Lets check on the markets for you. Two hours and 30 minutes away from the market opening in new york and futures are a little bit softer. The s p 500 futures are negative five. Over in europe, the stoxx 600 getting beaten up this week coul. The ftse off by 8 10 of 1 . Heres the dollar ahead of payrolls. The eurodollar 11426. The dollar on the back foot they re. A forecast for low inflation down under. Yields are creeping a little bit lower, down a basis point at 1. 4 for the 10 year. Big moves in the bond market, matt. Matt that is one of the stories we will be focused on throughout the hour. I also want to kick off my stock move percent with what is i goig on in europe. Another loss that was 42 narrower than the same quarter last year. A secondhalf rally as steel prices improved. Man group is the Worlds Largest publicly traded hedge fund. Bywas moved from a cell to a off of Hedge Fund Fee structures. Paschi took fewer bad loan writeoffs as they are up, but it is a penny stock for real. . 65 is where the stock trades in italy. Herbalife shares are soaring after it says it is close to a resolution with ftc overcharges it runs a pyramid scheme. The Company Estimates it will pay about 2 million in fines. They reported earnings 25 higher than the streets estimates. Take a look at my terminal and i can show you what happened after the Earnings Report last night. You can see a 14 jump in the aftermarket trade. Are followingre the trend that we have seen in tech results this quarter and that is disappointed. Hit onis really taking a concerns about financing for its Small Business customer loan program. It is a service viewed as a growth area for the Digital Payments company. Square is down 17 . Gopro reporting a loss after posting a profit in the same quarter last year. Theake it all worse, launch of its drone karma will not meet the launch date. David thanks very much, matt. Less than 90 minutes from now, we will get aprils jobs numbers. Have 200,000 jobs last month. Joining us now are in manuel emmanuella and howard ward. Besides the 200,000 number, what other numbers should we be to . Ying attention today, ityrolls for is separate from the Establishment Survey in the household survey. Those numbers tend to be a little bit different monthtomonth. Over time, they tend to come together, but today, its the private monthly payrolls. That number has been to 50 and 260 in recent months, but it should betray new lower. David what about Labor Participation rates . Should we want that number to go up or not go up . Howard i would like it to go up because that means people have more confidence in the economy going forward. They are backed looking for work and feel more confident that they will find work. Megan does that mean we are going to see wages potentially . We have more people in the labor market and actually reduces pressure from businesses to bring their wages up. Higher Participation Rate means we are getting a little more labor force reentry, but i think it is a good sign in the long term because it suggests the labor market is so strong that it is pulling people back into the search for jobs. Its good. , i think wages will rise a little more slow than we thought. At 72 basis points, what does that tell you about with the bond market thinks about all the noise we have heard so far this week . Howard the Economic Data has not been very strong. It is been softer than we would all like. The bond market is not the least bit concerned about a runaway economy. I cannot imagine the fed tightening in june. I do not think the data supports that. If you look just at the labor market data, you could make the argument, but once he moved beyond the labor market, the numbers are not there. Fears of a global slowdown are still there. They cant do it. Jonathan what is the intent of saying june is live . Howard it bothers me that some of the fed people are out there speaking all the time. I would frankly prefer a fed that was quiet. I would prefer the said from the 1970s and 1980s where they do not say a thing. If anyone is going to speak for the fed, let it be the fed chairman. Megan do you think there is a member that we could hit this morning that would potentially put june back on the table . Emanuella i think it is on the table, so im in disagreement with howard. I think the fed thinks its a live option. That impact was highlighted in the last meeting where the phrase about global concern was taken up. June is definitely in play. If we get a number of 200 thousand plus, it is a number that the labor market is robust. Perhaps there is a little concerned about labor market slack, but the pace of job growth will be confirmation of the most important engine of consumer end of income still there on the economy. David to think about her point, isnt the fed a sickly saying we do not want to surprise anyone . Isnt that a good thing because the worst thing is to surprise the markets . Howard i do not know if that is so bad. Ifthe fed tightens in june, what i see in china and japan and europe, the negative rates, i think 35 of the Central Banks in the world have a negative Interest Rate target. When i see this kind of a world and the fed tightening in june, you will have a currency problem. Youll have a stock market problem. You will have some real upheaval. Megan if they are truly based onen fed and not reaction in the markets and not running away every time they have a negative Market Reaction tightening, isnt that getting away from the policy want them to have . Howard i think the fed needs to be data dependent. They say they are data dependent. I think its going to slow. ,he labor data has been strong the strongest part of this recovery. As we look at the expectations for today, that number is going to come down. It is coming down to 200 or 175 of the next few months. The strongest part of our economy is going to now start to weaken. That is the payroll growth. The rest of it is not there. Manufacturing is basically in a recession. You do not want the dollar to get stronger. The week of the dollar gets, the more bullish i will be. The data is ok and the pm eyes are above neutral. , its just notmi happening. I want to pull it up. Jonathan you do not sound very bullish today. Matt miller, what have you got . Matt ive your first word news. Do you want to see a chart first . David we want the chart behind you. Matt this is an interesting look at the labor market. This is average Hourly Earnings and we were up 2. 5 . It is still better than a stick in the eye as far as wage growth. This is Labor Participation. This is some excess slack coming off. If we are out of slack now, does that mean we see wage growth start to go up . Emanuella it is not clear that we are out of slack now. Our baseline forecast is that the Participation Rate will stay at 63 , but there is risk that you can have some reentry and perhaps there is slack in the economy. It is not all bad news. Trend intinue the up the Participation Rate, the Business Cycle has more room to run. You can perhaps continue to see an expansion without the inflation that will end up crippling the recovery. It is not all bad news. It suggests that we will eventually see wage pressure. For now, it is slow in its building. David please stay with us as we continue our full coverage of this jobs friday. We will have alan krueger and Janus Capital possible bill gross joining us. Now can we please have first word news . Matt miller with first word news. Matt a number of prominent republicans have backed away from the parties likely president ial candidate dr. On donald trump, but he now has one of the richest republicans in his corner. Children allison is telling the New York Times he is backing donald trump. In regionalvoters elections gave no sign that they are ready to defy their leaders and leave the european union. Prime minister David Camerons conservative party appears to be on the brink of picking up council seats. He is opposed to the u. K. Leaving the eu. Nationalists are on course for a Third Straight victory in scotland. Herla sturgeon will extend turn as the head of scotland semiautonomous government. The wildfires in western canada have spread to an area bigger than new york city. The numbers are staggering. More than 80,000 people have fled the people of fort mcmurray. The fire may turn out to be the costliest catastrophe in canadas history. Insurance losses may go over 7 billion and force oilsands producers to cut back their output by 40 . Dayal news 24 hours a powered by news bureaus around the world, i matt miller. Megan coming up, a drop in trading is weighing on Goldman Sachs, pushing the firm to make further job cuts. We discussed next. Matt heres your Bloomberg Business flash. Largest right hailing Services Taking another big step in its battle with cooper for the Worlds Largest market. Is close to raising about 2 billion in its latest round of funding. The company is seeking a valuation of 25 billion, making it the fourth most valuable start up in the world. A german chemical maker is closer to buying materials and added it to unit from air products and chemicals. The deal will be valued at 3. 5 billion. The ceo ensured investors that the company would not overpay. A trial made for hollywood. It begins today in los angeles. 92yearold whether media mogul Sumner Redstone was mentally competent when he threw his exgirlfriend out of his home and remove her from overseeing his medical care. Whoverdict could decide ends up can strong his stake in cbs and viacom. That is your Bloomberg Business flash. Jonathan matt miller, thank you very much. Goldman sachs extended job cuts in its security unit. The bank is cutting 10 of its fixed income unit, up from 8 previously announced. For more, Michael Moore joins us from the city of london. Aboute talked all week what ubs called paralyzing volatility could not just european banks but the u. S. Banks as well as seems. You are seeing it and all the metrics that we have from goldman. They put out their 10q this morning. Is of the metrics they used trading days where they had more than 100 million in revenue. They used to be that was more than half the time that they would crack 100 million in revenue. The First Quarter, they had three days. It is a pretty dramatic decline in activity on the daytoday basis for them. Jonathan we talked before about immediate job cuts desk cost cuts that could be straightaway like trips abroad. What do well job cuts tell you about a strategy and an outlook as well . Michael that seems to be a more permanent move. If you are cutting 10 , typically, goldman cuts 5 of their staff around this time of the year. To do double of that, it certainly says a lot of what they think the environment is now and what it is going to be over the next 1218 months because a lot of these cost savings you do not see until six to nine months out. Megan lets pick up on that in the fixed income market and how many of the cuts are permanent and how much is cyclical. It is a business tremendously weighed down by Capital Requirements across the sector. How much is this the tail end of the cycle . The nextome back in 1218 months or the next 23 years . Michael the thing that Lloyd Blankfein constantly says is that the cycles can turn quicker than you can imagine. That has been kind of his this isas he says that why the bank is holding on. This is why they are not cutting major parts of the business and why they have stuck with this the business. He thinks it can turn very quickly. That just has not happened over the last six years. With the continued decline in this business, you have to adjust somehow or otherwise you come under pressure from your shareholders. That thises to think is partly cyclical and can bounce back, but there are some secular elements here. David matt, i want to bring you in on this question of volatility. Matt i have a chart of volatility and we have a great story on bloomberg. Com today about this. It has paralyzed volume. Spiking up the vix to 40 and hovering around 25 this year. You mentioned Goldman Sachs only had three trading days over 100 million. Back in the Second Quarter of 2009, Goldman Sachs had 46 trading days over 100 million. Was is when the vix averaging 40 if not 50. What is going on with trading volumes . Michael 2009 was goldmans record year. A lot of that was markup. To their inventory, they cannot hold up as types of inventories anymore because of capital rules. That is a big piece of it. In 2009, you had a oneway trade as credit spreads narrowed and you had the fed stepping and. In. Right now, theres not a lot of certainty like there was back then. Jonathan Michael Moore, thanks for staying with us. We will put howard on the hot seat on where opportunities are in the sideways market. That is on bloomberg. Jonathan this is bloomberg. About one hour in eight mins away from the payroll report, heres the scorecard. Dow futures 37 points. S p 500 futures down around five points. Over in europe, heading for the biggest weekly loss on the stoxx 600 since february. Switch up the board quickly and this is how we are positioned ahead of that payrolls report with the eurodollar at 114. 25. The dollar on a little softer footing. The rba is looking a lot more dovish than just a couple weeks ago. Treasury yields are 1. 74 on the 10 year. Year, 110 basis points, just 73 basis points on the u. S. Twoyear. 80 of the way through earnings season so far, so we will get an earnings wrap with matt miller. Matt we are pretty much done here. We have a drop of about 9 yearoveryear. The First Quarter is very weak as far as an Earnings Growth was concerned. Want to mention ea real quick. This chart is amazing, so check it out in the bloomberg. What this shows you is a look over the last basically 40 years. The blue line is nonfarm payroll. A massive dividend to the overcial crisis, backup 200,000. Does the job number follow . Megan we are just over an hour away from the nonfarm payrolls data. Ward. With us is howard howard, lets talk now about where you actually see opportunities in this market. Single out some stocks and sectors that you believe in such a difficult to predict market that there may be room to grow. Howard i sort of look for names with growth, perhaps stocks that did not do well in the past year or coming back into favor. Two names come to mind time warner and cbs. Both just reported good results, better than expected. They seem to be transitioning into this new cord cutting area successfully because they have the networks that people are going to want to have on their skinny bundles. Theyre going to pay more for the skinny bundles than they are getting now. Megan skinny bundles are shaving, but how are they thriving though . Is it because they have these must have shows . Howard advertising has been stronger than expected, part of that due to the election campaign. And stillmarkets Strong Demand for quality content. That is good for them. Also, housing. We have had a really long drawn out housing recovery could it is. It has been slower than a typical recovery, but we have had a strong uplift in the last half months. Formations that have been held back previously bodes well. It shows a lot about the housing recovery. I like whirlpool as a play on both old households in new households. Lenar developing property in florida and texas. Megan what about in tech . Howard in real growth, you have got to stick with facebook and google. They are collecting 85 of all the ad dollars that are transitioning to the internet are going to those two companies. They just reported very positive earnings, especially facebook. Facebook knocking out of the park. It is growing at 30 plus. I do not think it is that expensive. In the case of google, youre paying 20 times forward earnings for a Company Growing 15 . Stick with those winners. Megan thank you so much, howard ward. Emanuella will stay with us. David we are an hour away from the jobs report in the United States. Coming up, we have alan krueger and bill gross on bloomberg. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Shoah, ha ha. Ew artist. Show me top male artist. My whole belieber fan group. Its not a competition, but if it was i won. Xfinity x1 lets you access the greatest library of Billboard Music awards moments, simply by using your voice. The Billboard Music awards, live sunday may 22nd, 8 5 pacific, only on abc. Jonathan good day to you and good day to the beautiful city of lundy with the ftse down. Lets get to the board and show you significant moves in the bond market i want to talk about. Global bond yields near alltime lows. The frontend of the german curve couple basis points from the record low on to your notes twoyear notes. The eurodollar at 1. 1424. Has been volatile to say the least. This is bloomberg. We will break down those markets for you in just a moment. Biscuits and first word news with matt miller. Have Vladimir Putin will a rare oneonone meeting with a group of seven liter. Eader. With Vladimir Putin and argued that western leadership engage with putin. Notident obama asked abe to make the trip. Elon musk has done it again. Spacex has landed a rocket on an oceanbased platform. It launched a japanese can indication satellite. The