Biggest ever. Data was accessed on 76 million households and a 7 million small businesses. Hong kong prodemocracy demonstrators under attack at two protest sites. Hundreds of men tussled with protesters and removed barricades. That is a live shot of what is going on. Leaders say they will cancel planned talks with the they. T unless this has not been seen in hong kong. President obama puts the spotlight on jobs. He is set to meet with steelworkers following his speech in chicago, where he called attention to the economic recovery in the u. S. , especially in manufacturing. Manufacturing has added more than 700,000 new jobs. It is growing twice as fast as the rest of the economy. They are looking at bringing jobs back from china. What will the report tell us about the economy . Fromng us is our reporter bloomberg news. Peter coy. Ring in he is the Bloomberg Economics at it economics editor. You say a fall in the jobless rate could be bad news. It could be. A it happens because there is lot of tightness in the labor market, we do not get a big increase in the labor force and unemployments rainfall, we cannot handle the increase in and we will see upward pressure and wages. The ideal would be strong job growth. People are encouraged to find work. To tell the truth, the Unemployment Rate is high. The Unemployment Rate does not help the people unemployed for reasons out of their control. The president tried to assure americans the economy is doing better. Is he getting that message across. The white house has not been good at staying on message. We are a month out, this number will be important if it indicate something positive. , 80big problem for voters 83 say the economy is the problem. They feelt look like it in their paycheck. The big apples wages. That is what the voters feel. Wages is a huge point. You say there is a huge correlation to a rise in wages and the spending in this economy. Wages have gone up 2 . Under two. S a little if we get strong wage growth, it means two different things. We will start to see Interest Rates go up. You mentioned how the americans see the economy. Is that going to help republicans more . Not play a part for republicans. Many of them are in the house. In the senate races, if the democrats can make an argument that things are improving, it might help them hold of some of these. The challenge for the democrats is that the people who are feeling the worst about the economy and the people who have suffered the most in that their wages have not increased and gotten back to prerecession levels are indeed, democratic constituencies. They are minorities. The People Democrats need to come out. They are the people suffering the most in these economic times. Thank you for joining us. We appreciate it. While it may not feel like the economy is improving that much, stocks have told a different, brighter story. Except for these last few sessions. Michaud joins us. Before we talk about jobs, you disagree with peter in that you would like to see higher Interest Rates. You thing that could be a good thing. The Banking Industry i look at it from the lens of what is happening at the Banking Industry. A lot of good things happen in the Banking Industry. If they could get more spread income because the economy is Getting Better and Interest Rates are rising and going back to a more typical environment, that would be good for the Banking Industry. We see higher rates and we see at because the economy is growing and because the labor markets are tightening, that is a good thing. Perhaps the economy is catching up on the things the stock market has been telling us. Lowest in our lifetime. It is unusual. We want to get back to a point where savers can to save more and a more traditional level of rates. Are banks continuing to lend . Are they loosening up their lending at all . There is a lot of good news coming in the Third Quarter for banks. We will have the 19th consecutive quarter of improving credit quality, which i think is exceptional. You will have the mid and small banks there is a difference desk or that is all good news, but we have not have not have had Interest Rate earnings this period. It will begin for the economy. What about trading . That is a different story. We are looking for trading to be down for the biggest banks. Down about 5 , not 15 , where it has been. Better, but not robust. Still dragging along. It is. It is giving the other dynamics of the earnings a chance to kick in. I hear a lot from ceos and bankers that the credit markers are loosening and requirements are loosening and they are seeing more lending. Just yesterday, ben bernanke quote fromo read a what he said yesterday. Refinance andd to i was unsuccessful in doing so. Let me give you the bigger narrative. Was unhappy after the Global Financial crisis. I do it like a pendulum. The rules and regulations have gone so far that i believe it is beyond what is practical. When the formal fed chairman gets caught up in the rules being imposed in the industry, it suggests it is a another signal that we have to take a broader look at what is happening. That is my opinion. To work every day to make loans. That is the most profitable thing they can do. They dont not want to make loans. I think they would like to make him a loan, but there is a reason why it did not happen and we have to study why that happened. There are a lot of people who will speak up for him. You will be with us to talk about the jobs market. Moving and shaking, once the russias richest person, but he ran afoul of Vladimir Putin and spent a decade in prison. He says that gluten that putin is driving russia into a crisis. I have finished with business. I consider that i have achieved what i wanted to achieve, the plans that i had. Now, i can move on to the vick activity. I consider it civic activity, as i have before. Russia call it political activity. I do not object to that. If you think i am dealing in politics, you may do so. I spoke with mitt romney last week at a panel and he underscored the threat that russia poses. He says the greatest threat to america is a nuclear iran. The greatest adversary is a russia. Putin is attempting to rebuild the russian empire. We have more on my conversation with mitt romney in this hour. You can watch all of the interviews tonight. Coming up, we are about 15 minutes away from the september payment results. Have a cast of all stars to react to the job numbers. We will be speaking with Mohamed Elerian and a former head of the White House Council of economic advisers. As we await the september payroll report, there are sectors where hiring is hot. Ernst young announced it is adding staff big time. It will recruit 6500 experienced employees, up from two years ago. Is it seeing the demand for services and how does it find all of these qualified people. We hear about the skills gap in america. With me is the american managing partner at ernst young. Out ith us, tom mech tom michaud. Steve, lets start with you. I am amazed. A 50 increase in hiring in the last four years. You hear ceos speak about how different how difficult it is to operate in this environment and thousands of layoffs are happening. We are seeing a slow and steady improvement. For our business, we bowl we will be in our fourth year of growth. , taxour of our businesses and transactions are growing. We are helping these companies through their challenges and seeking opportunities. Are they hiring you because they are looking at outsourcing some of their services, they are turning some fulltime workers and two parttime . Is that part of the trend . I think some of that is happening. They are trying to be as efficient as possible. We can provide an array of services to help them do that. Sometimes they will lean more on the outside as efficiencies build. A number of employees plateaued in the firm was growing. Continuing to add talent and take market share. That is the case in my company. You have had the sales and trading businesses being difficult. Equity volumes are five years off their peak. They are getting laid off. They are not getting hired. Investment banking has been improving. Capital markets have rebounded. They have gotten valuations issuers issue equity again. You are seeing growth across the board. Where are they being hired . Up. Ur numbers are we will hire more than 15,000 people this year in the u. S. The experience market, we are i. T. Skills, people who have experience in we see the mn day market picking up. The i. T. Space ranges across clouds, digital, big data. These skills are not easy to find. Our wages are going up. These are salaried, wellpaid, fulltime jobs. We are doing Everything Possible to find talent. Find foryees to us. Are your wages going up . We see it at the entry level. That is really good for the economy. We see it more in the entry level than at the senior level. Why is that . The street needs of some of those skill sets. It will change quickly. These are a lot of attractive job openings. We are seeing salaries starting to increase in the entrylevel position. Youhat would you say what see now, versus what you saw a year ago. We are only where seeing 2 wage growth. There have been many years of no change. There have been many years of no change. It over a longer period of time, the growth rate would be slower. Thank you for your take on the jobs market. We are less than 10 minutes away from the september payrolls report. We are going to talk with the economists and alan krueger will be joining us when the numbers break. Stay in the loop. You are watching luke paying. Good morning. At our topook headlines. An american working for nbc news has an diagnosed with ebola. He will be flown to the u. S. For treatment. The crew has no symptoms or warning signs and are being monitored. The Treasury Department cracks down on tax aversions and appears to be working. A 2. 7 billion merger agreement was canceled. They are in talks of selling themselves to activists. Ubs could be facing a fine. That is according to a newspaper work. By the most since may. Equity futures right now are slightly higher. Healthy year. Be a sign traders are expecting upside in this, especially given the revision after last month that really undershot all economist estimates. Moments away from the jobs report. No discussion of jobs would be complete without talking about income and quality income and inequality. 10 has seenhe top gain while the bottom 90 , the yellow bar saw an erosion of in the last several decades. This shows you what has happened during the economic expansions in the United States since world war two. You can see the top 10 is seen bigger and bigger gains. Alan krueger joins us to discuss this. Pounding theeen drum on this. It is probably the reason why americans do not buy into what the president said. This is a problem starting in the late 1970s, we saw the Income Distribution falling apart. There are steps we can take which would help to ameliorate the problem. Like what . Waving raising the minimum wage is an obvious step. We just saw that. Most workers are not federal contractors. That is one step. I am more aid that any quality will create an inequality trap. The gap has been growing. Mean more any quality. We need to provide more opportunities from lesser advantaged families. The Affordable Care act is happening. Someone is in america and before they will stay. That is the fear i have and that will be the pattern. Back to the jobs report and this data. The fed is looking out wages, the jobs market, the asset markets. What is on Janet Yellens dashboard right now. She is looking at the growth,ment rate, wage i would highlight a few other issues. What is happening to the longterm unemployed. Leaving the labor force . Are people out of the labor force coming back in . When they are out, they tend not to come back in, even though the economy picks up. At whatend she looks happens to the labor share of national income. Also, on wages, i would focus on production. Hang on with me. We are moments away from the september jobs report. Mike mckee will join in. Peter cook at the Labor Department. 248,000 jobs added last month. The Unemployment Rate drops down to 5. 9 . Rate sinkspation down as well as well. Not quite as good as it first appears. Number, of the headline better than our survey suggested. Jobs added in the month of september. To 243,000. Up threemonth average, 224,000. The prior 12 months, 213,000 jobs per month. The household survey, the lowest level we have seen for the oil rates since july of 2008. The total number of unemployed fell by. The labor force felt by 97,000. That left the Participation Rate ticking down just slightly. It drops to 11. 8 . The lowest level we have seen since september. Little changed from the prior month. Discouragedof workers, 690,000. Who was hiring in the month . Retail gaining 35,000. A lot of that having to do with the returns of the Market Basket workers. We had construction up 16,000. Manufacturing gaining 4000. Mining gaining 9000. Workhours was the average week. Level wehe highest have seen since may of 2008. There was an effort to get more people on the job. This may be the area that disappoints the most. No change month over month. Perhaps some questions about wages Going Forward. Whatreport better than they had expected. It definitely better. Thank you. Hang on. There was a lot of buying on the rumor and selling on the news. You saw equity futures ticked down a little bit. You have more how the futures are trading. They have gone. By 7 10 oftures up 1 before the jobs for work a lot. Seeing selling in the treasury, so the 10 year yield has moved up as well. The dollar was stronger before the working out. It continues to extend its strength against the yen. Versus oneakening dollar. Certainly reversing some of the moves from the previous day. This is going to focus on the fed and where they go with Interest Rate. Wages, they are disappointing. This is a strange report. Janet yellen has to make the ise that the labor market not good enough to raise Interest Rates. The other things on her dashboard are not good in terms of labor force. Participation rate goes down. Hourly earnings for the category that alan was talking about, production work falls. The numbers on her dashboard are not better then they were. How do you explain that in the context of do we want to wait to get the labor market stronger . It will be a dilemma Going Forward and it will be hard for wall street to square what she is saying and other members of the dovish camp are saying with what they are seeing in the economy. If we are creating this many jobs in the Unemployment Rate is raises, why arent rising . What is going on . This is a solid report. Mike is right. The one statistic that did not fit in is what happened to wage growth. I think we will see that edging. Own businesses have been reluctant to raise wages. They feel more pressure to do it. There is no better time to raise the minimum wage. Government increased the minimum wage, so there is congress could do today that would help this. With job growth over 200,000, there is that much risk to unemployment. Jobless rate has been steadily falling. Sixyear lows. We are creating 200,000 jobs are more a month. Something a seeing little bit different . Ims surprised. Workers wages, up 2. 5 . Now it is 2. 3 . The employment cost index is our best indicator of wage pressures. Not only wages, but is what it but what is happening to fringe benefits. We will get another reading on that. That will be informative. Where in an environment labor does not have bargaining power. The other thing i would add, participation is moving the way i predicted three years ago. I thought we would see continued decline in the Labor Force Participation because the population is getting older and many of the unemployed exit the labor force and theres not a tendency for those to come back, even when things pick up. Talk to me about how this is going to be used today. Used by the republicans to speak about their own tactics, their own strategy on creating jobs. Are they going to how are they going to use a report like this, or can they . Republicanshe fact are opposed to raising the minimum wage, they will fact that there are new wage gains and the fact that Participation Rates drop down. People are leaving the labor force. This is so close to the election in the last jobs report. It is hard to argue that it will make that much difference on election day, but you can have them at that sees on the top the economy has started to turn the corner. Republicanse telling a similar story that the economy is still hurting, especially for people who do not have a job and are not seeing their wages go up. Peter was talking about the fact that people were retiring. The longterm unemployed you write about were probably people who made more money than new entrance to the labor force. They will be better paid people. Is that why we are not seeing average earnings go up . I think that is contributing. We are moving more and more towards people at the peak of their earnings. It is going to be hard for republicans to say unemployment is coming down when we have been creating over 200,000 jobs a month this year. It will sound like they are rooting against the economy. Unemployment comes down for two reasons. Some of the unemployed are finding jobs. More people are retiring. That is a positive thing. Have this natural response that the longterm unemployed are getting discouraged. They dont see congress doing much to help them. They are not doing much to encourage employers to hire them. That is a natural progression of the economy at this point. The picture has changed in the markets as we futures report holding on to gains. The dollar continuing to strengthen. Was looking through some analyst notes. Should do well following the jobs report, especially given the fact the ecb launched qe in one form or another. He also mentioned that this report should look good to the fed. We get to new data on monday. How does that differ from what the Labor Department tells us . I am not sure what you mean by fed employment data. I do not have the details on it per se, but when she looks at the metrics of jobs that she takes into account, is one source of more significant than another . Tends to send, it different signals, the household and the Establishment Survey showed strong job growth. That gets the most weight. Onould put weight Unemployment Insurance claims to learn how the job market is doing. Those look better and better. Everything paints a picture of an improving job market. The missing piece has been wage growth. Should welcome wage growth. It would be a healthy development. I think there are things that businesses can do and that congress could do to speed up wage growth. Thank you for joining us. Scarlet fu, our chief markets correspondent and peter cook, thank you all of you for joining me. 248,000 jobs created. More with Mohamed Elerian. We will be back with more. We are digesting the payrolls reports. Sign ofre looking for a future jobs creation, perhaps you look no further than this company. It is known for burritos and tacos. It expands into other foods, which means it will hire more workers. Of theassar sampled some latest offerings. She joins us with more. Where are they seeking growth and where are they hiring . We have job creation. This is a company that is expanding their model. Make thoselling to expenditures, expand the brand into other avenues. Fahrenheit nine builders, contractors, and workers to staff for restaurants. East asianinto south food and now it is pizza. Up, working with two very well known restaurant doors. They open their second pizzeria in denver. I caught up with the founder of chipotle. He said even though they are doing pizza, the focus is burritos and tacos. There is a lot of opportunity which a poll a. Canada, europe, perhaps beyond. That is the number one focus. He next focus is opportunity to do that without distraction. You are opening up the second one. Obviously a lot of investments go in. Have you made back the investments on the first one . We are not going to talk about that. Eventually we will have to disclose it, but we do not have to yet. How many pizzeria localities can you open . The answer is how what we can do a creating the experience, how well we create the opportunity to open more. Judging by how the first has opened and the excitement of the second one, we are doing very well. It is growing faster than two elated. Are you looking outside of colorado . We have two new markets we are looking at. Where heed to get might be opening, but he would not say. He would not commit to what investors said that pizza to be a bigger deal. We will have to see what happens. I cannot imagine that. I tried the pizza. It was good, and not expensive. Did he mention anything about expanding his Business Model . He says he does not really pursue other ideas, but they are thinking about considering other types of cuisines. The guys they worked with, their ideas, he talked about a greek restaurant. We will see if Something Like that comes down the road, but they do think about expanding the brand. Kudos to them. There are a lot of copycat out there. We have more. Stay for full coverage of the jobs report. A look at the top tech stories. Radioshack has gotten a lifeline. B chain has a deal to refinance. It is so they can restock for the holidays. The money comes from a group , trying to stave off bankruptcy. Is investing 250 million in legendary entertainment. Softbank made quadruple the investment by 2018. The deal gives softbank deal for content for the networks it controls. Much more, including our conversation with the ceo of pimco, Mohamed Elerian. The first time he will be appearing after bill gross left. Starting monday, taking stock moves to 5 30 p. M. Eastern time. Companies you want to know more about starting a 5 30 p. M. Eastern time. A 56 minutes past the hour. We are on the markets. Markets on the move after the labor report came in better than expected. Where we wereg on before the labor report. Did this change the outlook for investors . We will talk about all of that in the next hour. We are on the markets again in 30 minutes. Mohamed elerian will be joining us. About that and he will have plenty to say about job data. Minutes awayut 30 from the opening bell. Futures rising after the jobs report that indicate stocks will open higher. Employers adding more jobs than expected. It is one of the biggest Cyber Attacks of all time. Jpmorgan says hackers accessed data from 76 million households some troubling developments there. Bp said a ruling was based on evidence a judge had said he would not consider. Back to our top story, the economy adding to her 48 thousand jobs last month. Means, mikewhat it mckee and peter cook. Mike, lets start with you. This is an interesting and strange report. It is strange, good news on the top line. The Unemployment Rate falls below 6 . The fed forecast for full employment is somewhere around 5. 5. We are getting close. Janet yellen should be thrilled. Wall street should move up the date of a fed tightening. The metric that she keeps harping on unchanged a 2 increase. We are not getting raises and in that suggests the labor market is not tightening and she does not want to raise Interest Rates. How do she explained that to the market and the American People . Had is the president explain that . We heard him outlining all of the major improvements in the economy and yet americans continue to feel not any better than they were a few years ago. That is the top issue for them going into Midterm Elections. His dashboard is looking like Janet Yellens dashboard. This report and compasses the president said yesterday at northwestern university. By almost every possible measure, the u. S. Economy is doing better since he took office. The headline number for jobs, both are good. Both are improving. Deeper into this report, you see the lack of wage gains. That is why americans might be heading to the polls and do not feel as good about the u. S. Economy. He and janet yellen would have a lot to talk about as they sit down at the lunch table the next few days. Spots in the jobs report or what . It was healthy across the board. Services with 81,000 jobs. A lot of some of the noise from the work stoppage with the Market Basket grocery chain. We had solid gains across the board. Health care up. Stands out in terms of one sector driving the economy. The revisions were good. There are questions inside about wages and the road Going Forward and whether it is enough to get the fed to move at this point, whether janet yellen feels recovery this is a that is gaining traction in the labor market. She can pull the trigger on the Interest Rates. Thank you. For more reaction on the jobs data, i want to bring in Mohamed Elerian. Great to see you this morning. You went through the jobs report yourself. How do you thing the fed is going to interpret this . Janet yellense schedule on Interest Rates . I do not think so. This time around, it is the headline numbers that are encouraging. You are looking at jobs that have taken it to 224,000. That is good. Hand, is less , use unemployment up 20 . A mixed report. Wage growth is not there. You have any further clarity or explanation as to why, with the labor market tightening, we have not seen wage growth escape at all . This is a different economy. People are starting to realize it is a different economy. In addition, steps that should be taken are not being taken. Problempart of a bigger that we do not have a holistic policy response because of the polarization of congress. A we have seen more market volatility. Continue to get numbers like this, where it shows a mixed picture, that the volatility will only increase . Think it will increase, but for a different reason. A world in which the main policy makers have gone from a multispeed world where they were doing the same thing to a multitrack world. The result is that currency is on the move. Moved sharply, they transmit volatility to other markets. That is what i think we will see more of looking forward. Seen a lot of volatility at your former firm, pimco. This is the first time we are speaking. Bill gross left a few weeks ago. Were you shocked with him leaving pimco . I was surprised what i was not surprised about is that they were able to draw any deep bench of talented people who have established track records, who have industry awards and have been part of the process managing more than 80 of the assets at pimco. His departure, the fact that it happened and how it happened was a surprise, but what was not a surprise was the bench and a strong team led by dan iversen. They are superb. Him and hisabout team, we spoke with bill powers, someone you know. This is what he said about the bench at pimco. The cast of stars include many fixed income managers of the year. Mark was a fixed income manager of the year. ,ou have a number of others Paul Macauley is still at the shop. I do not see this as a mac that and a from credit widening event. I would not make that conclusion. Would you agree . If i started lifting specialist and you people, we would see for the next two hours. For me give you one story that speaks of this. The head of the mortgage desk retired. Morningstarervices, the following. If he had been at any other firm , this would have gone after retiring. He was at pimco and he was surrounded by other star investors. That is why it is that is. It is a very deep bench very talented. It has many a players, including you when you are running the firm. Do you have any interest in going back to pimco to run as ceo, given that bill gross is gone . What i amppy with doing. I have this portfolio of activity and i get to spend a lot more time with my daughter, something i really wanted to do. That is my main focus. I know you spent the summer daughter. With your stay with me. We have more on the economy. Austen goolsbee is joining us in a few minutes. The most see jobs report is the latest one before the Midterm Election were democrats will fight to save their senate leadership. President obama touted his speech. Leadership at a are more job openings than any time since 2001. All told, the United States has put more people back to work ,hen youre up then europe japan, and every other advanced economy combined. Joining us for more as austin. He is a former chair of the council of economic it wisers. Of economic advisers. He was at the president s speech yesterday. Also with us is Mohamed Elerian. Austin, to you, the president major points on the milestones during his presidency in the economy. Americans are not feeling it. Nine out of 10 americans say the economy is their biggest concern going into the elections. What is missing . Thank you for having me back. I was at that speech. The president addressed that. Said there are a lot of positives, but a lot of people dont feel like it has been going a strong. I think there are two reasons for that. The first is if you look at how wide spread are the gains, they have not been that widespread. The second is, a lot of research tend to vote and interpret the economy based on what they read in the media, not what is in their specific pocketbooks. If you go back to 1992, the data shows 1992 was a boom year. The election of 1992 was about the recession. Some of the gains are more concentrated. Do you buy that . Look at the wage gains. Isnt it about the pocketbook and that is why americans do not feel as good . Three things to happen for most americans to feel well. , people beingated lifted out of longterm unemployment and wages going up. These three things are not happening simultaneously. Until they happen simultaneously, people will feel the economy is worse than it is. Part of that is because inequality goes up. Ask, if i may, a simple question. And theof the report labor market in general as a weight between things getting , but also persistent weaknesses in the structure of the labor market that risk getting deeply indebted and becoming bigger problems. That a correct characterization, and what does washington need to do to change that . Have talked about this many times. As basic overview, that is a good description. The of the weakest parts of job market remained the longterm unemployed, especially if you look at groups that do not have the same education based. We saw the Unemployment Rate for College Graduates fell to 2. 9 . Are in the top half of the skill distribution, things have improved a lot. If you look at the other side of that distribution, things have not improved a lot. Out ofton has got to get the shortterm mindset where it is going to get into a fight with each other like the east german judge at the olympics. Two before iou a even saw what your team was. We have to put a focus on the longterm. Going to wakeare up in 10 years and say why didnt we do anything about this. We knew it was coming down the pipe. I read an opinion the other day. Yes we have that had gridlock and parties fighting each other in washington, but if the gop win the Senate Majority this time around, it will be a referendum on the economy area is that is so, may be the republicans, knowing they have this referendum in this mandate from the Midterm Election, they are going to govern more. We could see a more united washington if they took the senate. I hope you are right, but i do not think that is true. Have done absolutely zero the last two years and that rate will be cut in half if the republicans win in the senate. How much credit should the president get for the turnaround . In the sense that we are doing a lot that are than the vast majority of other western economies, that is important. Everybody was hit with the shot. It. Was hit the most because was most dependent on finance. The u. S. Has bounced back a lot. I give the president and austin and others quite a bit of credit. Is stillhink it disappointing, people did not realize this was not cyclical. There was something deeper. There were elements that were structural and secular and that rate wired a different mindset. Recognitionthe happen, it was too late because congress had become too polarized. Stay with me. You will stay with me through the opening bell. Coming up, we are less than 15 minutes away less than 10 minutes away from the opening bell. Stocks will open higher. We will be back. We have been staying on top of the story. The prodemocracy demonstrations happening right now. They have come under attack at two protest sites. We will continue to monitor the situation and bring you headlines as soon as we get them. The opening bell is next. Welcome back. You are loop hang. Bloomberg television is on the markets. It looks like a good one. The markets. 5. 9 is where the jobless rates rest at a six year low. We are market we are on the markets again. Lets count down to the top 10. Lets start with number 10. Bp. A reconsidering of a ruling that found them negligent for the 2010 gulf of mexico oil spill. Bp says the ruling was based on evidence a judge said he would not consider. Facebook, they plan to keep experimenting with how its service affects users behavior. Is giving researchers clear guidelines to follow when studying sensitive topics. American airlines. They want to take over delta pot flight rights to tokyo. It said the smaller rival is not making the best use of access to the airport. If they win the spot, it would offer yearround flights between l. A. Bob iger he is not going anywhere anytime soon. He will stay at the helm for two more years and will not retire. Replace could replace tiger. Iger. Lace investors love him. Number six, galax pharmaceuticals. They canceled a two point 7 billion merger agreement, citing tougher rules. To sell in talks themselves to. Hard to keep it straight. Number five, linn energy. Selling 2. 3 billion dollars of acreage and facilities in texas and oklahoma in two separate deals. Ubs. They could be hit with a fine. Ubs shares taking a hit. Mobil, one of the First Companies to address a Business Impact of the ebola outbreak. Rex tillerson announcing exxon to dong to delay plans offshore drilling in some places. Number two, radioshack. Willlectronics train refan will refinance. The my comes from a group headed. Y a hedge fund number one, jpmorgan. It was originally weighted back we will dive deeper into the data breach in a few moments. It is scary. You hear more about these attacks. They got it through an employee password. Stocks are open. Stocks are open and we are back with our owl star guests. Our allstar guests. Have beene markets rattled. We had this fiveyear old run. Markets have been rattled by what is going on internationally. Younted to tell both of that just last week i spoke with mitt romney. At an event in copenhagen, where we talked on a panel. I want to read for you one thing he said about americans and their view on geopolitics. He said, americans are concerned about a couple of things. One, the austan, i want to turn to you on that. Did the president set expectations and tell the American Public that everything was going to be better overseas . Russia was ok, our relations with china were going to improve. Did he set those expectations too high . President know if the was the one who set the expectations. I think there was a lot of expectation. In 2008 the president comes in, we are in the midst of a very difficult economic and financial crisis. There was the general hope that the Foreign Policy would get off the table so we couldnt trust the domestic issue. Happened. Hat is what we have been a dressing to issues and now the rest of the world is coming back to haunt us. If there is a whole lot you can do to anticipate soviet action in inaine or the rise of isil the middle east. I think people are nervous about geopolitics in the world for good reason. Situationsome nasty and if you add on fears in china and in europe you can see why the markets have been reacting the way they have. Do you believe the u. S. Took its eye off the ball on many of the situations and we now are paying the price for that . Talking about on the Foreign Relations side but on the economy and the market. We are not paying the price and terms of the economy in the market. The reason why is people are worried. Markets tend to shake off geopolitical issues until they get to a tipping point. Thetipping point impacting economy and corporate earnings. It has happened for europe but not the u. S. What the u. S. Markets like is the goldilocks economy. The slow level equilibrium that means that the fed remains engaged. That has worked well for the markets and the markets will continue to that on that theme until they get overwhelming evidence that they should look at somewhere else. Rush affect the european earnings on the margins. We have not seen a big effect on oil at all. Is the fact that investors are citing those concerns more a reflection of where we are in the markets then what is happening geopolitically . Are we at a fragile point in the market . Look at the amount of risk taping that has happened risktaking that has happened there is a gap. Is accounted for by two things, centralbank support, and a lot of cash that is being put to work, including Corporate Cash being put to work in the marketplace. People are nervous because they see the fundamentals do not yet validate crisis. In thatill remain situation until either and peoples come up feel less nervous or until something happens to cause prices to come down. I would just add one note of in the viewpoint that says reason markets are up is predominantly because of easy money from the fed. Corporate profits are at record levels of shares for the economy. To at least, to a significant degree, rationalize the entire prices. Price ratios are not out of whack. Some hitsrt getting to earnings coming from geopolitics or others then i think you would see some negative reaction. Areont you think profits due to fed policy . If they are increasing , that is thenings best Case Scenario for fed policy. Do you have a response for that . He and i could have a very long discussion. I can just point to what happened in inequality. Not just inequality of income and wealth but inequality of opportunity. How obtainable is this policy regime . I want to bring in commodities here. You mentioned oil prices. If you look at the crp index over the past 10 months it has made this big round trip. Is because of slowing global demand. The stronger u. S. Dollar has played into it. Onould love to get your take what the fed thinks about the stronger dollar. What point does the fed start to factor in the slowdown incomplete profitability . In Company Profitability . The dollar appreciates too much and it will impact our competitiveness. If you look at history, very sharp dollar moves tend to break things. Tends tothe behavior be cyclical. If this move continues and is as rapid Going Forward as it has been in the last few months, then i think they will started start getting worried. Is at the frothy ness of some parts of the market . Is it the economy . The things that will keep you up and night are china and europe and the possibility that things could seriously go wrong. Mohammed and i have talked many times about europe not addressing its fundamental growth crisis and the actions they are taking. I still dont think that is going to work and i dont think we are i think we are in for some dark news. You and i have talked football so many times on air and by email. And a you are a jets fan great predict of things to come. Do you think smith should go . I dont know. And i geth hopes destroyed emotionally. Maybe it is a good thing. What about you . I am a cubs fan. I dont want to hear any of this. Thank you so much. Thank you to scarlet fu and julie hyman. We will have reaction to todays better than estimated job report. John perez will give us the white houses take. Tom perez will give us the white houses take. The u. S. Economy added 240 8000 jobs last month. Well above the 215,000. Perez says the country faces two major challenges, the stagnation in wage growth and the increase in longterm unemployed workers. You can see the longterm unemployment alone is at historically high levels. Reason whyt of the americans dont feel they are participating in an economic recovery. Secretary perez joins us from the Labor Department. Good morning. I redecorate i reiterate again that americans are still worried about the economy. Is there a top concern . What thehis report and president said yesterday, why isnt the government giving a better message or a sharper message that we are in recovery . Shop is another another solid jobs report showing the economy is moving in the right direction. The United States is producing more jobs in japan, europe, and every a vance every advanced economy combined. It has been a long time since there has been an Unemployment Rate that began with a five as nes. Ed to eights and ninth the Unemployment Rate for people with a College Degree is 2. 9 right now. People who rate for have less than a College Degree dipped at a higher level than folks with a College Degree. Across every sector and skill gettingre people are back to work. The poverty rate last year had the largest drop of any year since 1966. That is simply because more people are finding work. You talked about wages. That is a major order of unfinished business. Place the minimum wage executive order this week. On a republican side it would say there are bills that are stuck in a Democratic Majority Senate because they havent been able to put together that job growth. Reforming a legal system, reforming a regulatory system, what do you say to that . Laughable. If you look at comprehensive immigration reform, that would grow the economy. Its stuck because boehner will not pick it up for a vote. The majority of house representatives support minimum wage. It gives american a raise. A longterm transportation infrastructure bill. We are living monthtomonth on transportation infrastructure. Everybody is investing in longterm infrastructure projects. You have to invest in infrastructure. The president has put forth what has historically been a bipartisan agenda. Its plain and simple. The folks in the house on the republican side, they do not want to grow the economy fast. The president moved immigration for Midterm Elections. Bille president wants a that the house of representatives will pass. There is no substitute for immigratione reform. Leader boehner has made it clear that he is not going to allow that bill to come up for a vote. There is no substitute for a bill that would be comprehensive. Talk to the u. S. Chamber about comprehensive immigration reforms, that is one of their top priorities. Secretary perez, speaking about jobs i will ask you about this speculation in the media that you may be switching jobs and becoming the next attorney general. Are you interested . Is helpingight now to grow the economy. We are making progress but we have a lot more work to do. I speak to people every day, some of whom got their jobs back and some people are struggling to get their jobs back. I want to make sure i continued to focus 100 on helping him. Helping them. I hope people get access to the middle class. Thank you for joining us this morning. We will have much more in just a few moments. Jpmorgan has outlined the scope of a previously undisclosed data breach. Bloombergs Michael Reilly joins us now with more on the story. He and his team were first to report this hack in august. Do we have any updated numbers . Is this the worst of it or is this more to come . This is the extent of what jpmorgan had to report. The things they do have to is stuffed of Customer Data names, email addresses, birthdays, things like that. What they do not have to report is what these hackers may have gotten in terms of corporate data, algorithms, source code. We dont know if this is the extent of the attack. We do know there is a huge amount of information. Every singleabout account this bank has in the u. S. Plus some overseas. Is this isolated . In terms of these particular reports there are jpmorgan is not the only bank that has been hit. Iner banks could have been europe or they could not have been disclosed yet. It is unusual for hackers to take one target. We will have to wait and see. Mike riley on jpmorgan that does it for today on in the loop. We will talk with intermedias managing partner. Networkormer amd executive weighs in on netflixs newest announced a deal. It is 56 past the hour. Bloomberg televisions on the markets. We are 30 minutes into the start of the u. S. Trading day. At goodies are making a robust move to the upside. Gaining 15 points. Down industrials up by 145 points. The nasdaq gaining 9 10 of 1 . Down by almost 1 after the selloff earlier in the week. We did have a better than expected september jobs report. An estimate of 215,000. The jobless rate also chopped below 6 dropped below 6 . The yield on the 10 year goes up to 2. 45 . And the weakening dollar yen creeping back towards that 110 level. For more on the reaction to todays job report and what it could mean for fed policy i am joined by david. Your jobs on the thoughts report on the job report. I think the Market Reaction is the proper one. I think it is good terms of equity prices. I think it is a tricky number as it pertains to fed policy and the of and the ability for the fed to manage policy Going Forward. I think higher equity prices is the reaction. When janet yellen looks at all this and combines that with the jobless rate coming down growth nothat wage showing signs of coming through, what is her next move . , the fed is going to have to is going the fed to have to normalize rates. 6. 1 . E it below the that is an accelerating problem the fed will have to deal with and get in front of. An even labor growth notwithstanding. The fed needs to stay in front of it. I think the fed is worried to some degree. The fed is worried that the market is worried the fed is not worried enough. Saw fromms of what we the European Central bank, mario draghi not quantifying how much they are going to buy assetbacked securities and going to the cliff in terms of quantitative easing. Is this central bank doing in london are trying to debate what he should or shouldnt do. You get one message from the ecb, one message from the fed, and they say is Monetary Policy really global . They are on trip they are on different trajectories. It does mean that people continue to look at treasuries as the more attractive investment. No doubt. Theith treasuries being preferred investment compared to european debt, what are your projections for what investors should do for the rest of this year into 2015 . I think investors should focus on sustainable growth. Think they should focus on the fed ultimately normalizing rates, which is good for the longer end of the curve. Long bonds come along equities, and stay away from anywhere that is impacted by shorter term Interest Rates. David robin joining us prehe is the interestrate strategist. We are on the market in 30 minutes. Market makers bang is up next. Market makers is up next. This is Market Makers with Erik Schatzker and stephanie ruhle. The Unemployment Rate finally drops below 6 . When our paychecks going to get bigger though . He is working on the railroad. On track to who is