Michael mckee tells us why the obvious jobs number doesnt change the overall economic. Icture peter cook is following the latest developments on inversion and we begin with Phil Mattingly, the obama administrations strategy to deal with syria and iraq. Administration officials and the president himself have been working for weeks to describe what exactly they are doing to counter the rise of the Islamic State in iraq but also in syria. On wednesday the president himself will give remarks to the nation where he will lay out what the administration has done up to this point and what we can expect going forward. Administration Officials Say there will not be any jarring new announcements. Expansion of bombings into syria. They do believe the president will work to explain the threats and what is at stake for u. S. Armed forces. Take a look at what he said just yesterday. Asking im going to be the American People to understand is this is a serious threat. We have the capacity to deal with it. I am going to be asking congress to make sure they understand and support what our plan is. It will require some resources i suspect above what we are currently doing. You see the president definitely looking for some buyin. Tomorrow he will be meeting with congressional leaders, laying out exactly what he is going to say for them. We will see what their responses tomorrow afternoon. U. S. Expanded its airstrikes in iraq and is this what we can expect more of whats to come and how Congress Might react to Something Like that . He has been supportive of what the administration has done. What you have seen as a gradual expansion of that air campaign. Win after Islamic State militants and what you have seen now is each one of these campaigns has been bolstering iraq he defenses and kurdish moving forward. The big question, will this extend into syria . The administration Officials Saying he is not ready to make that announcement. When that decision is made we will know about it. Up to this point it looks like the president has not weighed in on it. Much. Nk you so Phil Mattingly outside of the white house. The debatements in over tax of versions. Chuck schumer is floating his own plan to punish companies that move overseas for taxes. His plan takes aim at companies that moved long ago. You are talking back to 1994. I dont want to editorialize but that seems crazy. , if inversions are unpopular today he is making the case they should have been unpopular 20 years ago. Is thely his proposal most painful of all the of version fixes offered up by lawmakers because it does cover the most number of companies, as many as 73 in all. That is how Many Companies have engaged in inversion transactions since 1994. His proposal here would not ban inversions but what it would do is make the economics more difficult. There wouldnt be as many Tax Advantages for Companies Going forward from this point on. He is dealing with the companies that are talking about it at this point. He is thinking about going back all the way to 1994. It would mean tyco international. Companies that did inversions way back in the 1990s. Chuck schumer knows this proposal is very difficult right now in this congressional because republicans dont like in versions but they say the real solution is andrehensive tax reform only that is how we should address these issues. This is a political document as much as anything. The bigger player is the treasury secretary. We take will have a strong legal and policy basis but will not be a substitute for meaningful legislation. It can only affect part of the economics. Only a change in the lock and shut the door and only tax reform can solve the problems in our tax code that leads to inversions. That was the treasury secretary earlier today speaking at a debate here on reforming the Corporate Tax code, saying he sees no opportunities in the short term. He is urging congress to act on a comprehensive fix. If congress cant then this administration is planning to deal with inversion on its own. That is why jack lew is the more important player. He walked through a tight rope here. He wants to put forth a fix but doesnt want to take the heat off congress to pass something more comprehensive. He would much rather have this off his plate and there is agreement among democrats and republicans that inversions are not good and the ultimate solution is a reform of the entire Corporate Tax code. That is a long way off so the pressure will be on jack lew to come up with something to deal with these kinds of transactions in the short term. The question is how far do they go, how painful it will be, and how far back they will go. A bit of a difference there. Thank you so much. Turn to the economy. August payrolls were certainly a disappointment but did they . Hange Michael Mckee says it would be a mistake to actually that that way. Move thet enough to needle on any final fed policies. 142,000 jobs. The fed wont raise rates until the end of next year . No. First, growth. We need growth to get jobs and we are getting it after the awful first quarter. Second quarter likely to be to 4. 5 . En Third Quarter is running well over three percent. Retail sales have been disappointing but that may be starting to change. How is backtoschool going . The International CheckInternational Council of Shopping Centers said the last week of august was up over 5 over the same week a year ago. How many jobs are there in america . The labor departments job opening index is accelerating since the spring. 3. 3 million openings. They are not noisy but there is no doubt the economy is improving at a faster rate. It seems to me theyre looking at the second quarter, maybe the first half of it has been relatively hawkish. The truth is we dont know what they are going to do. The truth is they dont know what they are going to do. A new study of the Department Just minutes ago find the public seems to expect a more accommodative policy than federal market policy participants. They also may be less uncertain about these forecasts than the policymakers are. Rate offed funds 1. 31 end of next year. Keep in mind what janet yellen told congress. If the economy is stronger increases in the federal funds target rate could come sooner than the committee currently expects. It could work the other way too. We get new forecast for the policymakers at their next meeting. A very interesting day for market participants. Thank you so much. Coming up congress is back in session. We will take a look at what is on the agenda and how much more work is likely to get done before the Midterm Election campaign gets started. Make anyt extraordinary claims. It is the best way to let the people understand. Congress is back in session after a fiveweek summer recess. Is most pressing task avoiding a Government Shutdown on october 1. A former u. S. Senator is a bloomberg can chew being editor. He joins me from manchester, New Hampshire with more. Welcome back to bottom line. Deadlock congress had a midterm vacation. How checked out are they right now . Very checked out. They will be in session realistically for two weeks. I think the house is targeted next friday at the time they want to get out. They do have to pass a continuing resolution. The spending amounts are not an issue because they are operating under a budget agreement that was put together last year. There may be a few issues they want to include on that continuing resolution and if there is any hold up those would be the items. They are going to be debating campaign issues. Exactly. Everyone wants to bring forward an issue to talk about that they think will reflect well on themselves during the campaign. The house of representatives they are going to have bills on jobs and energy. Obviously things that are in the foremost minds of voters right now. The senate aren going to bring up a proposal to change the First Amendment after 240 years. The idea freeze each doesnt work for some of the democrats in the senate. They think it may be a Good Campaign issue. I doubt it. But it will take up some time in the senate. The two issues that might get done or an effort to get done are a prohibition on internet taxes, due to expire at the end of this month. And the Export Import Bank provides loan subsidies for people that are exporting. It also has a charter that is due to expire and there is general bipartisan support for it but it will be tough to include items like those on a spending resolution without controversy. How different are these midterms over other midterms . It is always hard to say. This is the off year election for president in the second term, never historically being president obama. Have theepublicans advantage in picking up a couple of house seats and regaining the senate. New hampshire is a tossup. Races could flip that the republican camp. That is not unusual. It has the potential to look a lot like 2010. You work with multiple administrations. N you look at things like look at things that president obama has done, would you say his staff is failing him . I think they have to a certain degree but at the end of the day that responsibility is the president cost. He hires thatne, staff, he sets the agenda for the staff. He expect the staff to provide him with information, to talk back to him, to provide contradictory opinions that he can work through . Hasink one of the feelings been his inclination to surround himself with people that agree with him. For him to engage publicly. T goes into the public into the budget debates, which i think he handled very badly. Being public about setting a redline for syria. As a result he is dealing with controversies and feeling policy in syria, iraq, ukraine, that in many cases could have been with more focused Foreign Policy and a better set of strategic and suppose. We only have 40 seconds left but what the but what opening does this create for our for congress . Who can benefit from this . I think republicans are in the best position to benefit by tying their democratic opponents , especially those who were incumbents, to the votes for this failed policy. Jeanne shaheen has footed with president obama 99 of the time. That is going to cause those incumbents a norm is difficulties in the election. Nothing over the next two weeks are going to change that. It is an opportunity to tie up loose ends and get back to the campaign. We appreciate it. Coming up, slim pickings. Retiree is look for new bond investing ideals. We look at what they are willing to do to get those better returns. That is coming up next. Tromp entertainment is filing chapter 11 bankruptcy. The filing is set to begin this week and if you recall donald trump back in august had been asking for his name to be removed from Trump Plaza Hotel as well as the tosh munhall. Now they planning chapter 11 bankruptcy filing. When you are looking at a bond market and little volatility what is an investor going to do . We looked at what bond buyers are willing to do to eat out gains. Taking on more risk would be the solution when you have a low yield environment. How do you take on that risk . You go to highyield bonds . You dont want to do that at such overvalued levels if you are a professional institutional investor. According to a study investors are more and more willing to compensate the biggest bond. Ealers for providing research about 68 of these investors pointed to highyield debt that are less liquid opportunities as one of their most valuable resources. This is a flip from two years ago when 28 of investors the easy money environment was here two years ago. What is the big difference . There was more potential for to run its course. Right now the potential seems it is mathematically limited. Investors are starting to say we need to go elsewhere and go beyond the runofthemill basket of bonds. It has double digit returns for a couple of years now. Not see that continuing. How do you position . The money is flowing out of where and going into which other asset . People are saying they dont want to get less than 1 on 45 of all government bonds out there. Fund orre a Pension Insurance fund, how do you generate more deals . You going to stuff you cannot trade. You going to stuff that maybe from an maybe from a foreign country. It is a much bigger return than other forms of debt, including the runofthemill u. S. Highyield bond. Them a that brings up liquidity questions. No one is buying it. This is the issue. It is that sort of possibility doesnt seem present right now. What is going to derail this . It seems like the catalyst will be a surprise. In the meantime people need yields. It also shows that the biggest banks are looking for an edge by andiding this Research Marketing this research as a way to get business. Dealer investor relationship has changed forever or is it a temporary blip . Shiftre has been a market in the relationship because now dealers cannot use their own capital in the way they used to a this may be one way for them to get an edge to provide trade ideas. These provide ideas for you to generate extra returns. Risktaking is still coming on the Corporate Bond market. We really appreciate your insight. The hour and that means Bloomberg Television is on the markets. Julie hyman joins us. Lets take a look at what is going on with stocks. We are seeing declines across the board and steepest on the s p 500. Energy stocks get pulled down by the price of oil. That is accounting for a lot of the drag on stocks. Hertz ceo has stepped down citing personal reasons. Under pressure from activist investors who want to out due to operational and account missteps. Brian mcdonald is serving as ceo in the interim. We are looking at shares of ford and general motors. Morgan stanley said it is cautious on u. S. Automakers. Morgan stanley said it prefers companies with exposure to Autonomous Vehicles and advance proposal and advance repulsion advanced propulsion. More on theto have markets in 30 minutes. Demo we have some more breaking news for you. The Baltimore Ravens of the nfl said it terminated ray writes contract. Never saw him till monday video that appears to striking his then fiancee in february. The video released by tmc them and thenws elevator in an Atlantic City casino. It each hit the other before rice knocked palmer off her feet into a railing. Trish reagan joins me now. Exit prize . This needed to happen. This video is incredibly disturbing. Its firstturbing in incarnation but then we saw the rest of it today. A man attacking a woman in a violent way. The idea that the nfl only gave him two games initially, a pretty outrageous. Domestic violence will now trigger a sixgame suspension. For the second time youre out for the full year. Where is Roger Goodell and all of this . There are reports that the nfl likely didnt see that tape ahead of time and there may have been some lets push it under the rug type of thing going on. Of questions. We are going to talk about the future of the nfl. We are going to contrast goodale with adam silver, who got out in front of the nba to the whole Donald Sterling case and questioned whether or not this league can really survive when you have these kinds of issues going on. At the end of the day he is still a talented player. What else do you have coming up . We will talk a little bit about alibaba. We will talk about what you can expect in that ipo pricing. Looks like it will be the biggest ipo in u. S. History. We have a whole ton of stuff were going to talk about creative the islamics about. The Islamic State. Newsis tremendous amazing that finally a team is taking a step forward. Lets go back and focus on alibaba. The roadshow continues today. Show g and television Bloomberg Intelligence invites Realtime Data and contacts, pretty much anything you want to know about. When you take a look at the roadshow, what is going to be the biggest question . Some of those risks. A we have already heard about the Corporate Governance where of hisnder and a few associates really control of lot of the decisionmaking around the company. Is surrounding the split off and the Company Ended up being a major destructor. Aspect is really around mergers and acquisition. We have seen the company make a number of acquisitions. I think the founder was able to prove his acquisitions. It is so crazy. Says customers first, employee second, have you heard a u. S. Company come out and say that . It is an issue. You are dealing with companies from china, with a tremendous entrepreneur from china, and there are obviously going to be some differences. A fascinating valuation, 66 per share. We will see how that prices out. What i find striking is this is an Ecommerce Company that makes money. The margins are so significant. You can think of it like google beats ebay meets amazon. Email google amazon. Ay meets if you dont have all those warehouses. It is a middleman. Core business has seen competition. They diversify into smaller businesses that have a much lower margin. Our lower margins in the future for this company . What you need to understand about alibaba and the reason we need to go out and make these things is the pitting of the system. Companies going from these pcbased businesses to mobile businesses. Mobile audiences are more and more fragmented. We think of them as being consummate three to alibaba because what it really does is it expands the number of access points. It recommends some of the services, wh