owes the u.s. does not anybody any apologies for exiting the paris agreement. >> exiting paris does not mean disengagement. the president said yesterday that paris represents a bad deal for this country. it does not mean we will not continue the country. to export our innovation and technology to the rest of the world can demonstrate it how we do it better here is an important message to send. indicated he will either reenter paris or engage in a discussion for a better deal. mark: mr. pruitt did not say if president trump feels climate change is real or a threat to the united states. tropical storm beatrice weakened to a low pressure system this morning but continued soaking areas with heavy rain as it moved inland. the u.s. national hurricane

center said the remains of the couldst -- of beatriz dump heavy rain causing flash floods and mudslides. president trump has taken the battle over his travel ban to the supreme court. justices will be asked to reverse a string of courtroom losses for the order that temporarily bars entry to the u.s. by people from's expert ominously muslim countries. a lower court ruling said the singlewas "directed at a religious group." true blood trying to determine the identification of the man they say once to detonate a bomb -- authorities say he was armed with an assault rifle and set a casino fire that killed at least 36 people. islamic state claimed responsibility for the attack. philippine officials say it was a robbery gone wrong.

joe: --julia: live from bloomberg world headquarters. joe: we're 30 minutes from the close of trading here in the u.s. joe:julia: u.s. stocks rising to records while bond yields hit 2017 lows. joe: the question is -- "what'd you miss?" scarlet: a weaker than expected read on the job market in may and unemployment falling. where are the raises? the dispute with over raising the debt ceiling.

a move that challenges the treasury's authority. investor david on more proposing to shareholders, he spoke exclusively on how gm can unlock more value. let's look at where the major averages stand as we head toward the close. abigail doolittle standing by. abigail: records. we are looking at records for the major averages. big weekly gains and the weekly -- the average is on pace for in a second weekly gain row. look at the nasdaq -- at session highs, up more than .9%, almost up 1%. we will be getting to why, but in terms of stocks rallying despite the weaker than expected jobs were orton, some analysts think investors are still holding out, hoping for tax reform from president trump's administration. he thinks the potential meeting

when the fed raises rates in june could be the dividing line. time will tell. stocks hitting record highs today. paul sweeney, bloomberg intelligence analyst and director of north american research, told me in a phone call moments ago he thinks it has to do with the fact that tech is the top sector this year and investors are hoping the trump inflation will somehow play out and that they are willing to pay out for growth. as for broadcom, take a look at those shares. theher record bid after chipmaker did put up a very strong quarter. susquehanna calling it a classic beat and raise quarter and that broadcom is a must hold in tech. when we strip back what happened this week, we have big weekly gains, but when we going to the bloomberg and look at sector competition, something very interesting emerges.

this is the group-ranked return function on the bloomberg this week, and we see we are looking at mainly green. big gains, too, with the exception of real estate -- up 21% and 2% -- up between 1% and 2%. these top sectors from the trump trade since the inauguration are both dragging. how long can that dynamic continued? time will tell there, too. julia: thanks. "what'd you miss?" another wild week in washington that started with an investigation into possible ties 'stween president trump associates and russia. rumors of a white house shakeup come the resignation of the white house communications director and the president's controversial decision to withdraw from the paris climate accord, a move that has drawn furious condemnation from ceo us, scientists, and world ceo's, -- from

scientists, and world leaders. great to see you, as always. what did we learn in the press conference that we did not know yesterday? do you think the fact that they even held it suggests some kind of surprised from the administration at the back laissez have received? >> they held it because they expected questions on what is a decision with global consequences. -- do you think the fact that the even held a suggests some kind of surprise from the administration at the backlash they have received? >> pruitt said the president made the decision he made based on economic factors alone, sort of echoing the president's remarks yesterday about trying to negotiate a new deal, a better deal for the united , which other countries

have rejected already. it's not going to happen, but the white house is sticking by that decision. joe: yesterday, during president trump's rose garden speech, he said things are going well on the tax bill, which any have pointed out there is no tax bill yet. what is happening on the trump the things julia mentioned? >> there is no tax bill. there is no draft bill circulating. there has been nothing introduced. there have been no markups or hearings. house republican leaders have some ideas. probably the most concrete set of ideas on what they want to do going forward. senate republicans do not have that and the white house has offered very little guidance apart from a blueprint they put out late in april that is about a dozen bullet points, mostly on the things republicans agree on,

not the tough things like how you pay for them. i think that is where they are at the moment. the white house has said the three planks of what they view as essentials for economic growth are deregulation, which the president is doing a lot, mostly by executive action, some fast tracking through congress, attacks these, which i just mentioned is installed, but there is also the infrastructure piece. public and in congress are not particularly enthused about that. bloomberg's national political reporter. thank you very much. let's turn to the country's looming collision with the debt soonng that could come as as august. the president's chief economic adviser said today that congress has no choice but to consider or other attempts to avert an unprecedented default, but not everyone in the gop agrees with the strategy. here to break it all down is bloomberg'ss just

-- here to break it all down is bloomberg's treasury reporter. administration, there are differing voices on the correct strategy. >> we are hearing from the administration a split view. mnuchin said he prefers a clean bill with no policy writers or any other physical changes -- no policy riders. mullaney comes from the freedom caucus, where they do want policy riders. he went as far as to say that forhin, his recommendations a clean bill are not necessarily the administration's stance. we heard similar comments to mullaney's -- to motivating -- mulvaney'sy -- to

echoed by cohn. for one thing, their comments are calling the treasury secretary's responsibility of being the chief spokesperson for question.into at the same time, it is a republican-controlled congress, but they need clear signaling a united front to know what their legislative agenda should be, what they should work on first, what is a priority, and they are just not getting that now. the other thing this mixed signaling does is it gives democrats leverage. if they see they can attach these policy riders or stick to their guns and recommend a clean bill, they have something to bargain with now. julia: it is actually worse than

that. actuallyy -- mulvaney told newspapers mnuchin does not necessarily represent the u.s. what does this mean for future policy? not even just the debt ceiling debate. we're talking tax or whatever else they are trying to discuss when they are openly disagreeing . >> is possible this is really just a difference of nuance. mnuchin answer a question saying a cleanis reference for bill. if they would come together with a cohesive message, it's possible that neither of them are completely incorrect on what the administration's policy stance really is, but their language, the way they are explaining themselves and each other shows they are not really on the same page, and that is a problem. scarlet: both sides are in the

process of trying to convince president trump. thank you. the white house is reviewing invoking executive privilege to prevent former fbi director james comey from testifying june 8, thursday, and we've been talking this whole time that that was always a possibility, that the president's office could say, "you know what? executive privilege. you cannot go there and testify." julia: he's got real trouble doing that at this stage. imagine the outcry. at thiss pretty risky stage. there's no way they could do that without it looking pretty bad. askedt: sean spicer was doing the press conference, and he said the committee hearing was just noticed and it has got to be reviewed. maybe we will get an answer saturday morning in a tweet. coming up, highlights with david

einhorn and his ongoing battle with general motors and a lot of ice cream metaphors. this is bloomberg. ♪

scarlet: "what'd you miss?" billionaire hedge fund manager david einhorn x general motors needs to create more value for stockholders and proposes the automaker splits into two classes. is strong and much of its business and has made good strategic moves. operatingts of areas an automobile company from product design to sales to manufacturing customer support, so on and so forth, but one area where gm is week is in capital

structure. it has a balance sheet which is fundamentally too conservative .or the value being created the company has a market cap of just about $50 billion. they have $20 billion in cash. , a fewrawn revolver billion dollars more offshore in places like china which is not even counted. shareholders have been rewarded with the lowest p/e multiple in the s&p 500. it trades at a huge discount even to or. multiple, itd's would be trading 30% or 40% higher. something needs to be done to unlock value. >> mary is certainly concerned about her stock price.

she knows. she has a team around her. why have they not addressed it? >> this caring about a stop rise and caring about a stop price. i could lose that last five pounds, but do i care enough to change my diet and exercise to do that? be fivei would like to pounds less, i'm not willing to do that. gm is not really willing to do what it takes to make that happen. >> is it possible they are also scarred from the experience of ? ing bankrupt >> share. -- sure. the company has said they are forever grateful to the united states for bailing them out and preserving the company through the last recession, and the company is capitalized to make sure that never happens again, so i think there are several ways to get at that particular thing. you could decide you are fighting the last war and change your balance sheets to make it more conducive to the current

business, the current cost structure of the company, which whichucturally improved, would require much less liquidity and cash, or alternatively, you could do something that is kind of clever, and we have a proposal we have made which allows the company to keep its cash, keep butits rainy day money would unlock the value at gm. two classesinvolves of stock essentially. what are they? have a stock right now. as the owners are gm, you get dividend and all the other values of ownership. if you separate out the value of dividends from all the other values, you would unlock 30% to 50% increase. >> so there is dividend share and growth share. >> correct. >> each shareholder would get one of each?

>> one of each. the same growth you have right now, but if you wanted, you could trade, and the result is people who are more interested in dividends, you would have new buyers that would come in for those dividend shares, and alternatively, if you are interested in the growth but not the dividend, you would buy the other shares. >> if the market were working properly, the value of those two shares should equal the value of one share right now, but you in your proposal to you think there is a fair amount of upside. why is that? >> it has to do with choice. think of it as an ice cream stand that sells just vanilla chocolate swirl. there are some people who like that, and we will call them the gm shareholders, but if gmcolate is the dividend and is the rest of the operation, if they sold whatever people wanted, that ice cream stand would sell more. new participants in the market

would come in, and they would did them we think of to 7% to 9% yield, and similarly, people who are not that interested in dividend but want to just see the stock will of wood by the capital appreciation shares -- people who are not that interested in dividend but want to just see the stock go up would buy the capital appreciation shares. that'swould they not say a good idea? >> i think the truth of the matter is they never really engaged in it. they just thought what we've done from the very beginning. what we wanted from the beginning was a collaborative, solve theprocess to balance sheet problem. what we have done is in addition to our plan, which is up for the shareholder meeting next week, we have nominated three directors, who bring in enormous capital market sophistication,

which is not present at gm. i think the cfo is a little bit weak. i think mary barra is a wonderful ceo but finance is the area where she is not as strong as in other areas and i think the board lacks this area of expertise. president trump often cites how well the stock market has performed since his election, but how does it stack up against other postelection periods and are does the trump bump f when taken since inauguration? this is bloomberg. ♪

scarlet: after the election, banks got a big trump bump boost , but that has faded and the yield curve has flattened.

linean see with a white goes down, banks are underperforming the broader market. the blue line shows regional banks to the s&p 500. again, the ratio moving in the same direction. investors are getting particularly antsy about the white house's inaction to appoint three people to the federal reserve. notably, the vice chair or supervision. that's the person who can alter stress tests and meaningfully move the needle for these banks. we do know that the house is going to address dodd-frank next thursday, so maybe the move -- maybe the needle will move there on that front. donald trump very eager to point out the performance of the stock market since he arrived at the scene, and that's what i looking at here. looking at gains from election day through the first day of trading in june.

trump is right that there has been a pretty strong performance, but compare that to well.1 and jfk as you can see he looks good, but there are other contenders. from electione it day to the inauguration and look at the performance. outkey one i did not point was obama, which is negative, but obama goes from low to superhigh if you take it from inauguration to june. trump, meanwhile, sees some of his gains soften. was focus of judging the performance of the president by the stock market is utterly absurd. that takes an about a month and a half of declines to start when you look at obama. that is remarkable. i want to look at the picture

stop trends. this was pointed out to me earlier this week i our colleague. really simple, a relationship between the nasdaq 100, the powershares qqq and russell shares etf. big cap tech, as everybody knows , doing very well. ofil a little bit underperformance yesterday, at its highest level since 2001. shows how much people love these big tech cap names. scarlet: say that quickly five times. joe: we are still nowhere new the peak of the bubble, so putting into perspective some of big long-term trends. scarlet: the market closes next. take a look at the major indexes. i left a a lot of time for this so you can revel in the round number of the dow jones industrial average.

21,200. and two. we should mention the dow and record territory. so it has caught up with everyone else. this is bloomberg. ♪

julia: what'd you miss? for the year. i'm julia. scarlet: i'm scarlet fu. joe: i'm joe weisenthal. we want to welcome you to our closing bell coverage. some breaking news. according to the new york times president trump has said to pick for the federal reserve board. quarles goodfriend. we were just saying the white house has been pretty slow nominating their picks. now it is finally happened. this is according to the new york times.

we will give you more details when we find out. president trump specs for the federal reserve court. let's begin with our market minute. highs, forcinghighs stocks across the board. the dow, s&p and nasdaq and record territory. a nice round number. joe: right on the money. scarlet: small caps doing well as well. if you look inside the imap, we are switching it out for the sector breakdown. eight out of 11 groups are higher. following of course with prices. if you back out of that, tech shares doing well. segment of the tech market. that would be the electronics manufacturers. that might be why that group is

down a little bit. you can see strength across the board for most of the sectors. in terms of individual names, the biggest performer, best performer in the s&p 500 percentage terms. here are the energy names. a quick look at the energy names leading the decline. this is the lowest level since march. they have been slumping for a wild. the biggest percentage gainer in the s&p 500 after it gave an optimistic sales outlook. $4.5 billion. for lululemon, the best day this year. they will revamp their line of girls apparel. for buffalo wild wings come up to present. is stepping down, getting into activist investor demands.

>> let's take a look at government bonds. every sector of the stock market was up. it was all the asset classes. .hat means lower yields we are back to lowest level since november 11 after the election. .e had the mediocre jobs report not so terrible it worried about the economy. that means goldilocks. there's that long-term look at the one year. that is the story of rally of almost everything. julia: the dollar index hitting the lowest it has been. number, we payroll have repriced the trump trade. that has evaporated. it's the lowest it has been since may 18.

i want to show you currencies almost in -- mostly don't talk about. how exciting. you can season strength coming through in those emerging markets. have oil trading at just below $48 a barrel. >> let's take a look at those commodities. >> that corresponds to the week energy names, down 1.2%. gold rallying. that is alongside the treasury havens. up 3%.m having a big day if we look at a long-term chart, anyway,a metal that -- it's not doing as well. 7% in five years. >> what'd you miss?

gina.bring in of course, we have the tech sector to thank for these record highs. look at the returns so far this year. up 21% in 2017. >> it is not just u.s. tech. european tech, leading european returns. it is across the globe tech shares. as leaders. >> if we can pull up the chart, talkis different isit is acrost us through the park. >> blue bars are earnings per share. this is where we are now.

>> the first thing is tech leading the bubble. it's the immediate response. should we be worried? when you compare that to tech share price on the index we are at a pretty reasonable level. it's unlike the bubble where tech share price exploded to two times it share. today they are about the same. julia: we are looking for them to drive the market forward. the economics here, the data we you canthe payrolls, talk us through the supply index again. that is not helping us. >> economic surprises peaked. things going lower have damaged portions of the equity market.

financials have suffered. the areas that have done well sensitive,onomically more prone to do better when the dollar weakens. prone to do better when economic conditions holdup. other areas of the market that have done well, industrials and materials. your defensive shares have done well. that mediocre data, the reflation trade is basically completely disappeared. it really tracts those five-year inflations. that data is small in a direct way. >> it has been one big trade. we talk about it being the trump trade.

some called it the inflation trade. unfortunately it has all turned over. the result has been this rotation in the entity market. >> can you explain what is it about the small caps that make the more sensitive to expectations? >> the first, inflation has gone hand in hand with the dollar. thevigorated growth in united states. a lot has come from trump. there are several angles to this. few are multinationals. a 10 to rally when the dollar rallies. they are risk on assets. we have seen a more defensive tech trade. it is not a full on risk on trade. small caps have lagged in that environment. scarlet: in that perspective it is not as risk on.

when you look at emerging markets, they are doing fine. -- they are holding their own. withey are battling it out develop market stocks. there are a couple of things that go to mind. when the dollar has declined, emerging markets have done better. they have shrugged off the weakness in china and brazil. they have been able to continue to move forward. ise of this is what happening in europe specifically. europe is showing a reinvigoration of economic activity. i think that is helping eastern europe and portions of the economy more sensitive to europe

globally. , we havegh the u.s. gone through trump trade, it is still stable and the rest of the world is improving and that is helping. scarlet: thank you. up, we will have three charts on today's jobs data that you will not want to miss. a deeper look at the breaking news we just got from the new york times on president trump's potential picks for the fed board. this is bloomberg. ♪

>> it's time now for first word news. the white house is reviewing whether to revoke executive

village from james comey to prevent him from testifying before a congressional panel. comey is scheduled to testify thursday before the senate intelligence committee about his firing by president trump. the u.n. nuclear agency says iran has shut down its heavy water producing plant in keeping with the landmark nuclear deal. the international atomic energy agency's latest inspection showed the plants water stockpile stood just below the maximum limit. heavy water cools reactors in nuclear warheads. thet pruitt told reporters united states will not apologize for withdrawing from the paris climate accord. pruitt also did not answer questions on whether president trump believes climate change is

real and a threat to the united states. pruitt said the views on climate change were focused on one singular issue, whether the paris accords would be good or bad for the united states. rex tillerson is downplaying the significance of the u.s. a lot from the paris accord during a photo op. he said america still will continue taking steps to cut heat trapping pollution. >> it's important that everyone recognize united states has a terrific record. it is something we can be proud of. i don't think we are going to change our efforts to reduce those omissions in the future. hopefully people can keep it in perspective. >> tillerson reportedly urge president trump not to abandon that deal but was ultimately overruled. global news 24 hours a day powered by 2600 journalists and

analysts in 120 countries. this is bloomberg. we want to revisit the breaking news we just got. according to the new york times donald trump is expected to threet to develop two of positions on the board. joining us is our economics correspondent. if you had to generalize this, is he going to install counterweights to janet yellen? >> i know both of them and i think that is definitely what he is looking to do. they wouldn't be the kind of people who comment and tear up the fed.

we talked about him before as the vice-chairman for supervision, a new position in the dodd-frank legislation that president obama never filled. wouldld be expected he lighten regulation of major banks. he has been a member of the shadow open market committee, a group of people who argued in sense thatney supply has become less important. he has become rules,. that is where the disagreement would come in. a good friend of bloomberg surveillance. he spoke on bloomberg surveillance back in march.

the economy is getting strong. . the key point is the interest rates, they are too low. >> interest rates are too low. >> which is kind of interesting. donald trump was all over the lot on whether he liked high or low rates. if he's going to stimulate the economy, he doesn't want them pushing back to hard. we need higher rates. that would represent a change. we don't know when, if indeed

they will be appointed three we don't know when they might take office. >> that is what i was going to ask you, whether we could deduce from these potential decisions and increasing likelihood that janet yellen gets to stay on. >> i would look at it the other way. you are putting in people who disagree with the way she makes monetary policy. a lot of members of the policy disagree what it should be right now. point they all agree on the way you make policy using discretion. putting people in who believe in a rules-based methodology might be assigned to janet yellen that the president is not point to keep her on. joe: all right. thank you very much. julia: i see that as a counterbalance. to going to add some hawks

make it difficult to get your way. staying on the economy, the pace of job creation in the u.s. is more than expected than last month. here now with the deeper look at the data, three interesting charts for more that people may have missed. this is the percentage of employees workers exiting the labor force. tell us what this is about. >> this looks like a good sign. we have referred to this as the retirement rates. it probably captures a lot of people who are currently in jobs in the next month they leave the labor force. they are exiting the labor force altogether. you can see that throughout last year and this year that rate slumped. that might have been a psalm -- sign that people were more

cautious. the fact that that is rebounding to levels close to record highs is potentially a good sign. it might point to higher confidence in the economy and personal finance. highstocks hitting record . live off of your equity. scarlet: you certainly could. a lot of baby boomers were not retiring and preventing jobs from opening. people who were looking for work could not fill those jobs. that seems to be changing with fewer discourage workers since 2008. >> obviously we see the unemployment rate coming down a lot. there has been this issue of the people who have dropped out of the labor force because they have been unable to find work. this shows the number of people who say they would still like jobs if they could find them. if you look at this as a percentage of people outside of the labor force it's close to record lows. if you look at the absolute isber here you can see there

a million more workers who were outside of the labor force. this bigs the idea that even though the unemployment rate has fallen quite a bit, there is people that could draw back into the labor force, which has been the theme. age workers prime that are not helping with that. if you like of the last few months, tummy what's going on here. tothe unemployment rate fell a 16 year low last month. declinelem is, it was a in the labor force participation and it wasn't really older workers whose rates fell. they stayed the same. where we saw the decline was in some of these prime age, the 25 to 34-year-olds.

thecan see that these are age groups that have led that rebound and participation. the fact that something happened in may where those participation rates decreased all caps doubt on that decline in the unemployment rate and might explain why we are still not saying wage growth that you would expect. joe: great chart. thank you very much. up, we wereg talking about britain's theervatives crushing election. markets are responding. we have reports about that. we will take a deep dive into british parliaments -- politics and markets. ♪

prospects for a conservative landslide victory in the general election have dissipated. a deep dive into the bloomberg, you can find the following charts. what i'm showing you is a calculation we have done that looks at the conservative implied majority of seats. you can see the back end of april this was looking high. what we would call a landslide. that has dissipated to zero by the last polls we have seen. it's one of the big confusing things. we have a first system that even when you look at polls, that doesn't translate. it can be confusing. joe: it can indeed. i'm looking at the market ramifications of what you showed.

the blue line is the polling or labor. it tells the exact opposite story. that is the blue line. reversalsline is risk , the premium plates. when it goes lower people are buying outputs. the pound was ambling along. the last several days it's starting to gather steam. people buying protection against the election. it corresponds nicely with the surgeon labor to where they are actually a player in this election. to eu go onyou go the bloomberg, a landing page for europe, that includes the u.k.. the u.k.. brexit for here are the polls for the different parties.

how reliable they are is a different story. we have got charts year that show what some of the scenes are. let's make it bigger. what's the big issue now for this election? brexit of course. rising is health. dementia tax. it stimulated the increased labor as it declines brexit. keep your eye on all of these things next week. shameless promotion, if you have a bloomberg terminal check out tv . that is our interactive television function. if you look on the right-hand column you have all of those movers. you can pull up a chart of microsoft.

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scarlet: environment of protection agency administrator scott pruitt says the united states does not oh any apologies for officially withdrawing from the 2015 paris accord to lower greenhouse gas emissions. he explained the decision to exit the agreement at a white house briefing today. >> exiting does not mean disengagement. that parisnt said represents a bad deal for this country. it doesn't mean we are not going to continue the discussion. to demonstrate how we do it better here is an important message to send. he's going to reenter paris or

engage in a discussion around a new deal putting america first. mark: he did not say whether or not the president believes climate change is real or a threat to the u.s.. theresa may says she has spoken with president trump and expressed her disappointment with him to pull the u.s. from the climate accord that britain did not sign a joint statement by the leaders of germany, france and italy who said they regretted his decision and insisted the accord cannot be renegotiated. accused theresa to donaldservience trump, saying this is not the leadership great britain needs. germany has passed measures to strengthen the ability of authorities to identify and support migrants who may be dangerous or undeserving of asylum. germany's migration agency will be able to evaluate cell phone

data of migrants who arrived without proper documents and share data with other authorities in situations considered dangerous. the measures speed up deportations in reaction to the deadly christmas market attack in berlin. authorities have released new security images of the manchester bomber's last moments hoping it will prompt someone to come forward with new information. the investigation continues and the attack that killed 22 people. custody onin in suspicion of terrorism charges in connection with the attack. six others were released without being charged. is headlining a benefit concert. disney will air the concert before it's carried around the world. powered by more than 2600 journalists and analysts in

120 countries. this is bloomberg. scarlet: let's get a recap of today's market action. record highs as the board. russell 2000 gained 1%. what was down. >> we have the dollar down and oil down. those of the guys struggling today. ae bond market leading to softness in the dollar. all systems go to the qa -- qe trade. >> what'd you miss? you have heard of ipos. s, offeringze is ico crypto currencies as a means of funding is miss. down, joiningit us from san francisco, what is

an ico? >> it is a crowd sale. a way of raising money by pre-selling the things you're going to build or access to things you are going to build. online kickstarter, we are familiar with crowd sales already. coins kickstarter these that the issue become speculative instruments. people resell them and trade them. >> yes. you buy the coins and you have instant liquidity. the main goal is to raise the funds to build something that as decentralized infrastructure. >> what did the coins get you specifically? >> it varies. the prediction market last month sold tokens ahead of time.

markets used to create or make bets on the prediction market. a browser selling digital advertising tokens and they would be used by thentisers to buy ads and the viewers of the ads would be compensated. >> the numbers are pretty impressive here. is $35 million and an auction that lasted 30 seconds. >> yes. >> explain it a little further. they are built on the same technology in which we are used to talking about bitcoin and others. >> a lot of these tokens can only be purchased using a currency called ether, which you can only purchase with bitcoin.

these new offerings create demand for the currency used to buy them. there is a lot of money flowing into it now. etherhave a chart of which has gone ballistic, extraordinary. $240 per coin. you can buy them with these currencies. the architecture of the coins themselves are built on to the ether block. explain how that works. , ithen the coins are issued is managed by a smart contract. you can keep track of the people funding the coin, transferring the coin. you can see where everything is going. a handful of people end up getting the tokens. >> you were on a great bloomberg view column. called a great quote,

ponzi ico. holders get nothing more than the right to vote on the color of the car. somehow that collected $3000. that sounds like a joke. it is not indicative of the whole thing. toetheless, it does speak what an observer would say looking in, this looks like madness. >> you have to remember to her three years ago it was worth approximately zero. were freeover 75% mind, acquired for basically nothing. a lot of people have these paper gains. they don't know what to do with their perceived wealth. they throw it into these tokens. >> this is a fascinating topic.

columnist, view check out her column. thank you very much. next, fundamentals investing. hear more.to ♪

julia: cats may be the next thing to take over, i'm talking about the furry feline.

in an experiment, an index from companies with cats in their test and watched it returns. for more on how to build your own themed etf, this is my favorite story. the most efficient thing of the bloomberg terminal. quite so basically i'm rich now because cats are the new hot thing. basically this is an experiment. there are so many smart beta funds. i kind of wanted to show that you can make any factor look good. why not do it with cats? the internet loves cats. cats and ith returns so much. julia: that is the chart we are showing you now. some kind of extremely stellar

performance. >> i think you meant to put a period instead of a,. that is -- i ran a screen on bloomberg. any stock, any size that had see a that had cat in the. there's alsoy but insightful things about these strategies. anycan back test and get great return that you want. from a of this game came penny stock and has been pointed out by others. the whole world of smart beta might be premised on the idea that it is inefficiencies. >> as much as i want this to just be about cats, visit -- there is a lot here. a guest you had on your show, this is a big thing they point

out. they look really good but a lot of the edge that you think you are seeing are from penny stocks that are basically untradable. it's actually on the gray market. to actually trade this thing you have to file paperwork at the sec. how can you put that in a strategy? when you cut away the penny stocks, i ran it again using market cap of 10 million and higher. the edge disappears. lot of strategies look good on paper but in practice not so much. >> you called it the dead cat slot. multi-cat skill litigation. >> this is another problem. if you have to keep tweaking it a bunch until you find something that works it means it is probably not sustainable. valuable work no matter what

metric you use. if cat were to actually be a saying, it should work in european stocks. it should work on all sizes. >> have you looked for european countries? >> i did gat. like spanish, gato. in the market, any size, any variation it should work. cat does not work in those circumstances. >> it has to be like a mitten, not a glove. you also spoke to some hard-core people. what were these guys saying to you? >> i have to give them credit for playing along. them, theyt told were like i want to be nice but

this is ridiculous. i know it is ridiculous. all of them understood the exercise. they see it all the time. new competitors, they have their roots in the pharma french. it is tainting the name of investing when you have companies that are popular with millennials and calling that a factor. they would say that is not a factor. value, momentum. anything else really isn't such. he jokes around quite a bit with me. economicds been rationale, which is important because you have these people experimenting with big data trying to find correlations. are they long-lasting or not? followers ofive

the dog and cat. scarlet: you are going to put in another cat upon. -- pun. >> the pledge to withdraw from the paris climate accord. this is bloomberg. ♪

scarlet: american ceos have responded negatively to president trump's withdraw from the paris climate accord because they want to be politically correct. the founder believes there is no incentives for big business to comply with the accord.

he spoke exclusively at the st. petersburg international economic forum. >> they want to stay politically correct. >> you don't think -- >> really? they -- [inaudible] i think it is true. to be honest. until they will not put carbon, trade, price for carbon, carbon tax, there is no chance to comply with the paris agreement. there will always be a reason should reduce they requirement and pollute some way. this is the main problem.

the only chance for people, for the come -- for the company to comply is to have economic equivalence for what they are doing reducing carbon. ofhave done it a lot reducing carbon footprint. carbon footprints, almost five times less than our counterparts in china and in the middle east. -- to behareholders honest. we have commitment. apple committed not to do that. but to be honest it is their costs. to be fair we need to have the same commitment. ali economics will do it. renegotiate,me to which finally everyone agreed in

a global economy, carbon tax. >> president trump has a lot of critics. what do you think of the job he is doing? >> too early to say. >> what do you think of so far? >> too early to say. >> on immigration, the environment? >> too early to say. >> are you optimistic? >> yes. he's a businessman. someone who we have didn't spend one day on the field. they become professional politicians preprofessional talkers. they compete with media people. reminded then you. but they are not producing much

progress. we need economic progress. this is based on freedom. we critique our leaders. they have a lot of nice talk others there is not much economic progress. idea but what is the reality? he wants to do reality. that's why he may do this decision which -- >> you are supportive of the objectives. too early to decide if he will be successful. >> we need to see what happens in two years and how the economy , and how the u.s. economy will affect global. >> are you hopeful he will create more opportunities to do business in america? america turns to manufacturing again, to solve these issues, losing jobs and

companies, if america will really start infrastructure development, it would be a lot of room. unthinkable drive in a real economic growth, not through quantitive easing or some financial engineering. but it is a key environment. energy resources. the u.s. is going to become independent on oil and gas. it's important for infrastructure. promisedous president to do a lot of projects. nothing was done. i think it is a reality. and he was a good president. that was an exclusive

interview with the president of alumina producer julia:. time for the bloomberg business flash. extended the curve on oil output for another nine months. while prices have full and 8% since then. the russian energy manager speaking in the economic forum said the situation could be worse. >> if we had not extended the deal believe we would have seen the place -- the price 50%. of $50 of the oil price a barrel is good for the market. goldman sachs compliance department reviewing a $2.8 billion purchase of venezuelan bonds after that ticket protest. some lawmakers say the purchase lend support to the president

accused of human rights file asians. goldman sachs set management group bought them through a broker. 189,000 candidates signed up for exams this weekend. a 90% increase from last year. candidates spend 300 hours on average starting for the test three level. typically takes four years with a success rate of 20%. that is your business update. >> a quick update to what we were telling you earlier. marvin is on the list, of fed candidates. the new york times was reporting the trump administration selected good friend and randy quarrels. that would be two of the three positions we can confirm according to bloomberg

reporting. what you need to know about tomorrow's trading day coming up. this is bloomberg.

scarlet: another busy week coming up. apple will hold worldwide developers conference

in san jose. joe: it's going to be a huge super thursday. let's start with what's happening -- james comey scheduled to testify before the senate intelligence committee. on these will vote overhaul of dodd-frank as well. >> we have the u.k. general election and the ecb decision in the morning. joe: news junkies are going to love that day. scarlet: which are you most excited about? james comey testifying. the trump administration could -- scarlet:

alisa: and alisa parenti from washington and you are watching "bloomberg technology." let's start with a check of your first word news. secretary of state rex tillerson hopes people keep the decision to quit the paris climate according perspective.

speaking of the state department, he said it is important for everyone to recognize the united states has a terrific record at reducing greenhouse gas emissions. he had urged president trump to stay in the castile. video have released new hoping to prompt someone to come forward with more information. the investigation continues into last week's attack that killed 22 people at a concert. 10 men remain in custody on suspicion of terrorism charges. greenpeace protested president trump's decision to withdraw the u.s. from the paris climate accord. the group rejected an image of the president with the words osad" on thes building of the u.s. embassy in berlin. global new