St. Louis fed talking about the economy later. That is what is driving this market. Everyone stops trading until a breath. , 8 30, take everybody wants to see whether the momentum continues. It is not that we are 00 iserating, 197,0 forecast. The Unemployment Rate will be interesting. The Labor Department releasing revisions to the last five years. They could move it around a little bit. It is possible we could go below 7 . Just on a revisions basis. Street into aall tizzy, able take a while for people to absorb that. We are all above the consensus, we think what happened in december will play in january. We are talking about after five years having the best fiveyear pattern of jobs since the recession. This is north of 2 million for this year, possibly. Rate aside, what is really interesting is the average hour workweek is pure a session. We have taken the slack out of the system and we have got to start hiring. Does the street care about the jobs number . At 8 30, everybody is cheering, betting, is it really affecting what they are doing . It affects the idea of quantitative easing. If we get a good number and unemployment goes, on your morning show, someone said it will go under 6 . John herrmann. Type of fastthat forward, you will see quantitative easing the reduced more. That will impact wall street all the sudden in a dramatic way. Rise, a possible slowdown in construction. Aside from our wager, the most important thing at 8 30. Your number . 240,000. 232,000. 250,000. Price is right roles, you cannot go over. 32. Umber 32, you are number you have got president obama on your speed dial. You play a lot of golf together, you are an insider. Chris christie. What is going on . I know you are a democratic fundraiser. I like chris christie. His office is calling the Port Authority in new york and saying create a traffic jam because the mayor of fort lee i would rather not get into politics. Benefit to give him the of the doubt, i think the whole thing is a crazy. The truth will come out one way or the other. I was stuck in that traffic for 3. 5 hours. I was yelling and screaming. I think at the end of the day, oris tough to run a country a state. Some things fall through the cracks. I am glad he made an immediate decision and terminated those involved. Does it matter to 2016 . We dont know. If yesterday was the end, people will move forward. Every politician is going to have some things in the closet that will come out in an election. Those will move on and be news for a minute. Standpoint,litical was yesterday the right kind of apology . He couldes out clean, be even better off because he stood up and gave reporters all the time in the world and said i am sorry. I will take the blame. Some people said they wanted obama to do that when it came to obamacare. Say i am sad. Obama took it on the chin for health care, he came out and said it was disaster is how we started the aca. The good thing about the aca is we are now passed one Million People on the exchange, it is starting to do better. When you stand in front of the new york media for 1. 5 hours and you answer every question, you have to give that person a lot of credit. The question is, we will see if there is some sort of you are going to have the attorney general. You can ask him what he would do in that situation if he was in new jersey. He may have something to do with it because it was poor authority. Local investigations underway. A lot of politicians have you on their speed out you have a horse, are you willing to sign on . Too early. I am trying to make sure i can be helpful to the president while he is in this seat. I think some of those priorities that we will hear coming up in the state of the union about infrastructure, something i have been pounding been touting. It is the fastest job creator. We need a publicprivate partnership. Absolutely, there is an immense amount of money on the sideline. The answer is yes. More and partly, when you have this country rated a d on the structure, we would fail. It is not just bridges and tolls, nextgeneration gps, admissionransit c grid. Immigration reform. On the business side, whether the left or the right, those are bipartisan issues. Immigration, infrastructure, education. Income inequality. Issues for the next election. For today and the next election. Do you think qe could be blamed for income inequality . It got investors really rich. Flip a coin qe 1, 3. Qe 2, not for m qe housing is doing better because the economy is doing better. People want hard assets and are nervous about the dollar. The end ofn is at the day, will this create a bubble or not. When you have zero rights and you are being forced into the market because youre not going to put cash under the pillow, the question is are these multiples. Are we at the right setting for the market or the wrong setting . 14 for thetastic market, i dont think people we had a fantastic 2013, i dont think people are predicting that. Some breaking news. More on the target story, there was a data breach that affected millions of people. Target saying that up to 70 million individuals personal information may have been stolen in a data breach. The cost of the breach may materially hurt results. Of up to 70 figure million individuals. Target saying it plans to close eight u. S. Stores on may 3. We will follow this story and get the latest, back to you. Thank you so much. I waske speed symposium, there. The countdown to super bowl xlviii. Check this out. Years, get aive couple wins. We have got the coach and the players and the attitude. We have the same dream in the same goals. Coming out on newsstands today, the new bloomberg businessweek. Bitcoin dreams, everybody is talking about bitcoin. Is this thing real, what is at . Read about it in bloomberg businessweek. Wolf, ceo and founder of 32 advisors, former chairman and ceo of ubs americas, adviser to president obama. Joining us, a very special guest, a man who has been quite dizzy. New York Attorney general. Office reached an agreement with blackrock stemming from an svestigation into the firm access to nonpublic information. With the Mathew Martoma trial, everybody wants to know what is going on. What happened with blackrock . Andlackrock had the largest most survey and the history of financial markets. Tenant of thousands tens of thousands analysts providing them with information. They had the intention of getting information so they could from the market. They would go to an analyst before they issued their next report. They would ask a series of question that were clearly designed to find out what would be in the next report. They took all this data, a group called strategic equities, a quantitative unit within blackrock they acquired when they got barclays capital, would aggregate the data. They turned it into a frat smoothie. They factor that information to their decisions about buying and selling. We thought there were violations of securities law. The folks at blackrock, after providing us with hundreds of thousands of documents and allowing us to depose people, they said we are going to stop this whole thing, they did the right thing and they are cooperating with us as we continue our broader investigation into this whole area of early access to analysts senate. This is not about hard information. They do not care if analysts were right. We want to know because we are going to front run your report. That is the essence. Because it was so artfully woven together, they took all the data and processes so you cannot trace one individual, it was the aggregate of all these opinions, they did not disclose that they had access. Sat down with head of fixed income at blackrock, asked him about nonpublic information, how a firm like blackrock, who does get the first call from the street, how they use that information. People have a pretty good understanding of what is not in the public domain. There is not a gray. Listen, i was global head of fixed income before i was president of ubs, i know him well and i have respect for him ink andry f blackrock. You know what is nonpublic. Why do guys do it . Ofyou have an industry hundreds of thousands of people, there are always bad eggs. Firm likeook at a blackrock, to their credit, they saw something was wrong, he came in, they changed it, they are cooperating. Is really the role model when it comes to ceos in our industry. These guys are creative and thoughtful. I think at the end of the day, if they think there is something wrong, they will fix it. My question, attorney general, what exactly is it legal about this . Analysts are on the phone all day with clients explaining their views. Wouldid blackrock do that violate the law . Is this something that might be shady . It did violate the martin act. A very broad act. Holding the yellow pencil you have probably violated it several times this morning. I cannot say enough good things about the folks we dealt with their. Re. This was in good faith, resolved very quietly, cooperating with us. The problem was that analysts are prohibited from releasing data to a couple clients before they release a report to all clients. They were getting around that problem by doing a survey instead of having the analysts give them the report early, clearly illegal. Artful algorithms were then fed data in, it gives them a competitive advantage. It does not fit into the classic framework for what we consider Insider Trading. Federal securities laws have higher burden from the martin act. It is something we have been calling Insider Trading 2. 0. Running on analyst sentiment, last year when we stop Thomson Reuters from releasing data on Consumer Confidence survey, 5 seconds before they released it to the rest of their clients. They were allowed to move the markets. This is not hard information. Inse people just struck oil alberta or something, it is just for running what the analysts are saying. Was onlyt why the fine 350,000, as opposed to jpmorgan . Totally different situations. Cost ofhen pay for the our investigation, it was important to establish this practice should not be going on. They are cooperating, we are looking at analysts who may be to othernformation firms in advance of their reports. It is a broad investigation. Is an affair for blackrock to expect the first call . Fair for blackrock to expect the first call . There is no question it is the largest and the fastest to the firsty deserve call, they execute quickly, it is not a big bureaucracy. They can shake things up. That is not surprising. The question is, is the first call that they are getting in the public domain. That is where they are trying to thread the needle. There were firms that really icite concerned, an impl sense that people were afraid of losing blackrocks business if they did not cooperate. They had a system on breaking analysts based on the degree to which they cooperated and surveys. Note was something that was this is why there were no huge penalties, we cannot connect it specifically, they went through a quantitative branch. Blackrock taking a hit. Jpmorgan, you know this company, another week, another fine. 20 billion, they have become the vp of wall street the bp of wall street. I disagree. Will say jamie dimon and jpmorgan were the first thing to realize that putting everything behind you and enables you to tell the world you have it behind you. They are not, jamie dimon is saying yes, i will take the punch, fine me. We are living in Elizabeth Warren country. I do not object to living in Elizabeth Warren country. This is very calculated, they are very smart. My negotiations with them were excellent. They are very well run. There are other banks that have similar liabilities that are just hanging out in litigation. Paying billions of dollars to lawyers. At thehave been forefront of this whole intersection of litigation with tanks with respect to the mortgage prior mortgage industry and how rich nation took place how origination took place. There are now rumors that we will have 50 billion in 2014 on litigation. Other banks. Possible double what happened this year. Wouldt naming banks, we like to hear them, what would be some things you think are new to the marketplace that we are not aware of that would force these types of litigation . There big liability out is the cloud from the collapse of the mortgagebacked securities bu bble. I am cochairing a working group along with the Justice Department and other agencies, jpmorgan was the first bank. We have investigations Going Forward with many institutions. We are looking forward to using the template we establish with jpmorgan. Moving ahead to try and clear all this out. The misconduct that caused the Mortgage Backed securities crash behind us. Is that all the states settlement coming in, and the states also go after . We let the banks paid. Have investigations, most states, the statute of limitations have passed. We try to put together every possible entity. Fdic, credit union association, fhfa, justice, me. Youre going to see more deals. What is taking so long . 5 years, 6 years. The president created our task force in january 2012, we are moving along. Thank you very much, new York Attorney general eric schneiderman. Filling us in on the details of the latest investigations. Will be back with of the jobs report coming up. What is your number . You are watching the jobs day edition of in the loop. Life on Bloomberg Television and streaming on bloomberg. Com. I am Michael Mckee with Stephanie Ruhle and adam johnson. Moments away from the december jobs report, this is big. Taking a look at futures, up. Typically ahead of a big number, you see markets flat, today, optimists. S p futures up 8. 5 points, dow futures up 65, nasdaq futures up on must 1 3 of a percent. Of a percent, 3 there is a chance we could go below 7 . Imagine 6. 8 . Normally you dont do this Much Movement ahead of a jobs report. You must think it is going to be good. Sense iss to make robert wolf, former ceo of ubs america, chief economist at raymond james, scott brown. Looking for a gain of around 230,000. There is a lot of uncertainty because of seasonal adjustment on the Unemployment Rate. Holding at 7 , getting benchmark revisions. Some uncertainty as we head into these. You did not hear that i said 232,000. No. Alright. Like wall street, you have got to put your money on the table. Each one of us has a forecast. What am i going to do with that 80 . Stephanie is the bull. In more ways than one. Robert seems to think that a lucky number. He has been wearing that number since college. Adam 240,000. 238,000, over the past six months, adp and a jobs report has been within a couple thousand. Bloomberg Economics Team worldwide as its own survey, the numbers are in the median. Orecast at about 210,000 that actually turns out to be better than the wall street consensus, which is 197,000. Very quickly, scott. Unemployment the Labor Department could be releasing is going to release revisions to past numbers. Could we see a move that might have nothing to do with job creation . Certainly. The last few years, you have gone from a peak of 10 down to 7 . Looking forgiven up jobs, Labor Force Participation rate is down substantially. It overstates the improvement in the job market. We are seeing games, we still have a very long way to go to get back to a full recovery. Does wall street care about Unemployment Rate . I am not sure. As he mentioned, the Participation Rate is so low. As it goes lower and lower and unemployment number goes lower, you have less people working. Were not counting as many people anymore. We are down i like 62 . It used to be 66 . We need to get everyone back working and everyone looking for jobs. Is, do we question get a load 7 , that is the consensus. ,000 is the consensus for number of jobs created in december. Our questions will be answered by peter cook come outside the Labor Department. He has all the numbers and will be breaking them now. 74,000 jobs added in december, Unemployment Rate 6. 7 . A lot of the reason for that, people leaving the labor force. These numbers will come locate Janet Yellens job. 74,000 is the lowest number we have seen since october 2011. Well below our survey of 203,000. We saw some revisions, november up to 241,000. That was the best month since february. Something happened between november and december. 182,000for all of 2013, jobs. Household survey, 6. 7 unemployment. 0. 3 , 1 3 of that attributable to increase in employment numbers. Decrease in the civilian labor force of 347,000. 62. 8 Participation Rate, lowest in years. Retail up 55,000, temporary hiring up 40,000. Wholesale trade, up 15,000, manufacturing getting 9000. , construction down 60,000, government down 13,000, information down 12,000, hollywood, 14,000. Our average Hourly Earnings up, year over year 1. 9 . Hours down to 34. 4. Some seasonal adjustments to the household survey, they are modest. The most notable change, octobers rate was 7. 2 . Bottom line, a confusing number for the fed. Peter cook, wall street trying to figure it out. Futures up. You would think with the disappointment on nonfarm payrolls we would not be up. 5 , as in theut futures up. 25 , if we could show the 10 year, big movement. In at a chart of the 10 year an intraday chart of the 10 year, someone just pulled the plug. If we are not creating jobs, that eradicates the whole notion of taper, the fed might untaper, a big reaction on the 10 year. Michael mckee just became 80 richer. Congratulations. I will go home and feel really guilty. Trying to figure out what went wrong. Manufacturing jobs lower than expected, construction, the weather was bad, construction is a monthly blip. What stands out to me is that there were zero jobs created in health care. In november, 26,000 in october, 14,000 in september. 57 thousand in august. Health care and education has been the two biggest job creators throughout the entire downturn. What it looks like is maybe just maybe there was an obamacare affect. Health care providers not knowing what the situation was, held off on adding people. That is something you wo