ,hree are the king of timbuktu augustus caesar roman empire, and number three the empire of the song dynasty. alix:alix: i like this, his kingdom was the largest producer of gold at a time when gold was critical. i guess if you control the which south supply, africa does. how they did this was really cool. data from measuring scarlet: does a website measured from google economists. they took into account individual's wealth and comparing it to the gdp of the actual economy to give that we're back 100 -- thousands of years. modern --ly

comparison. in the meantime, we want to take a look at the stock with bill miller. he has seen it all. he went from genius to failure and back once again to genius. the legg mason funds dropped. it is now back up and making a comeback. is charlie signed from the boston bureau. what caused the initial fall. what do you go from genius to >> he took a big dive during the financial crisis. aig and own fannie and freddie. the fund was down 65% 2008. the market was down 37. does not take too many years like that to pull money out of the fund. >> what is driving his comeback

now. >> really a lot of different stocks. apple, doneell with .ell with netflix early to realize airline stocks were undervalued. he jumped in big on those. well onone homebuilding. he is found a lot of different winners. over the past three years, the best-performing stock fund in the united states. >> i guess like everything else, he is cyclical. ahead, a massive

alix: the president announcing his clean power plant. we will speak with the ceo.

u.s. auto sales shifting into high gear last month. scarlet: an apple is on the brink of a correction. we will look into the cake giant's recent slide. scarlet: good afternoon, everyone. let's look at the markets right now. a little bit of a decline but it's been a blinding load through -- the out through much the day. a half-hour early and we continue to grind lower throughout the day. when you look within the s&p 500, a pretty broad decline, nine out of the 10