Updatesbring you throughout this News Conference. You can also watch a live event channel. First, i want to dig into the story. It is jobs thursday. Being released early. We are all off for july 4. Will we see are worse with economic numbers . The good, the bad, and the uncertain. Editor isics discussing the surplus the u. S. Is facing and why it is not necessarily a bad thing. First from you on what we can expect from june. The good is we are likely to see labor market rebounds continue. Pace of that, but the Jobs Creation is the fastest in 15 years. You mentioned the consensus. The fifth be consecutive month of over 200, which we have not seen since the end of 1999, the beginning of 2000. The forecast is being ratcheted up after yesterdays surprising report. 281,000 jobs were created in june. The interesting thing is, so far this year, they have consistently undercounted the labored up hartman figure. Better than expected number. That is the good news. Maybe we can hope for signs of change today. No raise for you, betty, unfortunately. Most of those with jobs are not getting the benefit of a tighter labor market. Jenny own will be watching the number and also watching how many of the jobs are created are fulltime as opposed to part time and how many people in the longterm pool finally find work. No change expected but it falls into the uncertain category. It has come down a lot but it has been for different reasons. In some months, it is because more people find jobs and some is because people drop out of the labor force. The bottom line is we are clearly creating jobs and at a steady pace. Out, there are various factors as to what the jobs market looks like. The fact is a lot of people are going into the labor force and are not finding jobs and we are. Eeing a surplus of labor a study came out yesterday which i wrote about, talking about contrasting the United States and other countries, saying the United States has a fairly high birthrate compared to other developed nations. Question pan. Germany, italy, many other countries. It has a fairly liberal immigration policy. A growing population. Other top other countries a report says the u. S. Will benefit from having a bigger labor pool, which will not constrain the growth of the economy. You do not want a lot of unemployment. Does that not mean we will have a lot of unemployment . Classic probably does. On the whole, lean in that direction. I happen to think the report is a hypothetical exercise. It downot really pin to, we will have a massive surplus. It is just that, relative to other countries, we will have an easier time finding workers for the jobs available. We will have labor tightness as well but not as bad as other competitors. What your potential growth rate is depends on two thanks. Andsize of your labor force the amount of productivity you get out of them. We stalled on the productivity side right now and can hopefully turn that around, but at least we have the labor part going for us, which others do not have. You pointed out we are seeing in wage growth. That is something that, in theory, will have to turn around. Theoretically, they would cost more, but we are not seeing that affect right now. There has been so much interest on the corporate side keeping costs down. Expecting a small game today and that should lead to the annual rate falling back a bit. You are giving me all this bad news before my holiday. Going into the july 4 holiday, if you feel patriotic, you might be tempted to buy shares of companies that come exclusively from the u. S. Julie joins us now with more on that. Optimism that there is a recovery here. Yes. And that you should be betting from the United States. Of those who get most of their sales from the u. S. And the majority of them abroad. Those in the s p 500, i found just under a hundred for each. Those under 100 of their revenue for the u. S. Their growth is forecast at 20 , but those who get a majority of better inad have done terms of stocks returns, 43 500. , outpacing the s p also, in terms of earnings performance forecast, over 30 . It looks like the companies that have been internationally diversified have performed better. What are some of the top performers . Ina lot of Energy Companies the 100 u. S. Category are performing well. But also, southwest airlines, which has done really well. To pull a was on the list. A small note but i threw it out because it has locations abroad. Frontiereens and medications on the list. Companies with International Oh sure, a lot of biotech. Micron technologys heads up this list. Trip advisor, which we know has been a high flyer. That is a look at patriotic versus not so patriotic word folio there it thank you so much. Our senior markets correspondent. Moving and shaking this hour, the espn president , john skipper. The networks telecast of the world cup was huge win for the network. In an exclusive interview, skipper said the match was also live streamed by over 3. 5 million users despite criticism on social media that there were glitches in the streaming. Of the people had a very good experience. The game, i promise you, will look great. Our guys have done a great job. We can handle an enormous volume of digital users. Of bracket lot participants join us. We can handle scale. It has been a sweet experience for espn. Fox won the right to carry the next two world cup. A great job here, we are having a great job great time. A great event. And of course, there will be regret and not having it. But that is the capitalist system and we will continue to participate. He can watch all of my interview with john skipper on monday right here. In another exclusive interview, Olivia Sterns spoke to joe, who is responsible for employing over 300,000 people. She joins us from london. So how is joe feeling these days . I thought he might be licking his loans. This is a big setback that he lost to his biggest competitor, general electric. Actually, he was pretty leased. He did spend a lot of money hiring lawyers and bankers to put together this lastminute bc having mr. Mitsubishi putting a money of their own parent i asked him, and did youwere you actually see this as a strategic set . Here is what he had to say. I was very serious from the very beginning about doing the best. Were seriously considering all of our options. We took one step at a time and that is pretty much what we wanted. You got what you wanted. Did you see the outcome as a victory . And camek hard on it up with a great proposal superior to other proposals. Is the deal with the train built business still in play . Do not think so. It takes a lot of time and. Specially a Great Partnership if the partner is not willing to partner and do one step at a e, he says there the train deal, thinking there still could be a european tie up. He hesitated and then conceded it was off. He is happy because ultimately jihad put more on the table. Best of all, ge is now dealing with the french government as a 20 shareholder. We spoke for a while about europe and how confident he is in the european economies now. At ecb left things unchanged a record low. Another sign of how weak and still are here. Talking about when Central Banks will start to tighten. Mario draghi is still trying to prevent the economy owing into a relapse. He actually ends thinks it is still too early to recover. Thank you. Coming up, what is on your menu . Onhave crunched the numbers your fourth of july barbecue. Plus, the new jobs report is 15 minutes away. Economists say employers probably added 200 and 15,000 jobs last month. Are on the country focus on their own home and the jobs they. How jobs added to a resurgence in detroit. It is simple. Over 10,000 jobs in the last few years have been created in the city. Housing is 98 midtown and downtown. A new lightrail system going in, it whole entertainment district. The riverfront is exciting. You can have a great quality of life at a low cost. You are watching in the loop. We know republicans and democrats will seize on the numbers to make their own points. I want to bring in one republican, the former partner at bain capital and also author of the bestseller of how the u. S. Should incentivize job creators. President obama yesterday hosted several economists, conservative economist. Bernanke, and also someone you know very well from the American Enterprise institute. You are a visiting scholar. If you are in the white house and had a facetoface with the what would you say . Close to five percent today. Money. An us our they have to put that on the proceeds for the sale. We have to put that money to work to reach full employment and maximum growth range. That with way to do subprime mortgages. It kept the money circulating. That money is sitting idly and unused. Bank astting in the excess deposits going nowhere. And we do not have any alternative to put it to work. Until that time, we will have a mediocre recovery. Where we put that money to instantly create jobs . As instantly as you can get. You need them to find a new way to make it work. It was the only way we were recirculating the money. Maybe he dropped 50 , but you get as heavyhanded as they got , andthe last five years that one channel the president s radio interview . He is still attacking wall street bankers and he says, the risks they take art too much. Thatsaders take that and everyone else is left holding the bag. He says wall street still incentivizes too much risk. It is a hard argument to make for the general public we are able to trade those two things separately appear the funding part is easy. Everyone wants to go back to the. 950s we have successfully been able to separate those because we have credit default swaps. If we restrict banks to only the long side of the trade, we know from finance that we can get massive distortions if we do things like that. It is crazy to restrict the banks to only the long side of the trade. Have banks andll institutions like aig that will be too big to fail. Sure. Enormous money market, enormous money flows. What about the argument from the president . Make i agree its hard to to the public, that the taxpayers have to clean up the mess. The government a profit. They did not know that going in, but in hundred years of history has shown us. People do not understand banks are highly unstable. Stay with me. We have got a lot more to talk about. Edward will stay with me through the jobs report. Coming up, tech lovers to the auto dealers. We will tell you who won the latest showdown in pennsylvania. You are watching in the loop live on Bloomberg Television. It is mirroring 26 minutes past the hour. Were on the markets and we are waiting for the all importance jobs reports. Jobs expected to be created for the month of june. On the markets again in 30 minutes. As we wait for the jobs numbers, we are back with a former partner with bain capital, where he worked with mitt romney. Now aan krueger, professor of economic and Public Affairs at princeton. Since jobs are as much political as an economic issue in the country, i want to bring up a poll that ranks president obama number one in a category he does not want to be in. He is considered the worst era. Ent of the postwar 33 New York Post had him at. 33 of voters thought he was the since 1945. Ent to be fair, george w. Bush ranks second and jimmy carter at eight percent. Perhaps not a surprise if you report. The jobs what do you make of this . The president came in facing the worst economic stance. Roosevelt president obama is doing that, not as quickly as he would like and not getting much support from congress to help. We are at an upward trajectory. Im confident when the polls are taken again in the future, the president will be on the list of s president s in the postwar time. Administration were betting on it. Thought fiscal stimulus and monetary stimulus would have a big impact on the economy. Congress imposes constraints. Thank god the republicans composed restraints. They have been unwilling to work within those constraints. All kinds of things they could have gotten done. They did not do any of that and here we are five days later. That misreads the last five years. , theite of all of the harm reason my the gdp has gone stronger is because local governments cutting to events spending. Immigration reform is a great point. They had blocked any reform on immigration. Christ to those issues on immigration. High skilled immigration and low skilled. Age iss half to held high skilled immigration is held hostage. Low scale emigration will take a lot of negotiation the one thing thell say more is on economy and the rebound. If you look at Government Spending percentage of gdp, it may be back to world war ii levels. Did we havee growth after that . Correct. S not there is no way to slowdown the recovery. Youre wrong. The point on Immigration Reform is also wrong. We need to take people out of the shadows who are here and put them on a path to legal status and citizenship as the senate did with the bar bipartisan vote. It is demeaning to say hi scale and low scale. It is comprehensive. Others can be quite high skilled. You focus on discretionary spending, but you do not talk about the total. Total, thethe president offered entitlement reforms. Speaker banner walked away from the table. Will talk morewe about this. Ike mckee, also standing by julie hyman and peter cook at the Labor Department with those numbers. In june. 0 jobs the Unemployment Rate is dropping down to 6. 1 , the best number we have seen since september of 2008. Let me walk you through the numbers. Over 2000ght months wouldve been the best numbers we have seen since january 2012. And 4000. A big increase we saw that month. And in may of 24,000, adding another 29,000 jobs. The 2014 average now 231,000 jobs a month. The Unemployment Rate is dropping to 6. 1 . A pretty clean number here. The number of unemployed is rising 470,000. At Participation Rate hangs the Third Straight month we have seen it there. The use six number, unemployed plus those marginally attached, off 1 10 of one percent. There was widespread high hiring across the board. Service is 67000 and retail gaining or thousand in the month of june. Upsure and hospitality 39,000. The best number there since february. Government hiring also up 26 thousand. Two percent yearoveryear and a little better than our service number. Average hours, 32. 5. Another strong report and very report line with the adp we saw yesterday. Is right. Another positive set of numbers here. At otherure looking economic numbers released as well. , you are are a traitor very busy. Was talking to jim of jpmorgan chase. If you had a three percent contraction in the first quarter, you would expect them to go up. See theseontinue to cans of numbers. Any time, the Second Quarter gets a little bit of a boost. I am seeing equity futures. Oming up thee, youre looking at market. Really around the time the numbers came out, you saw a let down. The data is pretty uniformly better than estimated. Now, you get the fed handicapping. That is what we have been getting and the trend continues and traders try to figure out what this means for the Federal Reserve. We want to look at what is going on for the treasury market as well because we have seen a bump up. , sit t eight percent we have seen reaction to this report. Press ok. Yet another set of numbers that go to alans point a few moments ago. Years from now, we will act and say, the economy was recovering. When you hold the baby long enough, when he comes up for air, it will we will scream a huge sigh of relief. This is 12 real unemployment. Age,u look at the working adults compared to germany and france, our Participation Rates are not lower, closer to 88. 1 . A littlenally seeing growth but lets not lose perspective. It will never really recovered to the pace that you said . What is important is the American Public understand the economy is moving in the right direction. This is the best job growth we have seen since 1999. The economy suffered a tremendous trauma because of risks taken by the financial sector. The rest of the economy pay for that. We are digging our way through that mess. We are seeing a very solid report. What can be done . In the next two years to help the economy . Alan, what can the president do . Cant continue supporting the policies he is supporting better helping the economy recover. For example, investing more in infrastructure. Highways and bridges. Congress should authorize the trust fund. Question publicans would say to that, approve the Keystone Pipeline. Rates there, Infrastructure Spending from 4. 5six percent of gdp. It had no effect on growth and productivity. Businesses come in and talk to us when i was in administration and they said, we are not worried about taxes. About is making sure workers are well trained and that we have the infrastructure so we can export and sell our goods to mexico a. Those thing will make the economy better. Of course they will. Find a lot more Infrastructure Projects to be done. Were talking 2030 years into the future. We have those projects. We need better in innovation on our roads. I looked at some of the numbers we have been talking about here. Construction, not as good as you would expect in this kind of recovery. We are not seeing those comeback yet in the kinds of numbers you want. The other number that caught my lost 300,000 teachers in the month of june from payrolls. It does not show up because of seasonal adjustments. It is always tricky this time of year. 280 thousand jobs created, but that is soft and we may see you back next month. Peter, you have got something . Questions effect were looking at this in the economic perspective. At what point does this president and democrats running across the country start focusing on the economy and start running on that toward the midterm election. So Many Americans are still facing economic hardship. That will turn the same white democrats will now consider running on the Health Care Legislation as a positive. Is this far enough away that theirs this place to advantage. All john boehner nice news look at this report. Great question looking out 16. O 20 julie hyman standing by on markets and also alan joining me for this jobs report. Right now overseas, mario draghi News Conference. He is talking about the central maintain rates at the current levels after announcing the set of really drastic measures last month. We will continue to monitor his remarks. You can watch it on our live channel. We will be back in two minutes. O coming up, meeting making america. N maker performance packing maximum per hour. Miles arthur will be the first hurricane to hit the u. S. Since 2012. Target is asking customers to keep guns out of its stores. The retailer respectfully requests that consumers not bring guns to its stores to maintain a safe atmosphere. Expanding. S will be allowed to set up five stores. A victory for elon musks company, which has been battling for an and with a number of states. We bring you a look at the companies manufacturing its products right here. More than 100,000 trains and a chunk of those made right here in the state of new york. Crisis is a company that supplies aircrafts and trains worldwide. We are the largest supplier of air rails in the world. Ive always had a motivation. Cities and keep them alive and make them work. The company was originated in mold s with the snow snowmobile. Major contracts in montreal, canada. Also, it hundred 25 subway cars. Start with sheet steel like this and he comes from a supplier in the u. S. We come over here where we put in the and doors vehicle. We will now go down through the assembly line. Floors andtall interior interior lighting. We choose to operate in United States because it has one of the best systems in the world. And america requirement requires 60 of the vehicles ws content. U. S. Content. Were the main measure manufacturers. We are building cars for new york city, for chicago, for san francisco, for various commuter systems. Florida sun rail. Check one. We will move forward on our test track. The finishing end of completing the cars. Station one. And off we go. Coming up, we will take a deep dive. Mohammed will be joining me and weighing in and we will be back in two minutes. Happening right now, mario draghi at the monthly News Conference right after their decision to maintain low rates. We Just Announced the ecb will start a six minute effort to become more transparent. You can watch it all on our live event channel. Our free app. Youris not free will be july 4 barbecue. Will consume about 150 million hot sauce this weekend. Into july 4. Ng will you be eating hot dogs yourself . I wish i could but i cannot. We will basically drink a lot of beer and eat a lot of meat. Ground beef makes up a majority of the sales. It is extremely important for selllers division to double the volume of ground beef and hot dogs. Last year, 900,000 pounds of rigorous. Grill cost me . A pretty penny. The main cost is actually coming chicken, and ice cream. Indexergs barbecue tracks seven foods commonly used in our cookout. Record, 22 and . 17 in april. We are getting hit most, up 10 year on year. About 5. 64 hotdogs. That i love and put all over it, that is up almost seven percent. Overall, u. S. Food costs rise three percent. Since 2011. S a huge part of that you will blame on toward up 20 last year. Killing off their heard, completely depletes their inventory. That is the smallest and 53 years. Right. Thank you so much, alix steel, putting a little reality into your july 4 barbecue. The jobs data, as we mentioned, better than expected. Equity Futures Holding onto their gains. We will be back in two minutes. Bloomberg television is on the markets. Better than expected across the board. Jobs data. The jobs rate is going down to 6. 1 . In thousand jobs created june. Manufacturing jobs rebounding. Equity futures are a little bit investors are absorbing and discounting some of the news in coming up in a jobs report. We are on the markets again 30 minutes. Coming up, big data. A surprising jobs report, employers added 288,000 in june. Futures indicate stocks will open just slightly higher. To cash in on the natural gas boom in the u. S. Siemens is prepared to make acquisitions to expand business here after losing out to ge. Mario draghi is repeating his pledge. He says he will keep Interest Rates low while the central bank tries to emulate the economy. Mario draghi is speaking and we will monitor his remarks and remind you of that so you can watch it on your live channel on our free ipad app. Back to one of our top stories this morning, the jobs report, which Shows Unemployment in june was much better than expected. The jobless rate to a sixyear low. Mike mckee is joining me here it also, peter cook, who is outside the Labor Department. Peter, put all the data in context. What we heard from janet yellen yesterday of the fed, where she said, look, the Central Bank Monetary policy will only do so much for the economy. Classless she was talking about their is that Monetary Policy she argued cannot be used to foster financial responsibility. She said it is to remain focused on the unemployment situation as well as ice stability. She learned in this report is that the labor market is improving. We have got more evidence. Than00 jobs, much better 215,000. The Unemployment Rate dropping a clean drop. Just as important, she has stressed there are other things on her word, other labor market indicators. The number, attached those largely to the labor force. Small drop from 4. 2 the other is the longterm unemployed, 27 weeks or longer. It is down 3. 1 million. In terms of the total number of unemployed, 2. 8 . Still too high, but it is the smallest percentage we have seen since june 2009. Janet yellen decides what to do moving forward with the fed. You are looking at some of the stories in these numbers. What about some of the adjustments . We have to start by saying, these are all good numbers. Is a little higher than it may be otherwise would be. Tough monthjune, a to adjust for the end of the school year. 616,000 teachers left the labor force in state and local government. 20 because theut Labor Department anticipates that will happen. We end up with a slightly higher rate of employment, new jobs created than we otherwise would. We could see a snapback effect on that. The news on the Unemployment Rate is good for a change. We would just like to see a little better news. Then you would have the kind of labor force change that cheney on and folks are looking for to Start Talking about raising Interest Rates. It is coming. It is but we do not know when exactly. Thank you so much. Also to peter cook outside the Labor Department. Hour, and shaking this bill gross is trying to turn around the world passes biggest fund and it is a challenge. Pimco suffered its 14th straight month of net redemption. The strength by 4. 5 billion in june, it now us has 245 and out. Classed. As best in its it is in its 58th percentile. Growth is telling investors to prepare for a new interestrate. He should expect low asset returns that would be less volatile. Maybe a mutual one when it comes to his own fund. Of focusing on genetically modified crops, one of the most controversial corporations is making a move into computing. Has been vilified for suing farmers that break its Technology Agreement very it now says it is using big data to help find farmers. Tonighte for download and on news stands tomorrow. Drake, what is going on here with the company now . , after 10 years of being predominantly a seed company, theyre moving into a is big data on the farm. It is obviously transformed a lot of parts of our life. It. Ing is rife for there are 4050 decisions a typical farmer will make over the course of a season. The goal is to take a lot of the guesswork out of that and provide with actionable intelligence. Life they had a testy relationship with farmers. Are they as bad as people make them out to be . Depends on the criticism. Doingill sue farmers for things like replanting seeds from a genetically modified crop area what they will say in response is they only do those farmers who are being egregious about it. It is not organic farmers accidentally pollinated by these cross third is farmers trying to get it vantage get advantage of this without paying the premium for them. Agreed with the company. Christ doesnt hurt them financially when it happened . Lets not a lot hurt them financially. They have done incredibly well. They were spun off and left for dead around 2000 after a merger. Up 2. 5hen, net income is dan. Stock market evaluation is layup. Theyre doing quite well. You spent a lot of time with the company. What surprised you most . A lot of the research they do is not in genetically modified seeds, but conventional breeding. Incredibly a lot of the research, almost as much of it is going into this other breeding. Christ thank you so much. The latest issue, download the bloomberg industry app. They can read it anywhere they want. What does the jobs report tell us about the state of the economy. Former pimco ceo in just a few moments. And, the transformers movie is breaking Box Office Records around the world. You might get a chance to see it this weekend if you have not. Were looking at the fourth installment of the scifi series. The recent tech boom has produced a window of opportunity for jobs. A new study shows going those asitions takes twice as long other openings. Joining us now with more is a tech entrepreneur, founder of job search website and also an Advisory Board member of google x labs. Is eventhe reality worse . The reality is much worse. A recent study that came out this week said it takes twice as long to fill a tech job as other jobs. On the ground, what were seeing here in new york, other hot tech stock tech spots across the country, it takes four times as long as other nontech jobs. It is not just Tech Companies anymore hiring tech people. The majority of growth is happening from nonTech Companies. We have about 300,000 jobs in new york city, tech jobs. More than half of those our noncity companies. Large Companies Hiring tech people. They are hiring programmers and coders. First, there is a shortage . Yes. You start with a shortage and now we have a huge blast of Technology Companies saying we need to be in the tech game and have big data departments, having android and ios apps. That triples the work. There is almost so much you can only so much you can squeeze out of the tech staff. All the new platforms coming out, android and ios, the fact that you need apps out there on the web. United airlines never had to have its own ios staff and now it has got to. Smartphones are increasing at a rapid pace. Its billion total phones out there will increase to about 34,000,000,000 smartphones worldwide in the next three years, a tremendous update. Part of the issue as well we are not educated enough people . There is not only a labor shortage. We are also not creating enough labor coming out of our schools. That is right. Universities have lagged behind. They are not keeping a pace. The way the market is reacting is most of the new talent is being trained intact and not traditional twoyear and fouryear universities. They are trained in specialized, high intensity boot camps all across the country. One of them is called general assembly, where you can go 12 weeks 95 every day and switch careers from a nontech to attack career. It is not for a lack of effort. There are schools really trying to train students. The reality is that some of those students are just not interested in enrolling in those dem programs. We need to attract more people in general to the field. Million announced a 50 made with Code Initiative to track young women and girls into the stem field from an early age. We do not have enough women in the stem fields. You look for at Technology Companies. We do not find enough limoneira. Hat has to start at early ages middle school and high school. We cannot wait until there are ready in the workforce. That is critical as well. Thank you so much. Founder of job search website. Our Bloomberg Contributor joins howbout jobs as well as were going to bring those jobs back in the economy. What does he recommend the government do . We will be back in two minute. For months, we have been talking about General Motors and how did has in handling it recalls. How your dealership is taking on the 29 million cars that of been recalled so far. Huge task for them. Definitely a huge task. They are not drowning in repairs as you might expect. That was not the picture painted for me in conversations with different chevrolet dealers in the region. A moment grunt every time gm are recalls. Nounces the daytoday operations for the most part have not really changed much. Dealers are being inundated with phone calls but the ones i spoke to say their Service Centers have only seen a moderate to modest increase in repairs compared to the four february. Switch at just ignition recall numbers, the repair generally takes about an hour. Is 200 26,000. Divide that by 400,000 gm healers in canada and you get about 62 repairs in hours of labor per dealership over the last four months. Big dealers of the have had to do several hundred, smaller ones in the single digits. The calculation gives you an idea of pace. Are many more repairs outstanding considering offers first recall was for 2. 69 cars. They have their work cut out for them. To say theyi spoke have not noticed much of a change in Service Centers, not yet anyway. Thank you. A big task ahead for the dealership. Something else we will have to deal with, hurricane arthur gaining strength as it bears down on north carolinas outer banks. Some resident visitors have been ordered to evacuate. Marcy gonzalez, north carolina. Tell us how the weather right now is impacting peoples decision to evacuate. It looks like it is a clear day so far where you are in the background. Yes. So far, it is a gorgeous and sunny day. There are people out here sunbathing and taking a stroll on the beach, trying to soak in the last of the sunshine. The waves are picking up a little bit. Wind is picking up as well as the store makes its way. A lot of people say because it is so nice out, they will ride out the storm. Of the a different part outer banks come about 30 miles, there is a mandatory evacuation effecthat just went into a few hours ago. Those residents are now making their way outoftown. What about is this owners . What are they saying about the impact . The timing could not be worse for Business Owners. It is a busy july 4 week. One of the biggest busiest times of the week for the year. They are keeping their fingers crossed that everyone does not head out of town since so many people here say they are tried to planet outcome it could be big news for Business Owners here. They could be expected to dry up by later tomorrow. That means it can still be saturday or sunday for business. Early estimates is that businesses could lose 25 of their profits. Christ marcy, thank you for joining us in north carolina. Just before the hurricane is expected to hit. We are a few moments away from the opening bell. A top 10 stocks you do not want to miss. Keep it here. Welcome back. It is 26 test the hour on this job say. Julie hyman has more futures, barely budged on this move. They sort of budged. But yes, if you look at the veryes, we are seeing little change, even though as we are talking about the numbers him a they were written much of of the board that are than estimated. The limiting factor is the Federal Reserve. Say, can now will janet yellen wait until the Second Quarter of 2015 to raise rates if you are getting joss reports like this, continued wage growth, other types of inflation. As the debate goes on, we are trading at record. That is the very important context to keep in mind here to keep an eye on the dow 17,000 today. If we see a bigger rally, we could get there. On the markets once again. Thank you. The top 10, the only trades you need to know about today. Lets start with number 10. Shares of the pharma giant are following in the free market. The popular drug shares for viagra and this month. A generic version by the end of this year. Number nine is go pro. The shares are rising again, the stock was 14 yesterday. They went public a week ago and shares had risen more than 100 before that little lip yesterday. Number eight is best for best buy. Raising its outlook from negative, also reaffirming its rating. The agency said it updated due toprogress as it transitions a true multichannel retailer. Number seven was tesla. Elon musks Company Expanding into pennsylvania. That will allow the highend electric carmaker to set up stores. That position is a victory for the company, which has been battling for a number of states over direct consumer sales model. Number six is facebook, company, advertising the latest step to make video as a bigger part of its business. It is this but did not disclose the deal. Therapeutics. , it ended a cancer nine unsatisfactory results. It is still focused on developing new collaborations with other drugmakers. The share fell to 16 on the news. Number four is nokia, it said. T would buy sac wireless it says the acquisition will help the Company Expand within the u. S. He did not reveal the price tag for the deal. Number three, the drugmaker is in london trying to convince shareholders of the proposed shareholder in the country being inre and in the their interests. The number two stock, lululemon and. The founder has been talking to private equity firms to see if theyre interested in buying the company according to the wall street journal. Lululemon does not have a deal in the works. Number one is the american apparel. The ceo handed over his tire Voting Rights in the company to the general hedge fund. They have been fighting to regain control of the company, suspended he does lisa go. A lot more is happening on that run for american apparel. Start to trade on this jobs data, i want to bring in the former ceo of pimco and now that shes Economic Advisor and columnist for bloomberg review. An average added world cup watcher. This jobs report was a lot better than expected but it does not feel that great. Markets have not really reacted much to it. What is your take . We have to distinguish between main street and wall iseet. Mainstreet comprehensive not only in terms of the headline numbers. 288,000 288,000 jobs created. And we have had upward revisions. Mainstreet, this is a comprehensive strong report. Wall street is torn between the good Economic News and what this could mean for a super friendly Federal Reserve. The Federal Reserve has in the markets best friend. They worry this may make the Federal Reserve less accommodating. Janet yellen seems to signal that a little bit yesterday in her discussions with Christine Lagarde at the ims. Let me play for you part of what janet yellen said about Monetary Policy. Monetary policy faces significant limitations as a tool to promote Financial Stability. Its effects on financial , such aslities successive leverage and security transformation, are not well understood and are less direct than the regulatory or supervisory approach. What is she trying to say here . Say, i hearying to the people who worry that low Interest Rates will create Financial Stability down the road. She says, i hear you, however, the answer is not higher Interest Rates, but macro potential policies, policies that directly target risktaking by the financial sector. She is trying to say, if i raise Interest Rates, it will not be because of the rest of Financial Stability. It is because im worried about the economy. So far, she does not see a reason to raise Interest Rates haired hang on. Rates. Hang on. Breaking a record here. 17,029,right now at about 3 10 of one percent. It is a small gain today, but it is a big moment for those who watch that and say, look, we are at 17,000. He goes back to your point that mainstreet might look at this and say, this is great, but wall street is looking that at that and saying, have we turned the corner in the economy . It is a tough one. Still have gains to be achieved on the cyclical front . Do we continue to get labor without worrying the fed and pushing the fed into being less friendly in the markets. That is what Market Participants are trying to struggle with. Mainstreet is unambiguously good. We just need better wage growth to complement the number of jobs being created. Dont we need more Labor Participation . How do we get that . Scary number. The fact the labor Participation Rate is stuck so low, just over 62 , the lowest since the 70s, is a real issue. That will bring up the bigger question, which is, what is the National Rate in the economy . If it is six percent, it is a. Ompletely different outgrowth where do you think our natural rate of employment is . Less i worry that we may be closer to six percent. Weight has natural gone up and potential growth rate has gone down there that is due the fact that for the last years, congress has not done anything in terms of its governance responsibility. Does not look like, even talking to democrats and republicans this morning, it bes not look like there will any relief on washingtons side anytime soon. That is right. When you have a popularity reading of only 70 for congress, no one will take risks. They will just wait for the next election and try to get through them. We should not expect any major initiatives out of washington. This is all about the inside hearing of the private sector. It is going on, that is the good news. We needed to go on faster and be in nature. Ural just stay with me. I want to get to julie, who has been watching the markets and effect we have just woken through the tao of 17,000. It was inevitable, the way we have been creeping up in recent days. It is a record. The dow also. Now we are trading just above. There is always a debate of how significant it is limited to numbers and how not significant it is. If investors say is just another row number. Strategists and folks who put on computerized trade based on various levels in the market, it can have some significance. There is a psychological idea of, if we get to these numbers, does that try more retailer investors in for example. For that reason, it is a milestone. We have gone higher up in the dow and it has taken shorter amounts of time to get to each next thousand milestones. 17,000 has taken six months or so, from 6000. Were up about 4 10 of one percent. What is interesting is, as we are talking about the jobs of word and pushing stocks further up, the people appointed to Economic Growth as being that catalyst for stocks, it turns out at least for today theyre right. At least for today. It occurred to me as were watching stocks rise and we are thehing the good sentiment public is feeling about the jobs report, outside of the labor Participation Rate, the fact that wages are also stock stuck at small level gains, that is another troubling area because it Shows Companies are not yet ready to really higher. News is the Hourly Earnings went up slightly more to total earnings than people expected. It is still anemic. That is the issue if you look to the full recovery of the economy. Growth tote wage come back. Weyou mentioned earlier that have had essentially not just a great Economic Data and the first half and yet markets have continued to go up. Little fairy dust being sprinkled on the market. You points on ios report is investors continued to ignore the reality of the economy. Yes. The good news is we had a bit the fairy dust today in sense that ecb indicated very clearly they are willing to do all of theid governing council is behind it, which is a big statement. Secondly, the sweetest Swedish Central Bank has to do more. To force other Central Banks to know to do more. Worrisome issue is how much of a wedge you can have between fundamentals and market valuations. It goes back to what we were talking about earlier. We need the economy to heal fromr and we need help washington dc. Hang on for a moment. I want to bring in another guest we have standing by, the chairman of the President Council of economic advisers. I know you were just listening and on what is good on the jobs report but also the worries aspects of it. First up on the jobs data, jason, have we turned a corner in the economy . Are you ready to declare we has in fact turned a corner . Question the economy is strengthening. We do not want to place too much emphasis on any one month of dobbs growth. We now have five months in a low in a row. The first time we have done that since the late 1990s. The economy is strengthening. Twice the pace it was. We have a lot of challenges. I agree very much with many of those you have been talking about. It is why we have a lot more to do. We do have an economy that is really strengthening. Is the economy Strong Enough to absorb the impact of the fed stepping back, tightening, and eventually raising Interest Rates . I will not comment on the fed policy, but i think overall, the economy continues to be in a good position. Talk about our fiscal policy, last year, we created a lot of challenges, congress did, with the shutdown and the debt limit. That is all in better shape this year. That is one of the reasons we are poised to see continued strengthening in the economy. Ok. Lets talk about what is to be with the economy. Republicans say democrats have done practically nothing the to really create jobs many of the policies they say the u. S. Should be putting its money to work. There are certain policies they can be putting in place, observing the Keystone Pipeline to insulate create jobs or democrats have not done that. If i look at the data, icq doubts issues. One is the result of the great recession. We are not all the way there yet. We need to be doing things like investing in our infrastructure. Congress has an opportunity to and fall. Is summer secondly, wages, something that precedes the great recession, has been stagnant. That is also something where there is a real opportunity to raise the minimum wage and do things to help more workers in the economy. The question important for main street and wall street and policymakers, in terms of momentum, how much further do we have in terms of gains and cyclical unemployment and when do we get to the point where we are facing structural unemployment that is much harder to reduce . We certainly have gone a lot of the way there. The Unemployment Rate has fallen or percentage points. Longterm Unemployment Rate i was just talking about, that is about one percentage went above. Hat it was historically we would like to see that eliminated and coming down closer to what is historically even better. Youre absolutely right that a lot of our priority now is on medium and longterm growth on things like Immigration Reform, business tax reform, investments in infrastructure, education. Those are all about expanding the economys potential. We know the president met recently with several several groups of economists. Also just recently, he met yesterday with conservative economist. I know discussions were confidential. Please tell us about what the president heard from some of these economist . The president asked him the same exact question he asked a woman he met with in minnesota earlier this week. He asked families all around the what he can do it his executive authority and what he can do to mobilize and create jobs and expand Economic Growth. The president is pragmatic and he wants to both test his own ideas and try to find out whether he is missing anything and add to it hes already doing. Thank you so much. Chairman of the council of economic advisers. Mohammed stays with me as well as we watched the markets down 17 thousand a few moments ago, breaking through the number. We continue to reach a new high for the session. 17,051 is where the dow is. We will be back in two minutes. Time now for the global outlook. Through this halfhour on the jobs report, i want to turn to dtv, which has kept Interest Rates unchanged and at record lows. Here is what mario draghi had to say about the impact of left last months stimulus package. The stimulus package remains on the downside. Development ins the emerging market economies in the Global Financial markets may have the potential to fit to affect conditions negatively. Mohammed, what more clarification do you need from the ecb to figure out what their stimulateill be to the euro region . I am pretty sure they will do in terms of stimulating the economy, but after the summer. They will do more because of three factors. First, growth is anemic and the pmi numbers were disappointing. Second, they were they are worried about inflation being too low. And third, the Exchange Rate is too small. Once they have a target, they take it seriously. As these things persists over the summer, we should expect the ecb to do more after the summer. They will start signaling that. Drug he told us he is ready to do more. I was reading through your twitter feed. Ou are an avid tweeter what the central bank recently did with his own race is just an ismple of how difficult it for Central Banks around the world to navigate their own policies. Absolutely. I do not think the Swedish Central Bank wanted to cut its rate by 50 basis points, way more than what the market expected. I do not think you did that because it has got conditions in its property market. And yet, it had to because it is in an Economic Zone where the even moreoming relaxed in terms of Monetary Policy. Aat we are seeing is spillover effect of what is going on. It puts Central Banks around the world in a very difficult position. Tactical issues are very clear but inconsistent with Financial Stability issues. Is a big central bank that bet and it remains to be seen if it will be a good one or not. There are a lot of heavy issues out there. Overseas, what is happening as well as the world cup. Tweets youe of the sent out recently on the gains you are watching. I do not think you have missed a game. Been lucky, traveling in europe and the middle east. You get to see the games easier because it is late at night. It has been a great world cup. Class of has been so far. What can you say about the world cup and what it means about the World Economy . Lisicki thing about the world is you can increase competition and make life even better by having a level playing field. The reason why this is so enjoyable is because a lot of the players play in the same european leagues and therefore, whether youre coming from nigeria or algeria or the netherlands or england, you have the ability to compete at a high level. Country, thatyour raises the whole level of play or the world cup. That is great for those who get years. H this for four it is. All of us were rooting for the u. S. Team and they got the invite belgium. You are an international guy. Team are you rooting for . With the exception of one team, i would be happy to see any of the teams win. I like all the teams there. U. S. , a heartbreaking loss. I was watching it in a restaurant. The majority of people were cheering for the u. S. And they couldve won that game but they had a great world cup. To look back as this being a historical moment for u. S. Soccer. Will be watching the games continually. It has been ae, recordbreaking performance for espn at the world cup. The games on the network were the mostwatched mens matches ever in the u. S. Mbc president excited was the digital performance. I sat down with him yesterday. Our average Television Rating is up 39 despite the fact that is up that much, digital viewing has been through the roof. This is already the most streamed sporting event of all time. We are 70 beyond the so chelan bigs. More than double before this is over. More record brokers for espn. You can watch all of my interview monday right here starting at 8 00 a. M. Eastern time. We hit dallas 17,000 and were off tomorrow for the fourth of july weekend. Have a great weekend. We will see you monday. It is 56 past the hour, and that means Bloomberg Television is on the markets. 30 minutes into the trading day, lets look at stocks. The dow, 17,000. It looks like we are holding at ,hat level, above that level after the jobs report showed more growth in jobs last month than had been estimated. It looks like a lot of optimism. Joining me on this historic day. N the markets is mike reagan no better person to talk to me about this than you right now. You have written a lot about it and we have talked a lot about it erie it my favorite anecdote you wrote about, because it is sort of nebulous, were the strategists you spoke to, it was a big deal when i turn 50 and a big deal when i turned 60. If for no other reason than that human nature tells us the ground numbers are somehow important. We are are in that talking about it here and it will probably be in the front page of news websites tomorrow. It allows people who have not been paying this close of attention. And if you are underinvested, you think twice about it. Thing about it today is that it happened on the back of strong economic numbers. It would be a different story if it happened on weak economic. Umbers or on nothing, for that matter. A lot of small incremental increases we have seen day after on manyting records days, are really on smoke. It is not necessarily because there has been strong Economic Data on any given day. Right. This reinforces the whole case. I know you want to get wonky about it. There are a couple of interesting things about the dow. The dow, the grandfather of the mall, when they built them in the 1800s, that was the best way. They added two very highpriced stocks that have a big influence on the tao. Holding back the tao. Werentot earlier if we if it were not for the negative effects of those two heavy weighted stocks. It means the tao is looking kind of cheap compared to the s p 500, trading for less than 70 times reported earnings. More than 18 times reported earnings. It does not sound big, but that is the biggest spread in valuations between the two in four years. The tao is playing catchup. Investors,fessional broader index mortgage cap rated, one of the other favorite columns we had was about a chart put together that looked at, ok, if you look at the bull market and combined a bunch of different metrics, they looked at price to sales and combined them all together. Where are we in that rally versus today . We were in 1997 . About 1996. Right. The rally had four more years left in it. There is possibly still some room. Everyone come in retrospect, realizes what an incredible bowl that was. It is a fun comparison. I would put not i would not put that much stock, but for anyone who compares the two that is now and then, sort of the end of the conversation. Thank you so much. We appreciate it. Market makers is up next. Live from bloomberg headquarters in new york, this is market makers. Jobs report shocker employers in america hire more workers than expected and implement rate falls to the lowest level in almost six years. Wall street in the crosshairs the fbi is going after financial crimes of the same zeal it has for terrorists. We will hear from the bureaus point man. Will see who catches and when you fire up the charcoal this weekend