President obama and Angela Merkel. Peter cook and Michael Mckee examine the april employment report. It we begin with an emergency when Council Meeting on the crisis in ukraine. At the United Nations today, it started getting really personal. Words were flying and we heard the french ambassador to the when referring to russia as a pyromaniac firefighter. He calls the ambassador and amateur james bond who drinks vodka. Were very upset. There was the russians who called for this meeting. Was because of the hiring firing down of two helicopters with ukrainian troops in them. Russians had said that any action by the government against the prorussian separatists is a declaration and escalation that might prompt russia to bring in peacekeeping troops. We had the russians making their point of view clear and we saw and britishench ambassadors each responding very strongly saying there is no way that the separate test separatists are doing what theyre doing without support from the russians. The meeting we had the u. N. Secretarygeneral going back to kiev next week and calling for the release of the monitors. What is the next step for the United States . We have a sense at the white lawn on the rose garden when we heard president obama and Angela Merkel talking about may 25. That key date when ukraine this post about in its democratic election. Eu will bed the backing those elections and of russia does not allow them to go forward or somehow interferes with them, new sanctions will be coming. You heard obama trying to give some word of reassurance to Energy Markets and Energy Companies by saying that cutting off pipeline from russia to notpe entirely is realistic. We dont expect that to happen, but we do expect more sanctions coming. Is military action a worstcase option . Has not been entirely taken up the table. We have been hearing about nonlethal aid. I think at this point the u. S. Administration in europe and europe dont have a specific plan b. Theyre counting on sanctions to eventually raise the cost so much for putin that he is forced to back down. Are notpoint, they thinking of any military action unless a nato ally, poland or one of the Baltic States is attacked. Otherwise, they cant act in ukraine because not a nato state. Nato is a defensive alliance between lansing military action. But some aid in the cards. Thank you. That u. N. Meeting came as president obama and the german chancellor met at the white house. The two leaders warned russia that they are ready to impose more sanctions if russia continues on its current path. Phil mattingly has more on todays meeting. Good afternoon. Good afternoon. Chancellor merkel just drove out of the white house after more than four hours here meeting with white house officials. The Obama Administration got what they wanted publicly. A commitment that should sanctions and to expand, the germans would be with them. Both parties acknowledged that the best Case Scenario would be for these sanctions to serve as a threat. Listen to what obama had to say. The goal is not to punish russia. The goal is to give them an incentive to choose the better course. Resolve these issues diplomatically. We are united on that front. Obviously come unite on that front. The question of what sanctions would actually look like. His experts are still working on that structure. Which haselationship grown cold in the wake of the nsa disclosures, at least a positive public statements that. We had heard earlier on in this crisis, Angela Merkel implied that president putin was being delusional. That he did not understand the extent of the market and condemnation on russia. Make them an international riot. International pariah. She declined to repeat the exec statement. She was asked about it. She made clear that she still is uncertain what the direction or what the calculation is t. Angela merkel has a closer relationship with the russian leader than anybody that the white house deals with on a regular basis. Shes talking to him more than once a week by phone since this crisis darted. Shes a key liaison. The fact that she cant quite get a grasp on where the russian leader wants to take things remains problematic. Phil mattingly joining us this afternoon. Thank you. Thisther big story on friday, the job creation engine kicked into high gear. U. S. Employers boosted payrolls in april by the most in two years. The jobless rate plunged to the lowest level since the collapse of lehman brothers. Employment gain in with the biggest since january of 2012. Dropped to six point three percent. The lowest since september of 2008. But get some analysis. We have peter cook standing by. And Michael Mckee. Thanks. We have a tale of two jobs reports. One index shows job creation and the other, job losses. Break this down for us. The Establishment Survey which creates rates businesses divided the good news. The Household Survey from which we derive the on implement rate paints a different picture. 800,000 people dropped out of the labor force, pushing down that Unemployment Rate. Net job loss during the month. The Household Survey says 73,000 jobs lost. There is a real dichotomy there somesuggests that there is worry about how strong this recovery actually is. Maybe a bit of a weather snapback. But not a real acceleration into the spring. There is a big difference between quantity of jobs and quality of jobs. How my todays numbers impact the minimum wage debate on capitol hill . The president picked up on it today. He highlighted these numbers and called it we heard that message from the white house today. It supports their argument that there needs to be a higher minimum wage in this country. Going to change the debate here in washington for republicans are adamantly opposed to that. We sell that break down yesterday in terms of the support for it in the senate. This report is not going to change that but it will add to dynamic. Ical forecast the fed how is this going to play into that . What will janet yellen be analyzing now . From thehifting jobless rate to fighting to bring up the inflation rate. If we had another month like this on the unemployment side, we would be at what janet yellen would be call full employment. Somewhere between 5. 5 six percent. Theyre looking at inflation as a major power much stack there is in the labor market and the fact that we saw no gain at all in hourly earnings, they fall back a little bit, is worrisome to me because it not only suggests that we still have this Inflationary Forces at work, we are not seeing the kind of widespread prosperity out of these job gains that would lead you to believe the economy would excel rate. Were talking about a fan who basically is now not keeping to that threshold. That unemployment threshold. It out the window. Imagine if they were Still Holding onto the idea that they would begin raising rates right now. They are nowhere close to that. They are on hold. Theyre on automatic pilot unless we get something really as far as ending qe. Still on track for some point next year raising Interest Rates or at least talking about it. It will look past the report and wait to get Additional Data as the year goes on. We are always reminded of the Labor Force Participation rate. Fall. Umber continues to some people are becoming discouraged about their job prospects that they have stopped looking for work. Did the white house acknowledged this is a problem . They see that number and the e press releases from republicans. As to whatbate still is really driving that. How much of this is baby boomers retiring. Its a problem for the white house to try to explain that away. At the same time, theyre thatng at headline numbers bode well for them. Heading into this Midterm Election year for Congressional Democrats who were worried about what would be happening with the economy, they see more numbers like this heading in november, they will feel a lot better about their election chances. The fact we are talking about unemployment in the five percent fede is a concern for the to deal with but it is great news for the white house. If we could continue on that front, the Labor Force Participation rate, where is it right now . This past month to 62. 8 . The lowest since the 1970s. Thats a concern. If there has been a debate in the Academic Community about whether this is all discouraged workers or all people at in the baby boomer generation retiring. Probably a bit of both. What you did see is the number of people who say they are discouraged workers. That fell during the month. That is good news. Where did the rest of the people go . Is this a oneoff statistical anomaly . If italculated that werent for that decline in the participation rate, the employment rate would have gone up to 6. 8 instead of falling to 6. 3 . And peter cook. Thank you both so much. The lack of diversity in technology we will talk to the founder of an accelerator that is hoping that helping minority and Women Entrepreneurs transform great ideas into successful tech businesses. That story when bottom line continues. We turn our focus now to the accelerator for my support what form that helps entrepreneurs start thriving businesses. Since its large in june of 2011, accelerated over 3000 entrepreneurs across the country, helping them raise 12. 8 million in capital funding. The founder and ceo joins me here in studio. Welcome. Thanks for coming on. The broadcast talking about jobs. We got some dire numbers today. Oroyment among those 10. 5 . A Bloomberg Lps senior economist put out a note saying the condition of the labor market is being underestimated because of the exit from the workforce of millions of discouraged workers and young people. They have been shut out of opportunities things to what he calls a growing experience cap. Gap. Perience not only are there not jobs, but a lot of younger students coming out of college are opting to start their own businesses. As not that there arent whole lot of jobs. People are creating jobs, not just for themselves, but for other people. We come in and help accelerate that process and give them advice, support and connect them with investors. Why technology . When we look at our economy and where things are going, its a fastgrowing economy and it impacts the local economies. Technology is really something that cannot only impact main street america and the world we live in as a whole. We mentioned that you launched in 2000 11. Raising nearly 13 million in capital funding. Who is providing this capital and how is it being used . It is mainly Angel Investors. Early Stage Capital we do have venture capitalists. Are they excited when you give them the proposals . Theyre coming in at the ground floor. They get to see what their money is going. Exactly. They come in very early. Think of the next twitter or facebook and getting on those deals earlier. Thats the nature of the beast when youre talking about early stage investing. The earlier the better. Goldman sachs has been supportive of your efforts. What does it mean to have a giant on wall street in your corner . Its amazing. When i got the call from goldman the builders and innovators conference and i got an award there. They called and said, we are trying to get in contact with angela benton. It was on. I thought it was a joke. My next question was like, for what . We would like to give you an award. Im completely honored. Association with goldman, how does that help you raising funds with other Angel Investors . The association helps me personally because they backed me as an entrepreneur and believe in the work we are doing. Ably we can actually grow this intosomething small something much larger. You have a very interesting personal story. He became a mom when you were a teenager. You have lived the stuff and actually have had to overcome obstacles. You are an African American woman. Say that therele are too many obstacles that they can to do this, what do you tell them . In beingre interested an entrepreneur, the obstacles help you. Its extremely hard. Its a lot of ups and downs. Its an emotional roller coaster. You have to be resilient. All of the obstacles that you are experiencing translate directly over to entrepreneurship. You get told no a lot. You have to be extremely scrappy. You have to have a lot of faith. The young people understand that . Some get it. A lot of the entrepreneurs that we deal with have some sort of personal story where they have had to overcome some kind of obstacle. Those are the people we look for. We want to bet on those folks. Part of your mission is to change the status quo. Another way to put that is to understand entrenched interests. They dont like change. Sometimes its all about who i know, people who look like me, people who are gender specific like me. How do you affect change in the face of those obstacles . Are selling point is that we are finding highly entrepreneurial, raw talent. ,e focus on africanamericans latinos and women. When youre thinking about how that translates business, if you can get into deals earlier, investors are seeing the same deals inside and out because we are buying into a different market and identifying unique ideas. Benton joining me in studio. A pleasure to meet you. Up next, julie hyman has an on the markets check for friday. A reminder, there are multiple ways to watch Bloomberg Television. We are on the web at bloomberg. Com, on your mobile device and apple and on amazon fire tv. This week on Political Capital with al hunt, transportation secretary anthony fox talks about the highway bill, rail tanker safety and the looming cliff facing the highway trust fund. Will become fund insolvent as early as august. Before then, many state deities are going to be letting contracts and making decisions in june and july. You can see the full conversation with anthony fox on Political Capital with al hunt. Tonight. 00 p. M. We are approaching. 6 past the hour. That means Bloomberg Television is on the markets. Heres julie hyman. Lets take a look at where stocks are trading right now. We have the payroll report this morning. You would think we would see more action in stocks in the wake of that report. Which was largely better than estimated. We have turned a bit lower here. Its still not as much change overall in the markets. A lot of trepidation going into the weekend for investors and traders. Situation inicate ukraine. Affecting to be trading today. Take a look at pfizer. The pharmaceutical giant sweetened its bid for astrazeneca. The company is still saying no thanks. Astrazeneca argues that the offeror still relies too heavily on equity. Markets also grabbing headlines. Bayer is going to buy merck. The two sides are still ironing out the details. Reports a deal is likely to be announced in the next couple of days. We will have more in 30 minutes. All come back to the second halfhour of bottom line. Im mark crumpton. Thank you for staying with us. You turn our focus to public Pension Plans. Durban institute analyzed and rated 660 a look Pension Plans and found that many offer little Retirement Security for the nations 19 million government workers. Richard johnson is the urban s director of policy. Thank you for your time today. How did you come up with the results for your findings . What information was omitted your database . We went and collected lots of detail oriented information on these plans and financial information. All of this is publicly available data. Your analyze asian found ation foundalyz what . Look at how to these plans are doing and how they are serving workers. Benefits inivering the most efficient and equitable way . One of the things we found was at work for longterm employees, portrait from employees, not nearly as well. That creates problems as people change jobs more frequently. They are not staying with the employer their entire career. Stateas struck by this breakdown. Which states are making the grade and which ones need to show the most improvement . When we look across all dimensions, the state that really comes out is massachusetts. Have employees dont Social Security coverage. That hurts them a little bit. They are not making their contributions. That is a real problem. That is putting money into the plan and it maxes out at 80 of the salary. , they gethan 30 years nothing out of the plan. It pushes them into an early retirement. What about the other side of the equation . Who is at the top . There are no states overall that are doing really well. There is a plan in nebraska that really rewards work. It doesnt have these crazy patterns. It treats all workers equally. We think that is important. Rhode island has a new hybrid plan that is quite good. It combines both the traditional pension and a 401 k type plan. But ita lot of bad press has desirable features as well. What is texas doing right . There is a lot of cash balance plans there. That really helps it. With those plans, its not the traditional plan. Benefits are not tied to the final average salary and two years of service. The employee and the employer making contributions. What are the structural problems that lead to these shortfalls . Are these municipalities promising too much . What is really happening is y are not living up to their promises. Theyre making the promises to the wrong kinds of workers. Being mademises are to the longterm workers and not enough to the shortterm workers. Theyre not putting enough money into the palms to keep them funded. As you well know, when pension reform is discussed, the unions cry foul. When promises are made to , whats and then not kept i