After five months of fighting. Apple is going to toughen up security after the hack of celebrity photos earlier this week. Iphone and ipad users will get email alerts if anybody tries to change the password or login from a new device. That ruling in the gulf of mexico oil change may wipe out years of rockets at bp. A federal of profits at bp. A federal judge ruled that bp was grossly negligent when it comes to the oil disaster. They may face another 18 billion in fines and penalties. After the all important jobs report. Wall street anticipating that a strong report. How strong does it need to be to keep the bond market the bond rally going . Fed will note the change its policy anytime soon, even after weve seen betterthanforecast economic numbers of late. Economics editor mike mckee has our preview of jobs. Its amazing that, after numbers weve seen, we are still sitting here with a 2. 45 10year rate. That cannot last. Start with car sales. The highest since june, 2005. You need to build more cars. Thats good for manufacturing employment. Actories are humming the isn manufacturing new orders index hitting a 10year high. The index reaches a nineyear peak. The nations trade deficit is smaller than expected in july and june and may. That should push secondquarter growth well over 4 and keep this quarter over 3 . It appears we did get that fairly strong snapback from the winner contraction. The winter contraction. Adp is over 2000. Over 200,000. We are looking for 230,000 jobs today. The whisper number is higher than that. What does it mean for the fed . If we get that, will that push Interest Rates higher . Probably not. Not on those headlines. You have to look beyond the headlines to another number that janet has put front and center. Are you getting a raise . Thats what it comes down to. The fed still thinks there is a lot of slack in the labor market. Look how long it has been since average Hourly Earnings went up. We are not expecting a lot of evidence on that front today. Ust 1 10 or 2 10 of a percent of 1 . What if we get a surprise . Market rates will not jump a lot, but the Merrill Lynch move index get some wage growth. That will heighten the drama around Janet YellensNews Conference two weeks from now. People will be pushing her, what does this mean, when do you think about raising rates . We heard these questions for so long. Thank you so much, mike mckee, our economics editor. We are taking an even deeper look into americas hiring picture with the people who make those decisions at the very top. We are joined by three Business Leaders from three very different industries. ,etail, energy, and banking each with their own unique perspective on the state of u. S. Employment. Thomas stemberg sits on the lululemon,rmax, petsmart, and others. Ofo joining us is the ceo the ceo, edison of com edison. It is great to have all of you here this morning on this huge day. Let me kick the conversation off. A very simple question. John, i will start with you. Are you hiring and why or why not . We are. We continue to hire both in florida and new york. The bank is growing at 1 billion every 90 days. We are fortunate to be sitting right in the middle of two of the biggest growth in jens on the east coast of the United States growth engines on the east coast of the United States. We hired about 200 new people last year. Will you do about the same this year . We will probably do about the same. Im incredibly proud of the 15,000 men and women of con edison who have a tremendous commitment to our customers and operate our complex energy systems. We are hiring. We hired 900 new employees last year and 3500 over the last five years. They are High School Graduates with the right aptitudes who we develop into professional Customer Service professionals and crafts. We hire those with associate degrees who come in as technicians and designers. We hire College Graduates with various levels of experience, including our Leadership Development program. It is a rosy picture. What about the companies that what about the boards that you sit on question mark are those Companies Hiring . Companies withhe boards that you sit on, are they hiring . You have to provide health care if you hire them for more than 30 hours a week. You are seeing a lot of new jobs at 28 hours or 25 hours a week. They are not the same quality of jobs you would want to have in a bully and economy in a need ebullient in an economy. You said that obamacare would be a big negative in hiring. And in banking. Every time they make a loan to a fastgrowing business, they have to create more reserves. The lending flow is not what it otherwise would be. What about Bank Regulation . Has that had a negative impact. Negative impact . It hasnt. Many of the jobs weve been adding over the last two years have been to answer the call for Better Regulation and better compliance with comprehensive regulation that weve never seen before. So, you are hiring people in risk . We are hiring people as risk managers. As the company grows, that segment of the company will continue to grow. How about you . Regulation is a big factor in your industry. We are a highly regulated industry. Our employment is more to customer usage. Electric usage has grown modestly, 1. 4 over the next five years is forecast. Natural gas is a real growth area. 2. 8 per year for the next five years, driven by the environmental advantages and price differential between alternatives. Those are the driving factors, as compared to regulation, for us. Talking about this. You might be hiring, but are you really paying more than you were before, or are you paying less . , we are seeing some wage pressure on the upside, particularly in the risk areas that we talked about earlier. They are in high demand now. To be frank, i expect that will continue at least another year. Going back to competitive salaries and benefits, our competition is in the stem field. We are competing against others, including google and other hightech companies for the talent we need to operate our company. Most of our retailers are in high Service Segments of the business and therefore pay well above the prevailing minimum wages. As the various local governments attempt to raise the minimum wage, there is further upward pressure. Over time, you will see less entrylevel jobs. Whatever they are talking about in seattle is not going to give a young chance at give a young kid a chance the way it used to. What do you mean less entrylevel jobs . What does that mean . If you have to pay 15 an hour for somebody because that is the new minimum wage in some jurisdictions, we would normally hire a 16yearold kid and give them a chance to learn the business and make an investment in them. At nine dollars an hour, we might have made that investment. At 15 per hour, many retailers cannot afford to make that investment. Talk about that. What do you make of his argument . We cannot hear him. Tell us what he said. We should fix that. We were talking about the minimum wage debate. He said if companies have to pay more youve seen the minimum wage protests across the country. If they have to pay more, they will not be making the same investment in entrylevel jobs as they were before. Where do you stand on the minimum wage debate . Thats a very difficult argument. We have that discussion all the time. There is such an enormous divide in the United States and the world now between the top 1 and everyone else. It is, it is, of course, going to have an impact on unemployment at some level. It is difficult to make the argument against a higher minimum wage in most cases. It is. As you heard with some of the leaders of this protest, they and it people like you dont want to put you in the hot seat on this, but they say, look, you are making millions of dollars. The very bottom of the workforce are making just nine dollars an hour, 10 an hour. You should be spreading the wealth a little bit more. Its an argument that is getting louder and louder in this country. Do you feel you are in the hot seat when you look at pay . I dont think the ceo comparison is particularly relevant, but the argument that lower income employees have about the cost of living today and their need to survive and take care of their families and grow in this expensive world that we live in certainly is loud and clear. Company now is going to have to hire a whole bunch of analysts to figure out the pay ratio between the ceo and the average employee. This is a doddfrank regulation that is probably going to kick in this year. Having people figure out that ratio is not going to add much to the productivity of the country. It will make some unions happy, but wont do much for productivity. . How about you, john mcavoy have you noticed any kind of disruptions within your own company . Are people saying that they feel like they are unfairly paid or that you are seeing some more activity on the lower scale of the workers at your companies . Certainly, the salary gap is an important debate going on in this country. In our company, we focus on highly skilled workers. Some come with the skills, others with the right aptitudes and we develop the skills. We dont really rub up against the minimum wage argument as much as some other companies. But what about the unions . Are you worried about the unions . Weve last two contracts, had good, collaborative relationships with the union. We are in a good spot, keeping bills down for our customers, but being fair to our employees. I know this is a hot issue for you, tom. I want to play a piece of a conversation we had earlier this week with one of the leaders of these labor protest. This is what he said asked these labor protests. These labor protests. This is what he said. These workers understand that the franchisees dont have enough to pay them 15 billion 15 per hour. But the industry is paying one of the lowest wages in the country. There is plenty of money and power to go around. Thats what these workers are fighting for. Why is he wrong here . Im not sure he is right there is that much money to go around. I know a lot of people own franchises. Some are doing pretty well, some are not. If you add up the costs of obamacare, which is a new cost to many of them, you add up a new minimum wage, you are just not going to have as many jobs, not have as many stores open, and that is going to hurt employment over the long term, in my judgment. Front, whatsing going to be the biggest negative impact for you on hiring . Remember, that technology remember that technology has dramatically changed the Banking Industry and our need for personnel. To run a bank our size 15 years ago would have taken 5000 employees to do the same thing. We are seeing a dramatic difference in the needs and talents that people come to us with. Our Biggest Issue is the quality of staff that we are able to attract and being able to find people with the proper training coming in the door. And looking ahead, whats going to be the biggest factor for you in hiring even more . Our growth. , we continue to grow in markets. If the underlying economies where we live continue to stay healthy and grow the way they are, we will be gaining more. How about you . One of the most important factors for us is the availability of stemcapable workforce. Highly skilled workforce. Very much so. An energyed with tech school that is a collaboration between us and new york city. We have developed the sixyear program, High School Diploma and associates degree, with a focus on energy curriculum. We think that is a good way to make sure we have a steady stream of highly talented employees in the future. Ive heard a lot about Stem Research and graduating kids who have a good background in that. Isnt part of the problem also getting kids engaged in it . Very much so. Thats why we reach out to high schools and universities to tell them about what we do. Our business is really interesting. Its an exciting place to be. There are tremendous challenges and you get responsibility very early in your career. We have to make sure the youth of today and the workforce of tomorrow are aware of that. Tom, you get the final word. Whats going to have to happen in the next 12 months for you to companies look, at more comfortable with hiring question mark we are very fortunate with hiring . We are fortunate that we invest in companies that are growing rapidly and are therefore hiring. I think you want to get a broad scale, aggressive employment growth. Right now, our employment picture is back at the same level of employment we were before the recession. The workforce has grown. While we are making gradual progress, we are not nearly where we want to be. Frankly, getting out of this overregulated, trying to get in everybody past business attitude from washington has to change if you want to have in everybody past business everybodys business attitude from washington has to change if you want to have growth. Thank you so much for joining us. Employmentthe august report is out in just a few moments. We are going to talk about jobs with yet another ceo, who heads the largest pizza delivery chain. Dominos. S, the economist known as sounds off on the moves by the ecb. We have an exclusive interview with nouriel roubini. In and are, moving and shaking as we await the labor report, ecb president mario draghi says the central bank will start securities. We spoke to Bloomberg Ruby me bini spoke to bloomberg in an exclusive interview. It is aesnt matter if public asset like solvent bonds. What they are deciding to do is increase significantly the Balance Sheet so the target is closer to three dollars trillion to 3 trillion. That will have a significant pop Significant Impact over time with other policy. Much more on the ecbs moves and analysis with mohammed l. A. Irene mohamed elerian. The jobs report out at 8 30 a. M. Eastern time. Stick with us for indepth analysis you dont want to miss. Dont go away. You are watching in the loop live on Bloomberg Television. Good morning. Im betty liu. Heres a look at our Bloomberg Top headlines. The biggest shareholders of michael kors are cashing out. They will hold a secondary offering to let investors sell holdings. The designer wont receive any proceeds from the sale. The u. S. Post office is cutting prices. The post office will lower prices by as much as 58 percent on certain Priority Mail packages for customers who ship at least 50,000 packages a year, according to wall street journal. Is and fedex say that usps taking advantage of its monopoly to take unfair advantage. The entertainment world is mourning the passing of a comedic legend. Funeral services will be held for joan rivers on sunday. The comedian and Television Personality died yesterday at the age of 81. Rivers got her start as a guest on the tonight show with Johnny Carson and later went on to host her own late night show. She also starred in a reality series with her daughter and most recently host the show fashion police. She was in many different industries. Rivers is survived by her daughter and her grandson. We are justkets, as a few moments away from the jobs report. With s parkets futures, the tao, and the nasdaq and the nasdaqw, lower. Will we get an ugly report for the markets in 30 minutes . We will get the Market Reaction right after the report. I want to bring in one guest who who has looked very closely at the labor market. He is the global head of research at Td Securities usa and also a former economist at the new york fed. You have your own forecast for this month. Jobs would have been created in august he read you are a little bit above consensus. August. You are a little bit above consensus. Why . One of the things i love to do is to remind people that the margin of error around this number is about 100,000. What we like to do is look at trends. Today,re over 200,000 seven consecutive months over 200,000 for the first time in about 20 years. When i look at the number today, a lot of things are according to what i expected. If you look at the isam components the ism components, the last time they were at this level was in two thousand six. Claims are low. The confidence number is very high. Recognizing the volatility around this number, i still like to think in terms of higher as opposed to lower. To really surprise anybody, it sounds like you are saying it has to be above 330,000 to change anybody cost anybodys game. That would be a very, very big number. If we get anything between 200000 and 275,000, i dont think it change it moves the needle much. There is a 50 chance in june of next year for the last six or seven weeks or so. For the needle to move in, you will have to see something with 300,000. Is it possible . Absolutely. At where thek stock markets are right now, where valuations are, we should be creating 300,000 or more jobs, shouldnt we . When i look at the stock market, i just offer the view that i think it has come too far, too fast. It feels frothy to me. When i look at how it is priced, it is already priced for strong growth. What worries me is that it is not priced for higher Interest Rates and a stronger dollar. What we saw on the back of the ecb is pointing towards not only higher Interest Rates in the u. S. , but also a stronger dollar. I think the headwinds you are seeing in the stock market today are very much a result of that number as opposed to anything in terms of the number today. If we were to price that in, where should we be on the s p . Honestly, i like about 10 higher. But i also recognize that the perception of fair value changes over time. All ofe last 20 years, the ratios have been moving higher. I prefer to see a slight correction. Am a hang on. Hang on. We have complete coverage for you. Mike mckee standing by, scarlet fu with the reaction, i peter cook. Well below our survey of 230,000. The Unemployment Rate dropping slightly to 6. 1 . Revisions make this number even worse than it appears. It snapp