Alex markets are relatively calm. Jonathan and have been throughout the season. The ftse 100 down but about. 1 . The dbacks in frankfurt, germany, performing pretty solidly on the continent. Across the continent, the futures firmer by about five points. I went through the other boards for you. Dollar yen, 149. Close to breaking 100 as we did on june 24. Fourday losing streak. A much stronger japanese currency. Ahead of this jobs report, unchanged. 1. 39 is your yield. Alex no one really taking any big nothings the next hour and a half. Lets check in with our team of our top stories. Julie hyman is in washington counting down to the jobs report. Guy johnson in london with the pound heading for its third weekly decline. And javier with oil taking a big plunge. David a little less than 90 minutes, well have the jobs numbers. Julie is joining us from our washington bureau. What are we expecting . Whats the consensus on what the number might be . So the consensus right now of the economists we surveyed is for an additional 180,000 jobs last month. The big question was was may an aberration. Does this signal a broader trend . We are seeing something of a slowdown in the three month average. If you dont include that may jobs report, you get an average 181,000. So well see what today does to that average but comes in line the average would remain a relatively in line as well. Private payroll additions, 170,000 is thest mat here. 8 , the average estimate for unemployment. 2 . Ourly wages, a gain of all of these numbers going to be important for the fefment as we learn from the Federal Reserve minutes from the last meeting this week, Federal Reserve officials were concerned about that may jobs report. It really gave them pause. And that was before the u. K. Vote and some of the other Global Concerns that have come back to the fore. So this number will be important for the market and the fefment all of these jobs report seem to be the most important jobs report of anyone. This one will be key for the arkets and for the feds. The key number there is 37,000. Thats how many workers that verizon strike took away from that nonfarm pay rolls number. You can subtract that 37,000. In other words, if youre keeping it all even month over month. Thats the effect of that in particular. The other sort of factors that were looking for, i mean, the verizon strike was the big one. If youre looking for any potential effect from the u. K. Vote, for example, thats not something where we will see. And as part of the management survey, they asked employers how important is the u. K. Vote . They said it would be negligible. In the coming months, well see if that proves to be the case. David thanks, julie. Thats julie hyman reporting for us from washington today. Jonathan in london, guy johnson joins me. The story of the year has been the softer dollar with the exception of one currency pair standing out to capture this moose this year. Its been a big year for argentina. The british pound is underperforming the peso. Jonathan remarkable. A lot of people are talking about it going even lower from here. The market is not there yet. There are signs of instability. And the t. A. Guys giving a little excited that maybe were in the early stages. And i emphasize early stages. Maybe thats a move back up. I think the big story will be when we get a big pop back up. Sterling hasnt hung around these levels back yet but people are positioning for that. Not now, maybe not tomorrow or next week but it will come over some point. The currency pay as the cable rate but in the equity market, its been italian banks. And the story continues today. Have we made any progress this week as far as the position of the italians are concerned versus the position of the e. U. With germany at the core . This is how to europe makes policy. They communicate. They argue their points in public and in private. You cant necessarily draw lines. Talking about state intervention. Now sticking to the rules are sticking to the rules can mean very Different Things to different people. The rules do allow for that to happen. So you can stick by the rules into the italian banks. You have to listen carefully to new york of what is being said here. As ever, europe will find a fudge. Thats how to european policy is made. Jonathan that is very true. Big moves in this market. The cable rate and your favorite crude. What a week. Alex oils oils worst week since february. Joining is javier from london. Were seeing oil up but what led the massive decline this week . It is a lot to do not with oil but with the gasoline market. We were expecting strong consumption in the United States the summer and the consumption that first half of the year has been very good. But two things are happening the demand growth has zphrode refinery has been able to make a lot of gasoline. We are entering the driving season for the Summer Holidays with too much gasoline. Refiners have to start cutting back on production rate. And that means they are consuming less croyle crude oil and thats why the whole complex on oil has come down. And we have seen the we have seen now in the wholesale market in new york for gasoline. We have not seen gasoline prices this time of the year peak driving season demand that low in 10 years. Alex great perspective. Wow, 10 years. Feel like the markets also hering bullish news. The biggest decline since 2013. You still have problems in nigeria and libya despite any kind of peace talks. What does it say that ignores the bullish factors . They have been very bullish factors. Nigeria with lots of production problems. The middle east is not peaceful at all. If you look at that kind of development, the main problem is iran is a very bearish factor. Theres a lot of oil from iran. Nigeria remarks we have seen recovery production. The u. S. Production is coming down but we have too much inventory and this is the time of the year where those bullish factors are really drawing down inventories. We have seen stocks draw. We are not seeing anything extraordinary and the market really needs to see extraordinary stock draws to really rally above these levels. And beginning to be a bit of a consensus in the market. Maybe the rally is over and we are going to end 2016 around current levels between 45 and 50 a barrel. Alex thank you so much, javier, joining us in london. For the latest on the developing situation out of dallas, texas, and other world and national news, here is emma. Thank you, alex. Snipers have killed five Police Officers and wound six others in dallas, texas. The attacks took place during a demonstration against recent Police Shootings of black men. The shooters coordinated their attacks. Dallas chief called this an ambush. The suspects were positioning themselves to triangulate from the Police Officers from two different purchase in garages in the downtown area. And planned to injure and kill as many Law Enforcement officers as they could. Three suspects have been arrested. A fourth was hold up in a parking garage in Downtown Dallas exchanging gunfire with police. President obama spoke about the attack in warsaw. We still dont know all the facts. What we do know is that there has been a vicious, calculated and despicable attack on Law Enforcement. Police are searching the downtown area for explosives. Meanwhile, David Cameron will make a show at the nato meeting. He will make the argument that britain is still relevant on its allies even though it is leave the european union. He will pledge more than 3,500 roops. And south korea and the u. S. Have agreed to deploy a missile system. It is in response to a growing missile threat to north korea. China is urging the two countries to reconsider. Global news. 24 hours a days, powered by more than 2,600 journalists and analysts in more than 127 countries. This is bloomberg. Alex we have some breaking news in the business world. Polly come is end their pact and will be joining up with Sirius Capital group, a private equity firm. About 2 billion in total. And fumbled it through equity. Olly come stopped popping. Coming up, it is the countdown to the june jobs report. 180,000 jobs expected in june in the u. S. Fresh reaction from bill gross. Ahead on go. This is bloomberg. Jonathan futures in the u. S. Ahead of the payrolls support a little bit firmer. The london, ftse 100 is unchanged. Guy johnson saying sterling now the worst performing currency so far this year, beating the argentine peso. Dollar yen close to the 100 market. 144. A fourth straight day of declines for that currency pair. And yields unchanged in a week where we saw an alltime yield on the u. S. 10year. David . David thanks very much, john thafpblet as everyone knows, you certainly should by now if youre watching the program, today is u. S. Jobs day. Here to preview the numbers is david roseberg, the chief from est economist toronto. What are you expecting . I dont think the a. D. P. Is going to miss two months in a row. The consistence somewhere around 170, 180. I think that is a reasonable estimate. As far as june is concerned, but the real kicker here and the real surprise could be an upward revision in may. Keep your eyes on that because we didnt get much of the revision to the a. D. P. Today. And my sense is that were going to see that gap close. So no matter what june does, keep your eyes on may because the chances we see an upper revision of size is very high. David we have to take 37,000 and 38,000 out of the 170 because of the verizon strike. But if your analysis, you pointed some other factors that you think are reasonably positive. For example, a shift in attitude on an analyst part about corporate profits in the United States earnings. Tell us what else you think are pointing in a positive direction. Earnings estimates were starting to go up ahead of the brexit. And either you believe that you have a break in the series or you dont and time will tell. But we started to see some of the effects of the improvement in the commodity complex having a big influence on materials, Energy Prices going up, having a ripple impact not just through the oil and gas industry but the financials. Its broadly paced. And the based. And the u. S. Dollar acting as a strangle homeland on the industrial sector the question is whether or not the analysts given the fact that were in a much more macro environment than we were previously. Janet yellen uttered the word uncertainty no fewer than 39 times. The earning estimates have started to go up. The big question is brexit, whether or not the analysts start to taken a eraser out for some of the recent increases. Back to the employment situation, i wouldnt say im bullish. This is one monthly number. I call it noise. The two things that i would actually Pay Attention to today in the june number, not the may revision, thats fine. Even if you count the may revision and you get a consensus number in june, its nothing to hide the fact than the trend basis. Employment is slowing. Thats a fact. Goods producing employment, yesterday in the a. D. P. Number is 30,000. We are going to repeat in payroll. Thats five months in a roll of negative and that leads overall employment. And keep an eye on transportation services. In april, that was down negative year on year. It went negative year on year in may at transports were leading indicators. Those are the segments in the report that people have to Pay Attention to. Alix if you tie in corporate profits and jobs, that leads us to wages. Its the atlanta wage tracker. Wages were supposed to come in 2. 7 youre on year but atlanta showing higher at 3. 5 . Is that kind of rise sustainable . Well it is showing that over time with the lags, the tighter labor market is finally belately led to a moderate increase in wages. No matter what measure you look at, or even if you look at average early earnings, the increase is less pronounced but its moving up gingerly. And we saw the evidence that they were seeing some poddest increase in wages. And when you take a look at nominal income in the United States, its slowing down. Nominal income in the u. S. Is barely more than 3 . And theres two next incomes. When i take a look and i see last 15 years over year is running 4. 3 effect. Today its running barely 3 . Those are the numbers went to look at. And the wages are hooking up. Its coming to be the spence of expense of profit margin which in the past was the nominal Income Growth that was squint the economy. No matter what number we get to april or june, the economy is fundamentally weak. And theres nothing in the tea leaves that will reaccelerate. David higher wages do cut into corporate profits and it can also put more money in the pockets of consumers and the u. S. Consumer is such a large portion of the u. S. Economy. Might that be a positive sign for the future if terms of growth . Well, you know, its a fair point. The u. S. Consumer is certainly pulling its weight. If you take a look at the various components of g. D. P. And if you look at what has been the real shortfall this cycle, nobody talks about well, this is the weakest expansion of all time. Its not really the consumer. And its not housing and believe it or not, its not even exports, notwithstanding how soft the Global Economy is. The big gap this cycle is Business Capital spending. And so thats been really the big gap. Youre quite right about the consumer. I wouldnt say its robust. And what goes into g. D. P. Is spending. Not income spending. The question is how much of that income is in the economy . So its happening at the same time that youre getting this personal Income Growth from wages is a savings rate is on the rising trend for a variety of reasons. And thats one of the reasons why consumer itself is not doing great. But were here talking about, you know, employment for the month of june. The question is, really, its a lagging indicator what is the outlook for the second half of the year . And whats really caught my eye is core capital goods order. Its down four of the past six months. Core durable goods orders are down at a 9. 5 annual rate. So companies are cut back on Capital Spending. Thats been the case all cycle long. They felt more comfortable buying back stock and boosting the dividend payouts but this has been an anemic, the worst Capital Spending cycle of all time. And if theyre cutting back, how far are they going to go in terms of adding their payroll over the past several months or quarters . David david, thank you for being here. I keep looking for some good news but its always mixed. Its always a little confusing. Jonathan coming up, well continue our jobs coverage with fresh Immediate Reaction to the jobs numbers from bill gross. And later, rick reeder, black rocks c. I. O. Of global fixed income. This is bloomberg. Jonathan one hour five minutes away from the payroll reports in the United States. Lets get some premarket movers. Heres something that you dont say every day. We have the italian banks trading sharply higher. U includes unicredit and the company is not reporting though on the euro wide test duty in july 29. And these banks are saddled with a lot of underperforming debts and investors are weighing on in a pretty negative way. Ugly charts. Lets see what happens on july 29. Sticking with europe, the european car makers were seeing a rally here after the chinese auto Sales Numbers for the month of june came up strong. Up 19 on s. U. V. Strength. V. Re looking at daimler, and v. W. All higher. The european stocks overall sharply. We have the index for the automobile offers the last year that heads down sharply showing that underperformance. Another wait and see. Lastly here in the u. S. , a. M. G. Getting hit in the market. Analysts went underperform but he has missed the big a. M. D. Rally this year. Lets take this call with a grain of salt, alix. Alix coming up, we have the latest on the breaking news out of dallas where five Police Officers were killed. And then back to markets. Our job day coverage. How will wage growth be impacted . This is bloomberg. You guys be good. Ill see you later [ bark ] [ bark ] bye. See ya pal. Ever wonder what your pets do when you leave home . [ laughing ] aw you cutie pie. Aw. Aw. Aw. Aw. [ barking ] [ washing machine running ] partys on know what your pets are up to with xfinity home. Xfinity. The future of awesome. See the secret life of pets, in theaters july 8th. Jonathan from a beautiful city of london thinks bloomberg. Im Jonathan Ferro. And it is official thermometer pound is the worst performing currency this year, worst than the argentine peso. We trade on 1. 2971. Heres the scoreboard. Futures in the u. S. Firm. Up. 2 . Dow futures up. 2 . In london, were up around 10, 11 points. The dbacks and equity mark. Switch up the board quickly through the others a sit classes. Euro dollar, up. Dollar yen, very close to that 100 mark. A fourth straight day of decline. A stronger japanese yen. Yields unchanged out of 10 year off fulltime loads. We tried at 1. 38 in the u. S. 10year yield. Thats the situation in the markets. Lets get to the latest situation in dallas, texas. Here are some of the headlines. Thank you, john. It was a peaceful demonstration in dallas but it turned deadly for police. Snipers killed five Police Officers and wounded six others. The attack took place as demonstrators demonstrated recent Police Shooting in black men. David brown called it an ambush. These suspects were positioning themselves to triangulate on these officers from two different purchase in garages in the downtown area. And planned to injure and kill as many Law Enforcement officers as they could. Three suspects have been arrested. A fourth was hold up in a parking garage in Downtown Dallas exchanging gunfire with police. The suspect shot himself but that couldnt be confirmed. President obama discussed the attack while attending a nato conference in warsaw. Theres no possible justification for these kinds of attacks or any v